MODERN FARMING: A high-tech vegetable farm in Bắc Giang Province. The fruit and vegetable sector is expected to earn about $7.5 billion, with over $5 billion coming from China. VNA/VNS Photo Danh Lam

Việt Nam has significant potential to increase fruit and vegetable exports to China via official channels, according to industry insiders.

China, with a population of 1.4 billion, has an immense demand for tropical fruits, a key advantage for Việt Nam, which produces such fruits in large quantities and with high quality, according to Đặng Phúc Nguyên, general secretary of the Vietnam Fruit and Vegetable Association (Vinafruit).

To date Việt Nam has officially exported 11 types of fruits to China: durian, jackfruit, dragon fruit, banana, mango, longan, lychee, watermelon, rambutan, mangosteen, and passion fruit, along with sweet potato and black ginseng.

According to statistics from Vinafruit, Việt Nam's fruit and vegetable export turnover reached US$5.6 billion last year, with China alone $3.63 billion, accounting for nearly 65 per cent. This year, the fruit and vegetable sector is expected to earn about $7.5 billion, with over $5 billion coming from China, making up 70 per cent of the total export value.

Chinese consumers are increasingly interested in clean and safe agricultural products with natural origins and reasonable prices. Trade agreements between Việt Nam and China have also contributed to reducing tariffs and creating better conditions for export.

Many Vietnamese fruits, such as durian, dragon fruit, banana, jackfruit, mango, passion fruit, and lychee, are particularly popular among Chinese consumers due to their delicious taste and superior quality compared to similar products from neighbouring countries.

ON THE ROAD: Trucks carrying the first shipments of durian from Đắk Lắk Province to  China. VNA/VNS Photo Anh Dũng

Another competitive edge for Việt Nam lies in its proximity to China. The border gates between the two countries are close to major Chinese wholesale markets, significantly reducing transport time and logistics costs. This advantage allows Vietnamese fruits and vegetables to reach Chinese consumers fresher and at lower prices than those from other exporters.

In addition to fresh farm produce, China has a substantial market for processed fruit and vegetable products. This opens up further opportunities for Vietnamese businesses to diversify their goods and add value through processing.

Nguyên highlighted the importance of cooperative mechanisms and supportive policies to encourage investments in production, processing, and logistics. Such efforts would enhance Việt Nam’s competitiveness, reduce storage and transport costs, and minimise losses in the export process.

Despite these opportunities, Vietnamese fruit and vegetable exports face stiff competition from regional rivals such as Thailand, Malaysia, the Philippines, Cambodia, and Australia, as well as South American exporters like Chile, Peru and Ecuador.

Certain Vietnamese products, including banana, dragon fruit, lychee, longan, and pomelo, also compete directly with similar Chinese domestic produce.

China’s increasingly strict food safety regulations pose another challenge. Vietnamese exports must comply with complicated and time-consuming requirements, including obtaining growing area codes and registering packaging facilities with Chinese customs.

HARVEST SEASON: A passion fruit farm in Lai Châu Province. Passion fruit is among 14 kinds of fruit to be exported to China. — VNA/VNS Photo Quý Trung

Additionally, Vietnamese exporters face difficulties in penetrating deeper into China’s domestic market. Most Vietnamese fruits and vegetables are sold to small traders concentrated along the northern border, limiting access to larger markets in China’s inner provinces.

To overcome these challenges, Nguyên urged Vietnamese businesses to deepen their understanding of China’s domestic fruit and vegetable seasons to adjust export schedules and avoid direct competition.

He stressed the need for investments in production and processing technologies to improve product quality, ensure food safety, and diversify goods for export. Developing processed products tailored to consumer preferences for packaging and origin was crucial, he said.

Another important work was building a strong brand image for Vietnamese fruits and vegetables in China. Gaining consumer trust through consistent quality and safety standards would help solidify Việt Nam’s reputation in the market.

Nguyên also encouraged businesses to collaborate with Vietnamese trade offices in China to expand distribution channels. He suggested targeting not only wholesale markets but also supermarkets and niche markets inland. These efforts could be further supported by negotiating and signing additional trade protocols with China to expand the range of exportable products.

PREPARATION: Workers at Bến Tre Province-based Mekong Fruit Company packing fresh coconuts for export to China. — VNA/VNS Photo Công Trí

Nguyễn Thị Thành Thực, general director of Hà Nội-based AutoAgri Software Technology JSC, said her company was developing an agricultural trading platform to assist tens of thousands of farming households, cooperatives and companies in meeting export requirements. The platform integrates advanced technologies for origin tracing, a critical step for official export to China.

Thực expressed her company’s willingness to collaborate with agencies under the Ministry of Industry and Trade (MoIT) to promote the official export of Vietnamese fruits and vegetables to China.

Meanwhile, Herman Xu of Chinese Miniso Group highlighted Việt Nam’s advantages in supply chain responsiveness, widespread port infrastructure, and its position as a key destination for production shifts from Northeast Asia. However, he noted that Vietnamese businesses must address challenges related to scaling production capacity and ensuring consistent quality and services.

Xu recommended that Vietnamese enterprises strengthen cooperation with Chinese retailers and distributors while actively participating in trade promotion events to build connections in the market.

To further improve export prospects, experts stressed the importance of complying with China’s stringent quality standards and quarantine requirements. Vietnamese businesses must also invest in advanced technologies for production, processing and preservation to meet market demands.

Building a workforce fluent in Chinese and familiar with the country’s culture is another critical step. Experts also urged enterprises to leverage business-to-business and business-to-consumer platforms, including e-commerce, to reach a wider audience.

Nguyễn Trung Kiên from the MoIT’s Asia-Africa Market Department said that China was currently the largest importer of Vietnamese fruits and vegetables, accounting for up to 90 per cent of lychee and 80 per cent of dragon fruit exports.

