Construction will concurrently start on 12 component projects of the second phase of the North-South Expressway project (2021-2025) on January 1, 2023.

Accordingly, the groundbreaking ceremonies will be held in Ha Tinh, Quang Binh, Quang Tri, Quang Ngai, Phu Yen, Binh Dinh, Khanh Hoa, Hau Giang and Ca Mau provinces.

The second phase of the expressway project consists of 12 component projects with a total length of 723.7km, of which the Ha Tinh-Quang Tri section is 260.9km, Quang Ngai-Nha Trang 352.1km and Can Tho-Ca Mau 110.9km.

The total investment is initially estimated at nearly 147 trillion VND (6.23 billion USD).

Samsung inaugurates largest Southeast Asia R&D center in Vietnam

Samsung Electronics held an official opening ceremony for its largest Southeast Asia research and development center in Hanoi this morning, December 23, reported the local media.

This new R&D Center in Hanoi spans around 11,603 square meters of land, requiring an investment of US$220 million. It is a 16-storey building with three basement floors and a total floor area of 79,511 square meters.

Samsung plans to develop this R&D facility into a leading center worldwide by strengthening partnerships with universities in key technology areas, improving the research capacity in the core technology of mobile devices, achieving autonomy in producing products of Artificial Intelligence, Big Data, the Internet of things, and reinforcing the quality of IT human resources.

Additionally, this R&D Center will contribute to the development of the hardware and software industries, as well as advanced information technology and the fourth industrial revolution in Vietnam.

The R&D Center’s opening in Hanoi is a testament to Samsung’s orientation and commitment to long-term operations in Vietnam, Prime Minister Pham Minh Chinh said at the event.

After establishing its first smartphone factory in the northern province of Bac Ninh in 2008, Samsung continued to invest in Vietnam through the second factory in Thai Nguyen Province and the Samsung Electronics CE Complex in HCMC.

Currently, around half of all Samsung smartphones are made in Vietnam. Moreover, Samsung has also been conducting software development and testing of mobile devices and networks in Vietnam.

Samsung’s total accumulated investment in Vietnam was estimated at US$18.2 billion by the end of 2021 and is expected to exceed US$20 billion by the end of 2022.

Cambodia's Angkor Air opens first air route between Siem Reap and Hanoi

Cambodia’s Angkor Air unveiled on December 23 that it had successfully conducted the first flight connecting the Cambodian province of Siem Reap with the Vietnamese capital of Hanoi.

The flight departed from Siem Reap International Airport and landed at Noi Bai International Airport in Hanoi on December 22, carrying onboard 68 passengers. The return flight left for Siem Reap on the same day, transporting a total of 81 passengers.

According to details given in the announcement, Cambodia’s Angkor Air will initially conduct three flights per week, using A320 aircraft on Tuesdays, Thursdays, and Saturdays.

Aside from the new air route, there will be four continuous air routes between Cambodia and Vietnam. This includes two flights on the Siem Reap-Ho Chi Minh City route, one flight on the Siem Reap-Da Nang route, three flights on the Phnom Penh-Hanoi route, two flights on the Phnom Penh-Ho Chi Minh City route, and one flight on the Sihanoukville-Ho Chi Minh City route each day.

Central bank restricts interest rate hikes

The central bank’s governor has urged commercial banks to step up efforts to slash interest rates to ensure adequate credit for businesses, saying it would monitor and may impose sanctions on banks hiking rates.

Yesterday, November 22, the State Bank of Vietnam (SBV), the country’s central bank, wrote to commercial banks asking them to cut operating costs and non-essential expenses to have enough cash reserves and lower their lending rates.

They were also told actively support the economy by giving new loans while strengthening the credit risk management of those who borrow to invest in real estate, corporate bonds and stocks.

The manufacturing sector and industries deemed as the country’s economic drivers should be prioritized as directed by the prime minister.

Last week, the SBV ordered commercial banks to report on interest rate movements every week as swift interest rate hikes have fueled banks’ competition for depositors, driving up lending rates and leading to hesitation in applying for new loans among businesses.

PV Gas to shut down BR-VT branch

PetroVietnam Gas Joint Stock Corporation, whose shares are traded on the Hochiminh Stock Exchange under the code GAS, has passed a plan to stop the operation of its branch in Ba Ria-Vung Tau Province.

