Vietnam’s office market will continue to see an uptick in 2023 with quality supplies, according to real estate agency Savills Vietnam.

Many businesses have also called Vietnam a silver lining in economic development in Southeast Asia. Therefore, the office market would remain an attractive investment channel.

In its review on the fourth quarter of 2022, Savills Vietnam said Hanoi’s office leasing segment experienced improvements in terms of both occupancy and prices, which, experts forecast will further grow in the time ahead.

Hoang Nguyet Minh, Commercial Leasing Director of Savills Hanoi, noted that the segment has maintained its attractiveness to investors thanks to its stability, and suggested investors take into consideration office projects.

The agency said the occupancy rose by 1 percentage point quarter on quarter and 7 percentage points year-on-year.

The flow of foreign capital into the Vietnamese office market has pushed up investment costs and rental prices subsequently, which would be seen in Hanoi this year, Minh said.

Meanwhile, the demand is on the rise among IT and production firms, and most recently financial, banking and insurance companies, Savills said, pointing to higher requirements in environmental, social and governance (ESG) criteria.

The agency added that Hanoi expects to have at least seven green office projects by 2025, raising the supply to 276,000 sq.m.

Ho Chi Minh City Export Furniture Fair slated for later this month

The Ho Chi Minh City Export Furniture Fair (HawaExpo) 2023 is scheduled to take place from February 22 to 25, opening a series of trade promotion events in the wood sector this year.

The fair will be organised by the Vietnam Timber and Forest Product Association (VIFOREST) and the wood industry organisations of some localities strong at this sector like Ho Chi Minh City and the provinces of Binh Duong, Dong Nai, and Binh Dinh, Chairman of the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA) Nguyen Quoc Khanh told a press briefing on February 9.

It will be an important event for trade promotion cooperation across the industry and expected to generate fruitful outcomes for trade and investment partnerships, he added.

With about 1,600 booths, HawaExpo 2023 is set to gather major producers and exporters of Vietnam. It has also received nearly 1,000 registrations for visit from partners in traditional export markets including the US and Europe, as well as new ones like the Middle East and India.

Khanh noted aside from displaying and introducing products, the fair will feature business matching events, tours of factories, and specialised workshops to help enterprises and partners stay updated with market information and production capacity to boost ties.

HawaExpo 2023 will also be a demonstration of the wood sector’s resolve to move to higher levels in value chains, the HAWA leader added.

Garment firms prepare workforce to fulfil orders as market recovering

Domestic garment and textile enterprises are racing to recruit more labourers, especially skilled workers, to fulfil their orders of high-quality products, according to the Vietnam Textile and Apparel Association (VITAS).

VITAS Chairman Vu Duc Giang held that motivations for brands to choose Vietnam include programmes on sustainable development, greening, digital management and circular economy in the country, which support the country’s stability and development, as well as the encouragement of domestic garment and textile firms to increase creative products and reduce processing for partners.

Many businesses expect the market will recover in the second or third quarter with orders increasing again, which means they are in need of stable and skilled workforce, he said.

After the long Lunar New Year (Tet) Festival last month, many enterprises have promptly resumed production to complete their orders.

In Garment 10 Corporation, 12,000 workers have returned to work. This year, the firm aims to earn a revenue of 4.5 trillion VND (190.88 million USD). Currently, it is recruiting additional 800 labourers.

Seeing positive signs from markets, right from the beginning of the year, many businesses have mobilised 100% of their employees for production, while recruiting more high-quality human resources to fulfil high-end orders from partners.

According to VITAS, free trade agreements are becoming a motivation for the transition of investment inflow from other countries to Vietnam, helping domestic firms diversify markets and products. Previously, domestic enterprises only supplied a small proportion of products to Muslim countries, but now the rate is much higher thanks to the switching of parts of their orders from Bangladesh and Myanmar to Vietnam, it said.

At the same time, the domestic garment and textile sector is working to reduce imports and increase the localisation of material, which is considered a way for them to reduce dependence on imported materials for production.

Data from the VITAS showed that the localisation of garment and textile has reached about 49%, which is expected to increase to 51-55% in the 2023-2025 period.

Despite difficulties in major markets, the association still forecast that Vietnam’s garment and textile exports will reach 45-47 billion USD this year. It underlined that companies with stable workforce will grow faster when the market recovers in the second quarter.

