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RAILWAY, MARINE, WATERWAY TRANSPORT SECTORS NEED TO FIND WAYS TO

INCREASE MARKET SHARE

Railway Transport

 High demand for train travel due to difficulties in aviation.

 Challenges include outdated infrastructure, service quality, and technical issues like noise
and vibration.

 Slow progress in implementing new railway projects.

 Need for breakthrough investment to promote the railway's strengths.

Maritime Transport

 Dependency on foreign shipping companies.

 Challenges in fleet development due to high investment costs, loan interest rates, and
VAT on ship imports.

 Proposal for better policies on loan interest, VAT exemptions, and contractor tax
exemptions.

 Significant investment in seaports to accommodate large tonnage ships.

Inland Waterway Transport

 High investment capital requirement for receiving incentives.

 Challenges in fleet development and investment due to high costs and tax rates.

 Need for policy reforms, including legal documents, mechanisms, and administrative
reforms.

 Proposal for preferential mechanisms to support the inland waterway sector.

General Recommendations

 Need to speed up infrastructure investment in railways.

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 Review and propose amendments to maritime laws.

 Effectively implement projects for maritime fleet development.

 Improve legal documents, mechanisms, and administrative reforms for inland waterways.

 Propose preferential mechanisms to support the inland waterway sector.

Future Plans

 Plans for nine new railway lines by 2030, with most projects at the pre-feasibility study
stage.

 Significant investment in Vietnam's seaport system to accommodate large container ships.

Source Vietnamnews.vn

Friday, April 19, 2024

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PRIME MINISTER DIRECTS TO PROMOTE DIGITAL TRANSFORMATION IN

CUSTOMS FIELD

Promotion of Digital Transformation

 PM Chính stresses the importance of digital transformation in customs operations and

calls for its further enhancement to save costs and improve convenience for people and
businesses.

Responsibilities of Ministry of Finance (MoF) and Việt Nam Customs (VNC)

 MoF and VNC are tasked with reviewing and upgrading IT systems for digitizing
documents.

 They must prepare equipment for modernizing customs industry operations and
enhancing inspection, supervision, and control at border gates and seaports.

 Strengthening cooperation and data exchange with regional and global partners to
facilitate trade.

 Conducting regular dialogues and evaluating satisfaction levels of people and businesses
with administrative procedures.

 Inspecting and taking action against customs units and officials violating laws or causing
trouble for citizens.

Tasks for Other Ministries and Agencies

 Reviewing administrative procedures related to licensing of imported and exported goods

to propose regulatory amendments.

 Coordinating with the Ministry of Public Security to implement population data

applications for national digital transformation.

 Digitizing cross-border import and export procedures and building smart border gates to
streamline processes and reduce costs.
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 Developing master plans for modernizing management, trade, and logistics activities at
border gates in border provinces.

Ensuring Fair and Transparent Environment

 Creating transparent and fair import-export environments to enhance national

competitiveness and prevent smuggling, trade fraud, and illegal goods transportation
across borders.

 Reporting any issues beyond their authority to the PM.

Supervision

 All efforts will be supervised by the Government Office to ensure effective

implementation of directives.

Source Vietnamnews.vn

Friday, April 19, 2024

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VIETNAMESE YOUTH’S POSITION IN INTERNATIONAL ARENA TO BE

ENHANCED

Participants and Purpose

 Ambassador Đặng Hoàng Giang, head of the Permanent Mission of Vietnam to the
United Nations, and Nguyễn Ngọc Lương, Permanent Secretary of the Hồ Chí Minh
Communist Youth Union Central Committee, led a Vietnamese youth delegation to the
UN Economic and Social Council (ECOSOC) Youth Forum.

 The purpose of the delegation's participation is to strengthen the role of Vietnamese youth
in the international arena, contribute to global efforts on sustainable development and
climate change, and represent Vietnam's policies and achievements in relevant areas.

Discussion Points and Activities

 Ambassador Giang discussed the activities of the Vietnamese Students’ Association in

New York and urged connections with the Hồ Chí Minh Communist Youth Union Central
Committee to engage Vietnamese youth in the US in homeland development.

 Nguyễn Ngọc Lương affirmed the delegation's aim to raise Vietnamese youth voices in
implementing UN agendas, showcase Vietnam's policies and achievements in youth
development, and inform international friends about the country's efforts.

