Deputy Prime Minister Le Minh Khai has signed the Government’s borrowing and debt repayment plan for 2024, with a borrowing cap set at VND676 trillion.

Compared to the previous year, this represents an increase of over VND31.6 trillion. Of the total borrowing, VND659.93 trillion, or 98%, will be allocated to balance the central budget, with a little more than VND16.12 trillion earmarked for re-lending purposes.

The primary sources of funding include government bond issues, official development assistance (ODA), and foreign concessional loans.

For debt repayment, the Government plans to allocate around VND454 trillion, including nearly VND395.9 trillion for direct debt repayment and around VND58.1 trillion for repayment of project loans.

Local government debt repayment is estimated at nearly VND7 trillion, comprising around VND4.1 trillion for principal repayment and nearly VND2.9 trillion for interest payments.

Over the period spanning 2024 to 2026, the approved borrowing ceiling amounts to more than VND1.8 quadrillion, with the majority allocated to the central budget and lending activities.

During this period, the Government’s total debt repayment is capped at VND1.1 quadrillion, covering both direct (VND976.4 trillion) and re-lent debt repayment obligations (VND126.4 trillion).

Total retail sales of goods, services up 8.2% in Q1

The total revenue from the retail sales of goods and consumer service in March was estimated at 509.3 trillion VND (20.3 billion USD), up 0.5% month-on-month and 9.2% year-on-year, according to the General Statistics Office (GSO).

In the month, the retail revenue of food and foodstuffs rose by 11.6%, household appliances and tools 16%, garment 10.1%, accommodation and catering services 15.8%, and tourism and travel services 66.1% against the same period last year.

In the first quarter, the total revenue from retail sales of goods and consumer service was estimated at 1.53 quadrillion VND, up 8.2% year-on-year, excluding the price factor.

Of the total, the retail sales of goods were estimated at 1.19 quadrillion VND, accounting for 77.4% of the total and up 7% year-on-year (up 4.5% if excluding the price factor).

That of food and foodstuffs surged 11.8%, household appliances and tools 15%, garment 8%, vehicles (except cars) 4.9%, and cultural and educational products 17.7%.

Revenue from accommodation and catering services in this quarter was estimated at 174.8 trillion VND, up 13.4% year-on-year, while that from tourism and travel services surged by 46.3% to 14.1 trillion VND./.

Vietnam learns from China’s experiences in building int’l free trade zone model

A delegation of the Ministry of Planning and Investment (MPI) led by Minister Nguyen Chi Dung paid a working visit to China’s Hainan province from March 31 to April 1 to learn how to build and develop an international free trade zone model.

The MPI is currently the standing agency of the steering committee on formulating the regional and international financial centre project, and Minister Dung is its deputy head. Meanwhile, the Da Nang People's Committee is proposing specific mechanisms and policies applicable to the central city, with a proposal related to the pilot establishment of the Da Nang free trade zone which is associated with Lien Chieu Port and Da Nang International Airport.

In Hainan, Dung had a working session with representatives from the China State Construction Engineering Corporation (CSCEC), during which they exchanged experiences in developing a free trade port, including tax exemption and reduction policies.

The MPI delegation visited the free trade centre and duty-free trade zone in Haikou, Hainan, and visited the Haikou Jiangdong New Area

The delegation had a working session with the Hainan Provincial Bureau of International Economic Development. Minister Dung proposed the two sides exchange specific experiences in building the Hainan Free Trade Port.

Speaking at the working sessions, Dung said that his working visit also aimed at deepening the two countries’ trade and investment cooperation.

He proposed the two sides increase connectivity, particularly in transport; intensify collaboration in priority fields such as digital economy, green economy and circular economy; and enhance people-to-people exchanges./.

Vietnam - launching pad for Canadian companies to enter Indo-Pacific market

Export Development Canada (EDC)'s news website edc.ca has recently published an article on opportunities for Canadian companies when investing in Vietnam.

According to the article, Vietnam is quickly becoming the new Asian hub with rapid macro-economic growth and opportunity.

To help Canadian exporters and investors take advantage of the vast potential within this market, within the framework of the Canadian trade delegation's visit to Vietnam, EDC announced that it will open a new representative office in Ho Chi Minh City to ensure it can provide Canadian exporters and investors with what they need to enter the market.

Mairead Lavery, President and CEO of EDC, said that Vietnam is unique and it will offer an opportunity for Canadian companies and investors to penetrate this market, adding that EDC will act as a partner that can provide support.

According to Lavery, Vietnam offers Canadian exporters a geographical advantage to enter other Indo-Pacific markets with ease while also providing companies a cost-competitive advantage in doing business.

With a growing middle class and one of the fastest growing economies in the world, exporters and investors should view this market as a significant opportunity for growth in the region, he said, noting that locating at the heart of the Indo-Pacific make Vietnam attractive for exporting and developing a company’s hub.

According to New World Wealth, Vietnam is positioned to see the sharpest spike in wealth growth in the world over the next decade. In addition, the Vietnamese government has committed to achieving carbon neutrality by 2050. This creates an opportunity for investors and companies in a variety of sectors of Canadian strength, including clean technology and renewable, agriculture, advanced manufacturing and infrastructure, the article wrote.

Mary Ng, Canada’s Minister of Export Promotion, International Trade and Economic Development, said that Vietnam's rapid economic growth in the Indo-Pacific region positions the country as a promising hub for Canadian businesses.

