Vietnam aims for a model of coastal eco-cities that are smart, climate-resilient, and sustainably developed, where urban planning for coastal areas will centre around people, said insiders.

According to planning and architecture experts, it is necessary to select and make a rational and balanced land allocation commensurate with economic objectives; and ensure a well-organised system of public spaces and seaside squares within urban areas of various sizes.

Assoc. Prof Do Tu Lan and Dr. Dao Ngoc Nhu from the Urban Development Agency under the Ministry of Construction (MOC), underlined the necessity for urban design in coastal areas, especially the spaces in front of the sea.

Architectural works near the coast should have designs that are suitable for climate conditions, they said.

Experts and managers should identify focal points for coastal urban areas, especially entrance spaces, areas near seaports, and central squares, which adhere to green and smart construction standards, they added.

With more than 3,200 km of coastline, about 3,000 islands of all sizes, hundreds of beautiful beaches, and pristine bays, Vietnam boasts great potential for marine economic development, Lan said.

Urban areas in general, and coastal urban areas in particular, are playing a significant role in the socioeconomic development of each locality, region, and the entire nation.

Efficient planning, management, and development of coastal urban areas are closely linked with environmental protection and adaptation to climate change. These are crucial issues that contribute to the sustainable development of the maritime economy, while simultaneously facilitating the transition towards industrialisation and modernisation in the economic structure, she noted.

Taking into account tourism development in coastal cities, Assoc. Prof. Pham Trung Luong, Vice President of the Vietnam Association for the Protection of Marine Resources and Environment and a member of the National Planning Advisory Group, emphasised the importance of promoting sustainable and smart marine tourism urban development, saying that this element creates convenience and attractiveness for tourists, aligning with the global and regional trends in developing tourism destinations.

It is necessary to improve the system for collecting and processing waste from tourism to minimise negative impacts on the environment in general, and the coastal environment in particular, he said.

The Politburo issued Resolution No.06-NQ/TW dated January 24, 2022 on planning, construction, management, and sustainable development of urban areas in Vietnam till 2030, with a vision toward 2045, affirming urbanisation is an objective necessity and a crucial driving force for rapid and sustainable socioeconomic development in the coming years.

According to the strategy for sustainable development of Vietnam's marine economy until 2030 with a vision to 2045, pure marine economic sectors will account for about 10% of the national GDP by 2030; and The economies of 28 coastal cities and provinces are estimated to mark up 65-70% of the GDP.

By 2045, Vietnam will become a strong maritime nation characterised by sustainable development, prosperity, security, and safety, and its marine economy will play a crucial role in the national economy.

These ambitious goals serve as significant directions, opening up opportunities and providing a driving force for coastal areas, including coastal cities.

Currently, there are over 40 coastal cities across the country, including HCM City, Da Nang, Nha Trang, Vung Tau, Rach Gia, Phu Quoc. The urban areas, including coastal ones, account for approximately 70% of the national GDP growth, and increasingly demonstrate their importance for the nation’s socioeconomic development. Economic growth in urban areas averages between 12% - 15%, 1.2 to 1.5 times higher than the national average growth rate.

Urban development serves as a motivation for economic growth, contributing to developing an independent, self-reliant, and integrated economy.

Industry-trade ministry issues directive on rice export, supply stabilisation

The Ministry of Industry and Trade (MIT) on August 15 issued a directive on developing rice export markets and stabilising the domestic market amidst unpredictable changes in the global rice market to implement the Prime Minister's instruction on promoting rice production and sustainable export, ensuring national food security.

Accordingly, the MIT asked the market management sector to closely monitor rice prices to ensure balance of export and domestic consumption, inspect supply sources and selling prices to prevent speculation and price manipulation, as well as prevent the transportation and trading of rice of unclear origin and strictly deal with any violations of regulations on rice trade and export under Decree 107/2018/ND-CP dated August 15, 2018.

The Department of Import-Export under the ministry is assigned to urgently finalise a decree adjusting and supplementing Decree 107/2018/ND-CP to submit to the Government within the third quarter.

The department must also coordinate with agencies in other ministries, the Vietnam Food Association (VFA), trade offices overseas to monitor the world rice market and the policies on rice export of rice producing countries for timely report to the MIT and relevant agencies and trade associations.

The MIT also directed the department to roll out the rice export market development strategy till 2030 which was approved by the Prime Minister in May, and collaborate with the Vietnam Trade Promotion Agency, Vietnam Trade Offices abroad and the VFA to launch trade promotion, popularise rice products and expand markets.

Rice exporters must seriously follow regulations on making periodic reports and maintain a minimum reserve level while working with the VFA to build plans for production and trade, join market stabilisation programme, contributing to ensuring national food security.

