Day: June 19, 2023

The Election Commission (EC) of Thailand on June 19 endorsed all 400 constituency MPs-elect and 100 party-list MPs-elect, and reserved its right to investigate electoral fraud involving any of them within a year.

According to the endorsed vote results, the Move Forward Party won the most House seats, 151, followed by the Pheu Thai Party (141), Bhumjaithai (71), Palang Pracharath (40), United Thai Nation (36), Democrat (25) and Chartthaipattana (10).

EC Secretary-General Sawaeng Boonmee said newly elected MPs could report at the parliament from June 20-24.

By law, within 15 days of the EC’s endorsement of the new MPs, the parliament must convene to vote for the House speaker, and the process of voting for the new Prime Minister and the establishment of the new government will follow.

The new parliament is therefore now expected to convene by July 3./.

Source: Vietnam News Agency

Close to 836 billion VND (35.53 million USD) were donated and more than 1.16 million needy people were aided in May – the National Humanitarian Month this year.

The figures were 11 times and 2.08 times higher than the set targets, respectively.

According to the Central Committee of Vietnam Red Cross Society (VRCS), the 2023 programme saw the participation of many organisations, individuals, businesses, and benefactors, mobilising the biggest amount of financial donations and helping the highest number of vulnerable people among all editions to date.

Themed “From our heart – Joining hands in building humanitarian community,” the peak period of the month was from May 8-19, with various activities taking place nationwide.

The programme was fist held by the VRCS in 2018. So far, it has raised nearly 3 billion VND and supported 5.4 million people in need./.

Source: Vietnam News Agency

Vietnam’s consumer price index (CPI) inflation continued to trend down for the fourth month, declining from 2.8% in April to 2.4% in May, according to the Vietnam Macro Monitoring report released by the World Bank on June 19.

Core inflation remained elevated, at 4.5% in May, compared to 4.6% in April.

The report said retail sales continued to expand at 11.5% annually in May, comparable to growth rates in the two previous months. Sales of goods improved from 9.7% in April to 10.9% in May.

Meanwhile, the sales of services declined from 19.2% in April to 7.6% in May. Although exports of goods increased by 4.3% between April and May, it was still 6% lower than a year ago due to weak external demand. Imports fell by 18.4 percent in May, reflecting continued slowdown in demand for foreign inputs by both FDI and domestic firms. The continued contraction of imported inputs may indicate that producers expect weak export performance in the coming months.

FDI disbursement registered 1.8 billion USD in May, a slight improvement from April, and comparable to a year earlier. To support the economy, the State Bank of Vietnam (SBV) cut policy rates for the third time since March. Refinancing interest rate was reduced from 5.5% to 5% and overnight lending facility rate from 6% to 5.5%. Credit growth continued to decelerate from 9.2% in April to 9% in May, reflecting slack credit demand.

The monthly budget balance registered a large deficit of about 2 billion USD last month. Revenue collection continued to decrease by 35.8%, reflecting base effects due to high revenue from sales of land and property. Meanwhile, public expenditure also increased by 27.8% year-on-year in May.

The WB said continued weak external demand and uncertainties are adversely affecting the economy, translating into contraction in exports and imports, and a slowdown in industrial production. While investment disbursement (proxied by retail sales) remains robust and comparable to pre-pandemic levels, credit growth continues to slow, reflecting weak credit demand. If global financial conditions tighten more, external demand may weaken further. Northern Vietnam started experiencing brownouts in late May, which, if not addressed promptly, could impact the economy.

As inflation appears to be tapering, the SBV eased monetary policies to support the economy. However, monetary policy authorities will need to closely monitor divergence in the monetary policy stance between Vietnam and other countries as it is creating pressures on capital flows and exchange rate. Accelerating public investment disbursement (including for National Target Programmes) would support aggregate demand and economic growth in the short run. At the same time, prioritising investments in digital and green technologies, infrastructure, and in human capital will help promote sustainable long-term development.

As manufacturing exports have slowed and employment in manufacturing has been affected, it would be important to quickly identify and support impacted workers and families through the social protection system. Streamlining administrative procedures and removing regulatory hurdles will help promote business activities and investments needed for economic growth, it added./.

Source: Vietnam News Agency

The EU’s ban on deforestation-linked imports are causing concern among Vietnamese producers as the requirements to trace commodities back to their origin can push up costs and entail finding alternative suppliers.

