The Investment Promotion Agency (IPA) of Da Nang has offered investment opportunities to businesses from Bremen, Germany, in seaport, logistics and information technology (IT) during a recent working visit by representatives of Bremen.

IPA Director Huynh Thi Lien Phuong said the investment from Germany to Da Nang was still small at only 10.3 million USD.

She said Da Nang had been inviting bidding for the development of the deep seaport of Lien Chieu and logistics zone, including a railway cargo station, airport logistics and the hi-tech park logistics to boost the connection of multi-transport logistics industries.

Da Nang and the Cen­tral Agen­cy for Ger­man Schools Abroad (ZfA) had developed a pilot German teaching project at two junior secondary schools in the city in 2016.

The Euro Chamber of Commerce and Industry and EU-Vietnam Business Network in Da Nang, AmCham and the Korea Trade and Investment Agency have already set up their offices to boost investment and trade in central Vietnam.

Vietnam’s flowers gain foothold in Japanese market

Many kinds of flowers of Vietnam have gained a foothold in the Japanese market, and are quite popular among local consumers.

Japan now remains one of the important flower export market of Vietnam.

Kaori Sato, head of crop products division of the retail corporate group AEON, said about 40 percent of the flowers on sale in AEON Mall Makuhari in Chiba prefecture are imported flowers.

Hiroshi Yamasaki, an office worker in Tokyo, said he often buys flowers to give to his relatives and friends. He especially likes Vietnamese flowers because they are very fresh and beautiful.

The latest statistics from the Japan Customs show that in 2021, Japan spent 65.3 billion JPY (528 million USD) on importing flowers, including 45 million USD on imports from Vietnam, or 8.52 percent of the total, ranking Vietnam the fourth among countries and territories exporting flowers to the Asian country.

Vietnam’s flower export turnover hit 61.8 million USD in 2021, posting a year-on-year increase of 27 percent.

According to the Vietnam Trade Office in Japan, the Asian country mainly imports carnations, chrysanthemums, lilies, orchids and roses from Vietnam.

Investors seek husbandry opportunities in Dong Nai

Vice Chairman of the People’s Committee of Dong Nai province Vo Van Phi received executives from the Netherlands’ De Heus Group and Vietnam’s Hung Nhon Group on May 9 to discuss opportunities in agriculture in the southern province.

Chairman and CEO of De Heus Koen De Heus said the group hopes to cooperate with Vietnamese companies and farmers to develop sustainably together. 

He expected the group will be able to coordinate with the local administration to develop a proper strategy for the growth of hi-tech agriculture.

Dong Nai has competitive edges to expand agriculture, with over 350,000ha of land used for the sector, or 58.3 percent of its total area, mostly in the districts of Xuan Loc, Dinh Quan, Cam My, Thong Nhat and Trang Bom. More than 60 percent of the population lives off agriculture. 

Large-scale projects account for some 90 percent of land for husbandry, while the remainder are for smallholders. 

The province now leads the country’s pig and chicken farms. It earns more than 45 trillion VND (1.96 billion USD) from agriculture annually, contributing 10 percent to its GRDP.

Vice Chairman Phi said Dong Nai has formulated a plan for husbandry development by 2025, which emphasises the importance of environmental protection, animal health, slaughtering supervision and building value chains.

Vietnam targets high-efficiency agriculture

Minister of Agriculture and Rural Development Le Minh Hoan has suggested organising a forum for experts to share information and initiatives, and build an action plan to help the domestic agricultural sector access new technologies.

Speaking at an international seminar on efficient agriculture in Vietnam, held virtually on May 8, the minister stressed that the domestic agricultural sector should integrate values of the Fourth Industrial Revolution through knowledge-based, smart agriculture.

He highlighted the significance of science-technology and innovation to Vietnam’s realisation of its strategy for sustainable development of agriculture and rural areas for 2021 – 2030, with a vision towards 2050.

Deputy Minister of Planning and Investment Tran Quoc Phuong called for opinion contributions from domestic and foreign experts to provide support for businesses and raise added value and product quality.

Present at the seminar, Vietnamese Ambassador to Australia Nguyen Tat Thanh briefed the participants on the development of Australia’s agriculture, and emphasised the fruitful cooperation in this field between the two countries.

