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

Phu Quoc tourism expected to rise

The number of tourists to Phu Quoc Island in the southern province of Kien Giang is expected to sharply increase in the coming time, said Nguyen Vu Khac Huy, vice chairman of the Kien Giang Tourism Association.

According to Huy, traveller numbers to Phu Quoc have recovered and will rise considerably during Christmas and New Year. Flights from Taiwan, China and Mongolia to Phu Quoc will begin operating from January 16. Meanwhile, the flight frequency on air routes from South Korea, Malaysia and Hong Kong to Phu Quoc has increased.  

Huy, however, added that airfares of domestic flights to Phu Quoc have remained high. This was why travel numbers to Phu Quoc over recent times had fallen. In addition, flights from Can Tho and Nha Trang to Phu Quoc have been suspended for months.

According to the Kien Giang Tourism Department, Kien Giang is expected to receive 8.5 million visitors this year, up 5.3 percent on-year. Of the figure, foreigners accounted for 600,000, up 203.3 percent.

Bui Quoc Thai, director of the provincial Tourism Department, said that Kien Giang has encouraged tourist firms to develop new products.

Kien Giang wants 9.2 million tourists, including 680,000 foreign arrivals, with a total revenue of VND20 trillion (USD826.44 million).

Enterprises cut forecasts due to gloomy outlook

Although business results in the fourth quarter of 2023 show signs of improvement, they are not as positive as expected. This is causing many enterprises to lower their revenue and profit targets for 2023 when there is less than one month left until the end of the year.

After witnessing poor performances in the first half of 2023, many businesses expected the situation to improve in the second half of the year.

However, data from SSI Research showed that in the third quarter, the total profit after tax of listed businesses declined by 5 per cent year-on-year after continuously recording a sharp double-digit decrease in the previous three quarters. 

In the first nine months of 2023, total profits of businesses dropped by 15.8 per cent from last year. 

Despite some improvements in the business situation in the fourth quarter, the performances of most companies were not as positive as expected in October and November. 

As a result, many businesses have to cut their business targets for 2023.

Most recently, Petrolimex Gas Corporation (PGC) on December 5 held an extraordinary General Meeting of Shareholders to approve the reduction of its profit before tax target from VNĐ168 billion (US$6.9 million) to VNĐ135 billion, equivalent to a decrease of nearly 20 per cent from the plan approved by the 2023 Annual General Meeting of Shareholders.

In the gas market, the reference price fluctuates strongly and continuously during the period, causing huge losses in inventory differences and making it difficult to ensure supplies for liquefied petroleum gas (LPG) companies, including PGC.

Strong competition from alternative fuel sources, as well as from businesses in the LPG production and distribution industry, also affects the growth of PGC's gas output. 

Similarly, Hải Phòng Petrolimex Transportation & Services (PTS) recently had a resolution to collect shareholders' opinions to approve adjustments to its 2023 business plan.

Specifically, the company plans to reduce the total revenue target to nearly VNĐ399 billion, a decrease of 16 per cent from the previous plan, while its profit before tax target is lowered by 95 per cent to VNĐ500 million, the lowest level since 2013. The dividend level was also adjusted down from 8 per cent to 2 per cent.

According to PTS, the adjustments are based on the company's business results in the first nine months of the year and market forecasts for the last months of the year.

For the first nine months, its revenue reached only VNĐ92 billion, down 15 per cent over last year, with gross profit margin narrowing to 8 per cent. During the period, it posted a loss of VNĐ779 million.

The company also said the operation of the coastal fleet was not effective, as Nghi Sơn oil refinery stopped operations for maintenance for 55 days.

Previously, in mid-November, Petrolimex Petrochemical Corporation (PLC) passed a resolution to adjust the 2023 revenue target by 5.7 per cent compared to the previous plan to nearly VNĐ8.4 trillion. Its profit before tax and after tax targets are also expected to decrease by 30 per cent compared to the original plan, to VNĐ140 billion and VNĐ112 billion, respectively.

Many export businesses are facing declines in export orders, making them struggle to achieve business targets set for 2023.

