Tan Cang - Cat Lai Port in HCM City has increased service charges for packing, loading and unloading of refrigerated containers with effect from May 1.

The tariffs for packaging frozen preserved goods will go up from VND970,000-1.4 million ($US42-60) per container to VND1.3-1.8 million ($56-78) depending on type.

For frozen seafood products wrapped in plastic film, it will go up from VND1.7-2.4 million ($74-104) to VND2.3-3.3 million ($100-143).

The Tan Cang Sai Gon (Sai Gon New Port) Corporation, the operator of the port, said the hikes are meant to correspond with the general price levels in the region and help improve service quality.

There is also upward pressure due to global factors, it said.

The shipment of refrigerated containers through Tan Cang - Cat Lai has increased significantly, and so it has upgraded infrastructure and equipment, it said.

Seafood and fruit exporters need refrigerated containers for shipping their goods long distances to places like the US and Canada.

Since last year, they have also been facing a shortage of empty refrigerated containers in Viet Nam because a huge number has been stuck in the US due to the COVID-19 pandemic.

It is estimated that the cost of sea freight under long-term contracts has increased by nearly 97 per cent from a year ago. 

VN drilling company to spend $13.71 million into new equipment

PetroVietnam Drilling and Well Services Corporation (PV Drilling) plans to purchase more machines and equipment worth 315 billion VND (13.71 million USD) to maintain its services.

PV Drilling General Director Nguyen Xuan Cuong said domestic drilling service suppliers have to face a fierce competition as Vietnam has yet to adopt a policy on the protection of local contractors, making it hard for them to offer services abroad. Meanwhile, the capacity of PV Drilling’s rigs has not been fully tapped, he said, explaining that oil and gas firms are cautious to implement projects amid surging oil prices.

There will be no significant changes in exploration and exploitation programmes until the stability of oil prices is restored and the COVID-19 pandemic brought under control, Cuong predicted.

Moreover, PV Drilling is not an exception to adverse impacts of the political conflict between Russia and Ukraine which has caused production costs to rise, affected material and equipment supply, and triggered inflation risks.

To surmount such difficulties, the corporation has taken concerted measures, including those aiming to ensure safety and quality of its services and lure domestic and foreign clients.

It has also kept a close watch on the macro-economy, the Russia-Ukraine conflict and market developments to take timely countermeasures, maintained connectivity with other members of the Vietnam National Oil and Gas Group (PetroVietnam) to utilise equipment and infrastructure, and boosted the development of services that are of its strength and the research of new services.

Solar power plant officially inaugurated in Quang Binh province

The central province of Quang Binh on April 24  officially inaugurated a solar power plant with a capacity of 49.5 MW.

The plant, which is part of a renewable energy power complex in Le Thuy district, has total investment capital of more than 1 trillion VND (nearly 44 million USD). Dohwa Engineering Group from the Republic of Korea is the investor of the project.

Construction for the plant began in June 2020 and completed in December of the same year.

Vietnamese economic growth likely to reach 6.5% this year

Vietnam is set to achieve an economic growth rate of 6.5% this year, although its inflation target of below 4% is not achievable, according to the annual publication of Vietnam Economic Review 2021 released on April 25 by the National Economics Univer

The projection was made by a research team of the National Economics University at a national scientific conference held on April 25 to release the publication themed "Vietnam's economy in 2021 and prospects for 2022: Macro-economic stability and financial soundness amid the COVID-19 pandemic".

According to the latest publication, the Vietnamese economy is anticipated to encounter numerous difficulties ahead this year due to new virus strains, escalating global political instability, and a hike in oil prices. These issues have all threatened global recovery, especially major Vietnamese trading partners such as the United States, the EU, and China, thereby affecting trade and investment in the nation.

Furthermore, the governments and central banks of major countries, especially the US, have moved to tighten their monetary policy due to concerns surrounding inflation, which will have an impact on the local economy with monetary policies aimed at supporting economic recovery being narrowed in the future.