The PV Gas Branch in Thang Nhi Ward in Vung Tau City will shut down on January 1, 2023, which is part of the firm’s restructuring plan, the local media reported.

Between January and September, GAS posted some VND78.7 trillion in revenue, up 33.8% year-on-year, and VND11.7 trillion in after-tax profit, soaring by 72% year-on-year.

This year, the gas firm targeted revenue at VND80 trillion and after-tax profit at VND7 trillion.

Closing the trading session today, December 23, GAS gained steam, ending its four-session falling streak.

Meanwhile, on the HCMC bourse, weak cash flow and selling pressure on many big-cap stocks dragged the VN-Index down 2.27 points, or 0.22%, from the session earlier, at 1,020.34. Over 544 million shares worth VND9 trillion changed hands, down 24% in volume and 29% in value against the previous session.

In the VN30 basket, 16 stocks fell into negative territory, with steelmaker HPG, securities firm SSI and property firm NVL making a sharp drop.

At the close, the HNX-Index of the Hanoi exchange lost 0.49 points, or 0.24%, from the session earlier, at 205.3, with 75 gainers and 72 decliners.

Construction firm CEO plunged to its intraday low and reported a matching volume of 4.4 million shares.

Securities firm SHS ended down, but took the lead by liquidity on bourse with 11.7 million shares changing hands.

Vietnamese retailers advised to boost inventory management

After conducting its 15th annual global shopper study, Zebra Technologies advised Vietnamese retailers to boost inventory management by investing in the omnichannel model and technology to offer better services to customers.

At a press briefing on December 21, Christanto Suryadarma, Southeast Asia sales vice president at Zebra Technologies Asia Pacific, said that retailers should ensure that inventory management is up-to-date and accurate.

Shoppers are looking to execute the omnichannel process, either buying items in a store or online, so retailers should prepare their inventory to respond to both physical and digital purchases, he said.

Echoing the view, George Pepes, APAC vertical solutions lead for retail and healthcare at Zebra Technologies, said that through the recent study, one of the key issues that affect customer satisfaction is out of stock.

“According to the global study, we have seen that a whopping 76% of shoppers leave without the items they intended to purchase, with over 40% blaming it on out-of-stocks. The key understanding for retailers should be that inventory is a basic fundamental of retail. As such, retailers should adopt technology and promote the omnichannel model to ensure that they have real-time inventory visibility across all of their supply chain,” said Pepes.

Zebra Technologies on December 21 released its 15th Annual Global Shopper Study, which was conducted between June and July 2022, collecting feedback from more than 4,000 retail decision-makers, retail associates and shoppers worldwide.

Hue starts work on VND2.3-trillion bridge over Huong River

The Thua Thien-Hue Province People’s Committee held a groundbreaking ceremony on December 23 for the Nguyen Hoang Bridge project, the eighth and largest bridge over the Huong River, according to the local media.

Nguyen Hoang Bridge is part of the overpass project spanning the Huong River and Nguyen Hoang Street, with a total investment of over VND2,280 billion, or nearly US$100 million.

Specifically, the project’s first phase requires an estimated cost of over VND1,855 billion from the State’s and local budgets. The construction time is around three years.

The bridge project spans a total 1.67 kilometers, including a 0.59-kilometer bridge section and a 1.08-kilometer road section on Nguyen Hoang Street.

The bridge over the Huong River is designed to measure 43 meters wide, with six car lanes, two 3.5-meter motorbike lanes, and two three-meter pedestrian lanes.

The design of ​​the bridge over the Huong River originates from the image of a crane flying to Thien Mu Pagoda with many details stemming from the Nguyen Dynasty’s architectural style.

After its completion, the bridge will help complete the traffic network, ease traffic congestion and reduce the traffic load on National Highway 1A and the roads passing through Hue City, according to Nguyen Van Phuong, chairman of the Thua Thien-Hue People’s Committee.

Moreover, it will contribute to the establishment of satellite towns and new urban areas in the west of Hue City, which facilitates the socio-economic development, tourism and service industries, as well as improve the people’s living standards.

