The Party Central Committee’s Economic Commission, the Ministry of Industry and Trade (MoIT), and the Vietnam Oil and Gas Group (Petrovietnam) have held a joint conference to popularise and implement Conclusion No. 76-KL/TW on carrying out the Politburo’s Resolution No. 41-NQ/TW on the strategic orientations to develop Vietnam’s oil and gas sector until 2025 with a vision to 2030 and a number of orientations for the new period.

Opening the event, head of the Party Central Committee’s Economic Commission and Deputy Prime Minister Tran Luu Quang highlighted the Party and State’s special attention to the oil and gas sector.

He noted that on April 24, 2024, the Politburo issued Conclusion No. 76-KL/TW on major policies to promote the potential and strengths of the country in general and the oil and gas sector in particular to ensure the industry overcomes all difficulties to develop sustainably.

The conclusion gives guidelines of special importance to the development of the Vietnamese oil and gas industry, creating new momentum and opening up new development space for the sector.

Deputy head of the Party Central Committee’s Economic Commission Nguyen Duc Hien briefed participants on the major contents of the conclusion, along with a number of orientations, tasks, and solutions for the implementation of Conclusion No. 76-KL/TW and Resolution No. 41-NQ/TW.

Hien said that in order to create favourable conditions for the oil and gas industry in the new period, it is necessary to continue completing institutions, policies and legal regulations, promoting the key role of the Petrovietnam.

Amid the energy transition and the Fourth Industrial Revolution, it is crucial to pay attention to developing appropriate technical infrastructure systems, especially digital infrastructure associated with digital transformation, building databases, and effectively using the Science and Technology Development Fund, he said.

A representative from the MoIT presented a plan to realise of Conclusion No. 76-KL/TW of the Politburo and Resolution No. 38/NQ-CP of the Government with a link to the implementation of Party resolutions, strategies and socio-economic development plans of the country, ministries, sectors, and localities.

Le Manh Hung, Chairman of the Board of Members of Petrovietnam, delivered a report on impacts from the world and regional environment, difficulties, challenges facing Petrovietnam as well as assessment of the firm’s resources.

With an aim to become a national industrial and energy group, Petrovietnam proposed seven main groups of tasks and solutions to effectively implement Conclusion No. 76-KL/TW and Resolution No. 38/NQ-CP.

Concluding the event, Quang highlighted the great contributions that the oil and gas sector has made to the country’s socio-economic development, and emphasised the role of the industry in the country’s industrialisation and modernisation.

He held that the oil and gas sector should focus on promoting its potential and advantages to develop renewable energy and new energy resources, ensuring sustainable and modern development of the industry associated with accelerating green transformation and digital transformation, and developing advanced and modern processing and manufacturing industries in the direction of improving self-reliance and increasing the localisation rate.

In addition, the sector should pay greater attention to developing high-quality human resources, attracting talents, and providing intensive training to meet international requirements and standards, he said.

Quang asked central and local Party Committees as well as the Party Organisations of State-owned energy enterprises to thoroughly study Resolution No. 41-NQ/TW, Conclusion No. 76-KL/TW of the Politburo, and Resolution No. 38/NQ-CP of the Government, while continuing to build programmes and plans to effectively implement these documents./.

PM issues directive to stimulate domestic consumption, production, market development

Prime Minister Pham Minh Chinh on August 27 signed a directive on the development of the domestic consumption, production-business, and market.

The directive emphasises the need to address challenges in production and business operations, boost consumer demand, and accelerate domestic market development to promote growth, maintain macroeconomic stability, control inflation, and ensure major economic balances. In the document, he called on ministers, heads of government agencies, provincial and municipal leaders, industry associations, and businesses to implement several key tasks and solutions.

Regarding general tasks, the Government calls for the prompt activation of investment projects aimed at creating new production capacities. This includes focusing on reviewing and prioritising measures to overcome challenges related to public investment disbursement, credit packages, land issues, and policies to attract social resources serving projects in line with market scale and signals.

It is also necessary to introduce policies to encourage consumption and investment in sectors where domestic production has strength and the domestic market has demands, while implementing those supporting domestic enterprises in joining the supply chains of support industry products by foreign-invested companies in Vietnam.

Ministries, agencies, and local authorities are tasked with deploying digital transformation technologies, including artificial intelligence (AI), big data, and blockchain, to further enhance administrative reforms and simplify procedures.

Additionally, efforts are set to be intensified to promote domestic trade, connect supply and demand, provide market information, and offer legal advice to small- and medium-sized enterprises.

In terms of specific responsibilities, the Ministry of Industry and Trade is assigned to strengthen the integration between production and distribution, improve links in the commodity value chain, and ensure compliance with quality and food safety regulations. It will further support local businesses in addressing trade defence investigations, origin fraud, and environmental technical barriers to boost exports to major markets like China, the EU, the US, Japan, and the Republic of Korea.

The Ministry of Finance is set to manage an expanded fiscal policy effectively, coordinate with monetary and macroeconomic policies to boost growth, stabilise the economy, control inflation, and ensure economic balances.

The State Bank of Vietnam’s tasks involve the implementation of a proactive, flexible, and effective monetary policy, in harmony with fiscal and other macroeconomic policies. Meanwhile, missions for the Ministry of Agriculture and Rural Development include directing localities to enhance production, consumption, and export of farm produce from concentrated farming areas.

The Prime Minister also assigns specific work to the Ministry of Construction, the Ministry of Planning and Investment, provincial and municipal authorities, industry associations, and major corporations./.

MoIT to leverage regional linkage resources in trade promotion

Inter-regional links in trade promotion still faced many difficulties and need more focus, according to Nguyễn Thị Thu Thủy, deputy director of the Việt Nam Trade Promotion Agency (Vietrade)'s Export Support Centre at a recent seminar.

The Công Thương (Industry and Trade) Magazine held the seminar with the theme of effectively utilising regional linkage resources in trade promotion in Hà Nội on Monday.

Since early 2024, the Trade Promotion Department under the Ministry of Industry and Trade has been working with provincial and municipal authorities to co-host trade promotion and import-export development conferences in major economic regions. Through these programmes, the Ministry of Industry and Trade (MoIT) is working closely with local areas to conduct major trade promotion activities focused on key export sectors and markets. This new approach in 2024 aims to make trade promotion more targeted and effective in the future.

Thủy said that isolated trade promotion efforts are less effective compared to those that are collaborative and large-scale. Thus, MoIT has included a series of regional trade promotion conferences in its agenda since late last year, covering all six economic regions.

The Ministry has already conducted five of these conferences, with one more planned in Cần Thơ to focus on trade promotion and export-import development for the Mekong Delta region.

"These conferences have shown that local participation and combined intellectual and resource efforts have generated many new ideas for enhancing future trade promotion activities," Thủy said.

