Vietnam’s 70 sweet potato cultivation areas and 13 packaging facilities have been licenced to export to China, reported the Ministry of Agriculture and Rural Development (MARD)’s Plant Protection Department.

General director of the department Hoang Trung said, on November 9, 2022, the MARD and the General Administration of Customs China (GACC) signed a protocol on quarantine requirements for sweet potato exports to China.

The GACC recently sent a diplomatic note to the department to inform the results of inspection on Vietnamese enterprises that export sweet potatoes to China.

During the online inspection of 23 Vietnamese sweet potato packaging facilities, Chinese authorities revealed that 13 out of the establishments fully meet the phytosanitary requirements outlined under the provisions of the protocol.

The Chinese side also confirmed that 70 of Vietnam's  sweet potato growing areas meet the stringent standards under the terms of the protocol.

The department has also come up with plans to ship the first batch of sweet potatoes to China.

Vietnam is now home to about 100,000ha of sweet potato cultivation areas with a total output of 1.2-1.3 million tonnes, which are abundant for export.

Labour market continues recovering in Q1

Vietnam’s labour market continued to maintain recovery momentum in the first quarter of 2023, Deputy Director General of the General Statistics Office (GSO) Nguyen Trung Tien said at a press conference in Hanoi on April 6.

Pham Hoai Nam, Director of the Population and Labour Statistics Department, added that the unemployment rate in the working age saw decreases compared to the previous quarter and the same period last year.

Those aged 15 and over in the first quarter of 2023 was 52.2 million, 88,700 higher than that of the previous quarter and an increase of more than 1 million compared to the same period last year.

In the period, 51.1 million people aged 15 and over had jobs, 113,500 higher than the previous quarter and 1.1 million higher than the same period last year.  Of the total, 18.9 million people were working in urban areas.

The number of underemployed people in the working age was around 885,500, down 12,400 against the previous quarter, and 443,100 against the same period last year.

Meanwhile, the number of unemployed people was 1.05 million, down 34,600 compared to the fourth quarter of last year, and 65,100 against the same period last year.

Cooperatives indispensable in agriculture-based economy: seminar

Minister of Agriculture and Rural Development Le Minh Hoan emphasised the important role by cooperatives in the agriculture-based economy at a seminar held by Radio The Voice of Vietnam (VOV) in Hanoi on April 6.

Without cooperatives, agricultural production cannot be transformed into the agriculture-based economy nor a multi-value production sector formed as set in a resolution by the Party Central Committee on agriculture, farmers and rural areas by 2030 with a vision towards 2045, the official said.

Chairman of the Vietnam Cooperative Alliance Nguyen Ngoc Bao said the cooperative economy and cooperatives have experienced extraordinary developments in both quantity and quality, especially in northern midland and mountainous and Central Highlands localities.

Notably, more and more youngsters are starting their business with a model of cooperatives, he said, adding that up to 40% of products under the “One Commune-One Product” (OCOP) programme are from cooperatives.

Regarding amendments and supplements to the Law on Cooperatives, Bao said they should create momentum for cooperatives in the new period, as well as a legal framework for people to join the model voluntarily.

Deputy Minister of Planning and Investment Tran Duy Dong pointed to bottlenecks to the development of cooperatives which, he said, lie with land and capital.

Therefore, the law should make it easier for cooperatives to access loans, and encourage members to contribute to their funding, he said.

Vietnam, Singapore talk cooperation in logistics

Representatives from agencies, associations and businesses of Vietnam and Singapore looked into the market situation, and cooperation potential and opportunities between the two countries, especially in logistics, at a seminar in Singapore on April 5.

The seminar on logistics, trade and connectivity was held under the co-sponsorship of the Agency of Foreign Trade at the Vietnamese Ministry of Industry and Trade (MoIT), the trade office at the Vietnamese Embassy in Singapore, the Singapore Chinese Chamber of Commerce & Industry (SCCCI), and the Singapore Logistics Association.

It formed part of the activities by a MoIT delegation that comes to Singapore to learn about the country’s experience and introduce business and investment opportunities in logistics between the two countries.
In his remarks, Ambassador Mai Phuoc Dung pointed to ample room for the two countries’ firms to cooperate in the sector.

SCCI Chairman Kho Choon Keng lauded Vietnam’s rapid recovery after the COVID-19 pandemic, with its GDP expected to grow 6.0% this year, saying the country remains a popular destination for Singaporean enterprises.

With its strong economic growth, and young, abundant, skilled workforce, Vietnam is luring more international investors, he said, noting that logistics services and supply chains will play an important role in spurring the national economy in the time ahead.

