Takashi Kawamura, mayor of Japan’s Nagoya city proposed opening a direct air route between Nagoya and Da Nang city to boost cooperation between the two localities at a working session with municipal leaders on December 13.

At the event, Vice Chairman of the municipal People’ Committee Tran Tri Cuong highlighted Da Nang’s socio-economic development with key products being seafood, garments and textiles, leather shoes and building materials.

As the growth nucleus of Vietnam’s central key economic region, Da Nang is shifting its economic structure to service - industry - agriculture and promoting external relations and international cooperation.

Cuong said in the future, the city will organise an event to promote its potential and strengths, provide information to attract investment and promote international cooperation, especially in tourism.

He suggested the Chubu Centrair International Airport in Nagoya and the Da Nang International Airport accelerate the opening of direct flights to facilitate the travelling between the two cities, pledging favourable conditions in this regard.

Over the past years, Da Nang has set up official friendship and cooperation with four cities of Japan, including Yokohama, Kawasaki, Sakai, and Kisarazu. It also has cooperative ties with 15 other Japanese provinces and cities.

Japan is taking the lead in registered investment capital in Da Nang, with more than 1 billion USD injected into 222 projects, accounting for 23.5% of the total FDI projects and 26% of foreign investment capital in the city.

Ample room remains for finance cooperation between Vietnam, Hong Kong

There remains huge room for Vietnam and Hong Kong (China) to cooperate in financial services, which can create capital flows for investment and trade activities in Asia and the world, participants heard at an event held in Ho Chi Minh City on December 13.

At the event, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI) Vo Tan Thanh said that turning HCM City into an international financial centre is not only an inevitable trend but also an demonstration of a dynamic, developed and integrated country.

To do that, it is necessary to build specific mechanisms and policies for the city to attract investment, identify a model to develop, and build a financial technology and digital banking ecosystem, he said.

The city also needs to promote the internationality of financial services and activities by connecting, learning and cooperating with regional and world financial centres, Thanh said, adding that the city's financial services now still mainly serve the domestic financial market and economy.

Meanwhile, Hong Kong (China) is not only an Asian cultural and financial symbol, but also one of the largest financial centres in the world, he said, adding that HCM City can learn a lot from Hong Kong’s financial management model.

Hong Kong’s Secretary for Financial Services and the Treasury Christopher Hui said that economic relations between Vietnam and Hong Kong is steadfast and close. In 2022, Vietnam was Hong Kong's seventh-largest trading partner in trade in goods amounting to 32.7 billion USD. The average annual growth rate was 14.5% from 2018 to 2022.

According to the official, Vietnam was Hong Kong's second-largest supplier of rice. Hong Kong's businessmen are active in doing business and investing in Vietnam. Hong Kong is the fifth-largest foreign investor in Vietnam. 

He said Hong Kong has the strength and capacity to assist Vietnamese companies in expanding their business in the region.

Being a well-known international financial centre, Hong Kong has deep and sophisticated stock and bond markets, as well as a vibrant ecosystem of venture capital, private equity and asset management firms. They are to serve the funding needs of enterprises and governments ranging from business expansion, infrastructure development to green transition, Hui said.

EU enterprises interested in Da Nang’s investment climate: Ambassador

Enterprises from the EU are very interested in the investment environment of Da Nang and wish to cooperate with the central city in the fields of education and training, green energy, and environmental protection, said Ambassador and Head of the European Union (EU) Delegation to Vietnam Julien Guerrier on December 13. 

At a meeting with Standing Vice Chairman of the municipal People's Committee Ho Ky Minh, the EU official said that the EU is now a major partner of Vietnam in various fields, ranking third in trade. In addition, it has signed many comprehensive cooperation agreements with Vietnam in such fields as climate response, security, and defence.

He emphasised that in the coming time, the EU wishes to support Vietnam in realising the goal of building a peaceful country and an open economy with financial, social and environmental sustainability.

With Da Nang, EU businesses want to cooperate in education and training, scientific research, and innovation, he noted.

Minh said that the city now focuses on developing five key areas including tourism and high-quality services associated with resort real estate; seaport and aviation associated with logistics services; high-tech industry associated with creative city building and startups; information technology, electronics, and telecommunications associated with the digital economy; and high-tech agriculture and fishery.

He hoped that Ambassador Julien Guerrier will introduce and coordinate with concerned parties to bring business delegations to Da Nang to learn about the investment environment and cooperation opportunities here.

