After a period of stagnation caused by the COVID-19 pandemic, many farm produce of Vietnam have recorded speedy growth in export to China so far this year and the shipments are predicted to keep increasing in the time ahead.

During the first 11 months of 2023, China, the US, and Japan were the three largest markets of Vietnamese agro-forestry-fishery exports. China made up 23.2% of the total and posted a year-on-year increase of 18%, becoming the biggest buyer of those products from Vietnam, according to the General Statistics Office and the Ministry of Agriculture and Rural Development (MARD).

Deputy Minister of Industry and Trade Phan Thi Thang said that among the farm produce, total fruit and vegetable exports hit 5.32 billion USD during the period, soaring 74.5% from a year earlier. They were followed by the overseas shipment of rice, which grew 16.2% in volume to 7.75 million tonnes and 36.3% in value to 4.4 billion USD.

Dang Phuc Nguyen, Secretary General of the Vietnam Vegetable and Fruit Association, held that 2023 was a year of bumper fruit exports, especially durian the export of which to China shot up by even 161.8% at certain points of time.

Vietnamese authorities are boosting negotiations with China to export frozen durian and fresh coconut via the official channel to this neighbouring market, he noted.

Besides, sales of rice to China have risen sharply, by 55.2% year on year during the 11 months. The same upward trend has also been recorded in the shipment of cashew nut, coffee, and animal feed to this market, by 11.4 - 42.3%, statistics show.

Without market uncertainties, Vietnam’s fruit and vegetable exports may surpass 6 billion USD in 2024.

Le Thanh Hoa, Deputy Director of the MARD’s Quality, Processing and Market Development Department, said China has licensed 12 fruits and vegetables of Vietnam to enter its market via the official channel. The Chinese General Administration of Customs has announced the list of over 800 Vietnamese fishery processing businesses eligible to export fishery products to China, and also approved product codes for 40 live crab and lobster packaging establishments, five others packaging black tiger and white-legged shrimp, along with 128 aquatic products and 48 species of Vietnam.

This is a condition for Vietnamese firms to access and continue stepping up exports to the market of 1.4 billion people, he opined.

While aquatic exports fell 18.9% year on year during January - November as reported by the MARD, the Vietnam Association of Seafood Exporters and Producers (VASEP) said China remains a key market of many fishery products.

About 30% of Vietnam’s tra fish export revenue currently comes from China. Vietnam is the seventh supplier of fishery products for this major market this year.

Director of the MARD’s Crop Cultivation Department Nguyen Nhu Cuong noted apart from fruits, Vietnam is also exporting winter farm produce to China, adding that as the neighbour suffered from prolonged downpours and flooding in many localities this year, it has high import demand.

MARD Deputy Minister Hoang Trung said to secure sustainable farm produce export to China, it is necessary to boost cultivation planning, grant more production unit codes, and ensure quality to increase export via the official channel. The MARD and related ministries and sectors will promote negotiations to sign protocols on farm produce export to China as well as potential markets.

Vietnam has witnessed record growth in the export of many farm produce to China thanks to those protocols. So far, 13 agricultural products have been shipped to the market via the official channel, namely salangane nest, sweet potato, durian, longan, rambutan, mango, jackfruit, watermelon, banana, mangosteen, lychee, passion fruit, and durian.

Deputy Minister of Industry and Trade Thang affirmed that her ministry will keep coordinating with the MARD to negotiate with Chinese authorities so as to open this market to more fruits from Vietnam such as green-skinned pomelo, fresh coconut, avocado, pineapple, star apple, lemon, and honeydew melon.

Addition, relevant agencies of both sides will work to control the speed of customs clearance for seasonal agricultural and fishery products at the two countries’ border gates, and accelerate the shift to export via the official channel.

Market expected to move positively on domestic cash flows

The stock market saw choppy trading throughout the week but still posted a weekly gain with the VN-Index retesting the threshold of 1,100 points.

The highlight lifting the market was the strength of domestic cash flows, shadowing the record net outflow of foreign capital. Experts believe it is likely to support the market this week.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index closed last week at 1,124.44 points, while the HNX-Index on the Hà Nội Stock Exchange (HNX) last traded at 231.2 points.