Kiên emphasised the importance of branding, cautioning that businesses must protect their brands to avoid losing recognition in this lucrative market.

By addressing these challenges and capitalising on opportunities, Việt Nam’s fruit and vegetable export to China has the potential for sustained growth, experts say.  

Central hub urges investment from US partners in key industries

The central city of Đà Nẵng has been pushing for cooperations with US partners and businesses in the development of the semiconductor and AI industries, human resources training, sea port management, research, innovation, the environment and waste management and treatment.

Chairman of the city’s people’s committee, Lê Trung Chinh, who paid working visits in the US recently, urged American companies to invest in Đà Nẵng and support the city in implementation of a series of key plans for hi-tech industries.

Chinh asked the San Jose based Supermicro company, a premier provider of advanced server building block solutions, to review possible investment in an AI data centre in Đà Nẵng and human training in AI management.

Senior vice president of worldwide sales at Supermicro, Phidias Chou said it will consider creating a centre in Đà Nẵng, adding that Supermicro and Sovico group from Việt Nam, had already inked a Memorandum of Understanding (MoU), signed during the official visit to the US by the Vietnamese Party’s Chief Tô Lâm in September.

In a visit to wireless company Qorvo Inc, headquartered in North Carolina, Đà Nẵng city’s leader asked them to set up representative office in the city.

Đà Nẵng has been accelerating the completion of Software Park No 2 in order to provide working space for strategic semiconductor and AI and hi-tech industries investors.

Qorvo’s power General Manager, Jeff Strang said it would host a working team to make a survey and field visit to Đà Nẵng in readiness to open an office and begin expert training programmes in semiconductors and chip design.

Qorvo Việt Nam Inc, which has one hundred members in Việt Nam, has positively participated in chip design and manufacture in the country.

Having signed a MoU with Marvell Việt Nam in Đà Nẵng in August, the central city proposed the implementation of series items in the existing deal. Marvell Việt Nam opened an office in Đà Nẵng in May to accelerate co-operation in human resources development in chip design and AI.

Lợi Nguyễn, executive vice president of cloud optics at Marvell, said employee numbers in Việt Nam have increased by 25 per cent and the company will be supporting them in training hi-quality human resources, as well as building a lab for semiconductor, AI and chip design studies.

Chairman of Đà Nẵng City asked Nvidia company, the global chip maker, to continue the Deep Learning Institute University Ambassador programme in improving capability for lecturers at universities in Đà Nẵng.

Đà Nẵng also urged Nvidia to support start-ups, innovation and R&D programmes, as well as improving the quality and the innovation ecological system in the city.

In a working visit to ITS-Group INC and Philogix Consultant company, Đà Nẵng offered investment opportunities in building a manufacture plant in the supply chains of semiconductor equipment at Đà Nẵng Hi-tech Park.

A series of programmes in R&D, technology transfer in biotech and pharmaceutical industries were also discussed with the US partners in the working session.

Earlier, Đà Nẵng City’s working group paid visits to New York and Washington DC, to talk about plans to build an international finance centre in the city.

Vice chairman of the Financial Services Volunteer Corps, Bill Mills said he highly appreciated the potential and opportunities of Đà Nẵng in developing a financial market.

He said that Đà Nẵng should review experiences in operating a international finance centres and offer various preferential rates for investors. The company said it would help Đà Nẵng connect partners and businesses in finance centre development in the future.

Đà Nẵng is hoping to get experience and learn more about management in waste-to-energy technology from Win Waste Innovations in operations of its Wheelabrator Westchester plant.

In a meeting with assistant Secretary of State and Chief of the Bureau of Economic and Business Affairs, Carol Henniger, the chairman of Đà Nẵng City asked for further supports and assistance from the US department of State and the International Technology Security and Innovation Fund (ITSI Fund) in cooperative activities in the semiconductor industry.

Đà Nẵng City urges investment and cooperation from Qorvo Inc. Photo courtesy of Liên Phương

The assistant Secretary expressed her hopes for continuous cooperation between the city and Arizona State University in Assembling, Testing and Packaging (ATP).

In a discussion with USAID, Đà Nẵng asked for implementation of co-operative fields that the two sides agreed in a MoU signed in January in environment, solid waste management, sorting waste at source and the proposal of establishment of a carbon credit office in Đà Nẵng.

It’s the second working visit by the city to call for investment from the US, after a first successful trip in 2023.

HCM City Customs answers questions for businesses

In order to promote import and export activities of HCM City, the city Customs Department held a meeting with businesses to answer questions about tax policies and customs clearance procedures.

Import and export are important activities in promoting international trade, ensuring economic security and contributing to national development.

Therefore, many businesses recommend that customs authorities create favourable conditions for import and export activities, and reduce costs and customs clearance time, thereby improving competitiveness in the international market.

A representative of the Việt Nam Logistics Service Enterprise Association reflected that Cát Lái Port has a very large volume of goods cleared through customs, but the goods inspection area is very small, leading to slow inspection speed.

Although the inspection rate is low, only about 5 per cent, it takes a lot of time, causing congestion for import and export activities, and businesses have to wait a long time to complete inspection to take goods out of the port.

Answering the questions raised by businesses, Vương Tuấn Nam, Head of the Management and Supervision Department of the city Customs Department, admitted that there are still many businesses that do not fully understand the procedures related to importing, leading to improper implementation. In specific cases, businesses should proactively register to work with the customs procedure team or with the customs branch at the border gate. If the problem is not resolved, they should immediately contact the city Customs Department for handling.

