Vietnam’s tra fish (pangasius) export value is expected to hit a record high this year, reaching 2.4 billion USD, said Deputy Minister of Agriculture and Rural Development Phung Duc Tien.

Speaking at a press conference announcing the first tra fish festival that is set to take place in the Mekong Delta province of Dong Thap on December 16 and 17, Tien said that Vietnamese tra fish is now exported to 138 countries and territories around the world.

About 350 tra fish raising establishments in the Mekong Delta region with a total area of nearly 3,120 ha have been certificated to meet Vietnamese Good Agricultural Practices (VietGAP) standards.

This year, the country expects to yield a tra fish output of 1.68 million tonnes. By November 15, 2022, the country’s tra fish export value reached 2.23 billion USD. 

Tien said that the fishery sector could rake in a record high of 11 billion USD from exports this year and that tra fish is among the key products that greatly contributed to the growth.

According to the Vietnam Tra Fish Association, 2022 marks a successful year for the production and trading of tra fish in the Mekong Delta region as domestic tra fish prices are maintained high after businesses have made efforts to boost exports.

Last year, the tra fish export value of Vietnam reached about 1.62 billion USD, marking an increase of 8.4% compared to 2020.

Early this year, Vietnam set a target of 1.6 billion USD from exporting tra fish in 2022. Major markets of Vietnamese tra fish include China which consumes nearly 30% of Vietnam’s exported tra fish, the US (nearly 23%), countries joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) (more than 13%), the EU (8.2%), and Brazil (3.7%).

Opening agricultural market to ensure growth

The Ministry of Agriculture and Rural Development (MARD) in collaboration with Countryside Today newspaper organised an online seminar on opening the agricultural market on December 13.

Many kinds of agricultural products have been accepted by fastidious markets thanks to the effective coordination of MARD with ministries, agencies and enterprises.

Accordingly, MARD and the General Administration of Customs of the People’s Republic of China have successively signed protocols to officially export many kinds of agricultural products to China, such as passion fruit, banana, durian, sweet potato, and bird’s nests.

Recently, the US officially opened the door to Vietnam's pomelo; longan and macadamia nuts are also allowed to be exported to Japan; New Zealand opens the door to Vietnam's green lemons; meanwhile, many kinds of high-quality Vietnamese rice have appeared in supermarkets of the US, the EU, and Japan.

The results of opening the market have contributed to helping Vietnam's agricultural, forestry and fishery exports reach about 49.04 billion USD in the first 11 months of this year, up 11.8% over the same period last year.

Delegates at the seminar strongly agreed that market opening has been a crucial factor in the growth of the agricultural sector. However, they also noted that maintaining and sustainably developing the market is an even greater challenge.

This required each farmer and business to make efforts to change their production thinking, and meet the requirements of each market.

Ngo Xuan Nam, Deputy Director of SPS Vietnam Office at MARD, said that in order to open the market, it was necessary to strengthen links not only with farmers but also with industries and businesses.

To date, Vietnam has signed 18 Free Trade Agreements (FTAs), many of which are associated with major markets such as the US, the EU, and Japan.

Forum promotes Vietnam’s tourism in India

A forum promoting Vietnam’s tourism in India was held in New Delhi on December 14 as the last activity of the Vietnam Days in India 2022 from December 12-14 on the occasion of the 50th founding anniversary of bilateral diplomatic ties.

The forum was co-hosted by the Vietnamese Embassy in India, the Ministry of Foreign Affairs, the Ministry of Culture, Sports, Tourism of Vietnam and the PHD Chamber of Commerce and Industry of India (PHDCCI).

In his opening speech, Vietnamese Ambassador to India Nguyen Thanh Hai said it is the first time the General Administration of Vietnam Tourism has taken a delegation of 12 Vietnamese companies to India following the COVID-19 pandemic.

Vietnamese Deputy Minister of Culture, Sports and Tourism Hoang Dao Cuong said in November, Vietnam welcomed 27,000 visitors from India, up 31% month-on-month and 50% year-on-year. In the 11 months of this year, the total number of Indian visitors to Vietnam reached 109,000, ranking 5th out of the top 10 markets of Vietnam.

PHDCCI Secretary General Sauraubh Sanyal vowed that PHDCCI will help the Vietnamese Embassy hold activities promoting tourism between the two nations.