For the week, the former gained 2.02 per cent and the latter was up 2.18 per cent. Both benchmarks increased for the second straight week.

Liquidity rose sharply on both main bourses and was also the highest in the last 11 weeks. Of which, liquidity on HoSE soared 59.9 per cent from the previous week to VNĐ104.39 trillion (US$4.3 billion). And that on the northern exchange jumped 68.4 per cent to nearly VNĐ13 trillion.

Last week, foreign investors recorded a net selling of nearly VNĐ4.1 trillion. This marks their fifth consecutive week of net selling and also the week with the highest net selling volume since the beginning of the year. Cumulatively, since the start of the year, foreign investors have sold a significant amount of nearly VNĐ17.1 trillion.

Despite experiencing significant volatility during the session on December 7, the overall outlook for the domestic stock market last week was positive.

The market also received a boost from several encouraging developments. One notable event was the meeting between the Prime Minister and the banking sector, aimed at stimulating credit growth and easing the challenges faced by businesses in accessing capital for their operations.

While achieving the credit growth target of 14.5 per cent may be difficult, there is a growing likelihood of improvement. If effective measures to enhance capital access for businesses are implemented, it will lay the foundation for growth in 2024.

Moreover, there are other positive developments coming from the banking industry, such as plans to conduct a study and submit a report to the government regarding the extension of the implementation period for the circular on debt restructuring, while keeping debt groups intact.

The market has also witnessed a stable return of liquidity through Treasury bills.

Both domestic and global markets will shift their focus to big international events this week. Investors are waiting for the final monetary policy meetings of 2023 by several major central banks, especially the US Federal Reserve.

The markets' participants widely expected that the Fed would continue to keep the rates unchanged at this meeting, while some predicted the Fed’s first rate cut would happen next year.

Also this week, General Secretary of the Chinese Communist Party and President of China Xi Jinping and his spouse will make an official visit to Việt Nam starting on December 12, and there is high expectation about the spillover effect of the visit to all levels and sectors.

Additionally, exchange-traded funds (ETFs) will be restructuring their portfolios this week.

Regarding the internal factors of the market, the most notable highlight is the domestic capital flow. Despite record net selling by international investors last week, the domestic capital flow was showing significant strength. Liquidity and robust domestic capital flow are fuelling hopes that the market will continue to rise in the short term.

Technically, the market is still trading within a consolidation range, with the lower boundary around 1,075 points and the upper boundary in the range of 1,125 - 1,130 points.

With the return of liquidity and the leadership of blue-chip stocks, particularly in the banking sector, the market is expected to surpass the November peak and head for the target range of 1,140 - 1,160 points by the end of the year.

According to experts at Saigon - Hà Nội Securities JSC (SHS), the market is still in its second recovery phase following a significant decline. “And we believe that after the rebound, it will gradually form a new accumulation pattern. In the short term, we expect the VN-Index to soon surpass the resistance level of around 1,130 points and aim for the 1,150-point level,” said SHS. 

Ca Mau province opens first shrimp festival

The southernmost province of Ca Mau on December 10 kicked off its first-ever shrimp festival, which is hoped to help affirm Ca Mau shrimp brand and promote the local shrimp in particular and Vietnamese shrimp in general.

Ca Mau province earns about 1 billion USD from shrimp exports annually for the recent three years, accounting for 28% of the country’s total.

Speaking at the event, Deputy Prime Minister Le Minh Khai said Vietnam's agricultural, forestry and fishery export turnover is expected to reach more than 53 billion USD, of which shrimp exports are estimated to contribute about 3.6 billion USD, making Vietnam the second largest shrimp supplier in the world.

Ca Mau shrimp industry has affirmed its position in the world market, he said, adding that besides super-intensive shrimp farming, the locality is also home to other types of sustainable farming such as combining shrimp farming and forest or rice cultivation which meet ecological and organic standards.

To develop agriculture effectively and increase added values, the Deputy Prime Minister noted that the agricultural sector in general and Ca Mau in particular need to focus on developing an agricultural ecosystem, including the shrimp industry ecosystem; building a green economy and circular economy in agriculture, contributing to environmental protection and reducing greenhouse gas emissions.

