Category: Business

The northern province of Phu Tho has risen to the third position among the northern midland and mountainous localities in economic growth speed, heard a recent meeting of the provincial Party Committee’s Standing Board to review the province’s socio-economic performance in the first half of the year and sketch out plan for the rest of 2023.

According to the provincial People’s Committee, despite difficulties in the domestic and international situation, in the first six months of this year, Phu Tho still posted high economic growth at 7.22%, ranking third among the 14 localities in the region and 16th out of the 63 cities and provinces nationwide.

In the first six months of this year, its industry sector expanded 10.11%, entering the top 10 localities of the nation in the field.

In the period, the locality completed 12 out of the 16 targets and exceeded the budget estimate assigned by the provincial People’s Council. The majority of public invested projects have been implemented with good progress, with the distribution level of public investment higher than the country’s average.

The provincial People’s Committee attributed the results to the province’s efforts to make breakthroughs in improving the local business environment right from the beginning of the year.

In the first half of the year, the locality saw 102 new and expanded projects. It has completed dossiers on the province’s master planning for the 2021-2030 period with a vision to 2050 to submit to the Prime Minister, while finalising dossiers on planning of Viet Tri city.

Alongside, the province has received 4.5 trillion VND (191.24 million USD) of State budget and allocated 4.22 trillion VND, or 93.7% of the plan, to 342 projects.

As of May 31, the disbursement rate of public investment capital was estimated at 37% of the assigned plan, higher than the national average.

Meanwhile, socio-cultural activities have been strengthened, and the administrative reform sped up and social security and order ensured.

Bui Minh Chau, Secretary of the provincial Party Committee, said that 2023 is an important year in the implementation of Phu Tho’s socio-economic development plan in the 2021-2025 period. In the time to come, Phu Tho will focus on improving the local investment and business environment and mobilising resources for development.

At the same time, it will review all the projects with investment policy approved by the provincial Party Committee’s Standing Board, evaluating their feasibility and making suitable adjustments, he said.

The provincial leader underlined that Phu Tho will roll out measures to remove difficulties facing businesses and investors, prioritising domestic and local businesses.

Regarding land management activities, Chau asked the provincial Department of Natural Resources and Environment to review all activities of land allocation, land auction, and land use right conversion in the province over the years, ensuring that they are implemented in compliance with regulations, and resolutely handling violations if there is any.

Alongside, the locality will review the real estate facilities that have been handed over from the separation and merger of local administrative units. In the field of security and defence, the provincial leader requested local police to stay close to local residents and maintain control over the situation, thus settling all arising problems in a timely manner.

With these solutions, Phu Tho is striving to maintain an economic growth rate of at least 7.5% and per capita GRDP of 63 million VND, along with total social investment capital of 43.5 trillion VND. The locality also aims for a total state budget collection of 6.1 trillion VND. The province expects an urbanisation rate of at least 19.6%, together with 71% in the rate of trained and vocational workers. Phu Tho will also work to reduce the rate of poor households by 0.5%./.

Source: Vietnam News Agency

The period of strong volatility of the US dollar has ended, and the USD/VND exchange rate in the last six months of 2023 will remain stable, experts have forecast.

According to experts of Yuanta Vietnam Securities Company, the USD/VND exchange rate from the beginning of 2023 fluctuated around a range of +/- 1.9% at 23,240 – 23,630 VND per dollar, much more stable than in 2022 when the rate sometimes peaked at 24,692 VND per dollar, up 4.2% against the State Bank of Vietnam (SBV)’s reference exchange rate.

As of the beginning of June, the USD/VND exchange rate decreased by about 0.52% compared to the start of 2023 thanks to the abundant supply of foreign currency from the trade balance surplus, disbursed FDI inflows, international tourism recovery and the weakening of the dollar.

According to the experts, there are a number of factors that positively support the exchange rate in the second half of this year.

First, Vietnam’s foreign exchange reserves have grown again. After strong fluctuations in the monetary market in 2022, the nation’s foreign exchange reserves at the end of 2022 reached about 90 billion USD. In the first five months of 2023, the SBV bought about 6 billion USD to add to foreign reserves.