The event is among a series of international seminars on smart agriculture in 2021-2022 organised by the Vietnam Australia Innovation Network, under the sponsorship of the State Commission for Overseas Vietnamese Affairs, and the Vietnam National Innovation Centre, in coordination with innovation networks in Europe, the Republic of Korea (RoK), Japan, Taiwan (China) and Germany.

Aquatic exports surge nearly 44 percent in first four months

Vietnam earned 3.57 billion USD from aquatic exports in the first four months of 2022, posting a year-on-year increase of 43.7 percent, according to the Ministry of Agriculture and Rural Development.

In April alone, the export value was 1.05 billion USD.

The US, Japan and China were the three leading import markets in the first quarter, accounting for 49.5 percent of total aquatic export value.

Of note, export values in all markets saw expansion, and revenue from China doubled.

Exports of tra (pangasius) fish were estimated at 263 million USD in April, bringing the four-month figure to 894 million USD, up 89.4 percent against the same period last year.

Meanwhile, shrimp exports expanded 38.6 percent year-on-year to nearly 1.34 billion USD after adding 385 million USD in April.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), demand in import markets is pointing towards a robust recovery after the COVID-19 pandemic, and Vietnamese firms have seized opportunities to bolster exports and seal high-value contracts.

Vietnam Blockchain Union to held first congress in mid-May

The Vietnam Blockchain Union (VBU) will hold the first congress in mid-May, aiming to establish an organisation to connect the technology business community and provide consultancy to related agencies to develop policies and legal frameworks on technology, digital assets, and currencies.

According to Hoang Van Huay, former deputy minister of Science, Technology and Environment (now the Ministry of Science and Technology) and head of the preparatory committee for the establishment of the VBU, the coming into being of the union will create an important milestone, marking Vietnam's position on the world technology map.

It will create an environment for the development of high-quality human resources in Vietnam to hold the Blockchain core technology in order to compete in the world’s digital technology, he said.

The VBU members will share experiences and resources to study, deploy and trade Blockchain technology in accordance with Vietnamese law. It will cooperate with relevant universities in conducting research on Blockchain technology as well as training human resources in the field.

Vietnam, Italy aim to effectively utilise EVFTA

Two-way trade exchanges between Vietnam and Italy have achieved positive outcomes following the enforcement of the EU-Vietnam Free Trade Agreement (EVFTA) in 2020, with bilateral turnover reaching US$5.6 billion in 2021, up 20% compared to 2020.

According to the Ministry of Industry and Trade, Italy remains Vietnam’s fourth largest trading partner in the EU, behind only the Netherlands, Germany, and France.

Vietnam’s key export items to the Italian market include computers, electronic products and components, phones and components, machinery, tools and spare parts, aquatic products, coffee, garments and textiles, and footwear.

Furthermore, Italy is the largest consumer of Vietnamese shelled cashew nuts, accounting for between 60% and 70% of its cashew imports.

Besides cashew nuts, other Vietnamese export items have also enjoyed a sharp increase in value thanks to tariff reduction under the EVFTA. The export value of tuna to the Italian market, for instance, skyrocketed by 130% in the first half of 2021 to reach roughly US$22.5 million.

Under the terms of the trade pact, 100% of tariff lines placed on tea and coffee products, as well as some other farm produce such as cinnamon, pepper, cashew nuts. and fruit, have been slashed to 0%.

The commitments set out in the EVFTA sees the EU give the Vietnamese side an export quota of 80,000 tonnes of rice annually, including 30,000 tonnes of milled rice, 20,000 tonnes of unmilled rice, along with 30,000 tonnes of fragrant rice. Meanwhile, the EU will not apply a quota for broken rice exported from the country.

Poor weather, import bottleneck double whammy for Binh Phuoc cashew industry
     
In Binh Phuoc Province, known as the country’s cashew capital, processors are unable to source enough nuts because of poor harvests locally due to unfavourable weather and difficulties in transporting them from Africa.

The province has around 134,000ha of land under cashew and over 1,400 processing businesses that export the products to markets such as the US, Australia and China.

Of them 31 are able to import raw cashew while the rest are too small for that.

Processing businesses need around 600,000 – 800,000 tonnes of raw cashew annually, but the province is only able to provide 200,000 tonnes, and only 100,000 tonnes this year.