It’s also necessary to encourage startups, innovation and promote digital transformation in agriculture, and diversify export markets, he said.

Chairman of Ca Mau provincial People's Committee Huynh Quoc Viet said that the Ca Mau Shrimp Festival, along with a forum to promote One Commune-One Product (OCOP) products in the Mekong Delta held on the occasion, aims to honour shrimp farmers and those who have joined in providing high-quality shrimp products to domestic and international consumers.

The events also bring an opportunity for Ca Mau to introduce and promote its key products. On this occasion, Ca Mau province wishes to attract more investors to make its local products and those from other Mekong Delta provinces go further, and join in global value chains, Viet said.

Ca Mau is now home to 280,000 hectares of shrimp breeding, accounting for 40% of the country’s shrimp farming area. The shrimp output reaches more than 220,000 tonnes per year, equivalent to 22% of the country’s total.

The shrimp industry provides livelihoods for more than 600,000 people, or half the province’s population.

HCM City hosts hardware, hand tools expo

The Vietnam Hardware & Hand Tools Expo has opened in HCM City with 350 exhibitors from 15 countries and territories showcasing more than 1,000 products and a number of prominent brands.

In its eighth season this year, it has 400 booths that are displaying tools, power tools, fasteners, building hardware, and other products that have widespread application in areas like engineering, manufacturing, repairing, assembling, construction, and DIY.

There are four international pavilions from China Japan, India, and Taiwan (China), underscoring the attraction of the Vietnamese market for investors and the collaborative efforts that are on to build a global supply chain for mechanical products.

Lesley Zhang, deputy general manager of SATA, a subsidiary of the US-based Apex Tool Group, said her company seized the opportunity to explore the Vietnamese market by showcasing a diverse range of products.

It offers 6,000 products that are widely used in industrial production and equipment maintenance in various fields, she added.

The Vietnam Supporting Industries Fair, which is being held concurrently with VHHE, has brought together more than 40 local enterprises.

The fair hosted by the HCM City Centre for Supporting Industries Development is displaying products and components used in supporting industries.

The three-day expo is being held at the Saigon Exhibition and Convention Centre by leading exhibition organiser VINEXAD. 

Bạc Liêu Province focuses on ‘One Commune-One Product’ programme 

Bạc Liêu Province has made efforts to develop more products under the national “One Commune-One Product” programme and promote their sales to increase rural incomes.

Four years after starting the programme, the Cửu Long (Mekong) Delta province has 130 OCOP products, 33 of them four-star and 97 three-star under a five-star rating system.

Its OCOP products include frozen shrimp, salt-related products and processed shrimp, fish and squid, are sold in supermarkets nationwide and exported to the US, Japan, the EU, and other foreign markets.

The province’s OCOP products include some popular tourist destinations.

Đăng Minh Pháp, head of the province Rural Development Sub-department, said local products had improved their value and expanded markets after OCOP recognition.

OCOP status increased sales by 10-20 per cent, he said.

The province provided support to many producers seeking to invest in production machinery and facilities to improve OCOP quality, and helped design product logos and packaging to make them attractive to consumers.

The province Department of Industry and Trade introduced local speciality and OCOP products at 18 fairs organised in other provinces and cities in 2021-23.

It helped OCOP makers participate in exhibitions and fairs by subsidising half their booth rents and transport costs.

It also assisted their participation in conferences for linking up buyers and sellers held in Bạc Liêu and other provinces and cities, and lent a hand to companies and co-operatives seeking to set up websites to promote their OCOP items.

Companies, cooperatives and establishments that make these products have stepped up investment in production facilities to diversify and meet market demand.

The Bạc Liêu Salt Joint Stock Company in Vĩnh Lợi District makes various products from salt and has obtained four-star OCOP status for seven of them: refined, iodized, granular, shrimp, chilli, pepper, and vegetarian salts.

Its products are sold nationwide and exported to markets with high quality requirements such as South Korea and Japan.

It exported more than 1,600 tonnes of refined and granular salts to South Korea last year, up 35 per cent from 2021.