At the end of November 2023, Vinatex announced a resolution to adjust its production and business plan for 2023. Accordingly, the leader of the textile and garment industry cut this year's consolidated profit by 39 per cent to only VND370 billion. Its consolidated revenue is also adjusted down 5.7 per cent to VNĐ16.5 trillion, from VNĐ17.5 trillion.

The adjustments are due to the declines in production and business results of the company in the first nine months of the year. In particular, its net revenue and profit after tax fell 14.2 per cent and 81.6 per cent on-year, respectively. 

In addition, the market forecast for the industry in the last months of 2023 is not as expected when the fourth quarter's orders of the majority of Vinatex's units are not enough.

In the seafood export industry, Sao Ta Foods JSC (FMC) has cut its total revenue target for 2023 to VNĐ4.87 trillion and profit before tax to VNĐ300 billion, down 17 per cent and 25 per cent from the original plan, respectively. This profit target is also 6 per cent lower than last year's performance.

Meanwhile, for the steel industry, Vietnam Steel Corporation (VNSteel) has approved an adjustment to reduce the parent company's profit before tax target from VNĐ52 billion to just VNĐ1 billion after a loss of nearly VNĐ200 billion in the first nine months of 2023.

In other industries, Vissan and Danameco Medical also announced to lower this year's results by 16 - 24 per cent from the previous plans. 

Conference ponders over how to develop sustainable rice value chain

Improving farmers’ incomes and switching to green production to adapt to climate change are among the things Việt Nam needs to do make its rice farming sustainable, a conference heard in Hậu Giang Province on December 13.

Attendees at the “Developing the responsible and sustainable Vietnam rice value chain” conference agreed about the country’s outstanding accomplishments in rice production in recent years, which have ensured national food security and made it one of the world's top exporters of the grain.

Deputy Minister of Agriculture and Rural Development Hoàng Trung said Việt Nam grows 26-28 million tonnes of rice a year, 20 million for domestic consumption.

Some 7.8 million tonnes were exported in the first 11 months of this year for a record US$4.4 billion, and the numbers would keep rising, he said.

But delegates said the sector faces many challenges like the current volatility in the global market, changes in consumer tastes and the impacts of climate change, requiring it to improve rice quality, reduce costs, adapt to climate change, reduce greenhouse gas emissions, expand markets, and build a sustainable brand for itself on the international market.

Cao Đức Phát, Chair, Board of Trustees of the International Rice Research Institute, said there are three major challenges the global rice industry faces: the need to increase production for a growing population, improve rice farmers’ incomes and adapt to climate change while reducing greenhouse gas emissions.

Việt Nam too faces the latter two, he said.

“If there are no changes, the rice industry will not be able to develop sustainably.”

A project to grow high-quality, low-emission rice on one million hectares in the Mekong Delta by 2030 launched by the Ministry of Agriculture and Rural Development on December 12 marks great progress for the sector, he said.

Vietnamese farmers have around 0.6 hectares of land per household on average. They need to be trained in new production methods in line with market requirements and supported with getting bank loans, he added.

Lê Thanh Tùng, deputy director of the Crop Production Department, said in the Mekong Delta rice production faces challenges related to water availability since floods no longer occur like clockwork like they used to and saltwater intrusion is increasing.

So it is necessary to invest more in infrastructure, adopt comprehensive technical solutions to reduce emissions and trade carbon credits, he said.

Assoc Prof Dr Nguyễn Phú Son of Cần Thơ University listed 10 main bottlenecks in developing a rice value chain, including the lack of sharing of risks and benefits between various stakeholders in it, loose linkages between farmers and businesses, small scale of production, and the lack of a large database.

The lack of the database affects the ability to forecast the market and manage the sector well to optimise the gap between supply and demand, he said.

To resolve the bottlenecks and develop the rice value chain, he called for developing concentrated growing areas for high-quality rice towards sustainability and green growth, developing sustainable linkage models between stakeholders, cutting costs to improve competitiveness, and researching to develop Việt Nam’s common rice varieties and brand.

Others called for embracing mechanisation since the workforce in rice production and supporting industries is ageing.