Currently, the central province of Thua Thien-Hue has seven bridges spanning the Huong River, namely Truong Tien, Phu Xuan, Da Vien, Bach Ho, Tuan, Cho Dinh and Thao Long.

HCMC sees IIP rebounding strongly in 2022

The index of industrial production (IIP) of HCMC in 2022 is estimated to expand 17.3% over 2021, indicating the city’s economic recovery is on track.

The IPP of four key industries has grown nearly 20%, 2.6 percentage points higher than the overall growth of the industrial production sector.

According to the municipal government, the food and beverage processing industry has posted the strongest increase this year, up 28.2% year-on-year, while its index in 2021  dropped 14.2% compared to 2020.

Specifically, the industry saw a modest growth of 3.2% in the first quarter, but it doubled to 7% in the next quarter and soared to 28.2% by the end of September. The growth momentum is expected to continue and make the index top 30% during the year’s end, facilitated by the comeback of outdoor recreation activities and the reopening of the hospitality industry.

The chemicals, pharmaceuticals, rubber and plastic industries have also expanded 26.5% over last year, while the mechanical and electronic manufacturing industries have picked up 11.3% and 5.8% year-on-year, respectively.

Benefits of free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the EU-Vietnam Free Trade Agreement, coupled with the market diversification strategy, have boosted the production of HCMC-based businesses, thereby accelerating the nation’s recovery from Covid-19 impacts.

Though the industrial production sector has entered the recovery phase and somewhat stabilized business operations, it should prepare for challenges and economic woes next year, said an official of the HCMC Department of Industry and Trade.

New rules simplify import procedure for used high-tech lines

Hi-tech firms, projects applying high technology and projects entitled to special investment incentives pursuant to the Investment Law are subject to a simplified procedure for importing used technological lines.

The above entitlement is provided in Decision 28 of the Prime Minister, which revises Decision 18 relating to importing used machinery, equipment and technological lines.

The new decision, valid from March 1, 2023, supplements regulations on importing used technological lines for related enterprises and projects.

Under Decision 28, the time limit for enterprises to file inspection certificates to the customs department shall not exceed 12 months from the date of importing the first consignment of the technological line for storage purposes, instead of one month as stipulated in Decision 18.

Besides, Decision 28 allows enterprises to extend the inspection certificate submission in case the complicated technological lines require additional installation, operation and inspection time.

During the storage period, businesses can only operate the technological lines for inspection rather than manufacturing purposes.

If technological lines fail to meet the required standards, enterprises will be subject to an administrative penalty from the customs department and required to re-export those technological lines.

Trade surplus increases, agriculture shines

Vietnam enjoyed a trade surplus of nearly 11 billion USD in the first 11 months of 2022, of which the agricultural sector contributed significantly with 7.82 billion USD.

The Ministry of Industry and Trade previously forecast that the balance of trade in 2022 would present a surplus for the seventh consecutive year, with about 1 billion USD. But in fact, the figure jumped to 10.6 billion USD after 11 months, 10 billion USD higher than the same period last year. Export continues to be a bright spot in Vietnam's economic picture in the period.

According to the General Statistics Office, the import-export turnover in January-November hit nearly 674 billion USD, of which 342.2 billion USD came from exports, up 13.4% year-on-year, and the remaining from imports, up 10.1%.

However, the trade balances of the domestic and the FDI sectors are adverse. If the domestic sector had a trade deficit of 27.97 billion USD after 11 months, the FDI sector (including crude oil) recorded a trade surplus of 38.57 billion USD. The FDI sector also contributed 74.4% of the total export turnover.

In the period under review, agro-forestry-fishery exports stood at about 49.04 billion USD, higher than last year’s record of 48.6 billion USD.

The 11-month export rose 11.8% year on year while imports increased 6.9% to some 41.22 billion USD, resulting in a surplus of 7.82 billion USD – up 47.8%.

That made up a total trade of 90.26 billion USD, rising 9.5% year on year, statistics show.

Although orders tend to decrease due to high inflation in many major markets in the year-end, the sector’s export turnover this year is expected to reach 52.5-53 billion USD, nearly 3 billion USD higher than the set target.

Japan looks to expand collaboration with Can Tho in agricutlture

Japan wishes to expand cooperation with the Mekong Delta city of Can Tho in agriculture and human resources.