Phương Nguyệt in Giá Rai Town makes four products (dried shrimp, mudskipper and gourami fish and shrimp paste) with OCOP status, and they are sold in many provinces and cities, including HCM City.

Nguyễn Nguyệt Ánh, its owner, said to promote her products she often participated in exhibitions, fairs and buyers-sellers meetings held in Bạc Liêu and elsewhere.

“Besides traditional distribution channels, my establishment also sells products on e-commerce platforms.”

Lê Tấn Cận, deputy standing chairman of the province People’s Committee, said the programme was meant to develop the rural economy by promoting its strengths and increasing product value.

The province planned to develop branded OCOP items and value chains based on the strengths and advantages of locally available raw materials, he said.

This would help increase local incomes, restructure agriculture in combination with developing small industry, rural occupations, services, and tourism, he added.

But there were still hurdles to implementing the programme as most OCOPs are made manually on a household scale and have low competitiveness.

Many were not sold widely despite being in great demand among both locals and tourists because of poor promotion.

To develop OCOP, the province would address this, strengthening promotion through participation in fairs and exhibitions at home and abroad, advertising OCOP items on the media and online, and opening showrooms for them.

It would develop linkages between various stakeholders in the OCOP supply chain, and co-operate with other provinces and cities to sell the products. 

Securities companies gear up for capital increase

The competition to increase capital among securities companies is showing signs of excitement once again in the second half of 2023, amid the context of continuous growth in outstanding margin loans over the past few quarters.

According to statistics, it is expected that at least five securities companies will raise their charter capital in the near future, with a total value of approximately VNĐ13.4 trillion (US$553 million). The primary purpose of this capital increase is to supplement lending activities, along with investments and other objectives.

In particular, LPBank Securities Company (LPBS) recently announced a plan to offer shares to its existing shareholders. Under this plan, LPBS will offer a maximum of 363.8 million shares at a price not lower than VNĐ10,000 per share, with a subscription ratio of 1,000 shares for every 14,552 shares held.

If the plan is fully executed, LPBS's charter capital is expected to increase nearly 16 times, from VNĐ250 billion to VNĐ3.88 trillion. With a minimum revenue target of over VNĐ3.6 trillion, the company plans to allocate VNĐ500 billion for self-trading investment activities, VNĐ200 billion to expand its branch network in major provinces and cities, and the remaining VNĐ2.94 trillion for lending activities in margin trading, advances for securities sales, and other securities business services.

SSI Securities Company (SSI) has announced its intention to seek shareholders' approval for a plan to issue 453 million shares to increase its charter capital from equity sources. This includes issuing 302 million bonus shares at a ratio of 100:20 and offering 151 million shares to existing shareholders at VNĐ15,000 per share, with a ratio of 100:10. If the aforementioned plan is successfully implemented, SSI's charter capital is expected to reach VNĐ19.65 trillion, solidifying its position as the leader in terms of charter capital among securities companies.

Furthermore, SSI has stated that the plan to issue over 104 million individual shares will be carried out after the completion of the aforementioned capital increase plan. Therefore, if successful, SSI's charter capital could potentially increase to nearly VNĐ20.7 trillion.

In August 2023, VNDirect Securities Co (VND) had previously announced its plan to conduct a public offering of shares to existing shareholders and issue shares as dividends. VND intends to offer nearly 244 million shares to existing shareholders at a ratio of 5:1, with an offering price of VNĐ10,000 per share. The implementation is scheduled for 2023 and/or 2024, pending approval from the State Securities Commission (SSC).

VND also plans to distribute dividends to shareholders in the form of shares at a rate of 5 per cent, equivalent to issuing nearly 61 million new shares. The capital for implementation will be sourced from undistributed after-tax profits in the 2022 audited individual financial statements.

If both of the aforementioned options are successful, VND's charter capital will increase from VNĐ12.17 trillion to nearly VNĐ15.22 trillion.

Tiên Phong Securities (TPS) plans to implement an issuance plan to increase its charter capital from VNĐ2 trillion to VNĐ3 trillion by offering 100 million shares to existing shareholders at a ratio of 2:1, with an offering price not lower than VNĐ10,000 per share.

