The regulations cover business conditions, distribution systems and gasoline trading.

The inspection teams of the Ministry of Industry of Trade will check the four fuel wholesalers including Xuyen Viet Oil Travel and Transport Trading Company in 465-467 Hai Ba Trung Street, Ward 8, District 3, Ho Chi Minh City; Hung Phat Production and Trading Company in 73 Le Loi Street, Hai Dinh Ward, Dong Hoi City, Quang Binh Province; Thien Minh Duc Group in 287 Ngo Duc Ke Street, Vinh Tan Ward, Vinh City, Nghe An Province and Hai Ha Waterway Transport Company in 132, Diem Dien Town, Thai Thuy District, Thai Binh Province.

According to the Ministry of Finance, by the end of July 2023, the total balance of the fuel price stabilization fund was more than VND7,438 billion (US$313 million), increasing 1.8 times over the end of 2022 and reaching the highest level from the first quarter of 2021 up to now.

Therefore, since the beginning of 2023, the Ministry of Industry and Trade and the Ministry of Finance have stopped requiring businesses from contributing to the price subsidization fund to support price control and price surge limitation.

Exports forecast hopefully in last months of the year

Exports forecast for the last six months of the year indicate that there are still some groups of industries that have the ability to accelerate and achieve their target.

Exports forecast for the last six months of the year indicate that there are still some groups of industries that have the ability to accelerate and achieve their target. However, this may not be the case where many other industries are concerned, with a bleaker picture emerging day by day.

In the agricultural sector, fruit and vegetable export turnover has a growth rate of more than 80 percent. Export turnover increased sharply in the first six months of the year, reaching US$ 1 bln, an unprecedented record in the more than 30-year history of this sector. This result helped the entire industry reach a target of nearly US$ 2.8 bln, up 64 percent over the same period last year.

Currently, China accounts for 63.5 percent of total fruit and vegetable exports froeên, General Secretary of the Vietnam Fruit and Vegetable Association, said that at the beginning of the year the whole industry had forecast that the export figures this year would reach around US$ 4 bln. With the current strong growth momentum, US$ 5 bln is now in reach, or may even surpass the figure.

The fruit that contributed the most to this success was durian which was exported to China. Durian exports from the beginning of the year to now have continuously been increasing. In May alone, durian exports reached US$ 332 mln, ten times higher than in the previous month, while in June durian exports reached around US$ 350 mln.

However, Vietnamese durian is facing some difficulties because the number of planting areas and packing facilities is still small, so it is difficult to export all of the harvested durian. In the future, the turnover can be more if more durian can be exported. Currently, China spends about US$ 4 bln each year to import durian.

Previously, Thailand accounted for 90 percent of the market share, but now Vietnam is catching up very quickly. It is forecast that this year the durian export turnover to China will be about US$ 1 bln to US$ 1.2 bln. In 2024 Vietnam can rival Thailand for the Chinese market.

Another agricultural product that has also yielded positive results is rice. In the first six months of the year, Vietnam exported 4.27 million tons of rice valued at US$ 2.3 bln, up 22.2 percent in volume and 34.7 percent in value over the same period in 2022. The average export price of rice is estimated at US$ 539 per ton, up 10.2 percent over the same period in 2022.

In the coming months, it is expected that rice exports will increase because the output in many rice-producing countries in Asia is at risk of falling due to the impact of the El Nino factor which will boost demand as well as increase rice prices in the international market. It is highly likely that rice exports this year will bring in a turnover of over US$ 4 bln with an output of about 8 million tons, an increase of 1 million tons compared to 2022.

Vietnam is likely to rank at third place in the world in rice exports this year, behind India which records 22.5 million tons, and Thailand which records 8.5 million tons, totally accounting for 12.7 percent of global rice trade.

Currently, the seafood industry is going through a bleak phase. The total seafood export turnover in the first six months of 2023 reached US$ 4.13 bln, down 27.4 percent over the same period in 2022, reaching only 41.5 percent of the target plan. The main reason is the increase in inventory, which reduces the demand for consumption and imports in markets. In addition, inflation in many countries around the world, especially in those that are the main export markets of Vietnam for seafood exports such as the US, EU, and Japan is also strongly affecting this industry.