As Canada's largest trading partner in the Association of Southeast Asian Nations (ASEAN) and a key member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Vietnam offers favourable prospects for exporters and investors of the North American nation.

The new EDC representative office in HCM City will be a valuable resource for Canadian companies seeking to grow into the Indo-Pacific region, she added./.

Hanoi’s development investment increases by 8.5% year on year

The development investment in Hanoi in the first quarter of 2024 increased by 8.5% to 86.6 trillion VND (3.48 billion USD) compared to the same period last year, the municipal People’s Committee has announced.

Of the total investment, 31.4 trillion VND was from the State, 48.7 trillion VND from the non-State sector and 6.5 trillion VND from direct foreign investment (FDI), which saw year-on-year increases of 10%, 8.2% and 4.4%, respectively.

By investment categories, 60.6% of the city’s development investment in the first quarter of this year was channeled into basic construction. Funding for purchasing fixed assets for production; major repairs and asset upgrades; additional working capital and other investment capital also increased.

In March, Hanoi licenced 15 new FDI projects with total registered capital of 33.1 million USD. In addition, 14 operating projects were permitted to increase by 12.5 million USD in total. Nine foreign investors contributed capital and bought shares with combined investment of 1.8 million USD.

In the first quarter of 2024, the city attracted 946.8 million USD in FDI. Of that, 42 new projects were licenced with total capital of 902.6 million USD; 31 projects increased their investment by 21.6 million USD; foreign investors contributed capital and purchased shares worth 22.6 million USD.

Besides activities to attract investors, Hanoi has paid much attention to speeding up infrastructure development projects, particularly transport ones such as Ring Road No. 4 running through Hanoi, Hung Yen and Bac Ninh; Hoang Cau-Voi Phuc section of Ring Road No. 1; upgrading Ba La-Xuan Mai section of National Highway No. 6; and Tay Thang Long route from Vo Chi Cong street (Tay Ho district) to Son Tay township./.

Vietnam Expo 2024 underway in Hanoi

The Vietnam International Trade Fair (Vietnam Expo 2024), one of the leading international trade exhibitions in Vietnam, kicked off in Hanoi on April 3, attracting 480 enterprises from 15 countries and territories worldwide.

The 33rd event of this kind features nearly 600 pavilions, up 20% compared to the figure last year.

Besides traditional promotion activities, product showcases, and trade connections, the 4-day expo promotes business-to-business (B2B) matching through an online platform to attract both domestic and international commercial organisations and enterprises.

Exhibitors can upload information, images, and videos related to their businesses onto digital platforms and engage in direct interactions with visitors throughout the entire 365 days of the year.

Prominent among the countries and territories exhibiting products and services at the event are India, the Republic of Korea, Russia, and China, demonstrating the attractiveness of the Vietnamese market in drawing investment and fostering sustainable foreign trade development cooperation.

As a highlight at the expo, the Hanoi Promotion Agency on Investment, Trade and Tourism (HPA)’s pavilion serves as a venue to promote the strengths, potential, and investment policies of Hanoi, and exports and capabilities of Hanoi’s enterprises.

High-quality commodities for export and OCOP (One Commune One Product) products are being placed on display at the event.

Within the framework of the expo, specialised events will be designed, including supply-demand connection events, seminars, conferences, and forums with various debate sessions.

The event is expected to attract 20,000 visitors./.

Number of new businesses hits decade-high in Q1

The General Statistics Office (GSO) reported a decade-high number of new businesses established nationwide in the first quarter, reaching 36,224.

Taking into account enterprises resuming operation, the number reached 59,848. 

Also in Q1, nearly 74,000 enterprises ceased operations. The majority of them (72.1%) were temporary suspensions, with 53,365 expected to resume operation in the future. 

A positive sign emerged in March, when the number of newly established businesses and those resuming operation, at 17,136, exceeded that of those temporarily withdrawing from the market (10,531).

The GSO report identified small-scale enterprises, which have capital of below 10 billion VND (416,000 USD) as the most common type of businesses exiting the market (nearly 90%). It is also noteworthy that over 74% of those stopping operation were in the service sector.

To address challenges and stimulate production and business activities, the GSO proposed that the Government consistently prioritise growth in tandem with ensuring macro-economic stability, controlling inflation and ensuring the major balances of the economy.  

Its other suggestions include promoting new growth drivers such as fine-tuning mechanisms and laws to pool and effectively use all resources, developing six socio-economic regions and seizing new opportunities arising from the global and regional shifts in supply chains, trade and investment.

GSO General Director Nguyen Thi Huong highlighted a need for the Government to boost digital transformation, green transition, circular economy, and emerging sectors such as semiconductor chips and artificial intelligence; draw green financial resources to develop renewable energy, new energy sources and hydrogen; as well as establish and develop global and regional financial centres in Vietnam./.

Can Tho city, Australia’s rice group cooperate to improve rice production

The Mekong Delta city of Can Tho wants to enhance cooperation with SunRice, Australia’s largest rice production and distribution group, so as to improve production efficiency and income for local farmers, Chairman of the city People’s Committee Duong Tan Hien said on April 3.

In his working session with SunRice Group’s leaders, Hien highlighted that Can Tho city, the hub of the Mekong Delta region, has a total rice cultivation of some 75,000 hectares which yield more than 1.3 million tonnes a year.

