Continuous interest rate cuts and support policies are gradually proving effective, helping ease difficulties facing the real estate market, experts have said.

Since the start of 2023, the State Bank of Vietnam has continuously reduced policy interest rates, by a total of 0.5-2 percentage points per year. It has also ordered credit institutions to minimise expenses to lower lending interest rates to aid businesses, people, and economic recovery.

The Government, ministries, and sectors have also issued an array of other support policies to remove bottlenecks in the economy.

These factors have been providing a boost for the real estate market to recover faster, more safely, and more sustainably, which also indicates that support policies are gradually proving useful, experts opined.

Dr Can Van Luc, Chief Economist at the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) and member of the National Financial and Monetary Policy Advisory Council, held that the property market underwent the most trying time, including financial difficulties caused by corporate bond-related problems.

The market has been gradually bouncing back since May, with the second quarter recording better results than in the first quarter. Industrial parks now have an occupancy rate of 76%, he noted.

Investors said prices of real estate stocks have increased 18% and construction tickers 39%. Procedural and legal obstacles facing many real estate projects have also been tackled.

Interest rates have returned to the levels in the first half of 2022.

Specialists of the WiGroup JSC, which provides economic data and fintech solutions in Vietnam, forecast the property market will witness observable improvements from late 2023 or early 2024. Compared to the pre-pandemic period, developments in the market at present are similar to those in 2014-2015.

They pointed out that the investor sentiment has improved, procedures related to investment procedures been removed, interest rates slashed, lending ceiling limits raised, and public investment disbursement accelerated while consumption and tourism stimulated. These factors are fueling real estate transactions.

Lower interest rates will be the main driver for the property sector. While deposit interest rates have been reduced since Q1, lending rate cuts are slower but still continue. Besides, a more favourable legal corridor has also helped facilitate real estate supply, according to WiGroup.

Nguyen Quoc Anh, Deputy Director General of Batdongsan.com.vn – an online property trading platform, said if deposit interest rates continue to drop to under 10% by the end of this year, the money people put into their deposit accounts in late 2022, when deposit interest rates surged, will be withdrawn and channelled into the market.

Echoing the view, Chairman of the Vietnam Association of Realtors Nguyen Van Dinh perceived that if lending interest rates for both new and old loans decline, the financial pressure on investors will ease. Besides, if deposit interest rates are brought down to under 5%, money will return to real estate and foster transactions in the market.

Domestic coconut price triples after US export news

After there was information that Vietnamese fresh husked coconuts can be exported to the US, the price of fresh coconuts in the Mekong Delta has increased again.

According to the Ben Tre Coconut Association, the price of coconuts fluctuated in the range of 25,000-45,000 VND (1.1-1.9 USD) for 10 coconuts in the province at the beginning of this year.

However, it has increased to 35,000 - 75,000 VND depending on the type and quality.

At the beginning of the year, the price of fresh coconut was only 15,000 - 20,000 VND for 10, it has now tripled to between 60,000 to 65,000 VND.

Ben Tre’s Department of Agriculture and Rural Development said that the reason why coconut prices rose was thanks to the increase in world coconut prices.

Although the coconut area of the province is the largest in the country, it is very small compared to the world, so the price of coconut depends greatly on the world market.

The domestic coconut market has many positive signals after the news that the US officially opened to Vietnamese husked coconut.

After more than two years of decline, the sharp increase in the price of coconut made coconut farmers very excited, because coconut trees are the main source of income for many households. Besides, some businesses have also started planning to export this item.

Vietnam ranks seventh in coconut production worldwide with an area of over 188,000 ha, mainly concentrated in the Mekong Delta.

The country’s coconut area accounts for 1.67% of the world's area, 2.07% of Asia's coconut area.

Coconut export turnover is estimated at 900 million  USD last year, making Vietnam the fourth largest exporter of coconut products in the Asia-Pacific region.

Currently, there are about 854 enterprises manufacturing and processing coconut products with many different types and sizes of activities such as processing coconut shells, copra, coconut juice to solve jobs for more than 15,000 employees.

Currently, there are more than 90 enterprises exporting coconut products, of which, 42 have exported deeply-processed products.

The coconut industry strives to export coconut and coconut products to reach over 1 billion USD.

Vietnamese longans find fans in Thai market

Starting from August 18, Thai consumers can enjoy tasty Vietnamese longans, nestled within the bustling Central World trade centre in Bangkok.