In 2023, Da Nang’s exports to the EU are estimated to reach 290 million USD while its imports at 138 million USD.

In the 2020-2023 period, agencies and non-governmental organisations from EU member countries committed more than 26 billion VND (1.07 million USD) to 37 programmes and projects in Da Nang city.

Farm exports to China expected to continue uptrend

A farmer in the northern province of Sơn La's Thuận Châu District harvests mango. Việt Nam has witnessed record growth in the export of many farm products to China. — VNA/VNS Photo Hữu Quyết

After a period of stagnation caused by the COVID-19 pandemic, farm produce of Việt Nam has recorded speedy growth in exports to China so far this year, and the shipments are predicted to keep increasing.

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 per cent of the total and posted a year-on-year increase of 18 per cent, becoming the biggest buyer of those products from Việt Nam, according to the General Statistics Office and the Ministry of Agriculture and Rural Development (MARD).

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

Đặng Phúc Nguyên, secretary-general of the Việt Nam 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 161.8 per cent at certain points in 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 per cent 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 per cent, statistics show.

Without market uncertainties, Việt Nam’s fruit and vegetable exports may surpass $6 billion in 2024.

Lê Thanh Hòa, deputy director of the MARD’s Quality, Processing and Market Development Department, said China has licensed 12 fruits and vegetables of Việt Nam 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 Việt Nam.

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 per cent year on year during January-November as reported by the MARD, the Việt Nam Association of Seafood Exporters and Producers (VASEP) said China remains a key market of many fishery products.

About 30 per cent of Việt Nam’s tra fish export revenue currently comes from China. Việt Nam is the seventh biggest supplier of fishery products for this major market this year.

Director of the MARD’s Crop Cultivation Department Nguyễn Như Cương noted apart from fruits, Việt Nam 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 Hoàng 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 exports 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.

Việt Nam 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 Thắng 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 Việt Nam such as green-skinned pomelo, fresh coconut, avocado, pineapple, star apple, lemon, and honeydew melon.

In 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. 

NA to debate 5% VAT on imported fertilisers

Proposals to amend the Value Added Tax (VAT) Law will be debated during the  28th session of the National Assembly's Standing Committee with proponents voicing their opinions that there should be a 5 per cent VAT import tax on imported fertilisers and agricultural supplies.

If approved, they believe the taxes will help secure a stable revenue stream for the State's budget and should be implemented in line with international norms. 

Supporters of the proposals said significant imports of fertilisers, which are not subjected to VAT tax, by the Southeast Asian country in recent years have tipped the balance in the market, creating an unfair advantage against domestically produced fertilisers. 

Domestic fertiliser producers have voiced concerns over the situation, which has prevented them from declaring and deducting input VAT leading to a 5-8 per cent increase in cost and leaving them vulnerable in competition against imported fertilisers.

They said the country's current tax regime discourages local companies from making further investments and purchases of new equipment while hindering the production of high-quality products.

In addition, they claimed the absence of VAT on imported fertilisers also adversely affects the State's revenue and farmers, who must bear the brunt of higher input costs. 

Nguyễn Văn Phụng, former head of the Tax Policy Department under the Ministry of Finance said fertilisers account for a large portion of input cost in agricultural activities, along with machinery, and a 5 per cent VAT tax should be reintroduced.

"A 5 per cent VAT tax on fertilisers makes a lot of economic sense and it can help broaden the tax base, which is in line with the country's Strategy for Reforming the Tax System from 2021 to 2030," he said. 

Phụng added that the current non-tax provision on fertilisers and machinery has caused difficulties for both farmers and manufacturing businesses. He said a unified VAT on imported goods and similar domestically produced goods will help create a more even playing field for all players. 

As Việt Nam is making the transition to a market economy, prices should be determined by suppliers and buyers. In the event domestic fertilisers are unable to deduct input VAT, they will have to add it to production costs, which translates to higher prices for farmers. A similar VAT tax should also be applied to machinery used in agricultural activities, he said. 

Huỳnh Tấn Đạt, director of the Plant Protection Department under the Ministry of Agriculture and Rural Development said Việt Nam requires around 10 million tonnes of fertilisers per year, with a significant portion of it coming in through imports.

He called for a more balanced approach to the country's tax regime to ensure an even playing field for both domestic and foreign suppliers of agricultural materials, especially fertilisers and machinery. 