Last year, the city shipped 976,000 tonnes of rice abroad, up 23% year-on-year, and rice export in the first quarter of this year continued to enjoy robust growth, according to Hien.

The city will focus on developing high-tech agriculture to better product quality, and branching out more large-scale rice field to increase productivity, he said, adding it is engaging in a project to grow one million hectares of high-quality rice with low carbon footprints in the Mekong Delta until 2030.

However, Hien pointed out that ineffective rice production has made local livelihoods in the country’s rice granary challenging, elaborating small-scale and unplanned farming has led to “bumper crops, falling prices” or vice versa.

Can Tho wishes to cooperate with SunRice, boasting considerable experience in rice plantation, management and processing, to improve local production value, he said, stressing the local administration will create favourable conditions for the group to study and develop a plant in the city for further cooperation.

Chief Executive Officer and Managing Director of SunRice Group Paul Joseph Serra said the group, which has been present in more than 50 countries across the globe, wants to join in sustainable rice cultivation project freshly launched by the Vietnamese Government.

He expressed his hope to build a plant in Can Tho city, a move to help Vietnamese rice reach out the high-end markets such as the US and Europe.

The one-million-hectare high-quality and low-carbon rice cultivation project will be deployed in the Mekong Delta localities of An Giang, Kien Giang, Dong Thap, Long An, Soc Trang, Can Tho, Bac Lieu, Tra Vinh, Hau Giang, Ca Mau, Tien Giang and Vinh Long. It is part of an effort to restructure the region's production system and value chain with a focus on sustainable farming practices, higher product value, greater business and production efficiency, as well as improved livelihoods of rice farmers, in accordance with Vietnam’s commitment to environmental protection, climate change response and greenhouse gas emission reduction./.

Int’l processing, packaging exhibition opens in HCM City

The 17th International Processing and Packaging Exhibition and Conference (ProPak Vietnam 2024) opened in Ho Chi Minh City on April 3.

The three-day event attracts 310 exhibitors from 30 countries and territories, including India, the Republic of Korea, China’s HongKong, Singapore, Spain, and the US. It also features a number of international conferences, seminars, and technical sessions.

Joseph Ross Jocson, Chairman of Asian Packaging Federation, said visitors will meet many leading experts and enterprises in the industry to update a variety of solutions to improve production and business in the future. In addition, the business community is also helped to directly access useful information in the domestic and global markets on packaging processing and packaging technology.

Chu Thi Van Anh, Vice President and General Secretary of the Vietnam Beer - Alcohol - Beverage Association (VBA), said that coming to ProPak Vietnam 2024, businesses will have a chance to look for new packaging materials, access technology and innovative technical ideas from around the world, and cooperate with potential suppliers. Meanwhile, visitors will have an opportunity to explore large operating machineries with authentic factory-like experiences right at the exhibition.

ProPak Vietnam is a top sourcing and networking trade event for food, beverages, and pharmaceutical processing and packaging technology in Vietnam. Since its inception in 2003, ProPak Vietnam has grown into a regional industry hub which has helped improve the processing and packaging sector in Vietnam and beyond./.

Aircraft shortage seen affecting summer flight schedules

Vietnam’s aviation industry is bracing for a shortage of aircraft during the upcoming summer travel season, potentially affecting flight schedules and sending air ticket prices higher, according to Dinh Viet Thang, director of the Civil Aviation Authority of Vietnam (CAAV).

Thang attributed the shortage to a global engine recall, fleet restructuring, and regular maintenance, among others.

Last September, Pratt & Whitney (PW), an American aircraft engine manufacturer, issued a recall for PW1100 engines on Airbus A321neo aircraft due to a manufacturing defect. This move affected 600-700 engines globally, including those used by domestic carriers such as Vietnam Airlines and Vietjet Air.

As of March, 22 aircraft have been grounded for engine removal and inspection, with 42 more expected to follow by the end of the year. The repair process is anticipated to extend until late 2026 or early 2027.

Financial difficulties experienced by some airlines have led to debt restructuring and the return of leased aircraft. Pacific Airlines has already returned its entire fleet, while Bamboo Airways has downsized its fleet to five aircraft.

Additionally, many aircraft are scheduled for regular maintenance after the peak Lunar New Year travel season, further reducing the available fleet.

To address these challenges, the CAAV has implemented several measures, including increasing night flight operations and deploying wide-body aircraft.

The total market demand for seats during the upcoming summer peak season is estimated at around 24 million.

Sacombank chairman travel ban rumor rejected

The Ministry of Public Security (MPS) has rejected a social media rumor that Duong Cong Minh, board chairman of Sacombank, has been banned from traveling abroad.

Speaking at a news briefing on the afternoon of April 2, the spokesperson of the ministry, Major General To An Xo, denied the rumor on a travel ban on Duong Cong Minh.

The rumor began swirling on social media yesterday evening when a social media post said Minh is on the police’s travel ban list due to his alleged involvement in money laundering for Truong My Lan, chairwoman of Van Thinh Phat Holdings Group Corporation, who is standing trial in HCMC.

“The Ministry of Public Security refutes false information meant to harm and negatively affect the regular operations of the financial and banking system. Any dissemination of misinformation will be strictly handled in accordance with the current law,” Xo said.

