Insufficient coffee supply results in high price of Vietnamese coffee which may increase to VND 120,000 a kg.

Gripped by prolonged drought, the Central Highlands has seen a decrease in coffee yields resulting in an inadequate supply of coffee for the market; consequently, prices of the coffee went up dramatically.

Domestic coffee prices today fluctuated between VND109,500 a kg and VND110,000 a kg, continuing to increase by VND1,000 per kg on the weekend.

Specifically, coffee fetched at VND109,500 a kg and VND 110,000 a kg in Gia Lai and Dak Nong provinces respectively. After several adjustments, traders in Lam Dong and Dak Lak provinces agreed to buy coffee at VND109,000 a kg and VND109,800 a kg, respectively.

At the end of the latest trading session, the price of Robusta coffee in London for delivery in May 2024 increased by US$57 to $3,900 a ton while it increased by $62 to $3,852 a ton for delivery in July 2024.

The price of Robusta coffee for May delivery increased by a total of $156. In the first two weeks of April 2024, domestic coffee increased by more than VND10,000 a kg, exceeding VND110,000 a kg.

According to coffee exporting businesses, currently, the coffee planting area in the Central Highlands - Vietnam's largest coffee growing region - is shrinking. Intense heat and a deep drop in groundwater levels lead to a shortage of water so it is predicted that next year's coffee output may continue to decrease.

Meanwhile, demand for coffee in the market continues to be high and Vietnam is the second largest source of coffee in the world; At the same time, in the 2023-2024 crop year, Vietnam is also the first country to harvest, so domestic coffee prices greatly impacted on world prices.

The Vietnam Coffee Cocoa Association (Vicofa) said that its businesses are trading coffee at VND110,000 a kg. Vicofa announced that it is normal if coffee prices increase to VND120,000 a kg because the demand for coffee in the world is high while the supply from Vietnam is running out.

According to experts, the actual coffee yield is lower than calculated. It is believed that there is still a lot of coffee inventory among people and agents but this belief has no solid basis because coffee growers usually sell when coffee prices increase from VND50,000 a kg to VND90,000 a kg in just a few months. No one will reserve large quantities when coffee’s prices skyrocket.

It is estimated that farmers and agents are keeping about 300,000 tons of coffee. Meanwhile, for the remaining six months of the 2023–2024 coffee crop, Vietnamese export businesses need about 80,000 tons.

According to statistics from the Vietnam Customs Agency, Vietnam's coffee exports in March 2024 reached nearly 189,000 tons, an increase of 17.7 percent over the same period in 2023. However, experts are concerning about the disruption in the supply chain of raw coffee in the past two years. The purchase of domestic coffee is increasingly difficult and risky.

Chairman of Vicofa Nguyen Nam Hai said that it's half time for coffee of the 2023–2024 crop in the country. In the past six months, Vietnam exported 956,000 tons of coffee, down one percent in volume but value soared more than 40 percent compared to the same period last year thanks to a sharp increase in coffee prices.

However, because coffee prices fluctuate strongly, coffee exporting businesses are facing many challenges in the chain of production, processing, purchasing, and supply. In particular, there has been a situation where the parties involved in the chain did not deliver goods according to the signed contracts.

US extends conclusion on tax evasion probe into Vietnamese wooden cabinets

The US Department of Commerce (DOC) has announced it will extend the deadline before issuing the final conclusion of its probe into the circumvention of trade defence tax evasion of wooden cabinets imported from Vietnam, according to the Trade Remedies Authority of Vietnam (TRAV).

According to the schedule, the DOC plans to issue the final conclusion on the investigation of the product scope of wooden cabinets imported from Vietnam on June 14.

With regard to the tax evasion investigation, the DOC intends to issue the preliminary and final conclusions of the case on June 28 and September 26 respectively.

Furthermore, the DOC has set up a case code A-552-106-000 and C-552-107-000 for Vietnam under the US Customs and Border Protection (CBP) automated system, tracking the import of the product into the United States.

Simultaneously, the DOC has also issued a draft guidance on processes and procedures verifying the origin and product range of imported wooden cabinets.

The deadline for relevant parties to provide their rebuttal comments on the draft guidance is April 26.

The DOC’s probe into the product scope for wooden cabinets imported from the country and trade defence tax evasion was launched in May and June 2022, respectively.

In September 2023, the DOC issued an investigation notice to adjust the preliminary conclusion it issued in March 2023, listing three cases of wooden cabinets imported from Vietnam which had suspected components made in China.

According to TRAV, since April 2020, the US has imposed anti-dumping and subsidy duties on wooden cabinets originating from China, with anti-dumping duties ranging from 4.37% to 262.18% and anti-subsidy duties ranging from 13.33% to 293.45%.

March auto sales enjoy significant growth

The Vietnamese automobile market saw a remarkable breakthrough in its total sales in March, after several months of declines.

According to the Vietnam Automobile Manufacturers’ Association (VAMA), its members sold a total of 27,289 units in March, up 135% against February.

However, the figure was still 9% lower than the sales recorded in March 2023.