Dang Van Hau, owner of a cashew processing facility in Bu Gia Map District, said this year both Viet Nam and Cambodia, another source of imports, lost their cashew crops due to unfavourable weather.

Due to COVID-prevention measures and a shortage of empty containers, it has been difficult to import raw cashew from Africa.

Ta Ngoc Tuan, owner of another processing facility in Bu Gia Map District, said he had signed a contract to sell cashew but could not increase prices and had to deliver in time despite the raw material shortage and higher prices or compensate his partner and risk losing his reputation.

According to the province Department of Agriculture and Rural Development, cashew depends greatly on the weather and yields are poor in case of unseasonable or heavy rains, hoarfrost and too much sun.

Standard Chartered Bank: Regional focus to support Viet Nam’s post-COVID recovery
     
Viet Nam is a key beneficiary of the Regional Comprehensive Economic Partnership (RCEP), which entered into force on January 1, 2022 and creates the world’s largest free trade area, according to Standard Chartered Bank in its latest Global Research Report titled: “Viet Nam – RCEP: Opportunities and challenges”.

The deal is expected to eliminate about 90 per cent of tariffs on trade between the signatories within 20 years.

The membership in the pact further strengthens Viet Nam’s trade position and should contribute to the post-pandemic recovery this year. Major export categories that are expected to benefit from the RCEP include IT, textiles, footwear, agriculture, automobile and telecommunications. Over the longer term, the deal could form the basis for a new supply chain in the region, with Viet Nam playing a key role. The country targets average export growth at 6-7 per cent a year from 2021-30.

However, Viet Nam is also likely to face more competition – both in export markets and domestically – as a result of RCEP. For exports, the pact increases competition from other Southeast Asian countries, some of which are strong in similar product categories to Viet Nam (such as labour-intensive goods). Over time, this could prompt Viet Nam to move into high-tech manufacturing. RCEP should facilitate this process, making it easier to source high-quality materials from other member countries and improving market access for higher-value-added goods.

More broadly, the RCEP is likely to accelerate China’s economic integration with the rest of the Asia–Pacific region; in contrast, the US is not an RCEP signatory. Viet Nam will continue to benefit from its role as an alternative manufacturing hub as companies adopt a ‘China plus one’ diversification strategy. At the same time, however, China’s low-cost products will gain better access to Viet Nam’s domestic market under RCEP, posing potential challenges to domestic competitors.

Standard Chartered Bank’s economists expect a strong current account (C/A) surplus and FDI flows to remain the key pillars of support for the Vietnamese dong (VND) over the long run. The RCEP is likely to further boost Viet Nam’s exports, supporting the C/A balance, and help attract increased direct investment flows.

Agriculture sector witnesses larg trade surplus in Q1
     
Viet Nam enjoyed the largest trade surplus ever, about US$4 billion, in the first four months of this year, 3.2 times higher than the previous year, according to the Ministry of Agriculture and Rural Development (MARD).

Total trade value in agricultural, forestry and seafood products hit $31.8 billion in the first four months, an increase of seven per cent year-on-year, the ministry reported.

Of this, exports were worth $17.9 billion, up 15.6 per cent year-on-year, while imports totalled $13.9 billion, down 2.3 per cent.

Aquatic exports saw the highest growth during the period at 43.7 per cent to reach $3.6 billion. Shipments of key agricultural and forestry products exceeded $7.4 billion and $5.9 billion, up 10.5 per cent and 4.9 per cent, respectively. Meanwhile, those of husbandry products plummeted 19 per cent year-on-year to $105.4 million.

Five export items with revenue exceeding $1 billion included coffee, rice, fruits and vegetables, shrimp and timber products.

Notably, exports of coffee and shrimp stood at $1.7 billion and $1.3 billion, a year-on-year surge of 59.4 per cent and 38.6 per cent respectively. Export value of tra fish went up 89.6 per cent to $894 million.

The US remained the largest export market for Viet Nam’s agricultural, forestry and seafood products with nearly $4.9 billion, accounting for 27.3 per cent of the total exports. Around 68.2 per cent of Viet Nam’s exports to the US were timber and wood products.

China came second with over $3.2 billion, representing 18.1 per cent of total shipments.

The third was Japan with a turnover of nearly $1.3 billion, accounting for 7.1 per cent of the total exports. The fourth-largest export market was South Korea with a value of $822 million.

