As inflation is reported to be under control, there is room to adjust prices of State–managed goods and services in the remaining months of this year.

Deputy Prime Minister Le Minh Khai at a recent meeting said that the pressure on price management was easing, adding that if conditions allowed, prices of several goods and services under the State management could be adjusted following the roadmap at the appropriate points of time.

Adjusting prices this year would also help reduce the pressure on inflation in the coming years.

The Price Management Department reported that the supply of essential goods was guaranteed from the beginning of this year with stable prices which moved in line with proposed scenarios.

The consumer price index (CPI) of Vietnam was forecast to expand at around 3.2% to 3.75% this year. The Ministry of Finance predicted CPI at 3.2% to 3.7%, and the State Bank of Vietnam at 3.7% (plus or minus 0.5%).

Official statistics showed that from January to July, the CPI rose 3.12% over the same period last year, and core inflation by 4.65%.

CPI is on a downward trend, from 4.89% in January to 2% in June and 2.06% in July.

According to the Ministry of Finance, there was room for an increase by 1.61% each month to the end of this year to achieve the target of controlling inflation below 4.5% this year.

As inflation was under control easing the pressure on price management, Khái said that when conditions allowed, prices of several goods and services under the State management could be adjusted following the roadmap at the appropriate points of time to ensure inflation target and ease the pressure in following years.

The fact was that the roadmap of adjusting prices of some State-managed goods and services was delayed for many years.

For example, electricity prices had been maintained unchanged at VND1,864.44 per kWh for more than 3 years before a recent increase of 3% on May 4. Recently, Vietnam Electricity (EVN) proposed electricity prices to continue to be increased to make up for the loss incurred from rising production costs.

The Ministry of Finance said that it would closely work with the Ministry of Industry and Trade to manage electricity prices to ensure harmonisation of benefits between consumers, the Government and electricity providers.

Khái asked EVN to update production costs with transparency for appropriate adjustments of electricity prices.

For oil and petrol, Khái urged efforts to ensure adequate supply for the domestic market and prevent disruption in supply.

Regarding the price bracket for domestic air passenger transportation services, the Ministry of Transport was also conducting reviews and evaluations for adjustments in the ceiling levels with the maximum increase of 6.67% depending on the transport distance. The Ministry of Transport said that prices of factors which forms the prices of domestic air passenger transportation services increased significantly, including fuel, wages and exchange rates.

Regarding school fees, Deputy Prime Minister at a meeting in July asked the Ministry of Education and Training not to increase school fees for 2023-24 school year, part of the effort to stabilise macro economy and social security and control inflation.

However, Deputy Minister of Education and Training Hoàng Minh Sơn said that fees kept unchanged this year would be a big challenge to schools, especially universities, where school fees, accounting for 50-90% of revenue, had not been adjusted for three years.

Khái asked the Ministry of Education and Training to study carefully to raise an appropriate roadmap for adjusting school fees.

The Ministry of Finance said that ministries should consider adjusting prices of goods and services provided by State-owned businesses at appropriate points of time and avoid some increases at the same time.

In addition, a close watch must be placed on price fluctuations and inflation developments in the global markets to raise measures to prevent negative impacts.

HCM City calls for greater US investment in hi-tech park

Phan Van Mai, chairman of the Ho Chi Minh City People's Committee, has called for businesses from the US' Oakland city to invest in the southern city’s hi-tech park to produce chips, semiconductors, and new material technologies.

The municipal leader made the statement at a meeting held on August 7 with a California State delegation led by Mayor of Oakland City Sheng Thao as part of their trip to Vietnam.

The event, co-hosted by the Consulate General of Vietnam in San Francisco and David Duong, president of California Waste Solutions (CWS) and CEO of Vietnam Waste Solutions (VWS), aims to examine ways to strengthen ties between Vietnam and the US State of California as well as economic, trade, and investment ties between both sides' localities.

Upon addressing the meeting, Mai said that the southern metropolis is keen to reinforce all-around ties with US partners and localities, alongside Oakland businesses operating in the fields of trade and investment, science, technology, and innovation. The southern city desires to learn from Oakland’s experience in developing an international financial center as it is speeding up the construction of an international financial center in the time ahead, he told his guests.

The city also wishes to co-operate with Oakland in sharing experience in technology solution for climate adaptation, boosting investment between enterprises of the two sides in the areas of clean energy, production of new materials, science and technology, digital transformation, and two-way trade exchange.