Statistics show that 30,000 businesses in Vietnam are operating in transportation, warehousing and delivery services. The country ranks third in the ten-member Association of Southeast Asian Nations (ASEAN) in logistics performance index (LPI).

Seminar discusses Industry 4.0 and opportunities for Vietnamese retail industry

The Vietnam Retailers Association hosted a seminar on April 6 in Hanoi with the theme of "Industry 4.0 and opportunities for the retail industry in Vietnam".      

In her opening remarks, Dr. Dinh Thi My Loan, chairwoman of the Vietnam Retailers Association, emphasised that the occasion provides an ideal forum in which state management agencies, economic and technological experts, and representatives of retail businesses can discuss development trends and propose solutions aimed at overcoming the existing difficulties.

The recommendations put forward at the event are anticipated to create the driving force to promote the development of the Vietnamese retail market in line with the general trend of Industry 4.0, Loan added.

Dr. Dinh Thi Bao Linh, deputy director of the Industry and Trade Information Center under the Ministry of Industry and Trade, said the Vietnamese retail market witnessed stable development during the 2017 to 2022 period, despite challenges brought about by COVID-19.

In the first quarter of the year, retail sales of goods reached VND1187 trillion, up 11.4% on-year, duly accounting for 78.9% of total retail sales of goods and services in the reviewed period.

Linh pointed out that the Industry 4.0 is forecast to accelerate the process of automation, forming distribution networks, sharing information resources on a large scale, all of which will pose both opportunities and challenges for the retail industry moving forward.

She therefore advised retail businesses to stay updated with market trends and enhance adaptability for the cause of sustainable development in the long-run.

With regard to solutions, aside from efforts made by the State in improving the business climate and creating an open legal environment, retailers must strive to create an automatic procedure so that customers can freely select products, payment, or refund methods, as well as reducing high customer care costs.

Ministry proposes higher cap for State's share in PPP projects

Economists and policymakers have voiced their support over a proposal put before the National Assembly by the Ministry of Planning and Investment (MPI) to raise the State's contribution limit in public-private-partnership (PPP) infrastructure projects to 65%.

The current limit for state contribution in PPP projects was set at 50%.

They said as the economy slows down, it is important to introduce additional measures to encourage the private sector to participate in such projects lest they will grind to a halt.

With the State shouldering a larger share of the initial investments, there would be considerably less pressure on its private partners. However, it would likely result in long-term repercussions for the State's budget.

However, given the rather large number of critical infrastructure projects required to spearhead economic development in the coming decades and a gloomy economic outlook for the foreseeable future, raising the State's contribution limit could be a reasonable compromise in the short run.

The limit can be later adjusted, depending on the economy and what the country's legal framework would allow in the future.

The proposal also reviewed the effect of the State's contribution limit in PPP projects in remote and disadvantaged areas across the country, which typically attract few investors.

According to the MPI, it is only logical the State should shoulder a larger share of the risk involved in such areas in comparison to that of investors. Conversely, investors should expect to contribute more to PPP projects in large cities and provinces.

Dr. Nguyen Huu Nguyen from the Ho Chi Minh City Urban Planning Development Association said lifting the cap on state contribution will help speed up the development of critical infrastructure projects, which largely fall under the State's responsibility.

Nguyen said even without participation from the private sector, such projects must be carried out.

From an investor's perspective, they have to balance between risk and profit, and in their eyes, only projects with good potential rates of return are worth considering.

Economist Ngo Tri Long said along with raising the limit, the central government must look into issues that are currently hindering the development of numerous infrastructure projects. He said it's a matter just as important for investors.

Corporate bonds worth 1.1 billion USD issued in March

The corporate bond market is showing signs of recovery with a notable increase in both the number of issuers and the value of issued bonds in March.

According to the Vietnam Bond Market Association (VBMA) that collected data from the Hanoi Stock Exchange (HNX) and the State Securities Commission of Vietnam (SSC), there were 11 issue placements of corporate bonds worth over 26.42 trillion VND (over 1.1 billion USD) in March 2023.

The number was a significant increase compared to the value of 2 trillion VND in February and 110 billion VND in January.

According to VBMA, the total value of bonds bought back before maturity in March 2023 was nearly 14.3 trillion, up 137% over the previous month and up 64% over the same period last year.

Construction and consuming goods were two groups that recorded the largest repurchase value in the month, reaching 5 trillion VND, accounting for 35% of the total repurchase value, and 3.4 trillion VND, accounting for 24% of the total repurchase value.

