Vietnam News Today (Dec. 17): Prime Minister Wraps Up Successful Europe Trip

Illustrative image. Photo: VNA

Vietnam records 333 new Covid-19 cases on December 16

The national Covid-19 caseload rose to 11,522,431 with 333 new cases recorded on December 16, according to the Ministry of Health.

With 87 patients given the all-clear during the day, the number of recoveries rose to 10,610,122.

Meanwhile, there are 48 patients needing breathing support, cited VNA.

No death from Covid-19 was recorded in the past 24 hours. The total fatalities stand at 43,179.

With 41,177 doses administered on December 15, the total number of doses of Covid-19 vaccines injected rose to 265,114,272.

Foreign trade represents a bright spot for local economy in 2022

For the first time this year Vietnam’s foreign trade has hit the US$700 billion mark, marking a bright spot in the overall picture of the national economy amid global market volatility.

The General Department of Vietnam Customs reported that as of noon on December 15, the country’s import-export value reached US$700.23 billion, a new milestone for foreign trade.

This impressive performance by the trade sector can be put down to the rapid growth of agro-forestry-fisheries exports which raked in US$90 billion during the initial 11 months of the year, representing an annual rise of 9.5%.

After China officially permitted businesses to import Vietnamese durians this summer, the export value of the fruit to the northern neighbour has increased dramatically. Statistics indicate that the past two months witnessed durian exports to China reach US$350 million in value, and the fruit is expected to join the group of commodities with an export value of US$1 billion next year.

Furthermore, the fact that the United States and New Zealand have accepted Vietnamese pomelos and Japan has welcomed Vietnamese longans has created bright prospects ahead for these fruits to penetrate deep into these markets in the time ahead.

Another group of commodities with billions of US$ in export value is garments and footwear which are expected to be a success story for this year. Statistics show that garment exports brought in nearly US$38 billion during the first initial 10 months of the year, up 17.2% year on year, and industry insiders believe that the US$42 billion target for this year is well within reach.

Ironing out snags

However, Vietnamese businesses are currently feeling the pinch due to inflation in major markets rising, prompting consumers to tighten their belts. Indeed, many importers have cut down on orders, causing difficulty for firms.

At this time every year, production lines of Tinh Loi Garment Co. operate at full capacity to meet orders placed for the first and second quarters of next year. This situation is different this year as the number of import orders for the first quarter 2023 has fallen by 30%, forcing the company to introduce new solutions, according to VOV.

“We have to focus on the domestic market at present, and are seeking new customers in the coming months,” said Do Xuan Hung, financial director of Tinh Loi Garment Co.

Elsewhere, Vien Thinh Shoe Company has changed its customer care service by directly seeking customers as opposed to awaiting contracts to be signed.

“We have to fly to markets overseas to negotiate and offer new designs at an affordable price,” said Tran The Linh, director general of Vien Thinh Shoe Company.

Being aware of difficulties faced by enterprises, the Ministry of Industry and Trade is deploying measures aimed at supporting exports, including increasing connectivity through trade promotion activities.

Seafood is one of Vietnam;s key hard currency earners as its products have brought in US$10 billion in export value this year.

“The ministry has recently held online meetings with business associations and Vietnam Trade Bureaux abroad to get market updates and listen to business proposals,” said Nguyen Cam Trang, deputy head of the Import-Export Department under the Ministry of Industry and Trade.

Positive outlook ahead for 2023

According to the Ministry of Industry and Trade, with the Covid-19 pandemic almost under control, most markets globally have now relaxed and returned to normal. Along with this, the reduction in logistics costs, especially sea transportation costs, also helps export businesses to gain more advantages in terms of ensuring the growth rate next year.

This year the trade surplus is likely to fetch over US$10 billion, meaning the country has enjoyed a trade surplus for seven consecutive years. Most notably, 35 items have achieved export turnover exceeding US$1 billion, of which eight export items have brought in more than US$10 billion each.

For the first time, seafood exports have grossed US$10 billion in value, while wood and wood product exports reached US$14.6 billion in the initial 11 months of the year. Meanwhile, the textile, leather and footwear sectors are also expected to meet the targets set for the year. These are positive signals that will motivate businesses to boldly invest in production and strive to increase order value in 2023 and beyond.

Prime Minister wraps up successful Europe trip

Prime Minister Pham Minh Chinh arrived in Hanoi on December 16 afternoon, concluding a successful trip to Europe during which he attended a commemorative summit in celebration of ASEAN-EU relations, and paid official visits to Luxembourg, the Netherlands and Belgium from December 9-15.

In his tour, PM Chinh engaged in more than 60 bilateral, multilateral and community activities. In addition to talks and meetings with almost all senior leaders of Luxembourg, the Netherlands and Belgium, he held 14 meetings with leaders of the European Union, as well as ASEAN and EU member states.