Vietnam promotes export activities to Chinese market

After a recession period due to the Covid-19 pandemic, from the beginning of 2023, the export of Vietnam’s agricultural product to China has gained strong growth and it is expected to strongly rise in the coming time.

Databases from the General Statistics Office of Vietnam and the Ministry of Agriculture and Rural Development showed that in the first 11 months of 2023, the total export turn-over of the whole agricultural sector of Vietnam reached US$47.84 billion.

Although the figure was around 2.7 percent lower than in the same period last year, the agricultural sector maintains a bright spot in the economy as other industries have suffered from a heavy downtrend including the processing industry, fuel and minerals and so on with a sharp decline in export turnover and the biggest decrease was coal with its downtrend of up to 50.7 percent.

Agricultural products have become the only sector with an uptrend in exports with an estimated turnover of some US$29.5 billion.

During the first 11 months of 2023, China, the United States of America and Japan were Vietnam’s three biggest export markets in agriculture, forestry and fishery products.

Of which, the Chinese market accounted for 23.2 percent with a growth rate of 18 percent over the same period last year while the figures in the American and Japanese markets were 20.6 percent and 17.9 percent, respectively.

Thus, China has become the biggest customer of Vietnam for the products mentioned above.

Deputy Minister of Industry and Trade Phan Thi Thang evaluated that 2023 was a remarkable year for vegetable exports with a turnover of US$5.32 billion in the first 11 months, increasing 74.5 percent over the same period last year, followed by rice with an increase in both quality and quantity with 7.75 million tons and US$4.4 billion, an year on year increase of 16.2 percent and 36.3 percent respectively.

Secretary General of the Vietnam Vegetable and Fruit Association Dang Phuc Nguyen evaluated that 2023 was a “blossomed” year of exporting fruit, especially durian.

The exportation of Vietnamese durian to China has sometimes surged strongly up to 161.8 percent. At the current times, the functional agencies of Vietnam are trying to negotiate with the Chinese side to officially export two products including frozen durian and fresh coconut.

If there is not any fluctuation in the market, it is expected that the export turnover of vegetables in the country in 2024 could reach more than US$6 billion.

Apart from vegetables, rice exports to China have increased sharply during the passing time with an uptrend of 55.2 percent over the same period last year. Besides, exports of cashews, coffee, animal feed and so on to the Chinese market have surged strongly from 11.4 percent to 42.3 percent.

Negotiations of protocols for official export

According to Deputy Director of the Department of Quality, Processing and Market Development under the Ministry of Agriculture and Rural Development Le Thanh Hoa, China has granted official export permission for 12 varieties of vegetables from Vietnam.

In addition, the General Administration of Customs of China has also announced a list of over 800 Vietnamese seafood processing enterprises meeting the export requirements to China and approved product codes for 40 facilities packaging live crab and lobster, five ones packaging black tiger shrimp and white-leg shrimp, 128 types of products and 48 aquatic species of Vietnam.

This is a condition for Vietnamese businesses to access and continue to promote exports and exploit the market with 1.4 billion people.

Regarding seafood products, although the Ministry of Agriculture and Rural Development reported a 18.9 percent year on year decrease in the first 11 months of the year, the Vietnam Association of Seafood Exporters and Producers identified that China has maintained the main export market of various seafood products of Vietnam.

At the current times, 30 percent of the Vietnamese pangasuis export value has been gained from the Chinese market. This year, Vietnam is the seventh biggest provider of seafood to China.

According to Director of the Department of Crop Production under the Ministry of Agriculture and Rural Development Nguyen Nhu Cuong, apart from fruit, Vietnam has also exported vegetables and agricultural products to China. Due to persistent torrential rains and floods in China’s localities this year, the country has had a huge demand for imports from Vietnam.

However, Deputy Minister of Agriculture and Rural Development Hoang Trung stated that to stably export fruit, vegetables and agricultural products to China, it is important to strengthen planning, issue planting area codes, ensure the quality of products to boost official export activities.

The Ministry of Agriculture and Rural Development is collaborating with relevant ministries and agencies to strengthen negotiations to sign protocols for exporting agricultural products to China as well as potential markets.

During the passing time, various Vietnamese agricultural products were exported to China with record high turnover growth thanks to protocols of official export.