The occasion saw the southern metropolis call for Oakland businesses to invest in the city's hi-tech park in chip and semiconductor production, as well as the construction of seaports.

The city also pledged to offer better conditions, specifically for US businesses, including overseas Vietnamese businesses based in the US.

On behalf of the US business delegation, Mayor Thao noted that the two cities have many similarities and co-operation potential in the field of climate change response, trade, investment, and construction of seaports.

Several business representatives from her delegation wish to collaborate with the southern  city to develop an international financial centre in the coming time, while some showed their interest in the start-up field, and setting up a direct flight between the two cities in a bid to bolter trade exchange.

At the meeting, both sides also consented to build a legal framework for broader co-operation in potential field aass as a way of bringing practical benefits to them.

Vietnamese gold consumption demand falls by 9% in Q2

Local consumption demand for gold during the second quarter of the year reached 12.7 tonnes, marking a decrease of 9% compared to the same period from last year, according to the latest report released by the World Gold Council (WGC).      

Demand for gold bars and coins totaled 9.1 tonnes, posting an annual drop of 5%, while demand for jewelry stood at 3.7 tonnes, suffering a fall of 18%.

Shaokai Fan, head of Asia-Pacific (exclude China) and global head of Central Banks at the World Gold Council, said the Q2 downward trend in the country was like those recorded in other markets throughout the ASEAN region.

The demand for gold bars and coins was also limited due to low liquidity, with this being affected by the downturn of the stock market and real estate, he added.

According to information given by the World Gold Council (WGC), global Q2 gold demand, excluding over-the-counter (OTC) market, dropped slightly by 2% on-year to 921 tonnes.

Total gold supply stood at 7% higher on-year at 1,255 tonnes, lifted by growth in all segments. Mine production is estimated to have reached a record for H1 of 1,781 tonnes.

Vietjet launches super promotion on August 8

Vietjet is launching a super sale on August 8 from 0:00 to 23:59, offering millions of tickets at up to 88% off, applying to all routes throughout Vietnam and internationally to Australia, India, Japan, the Republic of Korea, Taiwan, Hong Kong (China) and Southeast Asia.      

The tickets are available on only August 8 at website www.vietjetair.com and Vietjet Air mobile app. Apply the promotion code SUMMER88 and comfortably schedule your flight with flexible flight times from August 21, 2023 to March 31, 2024.

Additionally, customers will receive an additional E-Voucher VND100,000 on https://evoucher.vietjetair.com, accumulate points for SkyJoy loyalty programme to enjoy many attractive benefits at SkyJoy mobile app or https://skyjoy.vietjetair.com/.

Especially, this August, Vietjet launches two new routes including Ho Chi Minh City - Jakarta (Indonesia) route from August 5, 2023 and Ho Chi Minh City - Kochi (India) route from August 12, increasing the opportunities to experience exciting unlimited flying across to the area.

Kien Giang's export turnover reaches over 500 million USD in seven months

The output and export turnover of the Mekong Delta of Kien Giang was affected by a reduction in the global market purchasing power, especially in key markets such as the US, the EU, the Republic of Korea (RoK) and Japan.

Kien Giang’s Department of Industry and Trade said that in the first seven months of 2023, the province's export turnover reached more than 500 million USD, making up 58.14% of the plan and an increase of 3.75% compared to the same period last year.

Of the figures, rice exports raked in 174.62 million USD, up 48.16%; seafood 130.21 million USD, down 16.87%; leather shoes 113.68 million USD, up 9.76%; other goods 79.72 million USD, a fall of 19.67%.

Currently, the province has about 36 enterprises participating in export activities and exporting goods to more than 40 markets around the world, of which, the Asian market accounted for more than 87% of the total export turnover.

Director of the Kien Giang Department of Industry and Trade Truong Van Minh said that the province's implementation of policies to support businesses in production recovery has proved effective, especially support policies on taxes, fees, social insurance, among others. These policies help businesses maintain operations, develop production and promote import and export.

Relevant sectors have assisted enterprises to overcome hurdles in production and business activities while taking the initiative in seeking new markets, and promptly implementing orders.

The province has undated information about Free Trade Agreements (FTAs), especially the EU-Vietnam FTA (EVFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP) and organised conferences to update information about international economic integration for key officials of the province. These include information on prices, as well as domestic and foreign markets for enterprises to take the initiative in production, business and export.