Foreign delegates shared their experiences, lessons and initiatives and expressed support for million-hectare programme.

The conference was organised by the Ministry of Agriculture and Rural Development and Hậu Giang Province within the framework of the 2023 Việt Nam-Hậu Giang International Rice Festival.

HCM City’s second Flash Sale Holiday to gather over 400 well-known brands

HCM City will host the second Flash Sale Holiday in 2023, a large-scale promotion event, from December 15-17 at the Union Square shopping mall in District 1, with the participation of more than 400 well-known domestic and global brands.

New Balance, Adidas, Lacoste, Michael Kors, Reebok, Guess, Hugo Boss, Tommy Hilfiger, Furla, Origani, Essance, Pierre Cardin, Paul Smith, L'oréal, Puma, Anne Klein, Skechers, Fossil, Owen, Vera, Casio, Bolova, and Ecco are among the participants, according to the city Department of Industry and Trade.

They will offer discounts of up to 90 per cent on various products. In addition, customers and visitors could also get additional promotions or gifts by making cashless payments and participate in a lucky draw programme with prizes being thousands of products of prominent brands, Nguyễn Khắc Hiếu, deputy head of the department’s Import - Export Management Office, said.

The inaugural Flash Sale Holiday held from September 8-10 in Phú Nhuận District, with the participation of more than 120 major domestic and international brands selling fashion items, handbags, suitcases, shoes, cosmetics, perfumes, watches, jewelry, and accessories, attracted a large numbers of customers and generated a total sales of over VNĐ95 billion (US$3.9 million), Hiếu said.

Based on its successes, the department has decided to organise the second edition of the event this year in collaboration with the District 1 People’s Committee, he added.

Nguyễn Nguyên Phương, the department’s deputy director, said the Flash Sale Holiday is among the highlights of HCM City’s Shopping Season 2023 promotion programme that runs from mid-November to the end of December.

The programme seeks to stimulate consumer demand, contribute to promote growth in total retail sales of goods and services and attract more domestic and international tourists to visit and shop in the city.

This is the first year that HCM City is organising a promotion event featuring well-known brands and has got a relatively large number of businesses and brands to participate, Phương said.

He expected that the Flash Sale Holiday will become an annual event to help develop the city into a national and regional shopping hub.

OCOP promotes entrepreneurship, formation of value chains

The One Community One Product (OCOP) programme has contributed significantly to promoting the strong start-up movement in Việt Nam and driving the transformation of production towards establishing sustainable value chains.

OCOP was approved by Decision 490/QĐ-TTg dated on May 7, 2018 with three targets including developing production and business forms; restructuring the economy to improve income and living standards; and industrialising and modernising the agriculture and rural sector.

To date, all 63 provinces and cities across the country has developed a diversity of OCOP products, including 10,322 products with three-star or higher rating. Especially, 42 products are five-star rated. There are 5,361 OCOP producers.

The Hồng (Red) River Delta accounts for 31.36 per cent of the total number of OCOP products, the northern mountainous region 19.8 per cent and the Cửu Long (Mekong) River Delta 18.4 per cent.

At a recent workshop on promoting consumption of OCOP products, Nguyễn Anh Tuấn, Deputy Director of the Domestic Department under the Ministry of Industry and Trade, said that market development is an important solution to encourage participation in developing OCOP products.

“Vietnamese consumers have formed the habit of choosing reputable brands. Therefore, it is necessary to build and expand sale points to promote OCOP products, which plays an important role in bringing OCOP products closer to consumers,” Tuấn said.

Besides the abundance in supply, the quality of OCOP products is improved significantly together with transparent traceability. Many products with eye-catching designs are successful in promoting the advantages of indigenous resources and traditional culture, and with quality highly appreciated by consumers.

OCOP gradually affirms their value and reputation in the market with growing revenue even in the difficult times due to the COVID-19 pandemic, contributing to improving income and quality of life for people in urban, rural and remote areas, and ethnic minorities, he said.

However, Tuấn pointed out that the sales of OCOP products face certain difficulties as there are only few processed products, production scale remains small and scattered, coupled with low governance capacity of producers as well as limited research and development capacity.

