Revenue report

In Q1, Thai Nguyen Iron And Steel JSC (TIS) witnessed its profit down by 35 per cent, to only VND29.2 billion. — VNA/VNS Photo The cost of raw materials and transportation fees have skyrocketed, causing the first-quarter profits of most steel companies to decline. Data from the Viet Nam Steel Association (VSA) showed that in the first quarter of this year, finished steel consumption reached 8.137 million tonnes, up 11.9 per cent over the same period in 2021. Of the estimate, steel exports reached about 2.275 million tonnes, with export value reaching US$2.3 billion, decreasing by 22.15 per cent in volume but up by 12.53 per cent in value over the same period last year. However, the business performance of many enterprises in the industry did not move in the same direction. The first-quarter business results report of Viet Nam Steel Corporation (TVN) showed a sharp decline in profit at member units, especially in the construction steel and galvanised steel segments. In the … [Read more...] about Steel companies report decline in Q1 profits

Hanoi’s economy is recovering Major balances ensured According to a report by the Hanoi People’s Committee, key industries are gradually recovering and developing from the impact of the COVID-19 pandemic. Hanoi’s gross domestic product in the first quarter of 2022 increased by 5.83 percent, 16 percent higher than the country average (5.03 percent), three times higher than that of Ho Chi Minh City (1.88 percent), achieving the quarterly growth forecast (5.7-6.2 percent). These figures reflect the growth momentum in many industries and fields. Many major balances have been ensured. The total state budget revenue of Hanoi in the first quarter of 2022 exceeded VND102.40 trillion, or 80.2 percent of the revenue estimate, representing a rise of 9.2 percent against the same period last year. Regarding investment capital disbursement, Hanoi disbursed more than VND4.11 trillion, reaching eight percent of the plan (up by 26.7 percent over the same period last year) as of March … [Read more...] about Hanoi makes strides in economic recovery

Last year, around 140 countries and territories agreed in principle to set up a minimum corporate tax rate-illustration photo, Source:Freepik.com At a conference on May 10, the Vietnam Association of Foreign-Invested Enterprises (VAFIE) released its first annual report on foreign direct investment (FDI) in the country. One of the discussion points at the event was the topic of a global minimum corporate tax and its potential impact on Vietnam’s FDI prospects. Last year a landmark agreement was reached on a minimum global corporate tax rate of 15 per cent. However, the proposal is still in its early stages and getting the majority of nations to come to implemented it may take plenty more time. “Large corporations often choose to pour money into nations with good tax regimes and more incentives. If the global minimum tax of 15 per cent is applied, it will certainly have a big impact on businesses in Vietnam,” said Hong Sun, vice chairman of the Korea Chamber of Business in … [Read more...] about Nation urged to prepare for tax overhaul

Dau Giay toll station on Long Thanh - Dau Giay Expressway is invested in by Vietnam Expressway Corporation. (Photo courtesy of VEC) Hanoi (VNS/VNA) - The State-owned Vietnam Expressway Corporation (VEC) will implement automatic non-stop toll collection (ETC) on all five expressways under its management across the country by the third quarter this year. VEC has just reported to the Ministry of Transport on the ETC system for the expressways under its management. Accordingly, VEC had completed the investment, installation and operation of the ETC system on the Cau Gie - Ninh Binh Expressway from June 2020 for 15 lanes. The system is currently operating effectively, with the service rate accounting for 51 percent of the whole line's revenue. The remaining expressways include Noi Bai - Lao Cai, HCM City - Long Thanh - Dau Giay, Ben Luc - Long Thanh, Da Nang - Quang Ngai and some other sections of Cau Gie -Ninh Binh. VEC approved and issued bidding documents for … [Read more...] about Five expressways to use non-stop automatic toll collection by September

Public-private partnership (PPP) is a mechanism and common practice to mobilise and encourage investment in areas promoted by governments. The main characteristic of such projects is that both private investors and public authorities share the risks and responsibilities in construction and operation. The public sector typically contributes only a small portion to these projects, with the private sector still in charge of construction and operation. The risks of these projects typically involve the phases of selection, approval, design, construction, financing, operation, and management phases. Over the years, Vietnam issued several decrees before the new Law on Public-Private Partnership Investment was promulgated in 2020 and took effect from January 2021. The law and accompanying decree guiding the implementation of the law have overcome and limited barriers to investment in the form of PPP, creating favourable conditions for such investment. PPP investment in health is one of … [Read more...] about Navigating legal challenges in healthcare partnerships