Đinh Lâm Sáng, Deputy Director of Bắc Kạn's Department of Industry and Trade, highlighted that regional trade linkages have been effective in six northern provinces. Bắc Kạn's trade promotion has facilitated valuable connections for businesses with OCOP products. He emphasised that showcasing OCOP products across provinces, where products from Bắc Kạn are available elsewhere and vice versa, enhances trade and meets regional needs. This approach supports provincial directives for regional integration and inter-regional trade.

According Sáng, the local trade promotion efforts have also achieved notable results. For example, Bắc Kạn's dong noodle, which has earned a 5-star OCOP certification, is regularly exported to Europe and has received high praise from international customers.

“We plan to promote other high-standard products to new markets and nearby countries. This will provide opportunities for local businesses and cooperatives to export their products, increase their profit margins, and benefit both the businesses and the region,” Sáng said.

Despite some benefits, Thủy notes challenges in regional trade promotion, including inconsistent practices, limited infrastructure, and inadequate resources. To address these, the Ministry of Industry and Trade plans to introduce a new regional trade promotion model, including organising trade missions abroad. Vietnamese businesses and localities have a strong need to explore global markets and learn from international trade promotion models, Thủy said. 

Garment industry improves productivity to reduce pressure from high labour costs

Việt Nam's textile and garment industry will improve productivity to reduce pressure from increasing labour costs that are putting the textile industry under great competitive pressure.

Textiles are a labour-intensive industry, Lê Tiến Trường, chairman of Việt Nam Textile and Garment Group (Vinatex) said, and in its early stages businesses took advantage of cheap labour to develop exports and increase revenue.

Now, the competitive advantage based on cheap-price labour no longer holds. The average monthly salary for garment workers in Việt Nam is US$300 per worker per month, much higher than the $95 in Bangladesh, $190 in Cambodia and $145 in India.

Wage costs are much higher than competitors, while prices of export orders are low, even 50 per cent lower than the same period in 2019. This is a big challenge for the domestic textile and garment enterprises.

One of solutions for this situation is to further improve productivity per capita, Trường said. This will determine the income of workers.

Accordingly, the enterprises need to put investment in using highly automated equipment and reduce the number of workers per product. At the same time, they should look for niche products with higher value, thereby increasing the value of workers' working hours.

Vinatex’s all member enterprises are already applying these solutions to ensure an increase in wages for workers, he said.

For the garment industry to grow revenue by $1 billion in the past, it needed to recruit 100,000 more workers. But today to hit that it only needs about 20,000 - 30,000 workers, he added.

Meanwhile, some businesses will develop the production of very specific products, products for niche or small markets, but those products will bring great economic efficiency, such as specialised technical fabrics and high-quality fabrics.

Improving labour productivity is a combination of many factors, so each business has a bespoke direction to increase productivity. However, the investment in technology equipment and digital transformation in management and production at factories is imperative.

In addition to vocational training for workers, Phú Bài Fiber Joint Stock Company this year set up investment projects to replace equipment, as well as investment plans for 2025. 

For the goal of sustainable development, the company will have an investment plan for the period of 2026-2030 to completely replace equipment that has been used for over 20 years.

This investment project will keep production stable, retain customers, maintain financial stability, all aimed at the goal at keeping the same labour costs per kilogram of fibre.

Meanwhile, Garment 10 Joint Stock Company (Garco 10) has been gradually implementing digital transformation to improve management.

The Vietnam Textile and Apparel Association also stated that enhancement of total factor productivity (TFP) is the key to help businesses improve their production efficiency.

Digital transformation contributes to the enhancement of TFP in corporations.

To achieve the TFP enhancement, it is necessary to prioritise reviewing human resources to find solutions on implementing technology application and innovation. 

The businesses need to assess the level of complexity and prioritisation in digital transformation for each specific activity.

Credit recovers after July decrease

Bank credit is showing signs of recovery after a decline at the end of July, the latest statistics from the State Bank of Vietnam (SBV) show.

As of August 16, credit increased by 6.25 per cent compared to the end of 2023, while by the end of July, credit increased by 5.66 per cent, lower than the 6.1 per cent rate recorded at the end of June.

In HCM City, credit in July decreased slightly by 0.09 per cent compared to the previous month.

Deputy Director of the SBV’s HCM City Branch Nguyễn Đức Lệnh said that the slight decrease in credit in July was mainly due to the decrease in short-term credit and foreign currency credit.

However, Lệnh believed that the socio-economic operation, production and business activities of enterprises, especially the sectors and fields that are economic growth drivers, are continuing to maintain a positive growth trend, which will be an important environmental factor to maintain and promote credit growth,.

According to experts, credit growth in the first half of this year was supported by many factors, such as low lending interest rates and many interest rate preferential credit packages launched on a larger scale. Along with that, they were a driver from the recovery of production and positive signals from FDI, imports and exports.

Data released by the SBV shows in the first half of this year, interest rates for new and existing loans continued to decrease. By the end of June 2024, the average lending interest rate was 8.3 per cent per year, down 0.96 percentage point compared to the end of 2023. The average deposit interest rate was 3.59 per cent per year, down 1.08 percentage points compared to the end of 2023.

Though there have been many increases in interest rates at banks, most of them are short-term interest rates, while medium-and long-term interest rates remain very low. At the same time, lending interest rates are still kept low according to the SBV's policy of supporting businesses and people.

It can be seen that with the current figures, the SBV’s target credit growth rate of 14-15 per cent in 2024 is relatively challenging.

Previously, according to a survey on business trends in the second quarter of 2024 of the SBV’s Forecast and Statistics Department, credit institutions forecast that credit of the entire banking system will increase by an average of 3.8 per cent in the second quarter of 2024 and 13.6 per cent in 2024. Meanwhile, capital mobilisation of the system will increase by 3.5 per cent in the second quarter of 2024 and 9.9 per cent in 2024.

In fact, although credit has increased again since March this year, there is differentiation among credit institutions. Banks such as LPBank, OCB, HDBank and Techcombank, which specialise in corporate lending, have recorded high growth rates, while the group of retail banks have had lower credit growth rates. 

Enterprises rush to plan plantation areas as EUDR takes effect

Some Vietnamese enterprises have rushed to plan their planting areas to comply with the requirements of the EU Deforestation Regulation (EUDR) in order to conquer the strict EU market. 

The Hà Nội-based Kim Thông trade, service and tourism cooperative said it has chosen raw materials grown entirely on agricultural land to comply with the EUDR regulations. The company aims to export mountain peanut, sacha inchi, made products to some European markets including Germany.

Chairwoman of the cooperative Đỗ Thị Kim Thông told doanhnghiepvn.vn that her cooperative grows sacha inchi trees on agricultural land in Hòa Bình, Lai Châu and Sơn La provinces, instead of on forest land. 

Similarly, the GGTD Joint Stock Company said with the EUDR regulations, in the long term, planning raw material areas is an issue that domestic enterprises should pay attention to.

