Vietnam's total amount of corporate bonds issued in the first quarter of 2023 was VND24.7 trillion (US$1.05 billion), according to the Ministry of Finance (MoF).

The MoF added that 96% of the amount worth VND23.8 trillion ($1.01 billion) was issued after the release of Government Decree No.08, which sets the new corporate bond rule.

The Government allows bond issuers to extend the maturity of their bonds by up to two years, which was previously prohibited, as an important change in the newly issued decree.

However, if bondholders disagree with this extension, issuers must negotiate with them. This is seen as a measure to protect investors' returns. If negotiations do not result in a favorable outcome, issuers are obligated to meet their obligations to bondholders in accordance with the originally announced issuance plan.

In the first quarter of 2023, 69 companies failed to make timely principal and yield payments on their corporate bonds, totaling about VND19.2 trillion ($819 million). Of these, 23 issuers, accounting for 50 percent of late payments, plan to negotiate with investors and report to the Hanoi Stock Exchange, the agency responsible for managing the bond and derivatives markets.

Regarding Government bonds, the MoF announced that the total amount of funds raised in the first quarter was VND105 trillion ($4.47 billion), which is 26.2% of the annual plan of VND400 trillion ($17 billion) and 97.1% of the quarterly plan (VND108 trillion or $4.6 billion).

Due to market conditions, yields on government bonds began to decline from March 10, 2023, and the demand to buy government bonds increased again, the ministry said.

This can be seen from the fact that the average bid/offer volume ratio in March was 3.39 times, higher than the ratio of 2.99 times in February, it added.

The Vietnam Bond Market Association (VBMA) reports a significant increase in the corporate bond market in 2020-2021, with issuances reaching nearly VND462 trillion ($19.53 billion) in 2020 and VND658 trillion ($27.8 billion) the following year. This growth was driven by high capital demand from real estate companies and banks on the supply side and investors' desire to earn higher interest rates than those offered by savings accounts on the demand side.

However, last year, the bond market abruptly stopped due to the arrest of major real estate developers for improper issuance and use of capital. Consequently, bond issuances in 2022 were limited to VND255 billion ($10.7 billion).

Moreover, companies are currently facing liquidity issues, increasing pressure on bond maturities, and they cannot restructure their debt by issuing new bonds. According to VNDirect Securities Company, the maturity value of corporate bonds this year will be almost VND273 trillion ($11.54 billion), with most bonds maturing in the second and third quarters. Consequently, many companies, particularly in the real estate sector, have reported defaulting on principal and interest payments. As a result, some individual investors are willing to sell their bonds at a discount of 14-17% to obtain cash.

Fine art ceramic exports plunge in Q1

Vietnamese exports of fine art ceramics during the first quarter of the year dropped sharply by 48.6% to US$39,799 million against the same period from last year, according to statistics released by the General Department of Vietnam Customs.      

March alone witnessed the country’s fine art ceramic exports plummet by 55.8% to US$13 million on-year.

Ceramic pots remain the most export item in February, duly accounting for 71.2% of the country's total export turnover of fine art ceramics, reaching US$9.12 million, a decline of 8.4% from the previous month and 19.4% compared to the same period from last year.

Throughout the first two months of the year, the export of ceramic pots plunged by 47% to US$19.08 million against last year’s corresponding period.

With regard to export markets, Vietnamese exports of fine art ceramics to the EU market in February reached US$4.05 million, a drop of 5.7% on-year, while the export of fine art ceramics to the demanding market during the two-month period reached US$8.81 million, a fall of 44.1% on-year.

Meanwhile, fine art ceramic exports to the United States in February dropped by 15.6% to US$5.39 million on-year, with two-month exports of the product to the market decreasing by 42.3% to US$11.17 million on-year

This sharp decline can be attributed to global uncertainties, leading to a shortage of export orders over recent months.

Furthermore, local businesses encountered difficulties in terms of meeting the stringent regulations of origin traceability for handicraft products set by foreign importers.