Moreover, instability risks still exist due to turmoil occurring in the real estate and securities markets, with credit capital flows not being poured into the production sector, thereby leading to unhealthy indicators in the banking sector.

Experts advised the Government to focus on ensuring sustainable economic development, effectively adjusting fiscal and monetary policies to avoid risks of macroeconomic instability, and providing timely support for local businesses to recover in the post-pandemic period.

Taiwan increases imports of fruit and vegetables from Vietnamese market

Vietnam has become the second largest fruit and vegetable supplier to Taiwan (China), with the market share of the product coded HS 07 increasing as part of total Taiwanese imports, according to the Ministry of Industry and Trade.

Statistics compiled by the Taiwan Customs Administration indicate that this market imported 49,200 tonnes of fruit and vegetables worth US$53 million during the opening three months of the year, representing a decline of 18.4% in volume and 22.9% in value against the same period from last year.

As well as importing from the nation in the reviewed period, Taiwan (China) mainly imported fruit and vegetables coded HS 07 from China and the United States,  accounting for 47.9% of their total imports.

Most notably, imports of the product from the Vietnamese market reached 8,900 tonnes worth US$8.8 million, an increase of 3.3% in volume and 27.2% in value, with the import proportion from Vietnam also inching up 3.8%.

Furthermore, imports from China witnessed an increase of 8.8% in volume and 17.3% in value, while imports from the US suffered a fall of 13.8% in volume and 2.2% in value.

Throughout the reviewed period, Taiwan (China) primarily imported onions, shallots, leeks, and other garlic and onion vegetables coded HS 0703 with 12,800 tonnes, worth US$10.5 million, a fall of 29.3% in volume and 63.7% in value against last year’s corresponding period. Vietnam has also become the major supplier of the product to both Argentina and Australia.

Shrimp exports grow 44% on effective use of FTAs

The first quarter of 2022 saw shrimp exports hit US$955 million, up 44% over the same period last year thanks to high demand from Vietnam’s major markets and effective use of free trade agreements (FTAs).

China alone spent US$106 million on importing Vietnamese shrimps in the reviewed period, representing a year-on-year rise of 70%.

The United States, which is also another major consumer of Vietnamese shrimp, imported nearly US$195 million worth of the product from Vietnam in the first quarter, a year-on-year increase of 45%.

The US currently accounts for over 20% of Vietnam’s shrimp exports, and this market is projected to continue to have steady growth as seen in 2021. The US imported nearly 137,000 tonnes of shrimp products in 2021, an increase of 25,000 tonnes compared to 2020.

The European Union also consumed US$159 million worth of Vietnamese shrimp in the first quarter, rising 66% compared to the same period of 2021. It’s noteworthy that black tiger shrimp imports expanded 107% over the same period last year. The largest importers of black tiger shrimp in the EU are Germany, the Netherlands, Switzerland, Belgium, and France.

VASEP predicted Vietnam’s shrimp exports this year would have steady growth thanks to good demand from markets and incentives from free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU – Vietnam Free Trade Agreement (EVFTA), the UK – Vietnam Free Trade Agreement (UKVFTA), and the Regional Comprehensive Economic Partnership (RCEP).

ADB operations reach $22.8 billion in 2021 to boost pandemic response, promote green recovery

The Asian Development Bank (ADB) committed $22.8 billion from its own resources in 2021 to help Asia and the Pacific tackle the immediate effects of the coronavirus disease (COVID-19) pandemic and promote a green recovery.

Financial and operational results were published today in ADB’s Annual Report 2021. The report summarizes how ADB supported its developing member countries (DMCs) through a combination of finance, knowledge, and partnerships.

“ADB firmly believes that addressing the impacts of the pandemic and supporting long-term development are not mutually exclusive,” said ADB President Masatsugu Asakawa. “Our sustained COVID-19 response has laid the foundations for an inclusive, resilient, and green recovery, ensuring progress toward our Strategy 2030 objectives.”