Indochina Kajima, Mandarin Oriental ink agreement on resort management in Phu Yen

Indochina Kajima Development Co. Ltd. - a joint venture between Indochina Capital and Kajima Corporation - and Hongkong-based Mandarin Oriental Hotel Group have signed an agreement on the management and operation of a luxury resort in the south-central province of Phu Yen.

Construction of Mandarin Oriental, Bai Nom will begin in the second half of 2023 and scheduled to be put into operation in the first half of 2026.

When completed, the resort will feature 72 villas and hotel rooms, including 25 residences at Mandarin Oriental, spread out across a 29-hectare site.

Top 10 reputable feed companies announced

Vietnam Report Joint Stocks Company on December 14 announced the top 10 reputable animal feed companies in Vietnam in 2022.

They are the CP Livestock Joint Stock Company (CP Vietnam), De Heus Vietnam, CJ Vina Agri Co., Ltd., Greenfeed Vietnam Corporation, Vietnam-France Animal Cattle Feed Joint Stock Company, Japfa Comfeed Vietnam Co., Ltd., Mavin Group, Dabaco Group, Sunjin Vina Co., Ltd., and Hong Ha Nutrition Joint Stock Company.

According to statistics, the total demand for refined feed for the whole livestock industry in Vietnam is about 33 million tonnes per year, while  the domestic supply is only about 13 million tonnes.

According to preliminary statistics of the General Department of Customs, in the first 11 months of 2022, the import value of animal feed and raw materials reached over 5 billion USD, up 11.5% over the same period in 2021.

Vietnam’s largest animal feed supplier is Argentina (29.8%), followed by Brazil (20.2%) and the US (12.8%).

Vietnam’s exports affected by many factors: WB

Two drivers of Vietnam's economic growth – exports and domestic demand – are moderating, according to a report released by the World Bank (WB) on December 14.

The bank’s December report, Vietnam Macro Monitoring, shows that softer external demand has weighed on Vietnam’s exports. Consumer rebound in the post-COVID period seems to recover slowly and tighter domestic financial conditions and rising inflation could affect domestic demand in the future.

Due to weaker external demand, the growth of industrial production in November declined by 5.3% year-on-year, the lowest rate since February 2022. The manufacturing Purchase Manager Index (PMI) also slipped below the 50 benchmark for the first time since October last year.

Retail sales decreased to 17.5% in November from 20.7% in the previous month.

Merchandise exports contracted by 8.4% year-on-year due to weakening external demand and high base effects associated with the rebound in the four quarters of 2021. While total foreign direct investment (FDI) commitment dropped by 1.9% year-on-year, FDI disbursement maintained a robust growth of 4.4% compared with the same period last year.

Consumer Price Index (CPI) inflation reached 4.4% year-on-year in November, up 0.1% compared to a month earlier, with food and housing being two major contributors. Core inflation increased from 4.5% in October to 4.8% in November.

Credit growth fell from 16.5% in October to 15% in November, as domestic financial conditions tightened after the State Bank of Vietnam (SBV) raised key interest rates in September and October. Average overnight interbank interest rate remained high at 5.7% in November.

The SBV announced a 1.5-2% increase of the credit growth cap in early December. The Vietnamese currency, the dong, gained slightly in value in November although its appreciation is one of the smallest compared to major currencies and those of its neighbours.

As of the end of November, the national budget registered a 12.1 billion USD surplus, equivalent to about 3% of GDP.

The WB recommended that Vietnamese monetary authorities consider allowing further flexibility in the exchange rate to absorb changes in the external environment as global financing conditions are expected to remain tight and external demand is weakening.

Fiscal and monetary policy coordination will be critical to ensure price stability in the context of accelerating domestic core inflation, it said, adding that a more prudent and prioritised expenditure strategy is needed to ensure investments in human capital and resilient and green infrastructure to help bolster economic potential and resilience.

Efforts needed to increase cashless payments in remote areas

Measures to expand the use of cashless payments in rural and far-flung areas were discussed at a seminar hosted by the Government News on December 13.

Pham Anh Tuan, Director of the Payment Department under the State Bank of Vietnam, said that Vietnam has gained achievements in implementing non-cash payments in remote, rural and island areas.

