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VIETNAM BUSINESS NEWS AUGUST 10

More than 100 Vietnamese and foreign firms are showcasing advanced wood processing technologies, machinery and raw materials at the 2022 Vietnam BIFA Wood exhibition which opened in southern Binh Duong province on August 8.
International wood fair opens in Binh Duong hinh anh 1

Vietnam, Denmark seek ways to intensify economic, trade ties

A delegation of major Danish companies will accompany Crown Prince Frederik in his upcoming visit to Vietnam to seek business and investment opportunities with Vietnamese agencies and partners, Deputy Director General of the Confederation of Danish Industry (DI) Thomas Bustrup has said.

At his meeting with Vietnamese Ambassador to Denmark Luong Thanh Nghi in Copenhagen on August 9, Bustrup affirmed that in the context that the two countries share many common interests and hold increasingly substantive and comprehensive relations, and many Danish businesses intend to expand their operations abroad, Vietnam has emerged as a potential destination.

He expressed his thanks for and appreciated the cooperation and support of the Vietnamese embassy in DI’s activities, and asked the embassy to assist with the organisation of Vietnam visits by Danish enterprises in the coming time.

For his part, Nghi spoke highly of the active role and efforts of the confederation in intensifying the two countries’ economic and investment ties.

The ambassador informed his host on the embassy's plan to organise a forum on September 5 in Copenhagen, on Vietnam - Denmark cooperation in digital and green transformation - the two priority fields that Vietnam is focusing on implementing, with the cooperation and support of many international partners, including Denmark.

He sought the DI's help in holding the forum, affirming that his embassy and domestic agencies will coordinate closely with Danish agencies and organisations, including DI, to successfully organise the trip to Vietnam by Danish businesses in company with Crown Prince Frederik in early November.

Discussing specific measures to enhance the effectiveness of cooperation between the two sides, Nghi affirmed that the Vietnamese embassy is ready to act as a bridge connecting DI, Danish businesses with the government and businesses of Vietnam for the benefits, prosperity and sustainable development of the two countries..

Vietnam mulls ways to boost inbound travel

Strict visa policies and a shortage of human resources and infrastructure in the tourism sector have stymied recovery of the travel industry, and the target of five million international arrivals this year could be out of reach, industry players have warned.

Domestic travel has seen a strong rebound whereas international tourism, with a target of five million arrivals this year, remains in a slump, said Vu The Binh, Chairman of the Vietnam Tourism Association.

Domestic visitor numbers topped 71.1 million in just the first seven months of this year against a full-year target of 60 million, he said.

In the same period there were only 733,000 international visitors, or 8% of pre-pandemic numbers, he told a two-day programme titled ‘Lien Ket Suc Manh Du Lich Vietnam Nam 2022’ (Power of Vietnam Tourism Linkages) that ended in Ho Chi Minh City on August 9.

Though international tourism resumed in mid-March, the burdensome visa application process has slowed down international travel, said Cao Thi Tuyet Lan, sales manager of Viettours Incentives & Events Company.

If concerns related to visa policies are not swiftly addressed, international visitor arrivals to Vietnam are unlikely to be any higher during the busy international year-end travel season, she warned.

Tourism services have developed strongly at popular destinations such as Phu Quoc, Da Nang, Nha Trang, and Ha Long but other localities have not invested adequately in tourism services and promotions, she said.

The shortage of human resources is another factor hindering the recovery, she said.

Vo Anh Tai, Deputy General Director of Saigontourist Group, said inbound tourism plays a vital role in the growth of the tourism sector, and so it is hard to say the tourism sector is on the recovery track since the number of international arrivals remains modest.

Phung Quang Thang, Director of Hanoitourist, said the spending by the 18 million international arrivals in 2019 surpassed that of the 85 million domestic tourists, highlighting the vital role of inbound travel.

Cao Tri Dung, Chairman of the Da Nang City Tourism Association, said to boost international travel, the tourism sector needs to engage with digital and social media platforms considering the vast number of people accessing them.

Phan Thi Thang, Vice Chairwoman of the HCM City People’s Committee, said the tourism industry is a driving force for economic development, generates lots of new jobs and is an integral part of socio-economic growth.

She said the city’s domestic travel has seen a robust rebound but not foreign arrivals.

To recover and achieve growth, the tourism sector needs to have more offerings, promotion and marketing programmes to attract international tourists, Thang said.

Minister of Culture, Sports and Tourism Nguyen Van Hung said tourists from some of Vietnam’s major markets such as Russia, Japan and the Republic of Korea have not returned.

His ministry has proposed to the Government a range of policies for recovery, he said.

The Government has worked with related ministries to address visa policy-related concerns and they would soon be mitigated, he assured.

It has also stepped up international marketing and promotion activities to speed up recovery and growth of the tourism sector, he added.

International wood fair opens in Binh Duong

More than 100 Vietnamese and foreign firms are showcasing advanced wood processing technologies, machinery and raw materials at the 2022 Vietnam BIFA Wood exhibition which opened in southern Binh Duong province on August 8.