The $22.8 billion committed in 2021 includes loans and guarantees, grants, equity investments, and technical assistance provided to governments and the private sector. In addition, ADB mobilized $12.9 billion in cofinancing.

Of ADB’s 2021 commitments, $13.5 billion, or 59%, was for pandemic response, although many of these commitments, such as strengthening the health sector, will also help the region long after the pandemic is over.

The bank’s pandemic response support included $4.9 billion in rapid disbursing financing for governments to support structural reforms and address debt sustainability. The financing included $4.6 billion in policy-based lending and $250 million through the COVID-19 Pandemic Response Option.

AHAV proposes merging two departments into one due to difficulties

The Animal Husbandry Association of Vietnam (AHAV) has proposed merging two departments into one due to difficulties.

Lately, AHVA has petitioned the Prime Minister to merge the Department of Livestock Production and the Department of Animal Health under the Ministry of Agriculture and Rural Development into one unit saying that domestic livestock production is facing many difficulties, most livestock households and small and medium-sized enterprises are unprofitable, facing the risk of mass bankruptcy when input prices especially grain and animal feed continue to rise.

According to the association, diseases have still developed complicatedly especially dangerous infectious diseases such as African swine fever, avian influenza, and skin rash on cattle. Imports of livestock products are increasing, including frozen products temporarily imported for re-export which has put a lot of pressure on the market for domestic livestock products.

Prices for livestock products have generally declined more than prices for food or feed grains Moreover, The output prices of livestock products have decreased, or gone up and down erratically with potential risks.

In addition, the cost of veterinary medicine in livestock in Vietnam always accounts for over 10 percent of the cost of livestock products, while other countries in the world account for only about 3 percent to 5 percent. Manual slaughter still accounts for 80 percent.

Currently, more than 24 countries are eligible to export all kinds of meat to Vietnam, but Vietnam has only been granted the conditions to export heat-treated chicken and suckling pork for four countries and territories.

First wind power plant in Ca Mau Province inaugurated

Tan Thuan Wind Power Plant, the first wind power plant of Ca Mau Province in Tan Thuan Commune, Dam Doi District, whose construction started at the end of 2019, was inaugurated on April 24.  

Tan Thuan Wind Power Plant Project Phase 1 and Phase 2 have a total capacity of 75 MW, with a scale of 18 wind turbine towers, invested by Ca Mau Renewable Energy Investment Joint Stock Company with a total investment of over VND3.8 trillion (US$164.14 million).

When being put into operation, Tan Thuan Wind Power Plant will provide the national power system with about 225 million kWh per year, contributing to ensuring energy security, promoting local economic development, and creating jobs for local people, as well as a stable income of about VND45 billion ($1.95 million) per year for the budget of Ca Mau Province.

Railway sector to start selling train tickets for upcoming national holidays

Vietnam Railways announced the selling of train tickets for the upcoming Reunification Day holiday from April 30 and May 1 starting on April 25, and summer holiday from May 26-August 21.

Accordingly, it will reopen pairs of the North-South Thong Nhat trains, SE1/SE2, SE3/SE4, and will sell train tickets for pairs of Thong Nhat trains, including SE1/SE2, SE3/SE4, SE5/SE6, SE7/ SE8.

The railway sector will also resume trains on routes of Hanoi-Vinh/Dong Hoi/Hue and HCMC-Phan Thiet/Nha Trang/Quy Nhon/Quang Ngai/Da Nang.
On some routes, tickets are already sold out for the majority of trains scheduled to depart in the National Reunification Day (April 30) and the May Day (May 1).

Vietnam has great opportunities in agricultural exports despite global turbulence
 
Higher competitiveness and product quality are essential for Vietnam products to penetrate markets with high standards for imports.

Experts said there remain huge opportunities for Vietnam’s agricultural exports despite the impacts of the Russia-Ukraine conflict on global trade, especially with the diversified network of trade agreements that the country is a part of.

Vice General Secretary of the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA) Bui Huu Them expected strong prospects for Vietnam’s exports of wooden products to the US and EU, currently accounting for 80% of the total turnover in this field.