Sacombank also denied false information about its leadership, saying that it is taking necessary measures to prevent the dissemination of fake news meant to tarnish the reputation of its leadership.

“Chairman of the Board of Directors Duong Cong Minh is directly in charge of the operations at Sacombank,” Sacombank said in a statement, adding that business is as usual at the HCMC-based bank.

The rumor on the travel ban on Minh led to Sacombank’s STB shares to drop by nearly 4% on the stock market on April 2.

Vietnam mulls importing 8,000 MW of electricity from Laos by 2030

Vietnam is planning to import up to 8,000 MW of electricity from Laos by 2030 to ensure stable power supply in the coming years, according to a newly revealed action scheme of the National Power Development Plan for the 2021-2030 period, with a vision to 2050.

Signed by Deputy Prime Minister Tran Hong Ha on April 1, the scheme lays out a foundation for businesses and investors to implement projects included in the approved National Power Development Plan VIII.

According to the scheme, to facilitate electricity imports from the neighboring country, the development of power transmission lines will be prioritized.

Vietnam has been importing electricity from Laos since 2016 under a cooperation agreement between the two governments.

Given the demand for electricity from Laos could rise during dry seasons, particularly in the northern region, the scheme emphasized the importance of electricity imports from Laos in securing stable electricity supply for northern Vietnam in the years to come.

The Ministry of Industry and Trade proposed importing wind power from Laos to further supplement domestic power supply.

Although the National Power Development Plan VIII was approved by the prime minister in May 2023, the action scheme for its implementation has faced delays.

Vietnam’s shrimp and tuna exports surge in Q1

The first quarter of this year saw Vietnam gaining a 22.2% increase in tuna export and a 15% rise in shrimp export, compared to the same period of the preceding year.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the country’s total seafood export revenue in the first three months reached around US$2 billion, an 8% year-on-year pickup.

In March alone, seafood exports totaled US$770 million, a 1% increase against last year.

Shrimp exports in March contributed significantly to this growth, generating nearly US$276 million and propelling the total export revenue for the January-March period to over US$690 million, a 15% year-on-year increase.

Notably, tuna exports surged by 24.5% to US$89 million in March. This robust performance boosted the total tuna export turnover in the first quarter to over US$220 million, up by 22.2% over the year-ago period.

The U.S., Japan, and China emerged as Vietnam’s top three seafood importers, with the U.S.’s seafood imports from Vietnam rising 16% to US$330 million. Meanwhile, exports to Japan remained steady, and exports to China grew by 15% over the previous year.

9999 gold rings approach VND72 million per tael as global gold hits new peak

On April 3, the global gold market made a new record high, driving domestic gold prices to surge heavily. While SJC gold moderately increased, 9999 gold rings skyrocketed.

Around 8:30 a.m. on April 3, in Ho Chi Minh City, Mi Hong Gold Store in Binh Thanh District quoted SJC gold at VND80.1 million per tael for buying and VND81.3 million per tael for selling, up VND200,000 in the buying rate and VND300,000 in the selling rate compared to the previous day. Simultaneously, in Hanoi, SJC Company also raised its prices by VND200,000 for both buying and selling rates, reaching VND79.5 million per tael for buying and VND81.52 million per tael for selling.

The price of 9999 gold rings surged strongly this morning as well. SJC Company bought gold at VND70.2 million per tael and sold it at VND71.85 million per tael, marking an increase of VND450,000 for buying and VND550,000 for selling compared to yesterday. PNJ Company also increased its prices, with a rise of VND650,000 in the buying rate and VND550,000 in the selling rate, reaching VND70.25 million per tael for buying and VND71.45 million per tael for selling.

In the global gold market, spot gold prices on the Kitco exchange this morning (Vietnam time) were trading at US$2,281.1 an ounce, an increase of about $30 an ounce compared to yesterday, the highest peak ever recorded. After conversion, this price level is equivalent to VND68.85 million per tael. Currently, the world gold price is approximately VND12.7 million per tael lower than SJC gold and about VND3 million per tael lower than 9999 gold rings.

The world gold price skyrocketed, continuing to conquer historical highs due to escalating geopolitical tensions in the Middle East. Experts predict that gold could potentially escalate even further and set new records if tensions spread further across the Middle East.

Subsidized goods supply for 2024-2025 increases

Market stabilization program for the period of 2024 and the Lunar New Year 2025 has experienced a growth both in the number of participating enterprises and the quantity of subsidized goods.

On the afternoon of April 2, the HCMC Department of Industry and Trade reported that there are 69 wholesale enterprises, an increase of 10 enterprises compared to the last year, participate in the market stabilization program for the period of 2024 and the Lunar New Year 2025.

The volume of subsidized market goods also increased by 4 – 6 percent compared to the same period last year, accounting for 21 – 32 percent of market share in normal months and about 24 – 41 percent of market demand during the Tet holiday month. Currently, the quantity of subsidized goods is sufficient to lead and regulate the market.

The program aims to ensure the supply and demand of goods and stabilize prices for essential items, being ready to respond to urgent situations such as natural disasters and epidemics. This will be implemented from April 1, 2024, to March 31, 2025.

Firms wish to invest in salt and seafood production

At a meeting with authorities of the Mekong Delta Province of Bac Lieu, domestic and foreign companies wished to invest in salt and seafood production.