The information was revealed at a working session between leaders of Can Tho city and a Japanese delegation led by Wantanabe Michitaro, Mayor of Nasushiobara city of Tochigi prefecture on December 23.

Wantanabe told the hosts that Japan had planned to sign a Memorandum of Understanding (MoU) on cooperation with Can Tho in the fields of agriculture and human resources exchange in July 2020. However,  it was delayed due to the outbreak of COVID-19.

As the pandemic is basically under control, Japan wants the two sides to hasten the signing of the MoU, paving the way for trade expansion, especially in agriculture.

Nasushiobara boasts strength in agriculture, with dairy cow and rice being key products. Livestock farming accounts for 70% of the city's agricultural production structure.

For his part, Pham Van Hieu, Chairman of municipal People’s Council, said farming land makes up 80% of Can Tho's total area and hi-tech agriculture is currently one of its strengths.

This year, 172 labourers in the locality were sent to work in Japan, he added.

He hoped that more activities will be conducted by the two cities next year on the occasion of 50th anniversary of Vietnam-Japan diplomatic ties.

Vietnam ranks third among largest mango suppliers to RoK

The nation exported a total of 1,700 tonnes of mangoes worth US$7.4 million to the Republic of Korea (RoK) during the past 11 months of the year, thereby becoming the third largest mango supplier to the RoK market.

According to statistics compiled by the Ministry of Industry and Trade cited from the Korea International Trade Association (KITA), during the reviewed period the RoK imported a total of 22,000 tonnes of mangoes estimated at US$95.3 million, marking a rise of 4.1% in volume and up 8.2% in value compared to the same period from 2021.

In this period the average price of imported mangoes to the RoK stood at US$4,326.2 per tonne, indicating an annual increase of 4%.

Elsewhere, Thailand and Peru made up the two largest mango suppliers to the RoK, accounting for 81.2% of total mango imports to the Northeast Asian country.

Vietnam ranked third among the largest mango suppliers to the RoK, with 1,700 tonnes worth US$7.4 million, up 19.1% in volume and 24.8% in value against 2021.

The average price of imported mangoes from the Vietnamese market to the RoK reached US$4,232.3 per tonne, marking a year-on-year increase of 4.7%. 

Tourism sector forecast to bounce back to pre-pandemic levels

The Vietnamese tourism industry is on the road to recovery back to pre-pandemic levels, with favourable conditions for tourists in terms of destination access, simplified immigration procedures, and extended visa duration, according to Vietnam Report JSC.

Statistics from the General Statistics Office (GSO) show that nearly 597,000 foreigners visited Vietnam in November, up 23.2% month-on-month, bringing the total number of international tourists to the country in the first 11 months of this year to over 2.95 million.

The total figure was 21.1 times more than the same period last year, but down 81.9% compared to 2019 before the COVID-19 pandemic broke out.

During the period, the country served 96.3 million domestic tourist arrivals, higher than the total for 2019.

A survey of travel agents and transport firms conducted by Vietnam Report in October and November 2022 showed that 60% of respondents said the current number of tourists they are serving is below the pre-pandemic levels, but 44.4% expect to meet and exceed the pre-pandemic levels by the second quarter of 2023.

The survey also pointed out three main challenges facing the sector: low quality of human resources, lack of labour supply, and lack of tourism products.

Fixing these limitations requires joint efforts by the Government and localities to promote the development of transport infrastructure, accommodation facilities, amusement parks, and new tourism products, while stepping up promotions of tourism services and products associated with sustainable development and nature conservation.

Vu Dang Vinh, Vietnam Report General Director, said the COVID-19 pandemic has brought the tourism industry back to where it started. The Party and State's achievements in controlling the pandemic along with reopening at the right time have helped the industry recover.

However, the path to return to the miraculous growth of many years ago remains bumpy. The recovery will only be possible when international tourism resumes fully, he stressed.

The Vietnam Report survey shows that policy priorities need to be adjusted. It will also be necessary to restore confidence among tourists; strengthen support for tourism enterprises; promote domestic tourism and assist the safe return of international holidaymakers; provide clear information for tourists and businesses to minimise uncertainties; develop response measures to maintain the sector’s capacity and address resources shortages; and strengthen cooperation within and between countries.

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