Organised by the Binh Duong Furniture Association (BIFA), the four-day trade show is expected to attract 6,000 visitors.

Attending are machinery manufacturers from Italy, Germany, Denmark, the Republic of Korea, Japan and China, and timber suppliers from the US, Canada, Europe, Australia, and New Zealand.

The biennial trade show is expected to unlock possibilities for local and foreign companies looking to tap into Vietnam’s potential.

With its plentiful labour and entrepreneurs and excellent connectivity with key timber areas in the southeastern and Central Highlands regions, Binh Duong has a favourable business environment.

The province, which has attracted many wood processing enterprises, has an annual economic growth rate of 12.6%.

Binh Duong enjoys trade surplus of 6.6 billion USD in seven months

The southern province of Binh Duong posted a trade surplus of 6.6 billion USD in the first seven months of this year, the provincial People’s Committee reported at a meeting on August 9.

Between January and July, the locality’s export value reached 21.8 billion USD, a rise of 7.1% year-on-year. Meanwhile, its import revenue was nearly 15.2 billion USD, down 5.7 percent year-on-year.

According to Chairman of the provincial People’s Committee Vo Van Minh, Binh Duong’s index of industrial production in July also rose about 4.7% month-on-month and 22.3% year-on-year.

In the seven months, the index grew 8.4% as compared with the same period last year.

Minh asked departments and agencies to keep a close watch on the market in the remaining months of this year to ensure the supply-demand balance, and hold working sessions with relevant associations to deal with obstacles to businesses.

Long way to go for Vietnamese durians

Vietnamese durians have made a name for themselves as a great-tasting fruit for overseas consumers but still have a long way to go the maintain their position on the international scene, according to insiders.

Dang Phuc Nguyen, General Secretary of the Vietnam Fruits and Vegetables Association, revealed that China, the largest importer of fresh Vietnamese durians, has allowed the fruits to be imported via official channels from July 12.

However, these opportunities come with obstacles as the Chinese General Administration of Customs (CGAC) requires that Vietnamese exporting firms and growing areas register with the Vietnamese Ministry of Agriculture and Rural Development (MARD), and the registrations must be sent to CGAC for approval before the fruit can enter the country.

Ta Duc Minh, Trade Counselor of the Vietnam Trade Office in Japan, underscored Japan as a market with high standards and stringent fruit regulations.

As Vietnamese durian easily entered the country between 2017 and 2020, some Vietnamese exporters took the market for granted and became less strict on quality control.

In 2021, after several batches with excessive pesticide residues were detected, Japan increased the frequency of inspection of Vietnamese durian, making it more difficult for the fruit to reach Japanese consumers.

Nguyen Phu Hoa, Deputy Consul General in Sydney (Australia), underscored Australia as a high-end durian market. Accordingly, for Vietnamese firms, it would make more sense to compete on quality rather than price. 

Ngo Tuong Vy, General Director of the Chanh Thu Import-Export JSC., asserted that it is tough to gain entry into foreign markets and tougher to cause changes to consumer eating habits in favour of Vietnamese durians.

Luu Huy, Director of the Viet Thai Agricultural Produce LTD, said China has become stricter about its imported fruit.

Cuu Long JOC oil production likely to hit 400 million barrels this year

Oil exploitation in Block 15.1 by Cuu Long Joint Operating Company (Cuu Long JOC) is likely to reach a new milestone of 400 million barrels in December, the firm has announced.

Cuu Long JOC - comprising PetroVietnam, ConocoPhillips, KNOC, SK Corporation, and Geopetrol - is the second-biggest oil producer in Vietnam that was established in 1998.

According to Cuu Long JOC Director Nguyen Van Que, as of 2011, the firm had paid 11.9 billion USD to the State budget, and posted a revenue of 27.3 billion USD.

In the first seven months of this year, the company installed underground pumps and successfully drilled two more wells. Therefore, the firm expects to pay 864 million USD to the State budget this year, he said.

Pangasius exports to EU market set to reach over US$200 million in 2022

Vietnamese Tra (pangasius) fish exports to the EU this year is anticipated to hit over US$200 million by mid-July, with exports of this item to the highly lucrative market likely to reach nearly US$122 million.

According to details given by the Vietnam Association of Seafood Exporters and Producers (VASEP), pangasius exports to the EU market will be close to US$122 million, up 91% over the same period from last year and exceeding the pangasius turnover recorded in this market in 2021 of US$106 million.

Most notably, all markets in the EU strongly increased imports of Vietnamese pangasius, with the lowest growth rate standing at 25% and the highest being nearly six times higher than the same period last year.

The top five markets in the bloc include the Netherlands, Germany, Spain, Belgium, and Italy with respective import increases of 72%, 107%, 75%, 92%, and 90%.

HCM City, Hanoi earn highest revenue from tourism

In the first seven months of 2022, localities across the country recorded a high increase in tourism revenue led by HCM City, Hà Nội, Thanh Hóa and Quảng Ninh.

