Vietnamese enterprises have made great efforts in effectively using FTAs to penetrate and bring Vietnamese goods to the international market.

However, for sustainable development, businesses believe that it is necessary to further promote trade in foreign markets in a flexible, practical and effective manner to widen the way for exports of Vietnamese goods.

To support enterprises to overcome difficulties and restore production and business, Tran Phu Lu, Deputy Director of HCM City's Investment and Trade Promotion Centre (ITPC), has said that HCM City has boosted trade promotion and investment activities to help businesses expand the domestic product consumption market and potential foreign markets.

Exporting Vietnamese goods through the distribution network of foreign retail groups in Vietnam is considered an effective and sustainable channel, which can also be called "on-the-spot export" as foreign retailers not only have systems of modern trade centres and supermarkets, which are continuously expanded at home and abroad but also lead the way in converting to online shopping, according to Lu.

The ITPC has coordinated with these corporations to organise conferences and seminars to create bridges for businesses to meet, exchange and seek new markets at home and abroad.

Meanwhile, in foreign markets, Vietnamese trade promotion agencies and trade offices have been organising and promoting Vietnamese goods, connecting markets, and supporting enterprises to increase exports.

Many domestic and international organisations forecast that the world economy, including Vietnam, will recover and consumer demand will increase this year.

This is an opportunity for production and exports to continue to grow. To take advantage of this opportunity, trade promotion activities need to continue to be renewed and digitally transformed to promote the role of a trade bridge.

More flights to Mekong Delta to be launched

The Ministry of Transport has asked relevant agencies and airlines to quickly implement Prime Minister Pham Minh Chinh’s instruction on increasing flight frequency and air routes to the Mekong Delta.

A document in this regard was signed by Deputy Minister Le Anh Tuan and sent to the Civil Aviation Authority of Vietnam, the Viet Nam Air Traffic Management Corporation, the Airports Corporation of Vietnam and airlines.

The agencies and airlines should report obstacles they may face during the implementation, according to the document.

Vietnam Airlines launches “Re-discover Vietnam” programme in Singapore

The representative office of national flag carrier Vietnam Airlines in Singapore on April 12 launched the “Fly Vietnam Airlines, Re-discover Vietnam” programme with the aim of introducing and promoting the country’s safe tourism in the post COVID-19 period.

This is the first among a series of events to be held by Vietnam Airlines and its partners over the world. After a two-year hiatus caused by the pandemic, the carrier has to date re-operated flights to many markets, and Singapore is the first market that it has resumed two-way services.

Hanoi plans six more underground urban railway lines

Hanoi plans six more underground urban railway lines with a combined length of 86.5 kilometres under an underground space planning project to 2030, with a vision towards 2050, according to Nguyen Duc Nghia, deputy director of the municipal Department of Planning and Architecture.

The project also envisions 78 underground public parking lots with a total floor area of more than 104ha, mainly located in four inner districts. These parking facilities are designed to have 3- 4 floors.

The plan identifies 39 underground public space areas in the inner city with a total area of about 954ha. Underground public works serving different purposes such as services, trade, entertainment will be set up and there will be connections between these projects and urban railway lines and stations on the routes, Nghia said.

The plan also suggests 65 locations deemed to be ideal for the formation of underground space in new development areas in the north and south of the Hong (Red) River spanning over 2,170ha.

Hanoi-Lao Cai train service resumed after months of suspension

Hanoi Railway Transport JSC will resume trains between Hanoi and Lao Cai on the occasion of the national holidays on April 30-May 1 to serve the high demand for traveling to the resort town of Sa Pa. 

From Hanoi, train SP3 will depart at 10pm on April 29 and 30, and arrive at Lao Cai station at 6:05 am the next day. Visitors then can move onto Sa Pa by bus or taxi.  

The SP4 will depart Lao Cai station at 9:40pm on May 2 and 3, and arrive at Hanoi at 5:30 am the next day.

Train service between Hanoi and Lao Cai has been suspended since 2021 because of COVID-19.

Standard Chartered: Vietnam's economic recovery momentum to be stronger in Q2

In its latest Vietnam-focused macro-economic research report, Standard Chartered forecasts Vietnam's recovery will accelerate markedly in 2022, with GDP growing by 6.7 percent in the whole year when economic indicators are being recovered on a large scale.

According to Tim Leelahaphan, Economist for Thailand and Vietnam at Standard Chartered, the re-opening of the tourism sector, which accounts for 10 percent of Vietnam’s GDP, will be a factor that needs to be observed and evaluated seriously in the second quarter of this year after two years of closure due to the pandemic.