It is expected that with VNĐ1,000 billion in revenue, TPS will allocate VNĐ700 billion for securities trading activities, VNĐ200 billion for capital investment activities, and VNĐ100 billion for business activities and other legal operations.

Techcom Securities Company (TCBS) has announced a capital increase plan of over VNĐ10 trillion, while MB Securities Company (MBS) has finalised the right to issue over 57 million shares to increase its capital to VNĐ4.3 trillion.

Additionally, ACB Securities (ACBS) also plans to increase its capital by VNĐ1 trillion, reaching VNĐ4 trillion. The contributed capital will come from the parent bank, Asia Commercial Bank (ACB).

In the backdrop of continuously growing outstanding loan balances at securities companies over the past few quarters, there is a notable trend among many of these companies to rapidly increase their capital.

As of September 30, 2023, statistics indicate that outstanding loans, primarily margin loans, at securities companies are estimated to reach VNĐ165 trillion. This represents an increase of VNĐ15 trillion compared to the end of the second quarter of 2023 and a substantial rise of VNĐ43 trillion compared to the end of 2022.

The significant surge in outstanding loans at securities companies can be attributed to their recent efforts to bolster their capital in order to meet the high demand from the market, particularly in terms of loan agreements with various organisations. This move reflects the companies' proactive approach to cater to the increasing market needs and capitalise on the opportunities presented by the growing demand for loans. 

Diamond Princess brings 3,000 tourists to Thua Thien-Hue province

A Diamond Princess ship carrying around 3,000 passengers and crew on board berthed at Chan May port in the central province of Thua Thien – Hue on December 10.

This marks the return of the international cruise ship after a three-year hiatus caused by the impact of the COVID-19 pandemic.

At Ngo Mon (Noon Gate), the main entrance leading to Hue Imperial City, representatives of local authorities and the Hue Relics Preservation Centre welcomed the delegation with a performance of the royal court music, a UNESCO-recognised world cultural heritage, and offered the guests bouquets of flowers.

Foreign tourists then took a tour around Hue Imperial Citadel, a renowned UNESCO world heritage site, in order to discover royal art and architecture.

According to the schedule, two more Diamond Princess cruise ships are due to dock at Chan May port on December 19 and December 29, bringing around 3,000 international travelers each to Hue.

Chan May port is among 46 seaports throughout Southeast Asia selected by the Asia Cruise Association as a stopover for a cruise ship. A total of 30 cruise ships carrying 48,000 passengers and 18,700 crew members have registered to dock at the port ahead in 2024, reported Chan May Port Joint Stock Company.

Diamond Princess is a British-registered cruise ship that is owned and operated by Princess Cruises. She was put into operation in March 2004, and primarily cruises in Asia during the northern hemisphere summer and Australia during the southern hemisphere summer. 

The ship stretches for 290.2 metres in length, 62.48 metres in height, with a capacity of 2,670 passengers and 1,100 crew members. 

Long An, Japan cooperate in human resources training

The Mekong Delta province of Long An will continue its cooperation with Japan in the training of high-quality technical human resources and the attraction of the Japanese investment to the locality, Chairman of the provincial People’s Council Nguyen Van Duoc said on December 10.

During the working trip to Japan on December 5-9 at the invitation of the Mayor of Okayama prefecture, Duoc and a delegation from Long An province held talks and signed a joint statement with Okayama authority on enhancing cooperation in vocational training, and introduction of job opportunities in Japan in the fields of industrial and agricultural production, trade, investment, tourism, art, education and training for Vietnamese workers.

They also had working sessions with Kofu business association in Yamanashi prefecture, the Japan International Cooperation Agency (JICA), and large enterprises such as Aeon, Nomura, Sapporo Holdings and Hitachi Zosen, as well as had a loot into waste treatment projects in the country.

Duoc said that Long An province will accompany and create the best conditions for the Japanese firms to study and land investment in the locality, especially projects which are in line with its sustainable development orientation, helping bring about practical efficiency and ensure harmonised benefits for both sides.

Since 2020, Long An has sent more than 1,100 labourers to work in Japan, accounting for 89% of the province’s total working overseas.