However, the province's seafood processing and exploitation activities for export in the reviewed period faced many difficulties due to a downward trend in the number of ships going out to sea to catch fish.

Some traditional markets posed technical barriers, especially requirements for the certification of raw fishery catches (SC), and the certification of origin of caught fishery products (CC).

Director of the Kien Giang Department of Industry and Trade Truong Van Minh emphasised that in order to achieve an export turnover of 860 million USD in 2023, the province will continue to support enterprises to recover and develop production and export activities, while seeking ways to remove difficulties in labour, raw materials, focusing on implementing foreign trade promotion, and supporting enterprises to find and expand new markets.

On the other hand, provincial departments will continue to popularise free trade agreements (FTAs), helping businesses make effective use of preferential tariff policies from new generation FTAs to boost exports, he added.

Sectors are requested to promptly update information about fluctuations, export market trends, assesses opportunities and challenges to help businesses plan proactively to adapt to global market developments.

OCOP products struggle to sell on home turf

One Commune One Product (OCOP) products considered specialities of each locality have encountered challenges finding customers on their home turf. 

OCOP, implemented from 2018, is a national programme that seeks to facilitate the development of regional agricultural specialities and rural tourism. The country has a total of 8,689 OCOP products recognised as 3-star standard.

However, firms with OCOP products say it's not easy for them to sell these products as most consumers still do not know what OCOP is or why their prices are higher than those of similar products.  

Nguyễn Ngọc Luận, Director of HCM City-based Global Trading Connection Co, told baodautu.vn that about 80 per cent of consumers did not have sufficient information about OCOP products.

Luận's business sells 'Meet More' - a fruit-infused instant coffee product recognised at the 4-star standard, but few customers understand the value of this recognition.

Customers also found it difficult to recognise OCOP products at trade fairs and exhibitions as they're often displayed together with other goods, Luận said. 

Meanwhile, to get their products into local supermarkets, businesses had to offer steep discounts. This makes it difficult for small and medium-sized firms with limited capital to access this key distribution channel, according to Luận.

When entering the supermarket, OCOP products are equated with general products. The fact that OCOP products do not have a separate display space decreases their value.

Phạm Thị Thu Hằng, Director of Po Lang Co in Đắk Lắk Province said her company had several products with OCOP certification.

Her firm had difficulties finding distributors and customers as high investment and production costs of certified OCOP products resulted in higher prices, Hằng said. 

Lê Văn Cương, a representative of Babyahha Co in the capital city agreed. He said OCOP products were mainly handmade on a small scale, leading to higher production costs.

In addition, small and medium-sized enterprises, cooperatives and households also had to invest in technology, equipment and machinery to ensure the quality of OCOP products. 

Amid challenges in the domestic market, many businesses have made efforts to find overseas markets for their OCOP products.

Phạm Đình Ngãi, Director of Trà Vinh Farm Co which sells 5-star standard coconut sugar and Sokfarm coconut nectar said his products had won several international certifications. This had helped his firm export to many countries.

Sokfarm coconut nectar products are available in Japan and the Netherlands, he said, adding that his company was seeking new partners in South Korea, the US, France and Germany through attending trade promotion events and international fairs.

For the domestic market, Ngãi said, he would continue to invest in expanding the distribution system and retail channels through e-commerce platforms. The company would also continue to develop new product lines to meet the needs of consumers better, he said. 

Meanwhile, Luận said his firm would prioritise investing deeply in product quality. His 4-star OCOP coffee products had been exported to 13 countries including in strict markets such as Japan, the US and the EU. 

Luận suggested businesses continue to improve the value and quality of their OCOP goods. 

Agricultural experts said that for OCOP products to boost sales, distributors and manufacturers had a common responsibility to build trade and connections to bring goods to consumers.

The role of distributors was important as they know what consumers want and can help guide manufacturers.

Earlier this year, the Ministry of Industry and Trade (MoIT) introduced regulations for the sales of products under the OCOP programme.

The new criteria are in place from now until 2025.

Under the new regulations, OCOP goods in showrooms must achieve a minimum of three stars or higher based on the criteria for evaluating and classifying OCOP products promulgated by the Prime Minister.

Additionally, they must be the province's key, typical agricultural or industrial products or specialities that characterise the region's advantages, as determined by the MoIT.

The OCOP showrooms will be located in areas with dense traffic, such as airports, stations, highway rest areas, commercial centres, supermarkets, tourist attractions, craft villages, industrial zones, and exhibition centres.