The People's Committee of Bac Lieu Province yesterday convened a meeting with Hoang Phat Group Investment Joint Stock Company, Arri Viet Food Company Limited, and Grand International Investment Private Joint Stock Company (Singapore).

Representatives from companies expressed their desire to invest in salt production and intensive processing of salt as well as sustainable aquaculture in coastal areas of Bac Lieu Province.

Talking at the meeting, Chairman Pham Van Thieu of Bac Lieu Provincial People's Committee emphasized that authorities will support and create conditions for businesses' development of production and trading of salt and seafood products in the province as this will help the province to grow the marine economy with the focus on improving the value of salt grains; thereby, helping salt farmers in the province increase their income as well as help the province protect and maintain the long-standing salt industry.

Bac Lieu Province currently has more than 1,400 hectares of salt production area. Salt farmers produce about 27,400 tons annually. Recently, salt prices in Bac Lieu Province have been unstable, so salt farmers have encountered many difficulties.

Vietnamese government issues lists of key energy projects

The list of important national programs, works, and projects in the energy sector has been approved by Deputy Prime Minister Tran Hong Ha.

Deputy Prime Minister Tran Hong Ha yesterday signed Decision 270/QD-TTg approving the list of important national programs, works, and projects in the energy sector under the direction of the Steering Committee of important national programs, projects, and key energy sector projects.

Among important national programs, 12 power source projects include Quang Trach I Thermal Power Plant; Quang Trach II LNG Thermal Power Plant; Expanded Hoa Binh Hydropower Plant; Ialy hydroelectric power expansion; Tri An hydropower plant expansion; Bac Ai pumped storage hydropower plant; Long Phu I Thermal Power Plant; Nhon Trach III and Nhon Trach IV Thermal Power Plants; Hiep Phuoc LNG Thermal Power Plant phase 1; Long An 1 LNG Thermal Power Plant; Long An 2 LNG Thermal Power Plant; Phuoc Hoa Pumped Storage Hydropower Plant.

In the list, there are some 28 power grid projects. Power grid projects include projects to strengthen the North-Central power grid connection, enhance transmission capacity and supply electricity to large load areas (15 projects); synchronous power grid projects and capacity release of power source projects (6 projects); Power grid projects to relieve capacity of northern hydroelectric plants and increase electricity purchases from China (4 projects); Power grid projects serving electricity purchases from Laos (3 projects).

In addition, a gas - electricity project chains comprise block B gas - electricity project chain; Ca Voi Xanh gas - electricity project chain; LNG Son My gas-electricity project chain. LNG warehouse and power plant projects using LNG as fuel such as Quang Ninh, Thai Binh, Nghi Son, Hai Lang Phase 1, Ca Na, and Bac Lieu.

Furthermore, there are two petrochemical refinery projects namely a project to upgrade and expand Dung Quat Oil Refinery and the Southern Petrochemical Complex Project (Long Son).

The list also includes the National Program on Economical and Efficient Energy Use for the period 2019-2030, the power supply program for rural, mountainous and island areas from 2021 to 2025; and the pilot project to develop offshore wind power.

However, this list can be amended and supplemented to suit actual requirements.

Upgrade of railway infrastructure for goods exports

In addition to road, sea and air, the railway industry is gradually making an important contribution to the transportation of goods for export, reducing logistics costs and improving the competitiveness of the economy.

The Song Than Station in the Southern Province of Binh Duong’s Di An City - a technical station with 13 loading and unloading tracks and 7 cargo yards - is an important transport hub of Binh Duong Province, Ho Chi Minh City and the Southern region. Since September last year, the Railway Transport and Trading Joint Stock Company (Satraco) opened an intermodal freight route, from Song Than station to Dong Dang station in the Northern Province of Lang Son and then to China.

Satraco rents warehouses, ship chartering and receives goods for businesses in need, or proactively finds goods and stores them in cold storage. After the opening event, businesses are more interested in this type of transportation because it saves 20 percent to 25 percent of freight compared to road transport.

Deputy General Director Nguyen Hoang Thanh of Satraco said that the demand for transporting goods to serve the industrial parks of Binh Duong, Dong Nai and Ho Chi Minh City is very high. Previously, because international transport could not be implemented, import and export goods through Song Than station only accounted for 10 percent-15 percent of the total output transported through the station.

Currently, the amount of goods has increased. Every day, Satraco averagely hires 1-2 transportation trips with more than 500 tons of goods per trip, while the company didn’t receive any orders some times before. However, although transportation demand has increased, the competitiveness of the railway industry is quite weak because of outdated infrastructure, small warehouses, and transportation time from Song Than station to Dong Dang station takes 3 days and nights.

According to Head of Song Than Station Do Van Tuan, at many times of the year, especially during the agricultural harvest season, when export goods increase, overloading was seen at the station.

To address the goods overload at the station, the authorities have just coordinated to hand over nearly 6,500 square meters of land in the station area to install two more railways, redo all loading and unloading yards, and expand warehouses with a total capital of more than VND100 billion (US$3,989,931). When the additional railway project is completed, it will contribute to the improvement of the current operating capacity to 21 trains a day with freight transport capacity from the current 1.6 million tons a year to 2.5 million tons a year.