Vietnam shipped abroad 4.84 million tonnes of rice valued at 2.58 billion USD in the first seven months of this year, up 29.6% from the corresponding time last year.

The national rice output is expected to reach from 43.2-43.4 million tonnes this year, up 1.8-2% from 2022. With the current production situation, the country is likely to meet domestic consumption and export from 7-7.5 million tonnes.

Rice prices in Vietnam's Mekong Delta region in late July reached a 10-year high after India banned the export of non-basmati white rice.

Ample room remains for Vietnam-Israel to boost trade, investment cooperation

There remains ample space for Vietnam and Israel to enhance their economic and trade cooperation, towards building a business ecosystem for their business communities in the time ahead, heard a forum in Ho Chi Minh City on August 15.

The Vietnam-Israel business and trade forum was jointly held by the Vietnam Chamber of Commerce and Industry (VCCI)’s chapter in HCM City and the Embassy of Israel in Vietnam.

Addressing the event, Director of the VCCI’s HCM City chapter Tran Ngoc Liem noted that since the two countries established diplomatic ties 30 years ago, they have become leading important partners of each other in Southeast Asia and West Asia, respectively.

As of July 20, Israel ran 40 FDI projects worth more than 140 million USD in Vietnam, ranking 47th among the 148 countries and territories investing in the country.

Meanwhile, Vietnam invested in four projects valued at some 76 million USD in Israel, he added.

Israel is now Vietnam’s fifth biggest trade partner and third largest importer in the Middle East. It ranks 33rd among more than 200 countries and territories that have trade ties with the Southeast Asian nation.

The two economies are reciprocal, Liem stressed, adding that two-way trade reached 2.2 billion USD last year, up 17.9% from 2021, of which Vietnam’s export value hit 785.7 million USD.

Some Vietnamese goods such as mobile phones and components, agro-aquatic products, footwear, and garment-textiles have gained a firm foothold in the Israeli market, he went on.

Liem emphasised that Vietnam always creates optimal conditions for Israeli enterprises to invest in the country in industrial production, high-tech agriculture, materials, information technology, green and clean production, and industrial infrastructure development.

The two countries are working hard to raise their bilateral trade to 3 billion USD in the time ahead, he said.

Regarding the Vietnam-Israel Free Trade Agreement (VIFTA) signed on July 25, Liem stressed that Israel is the first country in West Asia with which Vietnam has reached an FTA. Vietnam is also the first Southeast Asian nation with which Israel has inked such deal.

The agreement is expected to facilitate Vietnam’s export to not only Israel but also other markets in the Middle East, North Africa and Southern Europe.

In return, Israel’s goods and technologies will find it easier to access markets in the Association of Southeast Asian Nations (ASEAN), Asia-Pacific and other major markets in the 16 FTAs in which Vietnam is a signatory.  

Israeli Minister of Economy and Industry Nir Barkat briefed the participants on Israel’s strengths and potential, and affirmed that the Israeli Government has adopted mechanisms and policies to encourage businesses to expand investment and cooperation abroad.

The VIFTA will offer opportunities for the two sides to boost their trade and investment ties, and form a business ecosystem, he said.

The minister pointed to limitations in transport connectivity and market information sharing, which have hindered the bilateral cooperation, and suggested the two countries soon launch direct flights between HCM City and Israel to foster the collaboration.

Vice Chairman of the HCM City People’s Committee Vo Van Hoan said the southern metropolis wants to enhance cooperation with and attract more Israeli enterprises in such areas as digital economy, science-technology, high-tech agriculture and renewable energy.

International Travel Expo Ho Chi Minh City 2023 to draw over 400 exhibitors

The 17th International Travel Expo Ho Chi Minh City 2023 (ITE HCMC 2023), themed “Connectivity, Growth, Sustainability”, will take place from September 7-9, heard a press conference held by the municipal Department of Tourism on August 15.

The annual event is expected to draw over 400 exhibitors, over 30% of them are foreign companies which will double from the figure recorded last year. About 150 international buyers are due to directly meet domestic and foreign tourism companies.

Director of the Ho Chi Minh City Tourism Promotion Centre Nguyen Cam Tu said visitors could also experience handicrafts, coffee and folk arts at the event.

Deputy Director of the municipal Department of Tourism Le Truong Hien Hoa said ITE HCMC 2023 is the only trade fair in Vietnam that provides an international buyer programme that pre-arranges face-to-face appointments with decision-makers and many additional networking opportunities to connect on a deeper level.

In particular, 2D virtual booths are designed to offer comprehensive information and equipped with standout features such as live chat, email communication, appointment scheduling, and networking opportunities, thus helping international buyers seek partners easily, he added.