The company's deputy general director Hạ Quyên told the online newspaper that her firm has been focusing on planning raw material areas in the Central Highlands provinces and some localities in the North such as Hải Dương and Hưng Yên, to meet the requirements of EU markets.

However, many enterprises have failed to fully understand the EUDR requirements. These enterprises have petitioned the State management agencies to organise more training programmes to help them better understand the specific requirements of the EUDR, thereby preparing appropriate production plans and supply chains. 

According to Hoàng Thành, Programme Officer at the EU delegation to Việt Nam, to deal with the challenges from the EUDR, Việt Nam needs to have an action plan framework to adapt to.

He said that top priority should be given to establishing a public-private alliance to exchange information and secure data and building a forest and production system that meets the EUDR. Training programmes on the EUDR and technical solutions to support businesses in complying with EU regulations should also be included. 

The EUDR, which came into force on June 29, 2023, mandates that products placed on or exported from the EU market must be traceable, deforestation-free and legally produced. Larger companies importing these commodities into the EU must comply by December 30, 2024, while small and medium-sized enterprises must comply by June 30, 2025.

Trần Quang Bảo, director of the Forestry Department under the Ministry of Agriculture and Rural Development said wood, coffee and rubber industries are the three industries in Việt Nam most affected by the EUDR regulations.

"Thanks to the assistance of domestic and international partners, those three commodity groups have made preparations for EUDR. Along with that, we have specific action plans for every commodity, which are managed by the ministry," he told Việt Nam News. 

"We are still waiting for official regulations. but based on discussions at seminars and draft documents, sectors have done trial research and built data on coffee and forestry to get ready for the regulations."

Bảo said the EUDR implementation is a chance for Việt Nam to affirm the legality and sustainable values of Vietnamese exported products to the EU. 

The EU is a large and important market for Vietnamese farming produce and other goods. In 2023, Việt Nam exported over US$53 billion worth of products to the bloc, with key items including coffee, rubber and wood.

Trade experts believed that Việt Nam's export turnover to the EU could significantly increase if Vietnamese enterprises could better comply with the EUDR regulations. 

Ministry grants licences to four credit rating firms

The Ministry of Finance (MoF) has granted certificates of eligibility for credit rating services in Việt Nam to four companies from January to August, after verifying that they meet all the necessary requirements.

The firms are Saigon Phát Thịnh Ratings JSC (Saigon Ratings), FiinRatings JSC (FiinRatings), Việt Nam Investors Service and Credit Ratings JSC (VIS Rating), and S&I Ratings JSC (S&I Ratings).

The certificates were issued based on the provisions in the Investment Law (2014, 2020) and Decree No. 88/2014/ND-CP, regulating credit rating services.

According to Decree No. 88/2014/ND-CP, enterprises providing credit rating services must obtain a certificate of eligibility for credit rating services from the MoF.

Enterprises that do not register to provide credit rating services are not permitted to use the term 'credit rating' or any other similar terminology in their company name.

Nguyễn Quốc Hùng, Vice Chairman and Secretary General of the Việt Nam Banks Association (VNBA), said that credit rating serves as an effective mechanism to promote transparency and public disclosure in financial market activities. 

This, in turn, helps drive the development of safer and more sustainable money and capital markets.

Banks with high credit ratings enjoy significant advantages, such as easier access to capital, more favourable lending terms, and lower borrowing costs from both domestic and international sources. 

Similarly, enterprises with strong credit ratings can quickly secure bank financing on preferential terms. They also benefit from better pricing and service conditions when transacting with partners domestically and globally. 

Winners of Qualcomm Vietnam Innovation Challenge 2024 announced

Vbee - Conversational AI platform, HSPTek - Anti-static real-time monitoring wearable device, and Met EV -Affordable smart E2W with an AI-power battery swapping solution, have been named as the top three finalists of the 2024 Qualcomm® Vietnam Innovation Challenge (QVIC), with awards of US$100,000, $75,000, and $50,000, respectively.

All participants will join Qualcomm Technologies’ global network, enhancing their industry exposure and opportunities in global tradeshows and customer meetings.

Organised by Qualcomm Technologies Inc, a subsidiary of Qualcomm Incorporated, and supported by the Ministry of Science and Technology, since its launch in 2019, QVIC has aimed to encourage the development of emerging technology ecosystem in Việt Nam.

Utilising Qualcomm Technologies’ cutting-edge mobile platforms and technologies, the programme identifies and nurtures innovative small- and medium-sized companies which are designing products in important technology areas such as AI, 5G, IoT, robotics and drones, smart cities, wearable devices, and multimedia technologies.

Utilising the patent filing incentive of the programme, QVIC startups have filed over 101 patent applications.

Sudeepto Roy, vice president, Engineering, Qualcomm Incorporated, said: "The 2024 programme not only featured the highest number of applications in our programme’s history but also showcased a strong lineup of startups specialising in edge-AI technologies, which account for 70 per cent of our finalists.

“These companies are at the forefront of sectors such as biometric security, robotics, healthcare automation, wearable tech, smart mobility, AI-powered entertainment, retail analytics, multi-camera systems, conversational AI, and sustainable energy solutions.

“Their innovative contributions are propelling Việt Nam's economic growth by creating new industries and job opportunities, ensuring Việt Nam's prominent position on the global stage and its competitive edge in the international market."

Phạm Hồng Quất, director of the ministry’s National Agency for Technology Entrepreneurship and Commercialization Development, said: “After four years of companionship, we are very grateful for the contribution of the QVIC to Việt Nam's innovation ecosystem, especially for creating a favourable environment for Việt Nam's young technology talents to be trained, gain experience and participate in solving global challenges in a new context.”

International furniture, Vietnamese goods fairs open in HCM City

The second Vietnam ASEAN International Furniture & Home Accessories Fair, which opened in HCM City on August 27, aims to help make the city a leading hub for furniture not just in Southeast Asia but Asia.

VIFA ASEAN has 600 booths set up by over 200 exhibitors from Việt Nam and 13 other countries and territories, including mainland China, Hong Kong, the Republic of Korea, the US, Italy, the Netherlands, Thailand, Cambodia, Thailand, the Philippines, Indonesia, India, and Taiwan (China). 

The fair showcases a wide range of products, including furniture, outdoor furniture, handicrafts, home décor, machinery, hardware, tools, and support services.

It will feature an industrial seminar titled ''Green-Eco with Net-Zero'' on topics such as FSC certification and sustainable development in the furniture and wood processing value chain, carbon credits and their role in the green economy and green transition by businesses in the furniture and wood processing industry.

Organised by Liên Minh Company, the VCCI, the Ho Chi Minh City Union of Business Associations, and the Vietnam Association for Building Materials, VIFA ASEAN is being held concurrently with the 16th annual “Vietnamese Typical Goods Fair” until August 30.