However, positive signs have also begun to appear in some key products like pangasius exports, where the decrease compared to the previous month to some markets is narrowing. Specifically, pangasius export turnover to China and Hong Kong in April decreased by 66 percent, in May it decreased by 30 percent, and in June it decreased by 15 percent compared to the same period in 2022. This narrowing of the gap can be considered as good news for the Pangasius export industry in Vietnam.

Similarly, shrimp exports are hopeful to see some success in the US and Chinese markets. In June this year, shrimp exports to the US fell by 23 percent, the lowest decline since the beginning of the year. The value of Vietnamese shrimp exports to the US in June reached around US$ 71 mln, the highest since the beginning of this year. Expectations of low shrimp prices in the US have created a bottom, and shrimp consumption for the year-end has increased. June is also the first month since the beginning of this year that shrimp exports to China recorded an increase over the same period last year, up by 19 percent to touch US$ 59 mln.

Mr. Truong Dinh Hoe, General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), said that he hopes there will be many positive signs at the end of the year. Mr. Hoe believes that the market has been too gloomy lately, and prices have also decreased with inventories also decreasing, so new demand will be gradually established in the last months of the year. However, regarding the whole year’s turnover, the seafood industry is showing many signs of completing the target of US$ 10 bln for this year.

Mr. Pham Xuan Hong, Chairman of the Ho Chi Minh City Textile, Embroidery and Knitting Association, said that entering the third quarter businesses have begun to show signs of improvement. In the previous months, the business was reduced by about 30 percent, now the number has decreased to about 25 percent. Most businesses have small orders with reduced unit prices but are still making efforts to maintain operations and have jobs for employees and retain customers. Mr. Hong believes that the difficulty may last until the end of this year, but the export situation will improve gradually in months to come.

All businesses also expect support, especially in terms of capital resources, while trying to find opportunities and struggling with endless difficulties. In a recent meeting with the press on the situation of the industry, the leaders of the Vietnam Textile and Apparel Association said that although the State Bank of Vietnam has reduced the operating interest rate four times, due to high deposit interest rates from the end of 2022, the loan interest is still at a high level. Besides, businesses still cannot access the support package of VND 40,000 bln with a 2 percent interest rate reduction.

Ministry proposes to stabilize rice prices domestically

In its yesterday dispatch to people's committees in provinces and cities, the Ministry of Industry and Trade proposed to ensure the stabilization of rice prices and the domestic rice market.

While the Ministry of Agriculture and Rural Development and rice exporters are delighted because the world's export price of rice has increased unprecedentedly, the Ministry of Industry and Trade is concerned about the fierce competition between businesses to buy rice which can lead to local imbalance between supply and demand, market disturbance, and unreasonable increase in domestic prices. The Ministry had more grounded concerns.

According to Deputy Minister of Industry and Trade Do Thang Hai, currently, the domestic rice market is tending to go up slightly. Therefore, to ensure market stabilization and the rice supply as well as control the increase in domestic food prices, the Ministry of Industry and Trade asked localities to urge businesses to participate in the local market stabilization program. Moreover, businesses must have a plan for rice sources to make sure enough supply for the market from now until the end of 2023 and the Lunar New Year 2023 with affordable prices.

According to the Ministry of Industry and Trade’s proposal, rice exporting enterprises need to maintain the amount of rice and rice in reserve to stabilize the market according to regulations. Businesses were required to be ready to supply to the market at any time. Under the Ministry’s request, enterprises must balance between exports and local demand avoiding massive purchases, causing market instability and unreasonable increase in domestic rice prices.

Deputy Minister of Agriculture and Rural Development Hoang Trung affirmed that the rising world rice price offered a golden opportunity for Vietnamese businesses and farmers. The Deputy Minister said that the Ministry of Agriculture and Rural Development and the Department of Crop Production have directed localities in the Mekong Delta to grow additional 50,000 hectares of autumn-winter rice crops to increase rice export output and at the same time enhance food security.

Upon reporter’s question how Vietnam will do to grab the opportunity because according to the US forecast, the world's rice demand is very high due to concerns about the influence of El Nino while some countries such as India, Russia, UAE have had export bans to ensure food security, Deputy Minister of Agriculture and Rural Development Hoang Trung said the Ministry of Agriculture and Rural Development has determined to comply with the Prime Minister’s Official Dispatch No. 610 issued on July 3, 2023, on enhancing rice production and export.