The EU Deforestation-free Regulation (EUDR) will cover imports of various commodities, including cocoa, coffee, palm oil, and rubber, plus products derived from them, such as chocolate, tires, and shoes.

The extent of data collection imposed on producers will increase significantly as the regulation requires the visualisation of GPS for every single farm and ‘due diligence’ reports showing the origin of their products, their legality, and the conditions of their production.

Tran Thi Quynh Chi, Regional Director of the Sustainable Trade Initiative (IDH), believed that EUDR would put more pressure on Vietnamese producers as meeting its traceability requirements demands a comprehensive system to trace their products back to farms.

“Consumers are getting more serious about sustainability. Their buying patterns are shifting towards environmentally-responsible products to meet carbon-neutral targets,” said Chi.

Nguyen Nam Hai, Chairman of the Vietnam Coffee Cocoa Association, said the EU is Vietnam’s largest coffee importer, consuming 40% of the country’s coffee export annually. In 2022, Vietnamese coffee exported to the EU topped 689,000 tonnes, up 26% year-by-year.

He believed that EUDR would raise new challenges for around 1.3 million coffee farmers in the sector, including the accessibility to technology and ranges of costs. The same goes for coffee companies, which play a major role in the supply chains.

“Vietnam should push the EU for a deferral of its effective date to give coffee companies more time to prepare for the regulation,” said Hai.

It is also worth noting that the total area of coffee at high risk under EUDR was estimated at 13,000 ha.

Le Duc Huy, Director-General of Simexco Daklak, said EUDR had not taken his company by surprise because it had been preparing for the change for many years.

Simexco Daklak was the first company in 2012 to cooperate with IDH in promoting sustainable agriculture in the Central Highlands.

Its decade-long effort in building deforestation-free supply chains bore fruits as its coffees had gained a huge advantage in the international markets over those linked to deforestation.

Nguyen Phu Hung, Chairman of the Vietnam Forestry Science and Technology Association, urged the Ministry of Agriculture and Rural Development to send an appeal to the EU, calling for support to coffee farmers who cannot afford the costs associated with meeting EUDR standards.

He also called for training courses to keep the farmers well-informed about the anti-deforestation regulation.

According to a representative from the Association of Vietnam Timber and Forest Products the EU imports about 500 million USD of Vietnamese wood-derived products per year.

He said EUDR would not create as much compliance burden on timber companies as it was concerned because the practice of converting natural forests into plantations had become a thing of the past.

All timber companies have to do is ensure the traceability of their products as required by EUDR.

Tran Thanh Hai, Deputy Director of the Agency of Foreign Trade, said the EU had raised the bar considerably on wood-derived products by ratifying EUDR.

Under the regulation, products that have been made from forest degradation-inducing wood would be banned from EU markets. Even wood collected from reforested land would be no exception.

EUDR would take effect around December 2024 and January 2025. Microenterprises and small enterprises would have an additional six months to comply with the regulation’s requirements.

Rui Ludovino, First Counselor in charge of climate action, environment, employment, and social policy at the Delegation of the European Union, said Vietnam would find itself among low-risk countries under EUDR thanks to its proactive approach to fighting deforestation.

For instance, Vietnam entered into the Voluntary Partnership Agreement on Forest Law Enforcement, Governance, and Trade (FLEGT) with the EU in 2018.

The deal gives Vietnamese wood-derived products a big advantage over those from non-agreement countries: FLEGT-licensed products are considered legal under EU Timber Regulation, making it easier for Vietnamese producers to enter EU markets.

He said EUDR doubles the EU’s effort in promoting deforestation-free supply chains by requiring companies to produce a ‘due diligence’ statement and ‘verifiable’ information proving their exports had not been made from wood grown on deforested land.

Patrick Haverman, Deputy Resident Representative UNDP in Vietnam, suggested the next step for Vietnam in regard to EUDR: review the legal framework and make necessary revisions to align it with the anti-deforestation regulation.

He also called for assistance to fend farmers off the costs incurred by EUDR-induced changes in farming practices.

Minister of Agriculture and Rural Development Le Minh Hoan said Public-Private Partnerships hold the key to the commercial success of Vietnamese agricultural products abroad in the light of EUDR.

“The regulation is indicative of a global consumer behaviour shift towards environmentally-friendly products. It’s time to kick-start a sector-wide restructuring,” said the Minister./.

Source: Vietnam News Agency

The 15th National Assembly entered the 18th working day of the fifth session in Hanoi on June 19 under the chair of NA Chairman Vuong Dinh Hue, which was televised nationwide.