Organised by HUBA and the Investment and Trade Promotion Centre of HCM City,  the Vietnamese Typical Goods Fair has 150 exhibitors, almost the same as last year, including most strong brands in HCM City .

Products on display include processed foods, household goods, leather products and footwear,  textiles, pharmaceuticals, cosmetics, handicrafts, and others, HUBA chairman Nguyễn Ngọc Hòa said.

He said the two fairs promise to benefits the business community and underline the status of Vietnamese indoor and outdoor export furniture and other products on the international market. 

Speaking at the opening ceremony of the two events, Nguyễn Văn Dũng, deputy chairman of the city People's Committee, said the Government has issued Decision No.386/Qd-Ttg on developing the domestic market for locally made products in conjunction with the campaign ''Vietnamese people give priority using Vietnamese goods '' in 2021-25.

Its goal is to maintain a market share of 85 per cent for Vietnamese goods in modern distribution channels and over 80 per cent in traditional channels, he said. 

So businesses need to bring to the market quality products at reasonable prices, he said. 

He appreciated the initiative to combine the two shows, and expressed the hope they would be a place for businesses to enhance links and meet potential partners and customers to learn and exchange experiences, helping take more products to the international market.

Liêm said exports of wood and furniture products are back on a growth trajectory after declining last year, with exports reaching US$10.7 billion in the first seven months of the year, a year-on-year increase of 25 per cent. 

While optimistic about a recovery in exports, he also cautioned about challenges such as competition, continuing high shipping costs, stricter requirements related to quality, safety and product origin, and protectionism. 

In this context,  participating in international export fairs presents a golden opportunity for businesses to possibly secure orders and expand their markets, he added.

The events, being held at the Saigon Exhibition and Convention Centre in District 7, will go on August 30. 

Masan reaps success in WinCommerce retail business

Masan's financial results for the second quarter of 2024 show that WinCommerce, its retail arm, continued its sustainable growth trajectory.

The company achieved positive net profit after tax (NPAT) in June, marking a significant milestone for Masan, which had taken over this retail chain in late 2019.

In 2014 Vingroup entered the retail market by acquiring a 70 per cent stake in Ocean Retail Company (owner of Ocean Mart supermarket chain) and renamed it VinMart Supermarket JSC. Vingroup also launched two new brands, VinMart supermarket and VinMart+ convenience stores. However, under Vingroup, the VinMart and VinMart+ chains failed to make profits since their focus was mainly on growth and expansion.

At the end of 2019 Masan acquired VinCommerce (and renamed it WinCommerce) from Vingroup.

In the following years Masan implemented drastic changes in the WinCommerce system through three key strategies: closing inefficient stores, improving the product portfolio and amending pricing policies.

In Q2 2020 Masan completed the acquisition of an additional 12.6 per cent stake in The CrownX (an integrated consumer-retail platform that consolidates Masan Consumer Holdings and WinCommerce) for a total cash value of US$862 million to establish the "Point of Life" offline-to-online ecosystem to better cater to the diverse needs of consumers.

After the transaction, Masan held an 82.6 per cent stake in The CrownX, increasing its holding in WinCommerce to 69.17 per cent.

WinCommerce delivered positive NPAT in June. The increased ownership in WinCommerce has been fruitful for Masan, consolidating the company’s consistent strategy of focusing investment on the consumer-retail business.

WinCommerce (WCM) reported a 9.2 per cent rise in revenues in Q2 to VNĐ7.84 trillion ($314million) across its network, mainly driven by new store formats for WiN (catering to urban shoppers) and WinMart+ Rural, which saw 6.3 per cent and 10.7 per cent like-for-like growth year-on-year.

The company has completed its restructuring and aims to retain its status as Việt Nam’s largest retail chain.

Business expansion is a goal that companies always aim for. When they have enough resources, expansion will help them improve their revenues, profits, brand reputation, and others.

WCM plans to expand its store network while still ensuring profit growth, which is not an easy task for any business.

However, WinCommerce’s management is confident of achieving this since it has specific plans in place.

At 2024 annual general meeting in April, Masan Group’s CEO, Danny Le, shared the development plans for WinCommerce, saying: "We have a clear plan in place to unlock shareholder value for WinCommerce in the medium term. We are not only focused on ensuring growth but also on increasing profits in the next 18 - 24 months.”

To this end, "Network Growth" and "Membership Growth" are WinCommerce’s strategic focuses.

In the second quarter WCM reported EBITDA of VNĐ172 billion ($6.9 million), up 11.1 per cent year-on-year. Excluding the one-off profit from financial product distribution pilot in 2023, the EBITDA increased by 33 per cent.

Also, during the period retail operating profit margins continued to improve, driven by increased sales and negotiations with more banking partners to leverage WCM's extensive retail network across the country as a distribution platform for financial products.

As of June 2024, WCM operated nearly 3,700 WCM stores after net openings of 40 stores since December 2023 as management exercised prudence amid uncertainty in the operating environment and a focus on refining the store model.

WCM expects to speed up new store openings in the second half of 2024.

In the second half of 2024 WCM will continue to focus on improving profitability and achieving breakeven by accelerating LFL growth to 8-9 per cent year-on-year while enhancing the pace of opening to achieve ~100 new stores per quarter.

It will continue to strengthen its position in rural areas with the WinMart+ Rural model.

The WiN Membership programme will be optimised to create value for Masan's ecosystem and partner brands.

WCM expects to achieve net revenues of VNĐ32.5-34 trillion ($1.3-1.36 billion) this year, a year-on-year increase of 8-13-per cent.

The growth is mainly driven by accelerated LFL growth, store network expansion and positive results from new stores.

According to economists, most retail businesses view the end of the year as a prime time for consumption, and this period can contribute 30-40 per cent of annual sales.With positive results in the first half of the year and a vibrant retail trend at the end of the year, WCM is poised to achieve impressive results and continue to "bring money to Masan."

Tax watchdog wants to develop a portal to manage individuals and households doing e-commerce business

The General Department of Taxation is working on developing an e-portal to manage individuals and business households which run e-commerce businesses.

It wants to create favourable conditions for them in terms of tax registration, declaration and payments.

Deputy Director Mai Sơn said that the tax management of e-commerce is currently applied along the same lines as the methods as for traditional business, leading to a number of problems.

He said that the e-portal must be developed with the spirit of supporting tax-payers to fulfil all their tax obligations in the most convenient way.

Amendments to the existing regulations will be raised to enhance the efficiency of tax management on e-commerce business.

The tax watchdog has put e-commerce business under scrutiny.

In the first six months of this year, a sum worth nearly VNĐ10 trillion (US$394 million) in tax was collected from businesses and individuals doing e-commerce business, up VNĐ3.5 trillion over the same period last year.

More than 4,560 cases were fined, collecting a total of VNĐ297 billion.

The General Department of Taxation was sharing details with the Ministry of Industry and Trade about 929 e-commerce platforms, with 53,000 sellers.