Enterprises should proactively contact relevant units for timely resolution. The city's Customs will also discuss with other local customs departments to unify processes and procedures, creating the best conditions for enterprises to import and export, Nam added.

Regarding inspections, the City Customs Department said that it will discuss with the Cát Lái Port operator about a plan to improve and expand the on-site inspection area and at the same time propose that the General Department of Customs allow the use of a business's production and storage address to carry out inspections to reduce the pressure on transportation and waiting time of businesses.

The HCM City Investment and Trade Promotion Center (ITPC) in coordination with the city Customs Department organised a dialogue conference among businesses and the government on November 27 in HCM City to disseminate legal regulations and answer questions in implementing tax policies, management policies, and specialised inspections of import and export goods for the business community in the area.

Opening ceremony held for programme promoting Vietnamese agricultural products

The 'Pride of Vietnamese Agricultural Products' programme officially started in Hà Nội yesterday, running until December 1.

The event, organised by the Hà Nội Investment, Trade and Tourism Promotion Centre (HPA) in collaboration with the Long Biên District People’s Committee and other agencies, is part of Hà Nội's 2024 Promotion Programme.

Speaking at the opening ceremony, Bùi Duy Quang, Deputy Director of HPA, said: "The 'Pride of Vietnamese Agricultural Products' programme aims to strengthen promotion activities and seek markets for agricultural products, OCOP products, and outstanding agricultural and rural products from Hà Nội and other provinces.

"The event contributes to stimulating agricultural production and rural development while connecting these products with consumers in the capital and creating opportunities for producers to access local distribution channels."

This year’s event has drawn the participation of approximately 150 enterprises, co-operatives and OCOP entities from 32 provinces and cities across the country, including Đà Nẵng, Quảng Ninh, Bình Định, Thừa Thiên-Huế and Hà Nội.

The programme features around 120 booths displaying over 1,500 product lines. These include agricultural products, exemplary OCOP items, regional specialties, processed goods, green agricultural products, high-tech applications and traditional handicraft products.

The Hà Nội Cooperative Alliance is also hosting a 'Weekend Market' showcasing OCOP products, agricultural goods and traditional crafts at 20 booths. Hòa Bình Province’s exhibition area features 30 booths, introducing and promoting its agricultural products and OCOP items, enriching visitors’ experiences.

The programme also encourages safe year-end shopping while supporting the 'Vietnamese People Prioritise Vietnamese Goods' campaign.

Hà Nội honours 150 Vietnamese products favoured by consumers in 2024

The 2024 'Vietnamese Products Favoured by Consumers' awards, organised by the Hà Nội Fatherland Front and the Department of Industry and Trade, took place on November 28 at Trịnh Công Sơn Pedestrian Street, Tây Hồ District.

Nguyễn Lan Hương, Chairwoman of the Vietnam Fatherland Front’s Hà Nội Committee, said many businesses and production facilities have introduced innovative products and services, achieving recognition of high-quality Vietnamese products beloved by consumers.

The programme, running for three months, attracted 276 products and services from 142 businesses in 18 categories. A total of 535,929 consumers participated in online and direct voting, up 5.55 per cent from 2023.

In the end, 150 products and services were recognised.

Among them, 25 products and services were ranked in the TOP 1 category, 35 in TOP 2, 40 in TOP 3 and 50 in TOP 4. This recognition serves not only as an honour for the business community but also as a symbol of innovation and the unwavering commitment of Vietnamese enterprises to assert their market position and elevate the status of Vietnamese goods.

To support business recovery and growth, the Steering Committee urged party committees to strengthen leadership and called on agencies to boost communication, streamline procedures, and address enterprise issues.

Meanwhile, businesses are encouraged to strengthen brand promotion, expand domestic and export markets and continue building consumer trust.

Nghệ An approves US$590 million fabric factory investment from Singapore

The Standing Committee of the Nghệ An Provincial Party Committee on Thursday approved a foreign direct investment (FDI) project worth US$590 million from Singapore.

The Mega Textile-Việt Nam factory will be built by Mega Textile Singapore Private Limited Company, on a total area of over 51 hectares in the Thọ Lộc Industrial Park, located in the Southeast Nghệ An Economic Zone in Diễn Châu District.

The factory will produce various types of fabrics at a yearly capacity of 67,200 tonnes, knitted goods (10,300 tonnes), coloured yarn (7,200 tonnes), clothing (130 million pieces), belts (100 million) and semi-finished products (2.2 million).

Preparation procedures are expected to be completed by the second quarter of 2025. The factory will begin trial operations in the second quarter of 2028 and is expected to provide jobs for 15,000 locals.

The project will boost FDI investment capital into Nghệ An this year to nearly $1.7 billion, bringing the province into the top 10 localities with largest FDI in the country.

Mega Textile Singapore Private Limited was established in 2022. It is a wholly-owned subsidiary of Best Pacific International Holdings Limited, a publicly listed group on the Hong Kong Stock Exchange.

Best Pacific is a leading producer and trader of fabrics for renowned global sportswear and undergarment brands. The group built its first factory in Việt Nam in Hải Dương Province in 2016, providing employment for over 1,600 people. 

Hải Dương exports pomelo to EU

The northern province of Hải Dương on Thursday held a ceremony to announce the first shipment of its Hòa Bình pomelo to the EU market by sea for the 2024 export season.

The shipment includes Tân Lạc red-fleshed pomelos and green-skinned ones grown in Hòa Bình. Cultivated under stringent technical and food safety standards, they were harvested, processed, and packaged at a facility in Hải Dương to meet EU import requirements.

Nguyễn Ngọc Nam, deputy general director of FUSA-Eco Hòa Bình, said that in 2022, the company exported 120 tonnes, but due to unfavourable weather conditions in 2024, export volume is estimated at 60 tonnes. Yet, international consumers have praised the high quality of Hòa Bình pomelos.