In the first quarter of this year, the VAMA members’ total sales reached 58,165 units, down 17% year-on-year. Of the total, that of passenger cars declined by 21%, commercial vehicles by 6%, and special-purpose ones by 48%.

In the period, the sales of domestically assembled cars reached 30,919 units, down 20%, while imported cars were 27,246, down 14% compared to the same period last year.

Besides VAMA members, the Vietnamese auto market also includes other automakers such as Audi, Jaguar Land Rover, Mercedes-Benz, Nissan, Subaru, Volkswagen, and Volvo, but they did not disclose their business results.

In addition, VinFast, Vietnam’s first electric vehicle (EV) manufacturer, has not published its monthly sales data since August 2023.

Based on sales reports officially announced by the VAMA and the Thanh Cong (TC) Group, in March, the group’s Hyundai brand continued to lead the Vietnamese auto market in terms of sales with 4,542 vehicles sold, followed by Toyota (3,865 units), Ford (3,686), Mitsubishi (3,439), and Honda (2,832).

An abundant supply, combined with the launch of new models and the adjustment of prices to benefit customers, is expected to help the market enter a period of prosperous business and well recover in the rest of 2024./.

Bank lending on clear recovery path in HCM City

Total loans outstanding at banks in HCM City as of the end of March were worth over VNĐ3.57 quadrillion (US$142.57 billion), a 1.9 per cent increase from the previous month, and 9.45 per cent up year-on-year, according to the central bank.

Nguyễn Đức Lệnh, deputy director of the State Bank of Vietnam (SBV)’s HCM City office, said the growth was the lowest in the last three years, but consolidated a rising trend after growing by 0.01 per cent in the first two months following negative growth in January.

He attributed the growth to low interest rates and a favourable business and investment environment that has stimulated enterprises and business households.

Lending to the businesses accounted for over 60 per cent of the total, he said.

In addition, the consumer loan package of VNĐ20 trillion at preferential interest rates offered by two consumer finance companies in HCM City (HD Saison and FE Credit) has seen disbursement of VNĐ259 billion to more than 10,500 borrowers, especially workers in industrial parks and export processing zones, contributing to improving people's lives and preventing loansharking, he said.

Assessing the likely credit growth trend, he said the low interest rates would continue to stimulate demand for loans from businesses.

The recovery by the housing market would also have a positive impact on lending and capital flows in the economy, he said.

If the current trends continue in April and subsequent months, the foundations for new economic and credit growth cycles would be laid, he added. 

Public investment projects: big push for construction materials sector

Public investment projects are giving a big push to the domestic construction material industry, according to Vietnam Report. 

The State has sped up the development of public investment projects. The implementation of many key transport projects such as ring roads, the North-South expressway and Long Thành Airport, and the approval of many industrial and urban infrastructure projects will bring direct benefits to the construction material sector, the company said.

At the same time, the positive inflows of foreign direct investment will likely continue in 2024 thanks to the country's political stability, an attractive investment environment and foreign investor commitments. That is expected to create momentum for a breakthrough in the domestic construction material market in the time to come, it said. 

Meanwhile, the amended Land Law which was passed by the National Assembly early this year and the newly-approved Law on Real Estate Business will have a positive impact on the recovery of the real estate market, and facilitate the rebound of the local construction materials market.

However, the company said that the demand for construction materials from public investment cannot offset the current excess supply of building materials, especially when businesses operate at their maximum capacities.

Therefore, businesses in this industry also needed to expand their positions in the domestic market, seek new export outlets to increase product consumption and overcome the current difficult period, the company suggested. 

Vũ Đăng Vinh, General Director of Vietnam Report, said this year's development prospects should be given to green building materials. Developing green materials will be a vital path for businesses to limit their dependence on scarce resources, protect the environment and meet sustainability standards.

Earlier, the Ministry of Construction had proposed reductions of taxes and interest rates, together with measures to promote the use of building materials in the context that the industry, especially cement, has had the most difficult year in a decade.

To support the building material industry to overcome the difficult time, the ministry also proposed increasing the use of cement in infrastructure projects.

Specifically, the Ministry of Transport should ask investors to use reinforced concrete viaducts for highway projects that were being designed, especially in areas of weak soil and lacking road base materials such as the Mekong River Delta.

Localities should increase the use of cement in road construction.

In addition, the policy of reducing value-added tax by two percentage points should be extended.

The ministry also proposed policies be raised to encourage deep processing and promote exports.

The construction ministry urged the Ministry of Industry and Trade to launch anti-dumping investigations on several products that saw significant increases in imports.

Producers should actively improve their competitiveness, diversify products, renovate production technologies and expand export markets, the ministry said.

Nguyễn Quang Hiệp, Deputy Director of the Building Materials Department under the Ministry of Construction, called for greater attention to developing the urban infrastructure system, transport infrastructure and drainage systems, as well as removing difficulties for the housing market.

The export tax on clinker should be kept at 5 per cent instead of 10 per cent for at least the next two years, he said. 