In the first three months of this year, the total value of bonds bought back by businesses reached more than 29.86 trillion VND, 63% higher than the figure of the same period last year.

Quang Ninh province’s seaports need further push

Sea ports have been expected to be a key driver for the economic growth of the northeastern province of Quang Ninh, but for years they have failed to meet the expectation because of shortcomings.

In 2022, ports in the province only received 10,000 TEU from international container shipping lines and about 500 passengers from six international cruise ships.

Last year saw the halt of 80% of the small-sized vessels with a capacity of under 200DWT each that used to operate in Van Gia Port in Mong Cai city.

Deputy Director of Quang Ninh Port Authority Bui Ngoc Nam said that the Cam Pha navigation passage is currently managed by the Vietnam National Coal – Mineral Industries Group. However, in the last five to seven years, just 30% of goods carried on the passage are coal products.

He said that the Cam Pha port area is planned to receive vessels with a capacity of up to 200,000DWT or larger, meaning the depth of the passage must be at least 15 metres but it’s now just about 10 metres.

Nam said that with the typical maritime activities of Quang Ninh seaports, the transshipment of goods at anchorages accounts for about 70% to 80% of the volume of goods passing through the ports. However, the current mooring and transshipment areas are located 20km to 40km from the shore, causing difficulties in saving costs and ensuring safety for people and inland waterway vessels in the port areas.

Deputy Director of Huy Manh Tang Ngoc Ha Co., Ltd. said that seeing the province’s mechanisms and policies on developing seaports and seaport services, businesses have boldly invested in equipment and human resources to meet demand for goods handling.

Businesses also quickly connect and transport goods using inland waterway transportation from the seaports to other northern provinces, building prestige and trust for shippers, ship owners, and foreign partners so that they can help attract big vessels to Quang Ninh seaport area.

To improve the competitiveness of seaports, the province needs to focus on developing passenger and cargo port services, especially liquefied petroleum gas products, and on expanding seaport infrastructure and post-port logistics service area, he said.

Nonghyup, KOTRA boost exports to Vietnam

The National Agricultural Cooperative Federation of the Republic of Korea (Nonghyup) announced on April 5 that it has opened an office in Vietnam to expand its exports to Southeast Asian countries, including Vietnam, and seek new projects as well as pave the way for its kimchi exports to Vietnam.

Nonghyup Chairman Lee Sung-hee pledged to make efforts to introduce high-quality farm produce from Nonghyup to Vietnam and explore foreign markets, thus creating conditions for Nonghyup's kimchi to become a representative product of the RoK.

Nonghyup also signed a memorandum of understanding (MoU) with Korean food trading companies in Vietnam to promote new products and collaborate on marketing to increase consumption.

The same day, the Korea Trade-Investment Promotion Agency (KOTRA) and Incheon Technopark opened a Korean booth at the 32nd Vietnam International Exhibition in Hanoi to boost exports.

The booth displays a diverse range of products from small and medium-sized enterprises, including cosmetics, food and beverages, materials and equipment, fashion and accessories.

KOTRA helped the participating companies with Vietnamese marketing materials and introduced them to 150 key Vietnamese businesses, including the largest retail system in Vietnam called Wincommerce.

Hanoi focuses resources on key projects

Hanoi has focused on pushing investors and contractors to increase resources and speed up the progress of major projects and works in the city in the first months of this year.

According to the capital’s People’s Committee, in the first three months of this year, about 81.8 trillion VND (3.48 billion USD) of development investment was disbursed, up 8.6% year on year.

Of the total, 27.4 trillion VND was from the State budget, 48 trillion VND from non-State sector and the rest from foreign investors.

In terms of sectors, capital construction posted the highest amount of disbursed investment at 50.2 trillion VND, accounting for 61.4% of the total, representing a rise of 10% year on year.

Meanwhile, 22.9 trillion VND, or 28%, was spent on purchasing fixed assets for production, up 7.8% year on year.

 Capital construction posted the highest amount of disbursed investment at 50.2 trillion VND (Photo: VNA)
In 2023, Hanoi has 238 public investment projects under construction, including 219 projects still underway from previous years and 19 newly-started projects, of which 96 projects are in the transport sector with a total investment of 7.52 trillion VND, accounting for 53.1% of the capital volume that the city is assigned to disburse during the year.

Major projects of the city in the 2021-2025 in the city have been making good progress in line with schedule, including the Hanoi Children’s Palace, which was launched in March 2021 with total investment of over 1.37 trillion VND.

The Ba La-Xuan Mai section of the National Highway No.6, launched in 2022 at a cost of 8.11 trillion VND, is expected to complete in 2027.