“With limited competitiveness, the implementation results of the OCOP programmes are still below their potential. The competitive advantages of provinces and cities, especially the promotion of OCOP products, have not been fully exploited, especially in the post-pandemic context of weak domestic purchasing power,” Tuấn said.

Pointing out difficulties in developing OCOP products, Đặng Quý Nhân, Deputy Manager of OCOP Programme under the Central Coordination Office on New Rural Development, the Ministry of Agriculture and Rural Development, said that the number of OCOP products increases rapidly recently but lacks sustainability.

“Producers of OCOP products have not been proactive enough, especially in innovation and product development. The results are still limited compared to the potential,” Nhân said.

“The trade promotion is still fragmented, lacks uniformity and fails to create highlights or build originality for products.”

Another problem is related to the management and supervision of OCOP products after recognition. OCOP producers’ access to science and technology is limited. Thus, it is difficult for them to promote sales via e-commerce platforms, to shopping centres and supermarkets, Nhân said.

“If you want to sell OCOP products in big cities, you must have e-commerce channels and social networks to introduce products,” he said.

The Government should provide support in training to enhance the capacity of OCOP producers, thereby promoting innovation to create unique products which meet consumers’ requirements, he said. “It will take time, but it is a must-do,” he stressed.

It is vital to provide support to OCOP producers in accessing e-commerce platforms in the context of booming e-commerce, Nhân said, urging e-commerce platforms to join with the Government to provide support to farmers through training which would facilitate the creation of new products with better quality and originality.

“I hope that management agencies, local authorities and enterprises will cooperate to provide support to farmers through creating a separate mechanism and playground for OCOP products. Specifically, there should be separate areas designated for displaying OCOP products at supermarkets, shopping centres and e-commerce platforms to promote products,” Nhân said.

The aim is that everyone will benefit, including producers, distributors and consumers, from the development and quality of OCOP products, he said.

With regard to solutions to promote sales of OCOP products, Bùi Nguyễn Anh Tuấn, Deputy Director of the Domestic Department under the Ministry of Industry and Trade, said that it is necessary to maintain and develop existing distribution channels and promote omni-channel sales.

Along with that, the sales of OCOP products should be associated with tourism, cuisine and culture.

“Improving awareness of digital transformation and promoting the application of information technology and e-commerce are important to bring products closer to consumers and boost production and consumption,” Tuấn said. “Besides, the development of OCOP products contributes significantly to socio-economic development and increasing local people’s income,” he affirmed.

Tuấn said that the communication and promotion of OCOP products need to be strengthened with the focus on enhancing market watch and brand protection for these products. 

Vietnamese food and beverages to be introduced in Singapore

Vietnam’s food and beverage products are due to be introduced in Singapore at the FHA-Food & Beverage exhibition, which is scheduled to run from April 23 to April 26, 2024.

Details of the event were released at a press conference introducing the FHA-Food & Beverage exhibition and the ProWine 2024 in Ho Chi Minh City on December 13.

Upon addressing the function, Janice Lee, event director for the FHA-Food & Beverage exhibition, emphasised that Vietnam is considered to be a potential export market for various industries, especially the culinary field with the local wine market being expected to grow strongly in the near future.

She added that the country boasts rich sources of agricultural and aquatic raw materials, especially coffee, cocoa, and cashew nuts.

However, she advised local small and medium-sized businesses to seize upon opportunities to strengthen trade connectivity and learn more about the requirements and standards set by foreign partners around the world as part of efforts to expand the international market, including Singapore.

The combination of these two exhibitions will provide an ideal platform for the Vietnamese business community to connect with important suppliers in the global food and beverage industry, seek new co-operation opportunities and further boost market expansion, she noted. 

According to information provided by the organisers, a trade exchange programme will be held from April 23 to April 26 during the event with more than 3,800 sessions.

So far, the FHA-Food & Beverage has received more than 1,500 registered units who are well-known distributors, importers, and manufacturers from 50 countries and territories around the world.