In the future, the company plans to tap into the Middle Eastern market. It is also committed to long-term collaboration with Hòa Bình’s agricultural sector to expand the global reach of local produce.

To enhance export value, FUSA-Eco Hòa Bình has called on local authorities to assist farmers in improving product quality, acquiring additional plantation codes, and adhering to strict cultivation standards to ensure superior fruit quality and appearance.

Hòa Bình boasts 10,240 hectares of citrus fruits, with 5,400 hectares dedicated to pomelo. Major growing areas include Lương Sơn, Tân Lạc, and Yên Thủy districts, yielding an estimated 109,000 tonnes annually. The province has issued 35 export plantation codes to facilitate access to international markets.

Nguyễn Hồng Yến, head of Hòa Bình's Crop Production and Plant Protection Sub-Department, noted that 2024 marks a new milestone with the export of Tân Lạc red-fleshed and green-skinned pomelos, following the success of the Diễn pomelo in previous years. This year’s export volume is projected at 250-300 tonnes, targeting markets such as the EU, the US, and the UK. Modest in quantity, yet these exports lay a groundwork for expanding domestic and international market penetration.

Hòa Bình pomelos have already made significant strides, entering the UK market in 2022 and the US market in 2023. These achievements affirm the province’s reputation for high-quality agricultural products. Future plans include accessing the Japanese and the Republic of Korea markets, with efforts focused on meeting international standards, enhancing branding, and promoting trade.

Through comprehensive measures, Hòa Bình aims to solidify its foothold in the global agricultural export sector while boosting the value of its citrus fruits. 

2-per-cent VAT reduction extended to the end of June

The National Assembly has approved an extended reduction of value added tax (VAT) from 10 per cent to 8 per cent until the end of June.

According to a resolution passed on Saturday, goods and services subject to the 10 per cent tax rate will continue to enjoy an 8 per cent rate for another six months.

The VAT reduction is not applied to real estate, securities, banking, telecommunications, information and technology, coal, chemicals and products and services subject to special consumption tax.

Extending the VAT reduction is expected to help stimulate consumption and support production and business by lowering the cost of goods and services, as the economy continues to struggle, economic expert Đinh Trọng Thịnh said.

The Ministry of Finance estimated that the VAT reduction will cause a drop in State budget revenue of around VNĐ26.1 trillion (US$1.028 billion) in the first half of 2025. However, it will help promote production and business, which will also create revenue for the State budget.

A VAT reduction has been applied since 2022 to support production and business and promote consumption after the COVID-19 pandemic.

In 2022, the VAT reduction added up to VNĐ51.4 trillion, which helped accelerate domestic consumption. The total retail sale of goods and services increased that year by 19.8 per cent against 2021.

The VAT reduction in the second half of 2023 totalled VNĐ23.4 trillion, with the total retail sales of goods and services rising by 9.6 per cent in 2023.

Estimates place the total cost of the VAT reduction in 2024 at around VNĐ49 trillion.

Bà Rịa–Vũng Tàu aims to develop free trade zone

Vice chair of the People’s Committee of Bà Rịa–Vũng Tàu Lê Ngọc Khánh said on Sunday that the southern province is capable of accommodating a free trade zone.

He was speaking at a workshop on the opportunities brought by free trade zones and ways to develop them held in Xuyên Mộc District by the Ministry of Industry and Trade.

Việt Nam currently has no free trade zones in operation except for a pilot model in Đà Nẵng, which was approved by the National Assembly and is expected to be completed next year.

Khánh said that after analysing the potential advantages of a free trade zone linked to seaports in Bà Rịa–Vũng Tàu, the province’s authorities realised the 1,000-hectare Cái Mép Hạ area met the necessary conditions to establish a free trade zone.

“Conducting thorough research for the development of the zone will be a key political task for the province’s authorities in the near future,” he said.

The economic benefits of free trade zones were also discussed at the workshop.

In the context of global economic integration, free trade zones have become an effective model for promoting import-export activities and developing logistics, experts said. They provide a flexible mechanism that allows businesses to benefit from tax exemptions, tax reductions and simplified administrative procedures.

This is especially important for Việt Nam, an economy heavily dependent on exports that is currently expanding its market through free trade agreements (FTAs) with many large global partners.

However, at the moment, Việt Nam’s legal system does not have regulations on the procedures, authority, decision-making processes, management models, operational mechanisms, or decentralised management in free trade zones, making it difficult to apply a unified approach.

In Bà Rịa-Vũng Tàu Province, Resolution 24 by the Politburo has set out a task for the local government to form a free trade zone associated with seaports in the Cái Mép Hạ area, and to continue to develop and modernise the Cái Mép–Thị Vải international gateway port into a large international transshipment port with regional and global significance. 

Yên Bái grants investment registration certificate for US$87 industrial park project

The People’s Committee of Yên Bái Province has granted the investment registration certificate for what is forecast to become the district's second largest industrial zone.

The certificate was awarded for the Trấn Yên Industrial Park infrastructure construction and business investment project Phase 1 to Viglacera Corporation JSC.

Phase 1 of the project will span 254.59 hectares, with an investment goal of constructing and operating industrial infrastructure. The total expected investment capital is VNĐ2.18 trillion (US$87.3 million).

The project implementation progress will span from the third quarter of 2024 to the fourth quarter of 2028.

The provincial Party Secretary, Trần Huy Tuấn, emphasised that once operational, Phase 1 of the Trấn Yên Industrial Park project would become the province's second-largest industrial zone. It is expected to play a key role in driving Yên Bái's socio-economic development.

The project aligns with the province's strategy of attracting investment and fostering industrial growth in the northern midlands and mountainous regions.