In the Northern region, the demand for trade, import and export of goods between Vietnam and China through border gates in Lang Son and Lao Cai is currently huge, but capacity still does not meet the needs of businesses. The Dong Dang International Railway Station in the Northern Province of Lang Son with an area of about 56,000 square meters can connect to China's railway system; therefore, it is considered a potential intermodal border gate.

Nevertheless, its operational efficiency has not good as expected for many years. In 2023, the total value of Vietnam's import and export goods through Lang Son Province was more than $4.78 billion but the import-export turnover through Dong Dang station only reached $136 million.

Head of Dong Dang International Intermodal Station Pham Duc Khai admitted that businesses are not interested in transporting goods through the station because the station's infrastructure system has degraded and cannot meet the needs of trade, loading and unloading capacity, and lack of connecting roads. Meanwhile, Lao Cai province has up to three railway lines, including a national railway line and two specialized routes. Vietnam's export goods are mainly agricultural products, fruits, ores of all kinds and goods from China are also in transit to other countries.

However, a representative of Lao Cai Province said that trade activities are not as expected because there is no international-class logistics center, and infrastructure is still fragmented; plus, many logistics businesses are operating but most of them are small. To increase capacity freight forwarding by rail in Lang Son and Lao Cai provinces, Vietnam Railway Corporation has recently worked with local leaders.

Chairman Dang Sy Manh of the Board of Members of Vietnam Railway Corporation requested Lao Cai Province to issue policies to support import-export businesses via the railway; and build an area for inspection, control, quarantine and customs clearance of agricultural - forestry - aquatic products transported by rail. Chairman of Lao Cai Provincial People's Committee Trinh Xuan Truong also requested the Ministry of Transport to build a standard gauge railway Lao Cai - Hanoi - Hai Phong and complete the plan to connect the double gauge railway between Lao Cai station and Hekou Bei station in China’s Yunnan Province.

Similarly, Vice Chairman Doan Thanh Son of the People's Committee of Lang Son Province said that he had requested Cao Loc District and related agencies to urgently clear the site for the project to renovate and upgrade items in the Dong Dang station area. Lang Son province leaders also proposed that Vietnam Railways Corporation soon renovate the Hanoi - Dong Dang railway line into a high-speed railway line, upgrade infrastructure in the Dong Dang station and especially the refrigerated container railcar systems for transporting agricultural products and fresh fruits.

HCMC boldly piloting innovation mechanisms to gain impressive achievements

The HCMC Party Committee has signed a collaboration agreement with the Party Committee of the Science & Technology Ministry on piloting a number of mechanisms for scientific-technological activities in HCMC in the 2024-2028 period.

Minister of Science and Technology Huynh Thanh Dat affirmed that his ministry is going to actively advise the Government to provide more favorable conditions for innovative and scientific activities according to practical proposals of HCMC, along with giving authority to the city as long as it meets the requirements. These will greatly inspire the scientific force in the city on their way to pursue their dreams of creating more practical products for society.

The collaboration program has 9 parts, including adopting policies to attract talented human resources via salary incentives and fringe benefits for leaders of state-owned scientific organizations; offering preferential remuneration for performing scientific – technological tasks; and supporting people to improve their capacity to carry out scientific – technological activities in HCMC.

The program is also a chance for HCMC to pilot a number of specific mechanisms on non-refundable financial aids taken from the regular city budget for incubating innovative startup projects in priority fields (e-commerce, fintech, logistics, edtech, healthcare, hi-tech agriculture, sustainable development, digital transformation, cyber security); as well as piloting the corporation income tax exemption policy for 5 years from the date a scientific-technological, innovative activity earns an income or for scientific organizations and innovative centers.

Director Nguyen Viet Dung of the HCMC Department of Science and Technology informed that his organization has worked with the Science and Technology Ministry to materialize the important content above.

The department expressed the wish to participate in the Advisory Council for the implementation of Resolution No.19/2023/NQ-HDND by the HCMC People’s Council about developing criteria, eligible subjects, and conditions for salary incentives, fringe benefits, and other preferential policies for leaders of state-owned scientific organizations; and about preferential remuneration for performing scientific – technological tasks.

It also wants to join in the Advisory Councils for the project to develop suitable mechanisms to boost the establishment of a research center of international standards; for the implementation of Resolution No.20-2023-NQ-HDND by the HCMC People’s Council about specifying priority fields, criteria and conditions, support rates for innovative startup projects in HCMC.

Finally, it would like to take part in the Scientific-technology Advisory Council and to aid the HCMC People’s Committee in piloting a policy to create the driving force for commercializing results of research activities and intellectual properties from the state budget.

The HCMC Science and Technology Department proposed to cooperate with its upper level for the general growth of HCMC, such as monitoring and evaluating the effectiveness of the project ‘Piloting a financial mechanism to improve the scientific-technological capacity of HCMC’, the project ‘Forming an organizational and operational model for the HCMC Center for Innovative Startup according to international practices’.

Deputy Minister of Science and Technology Le Xuan Dinh commented that HCMC is the leading center for innovative in Vietnam as to economic development, industrial activities, tourism and services, innovation and science-technology.

“More than ever, now is the suitable time for the Ministry of Science and Technology to work with HCMC to pilot specific mechanisms and policies in managing scientific-technological, innovative activities to accelerate the socio-economic growth of this city and the Southern key economic zone in general”, said Deputy Minister Dinh.