The new regulations aim to ensure that OCOP products meet market demands, satisfy customers' preferences, comply with legal requirements, and protect environmental and consumer safety.

Vietnam Report announces Top 10 prestigious banks, insurance, digital companies

The Vietnam Report JSC in collaboration with vietnamnet.vn has announced the top 10 companies in banking, insurance and technology in Việt Nam in 2023.

The 10 banks honoured in 2023 are Vietcombank, VietinBank, Techcombank, BIDV, Military Bank, VPBank, ACB, AgriBank, TPBank, and VIB.

The most prestigious life insurance companies are Bảo Việt Insurance, Dai-Ichi Vietnam, AIA Vietnam, Prudential Vietnam, Chubb Vietnam, Generali Vietnam, Hanwha Life Vietnam, Cathay Vietnam, MB Ageas and Mirae Asset Prévoir.

The top 10 prestigious IT companies are Viettel, FPT, Việt Nam Post and Telecommunications( VNPT), Mobifone, CMC, VNPT-Vinaphone, Vietnam Technology and Telecommunication Joint Stock Company, Hanel Joint Stock Company, Việt Nam Maritime Communication and Electronics Company, and Tiến Phát Technology Joint Stock Company.

The annual rankings are based on independent research and assessment by Vietnam Report. The firms honoured in this year's lists are all effective, experienced, well-positioned and reputable representatives, making positive contributions to the overall development of the industry in particular and Việt Nam’s economy in general in recent years.

According to a survey by Vietnam Report, banks did not expect breakthrough growth in the second half of 2023. The industry outlook is forecast to be stable, with a growth rate of between 42 per cent and 44. 2 per cent compared to the survey results in 2022 and 2021.

However, opportunities coming from the State Bank's new policies such as flexible interest rate management, closely following market developments, and global digital transformation are expected to bring great impetus for banks to overcome difficulties.

For the insurance industry, headwinds in the market have had a strong impact, especially the series of cases related to insurance distribution channels through banks that have pulled down public confidence in the life insurance market.

The IT industry has made progress and continued to be a bright spot in Việt Nam's economy in 2022. But from the end of 2022 to the beginning of 2023, businesses in the industry are affected by weak demand due to the risk of world economic recession and inflationary pressure.

To maintain growth in the current difficult context, businesses need to maintain their development goals and come up with balanced and comprehensive action strategies around technology and process issues and people such as improving competitiveness compared to other technology competitors and enhancing training of high-quality human resources. 

Mexican enterprises to join Việt Nam International Sourcing 2023

The Việt Nam Trade Office in Mexico said that it was inviting some Mexican corporations and companies to participate in the Việt Nam International Sourcing 2023 organised by the European – American, Ministry of Industry and Trade, to be held next month.

In order to promote trade and develop bilateral trade between the two countries, the trade office is connecting to bring a delegation of 10 Mexican wood manufacturing enterprises to Việt Nam from October 28 to November 3 to buy wooden planks.

Việt Nam International Sourcing 2023 will take place in HCM City from September 13-15, aiming to support domestic firms to engage more deeply in global production and supply chains.

According to the Ministry of Industry and Trade (MoIT), the organiser of the event, many foreign supermarkets, distributors and retailers are making their shopping list for products from Vietnamese suppliers at the event, which is expected to connect foreign importers and domestic manufacturers and exporters.

This year, the event expects to welcome 8,000 visitors and 150 delegations from 30 countries and territories. It has received its greatest interest so far from world leading companies. 

Electronic components factory to be built in Bac Ninh for $200 million

Victory Giant Technology (HuiZhou) Co.,Ltd, a China-based company, has chosen the northern province of Bac Ninh to build a US$200 million electronic component factory in VSIP Bac Ninh II.

The information was released at a meeting last week between Nguyen Anh Tuan, Secretary of the Bac Ninh Provincial Party Committee, and Chen Tao, Chairman of the Board of Victory Giant Technology. Once the factory is operational, its annual sales will reach approximately $1 billion.

Chen Tao, Chairman of the Board of Victory Giant Technology, expressed the company's desire to invest in Bac Ninh Province and said that this is their third visit for an investment survey.

He informed that Victory Giant Technology specializes in research and development, production and sales of high precision printed circuit boards (PCB). It ranks 21st in the world's top 100 PCB companies (Prismark) and 4th in the top 100 domestically-funded companies in China's PCB industry.

