Vietnamese businesses look to further optimise opportunities from CPTPP After two years of implementing the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the use of the deal to generate benefits for the economy and businesses has remained modest, according to insiders. Among 14 free trade agreements (FTAs) Vietnam has signed, the CPTPP is a new generation FTA with high standards and the highest level of facilitation. Vietnam has been forecast to be one of the members that benefits the most from the deal. However, the country has experienced challenges in optimising the FTA because of its modest level of development and competitiveness. Due to US-China trade tensions and the impact of COVID-19, the global economy fell into crisis last year with interrupted supply chains. Vietnam also suffered an economic downturn. Therefore, after two years of implementation, the benefits from the CPTPP are still to be seen. Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry (VCCI), said that positive results in the two years of implementation include the reform of institutions and administrative procedures. Explaining the modest benefits so far, Loc said major reasons include the poor competitiveness of Vietnamese enterprises, market instability, and the low capacity of State agencies. Meanwhile, Nguyen Cam Trang, Vice Director of the Import-Export Department at the Ministry of Industry and Trade, said the CPTPP has helped promote Vietnam’s exports. However, its market share and export growth to the six partners that have implemented the CPTPP have been low. She noted that Vietnam’s market share is 3.1 percent in Japan, 1.9 percent in Australia, 1.6 percent in New Zealand, 1.3 percent in Mexico, 1.1 percent in Canada, and 1 percent in Singapore. Growth in exports to CPTPP markets was 12.2 percent in 2018, 13 percent in 2019, and 12.02 percent in 2020, Trang added. She said that, in the future, …
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Banks watch on loans to potentially risky areas
Low deposit interest rates have caused a large amount of capital to flow into real estate and securities. VNA/VNS Photo HÀ NỘI — State Bank of Việt Nam (SBV)’s governor Nguyễn Thị Hồng has directed commercial banks to investigate a number of banks loans issued in the first quarter of 2021. The move was made after the media raised questions over potentially risky investment channels such as real estate and securities. According to Hồng, SBV has set a credit growth target of 12 per cent this year and focus on increasing credit quality with priority on production and business activities to continually remove difficulties for people and businesses while controlling the credit to areas of potential risks. The Governor has required commercial banks to expand credit in line with credit quality enhancement to meet the SBV’s targets. According to the SBV, by the end of the first quarter of this year, the credit increased by 2.93 per cent compared to the end of last year to VNĐ9.46 quadrillion (US$407.7 billion). Of which, real estate loans rose by 3 per cent. Data from the Ministry of Construction also showed loans for real estate investment gradually increased quarter-by-quarter last year. Real estate loans reached more than VNĐ526.39 billion in the first quarter of last year, more than VNĐ580.18 billion in Q2, more than VNĐ606.25 billion in Q3, and VNĐ633.47 billion in Q4. Experts said the low deposit interest rates have caused a large amount of capital to flow into real estate and securities, fueling these investment channels to grow strongly over the past months. At present, the rate for savings of less than six months is 3-4 per cent. Meanwhile, tenors of six to less than 12 months and more than 12 months enjoy a rate of 3.5-5.5 per cent and 4.6-6 per cent, respectively. Although some banks have revised up their deposit rates by 0.1-0.4 percentage points, the banks’ average deposit rate in the first quarter remained some 2 percentage points lower than …
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Vietnamese travelers seek out beach destinations ahead of national holiday
Vung Tau, a popular beach town in southern Ba Ria-Vung Tau Province, came second in the list of 10, followed by central beach city Da Nang, Nha Trang, and Phu Quoc, Vietnam's largest island off southern Kien Giang Province, according to data based on the bookings for April 30-May 3 collected by the world's biggest accommodation website. Hoi An, home to beautiful beaches like Cua Dai and An Bang, ranked eighth while Ha Long, a popular bay in northern Quang Ninh Province, came in ninth. Mui Ne, a coastal destination in central Binh Thuan Province, often referred to as "a seaside paradise" for windsurfing, surfing, jet-skiing, and kayaking, ranked 10th. Mui Ne beach in Binh Thuan Province, central Vietnam. Photo by Shutterstock/Andy Tran. Da Lat, much loved for its year-round cool climate, green pine forests and misty landscape, was the most sought for holiday destination by Vietnamese travelers. Ho Chi Minh City, Vietnam's southern metropolis, came in sixth while Sa Pa, a famous highlands town in northern Lao Cai Province, secured seventh spot. Vietnam will celebrate a four-day national holiday for Reunification Day (April 30) and Labor Day (May 1). With the nation having contained its Covid-19 outbreaks, domestic air travel has returned to normal. Vietnam's latest Covid-19 outbreak in late January came just a few weeks before the Lunar New Year ( Tet ), its biggest holiday, forcing many people to cancel travel plans. The country has gone over two months without community transmissions. …
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