Xuan Thien Group mulls oil refinery project in Ninh Binh

Xuan Thien Group is seeking approval from local authorities to conduct a survey to develop a petrochemical and refinery complex covering around 2,500 hectares in the northern province of Ninh Binh.

The petrochemical and refinery complex will be developed in three phases from 2025 to 2040, with a capacity of nine million tons of crude oil a year.

If Xuan Thien Group’s proposal gets approved, its survey will be carried out on a 1,500-hectare coastal land area and a 1,000-hectare sea surface in Kim Son District, Ninh Binh Province.

This petrochemical and refinery complex would provide liquefied petroleum gas (LPG), liquefied natural gas (LNG),  and hydrogen fuel for Xuan Thien Group’s green steel complex in Nghia Hung District, Nam Dinh Province and helps meet domestic fuel demand.

The cost of VND300 billion for the survey will be entirely borne by Xuan Thien Group.

Currently, Vietnam has two major refineries, namely Nghi Son in Thanh Hoa Province and Dung Quat in Quang Ngai Province. Their total fuel output can satisfy 60% of domestic demand.

The third refinery, Long Son, is under construction.

China issues 435 codes for Vietnamese agricultural product exporters

The General Administration of Customs of China has granted 435 codes for Vietnamese agricultural product exporters so far this year.

According to Vietnam’s Ministry of Agriculture and Rural Development, communication activities have been intensified to increase agricultural product exporters' awareness about China’s requirements regarding import licences and food safety and promote exports of agricultural products from Vietnam to China.

On average, the northern border province of Lao Cai sees more than 500 trucks carrying Vietnamese agricultural products to China daily while Lang Son province sees more than 800 trucks.

Vietnam’s agriculture ministry granted over 2,000 production unit codes and 1,438 packing house codes for products to be exported to China.

Enterprises are urged to strengthen hi-tech applications in production, processing, and storage as well as improve market understanding and pay more attention to branding development and protection.

Bac Giang’s train station to offer int’l freight transportation services
     
Kep train station in the northern province of Bac Giang will offer international freight transportation services from February 20, as it meets all necessary conditions, according to the Vietnam Railways Corporation (VNR).

Specifically, the station will organise a fleet of trains running from Kep to Dong Dang Station in the border province of Lang Son and then to China’s Pingxiang station.

The Kep Station’s load and unload capacity is from 80 to 100 carriages or containers per day. Freight includes electronics and industrial products, construction materials, industrial wood and raw ore.

A bonded warehouse is expected to be built at the station to serve the import and export activities of enterprises in Bac Giang and Bac Ninh provinces and neighbouring localities. It specialises in receiving refrigerated containers transported from the South which will then be exported to China.

Currently, VNR is managing international freight terminals, namely Lao Cai, Yen Vien, Hai Phong, Dong Dang, Giap Bat and Song Than.

Higher steel prices cause contractors to face losses
     
The selling prices of steel products have increased since the beginning of 2023, increasing the risk of losses for construction contractors.

After a long period of remaining unchanged, the selling prices of construction steel products on the domestic market have increased four times since the beginning of 2023, especially on two consecutive days on January 30 and 31.

On February 8, a number of domestic steel brands increased prices by VND300,000 to VND400,000 per tonne.

Prices surged by VND310,000 per tonne for Hoa Phat steel products in the North to VND15.76 million-VND15.84 million (US$656 - $660) depending on the kinds of products.

Meanwhile, the same products of other brands such as Viet Duc steel, Kyoei, Pomina and VAS also rose by VND300,000-VND310,000 per tonne.

With the current strong increase, many construction enterprises are struggling to renegotiate and re-sign contracts with investors.

With two projects under construction in Dong Da District, Ha Noi, Tran Van Hoa, director of Hoa Thanh Building Investment and Construction Co, Ltd, said: "The sharp increase in steel prices affects our construction cost. The work is still under construction, forcing us to renegotiate with the investor. If the negotiation is not successful, the construction enterprise will likely face losses."

A signed civil construction contract do not include inflation in material prices, so it is difficult to renegotiate, he said.

The construction cost includes materials accounting for 60-70 per cent (building materials such as steel, iron, sand, cement, and stone), labour accounting for 20 per cent, and others, 10 per cent. With the steel price increasing, it is possible that costs rise by at least 10 per cent or more.

Some construction enterprises said that to remove those difficulties, the State management agencies should have solutions to adjust the payment mechanism for building materials of which prices normally see an increase of more than 10 per cent in all types of contracts, and the regional labour coefficient must go with the changes of the current labour market.