Vietnam has had 13 agricultural products being officially exported to China, comprising bird's nest, sweet potato, dragon fruit, longan, rambutan, mango, jackfruit, watermelon, banana, mangosteen, lychee, passion fruit and durian.

In November, official batches of bird’s nests from Vietnam have been exported to the market.

In order to continue to open up export markets for agriculture, forestry and fisheries, Deputy Minister of Industry and Trade Phan Thi Thang also affirmed that the ministry will closely coordinate with the Ministry of Agriculture and Rural Development to negotiate with Chinese authorities to additionally open export markets for other Vietnamese fruit and vegetables products such as green-skin pomelo grapefruit, fresh coconut, avocado, pineapple, star apple, lemon, melon and so on.

In addition, the functional forces of the two sides will work and regulate and speed up goods customs clearance in the border gates areas between Vietnam and China to rapidly export seasonal agricultural and aquatic products to China. They will work to switch it to official export.

The Vietnam Vegetable and Fruit Association proposed the Ministry of Industry and Trade and the Ministry of Agriculture and Rural Development continue to negotiate with the General Administration of Customs of China toward the protocol for rest fruits in order to shorten procedures checking at border gates and add more products to the list of Vietnamese agricultural products to be exported to China.

HCMC promoting PPP investment projects

The HCMC People’s Council has just approved a list of 41 PPP investment projects in the fields of healthcare, education, culture, and sports.

Since 2022, HCMC has continuously greenlighted various investment projects in the Public-Private Partnership (PPP) form. However, it seems that except for the project name and total needed capital amount, other related information about these projects has not been well-prepared to persuade private national and international investors.

In the latest meeting of the HCMC People’s Committee this December, the city leaders discussed the matter and pinpointed weaknesses or inconsistency among those projects. Some have not checked the comparability to current planning and available land, others have not satisfied existing legal conditions.

Therefore, before submitting the 41 PPP investment projects above for approval, HCMC had had relevant state departments and agencies in charge of those projects carefully consider the feasibility and a suitable PPP investment model.

The HCMC People’s Committee commented that the urge to apply PPP models in the healthcare, education, culture, and sports fields is rather strong when the city budget is still limited. In the 2021-2025 period, it can only allocate 7.17 percent to education, 8.61 percent to healthcare, and 2.28 percent to culture and sports.

Hence, the city has actively mobilized investments from the community. The largest was an event in April 2023 in Cu Chi District and Hoc Mon District, attracting the participation of more than 500 domestic and foreign investors to raise a total capital of US$17 billion. Binh Chanh District and Nha Be District have both held similar events to attract investments in the fields of commerce, tourism, and agriculture.

Sadly, even though many investors have expressed their interest in several projects, they were severely discouraged when discovering that necessary conditions to start those projects cannot be met.

One huge obstacle to PPP projects is the planning matter. Secretary of the Hoc Mon District Party Committee Tran Van Khuyen shared that land planning is one huge barrier to any businesses wishing to pour money in new projects as well as the life of local residents. He cited that about 30 investors displayed their interest in the 23 new projects of the district, yet they felt hesitant discovering that those projects encounter planning issues.

Secretary Khuyen proposed that HCMC should focus all efforts to adjust its master planning as soon as possible. The leaders of Binh Chanh District also said that the current district planning, devised in 2012, shows various inadequacies and is in need of modifications for new projects to carry out.

Meanwhile, Chairman of Binh Chanh District People’s Committee Vo Duc Thanh shared an effective way to mobilize social resources. He informed that his district has 88 land lots saved for education. Their information is continuously updated and published for any interested investors. There is also a special team in charge of investment promotion to offer help when needed and minimize trouble for potential investors.

Similarly, Nha Be District has prepared all necessary information for highly feasible projects that satisfy current planning for investors.

Director of the HCMC Planning and Architecture Department Nguyen Thanh Nha said that in about a month, HCMC is going to submit the adjustment of the city’s master planning to the Construction Ministry and the Prime Minister for approval. It is expected that in the first month of 2024, the city will review and modify local planning pieces accordingly. After a year, the comprehensive zone planning will be ready.

Another obstacle lies in the proportion of state budget in each PPP project. The applicable PPP Law stipulates that the maximum proportion is 50 percent, which is rather troublesome in reality. Take traffic projects as an example. Those for remote areas cannot attract much interest of investors while the ones in large urban areas need a huge sum of money for land clearance tasks. The 70-75-percent proportion of state budget would be more logical according to the Planning and Investment Ministry.