At the event, Tuan expressed his hope that more foreign businesses and investors will find long-term cooperation opportunities in the area through the Chinese company.

He urged the company to abide by Vietnamese laws and policies in the process of research, investment, and future operations and to ensure benefits for workers.

The Secretary of the Provincial Party Committee assigned the Board of Directors of VSIP Bac Ninh Urban - Industrial Park to assist the company in learning the procedures and promoting investment in the province.

Factors affecting bank profit outlook this year

Major state lender Vietcombank took the lead in the banking sector with a pre-tax profit of $891 million for the first half (H1) of 2023, up 18 per cent on-year. The bank's net interest income surged by 14 per cent over the same period, reaching $1.22 billion, alongside earnings from forex and stock trading.

After posting a 7.1 per cent jump in its consolidated H1 pre-tax profit to stand at $553.6 million, an MB Bank executive revealed that credit expansion was a stellar point during the period as the bank’s consolidated total outstanding balance shot up by 10.6 per cent compared to the start of the year. It also saw a 6.8 per cent surge in the second quarter (Q2) compared to a 3.7 per cent expansion in Q1.

At VPBank, its parent bank’s pre-tax profit was approximately $347.8 million by late June. Its consolidated credit expanded by over 10 per cent during the period.

Its credit balance from the retail customer segment surpassed $956 million, growing by more than 13 per cent so far this year.

Meanwhile, VIB’s pre-tax profit for H1 surpassed $245 million, up 12 per cent on-year.

Its total operating income approximated $447.8 million, showing an 18 per cent jump on-year, meanwhile non-interest income came to nearly $69.1 million, contributing 15 per cent to the total revenue. The key growth enabler at VPBank was interest payments, which saw a 21 per cent jump during the period to reach $378 million.

TPBank’s H1 financial statement shows that the tech-driven lender eyed a 26 per cent hike in its net income from services, reaching $65 million during the period, while its interest income also reported improvements to reach 28 per cent of the total income structure. The bank’s pre-tax profit was also strong at $147.8 million in H1.

Techcombank marked H1 with its customer count surpassing 12.2 million, of which the lender enticed about 1.4 million new customers during the period with 45.3 per cent of them joining the bank through digital channels and 43.8 per cent by leveraging its partners in the ecosystem.

Although the H1 business results of most banks were healthy, industry experts believe that their projected full-year pre-tax profit may not paint such a rosy picture due to a combination of factors, such as a stronger than expected net interest margin reduction at several banks, a higher than expected bad debt ratio (TPBank, HD Bank), and weaker consumer finance services (VPBank).

In a related development, survey results on the business trends of credit institutions in Q3 conducted by the State Bank of Vietnam's Statistical and Forecasting Department show that credit institutions have significantly lowered their expectations on the business outlook and profit figures for the coming time, in which competition from other lenders is deemed to be the most critical factor for lenders’ performance over the whole of 2023.

MoIT to adjust electricity prices to ensure cash flow for EVN

The Ministry of Industry and Trade (MoIT) is looking to adjust the electricity retail prices to ensure cash flow for Vietnam Electricity Group (EVN).
 
Decision No. 24/2017/QD-TTg of the prime minister stipulates that EVN has the right to adjust the average electricity retail price to rise from 3 per cent to below 5 per cent. This regulation ensures the level of self-determination of enterprises within the price bracket approved by the Prime Minister, according to Do Thang Hai, deputy minister of the MoIT, on August 5.

The MoIT is seeking the feedback of relevant ministries about the draft amending the mechanism for adjusting the retail electricity tariff and the draft decision of the prime mnister on the new electricity retail tariff structure.

According to the MoIT, Vietnam has paid higher costs to import fuel for electricity production since the end of the first quarter of 2022 due to the price hike in the global market. This leads to an increase in EVN's electricity purchases, affecting the company's financial balance and cash flow. Therefore, EVN has proposed to increase electricity prices in 2022 and 2023 to ensure cash flow for its electricity purchases from power plants, thereby improving EVN's financial situation.

"Electricity prices need to be adjusted to a high level to ensure financial balance and cash flow for EVN," Hai said.

When considering EVN's proposal to adjust electricity prices in 2022 and 2023, the Prime Minister commented that it was necessary to study and adjust electricity prices according to a step-by-step roadmap to avoid causing a great impact on the macroeconomy, business and production activities.