There must be solutions to stabilise the price of input materials in the construction industry, Hoa said.

Architect Ngo Tam from the Covic Construction and Investment Consulting Joint Stock Company said that while construction demand decreases, the costs of materials continue rising according to global prices. That situation puts pressure on civil construction enterprises and public investment projects.

Therefore, he said that the Government needs to stabilise the price of input materials in a timely manner.

If the price of input materials increases too quickly, large construction enterprises will not want to sign contracts for domestic projects and shift to receive foreign-invested projects to make a profit. Small and medium-sized enterprises have a small amount of capital, so they gradually compensate for the loss and then dissolve, said Tam.

According to experts, the Government removing difficulties for the real estate sector along with increasing the total medium-term public investment in the 2021-25 period to nearly VND2.9 quadrillion, focusing on developing the transport infrastructure system, will cause the demand for construction materials to increase sharply, leading to the price changes until the third quarter of 2023.

The prices of steel products may cool down in the fourth quarter because at that moment, the steel enterprises will have almost completed the year's plan and adjust the production plan for 2024.

Demand for dryers and dehumidifiers surges in Hanoi as spring begins
     
The market for clothes dryers and dehumidifiers has seen a surge in demand in recent days, as the rainy spring season in Ha Noi has led to an increase in humidity levels.

According to Dinh Van Hoan, director of Media Mart Thanh Xuan, the demand for these products has sharply risen, with the supermarket's averaging sales of 20-25 units per day.

As the rainy and humid weather is expected to continue through the end of the month, it is predicted that demand for dryers and dehumidifiers will remain strong.

According to the director, the supermarket has imported products of various brands at different price levels to meet consumer needs.

Sharing the same view, a representative of HC electronics supermarket said that the number of dehumidifiers sold in the past few days was higher than in previous months.

At the Pico electronics supermarket on Nguyen Trai Street, Thanh Xuan District, there are many lines of dehumidifiers priced from VND4 million (US$170) to VND10 million.

Besides the mid-range product line, in the higher-end segment, dehumidifying products have integrated features such as air purification and ion generation.

In addition, the line of specialised, large-capacity dryers that can dry from 8-12 kilogramme of clothes with prices from VND8-15 million for a product is also sought after by many people.

Clothes drying equipment is also experiencing a boost in sales.

With limited financial resources, families often choose cloth dryers priced from VND800,000 to VND2 million per product.

To stimulate consumer demand, electronics supermarkets such as Media Mart, Nguyen Kim, Pico, and Eco Mart constantly offer promotions and discounts on dehumidifiers, dryers and clothes dryers.

In addition to reducing the selling price, electronics supermarkets simultaneously implemented the programme of free shipping, free installation, and 0 per cent interest purchases. 

Vietnamese fruits promoted at Berlin expo
     
Vietnamese fruits have been introduced at the Fruit Logistica 2023, the world's largest fruit and vegetable exhibition in the world, which is underway in Berlin from February 8-10.

The Vietnamese booth at the exhibition, jointly organised by the Ministry of Industry and Trade (MoIT) Trade Promotion Agency, the Vietnam Trade Office in Berlin and the Vietnam Fruit Association (Vinafruit), attracted a large number of visitors on the first day of the event. This is the third year that Viet Nam has taken part in the exhibition.

On February 8, a trade exchange was held between the Vietnamese enterprises with members of Germany’s Federal Association of Medium-Sized Enterprises BVMW, German firms and Vietnamese companies in Germany, the Netherlands and Spain.

At the event, the Vinafruit and BVMW signed a memorandum of understanding on supporting businesses of both sides to strengthen cooperation in fruit export and distribution in the German market.

Highlighting the increasing competitiveness of Vietnamese products’ competitiveness, Vietnamese Ambassador to Germany Vu Quang Minh said he hopes the firms will optimise preferential tax rates from free trade agreements to boost exports of fruits and vegetables in the promising German market.

He pledged that the Vietnamese Embassy and the Vietnam Trade Office will give best support to Vietnamese firms in connecting with their peers in Germany to strengthen exports to Germany and the EU in general, thus optimising the EU-Viet Nam Free Trade Agreement (EVFTA).

Meanwhile, Vinafruit Chairman Nguyen Thanh Binh said that the exhibition is a great chance for Vietnamese firms to expand their market.