Prime Minister Pham Minh Chinh attended the opening ceremony of FPT Software's new office in New York City Speaking at the ceremony, Prime Minister Pham Minh Chinh stressed the importance of the event in the context of Vietnam’s rapid recovery after the pandemic, showing the country’s sustainable socioeconomic development with a focus on technology and innovation. The PM believed that FPT would develop faster and stronger, contributing to the development of science and technology among Vietnam’s businesses. Dang Tran Phuong, CEO of FPT Americas said, “This is a milestone asserting our rapid and strong growth in the world's largest economy. In the next three years, we expect the new office to contribute 20 per cent of FPT Software's total revenue in the US, with the number of employees working directly with US reaching 5,000 people." This is FPT Software's 10 th office in the US and the company's 58 th worldwide. The new office is located at 295 Madison Avenue in New York … [Read more...] about FPT Software opens 10th office in the US

A woman shops for fresh fruits at a Winmart store in Ha Noi. — VNA/VNS Photo Tran Viet Domestic purchasing power has rebounded after a strong decline caused by the COVID-19 pandemic. That rebound has facilitated businesses to step up production and seize new opportunities, experts have said. The nation's total revenue from retail trade and services surpassed VND1.77 quadrillion (US$76.2 billion) in the first four months of 2022, up 6.5 per cent year-on-year, the latest report from the Ministry of Industry and Trade (MoIT) showed. In April alone, the revenue also saw a positive yearly rise of 12 per cent to over VND455 trillion, according to the report. These encouraging figures were attributable to abundant good supply and increasing purchasing power in the domestic market, the MoIT said, adding that goods retail sales saw a year-on-year hike of 7.6 per cent to over VND1.42 quadrillion in the four months. Of this, sales of food and foodstuff rose 13.2 per cent year-on-year … [Read more...] about Four-month purchasing power rebound facilitates business recovery

Goods at Cat Lai Port in HCM City. Demand for Viet Nam's export goods can be reduced due to the global economic slowdown in the wake of the Fed’s rate increase. — VNA/VNS Photo The latest interest rate hike by the US Federal Reversal (Fed) will weigh on the global economy, including Viet Nam, but experts expect impacts of the Fed’s move on the country will not be significant. The Fed last week raised its benchmark interest rate by half a percentage point, the most aggressive step yet in its fight against a 40-year high in inflation. Banking and finance expert Can Van Luc, chief economist of the Bank for Investment and Development of Vietnam, told Viet Nam News that the Fed’s move in theory will affect the country’s economic growth, foreign debt payment obligations, exchange rate and foreign investment. “The Fed’s move may push up the global interest rate and slow global economic growth, which will reduce the demand for Viet Nam's export goods. It therefore will slow the … [Read more...] about Fed rate hike’s impact on Vietnamese economy not significant

The total number of transactions via Mobile Money has surpassed 8.5 million after six months of pilot implementation By the end of March, the total number of customers registering and using the service has surpassed 1.1 million, of which nearly 660,000 are in remote, border, and island areas – accounting for more than 60 per cent of the total number of customers using the service. More than 3,000 service points have been established, with about 900 positioned in remote areas, making up about 30 per cent of the total number of established business points. The total number of payment acceptors established by the end of March stands at more than 12,800, most of whom are units providing essential services such as electricity, water, education, and others. The State Bank recommended that, for Mobile Money to thrive in the coming period, piloting enterprises need to continue deploying measures to encourage service points and use incentives. After six months of the … [Read more...] about Encouraging results with Mobile Money deployment

A wind power project in the northern province of Ninh Thuận. — Photo evn.com.vn HÀ NỘI — The Vietnamese economy’s unparalleled exposure to multinational corporations and the global consumer market calls for a pragmatic alignment between the country’s renewable energy strategy and the decarbonisation commitments of the global brands, according to IEEFA’s latest report on Việt Nam. “Multinational corporations responsible for up to US$150 billion of Việt Nam’s export revenues have made specific pledges on carbon neutrality or decarbonisation of varying scope and timelines,” said Thu Vũ, energy finance analyst leading the Vietnamese market coverage for IEEFA. “These brands’ journey toward sustainability progress is one in which Việt Nam can not afford to ignore or miss out on.” Việt Nam is currently the largest exporter of goods in developing Southeast Asia. With nearly 60 per cent of the exports being manufactured goods for the big brands, its growing role in the global … [Read more...] about IEEFA: Việt Nam’s manufacturing future rests on a credible renewable energy game plan