The province has sharpened focus on attracting investment to the processing and manufacturing of electronic components, precision mechanics, semi-conductor, agricultural products, clean energy, and bio-technology, among others.

Hải Phòng attracts investments in tourism sector

Hải Phòng has attracted 22 investment projects in the tourism sector, totaling over VNĐ120,000 billion (US$4.8 billion) between 2016 and 2023.

Hải Phòng has emerged as a prime destination for investment, with the active participation of major corporations such as Vingroup, Sungroup, Flamingo, BRG, and Geleximco.

Renowned for its long-standing port and remarkable tourist areas like Đồ Sơn and Cát Bà, Hải Phòng boasts the Cát Bà archipelago, which has received national and international recognition, including UNESCO's acknowledgment as a world natural heritage site.

Significant growth in infrastructure has been observed through investment and the implementation of numerous large-scale projects. The city has made efficient use of available resources, prioritising the development of synchronised infrastructure projects, particularly in transportation systems, airports, ports, and new urban areas tailored for tourism.

Hải Phòng's strategic focus is to develop island tourism as its core offering. Simultaneously, the city is diversifying its tourism industry by promoting sports tourism, resorts, community-based tourism, rural agricultural tourism, cultural tourism, and spiritual tourism.

Golf sports tourism, in particular, thrives in Hải Phòng and serves as a key strength. The city currently boasts four standard golf courses - Sông Giá, Đồ Sơn, Vũ Yên, and Dragon Hill - which attract affluent tourists year-round.

Cát Bà island tourism is undergoing new development, combining cruise tourism on Lan Hạ Bay with community tourism in Việt Hải Village, thereby creating an attractive tourism chain that entices a significant number of visitors.

Out of the 22 investment projects in the tourism industry, five have been completed, ten are currently underway, while some are either pending implementation or facing delays. To address challenges faced by investment projects in the city's tourism sector, the Hải Phòng Department of Tourism recently organised a workshop in collaboration with the Departments of Tourism from Hà Nội, Ninh Bình, and Quảng Ninh, as well as industry experts and businesses.

During the seminar, participants discussed three key issues pertaining to the current state of tourism investment, the advantages and limitations of attracting investment in tourism development, existing policies and laws governing investment attraction in the tourism sector, and the legal obstacles that need to be addressed. Furthermore, attendees from other provinces and cities shared their experiences and insights on successfully attracting and implementing tourism investment projects in their respective localities.

Bright prospects ahead for cashew exports in 2024

Despite facing numerous difficulties, Vietnamese cashew exports are expected to increase by 25% in volume this year and record a positive outlook ahead in 2024, according to the Ministry of Industry and Trade.

Statistics indicate that during the 11-month period the country exported 582,000 tonnes of cashew nuts worth US$3.31 billion, representing a rise of 23.1% in volume and 17.4% in value compared to the same period last year.

The country’s average cashew export price dropped by 4.7% to US$5,682 per tonnne year on year.

In fact, the cashew industry has exceeded the target of earning US$3.1 billion from exports set by the Vietnam Cashew Association and is anticipated to record an upward trend this December.

Vu Thai Son, chairman of Long Son Food Jsc., the largest cashew nut processor in Vietnam, said that the export volume for the entire year has grown by about 25%, although the value is lower compared to last year.

Son attributed the decline in cashew export value to high prices of raw materials, along with other factors such as high interest rates and fluctuations in exchange rates.

However, he pointed out that the cashew industry sees bright export prospects moving forward into 2024 as several global markets such as the EU and Japan still have high demand for cashew products.

Specifically, in the last months of the year import orders from markets such as the EU, the United States, and Japan are remarkably increasing, he said, adding that more than 10 cashew processing factories of Long Son firm are now operating at full capacity to meet orders.

Despite export opportunities, the cashew industry is facing challenges in terms of raw materials, high interest rates, and the wave of shifting to green production to meet global trends.

With regard to the green transformation wave, business representatives said importing markets such as the US and the EU are placing forth stricter requirements on packaging design, environmental standards, and social responsibility.

The Vietnam Cashew Association proposed that the State provide loans for businesses, have a reasonable exchange rate policy, and further simplify administrative procedures in a bid to facilitate businesses’ export activities.

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