Based on EVN's proposal, the MoIT has proposed that the average retail price of electricity should be reviewed for adjustment every three months. This is in line with the provisions of Decision 24 stipulating that EVN must report the updated electricity price calculation quarterly.

After analysing the proposals based on the current socioeconomic situation, the MoIT also suggested adjusting the electricity retail prices in two phases.

The electricity selling price is adjusted to a minimum for customers using electricity for non-living purposes. The adjustment should not cause too much fluctuation in the implementation of the electricity retail tariff structure, while still solving the urgent issues raised by the public in recent years.

Tourism accommodation establishments will pay a retail electricity price equal to that for production. Electricity selling prices by voltage levels above 35 kV, medium voltage from 01 kV to 35 kV, and low voltage below 01 kV are combined to apply to groups of customers in production, business, administrative, and tourist accommodation establishments.

In the second phase, MoIT, in collaboration with EVN, will closely monitor and update the data while evaluating the impact of the proposals on production and people's lives. The two sides will develop a roadmap for application in stages in line with the economic recovery and report to the Prime Minister for his decision.

The MoIT has also considered the pilot of applying electricity selling prices according to capacity and electricity to customers using electricity for production at 110 kV or higher. The pilot will offer a thorough assessment before making an official application.

Shrimp prices plunge in Mekong Delta

The price of material shrimp in the Mekong Delta region has dropped to its lowest level this year, said the Ministry of Agriculture and Rural Development.

This price fall is not limited to Vietnam but is also seen in other major exporting countries like Ecuador, India, and Indonesia. The decline is attributed to low demand for exports and the onset of the peak harvesting season, according to the ministry.

In Bac Lieu Province, the average price of frozen giant tiger prawn (size 20pcs per kg) fell by VND19,300 to VND187,000 per kg compared to June. Frozen giant tiger prawns with sizes 30pcs per kg and 40pcs per kg are now priced at VND150,000 and VND130,000, respectively.

Similarly, frozen white shrimp has plummeted from VND1,400 to VND3,000 per kg for different sizes.

In the first seven months, Vietnam’s shrimp production reached an estimated 590,100 tons, a 4% increase over the same period last year. Of this total, production of giant tiger prawn amounted to 147,700 tons, up 1.3%, while white leg shrimp accounted for 404,600 tons, up 5%.

However, exports of aquatic products from January to July brought in total revenue of US$4.95 billion, down 25.4% year-on-year, according to the Ministry of Agriculture and Rural Development.

HCMC proposes foreign currency accounts for overseas Vietnamese

HCMC is considering proposing a legal framework to allow overseas Vietnamese individuals the option to open bank accounts denominated in foreign currency.

This framework would also enable a seamless transfer of funds and profits between different currencies, streamlining transactions for overseas investors.

The proposed policies also cover citizenship, immigration, land ownership, inheritance, and corporate transactions, all aimed at fostering increased overseas investments.

HCMC Chairman Phan Van Mai’s initiative sent to the Standing Committee of the HCMC Party Committee outlines six key components. These strategies focus on enhancing remittance inflows through communication, policy reforms, investment environment, cultural and educational exchanges, and talent development.

The proposal aims to direct remittances toward key areas, including state-owned enterprise equitization. It suggests collaboration between labor-exporting firms and banks to facilitate proper money transfers.

Overseas Vietnamese are encouraged to participate in financial markets, real estate, and domestic businesses.

In the first half of 2023, remittances to HCMC reached US$4.4 billion, accounting for 66% of 2022’s total. Cumulatively, remittances from early 2021 to June 2023 amounted to US$18.07 billion.

Austria a promising market for Vietnamese fruits: Experts

Importing 1.2 billion EUR (1.31 billion USD) worth of fruits every year, Austria is a promising market for Vietnam, authorities held.

It is one of the first western countries to set up diplomatic relations with Vietnam in 1972. In 2021, two-way trade reached 3.35 billion USD, up 5.55% year on year. Last year, due to impacts of the COVID-19 pandemic, the figure dropped 16.7% to 2.79 billion USD.

According to the Vietnam Trade Office in Austria, Vietnam exported 6.8 million EUR worth of fruits to Austria last year, accounting for 0.5% of the country’s total fruit imports.

It said that due to short expiry period, it is difficult to export Vietnamese fresh fruits to Austria with a large quantity. Meanwhile, Vietnam has seen fierce competition from many countries like Thailand, China, and Cambodia.