As of late September, there were 2.34 million mobile money subscribers, of which 1.62 million, or 69.2%, were from rural and island areas.

To date, three service providers, Viettel, VNPT and MobiFone, have established more than 82,200 transaction points, and there are currently more than 14,500 units accepting cards. At present, around 15 million mobile money transactions with a total value of nearly 950 billion VND (40.38 million USD) have been made.

With just phone numbers, users across the country can make cashless transactions easily through a Mobile Money account, regardless of internet connection or bank account.

VinFast opens four more stores in California

VinFast, Vietnam’s first electric vehicle (EV) manufacturer, on December 14 (US time) announced the opening of four more stores in Los Angeles and Orange County of the US’s California state.
 
The four stores are located in popular and highly trafficked shopping centres. VinFast Canoga Park, VinFast Irvine Spectrum, and VinFast Marina Del Rey opened on December 14 and VinFast Del Amo Fashion Centre will open later this month.

Pangasius exports to Chinese market surge over 11-month period

Despite facing COVID-19 restrictions put in place by China, local pangasius exports to both the China and Hong Kong markets witnessed an impressive growth of 79% to US$675 million during the opening 11 months of the year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

In terms of the figure, the export of these products to both China and Hong Kong soared by 81% and 46% on-year to reach US$636 million and US$38 million, respectively.

The high export growth recorded to the Chinese market has significantly contributed to raising the country’s overall pangasius turnover of US$2.3 billion in the reviewed period, up 63%.

Most notably, frozen pangasius fillets under HS code 0304 to China reached US$472 million, duly accounting for 74% of pangasius export value to the market.

VASEP forecasts that there will be positive outlook ahead for pangagius exports to the market due to its high consumption demand, despite China’s recent adjustment of its zero-COVID policies.

Work starts on central region’s biggest seaport

Construction on Lien Chieu Seaport in Danang City, the biggest of its kind in the central region of Vietnam, was started  on December 14.

The ground-breaking ceremony saw the participation of State President Nguyen Xuan Phuc and Permanent Member of the Communist Party of Vietnam Central Committee's Secretariat Vo Van Thuong.

The 450-hectare project has a total investment of over VND3.42 trillion (USD137 million).

The project will allow access to 200,000 deadweight tonnage (DWT) cargo ships and container ships with loading capacities from 8,000 to 18,000 twenty-foot equivalent unit (TEUs) as well as 30,000DWT liquid cargo vessels in 2050.

The first phase of the project by 2025 will focus on building two 750m berths for container ships with a loading capacity of 8,000TEUs (100,000DWT), a 7.3km shipping lane, and a 1.17km water breaker dyke system.

Meanwhile, 12 additional berths for container ships and liquid cargo vessels will be added to help the port increase its capacity to 25 million tonnes by 2030.

Once operating, Lien Chieu Port is expected to help mitigate the overload for Danang Port which sees an annual growth of 10% in cargo capacity. In 2020, Danang Port handled 11.4 million tonnes of cargo. That figure is expected to reach around 50 million by 2050.

Aviation stocks perform well on positive signs

Many aviation and airline service stocks such as Vietnam Airlines JSC (HoSE: HVN), Taseco Air Services JSC (AST), Saigon Ground Services JSC (SGN) and Southern Airports Services JSC (UPCOM: SAS) witnessed outstanding performance on the trading day of December 12, with HVN hitting the ceiling price for the second session in a row, cushioning the market's downtrend.

HVN shares were also one of the top 10 stocks with positive growth. The movement was driven by positive signs in China as Beijing implemented measures to ease the COVID-19 pandemic prevention and control policy, and Viet Nam officially reopens a number of routes with China to serve the travel needs of passengers.

For the Vietnamese aviation industry, China accounts for more than one-third of international passenger volume pre-pandemic. It also has the largest proportion in the structure of passenger volume.

Recently, the International Air Transport Association (IATA) said that after a period of heavy losses due to the impact of the COVID-19 pandemic, airlines around the world were expected to start making profits again in 2023.

After cutting losses this year, airlines would likely earn US$4.7 billion in net profit in 2023, marking their first profitable year since 2019, before the COVID-19 pandemic broke out. Passenger volume was also forecast to reach 4.2 billion, equal to 85.5 per cent of 2019 levels.