Resolution No.98/2023/QH15 about piloting a number of mechanisms and policies for the growth of HCMC allows the city to apply a Build-Operate-Transfer (BOT) contract to projects of upgrading existing roads with a state budget proportion of no more than 70 percent. This is welcomed as a timely solution to boost the launch of many PPP projects in the city.

Ample room to develop Vietnamese clam exports

As clams are one of the main aquatic products of Việt Nam and a popular product in many markets such as the Europe, the US, Japan, Malaysia and Australia, in recent years, many localities and businesses have made strong investments in sustainable production in order to achieve international certifications, creating a foundation to expand exports.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), Việt Nam's bivalve mollusk export turnover in the first nine months of 2023 reached US$98 million, down 11 per cent over the same period last year. Of which, clam shipments alone reached $62 million, a fall of 19 per cent.

The top nine export markets for bivalve mollusks in the country during the period included Spain, Italy, Portugal, Japan, America, and China.

In addition, Vietnamese clam products have presented in nearly 60 markets worldwide. With the advantages of domestic production and significant potential for consumption markets, the clam industry is expected to reach new heights.

The Department of Fisheries under the Ministry of Agriculture and Rural Development said that Việt Nam has a variety of shellfish such as clams, blood cockles, snails, scallops and oysters, among others. Clams are also a key commodity that brings economic value and development potential. They are raised a lot in provinces such as Nam Định, Ninh Bình, Thanh Hóa, Bến Tre, Tiền Giang and Trà Vinh.

Many businesses are focusing on investing in technology and constantly improving quality, including Lenger Seafood Vietnam Co., Ltd.

The Dutch Lenger SeaFood Group has surveyed six clam farming provinces in Việt Nam. Realising the long-term clam farming potential of Nam Định Province, it decided to build a clam processing factory and establish Lenger Seafood Vietnam Co., Ltd. Since then, Lenger Seafood Vietnam has continuously tried and accompanied local people and authorities to promote the development of clam farming.

According to Tống Thị Lương, head of the Aquaculture Desk under the Nam Định Fisheries Sub-department, Lenger Seafood Vietnam Co., Ltd. is the first unit to invest in processing commercial clams in Nam Định province for export.

Starting from 2019, the Nam Dinh Fisheries Sub-department has worked with other units in the industry to coordinate and support Lenger Seafood Vietnam in linking with farming households in Nghĩa Hưng District to reorganise production towards sustainable clam farming.

By 2020, Lenger Seafood Vietnam's farming area was certified as the first sustainable clam farming area according to ASC standards in the world. This is a favourable condition to open new consumption markets for clams.

Lương added that Nam Định Fisheries Sub-department has accompanied and supported Lenger Vietnam in applying high technology to the production process. In addition, the two sides have jointly built a high-tech clam seed production project and a clam farming model in ponds. The company assesses that this project will help improve the quality of clam varieties from the initial production stage, minimising difficulties and risks when raising clams on tidal flats.

According to Lương, the Nam Định Fisheries Sub-Department and the Nam Định Agro-Forestry-Fisheries and Fisheries Quality Management Sub-Department have deployed monthly environmental monitoring in concentrated clam farming areas.

At the same time, they have implemented a food safety monitoring programme in collecting bivalve mollusks. From there, Lenger can choose and evaluate product quality more accurately, helping improve the sale of clam products.

Nguyễn Hồ Nguyên, general director of Lenger Vietnam Seafood Co., Ltd., said that the company is one of the first to achieve ASC certification for Vietnamese clams. Currently, Lenger Vietnam has built a 500ha clam beach, and is developing other farms to support this important certification.

The company currently exports clams mainly to the European market, with the main products being frozen, vacuum-sealed whole clams and canned clam meat. Every year, the company supplies to the market more than 8,000 tonnes of frozen clams, with revenue reaching about $15 million a year. It is expected that by 2024, export output will reach 10,000 tonnes a year, he said.

Đinh Xuân Lập, deputy director of the International Cooperation Center for Sustainable Aquaculture and Fisheries (ICAFIS) under the Vietnam Fisheries Association, said that Vietnamese clams, especially the Myratrix Lyrata white clam, have great competitiveness in the world market.

Deep-water clam farming is a great opportunity for Việt Nam to expand its area and increase organic production. Vietnamese white clams can be processed into a wider variety of products to suit the global market. 