According to details given by experts, businesses are required to actively diversify their export markets and fully tap into the domestic market moving forward.

Multiple potential sectors for investors to inject capital

The stock market is in a favourable situation with many supporting factors such as the State Bank lowering interest rates, positive short-term sentiment and the return of cashflow.

Experts recommend investors monitor and disburse into the industries of consumption, retail, banking, aviation, telecommunications - information technology, oil and gas.

In less than a month, the State Bank has reduced some policy interest rates twice. At the same time, the State Bank is also actively developing and implementing specific policies to guide credit institutions to disburse a package of VNĐ120 trillion for social housing.

Thanks to those policies of the State Bank, interest-sensitive industries grow quite strongly, leading the VN-Index's recovery in March such as financial services (+17.2 per cent), real estate (+10.6 per cent), construction materials (+4.5 per cent) and banking (+4.4 per cent). In addition, the transportation industry also increased by 4.5 per cent thanks to the recovery of the tourism industry and China's reopening policy.

However, the positive movement of interest rates has not been able to create a strong enough push for the market to prolong the uptrend. Securities experts said that the VN-Index could not return to the uptrend in the context of gloomy first quarter economic situation. GDP in the first quarter of this year increased by only 3.32 per cent over the same period last year, only higher than the growth rate of the first quarter of 2020 in the period 2011-2023.

VNDIRECT expects the VN-Index to maintain a gradual uptrend in April with a fluctuation range of 1,030-1,110 points. This company said long-term investors might consider buying part of their portfolio as soon as interest rates drop, while short-term investors should wait patiently until the market forms a clear trend.

The aviation industry is expected to turn positive thanks to the number of international visitors from China returning to Việt Nam. Some other industries could shift to positive profit growth in 2023 from the low base in 2022, including agriculture (+18.9 per cent), electricity (+18.7 per cent), construction materials ( +16.7 per cent).

KB Vietnam Securities Co (KBSV) gave a positive forecast for some high-tech industry groups. Specifically, the software export segment will have positive prospect in the medium and long term thanks to digital transformation and the continuous appearance of new platforms and applications; Việt Nam's labour costs are relatively low compared to other software exporting countries.

The telecommunications segment grew steadily thanks to an increase in broadband internet subscribers by 8-10 per cent. The development of mobile broadband internet including 4G-5G is a breakthrough step for telecommunications businesses. Chip production is also expected to see double-digit growth in 2023 with some stocks having strong software export and digital transformation activities.

HCMC businesses to need over 67,000 workers in Q2

Businesses in HCMC are expected to employ from 67,000 to 73,000 workers from April to June.

The city’s four key industries would require 14,000-15,000 new employees or 21% of the labor demand. They comprise mechanical engineering and automation, electronics and IT, chemical products, and food processing.

Some 38,000 to 42,000 workers will be needed in nine service sectors, making up 58% of the labor demand.

The information was announced by Nguyen Van Lam, deputy director of the HCMC Department of Labor, Invalids and Social Affairs, at a press conference on the municipal socioeconomic conditions held yesterday, April 6.

Lam said nearly 72% of companies in the municipality would maintain their manpower, 21% would recruit new employees and 7.3% lay off staff due to a drop in new orders and non-renewal of labor contracts.

The department plans to hold 47 job bazaars this quarter, including three online job bazaars to recruit workers from the southeast and southwest provinces and work with the HCMC Department of Tourism to boost employment in the tourism industry.

Data from the department showed that over 1,200 local firms reduced staff, resulting in over 19,500 jobless people during the year’s first quarter, while around 700 companies boosted recruitment, employing over 5,200 workers.

Digital economy revenue up 30% in March

In the first three months of 2023, Vietnam's digital economy grew by 13.6%, about four percentage points more than in the last quarter of 2022.
 Total revenue from digital economy activities in March 2023 was estimated at VND325.5 trillion (US$13.9 billion), up 30% month-on-month, according to the Ministry of Information and Communications.