In another move, the Ministry of Finance has proposed that individuals and businesses households with tax debts might be banned from leaving the country.

Việt Nam must enhance product quality and governance to boost exports to Japan: seminar

Vietnamese businesses need to improve the quality of their products and better corporate governance to promote exports to Japan which has high demands for Vietnamese garments and textiles, fine arts, farm produce and food, among others, experts said at a seminar in HCM City on Monday.

At the event, Head of the Việt Nam Trade Office's Branch in Osaka Quyền Thị Thúy Hà said there is a complementary nature to the two economies, with Japan being the third largest export market, and fourth largest trading partner of Việt Nam.

The combination of Việt Nam’s production strengths, and Japan’s technology and quality management, could bring practical benefits to both countries, she said, elaborating Vietnamese garments and textiles could capitalise on the rules of origin to enjoy tax preferences in Japan, while the wood and fine art industry boasts huge opportunities in the market as consumers are willing to pay high prices for unique products with artistic values.

According to Hà, the Japanese market has been hungry for agricultural products from Việt Nam such as coffee, cashew nuts, tropical fruits and frozen fruits and vegetables.

There is ample room for Việt Nam to boost its shipments to the East Asian country but businesses must adapt to stringent requirements regarding product quality and sustainability from this market.

She suggested Vietnamese enterprises study new techniques to better their production processes, from cultivation, harvest, preservation to packaging.

Along with the traditional trade form, they should tap e-commerce to increase exports and improve revenue since more Japanese consumers have shifted to online shopping, Hà said.

General Director of AEON TOPVALU Vietnam Co Ltd, Shiotani Yuichiro, said that Vietnamese foods have been favoured in the Japanese market, adding Vietnamese firms could increase their exports to Japan and even other markets through AEON’s distribution system.

Standout taste, product quality, sound packaging and sustainability, he underlined, are among the keys that help Vietnamese goods break into the market. AEON TOPVALU has provided regular support, and guidance on techniques and quality standards for Vietnamese small- and medium-sized so that they could adjust their production, and better meet the requirements of the market, he said.

According to Director of the Investment and Trade Promotion Centre of HCM City Trần Phú Lữ, Japan has been a leading economic-trade partner of Việt Nam in the recent past. They have signed various bilateral, and multilateral free trade agreements such as the ASEAN – Japan Comprehensive Economic Partnership, Việt Nam – Japan Economic Partnership Agreement, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which have created important cooperation frameworks to promote trade, investment and business ties between the two nations.

Statistics from the General Department of Việt Nam Customs showed that two-way trade during the January – July period was estimated at US$25.9 billion, up 4 per cent from the same time last year, with Việt Nam’s export revenue reaching around $13.5 billion, rising 2.8 per cent year-on-year. 

Indian, Vietnamese companies point to huge untapped potential for co-operation at seminar

The potential for India and Việt Nam to collaborate in textiles, food, pharmaceuticals, and various other sectors is immense, a seminar heard in HCM City on Monday.

Madan Mohan Sethi, the Indian consul general in the city, told the business and investment seminar between India and Việt Nam that the two countries have maintained a good relationship throughout history, aided by their rich cultural heritages and burgeoning economies.

He talked about some of the sectors that businesses from the two sides could promote.

“Let us first consider the textile industry, a sector where both our nations have a rich heritage and significant capabilities. India, with its diverse array of textile traditions and advanced manufacturing capabilities, stands as a global leader in textile production.

“Việt Nam has emerged as a key player in the global textile supply chain, known for its efficiency and competitive edge. By synergising India’s innovation and Việt Nam’s cost-effectiveness, we can create a powerful alliance that leverages the strengths of both countries.

“This collaboration can drive technological advancements, improve production efficiencies, and open up new markets.

“Together, we can sustainably set new standards and meet the growing global demand for high-quality textiles.”

Referring to the food industry, he said the countries possess a rich tapestry of culinary traditions and agricultural resources.

“India’s vast agricultural base and expertise in food processing can complement Việt Nam’s burgeoning food production sector.

“We can enhance food security, promote sustainable practices, and introduce diverse and nutritious food products to international markets by partnering.”

He said the two countries’ combined efforts could lead to innovation in food technology, improved supply chain management and increased exports.

“In general, the potential for India and Việt Nam to collaborate in textiles, food or logistics, pharmaceuticals, and many other sectors is immense. By forging strong partnerships and leveraging our respective strengths, we can create a mutually beneficial relationship that drives growth, innovation, and prosperity.”

Trần Ngọc Liêm, general director of the Việt Nam Chamber of Commerce and Industry’s HCM City branch, said India is among the top 10 trading partners of Việt Nam, which in turn is an important country in India's “Look East policy” as reflected in the multi-faceted co-operation between the two countries in recent years.

Bilateral trade reached US$7.18 billion in the first half of the year, up 2 per cent year-on-year, with Việt Nam’s exports being worth $4.37 billion.

Việt Nam’s key export included phones and accessories, computers, electronic equipment, machinery and mechanical appliances, chemicals and coffee, while iron and steel and pharmaceuticals were among its key imports, he said.

“In general, the structure of imports and exports between Việt Nam and India is balanced and complementary with each other.”

The two countries target reaching $20 billion soon.

“To achieve this goal, Việt Nam and India need to further strengthen co-operation in fields where the two sides have strengths and competitive advantages and complement each other such as minerals, chemicals, textiles, footwear, energy, healthcare - pharmaceuticals, supporting industries, machinery and equipment, auto parts, agricultural machinery, and information technology,” Liêm said.

In terms of investment, he said as of April 2024 Indian firms had invested $1.02 billion in 402 projects to ranking 26th out of 141 countries and territories investing in Việt Nam.

India's investments are mainly in biotechnology, automation, new materials, and clean energy.

Organised by the consulate, the seminar was attended by government officials from India’s Punjab state and 25 Indian companies in agriculture - food, construction materials, chemicals, pharmaceuticals, general trading, mechanical engineering, garment, and information technology.

Delegates also spoke about Punjab’s potential and India’s strengths on which investors could captitalise.

There was a B2B interaction between more than 100 businesses from the two sides, offering opportunities for them to find new partners and strengthen existing partnerships.

Linkage with foreign firms needed to develop Việt Nam's supporting industry

Linkage with multinational corporations is the shortest way for Vietnamese supporting industry enterprises to participate in the global supply chain, according to economic experts.

Global production supply chains are led by multinational corporations and domestic enterprises must cooperate with those companies to join the chains, the experts said. 

According to the Việt Nam Electronic Industry Association (VEIA), Việt Nam has welcomed many foreign direct investment (FDI) enterprises requesting support in connecting and building supply chains, including leading enterprises from Europe, America or a series of Apple's tier 1 suppliers.

The expected chances will help Vietnamese enterprises develop and become a member of the global value chain with hi-tech products having high added value.