Meanwhile, the Vinh Tuy Bridge project, which was started in January 2022, has 43% of the work load completed, including 90% of the piles and an approach road.

Other important transport projects have also been implemented as scheduled. The city is focusing on speeding up ground clearance for the projects.

Hanoi harvests over 25,000 tonnes of aquatic products in first quarter

Hanoi posted a total aquaculture output of over 25,000 tonnes in the first quarter of this year, a year-on-year increase of 2.1% despite the aquaculture growing areas remaining at 24,000 ha.

According to the city’s Department of Agriculture and Rural Development, aquaculture farms have been applying intensive farming methods that generate higher productivity than the traditional ones.

The department said that to further increase aquaculture production in the city, localities are asked to review their production structure and ensure disease prevention and control.

The department will also coordinate with localities to promote production based on value chains and assist farmers to develop aquaculture cooperatives and key products.

Industrial production index fell in Q1

The first quarter of 2023 saw a decline of 2.2 per cent in the Index of Industrial Production (IIP) compared to the same period last year, due to the impact of the world economy's challenges on domestic production and business, according to the General Statistics Office (GSO).

Among the sectors, the mining industry recorded the highest IIP decrease with 4.4 per cent. The processing and manufacturing industry followed with 2.4 per cent, while the electricity generation and distribution sector saw a decline of 1 per cent.

However, the water supply, waste-water treatment and management activities witnessed an increase in IIP by 7.8 per cent.

Several essential industrial products showed a decrease in IIP during the first quarter of 2023, including automobiles (17.8 per cent), bar and angle steel (15.8 per cent), motorbikes (13.8 per cent), phone components (13.4 per cent), textiles from natural fibres (13.1 per cent), mobile phones (13.1 per cent), casual wear (10.2 per cent), and cement (9.9 per cent).

The decline in production of these key products impacted the IIP and value-added of the industrial sector in the first quarter of the year.

The industry's consumption index also decreased. The consumption index of the processing and manufacturing industry in the first quarter of 2023 decreased by 2.9 per cent year on year.

This led to an estimated inventory of the processing and manufacturing industry in the first quarter, up 19.8 per cent over the same period last year.

That situation showed that enterprises' production and business efficiency was significantly affected.

According to the General Statistics Office (GSO), IIP in the first quarter of 2023 increased in 48 localities but decreased in 15 localities.

Several localities with IIP achieved a relatively high increase due to the increase of IIP in the processing and manufacturing industry; and electricity generation and distribution industry. They included Cao Bang (up 26.8 per cent); Tuyen Quang (22.6 per cent); Hai Phong (14.8 per cent); Quang Ninh (13.6 per cent); Hai Duong (12.5 per cent); and Nam Dinh (12.3 per cent).

Some localities had low growth rates or reduction in IIP, such as Quang Nam (34.3 per cent); Bac Ninh (18.8 per cent); Vinh Long (16.5 per cent); Soc Trang (15.6 per cent); and Vinh Phuc (8.1 per cent).

The decline in industrial production in the first months of 2023 was due to external and internal factors.

Economic competition and trade wars have been more intense. The Russia-Ukraine conflict has kept the global prices of input fuel, energy and logistics high, affecting the production costs of domestic enterprises.

In addition, inflation is still at a high level. Monetary policy has been tightened, leading to stricter spending in some large consumer markets such as the US and EU. This has caused export orders to decrease, greatly affecting the production of Viet Nam's enterprises.

Moreover, the reopening of China has created a lot of pressure on countries with similar export products, including Viet Nam.

In the domestic market, purchasing power has resumed, but the recovery has not stimulated production.

Enterprises still have difficulties accessing capital and face high bank interest rates and input costs of raw materials, especially in the processing and manufacturing industry. The absorption capacity of capital has begun to decrease due to the lack of orders.

The majority of surveyed enterprises have provided positive evaluations about the production and business situation in the first three months of this year, according to a report on the operation of enterprises in the first quarter of 2023 recently released by GSO.

Specifically, the survey results on business trends of enterprises in the processing and manufacturing industry in the first quarter of 2023 showed that 24.3 per cent of enterprises rated the production and business situation as better than in the fourth quarter of 2022.

About 37.2 per cent of enterprises said that the production and business situation was stable, and 38.5 per cent of enterprises rated it as having difficulties.

For the second quarter of 2023, 44.1 per cent of enterprises expect the trend to be better than the first quarter, while 35.3 per cent of enterprises said that the production and business situation would be stable, and only 20.6 per cent of enterprises have forecast greater difficulties.