The industrial park is expected to create high-value contributions to industrial production and export turnover while accelerating the economic transformation of Trấn Yên District and Yên Bái Province towards industrialisation and modernisation.

Nguyễn Anh Tuấn, General Director of Viglacera Corporation JSC, said the project would soon commence construction, providing an excellent opportunity to attract investors.

He asked for the province's assistance in land clearance, electricity supply and clean water access to ensure timely project execution.

Viglacera Corporation is committed to prioritising wastewater treatment and deploying the project at the highest speed to draw investors to Yên Bái.

The Trấn Yên Industrial Park, located in Bảo Hưng and Minh Quân communes, Trấn Yên District, is expected to cover 339 hectares and operate as a multi-sector industrial park. It will focus on agricultural and forestry product processing, high-end building materials, mineral processing, chemicals, consumer goods, high-tech industries and supporting industries.

Localities report progresses in IUU fishing combat

Coastal localities nationwide have implemented practical and effective activities and specific measures, demonstrating their determination to join the nation’s efforts to have the “yellow card” that the European Commission (EC) has imposed on Vietnamese seafood regarding illegal, unreported, and unregulated (IUU) fishing lifted in 2024.

Strong efforts have been made to restructure the fisheries sector towards greater transparency, responsibility, and sustainability, thus improving the quality of living conditions for fishermen, contributing to safeguarding the nation's sovereignty and sovereign rights over its seas and islands.

Combating IUU fishing activities is a key and urgent task of Vietnam's fisheries sector to remove the EC’s "yellow card" warning, which not only helps boost the efficiency of seafood exports to the European Union (EU) but also creates opportunities for developing sustainable aquaculture and fisheries.

The southernmost province of Ca Mau has 4,265 fishing vessels, including 1,542 vessels with a length of 15 metres and above. All of these have been equipped with vessel monitoring system (VMS). The locality has seven large estuary with high vessel traffic, including five operational fishing ports.

Le Van Su, Vice Chairman of the provincial People’s Committee underlined efforts made by authorised agencies in inspection, monitoring, issuing warnings and notes through VMS, contributing to minimising IUU fishing violations.

There has been no incident of local fishing vessels being caught by foreign authorities for illegal fishing activities since August 2022.

Nguyen Huu Nghia, Director of the fisheries sub-department of the south-central province of Binh Dinh said 100% of the locality's offshore fishing vessels have been equipped with VMS.

Notably, the province has basically controlled fishing vessels that are at high risk of violating IUU fishing regulations, including fishing illegally in foreign waters, he noted.

In the south-central province of Binh Thuan, one of the three key fishing grounds in the country, prominent achievements have been made in combating IUU fishing. Thanks to strict monitoring of high-risk vessels, the province has not detected any fishing vessels violating foreign waters in 2024.

According to the provincial People's Committee, the control of fishing vessels entering and leaving ports has been tightened, while the traceability of
seafood through electronic software systems has also made progress.

The provincial People’s Council approved a resolution that stipulates a policy to support subscription fees for VMS devices. It is expected that nearly 2,000 local fishing vessels will receive financial support for three years with a total value of nearly 12.3 billion VND (over 484,000 USD)./.

Seminar seeks to boost Vietnam-China e-commerce cooperation

The Ministry of Industry and Trade and the People’s Committee of the northern border province of Lang Son held a seminar on developing cross-border e-commerce on December 3.

Vice Chairman of the provincial People’s Committee Doan Thanh Son said that the event demonstrates Lang Son's determination to promote e-commerce cooperation with partners, especially Chinese enterprises.

The province vows to create favourable conditions to support domestic and foreign enterprises to learn about investment, cooperation and business on digital platforms, and services such as logistics, import-export, banking and finance, he added.

Director of the Vietnam E-Commerce and Digital Economy Agency (IDEA) Le Hoang Oanh said that the development of cross-border e-commerce must focus on sustainability, improve the legal framework, integrate tax declarations, enhance the management of e-commerce goods imported and exported via express delivery, and prioritise the development and optimisation of logistics and payment systems.

In Lang Son, e-commerce has developed rapidly in recent times. Currently, the province has nearly 21,000 products listed on e-commerce platforms, ranking second nationwide. Over 228,000 agricultural production households have been trained in digital skills, and more than 72% of the adult population has electronic payment accounts.

Lieu Anh Minh, Deputy Director of the provincial Department of Industry and Trade, stated that Lang Son will implement comprehensive digital transformation, develop a synchronised digital ecosystem with common platforms, and strengthen international cooperation activities to promote trade and connect business exchanges between Vietnam and China.

In addition, the province will enhance the implementation of strategies for developing logistics services and efficiently managing and exploiting the border trade infrastructure already invested in at border gates, with a focus on piloting the building of smart border gates.

A representative from China’s Guangxi Zhuang Autonomous Region said that in order to promote cross-border e-commerce cooperation between China and Vietnam, Guangxi is actively working to upgrade border gates and ensure smooth customs clearance. He added that the prospects for the development of cross-border e-commerce between the two sides are promising.

On the same day, Lang Son held a workshop to introduce its investment environment to enterprises and investors from Chinese localities.

Import and export turnover through border gates in Lang Son is estimated at 66.4 billion USD in 2024, an increase of 27.6% over the previous year, accounting for a significant proportion of the total trade turnover between Vietnam and China./.

M&A market awaiting a boom in 2025: Experts

The mergers and acquisitions (M&A) market is eyeing a booming year in 2025 when delayed deals are likely to resume thanks to a better business environment, according to experts.