ECOSOC Youth Forum

 The ECOSOC Youth Forum provides a platform for youth representatives worldwide to
exchange ideas on Sustainable Development Goals, raise concerns, propose solutions,
and report recommendations to the High-level Political Forum on Sustainable
Development.

 The forum serves as a venue for addressing global issues and advancing international
cooperation on sustainable development.

Importance of Vietnamese Youth Abroad

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 The Hồ Chí Minh Communist Youth Union Central Committee values Vietnamese youth
and students abroad as essential resources for the country's development and international
integration.

 The delegation's participation underscores the importance of engaging Vietnamese youth

abroad in homeland development efforts.

Source Vietnamnews.vn

Friday, April 19, 2024

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OLD LOANS MUST ENDURE HIGHER INTEREST RATES TEMPORARILY SBV

Interest Rate Overview

 The average lending interest rate for new loans by commercial banks is around 6.4% per
year, a decrease of 0.7 percentage points compared to the previous year.

 Despite this decrease, borrowers with loans issued before the latest rate adjustment still
face higher rates, according to the State Bank of Vietnam (SBV).

Challenges Faced by Borrowers

 Many businesses are struggling with high interest rates on existing loans, impacting their
ability to generate profit, particularly during economic difficulties.

 Banks are also imposing additional requirements such as producing additional collateral
or reducing credit limits due to concerns over the declining value of properties.

Concerns from Businesses

 Business owners like Đỗ Phước Tống and Nguyễn Quốc Anh express dissatisfaction with
the disparity in interest rates between old and new loans.

 They emphasize the need for banks to support businesses with rate cuts to help them
survive, especially amidst a lack of orders from customers.

Impact of Foreign Currency Loans

 Tô Thị Tường Lan highlights the challenges faced by companies borrowing in foreign
currencies, as interest rates have risen while exchange rates fluctuate significantly,
causing disadvantages for borrowers.

Banking Perspective

 A director-general of a commercial bank explains that the disparity in interest rates is due
to high deposit interest rates offered by banks to attract capital previously, which must
remain profitable until mid-2025.
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 Different banks will take varying amounts of time to reduce interest rates, depending on
their strategies for attracting deposits in the past.

SBV's Response

 Deputy Governor of the SBV, Đào Minh Tú, emphasizes that the banking system has
abundant capital with low-interest rates, creating favorable conditions for borrowing.

 The SBV has been directing commercial banks to cut costs and profit targets to bring
down interest rates for both old and new loans since the end of 2023.

Source Vietnamnews.vn

Friday, April 19, 2024

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VIỆT NAM EARNS $1.43B FROM RICE EXPORTS IN Q1

Rice Export Performance

 In the first quarter of 2024, Vietnam exported 2.18 million tonnes of rice, earning $1.43
billion, marking a 17.6% increase in volume and a 45.5% increase in value compared to
the previous year.

 The average export price of rice also increased by 23.6% to $653.9 per tonne.

Top Export Markets

 The Philippines was the largest export market for Vietnamese rice in the first quarter of
2024, followed by Indonesia and Malaysia.

 Rice exports to the Philippines accounted for 46.4% of Vietnam's total volume and 45.5%
of the total value.

 Export prices to the Philippines increased by 27.3% compared to the same period in
2023.

Government Purchase Plan

 The government approved a plan to purchase 220,000 tonnes of rice for state reserves in
2024.

 The plan involves 22 reserve departments across the country, responsible for 196 bidding
packages to purchase domestically produced, long-grain 15% broken rice from the 2024
Spring harvest.

 Bidding sessions, both open and online, are scheduled, with a deadline set for May 2.

Bidding Procedures and Regulations

 Contractors participating in bidding sessions must provide security deposits based on the
value of the bidding packages.

 The winners of the bidding process will be announced and published by the national
bidding system.
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 Local reserve departments are responsible for reporting price fluctuations to ensure
purchase prices do not exceed regulations set by the Ministry of Finance.

Rice Exporter Distribution

 Hồ Chí Minh City has the highest number of rice exporters, followed by Cần Thơ, Long
An, Đồng Tháp, and An Giang.

 Some localities have only one qualified rice exporter, including Hà Nam, Hậu Giang,
Khánh Hòa, Lạng Sơn, and Thanh Hóa.

Source Vietnamnews.vn

Friday, April 19, 2024