The fruit, sourced from Mekong Delta region and cultivated in adherence to exacting Global GAP standards, has an accredited export code that makes it qualified for entrance into the Thai market.

With an attractive promotional price of only 169 baht (nearly 5 USD) for 500 grams, which is about 230,000 VND for every kilo, Central Retail Vietnam expects they will sell about 2.3 tonnes of Vietnamese longans at Tops supermarket in Thailand.

“Vietnamese longan is in its peak season right now. Last year, we tried selling nearly one tonne of (Vietnamese) longan in Thailand, and people really liked it. That's why we're sending 140% more longan to Thailand this year,” said Paul Le, Vice President at Central Retail Vietnam.

In July, Central Retail Vietnam sent three tonnes of lychee from Vietnam's Bac Giang province to Thailand. They cost 259 baht per box, which is about 173,000 VND for every kilo.

This success for Central Retail and their partners not only highlights the preference of Thai people for Vietnamese fruits but also presents an opportunity for Vietnamese businesses to engage in more business in Thailand.

Vietnam attends CLMV Economic Ministers’ Meeting in Indonesia

A Vietnamese delegation led by Minister of Industry and Trade Nguyen Hong Dien attended the 15th Cambodia - Laos - Myanmar - Vietnam Economic Ministers' Meeting (CLMV EMM 15) in Semarang city, Indonesia on August 18.

The event was part of the 55th ASEAN Economic Ministers’ Meeting (AEM 55) and related meetings from August 17-22.   

Speaking at the event, Minister Dien thanked Cambodia, Laos and Myanmar for actively joining activities hosted by Vietnam during 2022 and the past months of 2023, including the Vietnam Expo, the Vietnam Foodexpo, fairs held in Laos and Cambodia, and scholarships granted by Vietnam.

Regarding the CLMV Action Plan for the 2023-2024 period, the Vietnamese delegation committed further support to stalls of Cambodia, Laos and Myanmar at major international fairs and exhibitions organised by Vietnam, he said, adding scholarship programmes for students from Cambodia, Laos, and Myanmar will also continue.

The Vietnamese side proposed that the CLMV countries enhance cooperation to facilitate trade, remove barriers to lift trade volume among regional countries. They were urged to offer mutual support to effectively implement the Free Trade Agreements (FTAs) of which they are members, contributing to strengthening regional supply chains and supporting the development of the business community.

Delegates at the event discussed reports on the economic, trade, and investment situations of the four countries, the completion of the CLMV Action Plan for the 2021-2022 period, the progress of the CLMV Action Plan for the 2023-2024 period, as well as updates on the implementation of the Action Plan for the CLMV Development Framework and a project regarding the workshop on the socialisation of the implementation of the Action Plan for CLMV Development Framework, and other important issues.

A joint statement was also adopted at the event.

Initiated by Vietnam, the CLMV EMM mechanism was established in August 2010 with an aim to further nurture economic and trade relations among the CLMV countries, and closer coordination at regional, sub-regional, and international forums; fully leverage the potential of each country, narrow the development gap between the four CLMV nations and the rest of the ASEAN region and the world; and expedite the implementation of agreements reached at the CLMV Summits.

Airlines to offer over 1 million seats during National Day holidays

More than 5,300 flights are scheduled to operate during the peak travel period from August 31 to September 5, providing a total of 1.06 million seats in order to meet passengers' demand during the National Day (September 2) holidays.

The number of seats offered represents an approximately 20% increase compared to normal periods and a slight decrease of 3% from the same period last year.

According to the Civil Aviation Authority of Vietnam (CAAV), currently, airfare prices are stable, showing a little difference from the peak summer season. It is noteworthy that as of August 18, the occupancy rate for the four-day upcoming holidays remained relatively low.

For such main routes from/to Hanoi, Ho Chi Minh City, and Da Nang, the rate has only reached around 30-40% for newly scheduled flights. Meanwhile, tourist routes (except for flights from Hanoi to Phu Quoc, Binh Dinh, and Con Dao, and those from HCM City to Binh Dinh, which have a booking rate above 40%) have logged occupancy rates ranging from 25% to below 40%.

The Ministry of Transport has requested the CAAV to enhance airport security and safety during the holidays, with special attention to Tan Son Nhat and Noi Bai airports.
 
The upcoming holidays will last from September 1-4.