In its latest quarterly report, the ministry said the figure fell by 10% annually. In March 2022, the total revenue of the digital economy sector was VND360.7 trillion (US$15.4 billion).

Digital economy enterprises paid VND8.87 trillion (US$378.4 million) in taxes, up 10% inter-monthly and 3% year-on-year.

Total revenue in the first three months of the year was estimated at VND845.6 trillion (US$36 billion), down 3% year-on-year and 20% of the full-year projection.

In January-March, the total contribution of ICT companies to the State budget was estimated at VND24.4 trillion (more than US$1 billion), up 9% on-year and accounting for a quarter of the full-year plan.

Exports of hardware and electronics were estimated to drop 9.5% year on year to about US$26.6 billion due to the global economic recession and the downward trend in overall production, the ministry said.

The figures contributed to a 13.6% growth rate of the digital economy in the first quarter, up 3.99 percentage points from the last quarter of 2022. The digital economy accounted for 14.6% of Vietnam's gross domestic product (GDP).

As of March 17, 2023, nearly 750,000 small and medium-sized enterprises (SMEs) had access to the digital transformation program, up 2.3% month-on-month. Of these, approximately 107,220 companies have adopted the solutions offered by the program, an increase of 16% from the previous month.

Social network Zalo, media site Zing Mp3, news update platform Baomoi, e-wallets Momo, and My Viettel are among the seven programs with over 10 million regular active users each.

A project to develop digital economy activities for the Central Highlands region will be drafted by the Ministry of Information and Communications in the second quarter of the year and submitted to the Prime Minister for review and approval.

The ministry will also develop a set of criteria for qualified digital platforms to support enterprises in their digital transformation, organize training courses for local enterprises, and provide consulting services for those seeking digital transformation.

Obtaining work permits remains time-consuming

Although HCMC has streamlined the procedure for issuing work permits for foreigners since last month, many businesses have still complained about the tedious work permit issuance process.

The time-consuming work permit issuance process was one of the main issues discussed at a dialogue between businesses and HCMC leaders held on April 6.

A EuroCharm member business said it had spent two months waiting for a work permit application to be processed.

Sharing the same view, many other businesses suggested the HCMC labour department shorten the time and said it took them seven to 10 days to obtain a receipt after they made an online submission.

As businesses can now apply online, the number of requests has soared, which needs time to handle.

According to businesses, the requirements for foreign experts to have a college degree or equivalent and at least three years of experience in their area of expertise for their jobs in Vietnam are impractical as many people are working in the fields different from what they studied at college.

A work permit has a term of two years and can be extended once with a maximum of two years, making life hard for those who want to work in Vietnam beyond that duration. When they are in this situation, they will have to re-apply for a new work permit.

Agro sector export figures taking a hit

The plunge in prices of some key products has pulled down the import-export turnover of the agro-forestry-fishery sector in the first quarter of this year.

In statistics published by the General Department of Vietnam Customs, the Q1 import-export turnover of the sector reached $20.63 billion, down 11.2 per cent on-year. Notably, the export value hit $11.19 billion and import value was $9.44 billion, signifying an on-year decrease of 14.4 and 7.2 per cent, respectively.

The group of agricultural exports reported a slight increase of 3.8 per cent to $5.73 billion. Meanwhile, the forestry sector earned $3.11 billion and the aquaculture sector was $1.79 billion, showing drops of 28.3 and 29 per cent on-year. The export turnover of raw materials dropped by 26.8 per cent on-year to $458 million.

The performance of aquaculture is the bleakest. Statistics published by the Vietnam Association of Seafood Exporters and Producers (VASEP) show that shrimp, one of the key exported aquaculture products, suffered a plunge of 39.4 per cent to $578 million in the first quarter. Tra fish saw a downturn of 33.1 per cent on-year to $422 million, while the export value of tuna was $109 million only, down 30 per cent on-year.