Data from the MoIT showed that after the EVFTA took effect, Viet Nam’s exports of fruits to Europe has risen 25-30 per cent.

Tran Van Cong, Vietnamese Trade Councillor in Germany, said that the EU has been an important and promising market with annual consumption of over US$110 billion worth of goods. However, Viet Nam’s fruit export revenue from the market is still modest at over $200 million, accounting for only 0.02 per cent of the EU’s spending on the product.

Underlining that the EVFTA, which brings import tax of Vietnamese fruits to 0 per cent, is offering great opportunities for Viet Nam in the EU, he noted that last year, exports of fruits to the EU rose nearly 14 per cent.

Cong advised domestic firms to focus on developing farming areas as well as preservation stage, ensuring that Vietnamese products are origin traceable, meeting requirements of the EU. 

SBV works to mitigate potential risks for non-banking credit institutions
     
The State Bank of Viet Nam (SBV) is collecting comments on its draft circular to minimise potential risks for non-banking credit institutions and ensure they work in accordance with international standards.

The draft circular stipulates the internal control system of non-banking credit institutions, which include financial companies, financial leasing companies and other non-banking credit institutions.

According to the SBV, the operation of non-banking credit institutions is simpler than that of commercial banks and foreign bank branches. Under the current legal regulations, the institutions are not allowed to receive deposits from individuals, but only from organisations; as well as not being permitted to provide payment means and payment services like commercial banks and foreign bank branches, but their operations still pose risks.

Therefore, the establishment of a risk management system according to Basel standards can be considered a solution to minimise potential risks that may occur during the operation of non-banking credit institutions, the SBV said, adding that the change is also consistent with the current trend of corporate governance in general.

The draft circular stipulates the internal control system must have three independent protection lines.

The first line has the function of identifying, controlling and mitigating risks. Banks’ divisions related to sales, risk control, accounting and human resources will take responsibility for the line.

The second line has the function of developing risk management policies and internal regulations on risk management. It also takes the responsibility for measuring and monitoring risks.

The third line has the function of internal auditing, which will be performed by the banks’ internal audit division in accordance with the Law on Credit Institutions and this circular.

According to the SBV, the draft circular is also consistent with the regulations in Basel which also has the similar three-line protection model.

Besides, the new regulations in the draft circular are dispensable as the Law on Credit Institutions has also amended and supplemented regulations that credit institutions must issue internal regulations to ensure risk management, the SBV said.

Market to go backwards amid cautious cash flow
     
Given the signal that capital flow is still cautious, brokerages warned that the market might retreat to the VN-Index support level of 1,050 points and require additional investigation time before it can achieve equilibrium.

The market entered the week's final session in a cautious position due to the weakening trend from the end of the previous session. Exploration takes place for most of the trading session. However, supply pressure continued at the end of the session, particularly in some large-cap names.

The VN-Index closed at 1,055.3 points after losing 0.82 per cent. With 463.9 million shares matched on HOSE, liquidity somewhat improved.

According to Mirae Asset Securities (Vietnam), since the end of 2022, in the face of inflation and exchange rate pressure, banks have had no choice but to increase deposit rates to improve liquidity.

With better macro stability compared to 2022, the market in the first months of the year is expected to continue to attract capital inflows. However, Mirae Asset Securities (Vietnam) is seeing many fundamental changes, so investors must be more cautious now.

After the previous strong rally, profit-taking actions is now putting pressure on the general market, especially in large-cap stocks. Moreover, the unsatisfactory fourth-quarter business results will soon push down market valuation.

Therefore, investors should be more selective, paying close attention to assess the intrinsic value, growth prospects and asset quality of each individual stock before making an investment decision.

According to Saigon-Hanoi Securities Co (SHS), the VN-Index is about to reach the support level of 1,050 points and is in danger of returning to the downtrend state. Under technical analysis, the correction process is inevitable after a strong recovery period.

SHS expects the market, after the current correction, will continue to make efforts to recover and find the balance area for medium-term accumulation.

With a medium- and long-term perspective, the market cannot create an uptrend in the near future. The VN-Index needs another balancing and accumulating phase before the next uptrend period. 

Construction rock businesses to benefit from 2023 public investment
     
Thanks to the VND700 trillion (US$29.7 billion) public investment disbursement plan in 2023, demand for construction rock for big public investment projects is expected to boost profits for the industry’s enterprises.

Experts expect investment demand to increase thanks to this year’s public investment projects, boosting the growth of construction and building materials businesses, including construction rock, in the future.