Project aims to promote efficient use of energy in supporting industries

The Vietnam Chamber of Commerce and Industry (VCCI) on August 18 launched a project to promote the economical and efficient use of energy in supporting and food processing industries in Vietnam.

The two-year project was funded by the Southeast Asia Energy Transition Partnership (ETP) and will be carried out by VCCI.

The overall objective of the project is to raise awareness in the two industries, support business access to finance for investments and the economical and efficient use of energy. It aims also to establish connections among manufacturers, financiers and ESCOs, pilot assessment of energy efficiency standards for the two industries and develop a roadmap to establish an ESCO Association in Vietnam.

VCCI Vice President Bui Trung Nghia said communication activities to change habits and raise the awareness of energy saving among employees as well as technical support activities to apply modern and natural technologies, automating production and using high-efficiency power-consuming equipment can save 20-40% of electricity consumption depending on the size and technology in the manufacturing business.

Therefore, Nghia said, promoting energy-saving solutions in production is very important in the process of socio-economic development while ensuring national energy security.

The project will help businesses use resources more efficiently, practise responsible manufacturing, improve social and environmental conditions, and reduce carbon emissions in the two energy-intensive industries, said Nguyen Thi Thanh  Huyen, project coordinator of VCCI’s Project Management Unit.

The project aims to raise awareness and improve management methods for the economical and efficient use of energy of 100 manufacturers in the supporting and food processing industries. About 10 factories will be supported to develop viable energy efficiency projects while three other factories will apply technology to improve energy efficiency. It is expected to establish a network for the economical and efficient use of energy, including manufacturers, ESCO, financial institutions, and stakeholders. It will also consult the roadmap to establish the ESCO Association and pilot a benchmarking tool for the economical and efficient use of energy.

At the workshop, John Robert Cotton, Senior Program Manager of the Southeast Asia Energy Transition Partnership (ETP - project sponsor), said that ETP is currently focused activities in Indonesia, the Philippines and Vietnam, three countries with high energy demand, a large number of fossil fuel-based energy projects and significant and cost-effective potential for renewable energy.

In Vietnam, enterprises in the food processing industry and supporting industries have seen rapid industrialisation and have great potential for energy saving and greenhouse gas emission reduction. However, businesses are facing many difficulties in applying energy-saving solutions due to a lack of information on energy efficiency, sustainability and green production, according to Cotton.

Dragon fruit origin e-traceability system introduced in Binh Thuan

An innovative e-traceability system to track the origin and carbon footprints of each dragon fruit have been introduced at a conference in the south-central province of Binh Thuan.

The event, themed "Digital Transformation towards Green Agriculture and Sustainable Development," was co-hosted by the Ministry of Agriculture and Rural Development (MARD) and the UN Development Programme (UNDP) on August 17.

Local and international consumers who buy or import dragon fruits from the province, can now transparently scan the QR code to trace the fruit origins and the levels of “green” or environment-friendly practices applied to produce the fruit.

In the context of green transition in agriculture, this is an important tool for local producers and businesses in Vietnam to track and manage the greenhouse gas (GHG) emission level of the supply chain and avoid unnecessary restrictions to export to the high-end markets, where carbon border adjustment mechanism is on the rise.

Speaking at the event, Deputy Minister Hoang Trung said digital transformation is a must responsibility, huge obligation, and in interests of the entire producing system, especially farmers.

“It is a crucial instrument for producing high-quality agricultural products at the lowest cost and most significant profit," he said.

He also added that the ministry had established the Centre for Digital Transformation and Agricultural Statistics - a unit in charge of information technology, digital transformation, and information security of the ministry.

Patrick Haverman, UNDP Deputy Resident Representative in Vietnam, said: “We are proud to collaborate with the Ministry of Agriculture and Rural Development in spearheading some innovative solutions to support the green and sustainable transformation in agriculture.”

He added that it is good news that the digitalised carbon traceability systems have been established for two major exports in Vietnam, namely dragon fruits and shrimp.

The tool is essential to local government, businesses, producers and consumers to operate in a green economy, where “green” identities and “green” standards are required as new normal, he said.

By harnessing technology to drive climate-smart practices of businesses and enhance the resilient livelihoods of local farmers, we are collectively paving the way for a greener, more prosperous future for Vietnam’s agriculture, he said.

Every opportunity needs to be grasped to speed up growth: experts

To reach this year’s GDP growth target of 6.5%, economic expansion in the second half of 2023 must stand at around 9%, which requires harmonious and close coordination among the Government, ministries, sectors, and localities to maximise resources and seize every opportunity, experts have said.