The office recently supported the sale of Vietnamese fresh litchi at Asian shops in the European country, while working to bring more fruits to supermarkets in the country, and coordinating with businesses to popularise Vietnamese fruits to local consumers.

It advised exporters to show more documents proving the quality, food safety and origin of their products to gain outstanding advantages.

The office underlined the need for exporters to satisfy all requirements in environment and food safety, while seeking best preservation and transport solutions to ensure the freshness of exported fruits.

Hung Yen’s service sector recovers strongly: official

So far this year, the service sector in the northern province of Hung Yen has been recovering strongly as total retail sales of goods and services topped 52 trillion VND (USD 2.2 billion), increasing by over 163% over the same period last year.

The real estate sector continues to make a great contribution to the growth of the local service sector. In addition, the province has also enhanced trade promotion activities, particularly those for longan - its specialty product and other agricultural products.

Currently, the province is implementing a project to promote the export of fresh and processed longan to the Japanese market in the 2021 – 2025 period. It will organise "Cross-border e-commerce: a breakthrough era" for typical industries and products of Hung Yen and the region.

At the same time, Hung Yen province also regularly calls on businesses, cooperatives, and production facilities to join e-commerce trading floors, trade fairs, and seminars held across the country.

In the first six months of this year, the province's gross regional domestic product (GRDP) increased by more than 8.2%. With that growth, Hung Yen province ranked 7th out of the 63 provinces and cities in the country and 4th out of the 11 provinces and cities in the Red River Delta region.

Vietnam-India Joint Sub-Commission on Trade convenes 5th meeting

Deputy Minister of Industry and Trade Phan Thi Thang and Additional Secretary of the Indian Ministry of Commerce and Industry Rajesh Agrawal co-chaired the 5th meeting of the Vietnam-India Joint Sub-Commission on Trade in New Delhi on August 8.

In his remarks, Agrawal highly valued Vietnam's socio-economic development achievements, affirming that India considers Vietnam as a top-tier partner in Southeast Asia and always attaches importance to expanding economic and trade cooperation with the Southeast Asian nation.

He acknowledged the noticeable development trend in trade between the two countries in recent years, highlighting several positive changes since the 4th meeting of the joint sub-committee held in 2019 in Hanoi.

For her part, Thang remarked that there are many challenges ahead in the global and regional context, including economic recession, political conflicts, trade tensions, high inflation, and lower demand.

These issues will undoubtedly have an impact on the global economy, including both Vietnam and India, she said, adding that the meeting plays a crucial role in addressing difficulties facing businesses, ensuring continuity, and promoting bilateral cooperation.

She stressed that the two nations need to make efforts to foster sustainability-oriented two-way trade; remove trade barriers for imports and exports; promote market access for products of the strength of each side; boost collaboration in e-commerce; and strengthen business, trade, and tourism connectivity by opening more direct flights and increasing the number of flights between major cities of the two countries.

Agrawal totally agreed with the proposals by the Vietnamese official, saying that his agency will work with relevant Indian authorities to address lingering issues and difficulties in order to facilitate import-export activities of the two sides’ businesses.

India wants to elevate cooperation with Vietnam in terms of pharmaceuticals, processed food, tourism, and information technology, he said.

The two sides agreed to closely coordinate in organising trade promotion programmes and activities, fairs and exhibitions; and further expand trade links in areas with huge potential such as agriculture, aquaculture, textiles, leather and footwear, pharmaceuticals, chemicals, fertilisers, machinery, equipment, and consumer goods.

They agreed to bolster investment cooperation in area of joint interest.

Both sides pledged to push relevant agencies to complete the risk assessment process and move towards allowing market access for prioritised types of fruits in the near future.

Vietnam Airlines Group supplies nearly 400,000 seats on domestic flights

The Vietnam Airlines Group, which comprises Vietnam Airlines, Pacific Airlines and the Vietnam Air Services Company (VASCO), will provide nearly 400,000 seats on domestic flights during the peak period from August 31-September 5, in order to meet demand during the National Day (September 2) holiday.

The figure marks a 15% increase from the same period in 2019, before the COVID-19 pandemic broke out.

It will also offer more than 155,000 seats on international flights, more than doubling that recorded in the same period last year.

The group advised passengers to purchase tickets through their official website, mobile app, authorised ticket offices and agents, and request invoices to avoid buying counterfeit or inflated-price tickets.

Airlines also encouraged passengers to utilise various check-in methods to avoid crowded situations at the airports, including online check-in through the website or mobile app, self-service kiosks, automatic or telephone check-in.

