About 9 trillion VND (382 million USD) of public investment capital from foreign sources has been disbursed in the first 11 months this year, accounting for only 26% of the allocated capital.

According to the Finance Ministry’s Department of Debt Management and External Finance, 13 ministries and 59 localities across the country were allocated nearly 34.6 trillion VND of foreign-sourced capital for public investment projects this year.

Vo Huu Hien, vice head of the department said that until now, 8 ministries and 33 localities wanted to return the capital as they are unable to disburse it on time.

Hien said that reasons for the slow disbursement included failure to complete investment procedures or procedures to adjust investment policies, changes in credit agreements, or natural disasters. 

The official added that in May 2022, the Prime Minister also allocated about 5.32 trillion VND from remaining capital in 2021 to ministries and localities, and many localities had focused efforts on disbursing this capital rather than this year's.

The implementation of foreign-sourced programmes and projects faces problems, mainly in delayed site clearance, resettlement, and bidding; problems in bidding and appraisal; and adjustment of projects' investment policies.  Obstacles in terms of regulations and mechanisms, and natural disasters and floods in some regions also hindered the disbursement.

Vietnam and China to negotiate on full opening of Lao Cai border gates

China’s Hekou city and Vietnam’s Lao Cai city will meet this month to discuss the full opening of border gates in Lao Cai, according to Hoang Dang Khoa, chairman of the Lao Cai municipal administration.      

This move is a positive sign for the northern city, as well as for the entire province of the same name as a whole, Khoa said, adding that with the full opening of the border gates tourists will not face COVID-19 pandemic restrictions, a factor which will exert a great impact on accelerating the economic development after two years of stagnation.

Official information regarding the opening of border gates and COVID-19 pandemic control measures will be unveiled at the meeting due to take place on December 23, Khoa noted.

In Lao Cai city, there are three border gates used for import-export activities, including international road border gate No 2 Kim Thanh, the Lao Cai international border gate, and the border gate railway station. Lao Cai also has two other border gates : Bat Xat and Muong Khuong border gates.

The border gates are expected to be fully open to trade on January 1, 2023, revealed a local official.  

This year has seen the import and export value passing through border gates in Lao Cai reach over an estimated US$2 billion. The locality aims to raise the figure to US$5 billion ahead in 2023.

Vietnam rakes in 361 million USD from exporting poultry products

Vietnam has so far earned 361 million USD from exporting poultry meat and eggs to 26 countries worldwide, the Ministry of Agriculture and Rural Development (MARD) reported. 

According to the ministry, the country has spent over 3 billion USD on importing livestock products despite the abundant domestic supply. 

Vietnam produces about 6.5 million tonnes of livestock products and 17 billion of poultry eggs a year, mostly for domestic consumption.

Experts recommended that businesses need to intensify deep processing of poultry meat, create reserves, and diversify products to stabilise the market and increase added value.

Banks need to provide credit support, consider suitable options to assist farmers, they said. 

In the long term, ministries and sectors need to evaluate distribution channels to ensure the interests of consumers and breeders; consider establishing a meat price stabilisation fund to support and better regulate the market; and take solutions to export meat products for large livestock projects.

Honda Vietnam’s motorbike, automobile sales drop in November

Honda Vietnam on December 12 recorded a respective monthly drop of 11.5% and 17.7% in the retail of motorbikes and automobiles in November.

Accordingly, the company sold 215,595 units of motorbike during the month, down 11.5% monthly.

Wave Alpha was the best seller with 38,478 units, accounting for 17.9% of the total while Vision was its most popular scooter with 61,889 units sold, or 28.7%. Sales of Winner X reached 10,274, equivalent to 4.8% of the total.

During the month, the company exported 15,900 units to various markets.

With 1,436 automobile units sold, sedan model City was sold most with 580, or 40.4%. It was followed by SUV CR-V with 513 units delivered to customers, making up 35.7% of its total automobile revenue.