In his telegram, the Prime Minister directed the Ministry of Agriculture and Rural Development to organize rice production well to ensure output supply, because this is a prerequisite for export, helping businesses achieve benefit while negotiating with partners. The Ministry of Agriculture and Rural Development will also submit to the Prime Minister for promulgation of a new directive on strengthening rice exports in the new situation.

As the export price of rice increases, the rice purchase price of enterprises and farmers will certainly increase, ensuring more profits for rice growers. In the past few days, the price of IR50404 rice has increased to VND 6,500 per kg while OM 5451 rice surged to VND6,800 per kg and Dai fragrant rice to VND6,950 a kg.

To maintain stability, the Ministry of Agriculture and Rural Development encourages chain linkage between businesses with farmers, cooperatives and cooperative groups as well as the building of material areas to create sustainable raw material areas. steady, steady. For example, when liking with cooperatives, the Loc Troi Group calculated how much output and how much rice in its warehouse, how much rice is for export and then it signed export contracts upon their calculation to ensure stable supply for exports and purchase for farmers. Thanks to good linkage, the company and farmers both enjoy the benefit of a soaring rice price.

The Ministry has assigned the Crop Production Department, the Irrigation Department, and the Plant Protection Department to keep a close eye on drought and salinity to decide whether the country can increase the area of the autumn-winter crop. It is expected to increase by about 50,000ha in the Mekong Delta. According to related agencies’ calculations, if rice can be grown in an additional 50,000ha for the autumn-winter crop, Vietnam can collect another more US$100 million providing food for the world and improving farmers’ income.

According to Mr. Trung, the Ministry of Agriculture and Rural Development firmly grasps the market situation as well as rice production in Vietnam. Rice is cultivated in an area of 7.1 million hectares with an output of 43-43.5 million tons ensuring the balance between domestic consumption and export. Under responsible agencies’ figures, Vietnamese people consume about 30 million tons of rice; thus, approximately 7-7.5 million tons of rice is for export.

 USAID project intensifies linkages for SMEs in Vietnam 

Over the past time, the US Agency For International Development (USAID) Linksages for Small and Medium Enterprises (LinkSME) project has significantly supported the Vietnamese Government in researching, reviewing and popularising mechanisims to improve business climate, thus enhancing competitiveness capacity of local SMEs.

Aler Grubbs, Director of USAID in Vietnam, said it has been a committed partner in Vietnam’s effort to address its key challenges in economic governance, private sector competitiveness, and workforce readiness for the digital economy. The achievements that the two sides have made together through the partnership on the USAID LinkSME project will serve as a foundation for enhancing the capacities of Vietnam’s SMEs, facilitating trade, and creating linkages for new successes in the future.

USAID LinkSME is supporting the Office of the Government’s efforts to enhance the business enabling environment and reduce the cost of complying with regulatory and procedural requirements, measuring progress on an annual basis.

Further, the project and its implementing partner organisations are helping SMEs to improve manufacturing prowess, gain access to finance, and pursue digital transformation. This assistance is offered in close coordination with the Ministry of Planning and Investment.

The project has supported more than 70 studies with recommendations and guidelines to enhance the implementation of a Government programme for cutting and simplifying business-related regulations during the 2020 - 2025 period, leading to 2,392 business-related regulations reduced and simplified across 194 legal documents. These efforts save enterprises’ time and compliance costs as well as facilitate their participation in global supply chains, digital transformation, and access to finance. 

To enhance the capacity for SMEs to sustainably participate in global supply chains, the project has conducted pre-evaluations and screenings for 180 SMEs, comprehensive audits for 11 SMEs, and provided intensive technical assistance to 41 enterprises to participate in global supply chains.

Among the 318 purchase orders from lead firms resulting from the project assistance, 280 have been successfully delivered and payments made, totaling 8.6 million USD. In addition, the project has enhanced the capacity of business support organisations in Vietnam to better support their member SMEs’ linkages with supply chains.

Deputy Minister of Planning and Investment Tran Duy Dong said the project is a foundation to help SMEs and organisations to improve capacity, bolstering trade, forwarding to new successes.

Startup successfully raises funds of nearly US$1 million

A startup providing technology solutions for the production of water-soluble polymer packaging has successfully raised capital with an amount of nearly US$1 million from the ITI FUND.