In the first quarter of 2023, Viet Nam had nearly 34,000 newly registered enterprises with total registered capital of VND310.3 trillion, down 2 per cent in the number of enterprises and down 34.1 per cent in registered capital compared to the period last year.

The nation had more than 23,000 enterprises returning to operation, down 10 per cent from the same period in 2022, bringing the total number of newly established and resumed enterprises in the first three months of 2023 to nearly 57,000 enterprises, down 5.4 per cent on the year.

During the first three months, the number of enterprises temporarily suspending business was 42,900 enterprises, up 20.1 per cent over the same period last year. About 12,800 enterprises stopped operating and waited for dissolution procedures, up 13.1 per cent, and 4,600 enterprises completed dissolution procedures, up 6.5 per cent. 

Khanh Hoa ready for return of Chinese tourists

The tourism sector of the southcentral province of Khanh Hoa has made active preparations ahead of welcoming back Chinese travelers following the first flights bringing Chinese tourists back to the nation being successfully conducted in April.

This marked the first flight taking Chinese travelers to Khanh Hoa after the northern neighbour resumed outbound group tours to Vietnam on March 15.

The flight was conducted by Bamboo Airways in collaboration with AsiaTourist to bring more than 150 tourists from Macao, China, to the coastal city of Nha Trang after a three year hiatus due to the COVID-19 pandemic.

At present, local travel firms plan to organise four flights to carry passengers from Macao to Cam Ranh every week as of April.

Furthermore, Khanh Hoa province also intends to launch additional routes from localities such as Shanghai and Fujian in China to the locality, with a frequency of three flights per week starting from May.

Nguyen Van Duong, representative of Asia Tourist Co., Ltd., said the company is continuously seeking new partners from various provinces and cities across China in a bid to elevate Nha Trang's image to Chinese tourists whilst continuing to bring more visitors to the city.

Before 2020, the locality had welcomed 2.5 million Chinese tourists every year, duly accounting for 70% of the international tourist market. With the aim of restoring the international tourism market this year, the return of visitors from Macao is expected to help the local tourism industry fulfil its annual target of receiving 1.5 million foreign arrivals.

Nguyen Thi Le Thanh, director of the Khanh Hoa Provincial Department of Tourism, revealed that the number of Chinese tourists to the province is anticipated to increase remarkably from the end of April.

In the immediate future, the provincial Tourism Department suggested that local tourism businesses actively connect with Chinese firms in order to bring more visitors to the locality moving forward.

The provincial tourism sector will continue to dispatch delegations to localities throughout the norther neighbour in order to introduce popular destinations in Nha Trang city and Khanh Hoa to Chinese visitors, Thanh continued.

Moreover, tourism facilities are required to make thorough preparations in terms of infrastructure and workforce to ensure that they can provide the best service to customers, she added.

Taxman collects VND427 trillion for State budget in Q1

The total budget revenue collected by tax agencies reached nearly VND427 trillion in the first quarter of this year, up 4.6% year-on-year and accounting for over 31% of the year’s estimate, according to the General Department of Taxation.

Of the total, revenue from domestic sources is estimated at over VND411 trillion, up 5.3% compared to the same period last year, while the balance came from import-export operations.

Twenty-eight among the country’s 63 centrally-governed provinces and cities recorded revenue collections exceeding 28% of the estimate while 14 provinces saw their budget revenue reaching 25-28% of the estimate.

However, 21 other localities failed to reach their targets in the first quarter, including Tuyen Quang, Phu Yen, Thai Binh, Ninh Binh, Binh Phuoc, Lai Chau, Ha Giang, Hoa Binh and Son La.

Tax agencies also processed over 3.3 billion electronic invoices between January and March, including 860 million electronic invoices with codes issued by the taxman and 2.5 billion invoices without codes.

As of March 24, the number of businesses and households that registered to use tax-code electronic invoices had reached over 10,000. The total number of invoices issued is over 1,796 million.

Con Dao airport upgrade to be carried out under PPP

The Government Office has announced that the Con Dao airport upgrade project will be executed under the public-private partnership (PPP) format.

The announcement emphasized that a comprehensive investment, upgrade and expansion plan for the airport, including the runway, passenger terminal and other auxiliary facilities are needed to transform it into a national-scale airport.

The Ministry of Transport, the Commission for the Management of State Capital at Enterprises and the Airports Corporation of Vietnam all agreed to prioritize implementing the project under PPP.

The Ba Ria-Vung Tau People’s Committee was assigned to find investors, mobilize capital, conduct investment research and evaluate the economic and technical feasibility of the project.