Consumer spending slows, traders in traditional markets promote online sales

Consumers are tightening their spending, causing purchasing power loss. Facing this challenge, small businesses in some traditional markets in Ho Chi Minh City have made efforts to attract consumers by promoting online sales.

Yesterday afternoon, several traders at a clothing stall located in row A of An Dong market in An Duong Vuong Street of District 5 were instructing each other on how to make video live streaming to increase their sales. In the small space, many middle-aged customers are choosing pants and shirts of all kinds. The atmosphere in the market is so bustling that it was attracting lots of customers who were roaming in the market come to see.

The elderly woman in Tan Binh District who is a new customer of the Thai Trang stall revealed that she previously used to buy clothes at shopping centers or from her acquaintances. But once, she watched the video livestreaming of the Thai Trang stall in An Dong Market with many beautiful designs at affordable prices; so she went to the stall to choose clothes. Stall owner Ms. Thai Trang said that the stall sales sometimes dropped by 70 percent. Ms. Trang has her garment factory, specializing in designing for wholesale or retail orders.

Trang was worried because she did not want to let workers become unemployed, she learned how to make video livestreaming to increase sales by asking relatives or workers to play as streamers. Previously, she spent about VND1.5 million renting a model for performing five products, but she now cut down the expense by focusing on sales via social networks.

Customers who follow her live streaming are informed of fabric material and styles; subsequently, wholesale customers and retail customers gradually increased their orders after a few weeks of piloting the live stream, Ms. Thai Trang said. Those who come to her stall in An Dong Market are given a piece of advice on what style is suitable with them.

Currently, not only small traders at An Dong market, but their peers in other markets such as Binh Tay in District 6, and Tan Binh in Tan Binh District are also practicing selling on social networking platforms such as Zalo, Facebook, YouTube, and TikTok.

A 70-year-old trader Ung Thi Lien selling confectionery for about 50 years at Binh Tay market in District 6 said that sales performance in the market is poor whereas purchasing power through social networks has increased. Ms. Lien as well as some stalls that apply sales via social networks have seen a gradual increase in customers.

Some small businesses in the Ben Thanh market were also trained by TikTok to sell through live streaming to attract customers. A representative of the market management board said that the number of small businesses applying technology to adapt to new trends is increasing; thankfully, sales and revenue have gradually improved.

Similarly, traders at the Binh Tay market are familiar with selling goods through social networking sites while livestreaming at the market is not so popular because shop assistants are still confused about using new technology.

Economic experts say that the application of modern technology in advertising and sales is an inevitable trend. However, they also emphasized the check of the quality and origin of goods, to protect consumers’ rights.

Mr. Nguyen Ngoc Hoi, Deputy Director of the Ho Chi Minh City Department of Information and Communications, said that products and services are increasingly widely promoted on major commercial platforms, helping to pave the way for the promotion of the digital economy. However, online sales are also considered a performance, highly interactive and the government must take the lead to help traders comply with legal regulations.

Representative of TikTok Vietnam Nguyen Lam Thanh acknowledged that the program to promote products and services on e-commerce platforms with the government’s support is an opportunity for small businesses to get familiar with the form of selling through TikTok as well as other social networking sites, gradually creating jobs and increasing revenue.

Deputy Director of Ho Chi Minh City Institute for Development Studies Truong Minh Huy Vu also evaluated that e-commerce on social networks including video livestreaming to increase sales, has shown the potential for market share growth.

For instance, the recent broadcast of OCOP (one commune, one product program) in Can Gio outlying district with the participation of famous TikTokers, KOLs, and KOCs across the country, captured customer tastes, helping revenue increase about 10 times more than expected after only 5 hours of broadcasting.

Experts said e-commerce including online sales is a potential business industry that can achieve tens of billions of dollars in Ho Chi Minh City. For traditional markets, quick adaptation and timely business transformation are the only way out in the context of declining purchasing power. Additionally, small businesses also need to proactively improve service quality and ensure clear origins of commodities to retain customers.

Local manufacturers under tough competitive pressure

Although domestic retail sales of goods in 11 months reached nearly VND6 quadrillion (US$246 billion), Vietnamese manufacturers are facing currently great competitive pressure from the influx of imported goods.

The news was released at a forum to promote production and consumption of Vietnamese goods yesterday in Hanoi organized by the Ministry of Industry and Trade.