Mr. Raphael Cazalbou, CEO and co-founder of PVA PRO, expected that PVA PRO will have important progress in improving production capacity, developing new products and expanding business markets, contributing more sustainable values to the community after it received nearly $1 million in investment capital and strategic and operational consulting support from ITI Fund (Increase–Together–Innovation Fund) - an innovative startup investment fund established by 4M Group.

Founded in 2021 by experts with many years of experience in the same field, PVA PRO's packaging solutions both ensure the toughness of ordinary plastics and can be used for multi-purpose applications without creating microplastics, and do not endanger animals and natural ecosystems. This manifested the founding team’s determination to improve Vietnam’s plastic waste condition.

Normally, traditional plastics take anywhere hundreds of years to decompose, while biodegradable plastics need special environmental conditions at factories to decompose in 6 to 12 months, while products from PVA compounds (Polyvinyl alcohol) only take from 30 minutes to 60 minutes to dissolve in warm water at 70 degrees Celsius.

Ms. Thai Nhu Hang, co-founder of PVA PRO revealed that the company is completing research on environmentally friendly packaging products used in the apparel and fashion industries with the goal to continue to study PVA PRO's solutions to other areas such as retail, fast-moving consumer goods (FMCG).

Ms. Dang Thi Kieu My, Director of ITI Fund shared the fund organizers are completely convinced by PVA PRO's solutions developed by an experienced and capable team. Besides, in the context of the world market with big brands becoming more serious about sustainable development, this will be the key point for PVA PRO to promote its potential, providing customers and consumers with quality and green products.

Ample room ahead for Vietnamese rice to gain entry to UK market

There remains plenty of opportunities for Vietnamese rice to expand its market share in the UK amid India, the largest rice exporter to this market, suspending rice exports to the market, said Nguyen Canh Cuong, Vietnamese Trade Counselor in the UK.

Cuong assessed that the consumption demand for rice in the UK is huge due to a community of more than 5.5 million people of Asian descent, and  being a nation that does not grow its own rice.

Vietnamese rice exports to the UK recorded spectacular growth last year with nearly 3,400 tonnes, worth more than US$3.7 million, representing a rise of 24.5% in volume and 34% in value compared to 2021.

However, Vietnam currently accounts for only 0.6% of the UK's rice import market, duly ranking 14th among rice exporting countries to this market.

India’s recent rice curb is anticipated to cause a shortage of supply source of about 75,000 tonnes of rice in the UK ahead in the second half of this year, which in turn will create further opportunities for rice exporters, including Vietnam.

The current time therefore represents a prime opportunity for Vietnamese rice to move to increase its market share in the UK, especially due to the tax incentives under the UK-Vietnam Free Trade Agreement (UKVFTA), Cuong noted.

Sharing this perspective, Nguyen Hai Nam, chairman of EUTEK Group - the exclusive distributor of Ong Cua ST25 fragrant rice in the UK, revealed that there is ample room for Vietnamese long-grain rice in the demanding market amid the Indian rice export ban and preferential tariffs set out under the terms of the UKVFTA.

Nguyen Thi Minh Phuong, product development manager of Longdan Group, one of the largest importers of Vietnamese goods in the UK, stated that the demand for importing rice in the UK has increased sharply since the beginning of the year. Indeed, Longdan's imports of Vietnamese rice has inched up 40% against the same period from last year.

Furthermore, Cuong analysed that with India’s ban on rice export, British rice importers will instead turn to purchasing Vietnamese and Thai rice, therefore helping Vietnam rise to a higher position in the list of customers by British rice importers, which had previously established longstanding partnerships with both Indian and Thai suppliers.

Cuong stated that if local rice exporters actively deployed marketing strategies in the UK market in a professional manner, then Vietnamese rice exporters will certainly increase their market share in the highly lucrative market.

He therefore advised exporters to take advantage of the golden opportunity to request that rice distributors in the UK use the Vietnamese rice brand, instead of the distributors’ brand, which will help to raise awareness among British consumers about Vietnamese rice moving forward.

Binh Duong draws strong domestic investment inflows

The southern province of Binh Duong, known as an attractive destination for foreign direct investment (FDI), has witnessed a surge in domestic investment inflows recently.

Chairman of the provincial People's Committee Vo Van Minh said domestic investment surpassed FDI in 2022 and the first seven months of 2022. It forms an important economic component contributing to the province's sustainable development, he noted.

