VIETNAM BUSINESS NEWS DECEMBER 9

Vietnam's cold storage real estate segment to reach US$295 million in 2025

Cold storage warehouse market forecast to grow 12 percent a year: Savills Vietnam hinh anh 1

Vietnam's cold storage real estate segment is developing and is expected to reach $295 million in 2025 with a growth rate of 12 percent a year, according to real estate consultancy Savills Vietnam.

In spite of the increasing demand, the country had only 48 cold storage facilities with some 600,000 shelves and over 700 refrigerated trucks. The rental price increased rapidly from 52 USD in early last year to $87 per tonne this year.

Cold storage real estate in the southern provinces is considered to be more developed due to the robust demand for storage food, seafood and retail items. However, northern localities have seen a boom in cold 

10 tonnes of star apples exported to US market

Ke Sach district in the Mekong Delta province of Soc Trang recently shipped four tonnes of star apples to the United Sates. Local export enterprises collected star fruits from farms throughout the locality at a price of VND30,000 per kg, before packing and preserving them for exports to the US.

At the current selling price, farmers are able to earn VND450 million annually, a figure 10 times higher than rice cultivation. At present, the province has exported a total of 10 tonnes of star fruit to this potential market. In order to export to the US, these farms are growing over 1,900 hectares of star apples, all of which have been verified and labeled with code stamps as a means of tracing their origins. 

M&A deals boost VN logistics industry's competitiveness

Logistics enterprises are being forced to consider merger and acquisition (M&A) plans in order to increase their scale in terms of human resources, capital, and management skills to cope with the increasingly tough competition.

This comes after a series of M&A deals in the logistics sector were recently unveiled, with Duong Minh Logistic receiving capital of US$15 million from an unnamed foreign investor during the first half of the year. Similarly, after announcing the merger in late May, GoTo, Gojek, and Tokopedia said they would co-operate across three spheres, with priority being given to logistics and the nation being considered one of the major markets.

The Vietnamese logistics industry has attracted the participation of 4,000 domestic enterprises and 25 foreign corporations thanks to improved infrastructure and management technology. However, foreign investors continue to face a number of hurdles in terms of legal regulations, particularly as they are not allowed to hold more than 49% of shares in a public company.

Tra Vinh provides VND88.5 billion support package to SMEs

Tra Vinh Provincial People's Committee will support small and medium enterprises (SMEs) in the province from 2022 to 2025 with a total budget of VND88.5 billion. With the project, the city set the target of having more than 2,000 new businesses established.

Sugarcane sector eyes prosperous year

The Vietnam Sugar and Sugarcane Association forecasts that the 2021-22 crop year will be a prosperous year for the domestic sugar industry thanks to efforts to control smuggling and anti-smugglimg and anti-subsidy duties imposed on sugar imported from Thailand.

The domestic wholesale price of sugar is currently more than VND20,000 (US$0.9) per kg, the highest price in the past five years. Prices have risen for various reasons. The global sugar price level rose sharply to $560 per tonne, nearly $100 higher than last year. In addition, the Ministry of Industry and Trade decided to impose anti-dumping and anti-subsidy duties on refined and raw sugar imported from Thailand after a surge in imports in 2020 hurt the local sugar industry.

Shares climb on the back of financial-banking stocks on Dec. 8

Vietnamese stock markets ended Wednesday on a positive note, largely led by gains in financial shares and heavy-weight stocks.

On the Ho Chi Minh Stock Exchange (HoSE), the market benchmark VN-Index gained 0.42 per cent to end at 1,452.87 points. It had gained 2.35 per cent to end Tuesday at 1,446.77 points. The market's breadth was neutral with 207 gainers and 222 losers. As many as 771 million shares were traded on the southern bourse, worth nearly VND21.6 trillion (US$941.8 million).

The VN30-Index, tracking the 30 biggest stocks on HoSE, gained 0.23 per cent to end at 1,516.16 points. Nineteen out of 30 stocks in the VN30 basket posted gains while 10 declined.

On the Ha Noi Stock Exchange (HNX), the HNX-Index rose 0.75 per cent, to 449.74 points. It had risen 2.42 per cent, to end Tuesday at 446.41 points. During the session, investors poured over VND3.15 trillion into the market, equivalent to a trading volume of 121.2 million shares. 

HCM City wants to welcome foreign travelers back this month

The city has agreed with the Ministry of Transport’s proposal to resume international air routes and requested the Prime Minister to allow it to welcome international visitors from December 2021. 

The city authorities said many local companies have developed plans to engage in the operation of international flights to/from Ho Chi Minh City via Tan Son Nhat International Airport. The city has 61 hotels with a total of 6,183 beds designated for quarantining incoming visitors and is to add new paid isolation sites. HCM City is capable of receiving foreign visitors and organizing concentrated medical isolation, said the document.

The city also proposed piloting regular international commercial flights to/from Tan Son Nhat International Airport in the first phase from December. It is considering entry conditions for incoming passengers with a vaccine passport from countries and regions.