However, Phạm Tuấn Anh, deputy director of the Department of Industry (MoIT), said that Vietnamese supporting industry enterprises still found it difficult to enter global supply chains. The connection between FDI enterprises and domestic enterprises was still loose. 

In addition the competitiveness, organisational and management capacity and technological level of most Vietnamese enterprises were still low to meet the strict requirements and standards of multinational corporations.

To participate more deeply in the global supply chain, Việt Nam's supporting industry needed to promote linkages and the stability of the supply chain for Việt Nam's key manufacturing industries such as textiles, footwear and electronics. 

Along with that, it iwas necessary to perfect the system of institutions, policies and legal documents as a foundation for industrial development.

The Ministry of Industry and Trade also stated that the level of links and business cooperation between enterprises in the same industry and between different industries was still limited. 

The tie-ups between FDI enterprises and domestic enterprises were still slow, so it had not promoted the development of management skills, technology transfer and the formation of material supply chains. The participation of domestic enterprises in global production and supply chains had not been enhanced.

So, the cooperation with FDI enterprises, large domestic and foreign industrial production enterprises and international organisations should be maintained, to promote links with domestic enterprises and improve the capacity of domestic suppliers. Those would create conditions for Vietnamese supporting industry enterprises to participate in the global value chain. 

Trương Thị Chí Bình, chairwoman of the Việt Nam Supporting Industry Association, said now was the time to have more investment in the domestic supporting industry sector. When working with large foreign partners, they set very high requirements for production lines. 

However, this investment for small and medium enterprises was still extremely difficult, they needed support in terms of loan interest rates and it was the biggest concern for the enterprises. 

Bình said localities could have support in investment and interest rates for the businesses producing supporting industrial products, instead of just waiting for the Government's policies.

In addition, she said the enterprises needed to negotiate with FDI companies to prepare for production of supporting industry products. That could avoid the situation that FDI companies entering Việt Nam together with their available supply chain.

The businesses also needed to promote the application of digital technology in production to improve productivity and competitiveness. 

It was necessary to strengthen the connection of domestic enterprises with the FDI firms and the global market to take opportunities from free trade agreements, bringing domestic supporting industry enterprises deeper into the global value chain.

The MoIT report shows that a number of domestic supporting industry enterprises have improved their production productivity and efficiency and cut costs to help improve competitiveness. They become direct suppliers to manufacturers and assemblers of finished products and multinational corporations, participating in regional and global production networks and value chains.

The domestic supporting industry has been developing to supply raw materials for domestic production, leading to increase in localisation rate of many manufacturing industries such as the textile and footwear industry (45-50 per cent) and mechanical engineering (more than 30 per cent).

However, the ministry has also found that the effectiveness of implementing incentive policies is still limited because the production capacity of Vietnamese enterprises has not met what can be quite strict conditions in order to enjoy incentive policies. 

A number of supporting industry enterprises have not paid attention to preferential and support policies, or have limited human resources, so they have no specialised department to update preferential policies.

HCM City seeks to restructure state-owned enterprises

HCM City plans to restructure all state-owned enterprises (SOEs) after 2025 to form and develop leading economic conglomerates.

Municipal People's Committee Chairman Phan Văn Mãi said the restructuring of SOEs, including companies with state capital, would create a new driving force for these businesses to renew their growth models and enhance growth quality to improve economic competitiveness.

“SOEs are expected to be market leaders, playing a pivotal role in the city’s socio-economic development,” he said.

The government may group existing SOEs into categories such as infrastructure, services, and technology, according to Mãi.

For instance, the category of infrastructure includes Saigon Real Estate Corporation (RESCO), Saigon Construction Company, and Saigon Industry Corporation, while Saigontourist Holding Company and Benthanh Group belong to the services category.

The city now has 46 SOEs, including 22 public service companies.

According to experts, the city needs four to five public service companies instead of having one in each district.

Alongside the processes of equitisation and divestment, SOEs should be reorganised to invest in resources and focus on mechanisms and personnel to create strong economic units.

These units would serve as management tools in sectors that need the presence of State agencies.

For the areas where the private sector can perform effectively, it is advisable to allow private enterprises to take on those roles.

The number of SOEs in HCM City is higher than in other localities in the country, significantly contributing to the city's development.

Lê Thị Huỳnh Mai, director of the city’s HCMC Department of Planning and Investment, said it was essential to strongly develop SOEs. However, the city needed to build a clear roadmap and have specific policies.

Leaders of the city’s Department of Finance also highly appreciated the reorganisation of SOEs to help the city’s authorities operate and manage economic and social development.

In August 2022, the municipal People's Committee issued Decision 2916 on issuing a plan for reorganising SOEs under the management of the municipal People’s Committee in the 2022-25 period.

The plan aims to effectively enhance business and production activities, improve competitiveness and profit margin, and increase revenue for the city’s budget.

Under the plan, the city will address issues of scattered and non-core investments, select some enterprises in the post-equitisation period that meet the necessary conditions for stock registration and listing on regional and global stock markets, and inspect the current status of each enterprise.

Trần Anh Tuấn, head of the city’s Enterprise Management and Innovation Board, said up to now, the city’s SOEs had submitted their restructuring plans. 

Việt Nam’s manufacturing growth hinges on AI for boosting productivity

While digital transformation is a priority for manufacturers, around 30 to 40 per cent of global and Asia Pacific (APAC) respondents recognise achieving it is fraught with obstacles.

Those barriers include the cost and availability of labour, scaling technology solutions and the convergence of information technology and operational technology (IT/OT).

The information was released at the findings of 2024 Manufacturing Vision Study from Zebra Technologies Corporation, a leading digital solution provider enabling businesses to intelligently connect data, assets and people.

The study showed that globally, 61 per cent of manufacturers expect AI to drive growth by 2029, up from 41 per cent in 2024.

In APAC, 68 per cent of manufacturers expect AI to drive growth by 2029, increasing from 46 per cent in 2024. This surge in AI adoption, combined with 92 per cent global and 87 per cent of APAC survey respondents prioritising digital transformation, underscores manufacturers’ intent to improve data management and leverage new technologies that enhance visibility and quality throughout the manufacturing process. 

In Việt Nam, the Government has consistently set ambitious targets for the manufacturing sector, with it expected to contribute 30 per cent to the overall GDP.

The sector’s contribution to GDP is expected to grow by more than 8.5 per cent per annum, while labour productivity is forecast to grow 7.5 per cent per annum. To achieve these goals, Vietnamese businesses must embrace the need for reskilling and retraining their workforce to stay competitive.

Adopting artificial intelligence (AI) and other advanced technologies is crucial for enhancing productivity, improving quality and streamlining operations.

Christanto Suryadarma, Sales Vice President for Southeast Asia (SEA), South Korea and Channel APJeC, Zebra Technologies said foreign investors had increasingly been investing in Việt Nam. In 2023, the manufacturing sector alone attracted US$20 billion in foreign direct investment (FDI), which represents over 60 per cent of the total FDI in the country.