FDI inflows into Vietnam have begun to pick up this year after a slowdown in 2021.

The bank expects this trend to continue, especially in the areas of electricity generation and supply, petroleum and air conditioning equipment.

Foreign investors will continue to be the main driving force for Vietnam to contribute to the global supply chain, said Leelahaphan.

Many big technology enterprises in the world have moved or planned to move their production from China to Vietnam in recent years in order to diversify their supply chains, he said, adding that Vietnam continues to be a regional manufacturing hub in terms of electronics, textiles and footwear.

Standard Chartered maintains its inflation forecast for Vietnam at 4.2 percent for 2022 and 5.5 percent for 2023. The bank said that supply factors will bring risks of increasing inflation, especially the current geopolitical tension.

It also maintains its medium-term constructive view on the Vietnamese dong (VND) amid expectations of a strong balance of payments (BoP).

Vietnam is likely to continue to run a current account surplus this year as the tourism sector recovers, despite higher commodity prices, it said.

The bank forecasts the USD-VND exchange rate at 22,300 by end-2022, and 22,000 by the end off 2023.

Credit growth in Q1 2022 hits high level

Credit growth of credit institutions was quite positive at 5.04 percent at the end of the first quarter of this year, much higher than the 2.16 percent rise in the same period last year, the State Bank of Vietnam (SBV)’s Deputy Governor Dao Minh Tu said at the Government’s regular press conference in March.

According to Tu, the surge showed the economy has positive signs and the daily life, production and business of people and firms have also returned to normal thanks to the Government's effective measures against the pandemic.

According to the official, the credit growth target in 2022 that the SBV set at the beginning of this year was 14 percent. However, the target can be adjusted up or down at the end of the year, depending on the actual situation.

Regarding bad debts, Tu reported after five years of implementing Resolution 42/2017/QH14, the bad debt settlement of credit institutions has achieved positive results. Accordingly, from August 15, 2017 to November 30, 2021, 380 trillion VND of bad debt was recovered according to Resolution 42. On average, some 5.66 trillion VND of bad debt was handled each month during the application of Resolution 42, against about 2.14 trillion VND previously.

Resolution 42 on piloting the bad debt settlement of credit institutions will expire this year. The SBV, therefore, has proposed to legislate the policies specified in Resolution 42 into a new law to continually enable the banking industry to settle bad debts of credit institutions. The issuance of a new law on bad debt handling will help credit institutions accelerate the handling of bad debts to avoid potential risks for the economy, according to Tu.

IFC supports private sector’s growth

The International Finance Corporation (IFC) is committed to supporting Vietnam to leverage more private sector investment to meet its climate goals.

The remark was made by Alfonso Garcia Mora, IFC’s Regional Vice President for the Asia Pacific, during his five-day visit to the country.

The Vice President said IFC would help Vietnam build back a better and greener industry, rejuvenating the private sector and consolidating future resilience.

During his visit, Garcia Mora will meet with senior government officials to discuss ways to help Vietnam sustain rapid growth amid the pandemic and reach the next level of development by 2045.

The Vice President will also talk with business representatives to gain an insight into the challenges facing the private sector and how IFC can promote a dynamic, competitive and innovative private sector to accelerate Vietnam’s economic transformation.

Active in Vietnam for more than 20 years, IFC has been a key partner in the development journey of the country and its private sector, pouring 13.3 billion USD into more than 190 projects since its first in-country investment in 1994.

As of June 30, 2021, IFC’s committed portfolio in Vietnam hit nearly 1.9 billion USD.

Petrol prices down by over 800 VND per litre

The retail prices of oil and petrol were adjusted down starting from 3pm on April 12 following the latest adjustment by the Ministry of Industry and Trade (MoIT) and the Ministry of Finance.

Accordingly, the retail price of RON95 bio-fuel dropped by 836 VND to 27,317 VND (1.19 USD) per litre, while that of E5RON92 was adjusted down by 838 VND to no more than 26,471 VND per litre.

In the meantime, the price of a litre of diesel is 24,380 VND per litre, a decline of 700 VND.

This is the third decline following seven consecutive hikes in petrol prices in 2022, with a total reduction of nearly 2,500 VND per liter.

Vietnam’s cashew nut exports fall slightly

Vietnam shipped a total of 105,000 tonnes of cashew nuts abroad in Q1, earning 630 million USD, down 6.7 percent in volume and 5 percent in value compared to those in the same period of last year, according to the General Department of Vietnam Customs.