California delegation studies business environment in Long An

A delegation from the US state of California including representatives from the San Francisco Bay Area Council and the Vietnamese-American Business Association (VABA), led by Mayor of Oakland Sheng Thao, visited and held a working session with leaders of the Mekong Delta province of Long An on August 8.

Thao hoped that via the visit, the delegation will learn about local business environment and further tighten cooperative ties between the two localities, especially between the Port of Oakland and Long An international port.

Secretary of the provincial Party Committee Nguyen Van Duoc said since the establishment of Vietnam-US diplomatic ties on July 12, 1995 and the bilateral comprehensive partnership on July 25, 2013, the two countries have built a partnership and friendly relationship based on shared interests, mutual respect and people-to-people ties.

Welcoming the delegation, he said their visit reflects the trust that the US partners place on Long An, viewing it as a safe, stable and thriving investment destination.

Long An wishes to continue expanding a sustainable cooperative relationship with US investors, he said.

According to the provincial People’s Committee, the US now ranks sixth among around 40 countries and territories investing in Long An, with 23 projects worth over 484 million USD, mostly in the fields of environment, packaging production, pharmaceuticals, toys, apparel, factory leasing, and more.

On the occasion, a Memorandum of Understanding on cooperation in port exploitation was signed between the Long An international port and the Port of Oakland.

Economy improves but challenges remain: official

Despite strong efforts and more positive signals recorded, Vietnam’s economic growth stood at only 3.72% in the first half of 2023, putting heavy pressure on the realisation of this year’s GDP growth target of 6.5%, said Deputy Minister of Planning and Investment Tran Quoc Phuong.

Addressing the Vietnam Wealth Advisors Summit 2023 in Hanoi on August 8, he said it is worrying that production and business activities in many sectors are struggling with difficulties. The resilience of enterprises has been eroded after the COVID-19 pandemic, and some of them have had to scale down operations and output.

Big challenges at present are related to the market, money flow, and administrative procedures, he pointed out, noting that capital costs are still high while enterprises still find it hard to access credit, issue corporate bonds, or sell stocks.

Outstanding credit during H1 increased by 4.28%, lower than the rise of 9.44% seen in the same period of 2022, statistics show.

Phuong noted that measures to speed up public investment disbursement, foster export, and stimulate consumption are being carried out strongly to fuel growth.

This is a “very heavy” task because the failure to achieve this year’s growth target will affect the implementation of the five-year plan for 2021 - 2025, the 10-year strategy for 2021 - 2030, and even the targets for 2030 - 2045 set in the resolution of the 13th National Party Congress.

It will be difficult to reach targets without breakthrough mechanisms and policies, he went on.

Given this, the Ministry of Planning and Investment has suggested the Government propose the Politburo amend and supplement some mechanisms and policies related to production, business, and investment such as those on the change of land use purposes, the use of local budgets to carry out the tasks and projects managed by ministries and central agencies in localities, and the increase of the proportion of State capital in public - private partnership projects.

These are urgent issues needing quick amendment and perfection to tackle bottlenecks and facilitate socio-economic development, the Deputy Minister emphasised.

At the event, Nguyen Anh Duong, head of the general research board at the Central Institute for Economic Management (CIEM), held that to boost economic growth, stabilising the macro-economy and controlling inflation remain important tasks, but more attention should be paid to removing obstables for enterprises.

In particular, it is necessary to improve their capital access and capital absorption capacity, better the business climate and labour productivity, and bravely issue regulations on pilot mechanisms for new economic models such as fintech and circular economy.

The Government should also effectively implement the free trade agreements Vietnam has joined and consider negotiating and upgrading some others, he recommended.

In addition, localities need to effectively attract and use foreign investment in the new context, Duong said, suggesting that they further open some fields to foreign investors, boost cooperation with other localities in FDI attraction, step up technology transfer from foreign firms, and increase training for labourers to meet FDI companies’ requirements.

For his part, Le Xuan Nghia, member of the National Advisory Council for Financial and Monetary Policies, perceived that the Vietnamese economy will record a U-shape recovery instead of fast recovery because the global economy is also rebounding gradually, the six-month foreign trade decreased but the decline has decelerated while some export sectors like electronics and agriculture are bouncing back well, and the service sector is also recovering relatively well.

He predicted that the economy will recover more observably in around the fourth quarter of 2023.

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