Between January and July this year, Binh Duong attracted 52.47 trillion VND (2.21 billion USD) worth of domestic investment, representing an annual increase of 16.5%.

So far, the province has recorded a total of 62,848 domestic enterprises with combined registered capital of 683 trillion VND (28.78 billion USD).

Also in the first seven months, the province's value of industrial production regained momentum, increasing by 3% from the same period last year.

Total retail sales of goods and services, meanwhile, reached 174.82 trillion VND, up 12.4% year-on-year. Notably, Binh Duong’s export turnover rebounded in July with a rise of 17.6% compared to the previous month, raising the province's export earnings in the first seven months to 17.8 billion USD.

USAID project intensifies linkages for SMEs in Vietnam

Over the past time, the US Agency For International Development (USAID) Linksages for Small and Medium Enterprises (LinkSME) project has significantly supported the Vietnamese Government in researching, reviewing and popularising mechanisims to improve business climate, thus enhancing competitiveness capacity of local SMEs.

Aler Grubbs, Director of USAID in Vietnam, said it has been a committed partner in Vietnam’s effort to address its key challenges in economic governance, private sector competitiveness, and workforce readiness for the digital economy. The achievements that the two sides have made together through the partnership on the USAID LinkSME project will serve as a foundation for enhancing the capacities of Vietnam’s SMEs, facilitating trade, and creating linkages for new successes in the future.

USAID LinkSME is supporting the Office of the Government’s efforts to enhance the business enabling environment and reduce the cost of complying with regulatory and procedural requirements, measuring progress on an annual basis.

Further, the project and its implementing partner organisations are helping SMEs to improve manufacturing prowess, gain access to finance, and pursue digital transformation. This assistance is offered in close coordination with the Ministry of Planning and Investment.

The project has supported more than 70 studies with recommendations and guidelines to enhance the implementation of a Government programme for cutting and simplifying business-related regulations during the 2020 - 2025 period, leading to 2,392 business-related regulations reduced and simplified across 194 legal documents. These efforts save enterprises’ time and compliance costs as well as facilitate their participation in global supply chains, digital transformation, and access to finance. 

To enhance the capacity for SMEs to sustainably participate in global supply chains, the project has conducted pre-evaluations and screenings for 180 SMEs, comprehensive audits for 11 SMEs, and provided intensive technical assistance to 41 enterprises to participate in global supply chains.

Among the 318 purchase orders from lead firms resulting from the project assistance, 280 have been successfully delivered and payments made, totaling 8.6 million USD. In addition, the project has enhanced the capacity of business support organisations in Vietnam to better support their member SMEs’ linkages with supply chains.

Deputy Minister of Planning and Investment Tran Duy Dong said the project is a foundation to help SMEs and organisations to improve capacity, bolstering trade, forwarding to new successes.

Cao Bang seeks cooperation opportunities in Canada

The northern mountainous province of Cao Bang held a conference recently in Canada’ Ontario province to seek opportunities for investment and trade cooperation, particularly in tourism, between the province and Canadian businesses.

The event on August 5, held during a working trip of a Cao Bang delegate to Ontario, was also part of activities to mark the 50th anniversary of establishment of diplomatic relations between Vietnam and Canada and five years after the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), to which both countries are signatories, came into effect.

Chairman of Cao Bang province’s People’s Committee Hoang Xuan Anh introduced the province’s potential and its successes in economic cooperative collaboration with domestic and foreign localities.

He highlighted that Cao Bang has high potential for tourism development with famous landscapes such as Non Nuoc Cao Bang Global Geopark, Nguom Ngao cave and the magnificent Ban Gioc waterfall, which is the biggest natural waterfall in Southeast Asia.

According to Trade Counselor Tran Thu Quynh at the Vietnamese Embassy in Canada, agriculture is an area with good potential for collaboration between Cao Bang and Ontaria. She added that Ontario attracts many electric vehicle battery manufacturers thanks to its essential mineral resources and Cao Bang can study the case to reposition its investment attraction strategy to leverage the province's potential mineral resources.

Hugo Cameron, Director of Investment Services at Ontario Ministry of Economic Development, Job Creation and Trade expressed interests of the province’s government and enterprises in cooperative potential with Vietnam in line with the federal government’s Indo-Pacific Strategy.