Vietnam Coffee Day 2022 launched

The Vietnam Coffee Cocoa Association (VICOFA) on December 10 evening organised Vietnam Coffee Day 2022 in Hanoi to celebrate the industry's achievements and highlight local and international cooperation for the further development of the global industry in general and Vietnam's coffee and cocoa sector in particular. 

Leaders from ministries, sectors, and import-export businesses in Vietnam as well as international organisations like the International Coffee Organisation (ICO), the Colombian Coffee Federation, and the Indonesian Coffee Association (AEKI), and significant coffee import and export corporations and enterprises from around the world, attended the event.

According to VICOFA, as of the end of 2022, Vietnam exported 1.4 million tonnes of coffee, worth more than 3.2 billion USD, contributing to the total export turnover of the country's agricultural, forestry, and fishery products.

VICOFA also launched the International Conference Vietnam Coffee Industry on December 11.

Over 90% of consumers prioritise made-in-Vietnam goods

The consumption of Vietnamese goods has been on the rise, with over 90% of consumers prioritising products made in the country, statistics show.

Vietnamese goods are currently accounting for more than 90% of products sold at distribution networks of domestic firms. This rate is 60 - 96% at foreign-owned supermarkets in the country, according to the Ministry of Industry and Trade’s steering committee for the “Vietnamese people prioritise Vietnamese goods” campaign.

Meanwhile, made-in-Vietnam goods make up at least 60% of all products for sale at traditional markets and convenience stores.

In particular, after the COVID-19 pandemic, 76% of Vietnamese consumers have developed preference for domestic goods, especially reputable ones.

More than 90% of consumers said they will prioritise Vietnamese goods when shopping, and 75% will recommend Vietnamese goods for their families and friends, according to the steering committee.

Vietnam moves to develop merchant cargo fleet

The Ministry of Transport recently approved a project on Vietnamese merchant fleet development, aiming to handle as much as 10% of the country's exports by 2026, and 20% by 2030, given the current market domination by foreign shipping lines.

A 2021 report by the Vietnam Maritime Administration (VinaMarine) showed that the volume of goods through Vietnam's seaports has grown steadily for many years with an average rate of 13.8%. Despite the negative impact of the COVID-19 pandemic, in 2021, it increased 2% year on year, reaching more than 703 million tonnes. The volume of container cargo was estimated at nearly 24 million TEU, up 6% year-on-year.

As of December 31, 2021, Vietnam's fleet had 1,502 ships, including 1,032 cargo vessels – down from the 1,267 cargo ships of 2016.

In terms of the fleet structure, just a small part of the Vietnamese-flagged merchant fleet are container ships. That means that the fleet is mainly suitable for the domestic or short regional coastal routes. They cannot compete in the international shipping market, where the world is tending to develop larger ships to optimise costs, according to the transport ministry.

Therefore, the project’s main goals include the development of a modern fleet, improvement of efficiency and quality and greater integration into the international market.

The immediate focus is to build a fleet of container ships to work in the Asia-Pacific, with an objective to gain operational experience and set the foundation for long-haul trips in the future.

In recent years, the country's ports have been developed considerably in size, and are now able to accommodate the world's largest ships.

Disbursement of foreign-sourced public investment capital remains slow

About 9 trillion VND (382 million USD) of public investment capital from foreign sources has been disbursed in the first 11 months this year, accounting for only 26% of the allocated capital.

According to the Finance Ministry’s Department of Debt Management and External Finance, 13 ministries and 59 localities across the country were allocated nearly 34.6 trillion VND of foreign-sourced capital for public investment projects this year.

Vo Huu Hien, vice head of the department said that until now, 8 ministries and 33 localities wanted to return the capital as they are unable to disburse it on time.

Hien said that reasons for the slow disbursement included failure to complete investment procedures or procedures to adjust investment policies, changes in credit agreements, or natural disasters. 