Further interest rate cut proposed to support SMEs

The Ministry of Planning and Investment (MPI) has proposed the government provide further support for Vietnamese small- and medium-sized enterprises (SMEs), including an interest rate reduction of another 2 percentage points per year.

The rate cut is to facilitate SMEs’ integration into domestic and global value chains, according to the proposal, which is part of a draft decree on the organisation and activities of Vietnam’s Small and Medium-sized Enterprise Development Fund.

While pending the government's review, the proposal has been well noted and received by the business community, especially by Vietnamese SMEs. 

"It would be a tremendous help to us if we could borrow from the fund at further discounted rates, which would reduce our financial pressure and allow us to focus on production," said Vu Xuan Anh, CEO of a packaging company in the northern province of Hai Duong.

He added his company's core products, which are wrapping paper and plastic film, thanks to the development fund's financial support, could be priced about 15% lower than imported products while remaining competitive in quality. By his estimation, the company saved up to 700 million VND on interest rates alone last year. 

The development fund, according to MPI, has disbursed nearly 600 billion VND since 2016 to nearly 40 startup SMEs. It has played a vital role in supporting said SMEs to focus on the innovation of products, and participate in the country's supply and value chains. 

While the figure may seem modest for SMEs' demand for lower-cost financing there have been upticks in recent months. During the first six months of 2023 alone, the fund has granted 260 billion VND to eight SMEs, or 87% of its annual target. 

According to a representative from the fund's management board, there is a plan to further cut interest rates for SMEs in the future, which is in line with the Vietnamese Government's initiative to increase support for SMEs. 

"We normally based our interest rates on the lowest among Vietnam’s largest commercial banks. From there, we could further reduce rates by another 20%," said Pham Xuan Kien, chairman of the fund's council. 

For now, the fund's registered capital has reached 837 billion VND. However, depending on demand and business qualifications it could be increased to over 2 trillion VND in the future. 

Nguyen Dinh Cung, former director of the Central Institute for Economic Management (CIEM) said the fund should seek out potential contributors among investors and banks. 

In addition, it should prioritise establishing its own set of criteria and protocols to work directly with SMEs instead of lending through commercial banks as of now. 

Last year’s data showed that Vietnam was home to nearly 800,000 SMEs. Vietnamese SMEs accounted for 98% of all registered businesses, created 70% of all employment and generated about 50% of the country's GDP. 

Besides raw numbers, the country's SMEs often play an important role in innovation, regional development, export and economic diversification.

New visa policy hoped to help Binh Thuan lure more int’l tourist arrrivals

The new visa policy, which will officially take effect from August 15, is expected to offer a good chance for the tourism sector of the south-central coastal province of Binh Thuan in particular and Vietnam in general, to attract more international tourists.

After the COVID-19 pandemic is under control, attracting international tourists back to Binh Thuan still faces difficulties. In the first six months of this year, the number of international visitors to Binh Thuan increased sharply compared to the same period in 2022 with 133,000 arrivals, but dropped over 64% from the same period in 2019 before the pandemic broke out.

The business community in Binh Thuan hopes that changes in the new visa policy will  create an “impetus" to promote the local tourism industry’s development in the coming time, towards the segment of high-paying, long-stay tourists.

Hoang Manh Cuong, General Manager of Phu Hai Resort in Phan Thiet city, said that the extension of tourist e-visas from 30 to 90 days is a good news for tourism businesses across the nation.

Currently, tourists from European countries and Australia are tending to visit Asian countries, including Vietnam. Therefore, this is an opportunity for travel firms to exploit new markets, he said.

According to General Director of the Ben Thanh Mui Ne Resort JSC Nguyen Duc Tien, since early this year, the number of international visitors to Binh Thuan accounted for about 12-15% of the market share, lower than its expectation.

However, from the fourth quarter of 2023, the number of international visitors to Binh Thuan will increase thanks to the new visa policy.

Currently, a great number of international visitors, mainly from Western Europe, Germany, North Asia,  have booked at the resort for the period between October and December with the room occupancy rate of 25 to 30%, Tien said.

Nguyen Van Khoa, President of the Binh Thuan Tourism Association, said that the new visa policy will help the tourism industry open its doors to welcome visitors.

Travel and lodging service businesses in Binh Thuan have informed about the policy to their tourism partners in many key markets such as Europe, America, and Asia, Khoa said.

Binh Thuan  expects to serve about 400,000 - 500,000 foreign visitors in 2023, Khoa said.