Second, the country’s trade balance recorded a surplus in the first five months of this year. Although import-export turnover in the first five months of 2023 was low, the trade balance maintained a trade surplus of 9.8 billion USD, a sharp increase compared to 2021 and 2022.

Third, Vietnam’s tourism industry is recovering. After three years of being affected by the COVID-19 pandemic, the number of tourists to Vietnam in the first five months of 2023 rose 13 times compared to the same period in 2022 and equivalent to 63% compared to before the pandemic in 2019.

International tourists will recover faster in the near future, especially from China in the summer and early fourth quarter of 2023. This will also be a significant source of foreign currency for the country.

Fourth, FDI has shown more positive signals. Although accumulated FDI in the first five months of 2023 decreased slightly compared to the same period last year, the data in April and May 2023 showed more positive signals thanks to the gradually improving macro factors. Though more observations are needed, Yuanta holds a positive view on FDI inflows in the medium and long term, adding this is also a significant supporting factor for the dollar flowing into Vi?t Nam.

Fifth, the US Federal Reserve (Fed) may soon stop raising interest rates. Yuanta said though it is likely that the Fed will raise interest rates at least one more time this year, the tightening of interest rates has been loosened more and the period when the dollar was anchored at a high level as 2022 ended.

Sixth, Vietnam’s remittances are expected to continue to increase. In addition to the amount of remittances sent back to relatives that remains stable, Yuanta’s analysts expect the amount of remittances sent to invest in Vietnam will increase more when the domestic economy recovers, deposit interest rates remain at an attractive level and real estate is at low prices, while the economies in the EU and the US are recovering more slowly than in Vietnam.

With the above factors, Yuanta believes the period of strong exchange rate fluctuations in the second half of 2022 has ended and the exchange rate in the last six months of 2023 will continue to be stable and fluctuate in a range of +/- 3%, below the SBV’s prescribed range of +/- 5%.

However, Yuanta noted, a number of other factors that may put pressure on the exchange rate should be monitored, such as high inflation in developed countries, the reopening of China and the Fed’s longer-than-expected interest rate hike.

Sharing the same view, finance expert Dr. Can Van Luc said as the dollar devaluates and the US economy is forecast to have lower growth, it is likely that the Fed will not continue to raise interest rates until the end of this year, and other currencies, including the Vietnamese Dong, will appreciate again.

Luc predicted the USD/VND exchange rate for the whole of 2023 will be stable. /.

Source: Vietnam News Agency

procedures posted the highest score among nine groups of key administrative procedures rated by Tax the report Administrative Procedure Cost Index 2022 (APCI 2022).

This reflected the unremitting efforts of tax management authorities to maintain the achieved achievements and continue to strongly reform administrative procedures to make it easier for businesses and people in performing tax administrative procedures.

Prepared by the Government’s Advisory Council for Administrative Procedure Reform with the support of the US Agency for International Development through the technical assistance project Linkages for Small & Medium Enterprises (USAID LinkSME), the survey shows the rate of filing and receiving online results of tax administrative procedures is at an absolute level.

In 2021 and the first months of 2022, the tax sector cut the number of administrative procedures to 234 from 304.

In addition, the General Department of Taxation has expanded channels to receive and process support requests of the people via Hotline, email, website, Chatbot, and Zalo; as well as built an automatic question-and-answer system on electronic invoices based on artificial intelligence (AI) technology to support taxpayers.

The report recommends the tax industry to continue improving and upgrading the online tax declaration and payment system on the General Department of Taxation’s portal; completing the application of e-invoices nationwide and improving the quality of law-making in the taxation field./.