At this forum, Deputy Director of the Ministry of Industry and Trade's Domestic Market Department Le Viet Nga announced that after more than 14 years of carrying out the campaign to call for the support of Vietnamese consumers in using Vietnamese goods, Vietnamese goods have been consumed better especially essential goods and consumer goods.

Many made-in-Vietnam products are currently being displayed in distribution networks including traditional channels and modern channels.

Ms. Le Viet Nga said that domestically produced goods currently account for 80 percent-90 percent of goods in supermarket chains of some domestic enterprises such as Co.opmart ( with 90 percent), Winmart (with 90 percent), BRG Retail (from 80 percent to 90 percent).

Foreign-invested distribution channels such as Aeon, Central Retail, MM Mega Market, and Lotte Mart also make many contributions to the community where they operate their businesses by purchasing local products and supporting the promotion of consumption of domestic commodities, specialties in localities (OCOP) products and local staple goods.

Moreover, these foreign-invested distribution channels have been keeping the proportion of Vietnamese goods at a high level in their supermarkets and retailers.

The country's total retail sales of goods and consumer service revenue in November were estimated at VND552,700 billion, up 1.4 percent over the previous month and up 10.1 percent over the same period last year. In the first 11 months of 2023, total retail sales of consumer goods and services at current prices are estimated to reach more than VND5.6 million billion, an increase of 9.6 percent over the same period last year.

The domestic market has contributed to the growth of the manufacturing and processing industries, as well as the agricultural, forestry and fishery production and processing industries. This helps create more employment and ensure national social security, said the Deputy Director of the Department of Domestic Market.

However, Ms. Le Viet Nga also said that domestic manufacturers of consumer goods are in the face of great competitive pressure as an influx of imported products is being displayed in the domestic market after new free trade agreements including CPTPP and EVFTA officially take effect. This is also a huge challenge for local producers in the context of general integration.

She added that the proportion of imported goods in the distribution system, especially cross-border e-commerce channels, will be likely to increase in the near future when digital and e-commerce platforms are growing rapidly and continuously and will dominate the market, with a growth rate of more than 20 percent per year.

In addition, many online and offline foreign retail chains have been expanding their stores and warehouses in Vietnam to distribute imported goods, especially cosmetics and fashion apparel (textiles, footwear), functional foods and high-end foods, furniture and household appliances, products for mothers and babies

Vietnam to import 26 million tons of coal for 2024 power production

Vietnam will import 26 million tons of coal next year for coal-fired power plants, according to a decision of the Ministry of Industry and Trade.

This decision is part of the broader electricity production strategy outlined for 2024. Power production in 2024 is expected to require 74.3 million tons of coal, but domestic suppliers could meet 65% of the volume.

The ministry’s power supply plan mandates thermal power plant investors to arrange sufficient coal reserves for power generation. The strategy aims to secure a stable coal supply for coal-fired power stations not only in 2024 but also in the subsequent years.

Thermal power plant operators are told to regularly update their electricity supply plans and national power system operations. This proactive approach allows for timely adjustments to coal preparation plans, minimizing the risk of disruptions and potential power shortages.

Vietnam National Coal and Mineral Industries Group, DongBac Corporation, and other coal suppliers have been entrusted with the task of proactively boosting production, importation and processing to ensure a consistent and sufficient supply of coal for power production in 2024 and beyond.

JETRO survey finds 57 per cent of Japanese companies plan to expand in Vietnam

A survey on the business conditions of Japanese companies operating overseas was conducted by JETRO in Hanoi and Ho Chi Minh City from August to September.

It included Japanese-affiliated companies with direct and indirect Japanese investment of 10 per cent or greater, and the branch and representative offices of Japanese companies in Vietnam. JETRO received valid responses from 849 businesses.

About 47 per cent of manufacturing and 65.5 per cent of non-manufacturing companies planned to expand, down 7.3 and 0.4 per cent on-year, respectively. Among the reasons for the expansions, Japanese companies are targetting consumption in the domestic market and increased exports.

"Although expansion ambitions remain high, Vietnam is the only country among the six key ASEAN nations to see a decreasing percentage compared to the previous year," said JETRO.

The percentage of companies that expect to generate operating profits in 2023 stood at 54.3 per cent, which is 6.6 per cent lower than the ASEAN average. From 2017 to 2019, the percentage was above the ASEAN average of 65 per cent.