HCMC is piloting specific mechanisms for selecting scientific-technological programs and projects as well as financial mechanisms for these programs in the three priority fields of

Artificial Intelligence, Internet of Things, Big Data and Big Data Analysis, Blockchain, design and manufacturing of integrated circuits and flexible circuits, robotics, automation, and advanced 3D printing.
Biotechnology, cross-breeding technology in agriculture, cutting-edge technologies in processing and preserving agricultural products, stem cell technology, advanced microbiology technology, pharmaceutical technology, manufacturing of antibacterial and antiviral equipment in healthcare, biomedical materials, prosthetics, hi-tech medical equipment.
Nanomaterial technology, materials for manufacturing microelectromechanical components and smart sensors, semiconductor materials, optoelectronics and photonics, advanced 3D printing materials, biomedical materials.

Hanoi to invest US$257 million in building Dong Anh Industrial Park

The Hanoi People's Committee announced on April 1 the development of the Dong Anh Industrial Park at a cost of VND6.34 trillion (US$257 million).

The 50-year project, approved by Deputy Prime Minister Le Minh Khai, will cover an area of 300 hectares in the communes of Nguyen Khe, Xuan Non, Thuy Lam and Lien Ha and the Dong Anh township.

Approximately $51.4 million of the investment will be contributed by the lead developer, Vietnam Construction and Import-Export Joint Stock Corporation (Vinaconex).

Tran Dinh Tuan, deputy general director of Vinaconex, said that Dong Anh Industrial Park has the advantage of being well-connected and aims to become a logistics center for Hanoi.

"Construction will take place in two phases, with the first covering 179.1 hectares and the second 120.35 hectares. Vinaconex is committed to focusing its resources and ensuring that the Dong Anh Industrial Park project is completed on time and with high quality," Tuan said.

Speaking at the conference, Deputy Chairman of the Hanoi People's Committee Nguyen Manh Quyen said that there are 10 industrial parks in the capital with a total area of more than 1,300 hectares, nine of which are in operation with a 100% occupancy rate.

He stressed that the city government will supervise land clearance and compensation, as well as land use change and land lease, to ensure that they comply with official procedures, the provisions of the Land Law and other related regulations.

"The Hanoi government has prepared and approved subdivision plans for Dong Anh Industrial Park in accordance with the law, and is considering allocating industrial land in the park for sublease to small and medium-sized enterprises," the official added.

He noted that the People's Committee will also instruct the Hanoi Industrial and Export Processing Zone Authority and relevant agencies to monitor and evaluate project implementation, including investors' capital contributions.

Hanoi hosts dialogue to address business difficulties

A dialogue to find a way out for businesses struggling to operate in Hanoi's industrial zones is scheduled for April 5 in Hanoi.

The event is expected to provide information on solutions to accelerate the progress of industrial zone development projects in Hanoi in the coming period.

It will also find a way out of the difficulties faced by companies investing and operating in industrial zones, to speed up investment according to the established plans and objectives, and contribute to boosting production and business in the city in 2024.

The program is projected to attract 150-200 delegates from ministries and sectors, leaders of Hanoi, districts, towns with industrial zones, and representatives of associations.

The program will consist of a session to report on the activities and progress of investment and technical infrastructure construction in industrial zones in Hanoi in 2023, the direction and tasks for 2024, and another to discuss the solution of difficulties for investment in industrial zones and enterprises in the city.

Recently, the city has been particularly interested in attracting investment and is committed to creating a favorable investment and business environment.

Hanoi has organized a series of investment promotion events, both at home and abroad. It regularly engages in dialogue with investors to find common ground for attracting projects to the area.

In addition, the city has issued sound policies on building e-government, intensifying the use of information technology, and reviewing and simplifying administrative procedures.

Hanoi currently has nine operational industrial zones covering an area of 1,670.6 hectares.

Three industrial zones are under construction, including Quang Minh II (160 hectares), Hanoi Biotechnology High-Tech Zone (200.6 hectares) and Soc Son Clean Industrial Zone (302.8 hectares).

Hanoi plans to allocate 1,200 hectares of land for the development of five new industrial parks to be completed between 2021 and 2025.

Hanoi, HCMC should be places for coffee lovers: experts

Vietnam should turn Hanoi and Ho Chi Minh City into world-renowned 'coffee cities', a conference has recommended, as the country seeks to generate $5 billion from coffee exports.

Alexander Lukas Gruber, Director of Master Roasters Sagion Service JSC, which owns the Alambé Finest VietNamese Coffee brand, believes that the main solution to developing coffee exports is to invest in building a brand, creating unique quality and classifying coffee into different grades such as good, premium and standard.  

Exporting value-added coffee is essential, he said, adding that positive developments are taking place in Vietnam's soluble coffee industry.

Nguyen Duc Hung, director of Napoli Coffee Export Import Trading Production JSC, agreed, adding that despite the large number of coffee companies, Vietnamese coffee brands have a limited presence in the global market. On average, each province in Vietnam has 100 coffee shops, with Ho Chi Minh City having around 2,000, making a total of around 10,000 coffee shops nationwide.

"I have travelled to about 100 countries around the world and found very few Vietnamese coffee brands. I have come across the Trung Nguyen coffee brand on the shelves of supermarkets in a few countries, but the coverage and the market for Vietnamese coffee brands is much more limited when compared to Thailand and Malaysia," he said.