Sustainable production a prerequisite for international economic integration

Transitioning to a sustainable business model is no longer a “fashionable shirt” for businesses, but has become a necessary condition for businesses to improve competitiveness, resilience and be able to meet the requirements of international economic integration.

Nguyễn Tiến Huy, Director General of the Office for Business Sustainable Development (VCCI), made the statement at a business forum on green transition and finance towards net-zero emissions by 2050 held in Hà Nội on Thursday.

The event was jointly held by the Việt Nam Business Council for Sustainable Development (VBCSD) under VCCI, the Ministry of Natural Resources and Environment (MONRE), and the Japan International Co-operation Agency (JICA), bringing together hundreds of representatives from ministries, agencies, organisations and businesses.

“One of the priorities of VBCSD-VCCI is to develop and operate working groups on green transformation, Environmental, Social and Governance (ESG) and green finance, replicating these models widely and contributing additional policy recommendations to improve the legal framework supporting sustainable business development,” Huy added.

Following the renewed commitment of the global community towards Paris alignment at the COP28 Dubai in 2023, along with progressive effort of Việt Nam in steadily implementing the Paris Agreement through key legal frameworks, this business workshop brought together members of key government, business and investment communities for peer-to-peer sharing of the most updated legal regulation on emission reduction, corporate experiences towards net zero, and to discuss concrete opportunities for enabling green transformation in Việt Nam.

Nguyễn Tuấn Quang, MoNRE’s Deputy Director of the Department of Climate Change, said that Việt Nam has committed to achieving net-zero emissions at COP 26 and has joined the Just Energy Transition Partnership (JETP).

“Việt Nam is dedicated to attracting green financial flows for the development of renewable energy and low-carbon initiatives. To fulfil these commitments, the Government has been actively implementing practical solutions,” Quang said.

Việt Nam aims to reduce greenhouse gas emissions by 43.5 per cent by 2030 compared to the standard development scenario, with international support. Currently, Việt Nam is executing the Green Growth Strategy and the National Strategy on Climate Change until 2050. Additionally, the implementation plan for the National Power Development Plan VIII and the JETP plan are underway. In the agricultural sector, Việt Nam is rigorously carrying out a project to cultivate one million hectares of high-quality rice, aiming to decrease greenhouse gas emissions. Numerous policies are also being revised in this regard.

He added that in order to achieve the target of reducing greenhouse gas emissions, according to World Bank’s estimates, Việt Nam need resources amounting to US$386 billion from now until 2040, which is nearly equivalent to one year's GDP. Given this challenge and the available resources, co-operation from the entire political system and the business community is imperative.

Naoki Ikenoya from JICA Vietnam affirmed that the agency will continue its close cooperation with the Vietnamese Government and the private sector to accelerate green transition in the country.

On this occasion, the sides also approved the “Support for Planning and Implementation of the Nationally Determined Contributions in Việt Nam” (SPI-NDC) project.

The forum provided updates on Việt Nam’s policies regarding greenhouse gas emission reduction, and specific opportunities that would support the country’s green transition.

The speeches presented at the forum highlighted the Vietnamese Government’s continuous efforts to create a more favourable policy environment as well as the business circle’s role in cutting greenhouse gas emissions. 

Gov’t to revise policies on household business model

The Government has assigned the Ministry of Planning and Investment (MPI) to develop a household business project with an aim to supplement support policies and better manage the business model.

Deputy Minister of MPI Trần Duy Đông said it is important to review and propose amendments and supplements to the current regulations related to household business operation and management to promote the role of the business model.

To develop the project, the Ministry of Planning and Investment has so far worked with provinces and cities such as Thái Nguyên, Thừa Thiên-Huế and HCM City to learn about business household management in the localities.

The project’s development committee is assessing the current management situation and policies to make proposals for this type of business.

The committee is also researching experiences on business household development policies in other countries around the world to find the most suitable ones applicable to Việt Nam.

Besides building a database of business households to effectively manage the sector, the project will also aim to popularise and improve the capacity of business households on the environment; food safety and hygiene; and management, accounting and financial capacity.

Bùi Thu Thủy, deputy director of the MPI’s Agency for Enterprise Development, said there are currently no specific regulations to support business households.

According to Thủy, the Law on Support for Small and Medium Enterprises, and Decree 80/2021/NĐ-CP only have specific regulations to encourage the conversion from household business to enterprise. Specifically, business households can get free guidance and advice to set up an enterprise; an exemption of licence fees for the first three years; and consultation on tax, accounting and administrative procedures.

However, the support policies are not attractive enough to motivate business households to convert to enterprises because the actual costs related to taxes, accounting and administrative procedures for establishing and operating a householdbusiness are simpler and lower than those of an enterprise.

To improve the effectiveness of State management and supplement policies for business households, experts said the project should revise regulations on labour, insurance and corporate income tax to promote the role of the business model.

Besides, the project needs to further amend and supplement policies encouraging business households to convert to enterprises.