The percentage of profitable companies in the manufacturing sector was 61.5 per cent, an increase of 0.4 points compared to the 2022 survey. The percentage of loss-making companies in the manufacturing sector climbed by 2.7 per cent to 22 per cent.

There were increasing numbers of profitable companies producing machinery and spares, textiles, electrical components, and electronics. Meanwhile, figures were lower for timber products, paper, and printing.

The percentage of companies turning a profit in the non-manufacturing sector was 46.7 per cent, while the figure for loss-making firms was 27 per cent, down 10.9 and 4.4 per cent, respectively. The number of profitable companies in the travel and amusement sector increased, whereas fewer sales, trade, and wholesale companies generated profits.

According to the survey, 32 per cent of companies said that their operating profit for 2023 would increase on-year, which is 15.6 per cent lower than in the 2022 survey. The percentage of companies with the opposite outlook stood at 35.7 per cent, an increase of 13.1 points.

Rising demand in the export market was the top reason for the increasing operating profit forecast for the manufacturing sector. The main factor driving non-manufacturing firms was domestic consumption, with improvements in productivity and reductions in labour costs also featuring prominently.

The most common reasons for the decreased operating profits were related to shrinking demand. Meanwhile, in the 2022 survey, they were rising raw material, parts procurement, and labour costs, as well as the effects of exchange rate fluctuations.

Looking at the forecast for 2024, 50.4 per cent of Japanese companies expected an increase on the back of the improvements seen this year.

NIC works to strengthen human resources training for semiconductor industry

The National Innovation Centre (NIC) is building a project on developing human resources for the semiconductor industry as part of the country’s efforts to provide 50,000 engineers for the industry, according to NIC Vice Director Vo Xuan Hoai.

The centre is working with semiconductor chip giants in the world to explore their demands, thus giving forecast in human resources demands in the future, especially for those who are operating in Vietnam or keen on investing in Vietnam, Hoai told the Lao dong (Labour) newspaper.

Many training stages at universities have been designed, focusing on ensuring quality, he said, stressing that Vietnam is facing a shortage of chief engineers for the semiconductor sector.

Meanwhile, the centre has worked with a number of universities such as the Hanoi University of Science and Technology, Vietnam National University-Hanoi and Vietnam National University-HCM City as well as other university with engineering faculties to assess their training capacity, he said.

The NIC Vice Director revealed that the centre is linking with reputable universities in the world, including Arizona University and Purdue University in the US to learn their experience and send Vietnamese students to the facilities for training.

During its working session with businesses, leaders of the centre proposed that they support Vietnamese students, engineers and labourers to practice.

Currently, the NIC has cooperated with Synopsys and Cadence groups of the Switzerland to provide chip design copyright to more than 20 universities of Vietnam.

Recently, the Ministry of Planning and Investment has asked for the formation of a semiconductor chip design training centre, in which shared platforms have been developed for universities, said Hoai.

Hoai said that the country is also preparing other conditions for the growth of the semiconductor sector, with the National Assembly’s approval of a resolution on the formation of an investment fund to support businesses in investing in the high technology area, including the semiconductor industry.

This is an important foundation for the country to assist local firms when the country applies the global minimum tax from 2024.

In terms of infrastructure, Hoai held that the country has advantages from the 2,000-km North-South Expressway, along with seaports and international airports.

Vietnam has also made preparations in energy sources to welcome high-tech firms, especially those in the semiconductor industry.

Measures sought to promote, expand export markets for Southeastern region

The Ministry of Industry and Trade and the People's Committee of the southern province of Binh Duong on December 13 organised a conference to promote trade and expand import-export markets for the Southeastern region.

More than 300 representatives from the six provinces and cities in the region, agencies, businesses, and international partners attended the event.

Participants discussed measures to step up trade promotions, linkages in production, and market expansion as well as support for businesses to effectively take advantage of free trade agreements, and diversify markets and supply chains.

Experts and representatives of major international partners from the US, Brazil, the EU, and China shared information about import and export market opportunities for goods in the Southeastern region.

They also discussed the trend to develop green, environmentally friendly products, and opportunities to export consumer goods, garments, and footwear to the South American market.

Speaking at the event, Deputy Minister of Industry and Trade Phan Thi Thang said that the ministry will continue to accompany and coordinate closely with authorities of localities in the region and support local businesses to develop import-export markets, promote the region's strong products and goods in domestic and foreign markets.

Within the framework of the event, typical products of the region were displayed.

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