In the morning plenary session, presided over by NA Vice Chairman Nguyen Khac Dinh, lawmakers discussed the revised Housing Law. Minister of Construction Nguyen Thanh Nghi explained several matters raised by deputies.

In the afternoon, member of the NA Standing Committee and Chairman of the NA’s Finance-Budget Committee Le Quang Manh presented a report on collecting feedback on the Resolution on the approval of the State budget settlement for 2021.

Later, 478 lawmakers cast votes on the Resolution, with 473 voting yes, or 95.75% of the total NA deputies.

After Manh delivered a report on examining the amended Law on Prices, 476 voted to approve the law, including 459 or 92.91% of the total lawmakers giving their nods.

Member of the NA Standing Committee and Chairman of the NA’s Economic Committee Vu Hong Thanh presented a report on collecting feedback on the draft revised Law on Real Estate Business.

The legislators then discussed in group the bill.

As scheduled on June 20, the NA will convene a plenary session and pass the revised Law on Cooperatives, the Resolution on the investment plan for the road project connecting National Highway 27C with the provincial Road DT.656 in Khanh Hoa province, and the Law on Civil Defence, and the revised Law on Consumer Rights Protection.

They are also due to mull over the draft Law on Forces Safeguarding Security and Order at the Grassroots Level, and the draft revised Law on Water Resources./.

Source: Vietnam News Agency

Vietnam treasures and wishes to boost its relationship with the European Union (EU) – a leading important partner in Vietnam’s foreign policy, National Assembly Chairman Vuong Dinh Hue has said.

During his reception in Hanoi on June 19 for the European Parliament Delegation for Relations with the Countries of Southeast Asia and ASEAN (DASE) led by its Chairman Daniel Caspary, Chairman Hue spoke highly of positive and significant outcomes in the Vietnam-EU relationship across the pillars of politics, diplomacy, economy-trade-investment, agro-forestry-fisheries, national defence-security, development cooperation and human rights dialogue.

Vietnam always supports the strengthening of ASEAN-EU strategic partnership. Vietnam, including its National Assembly, is ready to play an active role in this process, he said.

Caspary, for his part, briefed the host about the delegation’s agenda with relevant Vietnamese agencies, including a mechanism on cooperation in the implementation of the Vietnam-EU Free Trade Agreement (EVFTA) and in certain areas within ASEAN, as the EU-ASEAN relationship has been upgraded to a strategic partnership.

Stressing that both sides have been experiencing extremely challenging times due to COVID-19 and global conflicts, Caspary believed that in such context, the EU-Vietnam ties will play an increasingly important role. He expressed his expectations that two-way trade will continue to increase in the future, and parliamentary cooperation plays a crucial role in the overall cooperative relationship between the EU and Vietnam.

DASE members said mutual visits and delegations exchanges will contribute to raising mutual understanding, trust and closer ties, bringing prosperity to the people on both sides. The consistent rise in bilateral trade volume over time demonstrates the importance of the EVFTA.

They expressed their interest in the fisheries sector, policies promoting the development of Vietnam’s regions while ensuring the quality of growth, solutions and orientations to building eco-friendly energy programmes.

According to Chairman Hue, Vietnam is investing significant resources into three national target programmes on sustainable poverty reduction, new rural development, and socio-economic development in ethnic minority and mountainous areas. Among these, the Vietnamese National Assembly is conducting the highest-level supervision on the implementation of the NA’s Resolutions on the National Target Programmes on new rural development and sustainable poverty reduction for 2021-2025, and socio-economic development in ethnic minority and mountainous areas for the 2021-2030 period.

On regional and global issues of shared concern, Hue suggested that the EU continue playing an active role and contribute with concrete actions to ensure the rule of law, freedom of navigation and overflight in the East Sea. He also urged for enhanced cooperation between the EU and ASEAN on this matter.

The host wished that both sides would continue working closely together, particularly sharing parliamentary experience, improving legal frameworks and addressing global challenges, and at important multilateral and regional parliamentary forums.

Caspary said the EU is making efforts to seek approval from the remaining countries’ parliaments for the EU-Vietnam Investment Protection Agreement (EVIPA).

He hoped that the EU’s “Global Gateway” initiative will contribute to a strong connection between the EU and ASEAN, as well as between the people of both blocs. The Asia-Europe Parliamentary Partnership (ASEP) meeting, scheduled to take place in Europe this year, will provide an opportunity for both sides to engage in discussions and exchanges to further boost collaboration.

On the occasion, Hue conveyed his invitation to a delegation of young EP members to the ninth Global Conference of Young Parliamentarians which is to be jointly organised by Vietnam and the Inter-Parliamentary Union this September./.

Source: Vietnam News Agency

The State Bank of Vietnam (SBV) has delivered cuts to its policy rate three times in less than three months, each time of 50 basis points, to assist the country’s economic growth via the credit channel.

According to a release by HSBC Vietnam, after becoming the first Asian central bank to cut its policy rate in early April, the SBV cut again in late May before making another announcement on 16 June. Effective from June 19, the SBV’s refinancing rate is at 4.5%.

The move is expected continue to reduce financing costs for businesses and households, thus spurring business investment and supporting consumer sentiment.

HSBC said 2023 has been a tough year for Vietnam’s economy. After seeing sharply slowing growth of only 3.3% y-o-y in Q1, Vietnam continues to brace for strong headwinds. While high frequency indicators point to no further deterioration, there are also no clear signs that Vietnam’s economy is bottoming out.

In addition to the urgency of supporting growth, the June 16 decision reflects two of the SBV’s considerations. First, it has maintained its optimistic tone about inflation prospects, again citing that “inflation is under control”.

Indeed, inflation has been consistently cooling down, recently moderating to below 3% y-o-y. This is further away from the SBV’s 4.5% ceiling, thanks to supportive global energy prices and easing local food inflation. The 3% hike of the average retail electricity price at the start of May, which typically factors in inflation with a one-month lag, will also pose manageable upside risks. Given recent developments, HSBC announced the cut of 2023 inflation forecast to 2.6% (previously: 4.0%).

The second key consideration is currency stability. Despite recent strength in US dollar, Vietnamese dong has remained relatively stable, thanks to its improving current account dynamics. While Vietnam has been suffering from trade headwinds, its imports have plunged much more than exports, given its import-intensive nature in the manufacturing sector.

All in all, the HSBC said it slightly trimmed its 2023 growth forecast for Vietnam to 5.0% (previously: 5.2%), taking into account a protracted and a deeper-than-expected trade downturn. The bank now expect a meaningful economic rebound from Q4, warranting further monetary support.

After delivering an accumulative of 150 basis point rate cuts in Q2, HSBC also expected one more 50 basis point cut in Q3. This will likely bring Vietnam’s policy rate to 4.0%, reversing all tightening efforts in 2022, also on par with its rate cuts during the pandemic.

However, HSBC experts said there is also a risk that further cuts may not be needed in the last six months, if growth bottoms out earlier than expected./.

Source: Vietnam News Agency

The Vietnamese and Lao Governments’ special working committees on search, collection and repatriation of remains of Vietnamese voluntary soldiers and experts who sacrificed in Laos during wartime convened their 28th meeting in Vientiane, Laos on June 19.

The Vietnamese side was led by permanent member of the Central Military Commission and Deputy Minister of National Defence Sen. Lieut. Gen Vo Minh Luong while the Lao side was headed by Deputy Minister of National Defence and Chairman of the General Department of Politics under the Lao People’s Army Sen. Lieut. Gen Thongloi Silivong.

They said during 2022-2023 dry season, Vietnam’s search teams found and repatriated 194 sets of remains of fallen soldiers, including 10 who have been identified by name and hometown.

During 2023-2024 dry season, the Vietnamese side will continue maintaining eight search and recovery teams in Lao cities and provinces. Additionally, both sides will urge the public to provide information on fallen soldiers and the burial sites of Vietnamese voluntary soldiers and experts who sacrificed their lives in Laos during various periods of war.

In conclusion, they signed the minutes of the 28th meeting and agreed to jointly organise a ceremony to honour collectives and individuals in Laos who made outstanding contributions to the effort during 2013-2020.

In the afternoon the same day, Lao Deputy Prime Minister and Defence Minister Gen. Chansamone Chanyalath hosted a reception for Luong and his entourage.

Luong informed the host about the outcomes of the 28th meeting to the Lao leader and wished that in the near future, the Lao Party, State, people and particularly the Deputy PM would continue offering support to the search and repatriation of remains of Vietnamese voluntary soldiers and experts.

Agreeing with Luong’s proposals, Chanyalath expressed his profound gratitude to the Vietnamese Party, State and people for standing side by side with the Lao counterparts during both wartime and peacetime./.

Source: Vietnam News Agency