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TOP 10 OUTSTANDING SOCIO-ECONOMIC MILESTONES IN VIETNAM IN 2021

procedures being processed completely izen having a digital identity and QR code; being active on e-commerce floors and
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online, with people only required to declare and striving towards all citizens having a digital applications selling goods not only
data once; 100 per cent of State agencies smartphone; among others. 2021 was the in Vietnam but also in other countries are
providing services 24/7 and being ready to first pivotal year on the journey to forming no longer rare occurrences. Digital trans-
provide online services at any time; 100 per a digital government by 2025. Due to the formation has taken place strongly, as
cent of officials having digital identities for heavy impact of Covid-19, a range of activities, affirmed by Minister of Information and
work; at least 20 per cent of administrative administration procedures, and management Communications Nguyen Manh Hung:
procedures of State agencies being reduced by the government, ministries and localities “The year 2021 has pushed the whole country
compared to the current number; each cit- are gradually transforming to digital. Farmers into digital transformation.”
MEASURES INTRODUCED TO CONTROL CORPORATE BOND MARKET
Although the “heat” has been reduced com- strengthen management, step up inspections,

pared to 2020, Vietnam’s corporate bond CORPORATE BOND ISSUANCE and handle violations in the market. Inspec-
market continued to boom in 2021. Accord- STRUCTURE, 2019-2021 (%) tion teams at issuers and securities compa-

ing to data from the Ministry of Finance, as 17.1 17.8 Other nies have also been coordinated by the State
of November, the volume of corporate bond 28.8 Real Estate Securities Commission. Based on inspection
issuances reached over VND495 trillion 38 40.1 44.2 Other financial results at nine securities companies and
($27.7 billion), o 3.7 5.3 institutions two issuers, the Commission issued admin-
8f which private issuances
2.4

accounted for 94.5 per cent. Banks and real 41.2 28.7 32.7 Banking istrative violations against the VsetGroup
estate enterprises continued to occupy first Corporation, the Apec Group Joint Stock
2019 2020 6M 2021
and second positions in terms of issuance Source: SSI Company, and the Vietnam International
volumes. However, the heat in the corporate Securities Joint Stock Company (VIS). In
bond market in 2021 was partly due to the especially the Ministry of Finance, contin- terms of legal policy, the central bank has
high issuance volume, with risk warnings uously sent out warnings about the potential issued Circular No. 16 and the Ministry of
and quality improvement moves coming risks of corporate bonds to investors. The Finance is developing a draft Decree to
from State management agencies. Never Prime Minister also issued a written request replace Decree No. 153 on enhancing the
before has the State Bank of Vietnam, and to relevant ministries and branches to quality of the corporate bond market.

LAND PRICES SURGING
Plot 3-12 reached a record VND2.43 billion cial Dispatch No. 1767/CD-TTg, directing
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($104,000) per sq m. These prices make ministries, branches, and units to effectively
Thu Thiem one of the most expensive manage land, real estate, and housing in
places in the world. Land in many other accordance with legal practice and regu-
areas were also auctioned at much higher lations. The People’s Committees of
prices than the starting price. Many organ- provinces and centrally-run cities are to
izations, individuals, and real estate review the organization of land use rights
exchanges colluded with each other to auctions in their localities to ensure com-
Prices at land auctions boomed in many hold land, “create waves”, and “push up pliance with the law, publicity and trans-
localities around Vietnam. Winning bids prices” to make money, and this had a parency, promptly detect and strictly handle
on four plots of land in the Thu Thiem negative effect on social security and made any legal violations in land auctions, and
new urban area in Ho Chi Minh City’s it difficult to attract investment in local prevent anyone from taking advantage of
District 2, covering 30,000 sq m, were provinces. In this context, at the end of auctions to cause market disturbances or
VND37.35 trillion ($1.6 billion), in which December, the Prime Minister issued Offi- benefit from profiteering, etc.

VIOLATIONS IN PRODUCTION AND TRADING OF COVID-19 TEST KITS AT VIET A TECHNOLOGY CORPORATION
The alleged collusion to inflate Covid-19 chasing agencies in return for them choos-
test kit prices between the Ho Chi Minh ing Viet A as their test kit provider and
City-based Viet A Technology Corporation agreeing to the prices fixed by the company.
(Viet A Corp) and the Center for Disease As found by the investigation conducted
Control (CDC) in some cities and provinces by the Hai Duong CDC, Viet A supplied it
caused a stir throughout Vietnam. The with test kits in advance and the bidding
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case strongly affected the formalities came later to legitimize the
millions of people while the pandemic procurement. The Hai Duong CDC paid
raged, affecting the lives of all families, for such test kits using the province’s
especially the poor. Viet A Corp sold such budget funds allocated to the center for
kits to many CDCs and medical facilities Covid-19 control missions. From February istry of Public Security (MPS) coordinate
in 62 cities and provinces, earning nearly to December, the CDC paid close to with relevant agencies and localities to
VND4 trillion ($174 million). Phan Quoc VND152 billion ($6.61 million) to Viet A speed up and expand the investigation
Viet, founder and CEO of Viet A Corp, Corp through five contracts. Viet paid into test kit price gouging by Viet A. The
directed his employees to overstate the kickbacks totaling some VND30 billion Ministry, in coordination with localities
price of production equipment and input ($1.3 million) in the period. On December and agencies, promptly started investigating
materials to raise the selling price of a 22, the Office of the Government issued Viet A and its accomplices, who were
test kit to VND470,000 ($20.4). He paid Document No. 9373/VNCP-NC, conveying accused of violating bidding regulations
large sums of money to leaders of pur- the Prime Minister request that the Min- and test kit price gouging.

www.en.vneconomy.vn JANUARY 2022 | VIETNAM ECONOMIC TIMES | 5