Vietnam's agro-forestry-fishery exports in 2021 likely to exceed US$44 billion 

Following robust export growth recorded in November, the agro-forestry-fishery sector is anticipated to rake in over US$47 billion from exports this year, US$5 billion higher compared to the set target by the Government.

The total import-export turnover of the agro-forestry-fishery industry throughout the 11-month period was estimated to stand at roughly US$82.67 billion, representing a year-on-year increase of 24.7%, of which exports surged by 14.2% to approximately US$43.5 billion.

With export turnover inching up by 14.2% to nearly US$43.5 billion during the reviewed period, the agricultural industry is likely to exceed the export target of US$44 billion this year.

Inaccurate information about China halting imports of local fruit and vegetables

The Vietnam Fruit and Vegetable Association (Vinafruit) have rejected information regarding China halting the import of Vietnamese fruit and vegetables for six weeks.

At present, China represents the largest import market for Vietnamese fruit and vegetables, with approximately 80% of the nation’s fruits and vegetables being shipped by sea.

However, the northern neighbour is in the process of tightening pandemic control measures through its "Zero COVID" strategy and has therefore made a decision to strictly enforce isolation regulations for crew members.

As a result of this policy, several shipment vessel operators through ports in southern China have decided to suspend services for at least six weeks during the Lunar New Year holiday. Due to this the transportation of goods through numerous seaports is set to become more difficult and put greater pressure on exports by road.

Furthermore, this will create difficulty for the export of fruit and vegetables to other countries and territories through transshipment ports located in southern China, not only for Vietnamese exports.

VN wants to boost export to South Africa

Representatives of over 120 Vietnamese enterprises operating in agriculture, food, and interior and exterior decoration participated in an online consultation session on export to South Africa on December 8. 

According to head of the Vietnam Trade Office in South Africa Pham Thanh Hai, all Vietnamese products have an opportunity to enter the South African market because consumers in this southernmost African country are interested in foreign products. Vietnamese small and medium enterprises specialising in textiles and garment, bedding, vegetables and fresh fruit should seek opportunities to export their products to the country.

Two-way trade between Vietnam and South Africa reached over 1 billion USD in the first 10 months of 2021. The two countries are striving to lift their trade to 1.42 billion USD in the whole year. Typical products of Vietnam sold in the South African market are computers, phones, electronic components, footwear, pepper, cashew nuts, rice, and plastic.

 

Reference exchange rate down VND41 on Dec. 8

The State Bank of Vietnam set the daily reference exchange rate at 23,196 VND/USD on December 9, down 41 VND from the previous day. With the current trading band of +/-3 percent, the ceiling rate applicable to commercial banks during the day is 23,891 VND/USD and the floor rate 22,500 VND/USD.

Int'l industrial machinery expo to open in HCM City

The Vietnam International Exhibition on Industrial Machinery Equipment, Technology and Products, or VINAMAC Expo 2021, will be held at the Saigon Exhibition and Convention Centre, Ho Chi Minh City, from December 15 to 18.

The exhibition with the theme ‘Moving forward together’ will have more than 300 booths set up by 200 Vietnamese firms and foreign companies and international organisations from the Czech Republic, Germany, Russia, Switzerland, the Republic of Korea, China, Japan, and ASEAN member countries.

Besides showcasing industrial machinery and equipment, technology and products, the expo will also feature a seminar on ‘Safe adaptation - Economic recovery after the pandemic towards green development and suitable for circular economy,’ a business forum on control and automation, a welding competition, business matchings, and technology and product introduction by associations and exhibitors.

Amcham businesses honoured for social activities

The American Chamber of Commerce (AmCham) Vietnam on December 8 held an award ceremony honouring member companies and organisations with outstanding activities in corporate social responsibility (CSR) this year.

In the seventh year of the award, 39 companies supporting Vietnam’s COVID-19 fight were honoured, including 3M Vietnam, ActionAid, Citibank, Coca-Cola and ExxonMobil.

Amcham Vietnam is joining hands with the global taskforce on pandemic response to offer diagnosis and testing devices worth about 1 million USD from the US business community and government to help Vietnam’s COVID-19 fight and recovery, heard the event.

VinFast to deliver first electric model VF e34 to clients on Dec 25

This firm announced on December 8 that it will hand over the first smart electric model VF e34 to clients on December 25. Nearly 100 cars will be delivered in December, and about 2,000 others in January.

Vinfast said it has received over 25,000 orders for the model, more than 40 percent of which were placed online.

Project connects Vietnam’s SMEs, top supply chain companies

The Ministry of Planning and Investment together with the US Agency for International Development (USAID) held a workshop entitled ‘Supporting Small and Medium Enterprises in Adapting to the New Normal’ on December 8.

The event formed part of the USAID-funded Linkages for Small and Medium Enterprises (LinkSME) project, which aims to improve business climate and open up opportunities for SMEs in Vietnam with a budget of 24.9 million USD. It will be carried out until September 2023.