Fitch raises rating of Vietnam's northern power corporation

Fitch Ratings has upgraded the Vietnam Electricity Northern Power Corporation's (EVNNPC) long-term foreign-currency issuer default rating to 'BB ' with a stable outlook.

The rating for EVNNPC is at the same level with that of the parent, Vietnam Electricity (EVN) which wholly owns EVNNPC, and that of Vietnam's sovereign rating.

The "BB " rating shows EVNNPC's great efforts in improving the efficiency of production and business activities, especially when the corporation in particular and EVN, in general, faced many difficulties and challenges in financial balance in 2023.

Fitch also affirmed that EVNNPC's independent financial profile is better than the credit rating and has low risk with a debt recovery rate reaching 100% and advantages due to diverse and stable customers.

Vietnam's strong development outlook with GDP growth being projected at 6.3 - 6.5% in the 2025-2026 period will boost electricity demand and increase revenue for EVNNPC.

EVNNPC is one of the five electricity distribution corporations under the EVN, responsible for managing, operating, and selling electricity in 27 northern provinces and cities. It has been the unit with the highest commercial electricity growth rate in the EVN for many consecutive years. Therefore, it has a high need to invest in power projects to promptly meet the growth of load.

Fitch Rating's credit assessment and rating at BB with a stable outlook will help EVNNPC arrange foreign investment capital towards full autonomy in mobilising capital to implement future power projects.

Previously, in 2020, EVNNPC was for the first time assigned a credit rating of BB/stable by Fitch. In the next two years - 2021 and 2022, it was assessed at "BB" with a positive outlook. Its credit rating was upgraded to BB with a stable outlook by Fitch Rating for the first time in 2023./.

Businesses speed up green, digital transformation for breakthrough

A series of activities within the framework of the programme to support businesses in digital transformation for 2021-2025 have been implemented by the Enterprise Development Department (EDD) under the Ministry of Planning and Investment (MPI) in collaboration with ministries, sectors, and localities, concentrating on raising awareness of digital transformation among businesses nationwide.

According to EDD Deputy Director Nguyen Duc Trung, this effort helped raise businesses’ awareness of the necessity of digital transformation.

Many enterprises have embarked on digitising data, standardising process, and accelerating the application of digital technology, and moving towards more extensive and synchronised digital transformation, Trung said.

According to the annual Report on Digital Transformation 2023 recently launched by the MPI and the German Agency for International Cooperation (GIZ), there is a significant improvement in the scores evaluating businesses' readiness for digital transformation, which rose by 0.7-1.4 points compared to the previous year to 2.5 points.

Firms have understood the significance of digital transformation, with many proactively integrating digital transformation target into their development strategy as well as mobilising necessary resources for digital transformation projects, the report revealed.

According to Le Thi Quyen, head of the EDD’s electronic information office, the twin green and digital transition trend is becoming increasingly important in the world, focusing on three main pillars of increasing sustainable productivity and economic efficiency, strengthening resilience and adaptation to climate change, and minimising or eliminating greenhouse gas emissions.

In Vietnam, digital technology and digital transformation are expected to be a motivation to bolster green economic transition and realise strategic targets on green growth.

Despite having adequate awareness and knowledge about digital transformation, Vietnamese businesses often find it difficult to independently carry out this comprehensive change process.

Therefore, it is necessary to have policies, support programmes, and consultation for businesses on digital transformation roadmap, as well as assistance in applying appropriate digital transformation solutions, thus helping them make breakthroughs in the coming time, said insiders./.\

Brand building common responsibility of whole society: ministry

Building and developing product brands is a common responsibility of the whole society, not a single ministry, sector, locality, or organisation, said Vu Ba Phu, Director of the Trade Promotion Agency (VIETRADE) at the Ministry of Industry and Trade.

In a recent interview granted to the Vietnam News Agency, he said the continuous improvement of the nation brand of Vietnam in the world rankings comes as a result of the Party’s proper guidelines and the Government’s strong directions in respect of economic, political, diplomatic, cultural, and social affairs, which have contributed to the country’s prestige and stature in the international arena.

The business community, especially those having products granted the “Vietnam Value” title, has also exerted tireless efforts in building and developing brands for products and enterprises, thereby helping raise the value and standing of the nation brand in the world, he noted.

Particularly, Phu added, despites difficulties, challenges, and adverse impacts of economic and geopolitical tensions in many regions worldwide, enterprises have managed to elevate the standing while affirming the value, quality, and brands of their products and themselves in domestic and international markets thanks to their proactiveness, creativity, and self-reliance.

The Vietnam Value Programme has also been carried out in the right direction, helping build and promote the image of Vietnam as a country with quality goods and services in both domestic and international markets. As a result, the nation brand of Vietnam has quickly moved up in the global rankings, he went on.

The official said many enterprises with quality products, a number of developed economic sectors, and multiple typical products of regions will form an important basis for elevating the brand of a nation. On the other hand, when the brand of a nation is promoted in international markets, it is a guarantee of the prestige of enterprises, sectors, and localities of that nation. This will help foster competitiveness, investment attraction, and foreign trade.

To continue building brands and increasing export value of Vietnam’s key products, in 2024 and beyond, it is necessary to keep improving all-level authorities and sectors’ awareness of brand building and development so that due attention and resources are given to the work.

Ministries, sectors, localities, and business associations need to overhaul brand building and development plans, step up capacity building for stakeholders, and assist with registering and protecting brands as well as advertising products, especially key and potential ones, in key foreign markets.

In addition, brand building and development must be conducted concurrently at the national, regional - local - sectoral, and enterprise levels, according to the VIETRADE official./.

Eco-industrial conversion saves nearly VNĐ70b a year

The conversion of existing industrial zones into eco-industrial zones contributed to savings of nearly VNĐ70 billion (US$2.8 million) annually in Việt Nam during 2020-24, according to the Ministry of Planning and Investment (MPI) and the United Nations Industrial Development Organisation (UNIDO).

A total of 603 projects have been implemented in industrial zones across the country to convert existing facilities to be greener and more resource-efficient during the period, which has helped reduce CO2 emissions by 8,910 tonnes per year.

Lê Thanh Quân, head of the ministry's economic zone management department, said Việt Nam's 422 industrial zones play a vital role in attracting domestic and foreign investment projects, many by large international companies.

He said sustainable development, green growth, circular economy and digital economy have become dominant trends.  

"The initial conversion to the eco-industrial zone model has brought economic, social and environmental benefits while mobilising large resources from the private sector for green industrial solutions, ensuring energy security, sustainable development and climate change adaptation," he said.

He said the ministry welcomes the implementation of the eco-industrial zone model as part of the National Strategy for Green Growth for the period 2021-30.

Lê Thị Thanh Thảo, UNIDO Representative in Việt Nam, said economic, environmental and social benefits from the conversion will contribute to scaling up the implementation of the eco-industrial zone model to develop a comprehensive and sustainable industry within the country.

Sibylle Bachmann, Head of the Development Cooperation Agency, Swiss Embassy in Việt Nam, said the Swiss government will continue to support Việt Nam, through UNIDO in realising green economic policies, especially in promoting the application of new technologies to implement a circular economy and encourage private sector commitment to green investment. 

State reserves department authorises purchases of 220,000 tonnes of rice for 2024

The government has greenlit a plan to purchase a total of 220,000 tonnes of rice for the year 2024, according to the General Department of State Reserves.

The plan included 22 reserve departments in cities and provinces across the country, who are put in charge of 196 bidding packages to purchase domestically produced, long grain 15 per cent broken rice, milled from the 2024 Spring harvest.

Contractors are to compete in open as well as online bidding sessions this month with a deadline set on May 2.

For bidding packages valued at over VNĐ10 billion, contractors must produce a security deposit of 3 per cent of the package and 1.5 per cent for those valued under the amount. The winners will be announced and published by the national bidding system.

In cases of price fluctuations, local reserve departments are tasked with reporting to the general departments for guidance and instructions to ensure purchase prices will not exceed those regulated by the Ministry of Finance. 

Brand building common responsibility of whole society: ministry

Building and developing product brands is a common responsibility of the whole society, not a single ministry, sector, locality, or organisation, said Vu Ba Phu, Director of the Trade Promotion Agency (VIETRADE) at the Ministry of Industry and Trade.

In a recent interview granted to the Vietnam News Agency, he said the continuous improvement of the nation brand of Vietnam in the world rankings comes as a result of the Party’s proper guidelines and the Government’s strong directions in respect of economic, political, diplomatic, cultural, and social affairs, which have contributed to the country’s prestige and stature in the international arena.

The business community, especially those having products granted the “Vietnam Value” title, has also exerted tireless efforts in building and developing brands for products and enterprises, thereby helping raise the value and standing of the nation brand in the world, he noted.

Particularly, Phu added, despites difficulties, challenges, and adverse impacts of economic and geopolitical tensions in many regions worldwide, enterprises have managed to elevate the standing while affirming the value, quality, and brands of their products and themselves in domestic and international markets thanks to their proactiveness, creativity, and self-reliance.

The Vietnam Value Programme has also been carried out in the right direction, helping build and promote the image of Vietnam as a country with quality goods and services in both domestic and international markets. As a result, the nation brand of Vietnam has quickly moved up in the global rankings, he went on.

The official said many enterprises with quality products, a number of developed economic sectors, and multiple typical products of regions will form an important basis for elevating the brand of a nation. On the other hand, when the brand of a nation is promoted in international markets, it is a guarantee of the prestige of enterprises, sectors, and localities of that nation. This will help foster competitiveness, investment attraction, and foreign trade.

To continue building brands and increasing export value of Vietnam’s key products, in 2024 and beyond, it is necessary to keep improving all-level authorities and sectors’ awareness of brand building and development so that due attention and resources are given to the work.

Ministries, sectors, localities, and business associations need to overhaul brand building and development plans, step up capacity building for stakeholders, and assist with registering and protecting brands as well as advertising products, especially key and potential ones, in key foreign markets.

In addition, brand building and development must be conducted concurrently at the national, regional - local - sectoral, and enterprise levels, according to the VIETRADE official./.

Businesses speed up green, digital transformation for breakthrough

A series of activities within the framework of the programme to support businesses in digital transformation for 2021-2025 have been implemented by the Enterprise Development Department (EDD) under the Ministry of Planning and Investment (MPI) in collaboration with ministries, sectors, and localities, concentrating on raising awareness of digital transformation among businesses nationwide.

According to EDD Deputy Director Nguyen Duc Trung, this effort helped raise businesses’ awareness of the necessity of digital transformation.

Many enterprises have embarked on digitising data, standardising process, and accelerating the application of digital technology, and moving towards more extensive and synchronised digital transformation, Trung said.

According to the annual Report on Digital Transformation 2023 recently launched by the MPI and the German Agency for International Cooperation (GIZ), there is a significant improvement in the scores evaluating businesses' readiness for digital transformation, which rose by 0.7-1.4 points compared to the previous year to 2.5 points.

Firms have understood the significance of digital transformation, with many proactively integrating digital transformation target into their development strategy as well as mobilising necessary resources for digital transformation projects, the report revealed.

According to Le Thi Quyen, head of the EDD’s electronic information office, the twin green and digital transition trend is becoming increasingly important in the world, focusing on three main pillars of increasing sustainable productivity and economic efficiency, strengthening resilience and adaptation to climate change, and minimising or eliminating greenhouse gas emissions.

In Vietnam, digital technology and digital transformation are expected to be a motivation to bolster green economic transition and realise strategic targets on green growth.

Despite having adequate awareness and knowledge about digital transformation, Vietnamese businesses often find it difficult to independently carry out this comprehensive change process.

Therefore, it is necessary to have policies, support programmes, and consultation for businesses on digital transformation roadmap, as well as assistance in applying appropriate digital transformation solutions, thus helping them make breakthroughs in the coming time, said insiders./.

New era opens for 5G commercialisation

The March auction of frequency bands for 5G marks an important milestone in the country’s 5G commercialisation. The auction of the B1 and C2 frequency band blocks was successful, while the C3 band was not, as not enough qualified businesses were interested.

However, the price is not the issue. When setting the price, the Authority of Radio Frequency Management of the Ministry of Information and Communications consulted statistics on frequency band prices in the international market, and tried to come up with a relatively reasonable calculation for the Vietnamese market based on population conditions, GDP per capita and other market factors to create competition between network operators.

Currently, the market has four network operators, competing to get three frequency bands. When entering the auction, both the B1 and C2 bands witnessed really fierce competition through dozens of rounds. With such competition, I think the price is reasonable, especially compared to the total cost a network operator spends to operate the 5G mobile network over 15 years.

Network operators competed fiercely for the B1 band. The first reason for this is the value, which is much higher than the C2 band. Moreover, the coverage area of a base transceiver station (BTS) of the B1 band is 1.3-1.7 times wider than the C2 band, leading to a huge reduction in investment costs for network operators.

Secondly, the B1 band can be used for both 5G and 4G, while C2 can only be used for only 5G.

The current needs of the Vietnamese market and the world generally are mainly 4G services. According to forecasts, by 2028 about half of subscribers will be using the 4G frequency band, especially in developing countries like Vietnam.

This means that for major 4G operators, the B1 band is extremely valuable because it not only enables them to continue providing services, but also helps optimise the network, reduces business costs, and exploits 4G on the system, bringing tens of millions of US dollars in benefits to any winning network operator.

That is also why the starting price of the B1 band is twice as high as C2. This does not consider the difference when receiving and using the band of each business.

Currently, Viettel is the network operator with the largest number of data subscribers, accounting for more than half of the market share, with about 40 million subscribers. Calculating the cost of bandwidth per subscriber, Viettel has a much greater advantage. In addition, this is also the network operator with the largest number of BTS stations, so the bandwidth cost per station is also advantageous.

Viettel subscribers are based in all regions, with a much larger proportion of rural, mountainous, and island users than other networks. Users in these areas do not have the need to use 5G soon, and their demand for 4G is still high. Therefore, the B1 band is even more meaningful to Viettel, compared to other carriers.

Viettel, with their economic potential, cannot ignore this B1 band. However, not only Viettel wants to get this ‘golden frequency band,’ as other network operators do. This is the reason why we saw fiercer competition in the auction through dozens of bidding rounds. And a network operator only accepted to leave the game when the final bidding level reached the limit of effective bandwidth usage.

Vietnam still plans to commercialise 5G this year, so the auction is important for the information and communications industry, opening a new era for 5G, which is the basis for developing digital infrastructure and serving national digital transformation. The auction marked a historical milestone, as this was the first time it was implemented under the new regulations. Everything went well, and the state has obtained an appropriate budget.

For the network operator, calculating on technology, coverage, and market share, the successful auction of the two bands with two different prices is in accordance with their network deployment requirements and business conditions.

Frequency bands are an essential resource for telecommunications businesses, just like land is essential for real estate. Therefore, auctions are critical for investing in mobile networks. With a price of $104 million for 15 years, each network operator only has to pay $6.9 million each year. Compared to the vast amounts of investment annually in the network, the amount is good value.

Durian prices in Mekong Delta seeing unexpected dive

After remarkable rises in the first three months this year, durian prices in the Mekong Delta have been witnessing unwanted drops for the past ten days.

Durian farm owner Nguyen Thai Hung in Cai Lay District of Tien Giang Province sadly shared that only 10 days ago, the price of Monthong durian was as high VND200,000 (US$8) per kilo, and even unripe fruits were welcomed; but now the price halves. Other durian varieties like Ri6 also see a fall to VND60,000-70,000 ($2.4-2.8) a kilo. Similar situations can be seen in neighbouring localities like Cai Be District (Tien Giang Province), Phong Dien District (Can Tho City), Giong Rieng District (Kien Giang Province).

“The costs for nurturing durian are extremely high, at about VND600 million ($23,900) from the beginning to the first harvest. We have loaned VND1 billion ($39,870) to invest in our 3-hectare durian orchard. Now that the fruit prices are dropping when the crop is not fully harvested yet, the future seems too worrisome”, shared durian farm owner Dang Hong Minh from Phong Dien District.

There are various reasons why this is happening, the main one being loose monitoring over the quality of exported durian. In other words, seeing that durian prices were lucratively high, many Vietnamese wholesalers signed contracts with their Chinese partners to buy in large quantities. They then forced durian farmers to pick fruits even when they are not sufficiently mature, leading to unsatisfactory quality and driving customers away.

Severe salinity intrusion recently has also negatively influenced both the quality and yield of durians in the Mekong Delta. Taking advantage of this, domestic wholesalers purposedly collect the fruit with unreasonably low prices.

At present, Phong Dien District owns a durian orchard surface area of 3,530ha, producing an output of more than 32,600 tonnes per year. In the previous three months, when durian prices were still high, due to supply shortage, wholesalers accepted even immature fruits and dipped them in chemicals so that these fruits can ripen unnaturally before selling them domestically.

Others play a dirty trick of harvesting immature fruits just enough for the value of their deposit (normally 5 percent of the area) before stopping and forcing farmers to decrease the offered prices by 20-30 percent; otherwise, they will not continue to buy.

Aware of these tricks, the People’s Committee of Phong Dien District has just issued a formal dispatch asking the local authorities of its communes strictly monitor durian trading and timely impose severe punishments to law breakers. Durian farmers are advised not to harvest fruits too immaturely so that the quality is maintained in international markets.

General Secretary Dang Phuc Nguyen of the Vietnam Fruit and Vegetable Association affirmed the above situations do happen in the Mekong Delta right now, not to mention a fierce competition from Thai durian, resulting in less popularity of Vietnamese durian among Chinese consumers.

It is high time Vietnam seriously review the quality of its exported durian, especially when the prices have dropped significantly like this. In Thailand, selling immature durian earns a severe fine whereas in Vietnam this is rather common without any sanction or control. Vietnam should urgently introduce regulations as well as product quality standards for each type of durian, in addition to establishing specific state units to handle problems in this aspect.

The Plant Protection Department (under the Ministry of Agriculture and Rural Development) informed that until now, 876 durian growing area codes and durian packing facility codes in Vietnam are certified to export durian to China.

Among the 23 localities owning such codes, Tien Giang Province is the leader, followed by the provinces of Lam Dong, Dak Lak, and Binh Phuoc. These valuable codes should be strictly monitored and managed to ensure the quality of exported durians and minimize the cases of borrowing growing area codes for export purposes.

In the past 10 years, the surface area of durian orchards in the Mekong Delta has increased by 20,600ha to 33,200ha, with an annual yield of 330,000 tonnes. As durian prices in the first three months this year were attractively high, many farmers have decided to switch from rice or jackfruit to durian growing, with some not even following the local land use planning.

The Ministry of Agriculture and Rural Development reports that during the first three months this year, fruit and vegetable export turnover reached $1.23 billion, a rise of 25.8 percent compared to this time last year. This is the first time that such exports have exceeded $1 billion right in the first quarter.

It is forecast that the annual growth rate of fruit and vegetable export in 2024 will increase by 15-20 percent as opposed to last year, reaching a record high of $6-6.5 billion. Notably, durians become the most profitable exported fruit, with a predicted turnover of $254 million in the first quarter (a rise of 66 percent compared to last year). The proportion of durian exports to China accounts for 98 percent of the total durian export turnover.

Real estate prices are on the rise in downtown Hanoi

As the economy recovers, favorable interest rates and the lessons learned from past price rises, such as "the longer you wait, the higher the price," provide greater motivation for homebuyers. This has led to increased demand for residential properties in recent times.

With limited supply, prices for primary apartments in Hanoi remain high, with newly launched projects being in the premium segment. Meanwhile, secondary apartments priced at around VND3 billion (US$120,000) each, mainly in the suburbs, are becoming increasingly scarce and in demand. A private house priced at around VND4 billion ($160,000) with an area of 30-40 square meters has become an attractive option for many families looking to settle down.

Remarkably, the rise in prices is also fueled by investment demand. Alley houses are seen as liquid assets with title deeds (unlike many houses in Hanoi, which lack title deeds or face a lengthy process to obtain them) and affordable prices. They offer high rental yields in the context of rising demand for residential property. Moreover, there is a growing demand for retail space in small alleyways as small and medium enterprises seek to cut costs, given that most of their revenue comes from e-commerce platforms.

According to data from the real estate website batdongsan.com.vn, interest in and transactions of private houses in Hanoi have gradually improved in the first quarter of 2024. Notably, there has been a significant increase in interest in some suburban districts, as central districts no longer offer many choices.

Market research data from the Vietnam Association of Realtors (VARS) indicates that the prices of individual houses being transacted have increased by 5-15% compared to the end of 2023. While this price rise shows signs of irregularity, it is undeniable that there is significant interest. In particular, in the first quarter of 2024, some real estate agents recorded the highest number of individual house transactions in the past five years.

"The private residential market is establishing a new price level as supply continues to lag behind demand from investors and residents, particularly with the ongoing urbanization trend," said Nguyen Chi Thanh, Vice Chairman of VARS.

He advises that inner-city house prices are unlikely to fall, and those with genuine needs should consider purchasing a house if they find a product that suits their financial capabilities without excessive borrowing.

He also noted that the price trend of Hanoi's residential real estate mirrored the price increase in the apartment segment from late 2021 to mid-2022 when the market faced difficulties. Although prices fell during challenging times, they quickly rebounded. Interest in individual houses remained stable even during the downturn.

"Aside from small individual houses, apartment buildings in alleyways are also heating up as the number of tenants and buyers of mini-apartments gradually recovers," he added. This trend, combined with individual housing, puts pressure on urban infrastructure, leading to congestion and associated risks such as fire hazards. Unlike commercial housing developments, which are subject to complex procedures, these apartments require minimal infrastructure, with little room for transport or green spaces.

Insiders have said that to address the housing challenges faced by residents and alleviate urban overload, the state needs robust policy solutions to develop social housing in urban areas, improve planning and construction approval processes, and promote public investment to shift demand from central areas to surrounding provinces and regions with more affordable prices and greater land resources. The state should also encourage the development of affordable commercial housing.

"The most viable solution is to develop large cities vertically, replacing terraced houses with high-rise apartments. This aligns with development trends in more advanced countries, where new construction in recent years has consisted mainly of high-rise apartments," said Dr. Nguyen Van Dinh, Vice President of the Vietnam Real Estate Association.

Meanwhile, architect Pham Thanh Tung, Chief of Staff at the Vietnam Association of Architects, pointed out that the government's social housing policy has been in place since 2009. Still, in most urban areas, particularly Hanoi and Ho Chi Minh City, social housing projects are mostly integrated into commercial housing developments. Land and infrastructure, especially public transport infrastructure for social housing, have not been given sufficient attention.

"Social housing development has faced many challenges, especially in terms of land allocation and the construction of public transport infrastructure to facilitate access to social housing neighborhoods. Moving forward, we need to learn from these experiences. Additionally, regulatory agencies need to reconsider the mandatory 20% land reserve in commercial housing projects for the construction of social housing. Moreover, the planning principle for social housing projects is that they should not be too far from the center and should have sufficient infrastructure, especially public transport," Tung emphasized.

Vietnam Airlines ramps up flights for upcoming holidays

Vietnam Airlines will add more than 100 domestic and international flights totaling more than 15,000 seats for the National Liberation Day (April 30) and May Day holiday which will last five days.

A representative from the national flag carrier said it is working to optimise the use of its current fleet, and add early-morning and late-night flights on the busy routes.

A total of 575,000 seats will be provided on 2,900 flights during the peak season from April 26 to May 5, with those for domestic and international routes increasing 10% and 12%, respectively.

Most of the additional flights are on the routes that connect famous tourist destinations such as Hanoi/HCM City and Da Nang, Hue, Quy Nhon, Nha Trang, Da Lat, Phu Quoc, and Con Dao.

Regarding the international network, the airline is increasing its frequency to Japan, the Republic of Korea, Thailand, Laos, and Cambodia.

To date, the seat occupancy rate on the flights has reached 70%.

The Vietnamese aviation industry is grappling with a severe shortage of aircraft and high input costs, making airfares more expensive. Against this backdrop, Vietnam Airlines has joined hands with partners and competent agencies to carry out various measures since the end of 2023.

Along with pushing forward regular maintenance schedules to ensure aircraft readiness for operation during peak seasons, the carrier has optimised its resources to reduce aircraft turnaround time, and increase the number of early-morning and late-night flights by nearly 40% to meet travel demand during summer.

Vietnam Airlines is adding wide-body aircraft to its domestic network, and negotiating with leasing companies to secure "wet-lease" aircraft for the summer peak./.

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