According to IATA, airfares of airlines tracked by IATA increased by 4 per cent year-on-year in 2021. And the trend is expected to extend in 2022 and 2023, corresponding to IATA's forecast that the airfares of airlines will increase by 6 per cent year-on-year in 2022.

This will support airlines' profit margins as airlines in Viet Nam are in the process of shifting their raising fuel costs to passengers. Specialist Tran Khanh Hien of VNDirect Securities Corporation said that while domestic aviation had regained from losses during the pandemic, international aviation would be the focus in the coming period.

IFC and Australia launch new partnership to boost private sector growth in Vietnam

At least USD300 million in private investments in Vietnam is expected to be unlocked by a new partnership between the International Finance Corporation (IFC) under the World Bank Group and the Australian Government.

The new 15-million Australian dollar (USD10million) Vietnam Private Sector Development Partnership aims to create inclusive and sustainable private investment opportunities by enabling a transparent, predictable, convenient, and cheaper way to do business in Vietnam, for women and men.

Regulatory and policy reform, stronger sustainable and inclusive business practices, and banking that serves women-led businesses and climate-friendly solutions will be priority areas of the partnership. Initially six projects valued of AUD5.7 million (USD3.80 million) have been endorsed for implementation.

Over the next five years, the IFC-Australia partnership will work with Vietnam’s public and private partners to unlock private capital required for its climate and development priorities, especially in key growth sectors including infrastructure,agriculture, manufacturing, and tourism.

Uphill task for next year’s trade goals

An 11-month large trade surplus has mirrored an expansion of both exports and imports, but lingering risks are making it difficult for the country to hit its trade goals next year.

The Ministry of Industry and Trade (MoIT) reported that the economy’s total 11-month goods export-import turnover is estimated to be in $673.82 billion – up 11.8 per cent on-year. The export turnover stood at $342.21 billion – up 13.4 per cent, and the import turnover sat at $331.61 billion – up 10.1 per cent. There has been a trade surplus of $10.6 billion.

Vietnam has consecutively recorded a trade surplus, at $809 million in Q1, $1.28 billion over the first six months of 2022, $5.49 billion over eight months, $5.7 billion in nine months, and $9.4 billion covering the first 10 months of the year.

The government is expecting that for the entire year, the total export turnover will be $368 billion – up 9.46 per cent against 2021, and far higher than the target of $329.9 billion set in early this year. Meanwhile, the total import turnover will be around $$367 billion, higher than the goal of $330.9 billion set in early this year. All are thanks to consumers’ high spending, and tax reduction and removal under free trade agreement commitments. This will mean a trade surplus of $1 billion for 2022, quite contrary to a trade deficit of $1 billion expected earlier this year.

From the start of the year to the end of November, up to 35 items had an export turnover of more than $1 billion – accounting for 93.7 per cent of the country’s total export turnover. This included eight items with an export turnover of over $10 billion – holding 70.1 per cent of the total.

Industrial items with big export value include mobile phones and spare parts ($55.37 billion – up 6.6 per cent on-year); and computers, electronics, and spare parts ($50.52 billion – up 11 per cent). Samsung is estimated to create more than 90 per cent of Vietnam’s total export values of electronics and mobile phones.

Other items with big export value also include machinery and equipment ($41.97 billion, up 23.3 per cent on-year); garments and textiles ($34.53 billion, 18.5 per cent); and footwear ($22.1 billion, 49.9 per cent), and wood and wooden products ($14.6 billion, 9 per cent).

The government has set a target that in 2023, Vietnam’s total goods export-import value will be about $795 billion, up about 8 per cent against this year. In which, the export turnover will be $398 billion – up over 8 per cent on-year. The trade surplus will stay at about $1 billion.

Vietnam Salary Guide 2023 introduced

The Vietnam Salary Guide 2023 was officially introduced on December 12, providing practical insights and data on key industries, allowing organisations and individuals to make better preparations for next year.

ManpowerGroup Vietnam introduced the guide for the first time in the context of Vietnam’sstrong economic recovery and foreign direct investment inflows in recent years, which have contributed significantly to the bright outlook of Vietnam’s labour market post-pandemic. However, the double disruption by the pandemic and digital transformation has brought about significant changes to the hiring demand and human resource strategies of businesses.