The project has helped SMEs seal 64 orders worth nearly 1.3 million USD with top supply chain companies and arranged 11 training courses for more than 700 SMEs in relevant sectors. Over 500 SMEs obtained training to improve financial access and management. By late December, 10 firms will have received new loans totalling $5.23 million.

Renewed rise in COVID-19 infections and labour shortages threaten recovery

According to IHS Markit research, the Vietnam Manufacturing Purchasing Managers' Index (PMI) ticked up to 52.2 in November from 52.1 in October, signalling a second successive modest improvement in business conditions following a period of decline caused by the wave of the COVID-19 pandemic earlier in the year.

A number of firms indicated that labour shortages had restricted production. A number of respondents indicated that workers were concerned about the pandemic and therefore reluctant to return to work, thereby making it difficult for manufacturers to expand staffing levels in line with greater workloads. Employment continued to fall markedly, extending the current sequence of reduction to six months. As a result, backlogs of work increased for the third month running.

Worries about the pandemic also impacted confidence among manufacturers, with sentiment dropping from October. That said, firms remained optimistic that output will increase over the coming year amid hopes that the health situation will improve.

VN textile-garment exports to hit $39 billion this year

Vietnam’s textile-garment export revenue is expected to reach $39 billion in 2021. This is equal to the planned target set out at the end of 2020 and greater than the highest growth scenario forecasted for 2021.

Despite many difficulties throughout 2021, the industry's production and business results are still quite positive. The textile - garment industry is expected to thrive and earn $40 billion in exports over the next year, when the COVID-19 pandemic is forecasted to ease within Vietnam as well as the rest of the world.

Vietnamese handicrafts displayed on digital platform

Lifestyle Vietnam - a home decor, gift, and houseware fair - kicked off on December 7, in online form, under the framework of the national trade promotion programme. Organised by the Vietnam Handicraft Exporters Association (VIETCRAFT), the event is not only an exhibition space with commercial elements but also a new tool to help disadvantaged groups integrate into the "new normal" life.

Dau Giay-Lien Khuong expy expected to be completed by 2026

Lam Dong Province in coordination with ministries, agencies and the neighboring province of Dong Nai are ramping up efforts to break ground on the Dau Giay-Lien Khuong Expressway project and put it into operation between 2023 and 2026.

The expressway would be an arterial road linking Dalat City, the center of Lam Dong, with HCMC and the southern provinces. The 200.3-kilometer expressway project will be divided into three components. The 60.1-kilometer Dau Giay-Tan Phu section will be located in the southern province of Dong Nai, while the 66.3-kilometer Tan Phu-Bao Loc section is in Lam Dong and Dong Nai. The 73.9-kilometer Bao Loc-Lien Khuong section, which will connect Bao Loc City and the Lien Khuong-Prenn Expressway, will be located in the Central Highlands province of Lam Dong.

Dong Nai wants to develop two rail links with HCM City, Ba Ria- Vung Tau

Dong Nai Province has proposed the prime minister allow it to develop two railway projects to connect with its two neighbors – HCMC and Ba Ria-Vung Tau Province. One of the two proposed rail lines would link Thu Thiem in HCMC and Long Thanh International Airport in Dong Nai while the other will connect Bien Hoa City in Dong Nai and Vung Tau City in Ba Ria-Vung Tau.

The two lines would be built under the public-private partnership (PPP) format to help fully tap the potential of the forthcoming Long Thanh International Airport in Dong Nai and enhance connectivity between the airport and HCMC and the Cai Mep-Thi Vai international port complex in Ba Ria-Vung Tau.

The two railways would also help ease traffic congestion facing the road systems, including the HCMC-Long Thanh-Dau Giay expressway, National Highway 51 and the planned Bien Hoa-Vung Tau expressway.

Vietnam-U.S. trade soars by 200 times in 25 years

Two-way trade between Vietnam and the United States has risen by more than 200 times over the past 25 years. When the two countries normalized diplomatic ties in 1995, two-way trade totaled US$450 million but the figure shot up to US$90.8 billion in 2020.

Data from the General Department of Customs showed that two-way trade between Vietnam and the U.S. reached US$1.5 billion in 2001, when the two countries signed a bilateral trade agreement.

In 2020, two-way trade soared 19.9% against 2019 to US$90.8 billion. From January to October 2021, the figure reached US$89.6 billion. Vietnam exported goods worth US$76.7 billion to the U.S., rising 22.9% year-on-year and accounting for 28.4% of the country’s total exports, and spent US$12.9 billion importing goods from the U.S., increasing 13.2% year-on-year and making up 4.8% of its total imports.

As of October 2021, the U.S. ranked 11th among 138 countries and territories that invested in Vietnam, with 1,134 projects worth US$9.72 billion.

VIETNAM BUSINESS NEWS DECEMBER 8

VIETNAM BUSINESS NEWS DECEMBER 8

Virtual Vietnam Foodexpo 2021 opens  

 
 

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