To prepare for the upcoming peak season of international visitors, service and accommodation units in Binh Thuan have planned to review the preparation of facilities, improved the quality of human resources; and diversified tourism products to attract tourists.

According to Hoang Cong Dinh, Director of DIMA Tour, apart from traditional tours, the firm has built a number of new tours and routes to meet the demand of visitors.

Khoa underlined the importance of ensuring the quality of human resources serving tourism activities, saying that the association has coordinated with the centre for supporting small- and -medium-sized enterprises to organise training courses for personnel managers, thus recruiting and training qualified personnel that can meet the increasing demand of the tourism market in the future.

Statistics show that Binh Thuan served about 5.3 million visitors in the first seven months of this year, surging over 82% year-on-year, and equivalent to 79% of the yearly plan . The local tourism sector raked in nearly 13.5 trillion VND (over 568.1 million USD).

Green credit provision strengthened in agriculture

The Ministry of Agriculture and Rural Development (MARD) is planning to coordinate with the State Bank of Vietnam in completing policies on preferential credit to support agricultural projects following value chains, applying high technologies and specialising in clean agriculture and production forest planting.

Statistics from the central bank showed that as of the end of 2022, outstanding loans for green projects reached 21 billion USD, accounting for more than 4% of the total outstanding loans of the whole economy, and an increase of nearly 13% compared to the end of 2021.

In the 2017-2022 period, the credit balance of the banking system for Vietnam's green fields had an average growth rate of more than 23% per year. Of the 12 green areas, credit balance in clean agriculture accounted for 32%.

According to the Law on Environmental Protection, green credit is one granted to an investment project that effectively uses natural resources; responds to climate change; strengthens waste management; promotes pollution treatment, environmental quality improvement; restores natural ecosystems; specialises in conservation of nature and biodiversity; and generates other environmental benefits.

In September 2022, the MARD Minister issued a decision approving an action plan of the ministry in implementing the national strategy on green growth in the 2021-2030 period, aiming to promote agricultural development towards ecological, organic, circular, low carbon, and energy and natural resources efficient direction, heading to a carbon-neutral economy in 2050.

Over the years, many large-scale firms have invested in organic and circular agriculture in all areas of breeding, cultivation and aquaculture. Agriculture is one of the areas with the highest demand in green credit.

Along with support from State agencies, experts advised businesses to seek measures to effectively access green credit resources by clarifying their projects’ efficiency in environmental improvement as well as sustainable production solutions that are beneficial to the environment.

Circular economy a choice for sustainable development

Amidst worsening environmental pollution and natural resource exhaustion, the circular economy model emerges as a visionary solution for the society and economy.

In Vietnam, many new production and business models approaching a circular economy are being implemented rather successfully in the private sector, creating many opportunities for the economy, the Nhan dan (People) daily reported.

Eco-industrial parks in Ninh Binh province, Can Tho city, and Da Nang city are examples, helping save millions of US dollars each year.

The foreign direct investment (FDI) sector has proved to be a dynamic player in promoting the circular economy by devising plans to recycle waste and by-products through modern processes.

Among them, Nestlé is producing unbaked bricks from boiler waste, fertilisers from non-hazardous waste mud, and eco roof sheets from milk cartons. It also plans to recycle and reuse 100% of product packages by 2025. Meanwhile, nearly 99% of waste or by-products of Heineken Vietnam have been reused or recycled, and four of its six beer breweries are using heat energy generated from renewable energy and low-emission fuels. Unilever Vietnam is implementing a programme on collecting and recycling plastic packages and sorting waste at source.

In the textile - garment sector, some enterprises have recycled fabric scraps into new fabrics and used them as part of new clothes labelled “CE”, which enables products to be sold in Europe and the European Free Trade Association (EFTA).

However, some experts said production and business models of a circular economy haven’t become popular in Vietnam, since most of  the enterprises still focus on short-term targets while the circular economy creates long-term values.

They also pointed out the shortages of legal and infrastructure conditions, the low demand for circular and replaceable products, the lack of experts in this field, and the current GDP calculation methodology yet to give due attention to social and environmental factors.

Despite challenges, the circular economy generates a number of benefits for the economy. Each change starts from small actions, and it is necessary to pin hopes in this model and encourage the parties concerned to support and follow, said Director of the National Startup Support Centre Pham Dung Nam as cited by Nhan dan.

Developing a circular economy is even harder than promoting innovation because innovation focuses on the economic aspect while a circular economy balanced both business and environmental protection dimensions, according to the newspaper.

The Party and State have affirmed its viewpoint on developing a circular economy so as to achieve sustainable development.