Andree Mangels, general manager of ManpowerGroup Vietnam said, “Salary trends in Vietnam have witnessed a significant development in recent years. Vietnamese white-collar workforce’s salary has risen gradually partly due to inflation, but also thanks to the significant improvement in workers’ skills over the years.”

The Vietnam Salary Guide 2023 covers 12 industries and skillsets and the most critical positions, from middle level, senior to C-suite level. This comprehensive guide includes the labour market’s highlights and hiring trends for each industry, top sought-after positions, and most importantly, the average salary range for hundreds of roles in 12 key industries.

The National Assembly in November approved an increase in the base salary for employees in state agencies by 20.8 per cent to VND1.8 million ($78.26). The salary of state employees is counted by multiplying the base salary with the salary coefficient, which is different among state employees based on their working duration, position and others.

Positive budget figures ensuring economic balance heading into 2023

The state budget landscape for January to the end of November witnessed positive figures, with enterprises gradually riding out the storm to ensure their performance.

The General Statistics Office noted that the total state budget in the first 11 months of this year was marked a surplus of $12.26 billion, with expenditure estimated to be over $59 billion – up 3.4 per cent on-year. Meanwhile, the state budget revenue is estimated to hit $71.26 billion, equal to 116.1 per cent of the year’s estimates and up 17.4 per cent on-year. All kinds of revenues have increased on-year, reflecting recovery in almost all sectors in the economy.

Specifically, domestic revenues reached $56.55 billion, tantamount to 110.5 per cent of the year’s estimates, and up 13.5 per cent on-year.

Revenues from crude oil stood at $3 billion, equivalent to 244.6 per cent of the year’s estimate and up 77.6 per cent on-year. It is also expected that revenues from crude oil exports for this year will sit at $2.96 billion, up 141.1 per cent as compared to the initial estimates and accounting for 4.2 per cent of total budget revenues. This thanks to a hike in crude oil prices, averaged at $107.05 per barrel.

In addition, revenues from export-import activities in the first 11 months of this year sat at $11.45 billion, equal to 132.4 per cent of the year’s estimates and up 25.1 per cent as compared to the corresponding period last year.

Total 11-month export-import turnover is estimated to be in $673.82 billion – up 11.8 per cent on-year. In which the export turnover stood at $342.21 billion – up 13.4 per cent, and the import turnover sat at $331.61 per cent – up 10.1 per cent. It is estimated that the revenues from export-import activities for the whole 2022 will be about $18.26 billion, up 23.6 per cent as compared to the initial estimates – responsible for 15.2 per cent of the total state budget revenues.

The central and local budget revenues for the entire year are estimated to exceed by $3.47 billion and $5.65 billion, respectively.

State-owned PetroVietnam reported that it has already accomplished its plan this year on exploiting oil and gas. Its total revenue goal for 2022 was also reached in August. By October, revenues hit $34 billion, exceeding by 40 per cent of the whole year’s plan and up 56 per cent as compared to the corresponding period last year. The group’s general director Le Manh Hung said PetroVietnam also accomplished its plan for the entire year on contributions to the state budget six months in advance.

In the first 10 months of 2022, PetroVietnam contributed $4.89 billion to the state, exceeding by 74 per cent of this year’s plan and tantamount to the realised figure of 2021. This also means that PetroVietnam has occupied about 7.7 per cent of the whole economy’s total budget revenues. The group’s 10-month contributions to state coffers from crude oil stood at $2.84 billion, up 95 per cent on-year and exceeding by 2.3 times as compared to the year’s estimates.

The government expected that the economy’s GDP will be about $403.2-405.3 billion this year – thus the total budget deficit for 2022 will be about $18.14-18.23 billion.

Growing bond market illustrating bad debt snags

While the bad debt market in Vietnam is still in its infancy and positive conditions have converged, stronger steps need to be taken.

At a seminar on developing the bad debt market on November 29, organised by the State Bank of Vietnam (SBV), BIDV chief economist Dr. Can Van Luc emphasised the risks of the bad debt business.

According to Luc, in 2021 bank credit accounted for about half of the total capital supply for the economy, and it is expected that the credit role of the banking system in the next few decades will still be important. Therefore, debt management still needs annual capital to achieve international rates.