Over the years, Vietnam and Canada have enjoyed a fruitful relationship. The Southeast Asian country has become Canada's largest trading partner in the Association of Southeast Asian Nations (ASEAN).

Hung Yen maintains high growth momentum

Thanks to drastic solutions to overcome difficulties and support businesses in resuming production, Hung Yen’s economic growth recorded positive results in the first half of the year, maintaining its position as one of the localities with high growth rates in the country and the Hong (Red) River Delta region.
|
According to the provincial People’s Committee, the locality’s GRDP growth rose by 8.21% in the period, ranking 7th among the 63 provinces and cities nationwide. This was also the 3rd highest growth rate over the same period since 2013.

According to Vice Chairman of the provincial People's Committee Nguyen Le Huy, the improvement of investment environment along with support policies has contributed to attracting large inflows of domestic and foreign investment, thus creating momentum for economic growth.

The index of industrial production (IIP) increased by 6.16%. Meanwhile, the total state budget revenue topped 15.2 trillion VND (640.6 million USD), accounting for over 66% of the target.

Credit institutions in the locality have implemented a 2% interest rate support programme, thereby assisting businesses, cooperatives, and business households in overcoming difficulties, reducing financial pressure, and accessing bank loans for production recovery and expansion.

 The index of industrial production (IIP) of Hung Yen increases by 6.16% in the first six months of 2023. (Photo: VNA)

As of June, the total capital of credit institutions reached approximately 127 trillion VND, up 7.1% compared to six months ago. The outstanding loan balance totaled 90 trillion VND, 3.9% higher than that reported on December 31, 2022. Bad deb non-performing loans accounted for 1.3% of the total outstanding loans.

Local authorities have focused on accelerating administrative reform, improving the investment environment and competitiveness, and speeding up digital transformation, contributing to luring more investment from private sectors and foreign-invested businesses.

Over 10 trillion VND and more than 360 million USD were poured into Hung Yen in the reviewed period.

Hung Yen’s service sector has recorded an impressive rebound and strong growth. The estimated value of commercial and service production expanded by 10.42%, with the total revenue from retail sales of consumer goods and services reaching an estimated 52 trillion VND, surpassing the annual plan and surging by over 163% year-on-year.

Secretary of the provincial Party Committee Nguyen Huu Nghia attributed the high economic growth to efforts to promote growth model innovation on the basis of implementing public investment projects, improving competitiveness, making breakthroughs in improving the business environment and accelerating urbanisation by developing large-scale urban areas.

Hung Yen is implementing a project to promote the export of litchi and its products to the Japanese market during the 2021 – 2025 period. It will also organise a cross-border e-commerce event to popularise its typical products.

Local authorities will continue implementing solutions to successfully complete the goals set for the remaining months of this year, concentrating on implementing infrastructure investment projects, accelerating the disbursement of public investment and boosting trade promotion activities, and providing timely support to businesses in joining global value chains.

Vietnamese rice can grow larger UK market share: insiders

Vietnam now has a great opportunity to expand its rice market share in the UK after India, the biggest supplier of the grain to this market, banned the export, said Trade Counsellor Nguyen Canh Cuong at the Vietnamese Trade Office in the UK.

The UK, home to a community of over 5.5 million Asian-origin people, has high rice demand while it doesn’t produce rice. In 2022, its rice import volume increased 4.1% year on year to over 678,000 tonnes while the value rose 7% to more than 603 million USD.

Last year, Vietnam’s rice export to this market grew strongly to approximate 3,400 tonnes worth over 3.7 million USD, up 24.5% in volume and 34% in value from 2021. However, the country accounts for just 0.6% of the UK’s rice import at present, ranking 14th among exporters there, according to statistics cited by Cuong.

He said the export ban by India, which makes up nearly 27% of the UK’s rice import volume, will trigger a shortage of about 75,000 tonnes of rice in this market in the second half of 2023.

The sudden decline in rice supply from India will create advantages for other exporters, including Vietnam, the Trade Counsellor noted, perceiving that it’s now a good chance for Vietnamese rice to increase its market share in the UK, especially with favourable tariffs generated by the UK - Vietnam Free Trade Agreement (UKVFTA).

If Vietnamese exporters conduct professional marketing in the British market such as advertising in English on the local media, they can gain a bigger market share, including at the restaurants serving Asian tourists who make up a large number among the tens of millions of visitors to the UK each year, according to the official.