Vietnamese watermelon to be officially exported to China

A protocol regarding quarantine requirements placed on watermelon exported from Vietnam to China has been signed, paving the way for Vietnamese fresh watermelon to officially enter the lucrative market.

The protocol was signed by representatives of the Plant Protection Department under the Ministry of Agriculture and Rural Development and General Administration of Customs of China within the framework of Chinese Party General Secretary and President Xi Jinping’s State visit to Vietnam.

The protocol stipulates that fresh Vietnamese watermelon must comply with Chinese laws, regulations, and standards related to food hygiene and safety, as well as requirements placed on plant quarantine. The juicy fruit must not be contaminated with five Chinese plant quarantine subjects.

Moreover, all growing areas registered for export to China must build a quality management and traceability system, apply Good Agricultural Practices (GAP), and ensure conditions such as supervision of the cultivating gardens and packaging process.

Vietnam has 13 agricultural products officially licensed to enter China, comprising of bird's nests, sweet potato, dragon fruit, longan, rambutan, mango, jackfruit, watermelon, banana, mangosteen, lychee, passion fruit, and durian.

According to the General Department of Vietnam Customs, by the end of November Vietnam earned US$3.4 billion from exporting fruit and vegetables to China, marking an increase of 2.6 times over the same period last year.

Major banks continue to reduce deposit interest rates

Deposit interest rates at four major banks of Vietnam have been adjusted sharply, down by 0.2-0.4% per year from the previous listings, bringing the rate to 2.2% per year at the lowest.

Specifically, the Bank for Investment and Development of Vietnam (BIDV), the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) and the Vietnam Bank for Agriculture and Rural Development (Agribank) on December 13 lowered their interest rates for 12-month savings to 5% per year from 5.3% per year.

Notably, annual deposit interest rates for terms from one to less than three months decreased sharply from 3% to 2.6%. The respective interest rates for three-month term and 6-9-month term are cut to 3% and 4%.

The highest deposit interest rate at the three banks is currently 5.3% per year, which is only applicable to deposits from 24 months upward.

Meanwhile, the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has also cut deposit interest rates by 0.2%, pushing the deposit interest rate for 1-2-month terms to a record low of 2.2%. The bank’s 3-month term interest rate now stands at 2.5% per year, while the rate for 6-9 month-term deposits, is 3.5% per year. That for deposits 12 months and more is kept unchanged at 4.8% per year.

Since the beginning of December, many banks such as MB, PVCombank, HDBank, Techcombank, MSB and VPBank have continuously cut their interest rates, with the current interest rates being as low as the four major banks.

VNDirect Securities estimated that the average 12-month term deposit interest rate may return to 5-5.2% per year year by the end of 2023 and maintain at this low level in 2024.

Vietnamese, Egyptian enterprises strengthen connectivity

A Vietnam-Egypt business matching was held in Giza city in the province of the same name on December 13, as part of the activities to mark the 60th anniversary of the two countries’ diplomatic relations.

The event attracted the participation of representatives from more than 40 Egyptian enterprises and several Vietnamese firms.

Vietnamese Ambassador to Egypt Nguyen Huy Dung said that trade cooperation between the two countries was established even earlier than diplomatic relations, as Vietnam's trade office in Egypt was set up in 1958.

Dung said the Vietnamese Government has identified three new drivers for economic growth, with one being expanding trade relations with new markets in the Middle East, Africa, and South America, as well as with traditional markets, and Egypt is one of Vietnam's largest markets in the region with geopolitical advantages.

Egypt is located at the intersection of the three continents of Europe, Africa, and Asia. The North African country is a member of the African Continental Free Trade Area (AfCFTA) and will soon become a member of the BRICS group of emerging market nations. Meanwhile, Vietnam is a gateway to the ASEAN market with more than 650 million people, he noted.

The diplomat stressed that there remains an ample room for Vietnam and Egypt to enhance their cooperation, along with a lot of opportunities to expand markets.

He expressed his belief that the two countries can work together to increase bilateral trade from 595 million USD in 2022 to 1 billion USD in the near future.