Nguyen Cong Ai, Deputy General Director of KPMG Vietnam, noted that Vietnam’s M&A market is following the global slowdown. However, he held that the country will continue to attract investment in key sectors such as real estate, consumer goods, and the industrial sector, with emerging opportunities in technology, renewable energy, and finance.

He quoted data from KPMG, which revealed that in the first three quarters of 2024, Vietnam’s mergers and acquisitions recorded 3.2 billion USD worth of transactions, a 45.9% increase over the previous year. The real estate, consumer goods, and industrial sectors accounted for 88% of the deals, with average deal sizes around 56.3 million USD.

According to Deputy Minister of Planning and Investment Nguyen Duc Tam, there was a decline in M&A deals in the first 10 months of 2024, with only 2,669 foreign-invested deals valued at over 3.68 billion USD in total. This represents a 10.4% decrease in the number of deals and a 29% drop in value compared to 2023.

Ai held that following a year of accumulation in 2024, a boom is expected for the M&A market of Vietnam in 2025 as investors’ interest is diversifying to many new and attractive sectors besides old ones like real estate, consumption and industry.

Experts predicted that activity will improve in 2025, with delayed deals likely to resume. The return of investors, particularly from Japan, the Republic of Korea, Singapore, and the US, is expected to drive this recovery. The Vietnamese Government’s active support for high-growth sectors, infrastructure development, and digitalisation is expected to play a key role in revitalising the market, they said.

Particularly, Ai perceived that among all economic sectors, renewable energy, health care, and education are bright spots.

Meanwhile, in the field of real estate, David Jackson, General Director of Avison Young Vietnam, predicted that industry, logistics, commercial housing, offices and complex projects will dominate the M&A market in the coming time.

He explained that new laws are set to help shorten legal procedures and better protect the rights and interests of stakeholders, thereby making the investment environment more stable and transparent.

Foreign investors remain optimistic about the outlook of the Vietnamese economy and its real estate sector, and will continue pursuing their strategy to expand and diversify investment portfolios in the country, said Jackson./.

Hoa Binh’s pickled pearl onions reach UK

Pearl onions grown for long in Yen Thuy district, the northern province of Hoa Binh have become a popular side dish in the local diet.

Yen Thuy district currently has more than 130 hectares dedicated to pearl onion farming, with the majority of it concentrated in Phu Lai commune.

From a beloved traditional food, many families in Phu Lai have decided to expand their cultivation areas and produce onions commercially.

To increase the value of this local crop, the Phu Lai Agricultural Cooperative has started developing its onions into a brand: ‘Yen Thuy Pickled Pearl Onions’.

According to Bui Van An, director of Phu Lai Agricultural Cooperative, the pearl onion cultivation area in Phu Lai was gradually expanded in 2020, after the commune received a trademark certification from the Intellectual Property Office.

In 2022, the cooperative's pickled onions were awarded a three-star One Commune One Product (OCOP) certification, which gave them an edge in reaching national and international markets.

In October 2024, the first batch of Yen Thuy pickled pearl onions was exported to the UK, marking a significant milestone for the co-operative.

A lot of effort has gone into ensuring that the onions’ quality and packaging meet international requirements.

Bui Thi Hien, a member of Phu Lai Agricultural Cooperative directly involved in the production of the onions, said that extra attention and care were put into the exported batch.

“The ratio of water, salt and onions was calculated carefully, with the highest precision possible. The finest onion bulbs were selected since they were very young,” she said.

“We really hope that this product will be known widely, not only in the country but also around the world,” Hien added. “If the pickled onions can be exported regularly, their value will increase, and our farmers will have more confidence to expand their crops.”

To meet export requirements, the production process had followed strict food safety standards, without the use of preservatives, An from Phu Lai Agricultural Cooperative said.

“Each onion is carefully selected, cleaned, fermented and packaged in glass jars to maintain its unique flavour, medicinal properties and crispness,” he said.

The jars and product bags are then labelled with full information about the onions’ origin, including barcodes and traceability data, according to the director. For exports, each jar weighs 390 grams and meets the packaging and quality standards required by the UK.

Nguyen Thi Thanh Huong, Director of the R.Y.B Joint Stock Company, which delivered the onions to the UK, said: "We, along with our import partner, chose Yen Thuy pickled pearl onions from thousands of OCOP-certified products from several localities.

“The onions are a promising product for international markets because they are easy to preserve, ready to use, made from natural sources, and good for health. These qualities make them suitable for current export market trends and demands."

After this first export order, the company plans to work with Yen Thuy producers to expand production and develop more export orders, if the onions meet the UK market’s requirements.

They would also explore the potential to export similar high-quality processed agricultural products, Huong said.

The shipment of onions in October was the first batch of processed agricultural products from Yen Thuy district to be introduced to the UK market.

The provincial Department of Agriculture and Rural Development had worked closely with the provincial People’s Committee to guide and support Phu Lai Cooperative before the export, said Nguyen Hong Yen, head of Hoa Binh province’s Plant Protection and Cultivation Division.

Agricultural officials helped farmers standardise raw material sources, as well as improve their processing and packaging techniques, he said.

“Before packaging and shipping, product samples were tested and proven to meet food safety standards set by the EU and the UK," Yen said.

The export was an outstanding achievement for agricultural production in Yen Thuy district, according to Bui Thi Xanh, deputy head of Yen Thuy’s Department of Agriculture and Rural Development.

"This is a positive sign, which opens a new direction for our district’s unique product and promotes the shift toward commercial crop production," she said.

“We hope that the demand for our onions will increase so that they can be introduced to more markets around the world, not only the UK.”

To support local businesses like the Phu Lai Co-operative in improving product quality, the department guided their production to comply with VietGAP standards, Xanh said.

The agricultural authorities planned to continue organising investment promotion programmes and encouraging production units to participate in trade and product marketing events, she said.