On February 11, 2020, the Politburo issued a resolution on orientations for the national energy development strategy by 2030, with a vision to 2045. This document affirms the priority for renewable energy and waste-to-energy plants to protect the environment and develop the circular economy. The 2020 Law on Environmental Protection officially includes regulations on this economic model.

The plan on developing the circular economy in Vietnam, approved by the Prime Minister on June 7, 2022, identifies the circular economy development as inevitable matching the global trend and the requirement for making breakthroughs in economic recovery and realisation of the Sustainable Development Goals.

Pham Hong Quat, Direct of the National Agency for Technology Entrepreneurship and Commercialisation Development, said in the context of global economic integration, Vietnam has joined a number of new-generation free trade agreements with many countries and regions. Those deals include commitments on environmental safety, so adopting the circular economy model is an inevitable trend to achieve sustainable development.

Suggesting several measures, Dr Nguyen The Chinh, former Director of the Institute of Strategy and Policy on Natural Resources and Environment, noted the State should keep fine-tuning policies and laws, issue regulations and standards on circular economy development that are in line with regional and global trends, and use such tools as technical standards and taxes to minimise resource overexploitation and waste during the production process.

It also needs to convert to a growth model based on efficient use of natural resources, encourage enterprises to adopt practices of a circular economy, and issue strict rules on companies’ responsibility for their waste, he added.

Ways must be sought to help firms join global production, supply chains: insiders

Vietnamese exporters are facing new difficulties caused by tighter regulations and standards and fierce competition in international markets. Therefore, according to insiders, it is urgent to seek ways to help firms participate in the global production and supply chains.

At a workshop held by the Ministry of Industry and Trade on August 11, Radek Sorcik, Senior Director Purchase & QA Knits and Denim at Germany-based Takko Fashion, said that Takko is looking forward to expanding its business, and moving operation from China to Vietnam in order to find more Vietnamese suppliers.

The company has some potential and important product groups in its development strategy such as sportswear, outdoor clothing, T-shirt, and trousers. However, these products of Vietnam are facing fierce competition from Bangladesh and China.

Therefore, if Vietnam wants to boost the export of these products, domestic enterprises must focus on investing in factories and improving fabric quality and origin, Radek Sorcik said.

The market is increasingly demanding higher legal and environmental standards, so to be eligible to participate in Takko's supply chain, Vietnamese businesses need to focus on researching and building suitable business strategies, he added.

Tran Ngoc Quan, Vietnamese Trade Counsellor in Belgium and the European Union, stated that the European Commission (EC) has just proposed an extended producer responsibility (EPR) scheme for textiles.

Accordingly, textile manufacturers must ensure responsibility for the entire life cycle of their products, and support the sustainable management of textile waste throughout Europe.

The tight requirement will cause great pressure on Vietnamese exporters, as they are forced to prepare a circular production process, reduce waste from textiles, and use environmentally friendly and recycled materials, Quan stressed.

If these standards are met, Vietnamese products will gain a firm foothold in the European market, he added.

To support domestic firms to engage more deeply into the global production and supply chains, the 2023 Vietnam International Sourcing Expo will be organised in Ho Chi Minh City from September 13-15.

It is a reputable event that draws leading firms in various fields, including food, garment and textile, footwear, handbag, sportswear, home appliances, furniture, and supporting industries.

This year, the event expects to welcome 8,000 visitors and 200 delegations from 30 countries and territories. It has received greatest-ever interest from world leading companies.

Sustainable production key for Vietnamese pepper to further enter EU: insider

Following sustainable development will help Vietnamese pepper further enter the EU where more and more consumers ask for certificates that prove the products’s sustainability, an insider has said.

Chairwomen of Vietnam Pepper Association Hoang Thi Lien said that under the EU-Vietnam Free Trade Agreement (EVFTA), taxes for pepper and spices will fall to 0%, bringing about oppotunities for Vietnam to export pepper to the bloc.

Imports to the EU are usually deep-processed and high value-added.

Meanwhile, in the first six months of this year, Vietnam exported over 4,300 tonnes of pepper to the EU while the country’s total pepper exports reached 153,000 tonnes worth 486 million USD.

To take advantage of the EVFTA and further penetrate the EU market, Vietnamese pepper firms should apply sustainable development and better meet the requirements of the EU market, according to experts.

The EU also continuously warns about pesticide residues and increases the frequency of inspection over the maximum residue levels (MRLs) for food in general and Vietnamese spices in particular.

According to the Vietnam Pepper Association, the EU has issued over 500 criteria on MRLs and tends to have more requirements which are stricter and stricter.

So, the association calls on parties in supply chains including farmers, enterprises, associations, and State management agencies to join hands in increasing Vietnamese pepper’s competitiveness in the world market.