Meanwhile, Vice Chairman of the Vietnam Food Association Do Ha Nam said the fact that western countries are boycotting Russian products means Vietnam could further import fertilizers, wheat, or oil with more competitive prices, but urged the country to take into consideration the impacts of sanctions imposed on Russia.

According to Nam, this is the right time for Vietnam to boost the export of rice and other farm produce to the EU, thanks to the 0% import tariff under the EU-Vietnam Free Trade Agreement (EVFTA).

Echoing Nam’s view, General Director of Vietnam Fruit and Vegetables Association (Vinafruit) Dang Phuc Nguyen forecast Vietnam could double its rice export turnover to Europe and US by taking advantage of the growing demand for Vietnamese farm produce.

Nguyen, however, urged local firms to further improve product quality to meet high standards such as the GlobalGAP in these markets.

On the prospects of Vietnam’s farm produce exports, former Vice Director of the General Statistics Office Vu Thanh Liem said sanctions imposed on Russia are causing disruption to ongoing supply chains, and therefore, offer chances for others to take their place.

General Director of the General Department for Agricultural Products Processing and Market Development under the Ministry of Agriculture and Rural Development Nguyen Quoc Toan said the agency has instructed localities to step up seafood production in anticipation of growing demand from the EU, US, and Russia.

In this regard, Deputy Director of the Ministry of Industry and Trade’s Import and Export Department Tran Thanh Hai noted higher competitiveness and product quality are essential for Vietnam products to penetrate demanding markets.

Work on social housing project begins in Ha Nam

The Housing and Urban Development Corporation has begun construction of a social housing project in the northern province of Ha Nam.

Spanning 4.9ha in Duy Tien town, the project comprises four blocks with 564 apartments and some low-rise houses. The project's apartments will cost at least 380 million VND (around 16,300 USD) each.

The country needed an estimated 220 trillion VND (9.6 billion USD) to build about 294,600 units of social housing for low-income earners in urban areas and industrial parks in the 2021-25 period, according to the Ministry of Construction.

Notably, low-income people in urban areas needs about 131,100 units with a total investment of about 138 trillion VND.

There are 266 social housing projects with more than 142,000 units across the country, totalling more than 7.1 million sq.m. Another 278 projects with 274,000 units and a total area of 13.8 million sq.m are under development.

Ha Long applies mobile app to boost smart city building

To boost digital transformation and smart city building, Ha Long city in northern Quang Ninh province has put into use the Ha Long Smart app to serve people and businesses.

Via this app, part of the intelligent operations centre (IOC) in Ha Long, people can easily report problems to authorities, access online public services, and seek routes to agency and departmental headquarters, tourist attractions, hotels, schools, healthcare facilities and pharmacies, while staying up-to-date with information from local administrations and media outlets.

The app, launched in February this year, also provides contact details for health stations from grassroots to provincial levels so people can access COVID-19 treatment advice, local authorities said.

All public opinions given via Ha Long Smart will be sent to the IOC and then to the agencies in charge of the issues mentioned for settlement. Settlement results will also be publicised on the app so that people can check and assess state agencies’ performance.

Authorities said the app will help increase state agencies’ interaction with locals, thereby contributing to a civilised, modern, open, transparent, and friendly living environment in the city.

So far, Ha Long Smart has recorded more than 33,000 downloads and over 800 accounts.

Shrimp exports predicted to grow 20% in April

The prediction is based on strong growth recorded in March which brought the total export value of the product in the first quarter to more than 900 million USD, a yearly rise of 37 percent.

Also, the current period is the time for European and US markets to prepare food supply for consumers during the summer holiday as well as stockpiles for the fall.

Also in response to the increasing market demand, many farmers in the Mekong Delta have increased their investment in farming techniques and technology serving export.