The official added that in May 2022, the Prime Minister also allocated about 5.32 trillion VND from remaining capital in 2021 to ministries and localities, and many localities had focused efforts on disbursing this capital rather than this year's.

The implementation of foreign-sourced programmes and projects faces problems, mainly in delayed site clearance, resettlement, and bidding; problems in bidding and appraisal; and adjustment of projects' investment policies.  

Obstacles in terms of regulations and mechanisms, and natural disasters and floods in some regions also hindered the disbursement.

Wood working industry urged to focus on branding
     
The Vietnamese wood industry needs to focus more on branding to increase its competitiveness in the world market and add export value, according to the Viet Nam Administration of Forestry.

Nguyen Van Dien, director of the Viet Nam Administration of Forestry’s Forestry Production Development Department, said the country had around 300 craft villages and 5,580 enterprises engaged in wood processing. Of them, small and medium-sized ones accounted for nearly 97.8 per cent.

Viet Nam’s wood processing industry had developed rapidly, with exports rising steadily in recent years, but enterprises largely exported their products under foreign partners’ brands, causing them to lose 25-30 per cent of added value, he said.

A project to develop a sustainable and effective wood processing industry in 2021 - 2030 aims to turn it into a key one and promote trademarks for Vietnamese wood products domestically and internationally.

It also aims to put Viet Nam in the group of leading countries in terms of production, processing and export of wood and wood products.

Branding requires registration for protection of trademarks, product labels and industrial property rights of wood products.

Dien said a business’s brand was its soul, national trademarks would help businesses expand their markets, and to have a national brand, businesses must have a good foundation.

The Agro Processing and Market Development Authority was drafting a decree on building brands for Viet Nam’s key agricultural products, the first step in building brands in a methodical and practical manner, he added.

Businesses said it was time to change the mindset from making money by diligence in production to building brands.

Building individual brands would help build national brands for the wood industry, which would not only increase the commercial value of products in the domestic and export markets but also bolster the status of Viet Nam’s furniture industry in the global market, they added. 

No shortage of pork for Tet holidays: ministry

The Ministry of Agriculture and Rural Develop said that there would be no shortages of pork between now and the Tet (Lunar New Year) holidays.

The supply was abundant as 16 large pig-raising enterprises, which altogether accounted for nearly half of the total pork supply to the market, maintained good production and farmers across the country maintained herds of over 28 million pigs.

Due to abundant supply, the prices of live pigs were falling to below VND60,000 per kilo.

According to the Ministry of Industry and Trade, live pig prices were falling since late November due to a slowdown in purchasing power while the supply was abundant.

Prices of live pigs fluctuated around VND 52,000 – 56,000 per kg in the second half of November, VND2,000-3,000 per kg lower than the end of October.

The ministry said the demand for pork might increase closer to Tet holidays, which would push up pork prices but the increase would not be considerable.

In late November, Deputy Prime Minister Le Van Thanh asked the Ministry of Agriculture and Rural Development to study the proposal of exporting pigs and pork to save the domestic prices from falling and raise measures to promote sustainable husbandry.

According to Nguyen Xuan Duong, Deputy President of the Animal Husbandry Association of Viet Nam, given the current live pig prices, farmers did not have profits. He said it was necessary to seek measures to promote consumption and lift prices so that farmers could earn reasonable profits to maintain stable production.

Promoting the export of pork could be an effective long term solution, Duong said.

Deputy Director of the Department of Livestock Production Tong Xuan Chinh said prices and developing safe husbandry areas were major barriers to the official export of pork

He pointed out that currently Viet Nam did not have disease-free pig raising facilities or areas compliant with the standards of the World Organisation for Animal Health. High production prices (around $3 per kg) also made it difficult for Viet Nam’s pork to compete with other countries (such as $1.1 of the US).

Another problem was that Viet Nam was heavily dependent on imported animal feed, making it difficult to lower pig prices as animal feed accounted for 65-70 per cent of the pig raising cost.

