WB: Vietnam’s economy continues to show resilience
The World Bank (WB) on March 11 released its brief updating Vietnam’s economic development in March, stating that the economy continues to show resilience and is recovering although downside risks have heightened.
Available data suggest continued recovery of domestic economic activities, with industrial production growing by 8.5 percent year on year and a broad-based improvement in manufacturing despite the surge of new COVID-19 cases to over 100,000 infections per day by the end of February.
After falling in January, production of computers, electronics, and optical products bounced back, posting a year-on-year growth of 9.1 percent. Apparel manufacturing maintained strong performance with a 24.7 percent growth against the same period last year, according to the report.
Retail sales grew by an estimated 3.1 percent in February. Sales of consumer services continued to recover, increasing by 5.9 percent, the first expansion since May 2021, as accommodation and catering services sales grew strongly. Sales of goods increased by 2.4 percent.
With imports growing much faster than exports, trade balance deteriorated from a surplus of 1.4 billion USD in January to a deficit of 2 billion USD in February.
Higher export growth rate could be attributed to phones, computers and electronics and machinery, whose exports grew by 6.2 percent in February.
Exports of garment-textile remained strong, growing by 25.8 percent. Strengthening imports partly reflect a jump in imports of phones, computers and electronics components from 14.9 percent in January to 32.3 percent in February.
Imports of petroleum products also increased by 146.8 percent, clearly reflecting rising oil prices. By trading partners, exports to the US remained robust, expanding by 14.6 percent while exports to China rebounded, growing by 19.5 percent after a 15.2 percent drop in January.
The WB brief also indicated that FDI commitment slowed while FDI disbursement continued to recover strongly.
Vietnam attracted 2.9 billion USD of FDI commitment in February, 15.9 percent lower than a year ago. Most of the commitments were made by existing firms intent on expanding their production facilities.
The disbursement of approved FDI projects increased by 7.9 percent in February, a third month of increase.
Budget balance saw a 1.1 billion USD surplus in February as revenue performance remained strong. Expenditures increased thanks to improved disbursement of public investment.
Revenues grew by 5.3 percent in February while expenditures increased by 6.1 percent thanks to improvements in the execution of the public investment programme.
Over the first two months, the Vietnamese Government collected 22.9 percent of total planned annual revenues. The Government also spent 12.8 percent of planned expenditures. Public investment disbursement improved significantly, reaching 8.6 percent of the target set by the Prime Minister, much higher than the rate 5.1 percent recorded in the same period last year.
The State Treasury issued 412 million USD worth of Government bonds denominated in local currency in February, raising total bond issuance to 1.4 billion USD, or 8.1 percent of annual plan in the first two months.
WB experts noted that Vietnamese authorities should encourage exporters to seek new markets and innovate into new products through global value chains and existing free trade agreements to strengthen export resilience. Keeping track of domestic price developments is also warranted.
Fuel prices soar to all-time highs
Domestic fuel prices soared for the seventh straight time, with effect from 3 p.m. today, March 11, amid global oil market volatility.
The ministries of Industry-Trade and Finance issued a joint statement announcing the price of RON95 gasoline had been revised up by VND2,990 to a record high of VND29,820 per liter and that of bio-fuel E5 RON92 by VND2,910 to VND28,980 per liter.
The prices of other petroleum products were also adjusted up by VND2,500-3,900 per liter or kilogram. Kerosene, diesel oil and heavy fuel oil are now priced at VND23,910, VND25,260, VND20,980, respectively.
Compared to December last year, each liter of RON95 rose by VND7,020 per liter, and those of bio-fuel RON92, diesel, kerosene, and heavy fuel oil leapt by VND6,900, VND7,930, VND7,590, VND5,240, respectively.
Vietjet Air resumes numerous routes for summer travel boom
Budget carrier Vietjet Air will reopen and increase frequency of various domestic flights this month to meet travel demand in summer.
In addition to flights linking Ho Chi Minh City and Hanoi with Phu Quoc island offshore Kien Giang province, those from Nha Trang (Khanh Hoa), Da Nang, Da Lat (Lam Dong), Hue, Thanh Hoa and Vinh (Nghe An) to Phu Quoc will be operated with 4-7 round trips per week.