Deputy Prime Minister Tran Hong Ha requested the Ministry of Transport to draw up a comprehensive investment plan to synchronously upgrade the airport and all of its components, assess the economic efficiency of the investment and supervise the implementation to ensure it complies with technical standards and regulations.

Con Dao, one of the oldest airports in Vietnam, has a short runway and can handle only 300,000 passengers per year. Currently, it is classified as a 3C civil and second-class military airport.

According to the upgrade plan, Con Dao will be used for both civil and military purposes and be able to handle two million passengers and 4,400 tons of cargo per year.

Banks tend to be cautious about growth plans in 2023

Banks are cautious about growth for 2023 when preparing business plans to submit to their annual general meetings of shareholders (AGM) this month.

If last year saw a record high in profit of the banking industry, 2023 seems to be the beginning of a new cycle with a slowdown of growth for the industry.

In a plan submitted to the upcoming AGM, though Vietcombank aims to increase profits by at least 12 per cent compared to the previous year to more than VND41 trillion, the number is low compared to the 2022 result when the bank recorded an accumulated profit of nearly VND37.36 billion, up 35.9 per cent compared to 2021.

NamABank sets a pre-tax profit target of VND2.4 trillion in 2023, an increase of more than 9 per cent compared to the previous year. Meanwhile, in 2022, this bank set a profit target for the whole year to increase by 25 per cent compared to 2021 at VND2.25 trillion and the bank in fact achieved a profit higher than the set target.

VIB targets pre-tax profit in 2023 to reach VND12.2 trillion, up 15.3 per cent over the previous year. The expected profit growth of VIB is equal to just half of 2022.

Eximbank also sets a business plan in 2023 with an estimated pre-tax profit of VND5 trillion, an increase of 35 per cent compared to 2022. In 2022, Eximbank was the bank with the fastest growth in pre-tax profit with VND3.7 trillion, more than 3 times higher than in 2021.

A recent survey by the State Bank of Vietnam also showed commercial banks were more cautious when forecasting their growth this year. According to the survey, only more than half of banks expect their business performance to improve in 2023, but the improvement is lower compared to 2022.

An analysis of SSI Securities Company also forecast the profit growth of banks in 2023 can reach 13.7 per cent, equal to half the growth rate in the 2017-21 period (28 per cent) and higher than the 2014-15 period (11.3 per cent). However, in the negative scenario, the profit growth of banks may reach only about 10 per cent this year, the analysis noted.

Hoang Cong Tuan, chief economist of Military Bank Securities (MBS), said the market will not see banks set a profit growth target of 30-40 per cent this year. Instead of the high rate, just setting a profit growth target of more than 20 per cent this year is already very impressive.

Experts also forecast the banking industry will continue to face difficulties in 2023 in the context of the less positive outlook of the global economy. Viet Nam is increasingly integrating into the world's economy so it is certain the country will suffer more adverse impacts than previously.

Under the gloomy outlook, banks will have to strengthen provisions, which will cause increased capital cost. Meanwhile, potential bad debt risk is high in the context of production and business difficulties. This makes it difficult for banks' profits this year to maintain the high growth rate as in 2022, the experts explained. 

24 listed companies late filing audited business reports: HoSE

The Ho Chi Minh Stock Exchange (HoSE) has issued a document reminding many listed companies who have not submitted their audited financial statements for 2022.

Public companies must disclose audited annual financial statements within ten days of the audit organisations signing on the audited reports but no later than 90 days following the end of the fiscal year, as per the Ministry of Finance's regulation on information disclosure on the stock market.

Even though the deadline for submitting reports has passed, as of April 3, 24 businesses still haven't disclosed their reports following the rules.

The southern exchange said that the deadline for filing reports has expired, and it has not received the audited financial statements for 2022 of these companies. 

HoSE advises businesses to submit the reports following the law swiftly.

Most of the 24 businesses on the list work in the real estate and construction sectors, and many have asked for extensions for various reasons.

For example, Novaland sent a letter to the State Securities Commission of Vietnam (SSC) and HoSE asking them to delay the release of the annual audited financial statements for 2022.

The property developer explained that the extension for disclosing its audited financial report is to rearrange and stabilise its production and business activities and gradually restructure the business. 

The audit unit needs more time to complete auditing the company's financial statements. Therefore, Novaland requested an extension to publish the report, with an expected deadline of April 15.

Hoa Binh Construction Group JSC said that it also wants to extend the publication of its audited financial statements until May 12 at the latest.