The birth and development of the debt market will continue to contribute to the stability and financial safety of credit institutions and enterprise systems, according to Nguyen Kim Anh, Deputy Governor of the SBV.

Do Giang Nam, deputy general director of the VAMC, noted that in the past few years, Vietnam’s bad debt settlement market has seen some developments, especially in allowing the sale of bad debts to organisations. Accordingly, the proportion from this bad debt recovery measure has increased significantly, but is still modest compared to the totality. One of the reasons is related to the legal corridor.

Nam noted that to develop a complete bad debt market and attract buyers, three specific conditions need to be met.

Domestic and foreign economic experts and leaders of the SBV all acknowledged that the Vietnamese debt market is basically still in its infancy, and needs to learn from other nations.

Sharing South Korea’s story, Choe Sun Joon, head of International Business at the Korea Asset Management Corporation, explained that implementing the securitisation of bad debts after the 1997 foreign exchange crisis in South Korea led to a sharp increase in the volume of bad debts.

For the sale of bad debt to be effective, Karlis Bauze, senior financial specialist of the World Bank, said it is necessary to satisfy various conditions, including the legal framework on creditor’s rights, information disclosure, good performance in valuation and accounting, a favourable tax regime, investors being familiar with the use of electronic trading platforms, and more besides.

Hanoi’s 2022 budget revenue to surpass estimate

The total budget revenue of Hanoi City this year is expected to hit VND300,000 billion, or 107.9% of the year’s target, according to the city’s tax department.

The budget revenue of the city this year saw a slight rise of 2.4% over 2021. According to Mai Son, director of the Hanoi Tax Department, the city initially projected to collect VND281,830 billion. Hanoi’s budget collection goal was one of the highest in the nation.

Despite facing obstacles, the authorities have made considerable efforts to deal with major operational losses and achieve the objectives.

The municipal tax agency reported a rise in revenue from the industrial and commercial sectors and decreased earnings from activities related to the city’s natural resources. The city expects to receive a budget revenue of VND325,902 billion next year, a 7.2% increase over the predicted total for 2022.

Financial plan for Metro Line No. 1 company gets nod

The Ministry of Finance has written to the Prime Minister presenting its plan to increase the charter capital of the HCMC Urban Railway No. 1 One-member Limited Liability Company (HURC1) after receiving a petition made by the HCMC People’s Committee.

The ministry has approved the plan to increase the charter capital of the HURC1 from the municipal budget worth VND268 billion, which the HCMC People’s Committee had petitioned the Prime Minister to obtain the policy approval.

HURC1 is a newly-established, 100% state-owned enterprise with its first registered capital of VND14 billion. The company is preparing to take over Metro line no. 1 once it is put into service.

Kien Giang breaks ground on 40-km seaside road

The Mekong Delta province of Kien Giang started work on a 40-km seaside road linking Hon Dat District and Kien Luong District at a total cost of some VND1.5 trillion yesterday, December 14.

The 12-meter-wide road will be completed after some 26 months of construction, allowing a maximum speed of 80 kilometers per hour, the local media reported.

According to the provincial Department of Transport, the road project will comprise 34 concrete bridges and lighting and drainage systems.

The provincial government is conducting some procedures to borrow official development assistance loans to deploy the An Bien-An Minh section at a total cost of VND2 trillion until 2025 to complete the seaside road.

The coastal road plays a key role in linking Rach Gia City and Ha Tien City, easing traffic pressure on National Highway 80 and improving connectivity between the Mekong Delta region and the Southeast Asian countries, according to the provincial government.

Business tax debts up 3% in Jan-Nov

Total tax debt owed by businesses had amounted to an estimated VND126.64 trillion in the year to November 30, up 3% year-on-year, according to the General Department of Taxation.

This debt was 10.1% higher than late last year. The department attributed the strong rise to the Covid-19 pandemic, natural disasters, global economic uncertainties, and the shortage of input materials.

In January-November, the tax sector had collected an estimated tax debt amount of VND29.4 trillion, achieving 70% of the 2022 target.

According to statistics of the Ministry of Finance, the State budget revenue in January-November reached VND1,638.9 trillion, up 16.1% over the estimate.

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