Statistics of the Ministry of Agriculture and Rural Development show Vietnam’s shrimp farming area is currently over 740,000 hectares, with output topping 900,000 tonnes per year. Although the area only increased by about 1.5 percent annually, the yield grew sharply by 10 percent a year.

Six global trends that will shape Vietnam’s future: HSBC

Vietnam is recovering strongly and there are signs that the economy is shifting from survival to growth mode, said CEO of HSBC Vietnam Tim Evans, stressing the need for the country to effectively navigate global megatrends that will shape its future and ensure that it reaches its full potential in the coming years.

The first trend is climate change. According to Evans, climate change is both an opportunity and a challenge for a country like Vietnam. As a nation with an extensive coastline and one of the world’s most important rice producers, the prospect of rising sea levels and falling crop yields is a threat to its well-being and prosperity.

The second trend is digitalisation, as the COVID-19 pandemic has accelerated the shift towards a seamless digital world and has triggered changes in consumers’ behaviour that are likely to have lasting effects.

Regarding vaccine equity, recent events have shown that unless every country and community can obtain vaccines quickly and fairly, no one will be able to return to normal, and a truly global economic recovery will not be possible.

Vietnam has been a model in this regard. Almost 80 percent of the population has already been vaccinated, one of the highest rates in the world. The Ministry of Health has set a target to complete the vaccination campaign for children aged 5 to 11 in the second quarter of this year.

Strengthening global cooperation in vaccine research and development would help countries that struggle to compete with richer nations to obtain affordable vaccines and key medical supplies, he said.

The fourth trend is trade, Evans said, noting that trade still offers the shortest and most direct route back to economic growth.

So far, Vietnam has signed 15 free trade agreements (FTAs) – including the recent Regional Comprehensive Economic Partnership which has been in force since the beginning of this year – making it one of the most open economies globally. These FTAs are expected to play a major role in boosting economic growth this year. Since the nation has fully opened its borders for international travel since March, the government wants to ensure that the country returns to its pre-pandemic growth cadence. This strategic goal can be achieved with the aid of Vietnam’s FTAs and other bilateral agreements.

Regarding geopolitics, the HSBC Vietnam leader said that the ongoing geopolitical tensions are expected to continue to inject unwelcome uncertainty into the global economy. Vietnam’s openness and principled stand on settling international disputes by peaceful means and in accordance with international law is a valuable voice in a confused international environment.

Finally, for inequality and an inclusive recovery, Evans stressed that the impact of the pandemic has been profound, leaving a legacy of increased inequality and elevated debt. It hit the poorest and most vulnerable the hardest, pushing millions more into poverty and entrenching inequality.

It is imperative that low-income developing countries are given the vaccines and support they need to recover. This is also an opportunity to build community resilience to minimise the impact of natural disasters and prevent future crises, he added.

VinFast chooses B-EV Motors as electric vehicle distributor representative in Israel

VinFast Trading and Service Limited Liability Company, a subsidiary automaker of Vietnamese conglomerate Vingroup, said on April 25 that it has chosen B-EV Motors as its electric vehicle distributor representative in Israel.

VinFast's first two electric car models, VF 8 and VF 9, will be made available for reservation in the Israeli market by the fourth quarter of 2022 and come with a 10-year or the first 200,000-km warranty policy.

National flag carrier, Kon Tum province cooperate in investment, tourism promotion

Vietnam Airlines and the People’s Committee of Kon Tum province have pledged to strengthen the promotion of the image, improve the efficiency of investment and tourism promotion activities, and make positive contributions to socio-economic development of the Central Highlands locality, and popularise the image, products and services of the national flag carrier.

Under a comprehensive cooperation agreement for the 2022 – 2026 period freshly signed between the two sides, Kon Tum will help promote the brand, products and services of Vietnam Airlines to local people, tourists and agencies to encourage the use of airline services.

Meanwhile, Vietnam Airlines will promote information about destinations, tourism events, diplomatic activities, culture, and investment and trade promotion events of the province on its planes and products. In addition, the airline will coordinate to organise fact-finding tours for domestic and international travel agents and reporters and support the province’s working delegations in promotion activities and calling for investment in the locality in foreign markets.