In March alone, the sector pocketed 241 million USD from exporting 40,000 tonnes of the nut, year-on-year decreases of 11 percent in volume and 9 percent in value.

The Vietnam Cashew Association attributed the declines to the reduction in import of the country’s major markets such as the Netherlands, Canada, China, Italy and Russia.

In addition, a suspected cashew nut scam involving the loss of the bills of lading of containers exported to Europe from mid-March also affected the total volume and value in the first quarter.

Tra fish exports forecast to increase by 50% in second quarter

Tra fish (pangasius) exports are anticipated to soar by 50% in the second quarter of this year compared to the same period from last year, according to the Association of Seafood Exporters and Producers (VASEP).

Moving forward, tra fish prices will see an upward trend in the near future because of a shortage of raw materials potentially lasting until the end of the second quarter of the year, the association said.

Currently, the price of raw Tra fish has expanded by 25% compared to the end of last year, hitting a record high of roughly VND32,000 per kg, with some places even posting higher prices.

After enduring three dismal years, the Tra fish industry enjoyed a strong revival. According to the General Department of Customs under the Ministry of Finance, by the end of the first quarter of the year, Tra fish exports stood at an estimated US$646 million, representing a year-on-year rise of 88%,and accounting for roughly 27% of the nation’s total seafood export value.

The value of Tra fish exports to some of the world’s top markets grew by triple digits, with the US market being a typical case in point. The total export value of Tra fish as part of the highly lucrative market during the initial two months of the year reached US$94.6 million, up 120% over the same period from last year. The US can also be viewed as the number one Tra fish export market for Vietnamese enterprises.

Many local firms have therefore taken full advantage of the opportunity from the growing consumption demand to avoid not being subject to anti-dumping tax as a means of promoting sales to this market.

Exports to Russia, Ukraine dive sharply in Q1

Vietnamese exports to Russia and Ukraine plunged dramatically in the first quarter of this year due to the adverse impact of the ongoing armed conflict between Russia and Ukraine.

Statistics unveiled by the General Department of Vietnam Customs show Vietnamese exports to Russia fetched nearly US$47 million in March, equivalent to 14% and 26% of the figures recorded in January and February respectively.

The sharp fall prompted three-month exports to nosedive to just 16% of the export value reported in the same period of 2021. Notably, many key items that bring back tens of millions of US dollar every month saw their export value decrease to several millions each in March.

Phones and components, for instance, raked in nearly US$5 million in March compared to US$42 million in February, while machinery and equipment exports earned US$4.7 million in March as opposed to US$27.7 million in February.  

Similarly, Vietnamese goods shipped to Ukraine in March only grossed nearly US$1.4 million, down nearly 10 times compared to February’s US$12.9 million level. In January, the export turnover to Ukraine reached US$32.5 million.

Tourism services enjoy dramatic recovery

Major tourist destinations across Vietnam were packed with holidaymakers during the three-day national break running from April 9 to April 11 to commemorate the ancestral anniversary of Hung Kings, marking the start of a strong recovery for the domestic tourism sector.

With COVID-19 impacting the country for more than two years, tourism was one of the hardest hit economic sectors. Efforts to reopen tourism services were jeopardised by subsequent waves of the virus, as well as disease prevention measures and a reluctance among tourists.

This year the situation is totally different as localities have been implementing the Government’s strategy of living safely with the virus. Localities have gradually resumed the majority of services, with tourism recovery considered as a spearhead sector in relation to the economic recovery process. The Government has also eased COVID-19 prevention and control measures to create the conditions in which people can freely participate in the tourism market. 

Sam Son beach in Thanh Hoa province has become crowded over recent days packed full of visitors from various localities. Minh Hoa, a visitor from Hanoi, said she was happy to return to her favourite beach after a two-year hiatus caused by the pandemic. 

Meanwhile, Vung Tau city in the south which is famous for beaches with crystal-clear water attracted 37,000 holidaymakers during the three-day break, a record surge in recent years. Likewise, all lodging facilities in other tourist destinations such as Da Nang, Nha Trang, and Da Lat were fully booked, signaling a substantial recovery of local tourism services.

The tourism sector has started to show signs of recovery since early this year, especially after the Government gradually began to control the pandemic and reopened its borders to international tourism. VNAT statistics indicate that localities attracted 26 million domestic holidaymakers during the first quarter of the year compared to 40 million throughout the entirety of 2021. 