While the domestic supply was abundant, Viet Nam still spent nearly $200 million to import 89,000 tonnes of frozen pork in the first 10 months of this year, a decrease of 39.6 per cent in value and 34.4 per cent in volume over the same period last year,

Meanwhile, Viet Nam’s pork export was modest, just 1,000 tonnes worth $5.77 million in the January-October, mainly to Hong Kong and Laos.

The Import – Export Department said that Viet Nam’s pork export remained too modest compared to the country’s total output, due to limitations in processing, market forecast and disease prevention as well as high production costs. The agriculture ministry said that focus would be placed on building disease-free husbandry areas to promote the export of husbandry products. 

First Vietnamese brand exporting hi-tech equipment to India
     
Viettel High Tech (VHT) and United Telecoms Limited Group (UTL) last week signed a strategic agreement on comprehensive R&D deployment of 5G network infrastructure in India and export contract to the Indian market, becoming the first Vietnamese brand exporting hi-tech equipment to India.

The contract which was signed under the International Defence Expo was an important landmark affirming that Viettel's 5G mobile telecommunications network infrastructure solution is ready for commercial and large-scale business, not only in Viet Nam and Viettel’s 10 overseas markets but also international markets with high technology level and strict requirements like India.

Accordingly, VHT will supply and deploy IP Router equipment on the telecommunications network of Gwave (a member of UTL Group) in the Indian market. This is an IP transmission device that supports 100Gbps speed to meet the requirements of the 5G network owned by Viettel from research to production. Viettel is the first unit to conduct IP Router research in Viet Nam to meet the standards of CE (Europe), and FCC (the US). The equipment was also assessed and certified by the Vietnamese Ministry of Information and Communications.

Consumption seen weak in year-end season

What should import-export companies be alert to from now until the end of the first quarter of 2023? Should they be chasing the commodities price, in the hope of increasing profits, or be cautious with potential risks?

Monetary policies and interest rate hikes in developing countries have brought about currency instability in underdeveloped countries. Runaway inflation in the U.S. and Europe has delivered a blow to consumers there and hindered the consumption of products in material supplying countries.

According to a young salaryman in the U.S., inflation rose over 8%, but his salary increased only 3%. Therefore, it was easy to see many people tightening spending, due to the shrinking of their pocket money. All walks of life have been negatively impacted.

Massive layoffs in many countries have become top concerns of different administrations and social management authorities. In the year to mid-November 2022, nearly 75,000 employees working for tech companies in the U.S. had been fired. Also, Amazon plans to cut thousands of jobs while HP Inc. will lay off 10% of employees if their team does not meet revenue targets.

Besides tech companies in Europe, grocery distributing companies, like Getir in Turkey, or medical equipment manufacturing companies like Philips in the Netherlands, reported cutting more than 4,000 jobs each.

The enterprises and retailers should therefore be cautious about the consumption power during upcoming public holidays, given that compensation of workers in many countries has been partially or wholly cut, with inflation forcing them to focus their spending on utilities.

HCMC sets 2023 budget collection of VND470,000 billion

HCMC plans to obtain revenue of VND470,000 billion in 2023, up 21% from this year, according to a resolution on the state budget collection estimate and HCMC’s expenditure next year.

In the eighth session of the 10th-tenure HCMC People’s Council, HCMC is set to collect VND1,287 billion every day, adding up to almost VND470,000 billion in the full-year budget collection target of 2023.

As for domestic revenue, the city set a target of VND307,500 billion. Among these, VND16,000 billion is from crude oil, VND145,800 billion from the import-export sector, and VND306 billion from aid.

In 2022, the central Government tasked HCMC to collect VND386,568 billion for the state budget. But the city has already collected VND457,500 billion, 18.4% higher than expected and up 17% year-over-year.

On December 9, the council passed a resolution on the public investment plan in 2023 with an investment of over VND70,000 billion, VND55,225 billion of which would be funded by HCMC.