Vietnam posted a GDP growth rate of 3.72% in H1, only higher than that in the same period of 2020 (1.74%) since 2011.

The economy improved in July thanks to vibrant trading activities and services and positive signs from foreign investment attraction. In particular, bottlenecks facing businesses are being gradually removed.

Prime Minister Pham Minh Chinh has ordered that in the rest of the year, priority must be given to tackling production and business obstacles, fostering growth, creating jobs, ensuring livelihoods for people, stabilising the macro-economy, controlling inflation, and guaranteeing social security.

He also demanded accelerating the disbursement of soft loan packages for social housing development and the wood and fisheries industries. While the Ministry of Finance was told to step up refunding the value added tax (VAT) and address problems in the corporate bond market, the Ministry of Transport was asked to manage to start work on a terminal of Long Thanh International Airport in August.

To take timely solutions to difficulties and grasp chances to obtain the best possible socioeconomic results in the remaining months, a representative of the General Statistics Office held that it is necessary to keep a close watch on and stay updated with changes in the world situation, including the fiscal and monetary policies of big economies and major trading and investment partners of Vietnam.

The official also pointed out the need to firmly maintain macro-economic stability and adopt a proactive, flexible, and effective monetary policy that is closely and harmoniously combined with the fiscal policy and other macro-economic ones.

Economist Nguyen Bich Lam held that to reach the growth target, the planning and investment sector should constantly update growth and inflation scenarios to ensure responsiveness to any circumstances, quickly and effectively carry out the fiscal and monetary policies approved by the National Assembly, and foster domestic production and consumption, especially the supply of input materials.

Other experts said to continue giving a “breath of fresh air” to enterprises, the most important thing is to always provide optimal conditions for them so that they can further improve their competitiveness, make use of economic growth chances, and attract investment.

To do so, ministries and competent agencies should pay more attention to simplifying and boosting the transparency of administrative procedures, maintain policy stability, solve contradictory or overlapping legal rules, and hold productive dialogues with enterprises, said Nguyen Minh Thao, head of the board for business environment and competitiveness studies at the Central Institute for Economic Management.

Accelerating public investment disbursement is also among the measures promoted by the Government to bolster growth. The Ministry of Planning and Investment (MPI) has urged other ministries, sectors, and localities to take stronger actions in this regard, an MPI official noted.

To achieve the best possible result, every opportunity must be tapped into. In addition, enterprises should also fulfill every order, big or small, to gradually recover, according to MPI Deputy Minister Tran Quoc Phuong.

In terms of export and consumption – two other growth drivers, the Ministry of Industry and Trade will further step up supporting enterprises to make use of preferential treatment under free trade agreements to boost export and stimulate domestic consumption.

Meanwhile, Acting Director General of the General Department of Taxation Mai Xuan Thanh said to refund VAT as ordered by the PM and the Finance Minister, the general department has directed taxation agencies nationwide and set up check teams to hasten the refunding.

As a result, over 71.82 trillion VND (3 billion USD) in VAT was refunded in the first seven months of 2023, giving enterprises more capital for their production and business activities, he added.

Vietnamese goods hope to conquer domestic market

Thanks to improved quality, diversified designs and competitive prices, Vietnamese goods have gradually won the trust of domestic consumers, but more attention on green practices, origin traceability, and e-commerce is needed to truly conquer the domestic market.

The purchasing power of Vietnamese goods is on the rise. While more than 90% of the surveyed consumers said they prioritise domestically produced goods when shopping, 75% encourage their families and friends to buy Vietnamese goods, which currently account for over 70% of the items sold at traditional markets, according to the steering committee for the “Vietnamese people prioritise Vietnamese goods” campaign.

In Hanoi alone, made-in-Vietnam products dominate such Vietnamese-owned supermarkets as Co.opmart, Vinmart, and Hapro, at a rate of 90 - 95%. This rate stands at 60 - 96% at the supermarkets run by foreign businesses such as AEON and Mega Market.

This indicates a change in consumer awareness. Vietnamese goods are not only prioritised but have now become an indispensable choice of local consumers, said the steering committee.

Vo Phi Hai, Deputy Director of the Co.opmart branch in Nha Trang, said up to 90% of products sold at the branch and the entire Co.opmart system are made-in-Vietnam.