Motorcycle sales fail to meet manufacturers’ expectations in Q1

The Vietnam Association of Motorcycle Manufacturers (VAMM) reports 753,571 motorbikes were sold during the first quarter of the year, up 7.43% compared to the same period from last year.

Despite this growth, five members of the VAMM, namely Honda, Yamaha, Piaggio, Suzuki, and SYM, said motorcycle sales have yet to meet their expectations for this year.

They noted that the first quarter typically represents the best time to promote motorcycle sales thanks to rising consumer demand for shopping drastically increasing during the Tet period.

Furthermore, the COVID-19 pandemic was gradually brought under control by the end of 2021, serving as a premise for motorcycle purchasing power to recover.

Previously, the VAMM said its members sold a total of 756,521 vehicles in the fourth quarter of 2021, an annual increase of 3.61%. Overall, the Vietnamese motorcycle market consumed roughly 2.5 million units in 2021, a drop of 8.12% year on year.

Viet Nam Expo 2022 opens in Ha Noi

 As many as 410 enterprises from 15 countries and territories are participating in the Viet Nam Expo 2022, themed “Step together in Digitised world”, taking place from April 13 to 16 at Ha Noi International Exhibition Center (IEC) in Hà Nọi.

The exhibition, comprising 380 display booths, presents products and services in four main industries: Vietnam Value and Exports; Machinery –Supporting Industries; Digital Solutions & E-commerce; and Food and Beverage.

Viet Nam Expo 2022 also includes remote pavilions, online business-to-business (B2B) booths, and a virtual edition of Vietnam Expo on Decobiz digital platform. The hybrid exhibition will be held from April 13 to May 13, 2022.

Agricultural start-ups need long-term business strategies: experts
     
To be successful, agricultural start-ups must have long-term business strategies, strengthen linkages in the start-up eco-system and understand the market they target, experts have said.

Pham Lan Anh, head of the communication department at the Ca Mau Petroleum Fertiliser Joint Stock Company, said hi-tech agriculture offers solutions to consumers and businesses’ demand for clean, high-quality produce, improves farming productivity and creates reliable data.

But the use of technology remains limited since it is still relatively new in Viet Nam and many farmers are still used to traditional methods, she said.

The country has a diverse range of agricultural products, but does not have a consumer market based on actual supply and demand, and farmers lower prices to sell their products and compete with rivals, she pointed out.

“It’s difficult to build a brand for Vietnamese agricultural products because of low economic value,” she said.

“Farmers only pay attention to producing raw agricultural products instead of creating added value for the products.”

Most farming start-ups do not share information and business opportunities with each other, making it difficult to build agricultural markets, experts said at a panel discussion hi-tech agriculture start-ups in HCM City last week.

Most do not clearly define the objectives for each stage of their business, they said.

Most want to quickly sell out products instead of patiently marketing and branding them, but to be successful they need to build a long-term business strategy and strengthen linkages within the start-up eco-system, they pointed out.

Many are household or individual businesses who do not have enough resources, making the linkages imperative, they said.

They should not expect profits immediately like other commercial activities and services, need to have a thorough understanding of the market, culture and climate and should network with professionals in various fields to succeed, they added.

Commercial banks tighten real estate lending
     
Some banks have temporarily stopped providing loans to the real estate sector in the short term in the wake of the State Bank of Viet Nam (SBV)'s policy on controlling credit growth in risky areas.

Sacombank has recently required all its branches and transaction offices to focus loans on a number of production and priority industries such as agriculture, rural development, exports, supporting production, small- and medium-sized enterprises, high-tech application, trade, service and logistics, vietnambiz.vn reported.

In particular, Sacombank has directed the branches and offices not to fund the real estate sector until the end of June, except for the bank’s staff and relatives to buy, build or repair houses for living purposes.

Techcombank has recently also notified its business units about controlling the disbursement limit for loans to buy real estate products. The bank said it would suspend the provision of real estate loans from March 25, 2022 and would consider the disbursement in the second quarter.

The banks said their move was aimed to ensure compliance with the SBV’s regulations on controlling credit growth.

Besides, the credit growth quota of the banks set aside for the real estate sector capped the banks’ plans.

In the latest strategy of the banking industry, the SBV said credit must be channeled to production and business industries with positive impacts on socio-economic development. It has also urged banks to refrain from providing credit to businesses operating in risky areas, such as real estate, securities, corporate bonds, or build-operate-transfer (BOT) and build-transfer (BT) transport projects.