To achieve $5 billion in sustainable coffee exports, Hung called on the government, agencies and banks to help companies invest in machinery, international sales solutions, marketing, product development and brand building.

Speaking as a coffee analyst, Nguyen Quang Binh said that with the current market price of $4,000 per ton, Vietnam can fully meet its target of exporting $5 billion this year. The most important thing is the sustainable development of this industry, he said.

According to him, the selling price of green coffee beans is already historically high at $4,000 per ton. However, high-quality Vietnamese coffee products can reach prices of $6,000-$7,000 per ton, and specialty coffees can go as high as $8,000 per ton.

"It is necessary to support enterprises to enhance producing and processing specialty coffee to increase the value of coffee beans," he stressed.

Binh also urged state management agencies to provide financial support and loans to coffee trading companies.

According to Do Ha Nam, vice chairman of the Vietnam Coffee-Cocoa Association, coffee prices in the Vietnamese market have doubled in the first few months of 2024, making it difficult for many companies to buy coffee for export.

The export value of Vietnam's coffee in the 2022 - 2023 harvest season and early 2024 is experiencing remarkable growth, due in part to record high selling prices, which have reached VND100,000 ($4) per kg in recent days, he added.

Speaking at a conference on the subject last week, Le Thanh Tung, Deputy Head of the Department of Plant Cultivation under the Ministry of Agriculture and Rural Development, said Vietnamese coffee products  have made their way into many distribution systems around the world.

However, a systematic strategy to develop high-quality coffee is needed to increase competitiveness in the international market, he added.

Vietnam has nine million hectares of agricultural land, of which four million hectares are devoted to coffee and crops other than rice. The country has about 660,000 hectares of coffee plantations.

Specialty coffee currently accounts for only 2% of the total coffee area, mainly in the southern province of Lam Dong. Organic coffee also only makes up 3% of the total coffee area.

"We need to find out how producers and exporters can balance personal and national interests to promote coffee beans," he said.

Cao Xuan Thu Van, chair of the Vietnam Federation of Coffee Growers, suggested that provinces with special and organic coffee areas should form co-ops to build national brands and raise funds to maintain the high quality of the coffee and promote the brand as a high-end product at a premium price.

She also expressed the Alliance's desire to work with various entities to organize a major forum on coffee, bringing together farmers, cooperatives, companies, experts and government agencies to discuss the sustainable development of coffee.

During the forum, cooperatives are expected to sign agreements with coffee processing companies for production, supply, and distribution of clean coffee, promoting environmentally friendly coffee production, she said.

Local industrial firms’ optimism surges to 18-month high for year ahead

Manufacturers were increasingly confident that production would increase over the year ahead, with optimism at the strongest level in a year and a half, according to a report from S&P Global.
 
Firms expect the launch of new products to boost output while also hoping that an improvement in market demand will help to support new order growth. Manufacturers also stepped up their recruitment efforts in March, raising employment for the second month running and at the fastest pace since October 2022.

Meanwhile, the business conditions in the manufacturing sector were broadly unchanged in March after recording marginal improvements in the first two months. The S&P Global Vietnam Manufacturing Purchasing Managers' Index (PMI) dipped below the 50.0 no-change mark in March, posting 49.9 after a reading of 50.4 in February.

The index therefore signaled an end to the two-month period of improving business conditions at the start of 2024 but pointed to broadly unchanged operating conditions overall. There were signs of demand weakness in March, leading to a drop in new orders despite discounts offered to help secure sales. New export orders were also down, and to the greatest extent since July 2023 amid competitive pressures and geopolitical issues.

With new orders down, firms also scaled back production at the end of the first quarter of the year, following growth in January and February. The drop in production was only marginal, however, and limited to intermediate goods firms as expansions were recorded at consumer and investment goods producers.

“Growth stalled in the Vietnamese manufacturing sector in March as subdued demand put the brakes on new orders and production. Demand weakness was also reflected in the PMI survey's price indices as input cost inflation slowed and an outright reduction in selling prices was recorded,” said Andrew Harker, economist director at S&P Global Market Intelligence.

"On a more positive note, firms are increasingly optimistic that the sector will move back into gear in the months ahead, and this confidence helped to drive accelerated job creation at the end of the first quarter," he noted.

Rising staffing levels, and a drop in new orders, helped firms to work through outstanding business for the second consecutive month. Moreover, the rate of depletion was the fastest in five months. Lower output requirements led firms to reduce their purchasing activity in March, the fifth month running in which this has been the case. In turn, stocks of inputs decreased solidly.

Stocks of finished goods also decreased, and to the greatest degree in 33 months. Lower production and the shipping of products to customers were behind the drop in postproduction inventories. In a number of cases, goods destined for export had been dispatched. Reduced demand for inputs contributed to a slowdown in the pace of input cost inflation, with the latest rise the softest since August last year and weaker than the series average.

Where input prices did rise, panelists linked this to higher raw material and oil prices. Manufacturers reduced their selling prices for the second time in the past three months. The marginal decline in March followed a slight increase in February and reflected a combination of competitive pressures, subdued demand, and softer cost inflation.

Finally, suppliers' delivery times were broadly unchanged at the end of the opening quarter of the year. International shipping delays and conflicts led to delays in receiving goods in some cases, but this was broadly canceled out by vendors having sufficient inventory holdings to meet orders.

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