HCMC needs 25,000 workers by year-end

The Center of Forecasting Manpower Needs and Labor Market Information HCMC (FALMI) has estimated that HCMC’s labor demand in the rest of this year would be around 23,000-25,000 people.

Around 17,000 of them are needed in trade and service, almost 8,000 in construction and a small number in the agro-forest-fishery sector. 

According to FALMI, 21,000 skilled workers will be needed. Of these, 4,200 laborers should be university-educated, 5,700 should be college-educated, and 10,800 should be lower or medium-level educated. 

Untrained part-time employees are also needed during the Tet holiday. 

Nguyen Van Sanh, deputy director of the HCMC Youth Employment Services Center (YES Center), said the center is looking for 3,000 seasonal and unskilled workers.  

Sang stressed that workers should carefully research business information and avoid job brokers. 

Currently, the YES Center implements programs to provide jobs for students and those affected by layoffs.

Competent agencies warn of rampant fake stamps, QR codes, packaging

Well-known products, even anti-counterfeiting stamps, QR codes, and packaging of various brands are counterfeited and sold on many sales channels.

They made the warning at a seminar on "Application of digital transformation in the prevention and combat of counterfeiting" held by the Representative Office of the National Office of Intellectual Property in Ho Chi Minh City in coordination with Vina CHG Company and the Vietnam Invention Association.

At the seminar, leaders of competent agencies warned of sophisticatedly-made fake stamps, QR codes, and packaging of various brands of anti-counterfeiting genuine ones that have been rampant in the market.

Mr. Tran Van Dung, Deputy Director of the Operations Department of the General Department of Market Surveillance, acknowledged that counterfeit goods are a burden to society. Many best-selling items including clothes, shoes, and food in the market are counterfeited. The end of the year is also the time when counterfeit goods and commercial fraud are rampantly sold especially on social networks.

According to preliminary statistics of the National Steering Committee 389 , from the beginning of 2022 until now, competent forces across the country have detected and handled about 100,000 violations. Amongst them, 12,275 are smuggling, and 82,678 cases of commercial fraud, tax fraud and 1,866 cases of counterfeit goods, and intellectual property violations.

Some e-commerce platforms sell double Swiss watches for less than VND1 million. Moreover, genuine clothes, shoes and cosmetics of many world-famous brands cost only hundreds of thousands of Vietnamese dong. "Real items can't have this price," said Nguyen Thanh Binh, Vice Chairman of the Vietnam Invention Association.

Mr. Tran Giang Khue, Head of the representative office of the National Office of Intellectual Property in Ho Chi Minh City, admitted that the prevention of counterfeit goods, counterfeit goods and goods infringing intellectual property rights face many difficulties.

Mr. Nguyen Ngoc Ty, CEO of Non Son Fashion Company, pointed out that e-commerce platforms have significantly contributed to the promotion of fake goods which are a concern of genuine business enterprises. More specifically, Mr. Ty said that some major e-commerce platforms such as Lazada, and Shopee have both advertised and sold genuine products and fake goods.

Vietnam promoting ecological, carbon-neutral farming

The Ministry of Agriculture and Rural Development has cooperated with Nestlé Vietnam to organize the conference ‘Establishing Green Agriculture and Increasing Values’, aiming at fostering ecological farming.

Minister of Agriculture and Rural Development Le Minh Hoan stated in the conference that due to the negative effects of climate change and geopolitical instability, consumers’ choices have significantly changed, asking the agriculture sector to adapt quickly in order to create new values.

This adaptation also shows a heavier responsibility of Vietnam to the international community as to natural resource and biodiversity conservation, emission reduction.

The agriculture sector in the country is gradually switching to the ecological and carbon-neutral farming model.

In order to successfully create such a model, it is necessary for farmers to work with businesses.