This underscored the significant development potential of Việt Nam’s manufacturing industry. The country has successfully established a stable and sustainable manufacturing base, encompassing sectors such as textiles, footwear, electronics, machinery and food processing. Việt Nam had positioned itself as a major manufacturing hub in Asia, particularly in electronics and textiles, he added.

He suggested that to sustain this growth, Vietnamese businesses needed to focus on retraining and equipping their workforce with new skills to stay competitive. Embracing AI and advanced technologies would be crucial for enhancing productivity, improving quality, and optimising operations.

He also highlighted that digitalising manufacturing processes, implementing smart manufacturing technologies and modernising and automating production were key factors driving economic advantage.

Currently, many manufacturing sectors in Việt Nam were rapidly advancing in digitalisation and adopting cutting-edge technologies to optimise their operations.

While ambitious goals are important, they can be achieved by starting on a smaller scale, making the implementation process more manageable, according to Suryadarma.

According to the survey, overall, the quest for quality has intensified as manufacturers across segments must do more with fewer resources. The manufacturing leaders say today’s most significant quality management issues are real-time visibility keeping up with new standards and regulations, integrating data and maintaining traceability.

Visibility is the first step to transformation – through adopting AI and other new technologies. This enables manufacturers to leverage data more effectively to identify, react and prioritise problems and projects to deliver incremental efficiencies across the manufacturing process, ensuring the greatest impact upfront.

“Manufacturers struggle with using their data effectively so they recognise they must adopt AI and other digital technology solutions to create an agile, efficient manufacturing environment,” said Christanto Suryadarma. “Zebra helps Vietnamese manufacturers work with technology in new ways to automate and augment workflows, to achieve a well-connected plant floor where people and technology collaborate at scale.”

Zebra empowers manufacturers with strategic insights and technologies to advance the connected factory by boosting visibility, optimising quality and augmenting their workforces.

“Technological innovations, such as machine vision and deep learning OCR solutions, are opening doors for manufacturers to excel in an era marked by rapid technological advancement and growing requirements for speed, safety, and precision,” said Tan Aik Jin, APAC Solutions Lead for Manufacturing and Singapore ZEC, Zebra Technologies.

“Beyond just adopting technology, businesses need to be prepared and equipped to continually transcend current capabilities. The future of manufacturing demands a symbiotic relationship between technology and human expertise to redefine the essence of manufacturing.” 

Dragon Capital sells over three million Hoa Sen shares

Despite the recovery of the steel industry, the foreign fund Dragon Capital has significantly divested a large number of Hoa Sen Group’s shares (HSG) since mid-March.

In an announcement on the Hồ Chí Minh Stock Exchange (HoSE), Dragon Capital disclosed it was selling over 3.17 million HSG shares on August 16, reducing its stake from 50.7 million shares to 47.5 million shares.

Despite Hoa Sen's recent strong financial performance, the foreign fund has steadily divested from the company. Its net sales of HSG shares totalled over 28 million units from March 15 to August 16, decreasing their ownership from 12.3 per cent to 7.71 per cent.

In the third quarter of fiscal year 2023-2024, Hoa Sen saw a revenue increase of over 25 per cent to VNĐ10.84 trillion (US$434.6 million) and a profit after tax of VNĐ273 billion, nearly 20 times higher than before.

For the first nine months of the fiscal year, the steel producer’s revenue rose by 24 per cent to more than VNĐ29.1 trillion, with a profit after tax of VNĐ696 billion compared to a VNĐ410 billion loss in the same period last year.

The steel industry still faces several challenges.

In a recent industry report, Vietcombank Securities (VCBS) said that steel prices might struggle to rise due to sluggish demand in China, where the housing market remains tepid.

A significant hurdle arose from the export sector. While hot-rolled coil (HRC) exports surged in 2023 and in the first quarter of 2024, they declined in Q2.

That was mainly due to domestic production recovery in import markets and increased protectionism for HRC in the European Union (EU).

The bloc’s introduction of the Carbon Border Adjustment Mechanism (CBAM), applying carbon taxes to exports, is scheduled to start in January 2026, posing a challenge for local producers requiring eco-friendly investments for continued EU exports.

Meanwhile, the EU's anti-dumping probe on Vietnamese HRC steel and similar investigations could also hamper export volumes.

On August 8, the European Commission (EC) initiated an anti-dumping investigation on HRC coming from Egypt, India, Japan and Việt Nam.

Chinese ministry to work on upgrading economic, trade cooperation with Việt Nam

China's Ministry of Commerce (MOC) will take a series of measures to improve and upgrade the Vietnam-China economic and trade cooperation, its spokesperson He Yadong has told a regular press conference.

Responding to a question about the nations' economic and trade relations as well as measures they could take to further improve and enhance such ties in the future, particularly in light of the recent state visit to China by Vietnamese Party General Secretary and State President Tô Lâm, He said trade between the nations has grown rapidly over the recent years, with noteworthy outcomes recorded in bilateral investment cooperation.

According to him, China is currently Việt Nam’s biggest trade partner and the largest export market of Vietnamese farm produce. Vietnamese durian and dragon fruit are favoured by Chinese consumers, with China’s import of these fruit from the Southeast Asian nation accounting for one-fifth of its total from the ASEAN region.

Meanwhile, Việt Nam is an important investment destination for China. Chinese companies have channeled their capital into wind power and solar energy projects in Việt Nam, manifesting the countries’ green economic collaboration.

He affirmed that in the time to come, the ministry will seriously implement important consensus reached between high-ranking leaders of the two Parties and the two countries. It will also take the upcoming 75th anniversary of the nations’ diplomatic relations as an opportunity to introduce various measures aimed at improving and upgrading the bilateral economic and trade cooperation.

The official said that the ministry will support the sides’ business communities in capitalising on trade platforms such as the Chinese International Import Expo, Canton Fair, and China-ASEAN Expo to broaden their transactions of high quality agricultural and industrial products.

It will work on creating a new driving force for bilateral investment cooperation and stepping up win-win collaboration in the digital economy and green development. A boost to the sides’ supply chain cooperation is also necessary, with the ministry planning assistance for joint work within their industrial parks and between their localities as well as promoting smooth trade and industrial connectivity.

The ministry also eyes stronger regional economic integration through accelerating negotiations for the ASEAN-China Free Trade Area 3.0 upgrade and further leveraging benefits brought about by the Regional Comprehensive Economic Partnership (RCEP). 

EVN, TKV work to ensure adequate coal supply for electricity production

Việt Nam Electricity (EVN) and the Việt Nam National Coal and Mineral Industries Holding Corporation Limited (TKV) worked on Thursday on solutions to ensure an adequate supply of coal for electricity production in the remaining months of this year.

Coal-fired power plants are expected to produce 30.338 billion kWh of energy between August and December.