Business matching webinar on seafood products with EU held

The Vietnam Trade Promotion Agency (Vietrade) under the Ministry of Industry and Trade coordinated with Trade Offices and Embassies of Vietnam in EU member states to host the Vietnam – EU Business Matching Webinar on Seafood Products 2022 on April 25 – 26.

Part of this year’s national programme on trade promotion, the event aimed to support Vietnamese seafood producers in seeking buyers in the EU.

According to Vietrade Deputy Director Le Hoang Tai, the EU has remained one of Vietnam’s largest seafood importers for years. Taking effect from 2020, the EU-Vietnam Free Trade Agreement (EVFTA) has provided Vietnam with even broader access to the EU market, with all the tariffs on aquatic products eliminated in seven years.

Vietnam’s aquatic exports reached 2.4 billion USD in the first quarter of 2022, up 40 percent from last year.

Shipments of tra fish to the EU totalled 28 million USD in the first two months of this year, up 76 percent year-on-year, while those of shrimp hit 159 million USD, up 66 percent, on the back of rebounding demand post-pandemic.

Several industries ramp up recruitment as economy recovers

More than 36,500 new jobs were created in Ho Chi Minh City in the first quarter, 1,800 more than the same period last year, according to the municipal Department of Labour, Invalids and Social Affairs.

More than 80,500 found employment during the same period, a year-on-year increase of 4,100 people, a department report says.

It says that the labour market in the city is recovering gradually, with an increase of workers in industry-construction and service sectors and a decline in agriculture, fisheries and forestry.

Of the 4.9 million strong workforce in the city, agriculture, fisheries and forestry account for just 0.96 percent, while industry and construction and services sectors account for 37.15 percent and 61.89 percent, respectively.

The Q1/2022 labour market update released by payroll, recruitment & headhunting agency Adecco Vietnam shows hiring requests in the first quarter of this year was similar to the period last year.

However, the number of active job seekers and applicants reduced by approximately 20 percent.

Vietnam strives for export growth rate of 5-6 percent in 2021-30

Vietnam has set a goal of achieving an average export growth rate of 6-7 percent in the 2021-30 period, following the Government's strategy on import and export released recently.

Specifically, the country sets an annual average export growth goal of 8-9 percent between 2021 and 2025 and 5-6 percent in the subsequent five years.

Meanwhile, annual import growth is expected to average 5-6 percent in 2021-30. The growth will be 7-8 percent in 2021-25 and 4-5 percent in the following five years.

Under the strategy, the State expects to achieve a trade balance by 2025 and a sustainable trade surplus by 2030 period.

Manufactured and processed products will account for 88 percent of export turnover by 2025 and 90 percent by 2030 with the proportion of exported medium and high-tech goods reaching about 65 percent by 2025 and 70 percent by 2030.

By 2025, Asia will make up 49-50 percent of the country's total export turnover, 46-47 percent by 2030. It will be followed by the Americas with 32-33 percent by 2025 and 33-34 percent by 2030 and Europe with 16-17 percent by 2025 and 18-19 percent by 2030.

The Government targets increasing the proportion of value-added, high-tech, green, and environmentally friendly products, pursuant to the strategy.

For agro, forestry and fishery goods, the strategy's goal is to increase the proportion of deeply processed products with high economic value; improve their abilities to meet regulations, quality standards, food hygiene and safety, standards of social responsibility and environment; proactively adapt and overcome trade barriers and trade remedies in foreign markets.

In terms of the industrial goods, the top priority will be given to increasing the domestic value of exported goods while reducing dependence on imported raw materials, spare parts and components.

The strategy also emphasises the importance of controlling the export of domestically produced goods, luxury goods, and non-essential products while facilitating the import of modern machinery and equipment, and advanced production lines from countries with developed industries. This will create a premise to improve the productivity, quality and competitiveness of export products and carry out an in-depth restructuring of export goods.

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