"We will also provide training on the use of technology in production to enhance their capabilities, and make sure that the quantity and quality of the products meet the requirements of domestic and international markets," Xanh said./.

Forum seeks to boost Vietnam-China agro-forestry-fisheries trade

A forum was held in the northern border province of Lang Son on December 3 to seek ways to enhance the agro-forestry-fisheries trade between Vietnam and its neighbour China.

Co-organised by the Ministry of Agriculture and Rural Development (MARD) and the provincial People’s Committee, the forum offered an opportunity for businesses, producers, and exporters to raise proposals to ministries, agencies, and management agencies of both countries.

Le Thanh Hoa, Deputy Director of the MARD’s Department of Quality, Processing, and Market Development, noted that China is Vietnam's largest trading partner and a key market for agro-forestry-fishery exports.

The bilateral trade accounts for a quarter of Vietnam's total trade with the world. In turn, Vietnam is one of China's largest trading partners globally and the largest in the Association of Southeast Asian Nations (ASEAN), he continued.

Agro-forestry-fisheries trade has seen steady growth, with the value reaching 16 billion USD in the first 11 months of this year, up 13.4% compared to the same period in 2022.

China has approved the entry of 11 dairy factories and products, along with nine bird’s nest businesses of Vietnam. It has recognised a list of 48 live aquatic species and 128 products eligible for import into the country. To date, 596 Vietnamese companies have been licensed to ship aquatic products to the country. Chinese representatives revealed Vietnamese fruits and other products like green bean cake, coconut candy, and dried lychee are highly favoured in their country.

MARD Deputy Minister Tran Thanh Nam said as part of efforts to implement the Vietnam-China joint statement on further strengthening their comprehensive strategic cooperative partnership, the sides have agreed to enhance the bilateral trade./.

Top legislator's visit to Japan generates huge opportunities for bilateral trade

The ongoing official visit to Japan by National Assembly Chairman Tran Thanh Man and his spouse is expected to open up many opportunities for bilateral trade cooperation, said insiders.

After more than five decades since the two countries established the diplomatic ties, the friendship and cooperation between Vietnam and Japan have grown increasingly strong. In particular, the upgrade of relations to a Comprehensive Strategic Partnership for peace and prosperity in Asia and the world reflects a high level of political trust and opens a new period of substantive and effective cooperation across all fields.

According to experts, bilateral economic and trade relations are built on the foundation of bilateral and multilateral free trade agreements (FTAs) that the two countries have signed, as well as through foreign direct investment (FDI) projects and official development assistance (ODA) of Japan in Vietnam.

Japan is currently the largest ODA provider, the second-biggest labour cooperation partner, the third-largest investor and tourism partner, and the fourth-biggest trading partner of Vietnam. Bilateral trade reached 47.6 billion USD in 2022, 44.98 billion USD in 2023, and 38.1 billion USD in the first 10 months of 2024.

As of October 2024, Japan is the third-largest foreign investor in Vietnam, with 5,456 valid projects worth over 77.37 billion USD. Notably, it is the largest provider of ODA for Vietnam, with a total value of more than 2.81 trillion JPY (27.5 billion USD) as of the end of the 2020 fiscal year, accounting for more than 26% of the Vietnamese Government’s total foreign loans.

Japan's ODA capital has played a crucial role in developing key infrastructure projects in Vietnam, creating momentum and positive effects for sustainable socio-economic development. It has also supported the transfer of advanced technology and the training of high-quality human resources for the Sourheast Asian country.

In March 2024, the two sides agreed to launch the "Japan - Vietnam joint initiative in the new era". They agreed to continue discussions towards achieving specific cooperation results in energy, innovation, strengthening supply chains, developing high-quality human resources, and improving the investment environment.

In August 2024, Tokuyama Corporation of Japan established a subsidiary in Vietnam to produce and sell multicrystalline silicon for semiconductors. Two months later, Rorze Robotech company decided to build a new factory in an industrial park in the northern port city of Hai Phong, expanding its factory manufacturing robots used in semiconductor production equipment.

At a meeting in July with Japanese Minister in charge of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Shindo Yoshitaka, Vietnamese Minister of Industry and Trade Nguyen Hong Dien affirmed that the countries' economic and trade relations have been flourishing, as evidenced by many achievements and close collaboration since both became members of the CPTPP.

According to the Ministry of Industry and Trade, both sides have benefited much from the bilateral and multilateral FTAs they are part of, especially the Vietnam - Japan Economic Partnership Agreement (VJEPA), the ASEAN - Japan Comprehensive Economic Partnership Agreement (AJCEP), the CPTPP, and the Regional Comprehensive Economic Partnership (RCEP).

The structure of imports and exports between the two countries is clearly complementary, with no direct competition. Vietnam mainly produces and exports seafood, crude oil, textiles, apparel, electrical wires and cables, wood and wood products, computers and components, coal, and footwear, to Japan. Meanwhile, it imports commodities serving industrial production from the Northeast Asian nation like machinery, equipment, electronic products and components, steel, fabric, and chemicals.

Vietnam is actively collaborating with many Japanese enterprises such as Toyota, Canon, and Panasonic to implement programmes and projects aimed at seeking and developing Vietnamese suppliers, towards improving the competitiveness of Vietnamese businesses, increasing the rate of locally made components in their products, and helping local firms join supply chains of Japanese companies.

A recent report reviewing the Vietnam - Japan economic ties released by HSBC showed two-way trade has grown significantly over the past three decades thanks to great efforts in trade liberalisation. It has posted a compound annual growth rate (CAGR) of 15.2% since 1990.

With a population of over 126 million, Japan is a market with high import demand for such products as fish, shrimp, eel, meat, soybean, cereal products, fresh and processed vegetables, and coffee. Meanwhile, Vietnam is strong at those products and has good supply capacity.