Flights connecting Nha Trang with Thanh Hoa, Vinh, Da Nang and Can Tho will see 3-4 two-way trips weekly starting March 27.
Similarly, air routes between Da Nang and Da Lat, Buon Me Thuot and Can Tho will reopen with up to seven round trips a week from March 27.
The Can Tho-Hai Phong and Can Tho-Da Lat routes are to be resumed from March 27 and April 28, respectively.
Action plan to assist realisation of green growth targets
The Ministry of Planning and Investment (MPI) is collecting opinions on the Prime Minister’s draft decision on approving the national action plan on green growth for 2021-2030, with a vision to 2050.
This strategy aims to help promote economic restructuring in tandem with growth model reform, and achieve economic prosperity, environmental sustainability, and social equality. It also looks to obtain a green and carbon-neutral economy to help with efforts in curbing global warming.
The green growth strategy focuses on economical and efficient use of energy and natural resources based on science and technology, digital technology application and digital transformation, development of green and sustainable infrastructure, and promotion of green lifestyles.
Approved right ahead of the 26th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP26) last November, it reflects Vietnam’s determination to carry out the commitments on greenhouse gas emission reduction and climate action through realising green growth targets.
USABC ready to help Vietnam improve health insurance policies: Official
Member businesses of the US-ASEAN Business Council (USABC) always stand ready and want to implement projects and provide resources to help Vietnam improve its health insurance policies and medical system, said Michael Michalak, Senior Vice President and Regional Managing Director of USABC.
Michalak made the affirmation at a working session with representatives of the Vietnam Social Security (VSS) on March 11, during which the two sides discussed the implementation of a memorandum of understanding (MoU) on realising health insurance policies reached on March 9.
The signing of the MoU was a good start for the bilateral cooperation, he said, noting his wish that the two sides will complete targets of projects within the framework of the document.
The MoU will be valid for five years from the date of signing. Under the agreement, the sides will bolster cooperation in health insurance, particularly in the development of sustainable universal health insurance coverage; assessing the quality of medical equipment and services covered by health insurance; and health insurance payment verification.
Legal steps for conducting ODA projects simplified
Legal steps for operating ODA projects are simplified to accelerate the disbursement of the soft foreign loans after amendments to nine laws took effect earlier this month, according to the Ministry of Planning and Investment (MPI).
Provisions for the implementation of ODA projects set out in the revised Laws on Public Investment, Public Private Partnership (PPP), Investment, Housing, Bidding, Electricity, Enterprises, Special Consumption Tax, and Civil Judgment Enforcement were amended in the way that promotes decentralisation, strengthen inspection and monitoring, and simplify legal steps required for the projects to complete, said Minister of Planning and Investment Nguyen Chi Dung.
For example, from now leaders of the governing body of B- and C-class projects using ODA fund or other preferential foreign loans are authorised to grant in-principal approval for the projects to start. Previously, only the Prime Minister had the right to do so.
Similar rules can apply to A-class projects which are large in scale and require big amount of investment if they are proved effective in B- and C-class ones.
Train importation for HCM City’s first metro line to be completed in March
The importation of the 17 trains of Ho Chi Minh City’s first metro line, Ben Thanh – Suoi Tien, is expected to be completed this month.
Two trains, No. 12 and 13, were unloaded at Khanh Hoi Port on March 11 while the last four are scheduled to arrive at the port later this month.
Hoang Mai Trung, Deputy Director of the project management board under the HCM City Management Authority for Urban Railways, said as the investor, the authority will keep coordinating with contractors and relevant parties to import all the 17 trains so that Metro Line No.1 can become operational in late 2023.
The on-schedule importation will help speed up the preparation of technical systems for the line’s trial run, he noted.
In the first phase, the line will use three-carriage trains made in Japan. Each train, 61.5 metres long, is able to carry 930 passengers and run at 110km per hour on elevated sections and 80km per hour on underground ones.
Nearly 89 percent of this metro line project has been completed so far.
Viet Lotus invests in start-up Newee
Viet Lotus announced its investment in start-up Newee, an online seller development platform in Ho Chi Minh City on March 10.
Established at the end of 2020, Newee acts as an intermediary to help businesses expand sales channels on e-commerce…