In the letter of request for an extension, Le Viet Hai, chairman of the Board of Directors, said that a number of the company's projects across the nation recently had to be put on hold because of the challenging real estate market.

Many clients experience cash flow problems, which disrupt buildings and cause payments to be late.

And this has a significant impact on the company's ability to collect money from its initiatives. The audit unit must therefore take more time to complete its duties and gather more documents.

Moreover, Hoa Binh Construction saw numerous changes in senior personnel and conflicts among the Board of Directors members between the close of 2022 and the start of 2023. As a result, the business finds it challenging to coordinate the timely completion of financial statements and report disclosure.

Other realty companies in the list of HoSE reminding of late submission of audited financial statements are Hung Thinh Incons JSC, Louis Capital JSC, Everland Group JSC, and LDG Investment JSC.

As of April 3, some companies under FLC Group have not submitted audited financial statements: FLC Stone Mining And Investment JSC, HAI Agrochem JSC, and FLC Mining Investment & Asset Management JSC.

Others on the list included Apax Holdings, Pomina Steel Corporation, Tri Viet Securities JSC, Binh Thuan Agriculture Services JSC, and Vietnam Electricity Construction JSC.

HOSE warns 24 firms over late filing of 2022 reports

The Hochiminh Stock Exchange, or HOSE, has released a list of 24 businesses that failed to submit their 2022 financial reports on time and urged them to do what is required by law.

Real estate and construction firms make up a majority of these 24 firms as of April 3, 2023, many of which have requested a deadline extension.

Novaland Group Joint Stock Company (stock code NVL) wrote to both the State Securities Commission and the Hochiminh Stock Exchange seeking approval to extend the deadline for submission of its report to April 15.

Hoa Binh Construction Group Joint Stock Company (stock code HBC) also requested a deadline extension for the latest audited financial statement submission for 2022 until May 12.

The list also includes several real estate and construction companies such as Hung Thinh Incons JSC (HTN), Louis Capital JSC (TGG), Everland Group JSC (EVG), LDG Investment JSC (LDG) and two airlines, VietJet Aviation JSC (VJC) and Vietnam Airlines Corporation (HVN).

As of April 3, Apax Holdings and some companies under FLC Group, such as AMD, HAI and GAB, have yet to submit their audited financial statements.

Public companies are required to disclose their audited annual financial statements within 10 days from the audit report signing date but no later than 90 days from the end of the fiscal year, according to the Ministry of Finance.

Therefore, the Hochiminh Stock Exchange asked those firms to submit their audited financial reports as soon as possible.

Special consumption tax deferment proposed for local car manufacturers

The Ministry of Finance has proposed the Government defer the payment of special consumption tax (or excise tax) during the tax periods of June, July, August and September 2023 for domestically manufactured and assembled automobiles.

The ministry reported the above information to Prime Minister Pham Minh Chinh and Deputy Prime Minister Le Minh Khai on the excise tax deferment for local vehicle manufacturers.

As of March 15, 2023, 12 enterprises had submitted their requests for an extension of excise tax payment. The total deferred excise tax amount was VND9,603 billion in the same period. Meanwhile, the amount paid to the State budget reached VND8,871 and the balance was VND731 billion.

The total special consumption tax payable by the above 12 enterprises to the State budget in January 2023 was VND1,024 billion. Of which, the paid amount was VND1,008 billion and the balance would be VND15.9 billion.

Given the obstacles faced by local car manufacturers in the last quarter of 2022, such as rising loan rates, low credit limits and uncertainties of the financial market predicted for this year, the special consumption tax deferment would be necessary for the enterprises at this time, according to the ministry.

With the proposed excise tax payment deferral to the latest November 20, 2023, made by the Ministry of Finance, the estimated amounts payable would range from VND2,600 billion to VND2,800 billion per month, totaling VND10,400 billion to VND 11,200 billion in the proposed four tax periods.

This is the fourth time, following Decree 109 in 2020, Decree 104 in 2021 and Decree 32 in 2022, that the Ministry of Finance has sought the Government’s approval to defer the special consumption tax to help local car manufacturers’ businesses recover.

Hanoi to manage Hoa Lac Hi-tech Park

The management of Hoa Lac Hi-tech Park will be transferred from the Science and Technology Ministry to Hanoi. This is the news announced in yesterday’s quarterly press conference of the Science and Technology Ministry.

Deputy Minister of Science and Technology Bui The Duy said that with the agreement of Hanoi, his Ministry has submitted the project ‘Changing the Management of Hoa Lac Hi-tech Park to Hanoi’ to the Prime Minister for approval. When Hanoi receives it, the Park will keep its core technology and pour more investments in traffic infrastructure as well as satellite urban areas.