EVN urged TKV to ensure that smooth coal supplies reach coal-fired power plants in every scenario, stressing the important role of coal-fired power plants in ensuring the national supply of electricity.

In response, TKV General Director Đặng Thanh Hải asked EVN and coal-fired power plants to have their plans made early for their coal supply needs, so that the two sides can sign contracts for next year.

The electricity supply was maintained in the first seven months of this year, with more than 180 billion kWh produced in the period, up by 11.63 per cent. Of that, coal-fired power plants supplied more than half, 96.63 billion kWh

TKV and Đông Bắc Corporation supplied a total of 15.22 million tonnes of coal for EVN in the period. 

HCM City seminar discusses AI trends in marketing

Valuable insights into AI trends, tools and best practices in the marketing sector were shared at the 2024 MMA ALC Summit, the Asia-Pacific’s largest AI in marketing event, held in HCM City on Thursday.

Hosted by MMA Global and aimed at accelerating the adoption of AI-driven marketing strategies, its theme was “The AI-Powered Marketing Revolution.” 

It also sought to equip Vietnamese and APAC marketers and businesses with the necessary tools and insights to thrive in a competitive global environment.

It was attended by over 700 top marketers, business leaders, AI experts, and renowned speakers, and supported by 30 partner brands.

Exclusive keynotes, interactive workshops, AI exhibition experiences, and valuable discussions helped share deep insights into the future of AI in marketing.

Rohit Dadwal, CEO of MMA Global, APAC, said: “Việt Nam was chosen as the host location due to its rapidly growing digital economy, youthful and tech-savvy population, and the increasing importance of the market in the APAC region.

“We see this as an opportunity for Việt Nam to take a leadership role in the regional marketing industry, fostering innovation and driving economic growth.”

Việt Nam has made impressive strides in integrating AI into marketing strategies, particularly in recent years, he said.

While its pace of adoption could vary compared to some other APAC countries, it is catching up rapidly, he said.

Nevertheless, there are still challenges such as the need for more specialised talent and digital infrastructure, he said.

Many other speakers stressed the importance of AI in modern life.

Nguyễn Minh Quân, head of Samsung Product Marketing, said 59 per cent of Gen Z workers want to use AI to maximise productivity.

Besides, 76 per cent of them beleive tablets shoud be smarter with AI to become helpful, he said.

AI is undoubtedly transforming the marketing industry, automating tasks and providing insights that were previously unimaginable.

While it is true that AI may replace certain roles, particularly those that involve repetitive or data-intensive tasks, it is important to recognise that AI also creates new opportunities, Dadwal said .

The human elements of creativity, strategic thinking and emotional intelligence remain irreplaceable, he said.

Marketers could prepare themselves by upskilling in areas where AI excels, such as data analysis and machine learning, while also honing their unique human strengths, and embracing a mindset of continuous learning and adaptability would be crucial, he said.

Understanding how to collaborate effectively with AI tools would allow marketers to enhance their capabilities and deliver more personalised, impactful campaigns, he added.

This is the first time in Việt Nam that MMA Global showcased the achievements of the ALC, specialised forums where industry leaders, academics and practitioners collaborated to address challenges and opportunities in AI-driven marketing. 

With over 800 member-companies globally and 16 regional offices across continents, the US-based MMA Global brings together the full ecosystem of marketers, martech and media companies working collaboratively to define the future of marketing.

Present in Việt Nam since 2012, MMA Global has organised leading industry events, fostering collaboration between domestic and foreign businesses and positioning Việt Nam at the forefront of the latest trends.

Vietnamese textile industry could benefit from disruptions in Bangladesh, but long-term strategies remain crucial

Bangladesh's ongoing political instability has led to widespread disruptions in the country’s textile industry, which contributes nearly 90 per cent of its export turnover.

According to the Việt Nam Textile and Apparel Association (Vitas), this turmoil could prompt international buyers to consider shifting their orders to other countries, potentially offering certain advantages to Vietnamese enterprises.

Since the beginning of August, a series of protests and violent incidents have severely impacted Bangladesh's production activities, forcing many textile factories to close temporarily.

The Bangladesh Textile Mills Association, citing the local Business Standard, reported that all member factories were shut down for three days, following a government-mandated holiday. As a result, many Bangladeshi textile exporters have witnessed a 25 to 40 per cent decline in orders.

The reduction in orders is not solely due to internal conflicts, but also stems from decreased demand in major markets such as Western Europe and Russia, where inflation has curtailed consumer spending. Bangladesh, the world's second-largest textile exporter after China, faces additional challenges as it attempts to maintain its market share.

Approximately 80 per cent of Bangladesh's textile exports are destined for North America and the European Union. The country’s primary exports include garments for leading European fashion brands such as H&M and Zara. However, the ongoing political unrest and rising labour costs due to demands for higher wages are undermining Bangladesh's competitive advantage in cheap labour.

In this context, Vitas suggests that Vietnamese textile enterprises may have opportunities to receive new orders, particularly as Bangladesh’s production capacity is expected to decline during the peak season for winter clothing. Buyers may consider shifting their orders to other countries, including Việt Nam, to compensate for the shortfall in Bangladesh. Additionally, political instability may erode customer confidence in Bangladesh's production reliability.

However, industry experts caution that a massive order shift from Bangladesh to Việt Nam is unlikely. The extent of any shift will depend on various factors, including the nature of the orders and the preferences of international buyers. Bangladesh continues to enjoy significant cost advantages, including low labour costs, favourable interest rates and duty-free access to EU markets. Furthermore, the Bangladeshi government provides subsidies for energy costs to bolster exports.

Despite the potential short-term benefits, Vietnamese enterprises are advised to focus on enhancing their competitiveness and pursuing long-term strategies. Unlike Bangladesh, which primarily relies on processing orders for foreign brands and competes on low labour costs, Việt Nam aims to develop a textile industry with higher added value, including fashion and design.

Phạm Văn Việt, Chairman of the Board of Directors at Việt Thắng Jean Co., Ltd., and Vice Chairman of the HCM City Association of Garment, Textile, Embroidery and Knitting, noted that while disruptions in Bangladesh could theoretically benefit Việt Nam, the country's primary goal is not merely to receive additional processing orders. Việt Nam's textile industry is increasingly investing in automation, technology and research and development to create its own brands and target higher market segments.

Before the unrest in Bangladesh, Việt Nam's textile exports were already showing a strong recovery.

In July alone, export turnover reached nearly US$4.3 billion and the cumulative export value for the first seven months of the year was US$23.9 billion, up 5.9 per cent year-on-year. The industry is optimistic about the coming months, with key export markets such as the US, Japan, South Korea and China showing strong growth. The target of US$44 billion in textile exports for this year is within reach and if favourable conditions continue, the figure could rise to US$46 billion.

Most Vietnamese enterprises have secured orders for production through the end of the year, with some already negotiating contracts for the first half of 2025. 

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