Enterprises are suggested to improve processing facilities and production processes and diversify products.

They also need to update market information including those on tax tariffs, quarantine requirements, food safety, technical barrier, rules of origin, and green growth criteria.

Lien said that in the whole value chain, risk management must be taken into account while origin traceability and product labeling must ensure transparency and accountability.

China remains largest export market for Vietnamese cassava

Despite the export of cassava and cassava products in July continuing to endure a decline compared to the same period from last year, China remained the largest export market of Vietnamese cassava, according to details given by the General Department of Customs.      

The Import-Export Department under the Ministry of Industry and Trade quoted statistics from the General Department of Customs which state that in July the nation exported 145.23 thousand tonnes of cassava and cassava products. The value of these items was worth US$71.88 million, up 2.8% in volume and 9.8% in value compared to a month earlier.

However, compared to July, 2022, it marked a drop of 24.2% in volume and 17.2% in value. This represents the fifth consecutive month of decline compared to last year’s corresponding period.

Accumulated in the first seven months of the year, the export of cassava and cassava products reached 1.64 million tonnes, valued at US$665.57 million, down 14.4% in volume and 20.8% in value compared to same period from last year.

July witnessed China continue to be the largest export market of Vietnamese cassava and cassava products, duly accounting for 93.61% of the country's total cassava exports with 135.96 thousand tonnes, worth US$66.58 million, up 13.3% in volume and 20.2% in value compared to June.

However, compared to July, 2022, it endured a decline of 22.9% in volume and by 16.4% in value.

The opening seven months of the year saw Vietnam exports to the Chinese market reach 1.47 million tonnes of cassava and cassava products, worth US$589.27 million, down 15.9% in volume and 23.2% in value on-year.

In general, although the amount of cassava exports decreased during the seven-month period, the export of cassava and cassava products to this market continued to record decent growth in both volume and value compared to the same period from last year. It is worth noting that Malaysia, Taiwan (China), and Japan make up the major markets which witnessed positive growth.

However, these markets only account for a small proportion of the nation’s total export of cassava and cassava products.

Grain prices in China endured a fall and due to low consumption season, demand for cassava and tapioca starch in China also witnessed a downward trend over recent months.

Moving forward, it is forecast that Chinese demand for cassava and tapioca starch will increase again once the country enters the mooncake production season.

Elsewhere, Cambodia is in the process of accelerating the progress of cassava harvesting at the beginning of the season to sell to the country due to high prices, which may cause a sharp drop in the production of cassava harvested in the middle and late stages of the season.

Tourism market heating up ahead of four-day national holiday

Vietnamese people will enjoy four days off work during the upcoming national holiday period which is set to start on September 1, offering families and groups of friends the chance to go on a last tour before the start of the new school year.

The tourism industry is expected to make a big profit when Vietnamese people will have a four-day holiday, starting on September 1. 
A lot of people have been searching for information about inbound and outbound tours to draw up a schedule for the upcoming holiday since the middle of August.

Ngan Giang, a resident of Hanoi, says she has looked for a deserted destination to enjoy a short trip with her family for days, although she has yet to find a favourite venue as most of the tourist attractions close to Hanoi have fully been booked.

“There have no rooms for rent at resorts in Hanoi’s outlying districts, as well as in neighbouring localities such as Vinh Phuc, Hai Phong and Hoa Binh,” says Giang.

“Some homestays and villas have rooms available, but they are either in remote areas or much expensive. We have not come to a decision yet,” she adds.

Nguyen Van Hieu, general director of Vitamin Tours, predicts that the number of travelers for this year’s National Day holiday will increase considerably compared to last year as a result of the favourable weather conditions and an extended holiday.

“Most tourists choose a 4 to 5-day tour in the country or abroad. The two-day and one night tours near Hanoi and Ho Chi Minh City are also much sought after by many tourists,” says Hieu.

However, there has yet to be a sharp rise recorded in the number of tour and room bookings in several major tourist cities, including Quang Ninh, Nha Trang, Da Nang, and Vung Tau, as Vietnamese people normally tend to make their bookings close to the departure date.

“The number of passengers booking domestic flights or international tours has only reached 20-30% of the plan, but it will definitely increase sharply when the holiday is drawing near," confides Hieu.

According to the travel expert, hordes of domestic tourists are due to flock to coastal tourist destinations in Hai Phong, Quang Ninh, Da Nang, Nha Trang, and Phan Thiet. Meanwhile, mountainous localities that enjoy a cool climate like Sa Pa and Ha Giang in the north will be chosen by many tourists in order to avoid the heat.

In an effort to further stimulate tourism demand, travel firms offer not only a variety of tour options and routes, but also various price incentives and gifts.