Binu Jacob, General Director of Nestlé Vietnam, shared that nearly 2/3 of the greenhouse gas released by this company is from food processing and its indirect activities. Therefore, to fulfill the goal of net zero emission by 2050, the enterprise applies regenerative agricultural practices to reduce its emissions in food processing.

Deputy PM urged to fight counterfeit goods, trade fraud on Lunar New Year

Standing Deputy Prime Minister Pham Binh Minh, Head of the National Steering Committee for Anti-smuggling, Counterfeit Goods and Trade Fraud (the National Steering Committee 389) asked to fight counterfeit and smuggled commodities.

Deputy PM Minh has just signed and promulgated the plan 115/KH-BCD389 against the peak season of smuggling, commercial fraud and counterfeit goods before, during and after the Lunar New Year 2023.

The Deputy Prime Minister requested the Steering Committee 389 of ministries, sectors and local governments to actively grasp the situation by identifying how smugglers transport counterfeit commodities and commercial fraud into the country. Moreover, ministries and local administrations should identify smugglers, routes, areas that smugglers transport goods as well as commodities that contrabandists usually hawk, and how to deter them from illegally bringing commodities into Vietnam.

Responsibilities of central and local agencies and units in the management, inspection and control of areas must be verified. Along with that, each local administration must develop and implement plans to strengthen forces and means to patrol and strictly control border lines and border gates to prevent banned goods, fake goods and poor-quality goods from being smuggled into the country. 

Hanoi’s handicraft export to grow 8% in 2023

Hanoi's handicraft exports are expected to grow by up to 8% by 2023 under a program to promote the city's industrial development in the 2021-2025 period.

Accordingly, the city will create 600-750 products of handicrafts and fine arts for domestic and foreign markets, supporting about 500 enterprises participating in trade fairs at home and abroad.

Besides, some 20 rural facilities would be eligible to receive funds to invest in new, advanced, modern equipment. Some 2,000-2,300 leaders and managers of rural industrial establishments will be trained to improve their management capacity.

The city will also support rural industrial establishments operating in industries with potential and existing strengths to compete in the domestic and export markets by applying scientific and technological advances and developing sustainable products and markets.

Rural industrial establishments will have more opportunities to develop the digital economy and e-commerce and participate in global supply chains.

The city will also enhance online business matching under the new situation. 

In addition, Hanoi will mobilize and effectively utilize all resources from all economic sectors to strengthen the development of industrial and handicraft production, contributing to the economic advancement of rural areas and increasing the rate of industrial, handicraft, and service production, reducing the proportion of agriculture.

Hanoi to open 30 OCOP showrooms in 2023

Hanoi plans to open about 30 showrooms to sell products developed under the national One Commune One Product (OCOP) program next year.

This is a part of the Hanoi People’s Committee’s Plan No. 312 on developing OCOP showrooms associated with craft villages and rural tourism in Hanoi in 2023.

According to the plan, the city will collaborate with other provinces and cities to introduce Hanoi's products and send working groups to localities to exchange OCOP showroom management and operating experiences.

As of December, Hanoi has opened 85 showrooms to promote OCOP products associated with craft villages and rural tourism, according to the Hanoi Department of Industry and Trade.

In addition, the city will build five creative design centers by the end of 2023 to sell unique local products and promote handicraft villages associated with tourism in some districts and towns.

The centers will be located in Bat Trang (Gia Lam District), Duyen Thai (Thuong Tin District), Chuyen My (Phu Xuyen District), Phu Vinh (Chuong My District), and Duong Lam (Son Tay Town).

Currently, Hanoi is leading the country in OCOP products, with nearly 1,700 ranked products from 426 enterprises, cooperatives, and business households across the capital city. This year, the city strives to have another 400 products certified with three stars or more. 

According to the latest plan to implement the city’s OCOP program by 2025, Hanoi targets to complete the assessment and rating for at least 2,000 OCOP products. Each district and town will build at least one center for creative design, introducing and selling OCOP products and promoting craft villages associated with tourism. 

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