Head of the Giza Chamber of Commerce Osama Al-Shahed said that Egypt and Vietnam hold great cooperation potential in different fields, and proposed the two sides collaborate in implementing joint production projects in any industrial parks in Giza province.

They also agreed that the two sides need to strengthen connections between the two countries' business communities through business forums, trade-investment promotion seminars and trade fairs.

At the forum, participants exchanged information on each other's market needs as well as cooperation opportunities. Many Egyptian businesses showed interest in Vietnamese goods, especially agricultural and aquatic products.

Increasing quality, value of rice shipments to boost exports

Continuing to restructure the rice sector towards higher quality and value is among the measures recommended to boost rice exports in the coming time.

The Ministry of Agriculture and Rural Development (MARD) coordinated with the People’s Committee of the Mekong Delta province of Hau Giang to hold a workshop on December 13 to look into the global rice market and trends in the time ahead. The event was part of the Vietnam - Hau Giang International Rice Festival 2023.

MARD Deputy Minister Tran Thanh Nam said the agricultural sector is working to train farmers in sustainable practices, to form a safe, sustainable and competitive supply chain for the sector. He proposed a policy to build a national brand for the rice sector, and develop the agricultural extension staff to improve capacity for farmers.

In the time ahead, the ministry will continue working with relevant ministries and agencies to create mechanisms and conditions for forming rice value chain connectivity in not only the country but also the region and the world, he went on.

The MARD is implementing a project on sustainably developing 1 million ha of specialised high-quality and low-emission rice farming in association with green growth in the Mekong Delta by 2030.

Hau Giang has registered 46,000ha for the project, Chairman of the provincial People’s Council Tran Van Huyen said, describing the project as a practical move showing Vietnam as a responsible country contributing to a transparent, responsible, and sustainable global food system.

Le Thanh Hoa, Deputy Director of the MARD’s Department of Quality, Processing and Market Development, noted that favourable conditions for Vietnam’s rice exports include effective Government policies, restriction of supply sources such as India, maintenance of traditional markets, and the high potential of new markets.

However, he also pointed out some of the difficulties in the sector. These include unstable supply due to the crop structure, climate change, and limited sale connectivity, along with the shortage of preservation and processing infrastructure and technology, strong competition, increasing protectionism and technical barriers, lower consumption due to economic uncertainty and high inflation, and price volatility.

He also underlined the need to strengthen cooperation in producing high-quality grains while changing the structure of rice varieties cultivated to diversify export markets in conformity with the strategy for developing rice export markets of Vietnam until 2030.

In 2023, the rice farming area nationwide was 7.1 million ha with productivity expected at 6.07 tonnes of unmilled rice per ha. The total output was at 43.1 million tonnes, rising about 0.4 million tonne from last year. Some 7.5 million tonnes of milled rice was exported during the first 11 months of this year to bring home an estimated 4.4 billion USD in revenue, according to the MARD.

Online sale now irreversible for Hanoi’s craft villages

Online sale has supported craft villages in the capital city of Hanoi in increasing revenue, reducing costs, and improving their competitive edge. Therefore, authorities need to pen rational policies to encourage the development of e-commerce in this area.

Bat Trang commune is now home to 195 businesses and 960 production households in pottery, and 750 households offering tourism services, many of whom have popularised their products and services on social networks, e-commerce platforms, according to Dang Dinh Tuc, head of the representative board of Giang Cao pottery village.

He said e-commerce is accounting for some 26% of the village’s total sales.

Local per capita income reaches 86.54 million VND (nearly 3,600 USD), he said, adding the village is looking to provide its OCOP products and tourism services via QR codes.

Meanwhile, Pham Khac Ha, President of Van Phuc silk weaving association in Ha Dong district, said besides maintaining their brick-to-mortar stores, the village has put up their silk products for sale on social networks and e-commerce platforms such as Shopee and Lazada.

Several production establishments such as Lan Son, Phuong Silk, Phuc Hung, and Phong Thu Silk create their own social networking community to seek materials and promote trade. Besides, they have capitalised on online platforms to sell their products which are all marked with “Van Phuc Silk” brand.