Information from tourism firms indicates that tours lasting for three days and two nights from Hanoi to Sa Pa, Mu Cang Chai and Ha Long cost VND2.7 million, VND2.4 million, and VND3.6 million, respectively. Meanwhile, four day and three night tours from Hanoi to Nha Trang and Da Nang cost VND5.7 million and VND4.9 million, respectively.

Doan Thi Thanh Tra, marketing and communication director of Saigontourist, reveals that the firm is expected to serve about 30,000 visitors during the coming National Day holiday. To meet the various needs of visitors, Tra says Saigontourist has created roughly 100 domestic and international tours, priced starting from only VND3.49 million per person, with a primary focus on domestic tours.

Along with domestic tours, international tours are also being offered at attractive prices. Pham Duy Nghia, director of Vietfoot, explains that Vietnamese travelers have tended to go abroad recently, particularly as the cost of travel to some countries such as Thailand, Singapore, and Malaysia is equal or even lower than domestic tours. Indeed, it gives visitors the chance to experience four or five star flight services and stay at three of four star hotels.

Destinations in Japan and the Republic of Korea are also popular among tourists as it is the autumn period and the weather is perfect for guests to enjoy.

Meanwhile, longer market routes and longer tours to destinations such as Northern Europe or Australia, are also itineraries of great interest to middle-aged travelers.

Lao Cai set to host 23rd Vietnam - China International Trade Fair

The 23rd Vietnam - China International Trade Fair is scheduled to get underway in Lao Cai city of the northern province of the same name from November 10 to 15, according to the Ministry of Industry and Trade.      

The event, part of the national programme on trade promotion, aims to strengthen trade exchanges and accelerate investment among various businesses of the two countries.

It also demonstrates the key role of Lao Cai province in connecting the Vietnamese and ASEAN markets with Yunnan (China) and the Southwest China region.

A number of activities will be held during the trade fair, including a talk on economic and trade cooperation between Lao Cai and Yunnan, along with a Vietnam-China logistics and import-export forum.  

Hoang Chi Hien, director of the Lao Cai Department of Industry and Trade, affirmed that through the fair, the locality expects that many large investors will inject further funds into infrastructure at industrial parks and the Kim Thanh - Ban Vuoc cross-border economic cooperation zone.

At present, Lao Cai is fully prepared for all possible optimal conditions and offers the highest incentives for financiers.

The contracts signed at the fair are expected to contribute to increasing import and export turnover through the Lao Cai – Hekou border gate, which is predicted to reach over US$10 billion by 2025.

Vietnam to have over 5,000 international logistics enterprises

Vietnam has more than 5,000 enterprises involved in international logistics, heard a conference on the World Logistics Passport (WLP) initiative which took place in Hanoi on August 14.
      
A signing ceremony of cooperation agreement between WLP and Vietnamese partners participating in the program is held at the event.

The event was jointly held by the Ministry of Industry and Trade, the WLP Program, along with relevant agencies, to examine the potential for strengthening cooperation in logistics between Vietnam and the United Arab Emirates (UAE).

Addressing the event, Abdulla Alsuwaidi, manager and lead of Partnerships and Hubs of the WLP, emphasised that the WLP is a global, private sector-led initiative which is specifically designed to smooth the flow of global trade. It has been selecting partners to remove trade barriers and at the same time increase import - export diversity among logistics and trade hubs.

WLP has partners at 29 hubs of the WLP network around the world, and Vietnam has been added to the list of regional logistics and trade centres with the presence of more than 100 Vietnamese logistics enterprises, he added.

Nguyen Ngoc Thuyen, a representative of WLP Vietnam, revealed that by joining the WLP initiative, Vietnamese businesses can save both cost and time in customs clearance, gain entry to new markets, diversify their products, and move to increase the market share for major export products.

With an ecosystem of partners in the supply chain, the WLP initiative will help to create a large flow of goods to form a global chain of key suppliers, he noted.

For his part, Tran Quang Huy, director of the Asia-Africa Market Department under the Ministry of Industry and Trade, pointed out that Vietnam is currently among the top 20 trading countries in the world, with import-export turnover last year reaching nearly US$735 billion.

Vietnam has also joined 16 free trade agreements and ranked 11th out of 50 global emerging logistics markets. It is home to roughly 30,000 logistics enterprises, including more than 5,000 enterprises operating in international logistics, helping to form large and medium-sized logistics centres.

Experts outlined that the effective cooperation with the UAE in the field of logistics would contribute to increasing trade among the two sides and partners in the Middle East region and other countries in the world.

A signing ceremony of cooperation agreement between WLP and Vietnamese partners joining the initiative was also held at the conference. 