All five leading aquaculture markets of Vietnam reported declines in export value: Japan with $187 million (down 11 per cent), the US $155 million (down 55 per cent), China $151 million (down 11 per cent), South Korea $104 million (down 14 per cent), and Thailand $44 million (down 15 per cent).

Truong Dinh Hoe, general secretary of VASEP, said that global inflation damaged import demand of many countries, while the cost of raw materials and production saw a soaring increase. For example, the cost of input materials climbed to a record level with uncertain forecasts, pushing the price of feed and aquaculture products up.

He also mentioned the barriers in exporting shrimp to South Korea – the largest shrimp import market of Vietnam, which accounts for half of this country’s import demand of 100,000 tonnes per year.

The Vietnam-Korea Free Trade Agreement was implemented in 2015, which was expected to create top conditions for the import tariff for shrimp from Vietnam. However, this product is limited to import in South Korea due to quota limits.

To improve the capacity for shrimp, in mid-March, VASEP sent a document to the Ministry of Finance and Ministry of Agriculture and Rural Development to propose adjusting the import tax for dried soybean, the key ingredient for aquaculture feed, from 2 per cent to zero. VASEP also wants the Ministry of Foreign Affairs to look at the possibility of asking South Korea to remove quotas for shrimp imported from Vietnam.

Despite the first-quarter blips, Deputy Minister of Agriculture and Rural Development Phung Duc Tien is still optimistic about exporting related products for the year as a whole.

Vietnamese rice performance bodes well for export growth

Vietnam’s rice exports set a 10-year record in 2022, hitting 7.1 million tonnes, yet more needs to be done to ensure optimal performance, according to the Ministry of Industry and Trade.

In its latest report to the government, the ministry noted that in 2022 Vietnam counted $3.45 billion in total export value from rice exports, a 5.1 per cent jump on-year. The export price averaged $486 per tonne.

From August 2022 until the year-end, exports of rice containing 5 per cent broken rice reached the highest worldwide, surpassing Thailand’s prices by $15-27 per tonne, and India by $40-50.

The price hike of Vietnam’s rice export lingered in the first two months of this year, averaging $520 per tonne. This explains why the country’s rice export value surged 7 per cent despite a more than 20 per cent decline in volume in January.

Despite headwinds in the global food market, Vietnamese rice has set a firm foothold in markets with stringent quality requirements, such as Japan and the EU.

Fragrant types like ST24 and ST25 have seen their export price surpassing $1,000 per tonne, more than double that of common rice.

Rice production has broadly been streamlined in the direction of lowering output and raising quality, focusing on top-grade varieties that meet the world’s demand, with green production, emissions reduction and increased use of organic fertiliser. This approach has resulted in higher export prices for Vietnamese rice.

Another highlight from last year, was local rice exporters effectively tapping the EU market, with a zero-tariff 80,000-tonne rice export quota granted to Vietnam in light of the EU-Vietnam Free Trade Agreement. In fact, Vietnamese firms exported 94,510 tonnes of rice to the EU market, showcasing how Vietnamese rice has been constantly improving in quality.

Last year, Loc Troi Group, a rice exporter based in the Mekong Delta province of An Giang, managed over 200 per cent growth in rice exports to the EU. In late 2022, Loc Troi received an export order for 400,000 tonnes of rice from the bloc.

The Ministry of Industry and Trade (MoIT) forecasts that rice exports will continue to be favourable this year, with the export volume rising from 6.5-7 million tonnes, as traditional markets such as Indonesia, Bangladesh, and China pick up. In the year to date, rice export orders from China and the Philippines have increased sharply.

In the first two months of this year, China imported 152,640 tonnes of rice from Vietnam, worth $90 million, an 86 per cent jump in volume and 120 per cent hike in value on-year.

The average export price to China sits at $590 per tonne, up 18.3 per cent on-year. Chinese customers have mainly imported high-grade rice varieties from Vietnam, which fetch higher prices.