Echoing the view, Nguyen Hai Nam, Chairman of EUTEK Group which exclusively distributes the rice brand of ST25 Ong Cua in the UK, held that Vietnam’s long-grain rice has a big opportunity in the UK amid India’s export ban, which will cause supply shortages and inflate prices.

The UK is a highly potential market for Vietnamese rice, one of the commodities benefiting from tariff exemption under the UKVFTA, Nam went on.

For her part, Nguyen Thi Minh Phuong, product development manager at the Longdan group – one of the biggest importers of Vietnamese goods in the UK, said rice import demand in the UK has surged since start of 2023. Her company’s import of Vietnamese rice so far this year has risen 40% from the same period of 2022.

Though immediate impacts haven’t been recorded, India’s rice export ban is likely to affect supply sources in the UK in the future and subsequently boost import from other countries like Vietnam and Thailand. Meanwhile, consumers now prefer Vietnamese rice to the Thai one thanks to more competitive prices and quality, she added.

Firms urged to carefully study market, partners when exporting to Israel

The Vietnam - Israel Free Trade Agreement (VIFTA), which was signed last month, has opened up new opportunities for Vietnamese goods to enter an important market in the Middle East.

However, in the context of international trade with many potential risks of fraud, businesses need to be fully equipped with the necessary information and skills to be able to optimise business efficiency and take advantage of the agreement, Vietnamese Trade Counselor in Israel Le Thai Hoa has said.

Hoa said that in general, Israeli enterprises do business dynamically, quickly adapt to market fluctuations, and transact quickly. They always actively look for partners and customers through many different channels. They have diverse demands and stable purchasing power, and high solvency.

Israeli businesses are willing to deposit or pay in advance, prefer to meeting directly with their partners and see goods at the factory. They often approach separate supply partners. They want to buy directly from manufacturers, not through intermediaries.

Hoa emphasised that Vietnamese businesses when transacting and doing business with partners in the Israeli market need to carefully study the markets and partners. In some cases, it is necessary to verify the legal status of the partners, especially new ones.

He said businesses also need to master foreign trade techniques, customs and practices in international trade; and sign contracts with strict content on payment terms, goods quality standards, packaging, delivery deadlines, and dispute resolution.

Hoa suggested that for export activities to Israel to achieve high efficiency, businesses also need to focus on offering processed products with high added value, competitive prices and appropriate quality.

He noted that Israel is a market with typical specific characteristics relating to people and religion. Jewish businesses often require exporters to have Kosher certification, while Arab businesses require exporters to have Halal certification for certain types of goods, especially food.

In addition, businesses also need to regularly follow developments on the political and security situation in Israel, because this is a sensitive area for conflicts and instability affecting the entire region.

Hoa said to promote the implementation of VIFTA, in the coming time, the Vietnam Trade Office in Israel plans to organise activities which provide relevant parties with information about the agreement and promote connections between the business communities of the two countries.

Currently, Israel is the 5th largest trading partner and the 3rd largest export market of Vietnam in the Middle East, after the UAE and Turkey. The structure of import and export goods between Vietnam and Israel is complementary. The goods that Israel needs to import are also export products with the strength of Vietnam and vice versa. Every year, about 70 Vietnamese items are exported to Israel.

Meanwhile, Israeli businesses are increasingly interested in the Vietnamese market and partners, considering Vietnam as one of the important stable suppliers in Asia, especially for mobile phones, agricultural products, seafood, processed foods, beverages, household goods, and electric machinery, and electronic products.

In addition, according to the negotiation content in VIFTA, some agricultural products such as eggs, meat, potatoes, carrots, cauliflower, mushroom, honey, and tuna are granted tariff quotas by Israel with an in-quota tax rate of 0%. Many fashion items, processed footwear and finished products will be exempt from tariffs as soon as the agreement comes into effect.

According to Hoa, in recent years, Israel often faces a shortage of dairy products of all kinds, due to high demand of consumers  and insufficient domestic production.

Therefore, the Israeli Government must continuously adjust trade policies on imports for this item, applying mainly the abolition of import duties and tariff quotas for dairy products to increase supply. That is an opportunity for Vietnamese businesses to boost dairy exports to Israel in the near future, he said.

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