All have clear origin and certificates of high-quality or OCOP (One Commune, One Product) products. Vietnamese suppliers have frequently improved product designs and launched weekly and monthly promotional programmes to attract consumers. Some products are even able to compete with foreign rivals, he added.

Some experts held that in the time ahead, it is necessary to expand and boost the quality of the campaign, which should be turned from “Vietnamese people prioritise Vietnamese goods” into “Vietnamese goods win the hearts of Vietnamese people”.

Measures should be taken to standardise the origin traceability of essential items, form safe food supply chains, and facilitate enterprises’ application of e-commerce to product distribution in order to promote consumers’ access to Vietnamese goods.

To assist businesses in this regard, the Domestic Market Department of the Ministry of Industry and Trade said that the ministry will continue implementing trade promotion activities and boost the use of e-commerce in trading Vietnamese goods in a manner appropriate to the new context.

The move is expected to help raise the stature, quality, and competitiveness of Vietnamese goods amid intensive integration into the regional and global economies so that made-in-Vietnam products can truly win the hearts of local consumers, the department added.

ASF vaccines ready for commercial production

Vietnam is ready to produce home-grown commercial vaccines against African swine fever (ASF) for both the domestic and export markets.

After more than a year since the administration of 600,000 doses of ASF vaccines on pigs in over 40 provinces and cities nationwide – under the supervision of the Department of Animal Health – showed high efficacy of 95 per cent, the Ministry of Agriculture and Rural Development (MARD) has approved their use on a larger scale.

The two products involved are the NAVET-ASFVAC vaccine, made by Navetco Central Veterinary Medicine JSC, and the AVAC ASF LIVE vaccine, produced by AVAC Vietnam JSC.

Nguyen Van Long, director of the Department of Animal Health said, “These two ASF vaccine producers are working with local authorities to deploy vaccination campaigns for pig herds. A number of businesses, including C.P. Vietnam, have registered to use the ASF vaccines on their pigs.”

“In April and May, an expert delegation from the US Department of Agriculture implemented an independent assessment based on the results of research, production, testing, marketing authorisation, and supervision of vaccine administration in Vietnam. The assessment confirmed that the nation's research and production results for the ASF vaccines are similar to those seen on the US side,” Long continued.

“The evaluation and control of the quality of the vaccines – sterility, safety, and effectiveness – in Vietnam is in line with international standards, and the results are submitted to the World Organization for Animal Health for approval,” he added.

The authorities and vaccine producers are preparing for the export of these products to many countries after receiving the positive feedback. In the short term, these two producers will export 2 million doses to the Philippines and Indonesia between August and October this year.

In response to orders from other countries, Vietnam has provided support and sent experts to collaborate in the organisation of vaccination campaigns.

Having seen all the vaccinated pigs develop an antibody immune response with the NAVET-ASFVAC vaccine, the Dominican Republic appreciated the support from MARD and other specialised units and enterprises from Vietnam. It hopes to continue receiving assistance and then purchase the vaccines for use in the country.

A vaccine produced by Dabaco Group has fallen behind schedule, although in early 2022, Deputy Minister of Agriculture and Rural Development Phung Duc Tien told VIR that the testing was complete.

The final step is to finalise the procedures for releasing the products, which were expected to be marketed in late March or early in the second quarter of 2022.

Nguyen Van Tue, deputy general director of Dabaco, informed VIR that there is still a lot of work to carry out, and that the group will unveil detailed information once the product is made official.

Binh Thuan to pilot night tourism areas

Authorities in the southern coastal province of Binh Thuan have decided to pilot developing night tourism services in two local areas by the end of this year.

The pilot programme, which belongs to the province's plan to develop the tourism economy by 2030, will be carried out at NovaWorld Phan Thiet Resort and Thanh Long Bay Resort in the fourth quarter of this year.

According to the programme, night activities focusing on culture, entertainment, food and beverage services, and travel will be organised on a total area of nearly 1,000 hectares at NovaWorld Phan Thiet Resort and another 90 hectares at Thanh Long Bay Resort. Preparations are underway.

After the pilot programme, local authorities plan to expand the night-time economy to other areas in Phan Thiet City, including Nguyen Dinh Chieu, Nguyen Tat Thanh, and Le Duan streets, and along the banks of the Ca Ty River.

By 2025, the programme will be introduced to five localities including Phan Thiet City, La Gi Town, and three districts of Tuy Phong, Bac Binh, and Ham Thuan Nam before continuing to be expanded to some other suitable areas between 2026-2030.