Pham Thai Binh, CEO of Trung An Hi-tech Agriculture, said that the company has inked an order to export 2,000 tonnes of rice to China, and is now engaged in negotiations for a further 20,000 tonnes.

The Philippines is forecast to import a further 2.8 million tonnes of the 2022-2023 crop, providing great opportunities for Vietnam. While India, the world’s top rice exporter, saw its rice area shed 380,000ha due to drought, rendering further opportunities to rice exporters in Vietnam.

However, there are several challenges facing rice exports this year. Local rice traders are still poor in executing market diversification strategies, with exporters chiefly relying on several markets and the amount of high-grade rice types remains modest.

Phan Van Chinh, director general of the MoIT’s Agency of Foreign Trade, said that although China’s recent reopening was positive for local rice exporters, many difficulties persisted, such as high shipping charges and production costs.

FPT targets VND52,000-billion revenue in 2023

Local technology solutions company FPT Corporation plans to generate total revenue of VND52,289 billion this year, rising by 18.8% year-on-year.

The Hanoi-based business looks to earn VND9,055 billion in profit, an 18.2% increase over 2022.

The technology segment is expected to spearhead the firm’s growth with earnings of VND31,150 billion, including some VND4,160 billion in pre-tax profit.

The company said in a statement that between US$35 million and US$50 million would be allocated for mergers and acquisitions transactions and the expansion of its global operations.

Despite widespread global contraction, the firm eyes US$1 billion in revenue from information technology services overseas.

The tech giant will focus on product development with an eye on enhancing core technologies, namely Cloud servers, Artificial Intelligence and Blockchain infrastructure.

According to CEO Nguyen Van Khoa, the company intends to foster technology application in internal operations and improve workforce quality.

The effort aims to strengthen labor productivity and promote sustainable development.

In 2022, FPT posted revenue and pre-tax profit of VND44,010 billion and VND7,662 billion, respectively.

During the period, the company’s top segments thrived, including the growth of 30.1% for IT and 33% for digital transformation solutions.

Transport strategy to drive fortunes

A synchronised transport infrastructure system will be completed in Khanh Hoa province to drive forward its socioeconomic development.

Khanh Hoa People’s Committee is directing departments, sectors, and localities to implement construction of transport projects across road, railway, air, and sea. The entire transport infrastructure system is implemented under the national planning, which contributes to ensuring synchronised and modern connections.

The province will boast three expressway routes in the future – the 138-km North-South Expressway’s eastern section, the 117-km Khanh Hoa-Buon Me Thuot route, and the 85-km Nha Trang-Lien Khuong road.

According to the plan, the construction of the North-South Expressway’s eastern section is expected to be complete before 2030, while the Nha Trang-Lien Khuong route is expected to be implemented after 2030.

Notably, the Nha Trang-Cam Lam section and Cam Lam-Vinh Hao section, two components of the North-South Expressway, are expected to be completed this year. The third component, Van Phong-Nha Trang, is undergoing land clearance.

Khanh Hoa is also oriented to expand Cam Ranh International Airport. In June 2022, the Civil Aviation Authority of Vietnam asked for approval to upgrade the airport this decade at a cost of just over $1 billion.

Under the revised planning scheme, the airport will serve 25 million passengers and handle 55,000 tonnes of goods annually before 2030. The figures will increase to 36 million passengers and 100,000 tonnes of goods by 2050.

Along with this, local authorities asked the Ministry of Transport to add Van Phong Airport into the south-central province’s draft planning for the 2021-2030 period to promote the development of its economic zone, while simultaneously studying feasibility for an airport for seaplanes for tourism growth in Van Phong, Nha Trang, and Cam Ranh.

Khanh Hoa’s current seaport system combines five large-scale seaport ports – North and South Van Phong, Nha Trang, Cam Ranh, and the port at Truong Sa Island. North Van Phong port has the potential to be upgraded to an international transshipment port which combines a container wharf, a general wharf, and an international passenger port handling large container ships with a capacity of 24,000TEU.