According to the public investment disbursement plan in 2023, more than VND700 trillion will be invested in many key projects, including the North-South expressway, various ring road projects in Ha Noi and HCM City, and Long Thanh airport.

The Ministry of Transport said that the demand for construction rock in 2023-2025 will be approximately 21.5 million cu.m. Specifically, the Long Thanh airport, Bien Hoa – Vung Tau highway, and Ring Road No. 3 are expected to use 2.04 million cu.m, 738,000 cu.m, and 5.2 million cu.m of construction rock, respectively.

Agribank Securities Corporation (Agriseco) said that the construction materials businesses will benefit directly after projects finish the site clearance phase and enter project implementation.

For construction stone enterprises, transportation costs have a great impact on the firms' ability to sell their products. Those with a large market share and located near ongoing projects will benefit more than the rest of the industry.

Since most construction rock quarries are located across the country, transportation costs are a major factor affecting the cost. Most construction contractors will choose quarries near their projects.

However, the supply of construction rock is still limited as the new construction rock quarry planning for the 2021-25 period has not been completed, especially for provinces and cities that are centres of construction rock exploitation in the south, including Binh Duong and Dong Nai provinces. In addition, compensation for land in the quarry areas has inched higher, causing an imbalance in the market as supply does not meet demand.

According to the analysis of SSI Securities Corporation (SSI), Tan Cang construction rock quarry is the main source of supply for Long Thanh airport, Ring Road No.3, and other projects. With nine quarries in the Tan Cang area, SSI estimates that demand at Tan Cang's quarries will increase by 28 per cent over the same period last year.

Construction rock prices are expected to advance by 8 per cent year-on-year, offsetting the rise in fuel costs and environmental protection costs for mining.

Due to high mining and loading soil layer costs, the gross profit margin at Tan Cang mines is maintained in the range of 28-30 per cent, lower than the average at other quarries such as Tan Dong Hiep and Thanh Phu of 45 per cent and 32 per cent, respectively.

For Thanh Phu construction quarries, the main source of supply for projects in the southwest region with nine quarries, SSI also estimates that demand at the quarries will rise by 15-16 per cent year-on-year thanks to projects such as the Can Tho-Hau Giang and Hau Giang-Ca Mau expressways.

Construction rock prices are expected to increase by 7 per cent over the same period.

Analysts believe that these factors will boost the profits of listed construction rock companies in 2023. Particularly, SSI forecasts that the profits of listed companies will jump by 16 per cent over last year. Rock output is expected to rise by 15 per cent on average in 2023, while selling prices are expected to rise by 7-8 per cent, the securities firm said.

However, SSI also pointed out the risks that enterprises in the industry are likely to face in the future, including the prolonged licensing of new mines, and expected-rising receivables for construction rock companies when construction projects are not on schedule.

Moreover, environmental protection costs are expected to increase in 2023. According to the decree on environmental protection costs for mineral exploitation, the cost may be higher this year, resulting in a surge of 50 per cent in the cost of construction rock firms. SSI estimates a 0.8 per cent drop in gross margin due to the higher fee. 

Nearly $1.4 billion worth of G-bonds raised in January
     
The State Treasury raised VND32.8 trillion (US$1.39 billion) worth of Government bonds, or 96.56 per cent of the total G-bonds on offer, via eight auctions on the Ha Noi Stock Exchange (HNX) during January.

The figure was equivalent to 30.4 per cent of the first-quarter issuance plan and 8.21 per cent of the annual target.

Of which, 49.74 per cent were 10-year bonds while the remainder were 15-year bonds, with respective interest rates of 4.36 per cent and 4.56 per cent. The rates are down 29 and 24 basis points from the previous auction.

On the secondary market, the trading value of G-bonds during the month reached over VND65.79 trillion, down 9.48 per cent month-on-month, with outright transaction value accounting for 53.74 per cent. The rest was traded via repurchase agreements. 

Car prices fall sharply in the first months of the year
     
A number of large manufacturers slashed car prices early this year, signaling fierce competition in the Vietnamese auto market.

Sales agents are offering attractive preferences such as paying 100 per cent of the registration fee and also giving extra packages of accessories to attract people who want to buy cars.

Many Hyundai sales agents in HCM City are offering a price discount from VND20 million to VND103 million (US$855- 4,400) for popular Hyundai models such as Grand i10, Accent, Elantra, Tucson, Stargazer and Santa Fe.