Prime Minister Pham Minh Chinh arrives in Hanoi on December 16 afternoon, concluding a successful trip to Europe. Photo: VNA

He also attended business and investment forums, received leaders of leading European enterprises, and spent time meeting and talking to the Vietnamese communities in the three countries, VNA reported.

The Government leader’s activities have contributed to effectively implementing the Party's foreign policy on improving the efficiency of external affairs and international integration, and promoting multilateral diplomacy and economic diplomacy for the development of the country; as well as the policy on overseas Vietnamese affairs in the new situation.

Domestic real estate market boom unlikely in 2023

Vietnam's real estate market is unlikely to boom next year, according to experts.

Tran Kim Chung, former deputy director of the Central Institute for Economic Management, said that in the context that there is no sudden change in capital source and new policies will not be approved until the end of 2023, the market next year could continue to adjust towards a more substantive direction.

The market expects to have new impetus from the promulgation and amendment of the three laws relating to the property market, namely the Land Law, the Law on Housing, and the Law on Real Estate Business.

Chung said the market boomed in 2019-2021, so a large part of finance is needed in 2022 and 2023 to pay for the transactions in those two years. But now the financial sources have reduced beyond expectations.

In addition, some businesses have assets frozen due to legal issues, while some other enterprises are having difficulty in finance.

Changes in credit policies relating to interest rates and exchange rates will affect the real estate market, Chung said.

Su Ngoc Khuong, Senior Director of the Investment Consulting Division Savills Vietnam, said that Vietnam's economy and finance will also be significantly affected by the fluctuations in the world, such as inflation, exchange rates, scarcity of petroleum and socio-political instability in many countries.

The real estate market suffers from these economic impacts. Therefore, Khuong predicted that in 2023, the property market will change quite cautiously.

For market liquidity, the residential segment will maintain stable liquidity. However, the limited supply and absence of affordable products will affect liquidity.

The property market expects more advantages from new regulations effective to recover next year, such as decrees No 44/2022/ND-CP and 42/2022/ND-CP. Photo: tienphong.vn

Segments such as industrial and office real estate are still doing well, and businesses will continue to need to expand, he said.

For financial issues, according to Khuong, unfinished projects need to have capital disbursed to continue the construction process, creating new supply for the market.

In addition, investors need additional capital from foreign investment, investment funds or joint ventures to solve complex financial problems, cited VOV.

“It is necessary to have legal support for enterprises developing property projects for a strong recovery in the domestic market. We hope that in the coming time, these bottlenecks will be removed soon to create a healthier and more favourable business environment for investors as well as solve the problem of housing supply for the majority of people. That helps them own a more reasonably priced house," he said.

According to the latest forecast from the Finance – Economics – Real Estate Institute of Dat Xanh Services (FERI), the market supply will still be in severe shortage in the short term due to the continued tightening of real estate management. Meanwhile, social housing projects have yet to be implemented. With a cautious mentality, customers have turned to keeping money, leading to a frozen market.

Moreover, the increase in interest rates of loans and limited credit "room" make it difficult for even genuine home buyers to access loans.

The property market expects more advantages from new regulations effective this year to recover next year. They include decrees No 44/2022/ND-CP on developing a database about the real estate market, 42/2022/ND-CP on the provision of online information and public services by the State agencies in the cyber environment, Decree 65/2022/ND-CP on the bond market, and new policies on land under Resolution 18-NQ/TW.

Noi Bai airport expects 80,000 passengers on peak day during Lunar New Year season

The Noi Bai international airport in Hanoi is expected to serve 450 flights and up to 80,000 passengers on the peak day during the travel season for the upcoming Lunar New Year holiday (Tet) – Vietnam’s biggest and longest traditional festival.

However, the figure is yet to match the highest daily passenger number during the summer of 2022. June 25 saw over 104,000 passengers, nearly 93,000 of whom were domestic travellers, going through the airport.

Leaders of the airport said a host of international airlines plan to resume flights this winter, with good growth projected for the number of international flights to and from Noi Bai during Tet, VNA reported.

Illustrative photo. Photo: VNA

It is estimated that there will be 220 international flights carrying some 22,000 passengers landing in and taking off from the airport per day during the peak period. The figures are equal to approximately 70% of those recorded in the same period in 2019 before the breakout of the Covid-19 pandemic.

Noi Bai has already prepared plans to meet the upcoming high demand, under which more check-in counters and security facility will be opened and operated in full capacity, IT advances applied to calculate peak hours of each area, and coordination with transport police enhanced to regulate transport around the airport, among other activities.

According to a recent dispatch, officials, civil servants, public employees and workers of State administrative and socio-political organisations will have seven days off from January 20 (Friday) to January 26 (Thursday) for Tet celebrations. Travelling is expected to surge from several days just before Tet.

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