SSI targets 30% rise in profit after rip-roaring 2021
     
SSI Securities Corporation has set targets of VND10.33 trillion (US$448.67 million) in consolidated revenues and VND4.37 trillion ($189.49 million) in pre-tax profits this year, 31 per cent and 30 per cent up from 2020.

These and other important proposals were approved at its virtual annual general meeting last Saturday.

Nguyen Hong Nam, SSI’s CEO, said 2021 had been a record year with net revenues increasing by 72 per cent to VND7.78 trillion and profits by 60 per cent to VND 3.36 trillion.

The company managed to borrow $267.5 million worth of low-interest unsecured loans from foreign banks, he said.

The company has a positive view of the market in 2022, with prospects becoming clearer in the second half of the year after a cautious first six months.

New expressway project proposed for Dong Nai Province

The Ministry of Transport has just proposed to the government the construction of the Dau Giay-Tan Phu expressway in the southern province of Dong Nai.

According to the ministry's plan, the first phase of the project will have an estimated investment of over VND8.36 trillion (USD364 million), using the public-private partnership model. The investment will include VND7 trillion mobilised from private sectors and VND1.3 trillion from the state budget.

The expressway is designed to have four lanes and run 60 kilometres, starting at the intersection with National Highway 1 and ending at a connecting point with the Tan Phu - Bao Loc expressway project.

The Transport Ministry proposed construction of the project to be started in 2023 and be completed in 2025.

Aquatic exports surge nearly 44 percent in first four months

Vietnam earned 3.57 billion USD from aquatic exports in the first four months of 2022, posting a year-on-year increase of 43.7 percent, according to the Ministry of Agriculture and Rural Development.

In April alone, the export value was 1.05 billion USD. The US, Japan and China were the three leading import markets in the first quarter, accounting for 49.5 percent of total aquatic export value.

Of note, export values in all markets saw expansion, and revenue from China doubled.

Exports of tra (pangasius) fish were estimated at 263 million USD in April, bringing the four-month figure to 894 million USD, up 89.4 percent against the same period last year.

Meanwhile, shrimp exports expanded 38.6 percent year-on-year to nearly 1.34 billion USD after adding 385 million USD in April.

Agriculture to go with Industry 4.0: MARD leader
     
Minister of Agriculture and Rural Development Le Minh Hoan said the Vietnamese agricultural industry needed to take advantage of external forces so as not to be left behind.

With the catalyst being the strategy for Sustainable Agriculture and Rural Development for the 2021-30 period, approved by the Prime Minister in February, Hoan welcomed experts to join the discussion in order to provide synchronous and timely solutions to global problems such as epidemics, climate change, or changes in consumption trends.

Hoan said domestic resources and budget were limited so, in order for the agricultural industry not to be left behind, domestic management agencies, businesses and households need forums like these to connect with their counterparts around the world and to take advantage of the accumulated values ​​from good practices.

The MARD leader announced that the ministry has coordinated with the Ministry of Foreign Affairs and related parties to successfully organise the forum to connect overseas businesses to the industry earlier this year adding it attracted foreign investors and enhance trade exchanges.

Mentioning the Vietnamese commitment to "zero carbon emissions" at COP26, Hoan said sustainable production-driven agriculture needed to transform with new thoughts and knowledge.

The minister told the conference: "It's time to take the market standard for agricultural production instead of taking production to shape the market.”

Vingroup and Techcombank propose developing Gia Nghia-Chon Thanh Expressway

Vingroup and Techcombank have expressed their interest in developing Gia Nghia-Chon Thanh Expressway. As part of the North-South Expressway, this section will connect Dak Nong and Binh Phuoc provinces.

As the first step, Vingroup and Techcombank will establish a feasibility study to submit to agencies for approval. If approved, the two businesses will be in charge of financing the construction. It is expected to be developed under the private-public partnership (PPP) model.

It is the first project of its type by these two companies. State Capital Investment Corporation has also expressed its interest in cooperating with the development.

The expressway going through Dak Nong and Binh Phuoc has a length of just over 200km with up to six lanes and a maximum speed limit of 100km per hour.

The western cluster of the North-South Expressway has a total length of around 900km and the total investment capital of almost $7.4 billion. The construction of the full length is expected to be completed by 2030.