Source: Vietnam News Agency

The national government is open to striking joint ventures with the country’s richest Filipinos once the Maharlika Investment Fund (MIF) becomes operational. ‘We’re hopeful. Iyon pong mga conglomerates natin, we can also do some joint ventures, co-investments sa mga infrastructure projects (We can also do some joint ventures with our conglomerates, co-investments in infrastructure projects),’ National Treasurer Rosalia de Leon said in a news forum on Saturday. De Leon, however, assured that the soon-to-be-formed Maharlika Investment Corp. (MIC) would properly evaluate each investment. President Ferdinand R. Marcos Jr. said Thursday that Malacañang would scrutinize the revisions in the MIF bill but promised to sign the measure as soon as he gets it. De Leon said the MIC board of directors would craft investment and risk management strategies where the public could see the possible returns of the projects. ‘Dadaan din po iyan sa very rigorous screening process – ano iyong mga magiging return ng mga projects na iyon, ano bang mga risk. Mayroon ding risk mitigating measures na ia-identify to ensure na mamu-monitor very well and at the same time, adjust all those risks (It will go through a very rigorous screening process – what will be the returns and risks. There are also risk mitigating measures that would be identified to ensure that we can monitor and at the same time adjust all those risks),’ she said. De Leon assured that all projects would go through a procurement process and that the only exemption is on the technical aspect or soliciting technical advice. She, however, said there is no information yet as to what percentage of the proposed sovereign wealth fund would be allocated to infrastructure projects. The Marcos administration has at least 194 flagship infrastructure projects amounting to PHP9 trillion. ‘Dadaan pa rin po tayo sa procurement process. So, doon pa lang po ay makikita natin na talagang marami pong mga pagsusuri at pag-i-evaluate para po iyong pong mga projects, mga investment na papasukin ni Maharlika is already complying – is within the investment strategy po na in-approve po ng board (It will still pass through a procurement process. So, with that alone, we can see that it will be assessed thoroughly and that the investment we will venture into complies with the investment strategy that would be approved by the board),’ she added. To allay fears, she reiterated that social security institutions, such as the GSIS, SSS, Pag-IBIG, and PhilHealth are prohibited from investing in the MIF and the corporation. In addition, no funding for social development projects, such as services, health care, and education would be tapped in the MIF. ‘(D)oon sa Senado, na-emphasize din na iyon pong MIF will really be investing iyong mga sustainable endeavors. So, marami pong improvements na nailagay po doon sa legislation from the Senate version (At the Senate, they emphasized that the MIF will be investing in sustainable endeavors. There are a lot of improvements made in the Senate version),’ de Leon said. ‘(M)ayroon pong iha-hire na external auditor to look also into the operations at financial performance ng MIF plus magri-report sa oversight committee (An external auditor would be hired to also look into the operations and financial performance of the MIF).’ Seven members each from the Senate and House of Representatives would be assigned to the Joint Oversight Committee to monitor the viability and the financial performance of the MIC and the MIF, she said.

Source: Philippines News Agency

The Specialty Coffee Association’s “World of Coffee” (WOC) exhibition is an annual event that gathers coffee industry professionals from around the world.

This highly anticipated event provides a platform for producers, traders, importers, roasters, retailers, and coffee enthusiasts to connect, learn, and showcase their products.

In 2023, WOC is taking place from Jun 22-24 in Athens, Greece. It presents a unique opportunity for Lao coffee producers to gain exposure in the European market.

Lao coffee has been gaining recognition as a specialty coffee origin in recent years. The unique geographical conditions and traditional farming practices in the Lao PDR contribute to the production of high-quality coffee beans with distinct flavors and profiles.

WOC Athens provides Lao coffee producers with a platform to showcase their specialty coffee to a diverse audience of industry professionals and coffee enthusiasts.

Lao Coffee Companies Attending the World of Coffee Athens 2023

Five prominent Lao coffee companies will be attending WOC exhibition in Athens: Comma Coffee, Meuang Xieng Coffee, Nambeng Coffee Group, Phouphieng Paksong, and Vanmai Coffee.

These companies were selected to participate based on their involvement in the Lao Annual Green Coffee Competition, which took place earlier in March 2023. The ARISE Plus, the UK Trade Partnerships and Winrock CLEAN projects are collaborating to support their participation in the exhibition to promote the Lao coffee industry as a whole and the individual businesses exhibiting.

Showcasing Lao Specialty Coffee

WOC is Europe’s biggest coffee event. It provides Lao coffee companies with a unique opportunity to showcase their specialty coffee to a diverse range of industry professionals and coffee enthusiasts from around the world. By participating in this event, Lao coffee producers can gain valuable market exposure and insights into the European specialty coffee industry.

Building Connections with Buyers and Importers

WOC Athens 2023 will host over 300 exhibitors and attract more than 10,000 attendees from across 80 nations worldwide.

The key benefit of partaking in this exhibition is the chance to engage with potential buyers and importers, creating opportunities for Lao coffee producers to showcase their distinctive coffee offerings, narrate their stories, and promote the Lao PDR as a specialty coffee origin.

“The Lao Coffee Association is delighted to reaffirm our partnership with the ARISE Plus, the UKTP and the CLEAN projects in a joint effort to bolster the Lao coffee industry. We are proud to participate in Europe’s largest coffee trade show. This presents an unparalleled opportunity for Lao coffee producers to showcase their products and reach new markets. This collaboration is a testament to our unwavering commitment to expanding Lao coffee visibility and marketability. We hope to see the positive outcomes of this collaboration and remain steadfast in our resolve to fortify the Lao coffee sector,” said Sengchan Khammountha, Vice President of the Lao Coffee Association (LCA).

“The ITC Arise Plus and the UKTP projects are delighted to be with our partners, working with and supporting the Lao coffee industry and coffee businesses at the World of Coffee in Athens. Their continuous presence at this flagship event will enhance their credibility and trustworthiness in the eyes of the European coffee market and community,” said Nick Watson, Agribusiness Adviser, International Trade Centre.

“The USDA funded CLEAN Project implemented by Winrock International is delighted once again with partners to support our Lao coffee producers and Government officials to attend this year’s World of Coffee in Athens, Greece to promote the high-quality coffee from the Lao PDR. This is a wonderful opportunity for our participants to highlight their ecological approach to production and their processing practices to fit new market demands. I am glad to see today, the results of all partners support being linked in Athens to some of the largest buyers of coffee in Europe and beyond and wishing great success to all of our participants attending the event,” said Alex Dahan, Chief of Party, Winrock International in the Lao PDR.

Thanks to the international organizations that have generously supported Lao coffee producers to attend the WOC event in Athens. The EU-funded ASEAN Regional Integration Support from the EU (ARISE Plus Lao PDR) Project and the United Kingdom Trade Partnerships (UKTP Lao PDR) implemented by the International Trade Centre (ITC), and the USDA-funded Creating Linkages for Expanded Agricultural Networks (CLEAN) Project, implemented by Winrock International, have played a crucial role in making this dream a reality.

Their commitment and dedication to the Lao coffee industry have provided these producers with a unique opportunity to showcase their exceptional products on a global platform.

Source: Lao News Agency

The Vietnam Report JSC on June 23 announced the list of the top 10 most prestigious life and non-life insurance companies in Vietnam in 2023.

The 10 most prestigious life insurance companies include Bao Viet Insurance, Dai-Ichi Vietnam, AIA Vietnam, Prudential Vietnam, Chubb Vietnam, Generali Vietnam, Hanwha Life Vietnam, Cathay Vietnam, MB Ageas and Mirae Asset Prévoir.

Meanwhile, the top 10 non-life insurance companies in 2023 are Bao Viet Insurance, PVI Insurance, Bao Minh Joint Stock Corporation, VietinBank Insurance Company, Military Insurance Corporation (MIC), Petrolimex Joint Stock Insurance Company (PJICO), BIDV Insurance Corporation, Aviation Insurance JSC, Agriculture Bank Insurance Joint Stock Corporation, and Saigon-Hanoi Insurance Corporation.

Vietnam Report made assessments independently on the foundation of their financial capacity and media reputation, and a survey of relevant organisations and individuals conducted in May – June this year.

According to Vietnam Report General Director Vu Dang Vinh, insurance premium revenue in the first five months of 2023 was estimated at nearly 93.2 trillion VND (3.96 billion USD), down nearly 1.5% over the same period last year. Many insurers admit that this is a difficult period for the insurance market.

Experts held that after economic fluctuations and disruptions in the global supply chain due to the COVID-19 pandemic, the Law on Insurance Business (amended), which took effect on January 1, 2023, is expected to be a dose of “vaccine” to make the insurance market more transparent.

They believed that difficulties facing the sector will last for only a short time, and the potential of the market remains great.

Up to 72.7% of the respondents in the survey by Vietnam Report said that strong technological development and application of technology in all stages of the insurance industry’s value chain represent the greatest opportunity to promote recovery of the industry./.

Source: Vietnam News Agency