South Van Phong Port, meanwhile, directly serves Van Phong Economic Zone and handles general ships with a capacity of 100,000 tonnes, bulk vessels with a capacity of 300,000 tonnes, and liquefied natural gas vessels with a capacity of 150,000 tonnes. The third specialised port is Cam Ranh, which is responsible for ensuring security and defence.

Nha Trang Port is gradually being converted into a synchronous and modern marine tourism hub meeting international standards, able to receive international passenger ships from 100,000GT and over as well as other passenger ships on inland North-South routes.

Retail energy pricing in planning

The proposal to adjust the average retail price of energy must comply with the new bracket and be thoroughly investigated before being presented to local authorities for review, according to the Ministry of Industry and Trade.
 
The Ministry of Industry and Trade (MoIT) was tasked with completing the plan to modify the average retail price of electricity and submitting it to the government in accordance with the March resolution by the government at the monthly meeting.

This modification will serve as the foundation for an increase in the retail price of electricity used for daily life and production. Electricity of Vietnam (EVN) recorded a record loss of nearly $1.55 billion from electricity generation in 2022; if other financial income is excluded, the loss falls to $1.12 billion.

Previously, at the end of March, the MoIT announced that the cost of electricity production and business increased by 9.27 per cent compared to 2021. Since March 2019, when the average retail price of electricity remained at 8 US cents per kWh, EVN has lost approximately 0.7 US cents per kWh of electricity sold.

If the average retail price of electricity remains unchanged this year, EVN's calculations indicate that the parent company will be in the red by more than $188 million by June and nearly $1.19 billion by December.

EVN reported to the MoIT that as a result, ways of generating prices spiked while selling, and output prices were sluggish to adapt. Consequently, EVN will struggle to balance monetary flow to power generating units, mobilise capital, and balance capital. This will impact the availability of electricity and the investment, repair, and maintenance of electrical infrastructure.

The prime minister directed the MoIT to preside over and coordinate with EVN to consider and alter the average power selling price in compliance with the law, or to order EVN to consider and adapt the average power selling price in line with the law.

Hanoi's housing prices rise 10-15 per cent over three years

Despite a stagnant real estate market, housing prices – particularly those for luxury apartments in Hanoi – have continued to rise.

According to a report by the Vietnam Association of Realtors (VARS), in 2022, approximately 15,900 apartments were made available for sale with an absorption rate of 47.4 per cent, which equates to approximately 7,500 transactions. The average primary selling price was approximately $2,132 per square metre, an increase of 10 to 15 per cent compared to 2021.

In 2021, the total number of flats on the market stood at around 16,800, and the number of transactions totalled almost 7,500. Despite being in the midst of the pandemic, the sale prices still increased by 5 per cent compared to 2020.

According to the VARS, the rising cost of mid- and high-end housing is the result of consumer demand, which is expected to persist. The VARS survey also revealed that 92 per cent of respondents still intend to purchase real estate, with the majority planning to do so within the next six months.

In the view of Hoang Nguyet Minh, senior director of Commercial Leasing at Savills Hanoi, house prices in all areas of Hanoi will remain stable until the end of the first quarter. Prices on the primary market will be essentially stable, but may fluctuate marginally by year's end. On the secondary market, property prices will be affected by monetary policy.

For the year-to-date, Batdongsan.com.vn data indicates that the Hanoi apartment real estate market has displayed evidence of price appreciation. As of February, the flat market in Hanoi has recorded an excellent rate of price growth, with the average price of affordable apartments rising by 16 per cent, mid-range options climbing by 17 per cent, and the luxury sector increasing by 9 per cent.

PM: Start work on five key traffic infrastructure projects by end-June

Prime Minister Pham Minh Chinh has told the Ministry of Transport to start work on three expressways in southern Vietnam, a beltway in HCMC and another beltway in Hanoi before June 30.