Meanwhile, Honda Viet Nam has just announced to pay 100 per cent of the registration fee for customers buying Honda CR-V and Honda City cars from February 4 to 28.

In addition, the company's dealers are also offering car body insurance and dozens of accessories for car buyers.

Many other car manufacturers such as Mazda, Mitsubishi, Kia, Subaru, Nissan, and Suzuki are also launching discount programs for many models from several tens of millions of dong as well as offering to pay 50 to 100 per cent of registration fees.

According to car dealers in the City, the reason why car prices are falling is due to weak consumption in the first months of the year while the inventory of cars is quite large, forcing dealers to reduce prices in order to reduce inventory and then import new car models. 

Finance Ministry proposes continuing tax deferral policy for enterprises

The Ministry of Finance (MOF) is finalising and collecting feedback for a draft decree on deferring the payments of value-added tax (VAT), corporate income tax, personal income tax and land rent in 2023.

With continuous strong growth in recent years, processed fruits and vegetables have officially entered the one-billion-USD export club.

According to the General Department of Vietnam Customs, in 2022, although the export of vegetables and fruits reported a year-on-year decrease, that of processed products continued to grow well, with an increase of 9.8% to reach 1.014 billion USD, marking the first time it has surpassed the 1-billion-USD mark.

The Import-Export Department under the Ministry of Industry and Trade also noted that last year, the structure of Vietnam's exported vegetables and fruits had positive changes as the proportion of processed products rose by 3.8 percentage points compared to 2021, accounting for 29.47%.

Processed passion fruit products led in terms of the export value and recorded an impressive growth rate in 2022, up 78% to 135 million USD.

Experts said that there remain many opportunities to expand the market share of Vietnamese processed vegetables in the European Union (EU) in particular and over the globe in general in the coming time.

However, the large processed fruit and vegetable consumption markets such as the EU and the US are applying very strict standards with regulations on technical barriers, and residues of pesticides and banned substances.

Therefore, in order to gain a firm foothold in these markets, production that ensures strict food safety standards is a mandatory requirement for Vietnamese fruit and vegetable processing enterprises.

Finance Ministry proposes continuing tax deferral policy for enterprises 

The proposals come as the global economy is expected to continue facing many risks and challenges that can affect a highly open Vietnamese economy.

Accordingly, the MOF proposed extending the VAT tax payment in January-May 2023 by six months and VAT in June by five months. The amount of tax to be deferred is estimated at 64-65 trillion VND (2.7 billion USD).

For corporate income tax in the first and second quarters of 2023, the extension is three months. The deferred corporate income tax is estimated at 42.8-43.6 trillion VND (1.8 billion USD).

The MOF also proposed cutting the land and water surface rent in 2023 by 30% for enterprises, households and individuals.

Earlier the National Assembly Standing Committee issued a resolution on continuing to reduce environmental protection tax on oil and petrol to support enterprises and people, helping to stabilise the macroeconomy and keep inflation in check.

Vietnam in Italian groups' strategic priority list

Vietnamese Ambassador to Italy Duong Hai Hung has held working sessions with leaders of credit group CDP, Simest credit institution of CDP, credit and insurance group SACE and the General Confederation of Italian Industry (Confindustria) of Italy as part of the embassy's economic diplomacy activities of in 2023.

According to Pasquale Salzano - President of Simest, General Director in charge of European and international affairs of CDP Group, Vietnam is in the strategic priority list of Simest.

Simest has completed the building of a platform connecting Italian small-and medium-sized enterprises with Vietnam, which is expected to be launhed this year, he said.

Ale Alessandra Ricci - CEO of SACE also stressed that Vietnam is a target country in this group's strategic list.

SACE will focus on implementing many activities in Vietnam in the near future, including establishing a temporary office, she said.

SACE has developed a promotion and guarantee strategy so that selected Vietnamese businesses can access preferential loans from banks with no strings attached, she added.

Vietnamese businesses guaranteed by SACE are operating in the fields of food and beverage, energy and mechanical engineering, with a total guaranteed capital of up to 1.3 billion EUR (over 1.39 billion USD).

Additionally, SACE has strengthened market connection activities for businesses, Ricci noted.

Meanwhile, Barbara Beltrame Giacomello, Vice President for International Affairs of Confindustria said that more and more Italian businesses are interested in the Vietnamese market, so Confindustria will consider the Vietnamese market as its focus in Asia.