HCM City received the highest number of tourists in the first seven months of the year, welcoming 13.3 million domestic visitors, up 71.73 per cent over the same period last year, together with around 765,600 international tourists. The total tourism revenue of HCM City is estimated at VNĐ60.38 trillion (about US$2.58 billion).

The city earning the second highest tourism revenue is Hà Nội, at VNĐ31.9 trillion ($1.36 billion), 3.9 times higher than the same period in 2021.

Welcoming over nine million visitors, the central province of Thanh Hóa ranks third, earning VNĐ16.394 billion from tourism, an increase of 3.6 times compared to the same period of last year and reaching 91.5 per cent of the whole year plan.

The northern province of Quảng Ninh received about 4.7 million visitors, equivalent to 104.4 per cent of the growth target of 2022. Tourism revenue of the province is estimated at VNĐ12.129 billion, up 131 per cent over the same period.

Other provinces with strong tourism revenue include Đà Nẵng, Nghệ An, Lào Cai, Khánh Hòa, Kiên Giang and Bình Thuận.

SeABank hikes charter capital to over $853 million

Southeast Asia Commercial Joint Stock Bank (SeABank) officially increased its chartered capital by VNĐ3.2 trillion to VNĐ19.8 trillion (US$853.4 million).

The capital hike, approved by the State Bank of Việt Nam late last month, was made through additional share issue and dividend payment from its equity in 2022. About 211.4 million shares, equivalent to 12.7 per cent of its charter capital, were issued to pay dividend and 109.7 million new shares, or 6.6 per cent of its charter capital, were issued to investors.

This move is part of the bank’s plans to improve its capital adequacy ratio, supplement working capital, implement digitalisation process in credit and payment activities, and diversify products and services, thereby improving the service quality and enhance customer experience.

Vietnam Manufacturing Expo gets underway in Hanoi

The Vietnam Manufacturing Expo (VME) 2022 kicked off on August 10 in Hanoi, drawing the participation of approximately 200 brands in the manufacturing and electronics industries from over 10 countries and territories globally. 
      
As part of his opening speech at the event, Vu Trong Tai, general director of RX Tradex, emphasised that the event features effective business networking programmes to help firms in the mechanical and supporting industries seize upon opportunities to further get involved in the global supply chain.

Most notably, this year’s function involved the presence of major customers from North America seeking to purchase mechanical products in the construction, oil and gas, and automobile industries, which is expected to open up a wealth of export opportunities for small and medium-sized enterprises moving forward, Tai added.

Truong Thi Chi Binh, vice president and general secretary of the Vietnam Association for Supporting Industries, pointed out that local firms operating in the manufacturing and supporting industry are very keen on issues relating to automation, lean factory, and supply chain participation.

She added that these enterprises are in the process of automating production lines in their factories and need to stay updated and gain knowledge of the effective models that have been applied so far.

There will be a number of trade exchanges and seminars introducing the advanced technologies from the world’s leading brands, a consulting support programme for businesses and a ceremony held to honour industrial firms and supporting industry enterprises.

Hanoi, Vientiane boost co-operation for mutual development

A trade promotion conference entitled "Hanoi - Vientiane Cooperation for mutual development” took place on August 10 in Hanoi, alongside a photo exhibition displaying and introducing products originating from both capitals. 
      
The purpose of the event is to respond to the Vietnam-Laos Friendship Year 2022 and further tighten the relationship between the two parties, countries, and peoples.

This is viewed as a prime opportunity for the authorities and businesses of the two localities to come together to exchange and share useful information about investment opportunities, preferential policies, and the investment attraction of both Hanoi and Vientiane.

It will also serve as a bridge for firms to meet and find potential partners in many areas which the two cities are strong in.

As part of his opening speech, Nguyen Manh Quyen, vice chairman of the Hanoi People's Committee, highlighted comprehensive development on all channels, with many effective projects in fields such as the economy, health, education, agriculture, military, and people-to-people exchanges between Vietnam and Laos. This is along with co-operation between the two capitals and between Hanoi and Lao localities in general.

Pangasius exports to EU market set to reach over US$200 million in 2022

Vietnamese Tra (pangasius) fish exports to the EU this year is anticipated to hit over US$200 million by mid-July, with exports of this item to the highly lucrative market likely to reach nearly US$122 million.   

According to details given by the Vietnam Association of Seafood Exporters and Producers (VASEP), pangasius exports to the EU market will be close to US$122 million, up 91% over the same period from last year and exceeding the pangasius turnover recorded in this market in 2021 of US$106 million.

Most notably, all markets in the EU strongly increased imports of Vietnamese pangasius, with the lowest growth rate standing at 25% and the highest being nearly six times higher than the same period last year.

The top five markets in the bloc include the Netherlands, Germany, Spain, Belgium, and Italy with respective import increases of 72%, 107%, 75%, 92%, and 90%.This year demand among these markets has exploded after two years of halted domestic production has not been able to meet demand.

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

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