The three expressways are Chau Doc-Can Tho-Soc Trang, Bien Hoa-Vung Tau, and Khanh Hoa-Buon Ma Thuot. Meanwhile, the two beltways are Beltway No. 4 in Hanoi and Beltway No. 3 in the HCMC area.

PM Chinh chaired the 5th teleconference on April 12 of the State Steering Committee on key national traffic infrastructure projects, with 43 provinces and cities attending.

He emphasized that public investment, including in infrastructure projects, is one of the important driving forces for the country’s economic growth.

As for the five infrastructure projects, Chinh assigned the Ministry of Transport to work with 14 provinces and cities to urgently carry out land clearance and complete necessary procedures, and start construction work before the end of June.

Chinh also asked leaders of Hung Yen and Bac Ninh provinces to promptly complete the approval process of the Beltway No. 4 project’s components.

For those projects that are still behind schedule, especially the Long Thanh International Airport, Chinh asked relevant ministries and agencies to speed up construction work, ensure quality, and hold competitive tenders to select capable contractors.

The Ministry of Transport has been required to ensure the expansion of the HCMC-Long Thanh expressway is completed on schedule to connect to the first-phase Long Thanh International Airport.

He urged the Ministry of Transport and localities to re-evaluate the investment of the Ninh Binh-Nam Dinh-Thai Binh expressway.

Regarding ongoing projects like Mai Son-National Highway 45, Dau Giay-Phan Thiet, and Phan Thiet-Vinh Hao, which are scheduled to be completed by April 30 (Reunification Day) Chinh requested the ministry to ensure they meet the deadline.

The Ministry of Transport was asked to coordinate with other ministries to review the area of forest land and paddy fields related to the North-South expressway project in the 2021-2025 period in accordance with regulations.

Outstanding results achieved in trade facilitation programme: USAID

After five years of implementation, the USAID Trade Facilitation Programme has helped improve the business environment in Viet Nam, with a direct and long-lasting impact on the business community, said officials.

The United States Agency for International Development (USAID) has worked with the General Department of Vietnam Customs (GDVC) through the programme, which is worth US$21.7 million, from 2018–2023.

The goal is to assist the government in developing and implementing a risk management strategy at the customs office and specialised inspection agencies as well as enhancing the execution of the Trade Facilitation Agreement of the World Trade Organisation (WTO).

Thanks to the close partnership with customs and other agencies, the project has supported GDVC to implement 20 out of 24 WTO-TFA provisions and develop and revise 43 legal instruments related to specialised inspections, of which 37 have been issued.

It also strengthened ties between customs and the private sector by inviting them to programme training and consultation events.

Enterprises now spend less time in specialised inspection activities. Since 2019, border clearance times have been halved from 103.68 hours to 54.8 hours for imports and from 95.78 hours to 38.4 hours for exports.

As a result, the costs for traders to complete cross-border procedures fell from $659 to $313 for imports and from $420 to $338 for exports.

He also said that the end of the project is a new beginning for the cooperation relationship between the Ministry of Finance, GDVC, and USAID in the effort to implement the strategies of the finance and customs sectors in the new period to realise Viet Nam’s digital transformation goals.

Speaking at the event, Mai Xuan Thanh, former director of the USAID Trade Facilitation Programme, believed that the reform of the country’s customs procedures is not only for strengthening inter-agency cooperation but also for increasing its competitiveness over the international customs authorities.

Sharing his opinion, Dau Tuan Anh, Vice Secretary General and Director of the Legal Department under the Vietnam Chamber of Commerce and Industry (VCCI) said that the project impacts directly not only the customs sector and other government agencies but also on the beneficiaries, of the majority being businesses, importers, and exporters.

Tuan added that the key point of the project is to empower businesses to evaluate the quality of customs and commercial procedures. Therefore, businesses, especially small and medium enterprises, have the opportunity to raise their voice.

Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes