Domestic coffee prices in recent days have continued to increase. Just in six months, they have increased nearly three times, and are currently at the highest level in the past few decades.

According to the industry, farmers in the Central Highlands Province of Gia Lai have almost sold out. Most households sell fresh coffee right after harvest or sell green coffee at a price of VND80,000-VND90,000 a kg.

In mid-April, the price of green coffee in the Central Highlands reached VND110,000 a kg. In a wait-to-see mood, farmer Le Van Nghia in Nam Giang Commune of Gia Lai Province still refused to sell his cup of joe requested by prospective buyers, waiting for the price to increase to VND 120,000- VND 130,000 a kg. If he sold his coffee at VND 120,000 a kg, he would earn about VND1.8 billion and earn a profit of 70 percent of total revenue excluding labor, materials, fertilizer and irrigation costs.

The increase in coffee prices in recent days benefitted farmers in key coffee growing areas, who have only been able to sell for less than VND 50,000 a kg for a long time. However, for businesses in the Vietnamese coffee supply chain including purchasing agents to suppliers, exporters, traders, and roasters, the rapid and high price increase is causing many challenges and it revealed the unsustainability of Vietnam's coffee industry.

Many businesses have to buy at high prices to have goods and promptly deliver them to previously signed partners. Coffee expert Nguyen Quang Binh commented that many import-export traders are worried because the purchase price is too high and they don’t have enough capital to collect goods. Without coffee, their factories are at risk of temporary operation suspension. Furthermore, businesses also fretted about insufficient supply by farmers even though the contract had been signed.

A representative of Neumann Vietnam Company shared that business and trade activities in the Vietnamese coffee industry are quite stable. However, in the 2023-2024 crop year, delays in delivery based on contracts not only affected the enterprise's Vietnamese coffee export activities but also the roasters who were the enterprise's customers. Breaching contracts and signed agreements is widespread and leads to the risk of disruption of the coffee supply chain.

At current prices, farmers benefit while businesses face difficulties revealing the vulnerability of the industry’s sustainable development. Mr. Nguyen Nam Hai, Chairman of the Vietnam Coffee Cocoa Association ( Vicofa ), said that in the coffee production - trading and export chain, every step should ensure sustainability. Recently, Vicofa has issued warnings about signing contracts far from harvest season. For example, from October to December, coffee is harvested, but since August, businesses have purchased coffee, which will create very high business risks.

Vicofa believes that currently, banks necessarily support businesses. Vicofa leaders proposed that in response to the very high increase in coffee prices compared to the previous crop year, banks should consider increasing loan limits and provide preferential interest rates for coffee import and export businesses to ensure signed contracts.

Banks propose raising small loan cap to 400 million VND

Credit institutions have proposed to raise the cap of small loans not requiring feasible capital use plans and related person information from 100 million VND to 400 million VND (15,710 USD).

The proposal was made as the State Bank of Vietnam (SBV) has recently published draft amendments to the Circular 39/2016/TT-NHNN regulating lending activities of credit institutions and foreign bank branches to customers. Accordingly, for small loans not exceeding 100 million VND, borrowers will not have to provide feasible capital use plans and related person information to credit institutions.

The draft policy aims to simplify procedures for granting loans with small value, which will contribute to creating more favourable conditions for customers to access bank credit for daily life and consumption demands to minimise illegal usury. Besides, it will help banks expand lending activities.

Banks suggested raising the value limit for small loans, especially credit cards and overdrafts, because borrowers often ask for such small loans to meet consumer needs so it is difficult for them to have adequate and accurate reports to prove feasible capital use plans.

For loans with small value, it is not feasible to require borrowers to provide reports on loan capital usage and prove that the loan is used for the correct purpose stated in the loan agreement, banks explained.

Besides, credit institutions propose that the circular issue simpler regulations on documents and procedures to prove borrowers' financial capacity, purpose of capital use and inspection of loan use for small value loans.

Regarding the draft regulation, Mai Thị Trang, deputy director of the SBV’s Monetary Policy Department, said the law currently does not have regulations on a small value. It is almost a new concept. The drafting committee has decided to choose the 100 million VND mark as a small value after referring to a number of regulations on consumer loans of finance companies. Under Circular 43/2016/TT-NHNN on consumer loans of finance companies, the cap for consumption outstanding loans does not exceed 100 million VND.

In addition, the committee has also based on Circular 06/2023/TT-NHNN that regulates outstanding loans for individual customers to serve life needs. Under the circular, outstanding loans of an individual borrower at a credit institution must not exceed 100 million VND.

At the same time, according to the latest statistical report of the General Statistics Office, Vietnam’s GDP per capita in 2023 is estimated to reach about 101.9 million VND.

Therefore, the mark of 100 million VND is the legal basis for the drafting committee to research and propose that a small loan is worth 100 million VND in the draft circular./.

More efforts needed to maintain export growth to China: Insiders

Exporters should further strengthen trade connections and improve the quality of their goods to sustain export growth to China as this is no longer a "lenient" market, said insiders.

Vietnam’s exports to China continue to be a bright spot in the context that many major economies around the world are facing difficulties, which strongly impacts Vietnam's foreign trade activities.

According to the Ministry of Industry and Trade, in the first quarter of 2024, import and export activities to China - Vietnam's largest trading partner - continued to show a positive recovery.

Vietnam's exports to the country hit an estimated 12.68 billion USD, up 5.2%, ranking second after the US, while spending 29.4 billion USD on imports from China, up 24.4% year-on-year, maintaining its position as Vietnam's largest import market. Last year, two-way trade reached approximately 171.2 billion USD, accounting for over 25% of Vietnam's total import-export turnover.

China consistently maintains its position as Vietnam's largest importer of fruits and vegetables with 14 key agricultural exports, marking up 61.5% of the Southeast Asian nation’s total fruit and vegetable export turnover.

Other contributors to the turnover of Vietnam’s exports to China include computers, electronic products, and components; mobile phones and components; cameras, camcorders, and components; machinery, equipment, spare parts; and processed foods.

Representative of the Vietnam Trade Office in Beijing Luong Van Tai said China's economy shows positive signs of recovery, therefore if Vietnamese goods meet standards, it will be very advantageous to enter this market.

The stable Vietnam-China trade cooperation has contributed to promoting bilateral trade development, he added.

With its advantages in market size, consumption trends, and geographical location, China remains a key market for Vietnamese exports. Realising its commitments under the ASEAN-China Free Trade Agreement, China has reduced tariffs on over 8,000 products imported from Vietnam.

Furthermore, as the shipping charges are rising, many Chinese businesses have been seeking import sources in surrounding regions, including high-quality agricultural products and fruit from Vietnam.

However, experts said that China is no longer an "easygoing" market as before but a highly competitive one now, especially for agricultural and fruit products.

To capitalise on existing advantages, ministries, sectors, localities, and especially businesses need to change their approach and improve the quality of their exports, they said, adding that Vietnamese businesses should strictly adhere to regulations regarding product quality and origin traceability to penetrate deeper into this large market.

The Trade Promotion Agency under the ministry has recommended actively exchanging and connecting information related to market demand and trade regulations and policies of China, and actively participating in international trade fairs and exhibitions to establish direct connections and boost trade activities, thus fostering stable, long-term, and effective economic and trade cooperation.

Deputy Director of the agency Hoang Minh Chien said the ministry has been sending delegations of Vietnamese businesses to various Chinese localities and trade fairs there, while welcoming many delegations of Chinese localities and enterprises./.

Vietnam - an enticing destination for foreign investors

Vietnam is an attractive destination for foreign investors thanks to its high, stable growth, large domestic market and young, well-educated human resources, said Paulo Medas, head of the International Monetary Fund (IMF) team to Vietnam at the Annual Meetings of the IMF and the World Bank Group (WB) held recently in the US.

According to Medas, despite rising geopolitical instability on the globe, Vietnam’s economy experienced a growth rate of 5.66% in the first quarter of this year. Exports continue to see an upward trend, facilitating overall growth until the end of this year.

He forecasted that Vietnam’s economic growth is predicted to expand by nearly 6% this year thanks to the recovery of domestic demand and the Government's support fiscal policies. However, Vietnam needs to have a flexible fiscal policy to cope with risks and ensure substantial growth, he noted.

The expert said that the country continues to receive a large volume of foreign direct investment amidst the shifting of supply chains to Asia and Vietnam is one of the investment destinations for foreign investors. 

Nevertheless, to remain its attractiveness, Vietnam should continue to improve its business environment, streamline administrative procedures, develop infrastructure, especially for green energy development, and promote innovation, he added./.

Vietnam imports nearly $352 million worth of fertiliser in Q1

Imported fertiliser volume soared in March, with China being the biggest supplier, according to preliminary statistics from the General Department of Customs.

Last month, Việt Nam imported about 429,000 tonnes of fertiliser worth US$123 million, up 52.3 per cent month-on-month in quantity and 35 per cent in value.

The average import price was $287 per tonne, down 11.6 per cent from February.

China was the leading supplier, with a total of nearly 175,000 tonnes. This represented a significant growth of almost 44 per cent in quantity, over 55 per cent in value and nearly 8 per cent in price from the previous month.

In the first three months of 2024, the country imported over 1.12 million tonnes of fertiliser, valued at nearly $352 million, with an average price of over $314 per tonne.

China remains the main importing market, accounting for approximately 42 per cent of the total volume and over 29 per cent of the total import value.

Việt Nam also imports fertilisers from other markets, including Russia, Southeast Asia, members of the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Dr. Phùng Hà, Vice Chairman and Secretary General of the Việt Nam Fertiliser Association (FAV), said that Chinese fertilisers have consistently been the most imported into Việt Nam.

This is due to China's significant role as a major producer and exporter of fertilisers worldwide.

Currently, Việt Nam faces a shortage or inability to domestically produce certain types of fertilisers, Hà told plo.vn. For instance, in the case of DAP, domestic production capacity is only around 400,000 - 500,000 tonnes, whereas the demand exceeds 1 million tonnes, necessitating imports.

Regarding NPK fertilisers, Việt Nam import those with high nutrient content while exporting those with lower nutrient content to neighbouring markets, Hà added.

According to the Vice Chairman of FAV, the country’s fertiliser supply is not solely reliant on foreign markets.

Some fertilisers, like urea and superphosphate, are produced for both domestic use and export.

The proportion of Việt Nam’s fertiliser exports has been increasing, reaching $1.7 billion in 2022 due to restrictions on fertiliser exports by certain countries.

VND300 billion rest area proposed for Quy Nhon-Chi Thanh expressway

Project Management Board 85 under the Ministry of Transport has proposed a VND300 billion plan to construct a rest area on Quy Nhon-Chi Thanh expressway.

The proposed rest area at Kilometer 41+500 in Xuan Lam Commune, Song Cau, Phu Yen Province will meet the huge demand for amenities along the expressway when it is in place.

Funding for the rest area will be sourced from investors, with an estimated VND5.6 billion to be spent on compensation, support and resettlement.

Construction is projected to last 15 months, with public infrastructure works planned for completion within nine months. This project is part of a larger plan for the eastern section of the North-South expressway, encompassing a total of 36 rest areas.

Regarding the 24 rest areas managed by the Ministry of Transport, 10 are planned for the 2017-2020 phase, and 11 others for the 2021-2025 phase. Efforts are underway to finalize locations and documentation for the remaining three rest areas.

The project management board is in the process of selecting contractors for consultancy packages across 21 rest areas. For eight of these rest areas, which are part of the 2017-2020 phase of the North-South highway project, tenders were invited in March, with bidding scheduled to commence on May 20. Investor selection is expected to conclude by June 2024.

For the remaining 13 rest areas, including two from phase 1, the project management board is in the process of finalizing proposals for submission to the Ministry of Transport for approval in April. Approval and tender invitations are slated for May, with investor selection anticipated to wrap up by August 2024.

Upon contract awards, investors will prioritize the construction of parking lots, gas stations, and restrooms within two to three months to accommodate the needs of the public as the expressways become operational.

Central region upgrading traffic infrastructure for connected development

Instead of poor shabby hamlets amidst vast white sand, many Central provinces now own modern urban areas thanks to timely traffic infrastructure upgrades.

Twenty years ago, along the coast from Da Nang City to Hoi An City (in Quang Nam Province), there used to be small desolate fishing villages full of poor residents. With a strong aim to escape this poverty, generations after generations of state leaders in these localities have joined force to improve a connected route for better marine economy for the region.

The first fruitful result was the introduction of a ‘5-star’ coastal road linking Son Tra District of Da Nang City to Cua Dai estuary in Quang Nam Province in 2007. Along this road are charming tourist resorts and hotels as well as luxurious golf courses.

Encouraged by that success, Quang Nam Province continued to pour over VND7.1 trillion (US$279 million) into building Cua Dai Bridge and a coastal route linking Hoi An City – Tam Ky City and Chu Lai Airport. Finished in 2016, this most-wanted route offers more access to famous tourist cities of Da Nang, Hoi An, and Ky Ha Port as well. It is going to be connected to the Dung Quat – Sa Huynh route in Quang Ngai Province.

A similar story can be found in Quy Nhon City in Binh Dinh Province, whose traffic system used to be troublesome to use as the city is surrounded by the sea, mountains, and lagoons.

The first route to make a breakthrough in linking this city to neighboring areas is the 33—kilometer one towards Song Cau Town – the capital of aquaculture in the Central region in Phu Yen Province, which was completed in 2001. After that was a bloom of several international-standard tourist resorts.

In 2013, Rencontres du Vietnam – a scientific organization founded by Prof. Tran Thanh Van – selected Quy Hoa Town as its base. Since then, a lot of important international scientific conferences have been held year by year, welcoming thousands of global scientists from 40 countries to come and exchange experience, including 20 Nobel winners.

Not long after that, Binh Dinh was proposed to invest in another work in memorial of Uncle Ho and his father Nguyen Sinh Sac, who had been assigned as the Governor of Binh Khe District in the province. Uncle Ho was brought by his father to this place to learn French in Quy Nhon French – Vietnam School. Binh Dinh Province decided to build a square to commemorate this historical event.

Quy Nhon City has undergone many scientific planning activities to form a series of coastal roads, most of which have large space for public parks and community squares. Particularly, in 2002, the province constructed a 7-kilometer bridge linking Phuong Mai Peninsular – Bac Ha Thanh downstream. This cost-effective work has contributed to the sustainable development of coastal villages in the peninsula.

Moving north to Nghe An Province, the coastal communes of Quynh Lap (Hoang Mai Town), Quynh Bang, Quynh Luong, Quynh Minh (Quynh Luu District), Dien Hai, Dien Trung, Dien Van (Dien Chau District), Nghi Yen (Nghi Loc District) used to be underdeveloped places despite being sited near National Highway No.1A merely because of access limits.

In 2022, Nghe An Province decided to invest in a route with a length of 64.47km from Nghi Son to Cua Lo, using a capital of VND4.65 trillion ($182.7 million). The plan was wholeheartedly backed up by local residents as it is supposed to help improve the marine economy here as well as reinforcing the national defense in the Nghe An – Ha Tinh region.

Following the footstep of Nghe An Province are other province of Quang Binh, Quang Tri, Thua Thien-Hue, Quang Nam, Quang Ngai, Binh Dinh, Phu Yen, and Khanh Hoa. They have started numerous traffic infrastructure projects to form a long link of coastal roads worth thousands of billions of VND for economic growth.

For instance, the 100-kilometer route from Dung Quat to Sa Huynh ancient cultural area connects Dung Quat Industrial Park in Binh Son District of Quang Ngai Province to Hoai Nhon Town in Binh Dinh Province - the capital of aquaculture in the Central region.

Director Luu Nhat Phong of the Traffic Project Management Board of Binh Dinh Province informed that taking advantage of the financial support from the central Government, his province has added in the provincial budget and the ODA capital to have around VND7 trillion ($275 million ) to complete six important coastal road construction projects. The province has actively taken care of land clearance tasks for these projects, showing its strong determination and calling upon the aid of higher level authorities.

According to the Department of Planning and Investment of Binh Dinh Province, to mobilize resources for the growth of coastal infrastructure, right at the beginning, the province has identified public investment as an important resource to attract more capital from other sources. Therefore, it has boldly boosted the development of coastal roads as core routes while also paying attention to the East – West connection with three major routes, worth an investment of VND3.8 trillion ($149 million).

Similarly, Phu Yen Province is now focusing on completing its coastal route of 132.5km, becoming its core traffic line to better exploit the advantages of coastal areas in the provinces and to link to neighboring regions of Binh Dinh Province, Khanh Hoa Province, and the Central Highlands for economic and tourism activities.

Apparel enterprises concern over business difficulties in Q2, despite rising orders in Q1

Domestic textile and garment enterprises will face a lot of pressure in production and business in the second half of 2024 due to unstable orders and many other factors.

Although working with many partners, the Southern Textile and Garment Corporation have struggled to close orders because customers are still relatively cautious about market developments.

Nguyễn Hồng Liên, deputy general director of the Huế Textile and Garment JSC, said that in regard to knitwear orders so far in 2024, customers are putting off orders until the third and fourth quarters.

Although the number of orders is increasing, businesses face problems of delivering on time, and firms need to step up productivity pace.

In addition to closely following market developments, businesses in the last six months of the year need to build a new scenario to help stabilise production if the market suddenly reverses compared to the first six months of 2024, Liên said.

The Việt Nam Textile and Apparel Association said the apparel enterprises will still face many difficulties this year, especially the increase in shipping fees due to the geopolitics conflict affecting shipping routes via Red Sea with some customers putting pressure on the textile and garment businesses to share the fee.

There are also added pressures from the European Union market that requires sustainable fashion and textile strategies, starting from ecological design, sustainable production and consumption of textile products, and even recycling of clothing waste.

Many brands also have made a request that from now until 2030, firms must use renewable energy accounting for 30 per cent of power in production, and by 2050, 100 per cent.

In addition, the labour issue is also a big difficulty. There is currently no shortage of orders but a shortage of labour as many staff have returned to their hometowns to seek other job opportunities.

To fill the gap, some localities are recruiting workers from other countries.

Policies on unemployment and social insurance have also created challenges in the labour market with a rise in minimum wage which raises input costs, but product prices have not increased.

Trương Văn Cẩm, deputy chairman of Việt Nam Textile and Apparel Association (VITAS), said the Government's VNĐ120 trillion programme on building social housing needs to be accelerated to ensure workers stay longer.

Cẩm said that in the first quarter of this year, the textile and garment exports improved with higher orders, and many businesses have signed contracts to produce until the third quarter.

Nguyễn Hùng Quý, general director of the Southern Textile and Garment Corporation, said the increase in orders was partly due to moving from China and some Southeast Asian countries to Việt Nam.

In the first three months, the garment and textile sector’s export turnover grew nearly 10 per cent year-on-year to around $10 billion, a momentum for enterprises to fulfil the set target of $44 billion for the whole year.

VITAS said that, since the beginning of the year, global textile and garment companies and supply chains continue to choose Việt Nam to place orders. Việt Nam ranks third in the world for textile and garment exports.

Bình Thuận exhibition in HCM City promotes specialties

An exhibition event for Bình Thuận specialities is being held in District 1 to introduce the province’s regional specialties and OCOP products to HCM City locals and businesses.

The event is organised by HCM City’s Investment and Trace Promotion Centre and Bình Thuận’s Department of Investment and Trade, as part of a series of co-operation activities for socio-economic development between the city and some provinces in the South Central Region of Việt Nam.

It features 21 businesses from Bình Thuận with 188 products that make use of the province’s natural advantages such as fish sauce, seafood, dragon fruits and bird nests.

Biện Tấn Tài, deputy director of Bình Thuận’s Department of Industry and Trade, said that this event is an opportunity for them for promote their products directly to HCM City consumers and potential partners, in order to expand their market and export to foreign markets.

This helps ensure stable sales outlets for agricultural products and the establishment of sustainble supply chains for Bình Thuận businesses with HCM City distributors.

Trần Phú Lữ, director of ITPC, said that Bình Thuận acts as a bridge between the Southeast region, the Central Highlands and the South Central region, and is located adjacent to the key southern economic zone.

It has advantages in agricultural production and seafood.

On the other hand, HCM City is a big market with developed distribution systems and a is gateway for exports, he said.

It is willing to support Bình Thuận businesses and co-operative groups in trade facilitation, especially for the province’s exemplary agricultural products.

The exhibition event is held on 92-96 Nguyễn Huệ Street, District 1, and it lasts until April 28.

Bình Thuận Province currently has 128 products certified with One Commune One Product, a national programme to facilitate the development of Vietnamese regional specialties.

It has 94 three-star products, 32 four-star products and two five-star products.

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