Vice chairman of the Binh Thuan Provincial People's Committee, Nguyen Hong Hai, said that Phan Thiet City, La Gi Town, and Phu Quy District are the most suitable areas and will be given priority.

"We've asked these localities to quickly upgrade their transport infrastructure, prepare special products and services, and speed up marketing and advertising activities for their programmes," he said. "Musical fountain, firework displays, and shopping at local night streets can be interesting experiences for tourists."

The programme was approved by the prime minister in 2020. The Ministry of Culture, Sports and Tourism recently issued some models to develop night tourism services in Hanoi, HCM City, Danang, Can Tho, Quang Ninh, Thua Thien-Hue, and Khanh Hoa in the next three years.

Real estate policy repair encouraged

More effective solutions are being called for to pave the way for new supply and access to buy property.

The government on August 7 issued Resolution No.124/NQ-CP, which requires related ministries and sectors to accelerate the establishment of trading real estate centres to help make the market more transparent.

According to the resolution, the government requires the Ministry of Construction to work with localities and businesses to push up implementation of large-scale and long-delayed real estate projects.

The move followed hot on the heels of discussions on solving issues in the real estate market at a conference between local authorities and property businesses, chaired by Prime Minister Pham Minh Chinh days previously.

The working group, led by Deputy Minister of Construction Nguyen Van Sinh, has worked with around the developers of 180 housing and urban area projects since it was established last year in Ho Chi Minh City. Among those, almost 70 projects have been guided for continuous implementation. In Hanoi, over 700 projects have been on the radar of the local authorities, with around 420 of those already offered guidance for implementation.

According to the Ministry of Construction, most of the problems belong to the rights of localities, but cannot be fully applied due to weak capacity in law implementation.

“Moreover, there are many difficulties as projects were prolonged for years while the legal regulations have continuously changed over the years and left projects behind,” Sinh said.

Deputy Minister of Planning and Investment Do Thanh Trung said that the main obstacles relate to investment procedures and project implementation.

“To deal with this, the Ministry of Planning and Investment has revised regulations related to investor selection, approval procedures, adjustment of ventures and many others on the Law on Bidding and these revisions will help the implementation work well,” Trung said.

However, Trung stressed that there were still many issues related to projects that have been approved before the Law on Investment was implemented. To solve the problem, the Ministry of Planning and Investment coordinated with other ministries are developing a set of general guidelines which are expected to be issued this month.

Updating the implementation of the social housing credit package programme of $5 billion, the State Bank of Vietnam released that up to now, nine provincial People’s Committees have sent a list of 23 projects to participate. Apart from those, Phu Tho province announced three projects. Those 26 projects are expected to have credit of $540 million of total loan demand.

The prime minister asked for more reviews of the legal framework. In particular, he said it is necessary to accelerate the establishment of real estate trading platforms to promote the self-adjusting ability of the market and limit administrative intervention. Meanwhile, ministries and local authorities must focus on and expeditiously complete the planning and zoning work to ensure the market runs smoothly.

“To increase total supply and aggregate demand in the market, monetary policy should be proactive, flexible, timely, and more effective. In addition, it is necessary to speed up the consideration of reducing VAT, accelerate the disbursement of public investment, and implement national target programmes,” the PM stressed.

Over 450 exhibitors to join ProPak Vietnam 2023 in HCM City

Over 450 exhibitors from 30 countries and territories will join the 16th international exhibition on processing, and packaging food, beverage, pharmaceutical, and cosmetics industry – ProPak Vietnam 2023 that is slated to take place in Ho Chi Minh City in November.

Speaking at a press conference announcing the event held in Hanoi on August 18, BT Tee General Director of Informa Markets Vietnam – the event organiser - said that the amount of plastic waste in the world has doubled in the last two decades and only 9% of the waste was recycled successfully. Meanwhile, the world’s demand for plastic packaging keeps increasing and is expected to double in 2040.

Businesses are seeing a major transformation in the packaging industry which requires technical innovation, and increased use of new renewable sources of raw materials, he said.

At ProPak Vietnam 2023, businesses will showcase technologies in areas including packaging, processing technology, raw materials, pharmaceutical technology, cold supply chain, logistics, and warehousing.

The event expects to attract more than 10,500 visitors, mostly business owners, management boards, and senior decision-makers in businesses.