At the meeting, Ambassador Hung expressed his delight at the priority of Italian firms and organisations for Vietnam in their operational plans in the world, especially in Asia.

The diplomat highlighted the friendship between the two countries, Vietnam’s strong economic growth and its and advantages in the region, as well as the mutual complementarity of the two economies, saying that the embassy supports plans and projects to promote cooperation between Italian businesses with Vietnam.

He took the occasion to share priority areas of economic cooperation that Vietnam want to strengthen with Italy.

The ambassador suggested Italian agencies and organisations further strengthen coordination with the embassy to expand connection between organisations, businesses and localities of Vietnam and Italy, thus contributing to further promoting the bilateral economic, trade and investment cooperation.

Petrol prices record slight decrease

Petrol prices are likely to see a mild drop in the latest adjustment on February 11, according to a representative of a leading petroleum trading enterprise.

The representative stated that global oil prices have recently fluctuated erratically, with a decline in prices emerging as the dominant trend.

Moving forward, it is forecast that if the world’s oil prices continue with the current trend, then the retail prices of gasoline in the country will be duly adjusted down. However, this reduction is not expected to amount to much and will largely depend on the operation of the petrol price stabilisation fund.

As predicted, the retail price of petrol will fall by VND200 to VND400, while oil prices will go down by VND1,000 per litre.

According to Oilprice’s statistics, the price of Brent oil on the morning of February 11 stood at US$86.28 per barrel, up US$1.78, equivalent to 2.11% compared to the previous trading session. Meanwhile, the WTI price soared to US$79.64 per barrel, up US$1.58, equivalent to 2.02% compared to the previous trading session.

Singaporean fuel prices updated by the Ministry of Industry and Trade (MoIT) as of February 8 showed that the petrol price was US$98.6 to US$101.4 per barrel, with diesel being traded at around US$106.5 per barrel. The prices are almost equivalent to the average price of petroleum products internationally during the January 11 to January 30 period.

In the latest adjustment made on January 30, the MoIT and the Ministry of Finance moved to revise up petrol prices.

Accordingly, the retail price of RON 95 went up by VND990 per litre to VND23,140, equal to US$0.91.

Elsewhere, the price of E5 RON 92 rose by VND970 per litre to VND22,320, while diesel prices increased by VND890 per litre to reach VND22,520.

Vietnamese auto imports record sharp increase in January

The nation spent more than US$314 million on importing 14,500 completely built-up (CBU) cars of all kinds in January, marking a steep rise of 219% in volume and nearly 150% in value on-year, according to statistics from the General Department of Vietnam Customs.

Most notably, Thailand regained its position from Indonesia to become Vietnam’s largest car exporter, with the number of autos imported from Thailand amounting to roughly 6,700 worth US$125.5 million.

Indonesia came second with nearly 6,200 cars valued at US$89.7 million being shipped to Vietnam in the first month of the year, followed by the United States with 432 cars, and China with 328 cars.

The number of cars imported from these four major markets accounted for 94.3% of the country’s total car imports in January.

Despite the increasing number of imported cars, the Vietnam Automobile Manufacturers' Association (VAMA) said that January sales for the whole market reached just over 17,300 vehicles, a decline of 51% compared to December, 2022.

Of the figure, the sales of domestically assembled cars reached 8,000 units, down 54%, whilst the sales of imported complete units stood at more than 9,200 vehicles, down 48%.

In 2022, the figures of domestically assembled and imported vehicles were 8,000 and 9,200, down 54% and 48%, respectively.

January payment transactions via national public service portal valued at 11.8 mln USD

Over 644,000 payment transactions with a total value of more than 279 billion VND (over 11.8 million USD) were processed through the National Public Service Portal in January, according to the Ministry of Information and Communications.

Over 338,000 accounts were registered, while over 7.2 million records were synchronised with the portal in the month.

Since its debut in December 2019, the portal provided 4,377 public services online with over 4.3 million registered accounts.

The portal has so far attracted over 1.1 billion visits, and processed over 8.5 million records online and over 4.6 million online payment transactions worth over 3.8 trillion VND.

To improve the business environment and national competitiveness in 2023, the Government has requested the ministries, sectors and localities to soon complete national databases and effectively implement the project on developing the application of population database, e-identification, and e-authentication for national digital transformation in the 2022-2025 period, with a vision to 2030.

The national public service portal provides 14 groups of online payment services, with eight for people and the rest for businesses.

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