Logistics sector to step up digital transformation Logistics, considered a backbone of Vietnam’s economy, is among eight sectors prioritised by the national programme for digital transformation until 2025. According to the Vietnam Logistics Business Association (VLA), the sector has grown 14-16 percent annually over recent years. It now gathers together some 3,000 domestic firms and 30 others offering transnational services. Of those, 89 percent are domestic businesses and 10 percent are joint ventures while the number of foreign-funded companies represents just 1 percent of the total. The VLA said the cost of logistics in Vietnam as a proportion of GDP is 18 percent, compared to 9-14 percent in developed countries. The high cost is attributable to limited sea port infrastructure and weak cost reduction efforts. Together with fierce competition, the digital economic boom, and pressure from the COVID-19 pandemic, these have made digitisation in the sector a must. Vietnamese logistics companies offer between 2 and 17 services, mostly in transport, warehousing, and fast delivery. About half apply technology in their operations. Nguyen Tuong, VLA Deputy General Secretary, said investment shortages from the very beginning, difficulties in choosing suitable technological applications, a sense of distrust in technology, and a fear of change are hindering the sector from pressing ahead with digital transformation. Tran Thanh Hai, Deputy Director of the Agency of Foreign Trade at the Ministry of Industry and Trade, said transformation in this core sector would trigger a similar process in other parts of the supply chain. Experts have said that smart logistics involve master plans and strategies with the involvement of cloud computing technology, adding that it will be conducive to improving customer services, information flows, and automation. To reduce logistics costs, Nguyen Hoang Long, Deputy General Director of the Viettel Post Joint Stock …
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VIETNAM BUSINESS NEWS FEB. 21
Finance Ministry suggests further extending tax payment deadline The Ministry of Finance has submitted a proposal to the Government seeking approval to create a decree expanding the timeframe for tax and land lease payments. The move is expected to ease difficulties faced by enterprises amid the COVID-19 pandemic, especially those in tourism and transportation. Under the proposal, payments of value added tax are to be extended by five months, during which revenue to the State budget will fall by nearly 68.8 trillion VND (2.99 billion USD). Regarding corporate income tax, around 40.5 trillion VND in payments during the first and second quarters will be delayed by three months. Meanwhile, the payment of some 1.3 trillion VND in value added tax and personal income tax from business households and individuals will also enjoy a delay. The ministry suggested extending the deadline for land lease payments in the first installment, valued at about 4.4 trillion VND. The total value of delayed taxes and land lease will amount to 115 trillion VND. Tax agencies allowed delays in tax and land lease payments worth some 87.3 trillion VND last year, for 184,900 taxpayers./. Vietnam to overcome difficulties in 2021 through solidarity: MoIT leader Challenges remain ahead in 2021, but Vietnam will overcome all with solidarity between the political system, businesses, and the people, Politburo member, head of the Party Central Committee’s Economic Commission, and Minister of Industry and Trade (MoIT) Tran Tuan Anh has said. In an interview with the Vietnam News Agency, Anh said that this year, amid the complex developments of the COVID-19 pandemic, the major target defined by the Party, State, and Government continues to be effectively containing the pandemic to protect people’s lives and public health. The country will coordinate with the international community to fight COVID-19 while continuing to recover its economy and return to true normal, …
VIETNAM BUSINESS NEWS FEB. 24
Hi-tech agriculture proves effective in Dong Nai Agricultural production has been affected by abnormal weather conditions, climate change, and diseases over recent years. Many farms in southern Dong Nai province have applied high-technology in agricultural production in order to cope with the situation, helping increase quality and output. High-tech production requires massive investment, not just capital but also technology, equipment, and “grey matter”, to adapt to cutting-edge manufacturing methods. High-tech manufacturing models have been expanded around Dong Nai, especially in animal husbandry and on poultry farms. Dong Nai has more than 46,000 hectares of crops using water-saving technology and the province has gradually changed to green breeding in accordance with Vietnamese Good Agricultural Practice (VietGAP) standards. Agriculture accounts for 8.3 percent of Dong Nai’s economic structure and agro-forestry-fisheries value currently stands at nearly 1.8 billion USD. The results reflect the province’s large-scale manufacturing development investment and high-tech application to adapt to unfavourable conditions and meet market demand. Vietnam’s growth outlook to depend on authorities’ response to new outbreak: WB Vietnam’s growth prospects will depend on how well and how quickly the authorities will bring the new coronavirus outbreak under control and how quickly international and national vaccinations will proceed, according to the World Bank (WB). In its Vietnam Macro Monitoring report issued earlier this month, the WB said January’s industrial production index jumped by 24.5 percent year on year, the highest growth rate since the beginning of 2019. Merchandise exports and imports respectively grew 51.8 percent and 41.8 percent from the same period last year. The preliminary January goods trade surplus is estimated at 1.1 billion USD. Exports to the US and China continued the robust growth of 2020 while those to the EU, ASEAN, Japan …