Within the framework of the exhibition, a series of international seminars on the processing and packaging industry will be held. Notably, Informa Markets Vietnam will collaborate with the Environment and Resources Media Centre to organise a seminar themed "Opportunities and challenges for the packaging industry in a new context: Roadmap for environmental protection, carbon emission reduction" on September 8.

ICT firms to rebound in H2

Retail enterprises were expected to hit bottom profits in the first half of the year, and there are more positive factors supporting the industry’s recovery prospects in the future, according to experts.

Due to low demand and weak purchasing power, the retail industry, especially the communication and technology (ICT) industry, continued to record another challenging quarter from April to June.

Most businesses in the industry recorded sharp falls in profits compared to the same period last year, even FPT Retail (FRT) set a record loss.

Since the end of last year, the profits of retail businesses have been under pressure due to numerous issues.

Escalating inflation weighed on consumers' disposable income, forcing them to cut non-essential spending, while higher interest rates and a tighter credit environment further pressured non-essential consumption.

Moreover, the price war that broke out at the beginning of the second quarter made the situation even more difficult.

"In the first half of the year, the ICT retailers faced many difficulties because the demand for the products decelerated significantly and the battle for market share became fiercer. This has negatively affected the business results of ICT retail enterprises," Lê Xuân, an independent trader, told Việt Nam News.

However, signs of profit-bottoming have also appeared.

Even though it participated in the price war, Mobile World Investment Corporation’s profit, in absolute terms, did not drop too deeply in the second quarter compared to the first quarter of the year.

Meanwhile, Digiworld posted the most optimistic results, as its profit in the second quarter grew 6 per cent over the first quarter.

In its recently released retail industry analysis report, SSI Research said that the profits of most retail businesses (in absolute terms) were likely to hit bottom in the first half of 2023 and were on track to recover.

Maybank Securities (MSVN), in a recent report, highly appreciated Digiworld’s business for its ability to recover profits amid the price war among retailers in the information technology sector.

The securities firm believes that Digiworld has strengths in distributing ICT products and is in the process of horizontal expansion to other potential segments, including home appliances, consumer goods, healthcare, and industrial equipment.

The expansion provides significant room and sustainable drivers for Digiworld's long-term growth, while benefiting from growing demand and digital transformation.

Digiworld witnesses a relatively stable profit compared to other ICT retailers in the current challenging business environment, and the company is expected to recover in the second half of 2023.

According to MSVN, thanks to its wide distribution channels, Digiworld is less affected by the fierce price war for consumers among retailers, with Apple and Xiaomi products being the main contributors to Digiworld.

Despite difficulties, the retail industry still received positive support from macro policies.

The National Assembly has agreed to reduce value-added tax (VAT) by 2 per cent for goods and services that are applying the VAT rate of 10 per cent. The application date is from July 1 to the end of 2023.

At the end of April, the Government also issued a resolution on solutions to support and remove difficulties for borrowers to serve their daily lives and consumption needs.

Meanwhile, lending rates of commercial banks has reduced gradually, which has partly helped businesses ease their interest burden, creating more room for demand-stimulating promotions.

Low interest rates also stimulate consumer demand for the ICT group, an area with a high rate of financial leverage.

In the second half of the year, when the policies’ impacts are clearer, the recovery momentum of the group is forecast to be more pronounced.

The ICT retail group will benefit from the third quarter onwards when the back-to-school season will stimulate the demand for items such as computers, laptops, and tablets.

In addition, Apple is expected to launch the iPhone 15 model in mid-September, which is also expected to be a boost for the group.

In a recent report, MSVN said that, despite the ongoing economic downturn, the seasonal pattern of consumption will continue this year, helping to underpin the economic recovery in the second half of 2023.

At a recent conference on the consumer goods industry, Đoàn Hồng Việt, Chairman of Digiworld's Board of Directors, said that in June, the company achieved the highest monthly revenue since the beginning of the year, and estimated revenue in July is even higher.

Coal imports surge 53% in January-July

Vietnam’s January-July coal imports soared by a steep 53% year-on-year to nearly 30 million tons.

Despite the higher volume, the total coal import value dropped 12.2% year-on-year to around US$4.34 billion due to a sharp price decline, showed data from the General Department of Vietnam Customs.

The average import cost was US$147 per ton in the first seven months of the year, down from US$255 in the same period last year.

Australia, Indonesia and Russia were the top three suppliers of coal for Vietnam, accounting for 88% of the coal import volume.