Ton Gia Hoa, Vice Chairman of the Vietnam Craft Villages Association, said the COVID-19 pandemic has pushed more shoppers online and fuel development of online sales, helping customers get access to a wide range of products much easier than the traditional channel, and producers expand market and increase values for the goods.  

However, local artisans also run into difficulties when selling their products online.

According to insiders, moving to e-commerce requires artisans to have better business strategies and management skills, and improve skills for workers, among others.

Nguyen Nhu Chinh, Vice Chairman of the Vietnam Craft Villages Association, said competent authorities should work to raise public awareness of e-commerce services, and give more support to craft villages in improving online sales and marketing skills.

Meanwhile, Nguyen Thi Tong, director of the institute for research and application of fine arts in craft products, said craft villages should understand the regulations on online business, including e-commerce registration, tax obligation, and restricted items./.

Programme introducing UK food held in Hanoi, HCM City

The UK Consulate General in Ho Chi Minh City, in collaboration with Annam Gourmet supermarket chain, on December 14 launched a programme named “GREAT Food for the Season”, aiming to introduce to local consumers a series of specialty products from famous British food brands.

Held at 10 shops of Annam Gourmet in Hanoi and Ho Chi Minh City until the end of December 31, the programme has brought more than 200 food and beverage products such as tea, cake, candy, and wine.

UK Consul General in HCM City Emily Hamblin said that “GREAT Food for the Season” is a great series of activities to end 2023, when the UK and Vietnam are celebrating 50 years of their diplomatic relations.

The programme aims to meet the growing demand for high-end products of both Vietnamese and foreigners in Vietnam. The organisers also offer discounts of up to 50% for chocolate and 10% for Christmas products. At the same time, UK product trial events are also held at five shops on December 14-15 and December 21-22.

Hanoi's MICE tourism promises vigorous year-end growth

 After the Covid-19 pandemic, MICE (meetings, incentives, conferences, exhibitions) tourism, which is a model for business travelers to stay longer, is picking up and promises strong year-end growth in 2023, according to Vice Chairman of Hanoi Travel Association Le Thanh Thao.

Thao said the city has recently drawn up a plan to boost MICE tourism, under which destinations will continue to improve services and promote key products, including cultural tourism, night tours and food.

Saigontourist Hanoi, a branch of Saigontourist Travel Services Company, has catered to a total of more than 40,000 domestic and foreign MICE tourists in the third quarter of this year alone. About 32,200 of them are local visitors.

Doan Thi Thanh Tra, the company's director of marketing and communications, told The Hanoi Times that this is quite an impressive growth, around 10% year-on-year. 

Le Hanh, the general manager of Vietluxtour Hanoi, said individual travelers are cutting back on their spending due to financial constraints. However, companies are still investing in training, so we expect MICE tourism to rebound.

Trinh Le Anh, Vice President of the Vietnam MICE Travel Club under the Vietnam Tourism Association, informed that before the Covid-19 pandemic, the average number of inbound MICE visitors accounted for 20-30% of total arrivals, reaching 60% in peak months. Among them, European MICE tourists, identified as high-end visitors, spent US$700-1,000 per day, accounting for about 20%, while Asian visitors spent about US$400 per day.

He emphasized that the key to success in MICE tourism today is professionalism. MICE tourism, shifting towards high-end visitors, including business travelers who spend 4-6 times more than ordinary consumers, depends on connectivity and careful location selection.

Under the city's plan, Hanoi will focus on investing in facilities to improve the quality of services and human resources to make tourism a cutting-edge economic sector by 2025, prioritizing MICE tourism.

By 2030, the city is expected to welcome about 48-49 million tourists, including 13-14 million international arrivals, generating revenues of VND270-300 trillion (US$11.6-12.9 billion).

According to Nguyen Duc Anh, President of the Vietnam MICE Travel Club, the leveraging of destinations with historical and cultural values will create a typical MICE tourism product of Hanoi.

He noted that Hanoi also needs to customize MICE tourism products, draw up an appropriate MICE tourism development program, and strengthen international promotion with the participation of numerous agencies, departments, and enterprises.

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