Thailand-Vietnam business forum opens up partnership opportunities among start-ups

A Thailand – Vietnam business forum took place in Bangkok on August 15, focusing on ways to further promote trade relations between the two nations and closer connections between their businesses.

Jointly organised by the Thailand - Vietnam Friendship Association (TVFA) and the Vietnam - Thailand Friendship Association (VTFA), the event was part of activities to celebrate the 10th anniversary of the strategic partnership between the two countries (2013 – 2023).

According to Nithi Patarachoke, Secretary-General of the TVFA, the forum’s theme emphasises cooperation and establishment of relationships for the new generation of entrepreneurs and start-up companies.

The event offers a chance to share information, ideas, knowledge, experience, connection opportunities, and technological innovations, thus promoting a continuous and sustainable relationship between the two countries.

Addressing the event, Sanan Angubolkul, Chairman of the Thai Chamber of Commerce and TVFA President, emphasised that the association intends to become a mechanism for promoting growth and the relationship between Thailand and Vietnam.

Through this event, the association wants to introduce beneficial connectivity initiatives for both countries, including business, cultural, and people-to-people links, he said.

This year’s forum focuses on promoting connection among young entrepreneurs and start-ups, which are not only the heart and soul of the future economy but also a driving force that will lead the two nations towards innovative and transformative changes, Angubolkul stressed.

Meanwhile, VTFA President Nguyen Van Thanh highlighted the significance of the event, especially for young enterprises with innovative and creative mindsets, and start-ups from both countries.

The forum offers a venue for Vietnamese and Thai businesses to share information, and discuss solutions to boost rapid and sustainable development, and improve the competitiveness of their products in the context of globalisation and international integration, he stated.

The forum encompassed a variety of activities, including meetings, debates, exhibitions, product presentations, brand advertising, business-to-business meetings, and events to connect start-ups.

Nguyen Quynh, CEO of the innovation and creativity networking platform Bambuup, expressed the belief that Thailand, with many similarities to the Vietnamese market, will be the first step for Vietnamese start-ups to explore the market, find customers, and bring Vietnamese start-up solutions to the world.

The organisers expected that the event will contribute to strengthening bilateral relations and mutual understanding, and opening up larger business opportunities between Thailand and Vietnam.

Firms asked to prepare contracts carefully before exporting to Egypt: official

Trade between Vietnam and Egypt sees a promising outlook as the market with a population of over 100 million people is paying more and more attention to Vietnamese agricultural products, said Head of the Trade Office at the Vietnamese Embassy in Egypt Nguyen Duy Hung.

Egypt is Vietnam's second-largest trading partner in the African market, accounting for 19% of Vietnam's total exports to the continent in 2022.

Exports from Vietnam to Egypt last year reached 502.8 million USD, including coffee, pepper, cashew nuts, copra, frozen pangasius fillets, electronic products and components, phones, computers, textiles, machinery, and equipment.

However, Vietnam's export turnover to Egypt in the first six months of this year reached only 236.2 million USD, down 11.2% from the same period last year.

This decline is mainly due to Egypt's facing a shortage of foreign currency, its domestic currency depreciates rapidly against the USD, and high inflation.

The Egyptian government had to apply measures to tighten foreign exchange management, regulate imports to ensure foreign currency for the import of essential goods and production materials, and reduce the import of non-essential goods.

In addition, Vietnam and Egypt have not yet signed any free trade agreement (FTA), so Egypt imposes quite high taxes on imports from Vietnam.

Many Vietnamese products, especially consumer goods, find it difficult to compete with imports from countries that have signed FTAs with Egypt.

Hung said that as international trade always has many potential risks of commercial disputes, and even frauds, Vietnamese companies exporting to Egypt need to attach great importance to the country’s legal frameworks and commercial disputes.

He said two of the most common commercial disputes that Vietnamese and Egyptian companies faced in the past time relate to late payment and brokerage.

That is why Vietnamese enterprises need to carefully consider the contract terms on delivery and payment methods, as well as add a clause to handle arising problems so as to minimise risks, especially in the case of goods having to stay at port for long due to the problem of late payment from the importer.

In addition, businesses should limit signing contracts through brokers.

Contracts should include an advance payment clause of at least 30% of the total value, as a norm in Egypt, Hung said.

In addition, when receiving any request for the contract’s changes from the importer, the companies needs to check and re-verify the information and ask its partner to send an official lawful document so as to have a basis for settlement in case a dispute occurs.

According to Hung, Egypt is currently reforming customs and import-export procedures, so Vietnamese businesses also need to update relevant changes before signing contracts with their Egyptian partners.

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