Australia led the way, exporting 12.5 million tons of coal worth US$2.13 billion to Vietnam, though experiencing a decrease of over US$860 million in trade value.

Indonesia secured the second place, shipping 11.4 million tons, resulting in a trade value of over US$1.3 billion. This marked an increase of 5.22 million tons and over US$300 million in trade value year-on-year.

Russia sold 2.1 million tons for US$449 million to Vietnam, up by 600,000 tons and US$22 million compared to the same period last year.

Vietnam also imported coal from China and Laos due to growing demand for coal in its domestic electricity and industrial production sectors.

In 2021, the nation imported over 36 million tons of coal. The coal import volume is projected to rise to around 46.5 million tons in 2025.

Vietjet conducts first direct flight linking Thua Thien-Hue with Taiwan

Vietjet has welcomed the first direct flight connecting the central province of Thua Thien-Hue with Taipei of Taiwan (China), transporting the first Taiwanese passengers to the new terminal of Phu Bai airport. 
      
Vietjet's first direct flight between Thua Thien-Hue and Taiwan is a chartered one using modern aircraft. (Photo: Vietjet)
The first flight of the route is a chartered one using Vietjet’s modern aircraft.

The airline has been the first operator of two direct routes linking the new terminal of Phu Bai airport with Kunming (China) and Seoul (the Republic of Korea).

Taipei is known as an "urban paradise" with tourist attractions, museums, galleries, and busy shopping streets. Meanwhile, Hue Ancient Capital, the city of festivals and UNESCO cultural heritages, in Thua Thien-Hue province is a favourite destination of many domestic and foreign travellers. From Hue, visitors can also easily visit heritage destinations in the central region and across Vietnam.

With new international routes to Hue, Vietjet looks to help create more tours to attract international visitors, thus contributing to the development of the local economy and tourism on par with the potential and position of an ancient capital rich of heritage values like Hue.

The flights are expected to not only bring international tourists to Vietnam and promote the image of a friendly and hospitable country to friends around the world but also carry Vietnamese tourists to global famous destinations.

Vietnam contributes to intra-bloc cooperation at AEM-55

Minister of Industry and Trade Nguyen Hong Dien is leading a Vietnamese delegation to the 55th ASEAN Economic Ministers’ Meeting (AEM-55) which officially opened in Semarang, Indonesia, on August 19.

The Vietnamese representative gave comments on issues related to intra-ASEAN economic cooperation such as preparations for the signing of the second Protocol amending the agreement on the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), negotiations to upgrade the ASEAN Trade in Goods Agreement (ATIGA), and preparations for the launch of negotiations on the ASEAN Digital Economy Framework, thereby demonstrating Vietnam's strong commitment to regional economic integration and helping maintain its active role in activities that create a driving force for regional and global economic growth, promote post-COVID-19 economic recovery, and strengthen regional supply chains.

At the meeting, participating ministers shared information and updated the implementation of Indonesia's prioritised economic cooperation initiatives in its ASEAN Chairmanship Year 2023, and important tasks of the ASEAN Economic Community such as the ASEAN Strategy for Carbon Neutrality, preparations to launch negotiations on the ASEAN Digital Economy Framework, implementation and upgrade of the ATIGA as well as preparations for consultations between economic ministers of ASEAN member states and their partners.

They also exchanged views on recommendations by the High-Level Task Force on ASEAN Economic Integration related to the building of the post-2025 ASEAN Economic Community vision, and reviewed preparations for the upcoming ASEAN Summit and related summits.

In addition, the ministers also discussed economic cooperation activities between ASEAN and dialogue partners such as the US, China, the European Union, Japan, the Republic of Korea, Australia, New Zealand, India, Russia, Canada, and the UK, along with the implementation of free trade agreements (FTAs) between ASEAN and partner countries, including the upgrade of the ASEAN-China FTA, negotiations on an FTA between ASEAN and Canada, and the implementation of the Regional Comprehensive Economic Partnership (RCEP).

On the sidelines of the meeting, the ministers discussed with the ASEAN Business Advisory Council (ABAC) about the council’s recommendations and priorities related to promoting the use of electric vehicles in the region, strengthening regional trade and investment integration, facilitating collaboration activities on sustainable development, and maintaining health measures to respond to epidemics.

As planned, this meeting will be followed by a series of Economic Ministerial Consultations between ASEAN and its dialogue partners scheduled for August 20-22.

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