Hoa Lac Hi-tech Park was established in 1998 under the decision of the Prime Minister. It has a total surface area of 1,600ha, built under the model of a scientific city with full utilities and functional facilities. However, for the past few years, the development of this Park has not been to the expectation, especially infrastructure completion and investment attraction.

Viet Nam remains attractive to French investors

French businesses and consultants commented that, along with the constantly improving role and position, Viet Nam's political stability, security and attractive foreign investment policy were bright spots maintaining attractiveness for French investors, at the business seminar in Paris on April 4.

With the theme "Viet Nam's strengths in the Asia-Pacific region, what opportunities for French businesses", the seminar attracted the attention of many French investors planning to invest abroad and French businesses operating effectively in Viet Nam.

2023 marks the 50th founding anniversary of diplomatic relations and the 10th anniversary of the strategic partnership between the two countries.

Viet Nam has many advantages and attractions for foreign investors, such as dynamic foreign trade, influential monetary policy and expanding domestic consumption.

The Vietnamese Government has set three priorities in international economic cooperation and foreign direct investment. Therefore, there are many favorable opportunities for French investors.

Specifically, these are promoting all cooperation and investment for sustainable development based on science, technology and innovation, promoting the participation of the Vietnamese economy in regional and global value chains and promoting the digital economy, green economy and circular economy.

French businesses are looking for a stable and safe place to invest in the long term. Meanwhile, Viet Nam is one of the countries well-known for stability and especially its capacity to contain the COVID-19 pandemic and revive the economy.

French businessmen attending the seminar shared the view that its rapid recovery of all activities after the Covid-19 pandemic was a factor that helped Viet Nam become more prominent.

Viet Nam has many advantages to attract the attention of the world. France and Viet Nam have been close for decades, which is the basis for expanding economic links and cooperation, the business representatives noted.

Tax refund stand-off comes to a head

A range of business associations in Vietnam have addressed their concerns over current tax refund procedures.

The topic was raised at last week’s meeting between the Ministry of Planning and Investment (MPI) and other ministries, agencies, and business associations on cutting down administrative procedures and removing other legal obstacles that are hindering enterprises.

According to the Board for Private Economic Development Research (IV Board) under the Advisory Council for Administrative Procedure Reform, opinions on current tax rules were collected from 30 business associations.

It found that some enterprises are struggling with the delay of VAT refunds, especially wood and rubber companies. There is an unreasonable VAT rate for the fertiliser industry; and there are difficulties in paying VAT for paper producers that need to collect scrap and other businesses that need to collect sand, gravel, and bricks.

Pham Thi Ngoc Thuy, head of the IV Board, told Minister of Planning and Investment Nguyen Chi Dung that the VAT refund process is taking a long time without any specific deadline, and so businesses cannot manage their cash flows and income.

“Enterprises that produce and export wood chips and wood products, for example, estimate that the accumulated amount of money waiting for a refund since 2020 is up to hundreds of millions of US dollars. If this situation persists, many businesses will have to declare bankruptcy,” said Thuy.

Moreover, the process of monitoring wood origins is also said to be spread out, and many stages in tax refund considerations are not suitable in practice, pushing risks into the afforestation stage or the stages of buying and selling raw wood for production and export.

The IV Board noted an example of authorities detecting some violations in planting forests, and buying and selling raw wood in a northern locality. When this occurred, all buyer enterprises stopped importing wood input materials from the location. “That has an immediate impact on supply chains and manufacturing,” the IV Board highlighted in a document sent to the prime minister last week.

In paper production, businesses would like to promote the recycling of used paper towards circular production. “However, when buying paper and scrap from domestic collection channels, most of them do not have invoices, so proof of origin is not guaranteed. Thereby, businesses cannot prove the origin of materials and cannot get a 10 per cent VAT refund,” Thuy added.

According to the Vietnam Pulp and Paper Association, the General Department of Taxation (GDT) agreed for businesses to build lists of collecting materials but the total amount cannot surpass VND100 million ($4,350), which they said is too small compared to the concentrated purchasing needs of most producers.

Meanwhile, fertiliser is not subject to VAT and input materials do not be deducted. Enterprises have to include all incurred VAT in production costs, increasing costs and selling prices, thereby reducing competitiveness as compared to imported fertilisers. Moreover, projects for fertiliser production are also ineligible for VAT refunds for tech equipment, leading to high investment rates and reducing the motivation of enterprises for research and development.

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