After 2030, the project will gain an additional four-lane section of 280km.

Unique consumer loans targeting ride-hailing drivers

Homegrown ride-hailing firm Be Group, in collaboration with digital bank Cake by VPBank, has deeped their financial sector push by introducing consumer loans to driver-partners, the first of its kind in the Vietnamese market.

Although being classified under the category of subprime lending by commercial banks, ride-hailing drivers have gradually increased their income and ability to pay back debt. However, the classification reduces the chances of them accessing financial services to overcome financial challenges.

Furthermore, many divers remain hesitant about consumer loans from traditional banks due to the complicated requirements of income proof and documentation as well as the slow approval and distribution time.

As a result, many drivers have turned to risky informal lending solutions such as black credit and high-interest loan applications.

Cake is the first digital bank to pioneer consumer loan products for ride-hailing drivers. Be drivers can borrow from VND3 million ($130) to VND20 million ($870) over 3-24 months through Cake with no application charges and no requirement to mortgage any assets or documents.

This credit package aims to meet the urgent demands of ride-hailing drivers, allowing them to recover and improve their family life following the pandemic. Cake's consumer loan packages for drivers are coupled with outstanding benefits in terms of procedures, interest rates, approvals, and disbursement time. The product is expected to open up safe financial access and improve the livelihood of this unique target group.

VEC told to study expanding HCMC-Long Thanh-Dau Giay expy

The Ministry of Transport has told the Vietnam Expressway Corporation (VEC) to propose solutions for widening the HCMC-Long Thanh-Dau Giay expressway under the public-private partnership format.
Each of the solutions should include an analysis of the investment method, pros and cons, procedures, conditions of investment and the feasibility of the project, according to the ministry.

Under VEC’s previous proposal to expand the expressway, the project would cost over VND9 trillion, all mobilized by VEC. The project would be conducted in the third quarter of 2022 and completed in the first quarter of 2026.

As scheduled, the 20-kilometer section of the HCMC-Long Thanh-Dau Giay expressway running from the interchange with Ring Road 2 in HCMC to the intersection with the Bien Hoa-Vung Tau expressway would be widened to eight lanes from the current four.

Besides, the project would include expanding the Long Thanh Bridge and other smaller bridges in the section.

The HCMC-Long Thanh-Dau Giay expressway connecting HCMC, and Dong Nai Province’s Long Thanh and Dau Giay was opened to traffic in February 2015.

The expansion is aimed at easing severe traffic congestion, especially at the tollgates on the HCMC-Long Thanh section on holidays and weekends.

CPI inches up 0.18% in April

Vietnam’s Consumer Price Index (CPI) in April edged up 0.18% month-on-month, mostly due to the rising prices of building materials, according to the General Statistics Office.
The CPI increase also resulted from the higher prices of catering and tourism services as well as education.

The index last month rose 2.09% over the end of last year and 2.64% year-on-year.

Among the 11 groups of consumer goods and services in the basket of items used to calculate the CPI, housing and construction materials climbed 2.7% on the surge in input material prices. The prices of gas, steel and materials for cement production, such as gasoline and coal, soared because of the Russia-Ukraine military conflict, according to Maybank Investment Securities.

Meanwhile, cultural, entertainment and tourism services, and food and catering services grew 1.8% and 3.8% year-on-year, respectively, above the growth in previous months, thanks to the increasing demand for tourism and the economic reopening.

In the first four months of the year, the CPI rose 2.1% year-on-year, higher than the 0.89% in the same period in 2021 but lower than the growth in the first four months in 2017-2020.

Core inflation in the January-April period edged up 0.97% over the year-ago period, meaning that monetary policy had worked. However, the pressure on inflation remains.

Inflation may rise in the coming months as the reopening of the economy will drive up demand. There will be pressure on the supply side given the Russia-Ukraine military conflict and China’s zero Covid policy, according to a report by Maybank Investment Securities.

In reality, forecasts about the country’s CPI in the coming months have been revised. For example, BIDV Securities Company has raised its CPI forecast from 3.3% to 3.6%, while Mirae Asset Securities has increased the forecast from 3.8% to 3.9%.

In early April, Standard Chartered stuck with its forecast that consumer prices would rise 4.2% in 2022 and 5.5% in 2023.

Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes