ELECTRONIC INVOICING NEEDS DETAILED GUIDELINES

HÀ NỘI — Fourteen months before electronic invoicing will be made mandatory in Việt Nam, which is set for November 1, 2020, there is still much work for the Government to do. Among the most crucial tasks to be completed is providing businesses with guidelines on how to issue and use e-invoices and across-the-board implementation among key State agencies such as the Tax Department, the State Treasury, the Vietnam Directorate of Market Surveillance and insurers.

The absence of guidelines and lack of co-operation among State agencies have proven to be a major hurdle for business to completely switch to e-invoices. For example, while the tax authorities encourage business to switch to using e-invoices they may not be accepted at the State Treasury or by insurers, said BKAV head of corporate client department Nguyễn Khơ Din. The company is a leading Vietnamese firm in the field of cyber-security, software and e-solutions for governments.

“Without guidelines, businesses currently have many questions over how to issue e-invoices, including small details such as what date to issue them, whose signature to include or whether it is necessary to include a signature,” Din said.
He said Government agencies must quickly lay down a roadmap with all the tasks for businesses to complete from now until 2020 to ensure a smooth implementation of e-invoices on a national scale.

It’s also more complicated to correct mistakes made in e-invoices compared to traditional paper invoices.
“Businesses used to just issue another invoice to replace one with mistakes. With e-invoices they will have to issue separate adjustments for each mistake made in the original,” said Nguyễn Hoài Hương from the Defence Economic Technical Industry Corporation.
This, in turn, would create further problems for their customers when they need to file those in other transactions, she added.
Mạc Quoc Anh, deputy director of the Hà Nội SME Association stressed the need to create a different policy for SMEs and traditional family businesses. He said such economic enterprises often faced severe financial and infrastructure limitations, which might make it very difficult for them to adopt e-invoices.

While experts had pointed out that e-invoices would help businesses significantly cut costs and speed up transactions, Anh said many SMEs would still need convincing to make the switch to using e-invoices. He urged for more effort to be put in raising awareness about e-invoices and their economic benefits among small business owners.

VNS

 

AGRICULTURAL EXPORT VALUE UP 2% IN FIRST SEVEN MONTHS OF 2019

HÀ NỘI – The agricultural sector gained US$23.03 billion from farming, forestry and fishery exports in the first seven months of this year, a year-on-year increase of 2 per cent, according to the Ministry of Agriculture and Rural Development (MARD). The figure includes $3.55 billion of exports in July.

Major farm produce shipped overseas brought home $10.84 billion, with five billion-dollar categories including coffee ($1.8 billion), rubber ($1.1 billion), rice ($1.73 billion), cashews (nearly $1.8 billion) and fruits and vegetables ($2.3 billion).

However, the ministry said the total export value of the major agricultural products fell 8.2 per cent year on year due to a drop in several products like cashews (20.6 per cent), pepper (25.2 per cent), coffee (12 per cent) and rice (16 per cent).

The export prices of two main seafood exports, tra fish and shrimp, also dropped 3.2 per cent and 10.4 per cent to $1.16 billion and $1.73 billion, respectively, causing the total export value of seafood products to drop 1 per cent to $4.68 billion.

From January to July, shipments of the main forestry products earned the country about $6 billion, up 17.3 per cent year on year. This included $5.6 billion from wood and wooden products, up 16.1 per cent, and $264 million from bamboo and rattan products, soaring 46.6 per cent.

The ministry said global economic growth was projected to slow while agricultural development will bounce back in many countries. This combination of factors would pose a challenge to the country’s forestry exports.

Fierce competition would pull prices of exports down. Large importers of Vietnamese goods like the US, the EU, China, Japan and the Republic of Korea (RoK) had imposed strict standards on quality management, food safety and origin traceability.

The ministry would work with businesses and associations to keep a close watch on the development of international markets and increase inspections to prevent smuggling.

Besides co-ordinating with ministries and sectors to stabilise traditional export markets and expand into new ones, helping reduce dependence on single country, the ministry would give production guidance to localities to ensure their products meet importers’ traceability requirements.

Attention would also be paid to developing brands for agricultural products, particularly those exported to the Chinese market, while authorities would set up a co-ordination mechanism with the Chinese General Administration of Customs to remove bottlenecks in agricultural trade between the two countries.

Fruit, vegetable exports

The ministry also reported the vegetable and fruit industry, which showed strong export growth in recent months, nevertheless post a slight reduction in export value in the first seven months of the year, down 0.8 per cent year on year to $2.3 billion, including $269 million in July.

China was the biggest importer of Vietnamese vegetables and fruits with nearly $1.5 billion, up 1.1 per cent year on year, accounting for 71.9 per cent of the market share. It was followed by the US ($70.2 million) and the RoK ($65.3 million).

Impressive growth was seen in exports of fruits and vegetables to Cameroon (up 10.16 times), the Dominican Republic (up 8.37 times) and Guam (5.11 times).

The Agro Processing and Market Development Department said the sector would have more chances to expand its export markets thanks to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the recently signed EU-Vietnam Free Trade Agreement (EVFTA).

The department advised businesses study the opportunities and challenges of the European market and markets of the 10 CPTPP member states and improve the quality of their products.

VNS

VIETNAMESE ATHLETE CAME SECOND IN BELGIAN CYCLING EVENT

Nguyễn Thị Thật (left) sprints to second place at the 25th Erondegemse Pijl cycling tournament. — Photo procyclingstats.com
HÀ NỘI — Nguyễn Thị Thật finished second at the 25th Erondegemse Pijl cycling tournament in Belgium yesterday.

The Asian champion, under jersey of the Belgian Lotto Soudal Ladies club, completed the 126km stage from Erpe – Mere to Erondegem with a time of 3hr 11.26min.

Thật was just a hair’s breadth behind winner Monique Van de Ree of BTC City Ljubljana of Slovenia. Sofie de Vuyst of Parkhotel Valkenburg club of the Netherlands finished third.

The Erondegemse Pijl event falls under the International Cycling Union umbrella which delivers points to high-ranked finishers.

This year it attracted more than 150 athletes.

Thật grabbed 30 points to improve her world ranking. She is currently No 120 and needs to enter top 50 to earn a spot in the Olympics 2020 in Tokyo.

VNS

VN WANTS RELATIONS WITH EU TO CONTINUE GROWING: PM

HÀ NỘI Việt Nam will spare no effort to promote its relations with the European Union (EU), Prime Minister Nguyễn Xuân Phúc said while meeting with Federica Mogherini, Vice President of the European Commission and High Representative of the EU for Foreign Affairs and Security Policy, in Hà Nội yesterday.

PM Phúc said ties between his country and the international body have seen positive recent development, strengthening the EU-ASEAN partnership and making significant contributions to regional peace and stability.

The two sides have carried out a wide range of co-operation mechanisms, including the joint committee under the EU-Việt Nam Comprehensive Partnership and Cooperation Framework Agreement (PCA) and the EU-Việt Nam Human Rights Dialogue, he said, adding that they have begun implementing the Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade (VPA/FLEGT).

The PM spoke praised the signing of the EU-Việt Nam Free Trade Agreement (EVFTA) and the EU-Việt Nam Investment Protection Agreement (EVIPA), and proposed the European Parliament quickly ratify the pacts so both sides can begin to take advantage of co-operation opportunities and affirm their commitments to free trade and investment.

He also asked the EU to continue assisting Việt Nam in working towards the removal of the “yellow card” warning on Vietnamese seafood and in the fight against illegal, unreported and unregulated (IUU) fishing. He suggested the EU create favourable conditions for Vietnamese businesses to expand their markets in the EU.

Hailing the fruitful defence co-operation between the two sides, PM Phúc expressed his hope that together with other bilateral agreements on science, technology and environmental protection, Việt Nam and the EU will ink a Framework Participation Agreement (FPA) for peace, co-operation and development.

Welcoming the EU’s and Mogherini’s interests in the Southeast Asian region, PM Phúc said he expected that EU-ASEAN ties and the Việt Nam-EU cooperation will be further enhanced in 2020 when Việt Nam assumes the role of ASEAN Chair and becomes a non-permanent member of the United Nations Security Council (UNSC) for the 2020-21 tenure.

Việt Nam applauds the EU’s stance on supporting freedom, security and safety of navigation in the East Sea, he said, recommending the EU maintain its viewpoint on heightening respect for international law, including the 1982 United Nations Convention on the Law of the Sea (UNCLOS), settling disputes through peaceful means and not complicating the situation, contributing to maintaining peace, stability and freedom and safety of navigation and aviation in the area.

Mogherini, for her part, stressed that the Việt Nam-EU ties have developed strongly in recent years, thereby helping to consolidate the EU’s relations with ASEAN.

She highlighted her expectations about the EVFTA and the EVIPA, saying the deals have laid the foundations for the two sides to step up bilateral relations in the future.

Speaking highly of Việt Nam’s efforts to improve ties with the EU across the fields of economy, culture, labour and cybersecurity, she said they provide a good basis for the European Parliament to adopt the agreements.

Meeting with top legislator

The EC’s Vice President met Chairwoman of the Vietnamese National Assembly Nguyễn Thị Kim Ngân later the same day.

NA Chairwoman Ngân said Việt Nam always considers the European Union one of its leading partners, especially in economics, trade and investment.

Ngân expressed her delight at new steps of development in the bilateral comprehensive cooperation and partnership.

Following Việt Nam’s approval of a resolution on its accession to the International Labour Organisation’s Right to Organise and Collective Bargaining Convention No.98 in June, the country’s legislature is working with the Government to speed up the consideration and approval of the organisation’s Conventions No.108 and 87, she stated, adding that the move reflects its determination and efforts to implement commitments related to labour standards, which are mentioned in the EVFTA.

The top legislator voiced her hope that the European Parliament and European member states soon ratify the EVFTA and EVIPA to realise both sides’ commitments to liberated trade and investment.

She told the guest that she has urged the Government to complete procedures so that the legislature can ratify the two deals in October.

Mogherini affirmed the EU’s continued support for Việt Nam, especially in 2020 when it assumes the roles as the ASEAN Chair, a non-permanent member of the UN Security Council in the 2020-21 tenure, and the Chair of the ASEAN Inter-Parliamentary Assembly (AIPA).

Both host and guest said that the signing and ratification of legal documents and the high frequency of visits by the two sides’ leaders demonstrate the priority of each side to bilateral relations in its foreign policy, and open new prospects in bilateral ties.

Regarding the East Sea issue, Ngân affirmed Việt Nam’s consistent stance of solving disputes by peaceful means in accordance with international law, including the 1982 UN Convention on the Law of the Sea (UNCLOS).

Sharing the view, Mogherini stressed the importance of respecting international law, particularly the UNCLOS 1982, in ensuring aviation and maritime freedom.

According to Mogherini, lying on an important maritime route, the East Sea brings about both economic and security benefits for numerous nations, including those in the EU.

Later the same day, she met Vietnamese Deputy Prime Minister and Foreign Minister Phạm Bình Minh.

VNS

EVFTA BRINGS BENEFITS, CHALLENGES TO APPAREL SECTOR

The garment-textile sector will gain significant benefits but, at the same time, face several challenges brought about by the EU-Vietnam Free Trade Agreement (EVFTA) once it takes effect, experts said at an online conference on August 2.

Luong Hoang Thai, Director of the Ministry of Industry and Trade (MoIT)’s Multilateral Trade Policy Department, highlighted the potential advantage.

He said that all tariff imposed on garment-textile products will gradually go down to zero percent, with 77 percent of the goods seeing their tariff immediately eliminated right after the pact comes into force.

The EU is the top apparel importer in the world and the second biggest import market of Vietnam’s garment-textile products, he added.

Nguyen Thi Thu Trang, director of the World Trade Organisation (WTO) Integration Centre at the Vietnam Chamber of Commerce and Industry (VCCI), said the sector’s shipments to EU reeled in 5.6 billion USD in revenue.

She said the figure was high but accounted for only 2.02 percent of the bloc’s total value of garment and textile imports, adding that this means room for growth remains extensive.

Chairman of the Vietnam Textile & Apparel Association (VITAS) Vu Duc Giang pointed to a shortage of supplies, as the sector needs to meet the agreement’s requirements for product origin.

He also spoke about difficulties facing firms that want to invest in fabric dying but are being rejected by localities over environmental concerns.

Giang told local authorities not to worry and explained that foreign partners have strict requirements for environmental protection and wastewater treatment technologies in the world have reached an advanced level.

He asked the MoIT to announce at an early date a list of tariff lines applied for different types of garment-textile products.

The VITAS will organise workshops to update relevant information for businesses in the sector.

VNS