Particularly, the RCEP, which officially came into effect on January 1, 2022, has created the world's largest free trade area, accounting for approximately 30% of the global GDP and a market with one-third of the world's population. Making use of opportunities provided by this deal to increase exports and reduce trade barriers is a great goal for management agencies and businesses of Vietnam.

In addition, experts believe that many Japanese businesses plan to open factories in Vietnam will also create an important impetus for bilateral trade to thrive more strongly in the time ahead./.

Eleven-month seafood export almost reaches 9.2 billion USD

Vietnam's seafood industry is riding a wave of success, with November exports reeling in an impressive 924 million USD, a 17% annual increase, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

Total earnings in the 11-month period came close to 9.2 billion USD, an 11.5% year-on-year surge, putting the country on track to meet its 10 billion USD export target for 2024.

Shrimp exports are set to top 4 billion USD by year-end, while other key seafood products like tra fish and tuna also posted robust growth. The export value of mollusks, in particular, skyrocketed by 180%.

In addition, the domestic seafood industry is actively boosting the processing and export of by-products such as fish meal, said VASEP Communications Director Le Hang.

In the first 10 months of this year, fish meal netted 220.4 million USD, with full-year earnings projected at 264 million USD. China, consuming nearly 90% of Vietnam's fish meal exports, solidifies its position as the primary destination.

China (including Hong Kong) has eclipsed the US as Vietnam’s largest seafood importer, with a remarkable 61% growth in November. This pushed the cumulative import value for the first 11 months to over 1.7 billion USD, an annual 19% rise.

The US market spent 1.67 billion USD on Vietnamese seafood in the 11-month period with a 21% increase in November. Despite looming US tariffs, the outlook for December remains buoyant.

Hang expressed confidence that Vietnam will achieve its 10 billion USD export goal for aquatic products in 2024, an 11.5% increase from 2023. Shrimp and tra fish remain the industry's backbone, with an optimistic forecast for seafood exports in 2025 despite challenges from international trade policies./.

Vietnam – China international trade and tourism fair kicks off in Lang Son

The Vietnam – China international trade and tourism fair 2024 opened in the northern province of Lang Son on December 2.

As an annual event held alternatively in Lang Son and Guangxi province of China, the fair is part of the national trade promotion programme for 2024 and the trade and tourism promotion programme of Lang Son in 2024.

Themed "Linking - cooperation - development," the fair brings together 200 domestic and international enterprises, which are displaying industrial and agriculture – forestry products, processing products, household goods, electronics, and food across 240 pavilions.

The five-day event also includes tourism and trade promotion activities between travel agencies of the two countries, and events to introduce tourism products, tours, and attractive destinations of Lang Son in particular and other localities in Vietnam in general.

In his opening speech, Vice Chairman of the provincial People’s Committee Duong Xuan Huyen, who is also head of the fair's organising board, said the event serves as a bridge connecting businesses of the two countries, thus boosting trade and tourism cooperation between Lang Son and other localities nationwide and Guangxi.

He showed the hope to strengthen investment, trade and tourism cooperation between Lang Son and other Vietnamese localities with Guangxi and other Chinese peers, and enhance mutual understanding and cooperation between the business communities and people of the two nations.

Zou Zhanye, head of the industrial park reform and development office of the Guangxi Zhuang Autonomous Region said with a series of economic, trade and tourism exchange activities, the fair is expected to strengthen cooperation between Vietnamese and Chinese businesses, thus contributing to realising mutually beneficial development.

Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan stated that as part of the national programme on trade promotion jointly held by the Ministry of Industry and Trade (MoIT) and the People's Committee of Lang Son province, the event contributes to boosting trade exchange between the two sides, and import-export growth through the Lang Son international border gate.

At the opening ceremony, many tourism and trade cooperation agreements were inked./.

Empowering Vietnamese firms with digital transformation

In response to the growing demand of digital transformation and smart production, the Ministry of Industry and Trade has implemented harmonious measures to support domestic businesses in navigating the fourth industrial revolution.

The ministry has actively collaborated with multinational corporations and major foreign direct investment (FDI) firms to enhance the competitive capacity of Vietnamese companies. These support programmes have focused on production improvement, workforce development, digital transformation, and smart factory development, helping local businesses expand their international reach.

At a recent forum on digital transformation towards smart production, Director of the ministry’s Industrial Development Support Centre Chu Viet Cuong said that the centre’s partnerships with such leading FDI firms as Samsung and Toyota aim at assisting domestic companies to apply digital transformation into production and develop smart factory models while creating databases to facilitate knowledge sharing among the enterprises.

The digital transformation journey has yielded significant outcomes. Hanel PT, for instance, reported a 300% growth in revenue after investing in automation since 2017. The company has already increased its automation rate to 60% and aims to reach 80% to meet smart production standards.

With a view to promoting digital transformation, the ministry commits to completing legal framework and stepping up support for the firms with training courses, consultations, and financial incentives to be rolled out in the coming time.

According to Cuong, the ministry will issue a support programme for industrial production towards the development of smart factories by 2030 and continue training technical teams to raise enterprises’ awareness of digital transformation. Besides, competent branches, sectors, and localities will work to reduce administrative procedures, facilitating the firms’ technology adoption.

He said industry associations are encouraged to serve as a bridge that enables enterprises to engage in knowledge exchange regarding digital transformation and the implementation of the smart factory management models./.

Binh Duong posts 10 billion USD in trade surplus this year

Binh Duong province is projected to achieve a record trade surplus of 10 billion USD this year, reaffirming its role as a leading economic hub in southern Vietnam.

According to the provincial Department of Industry and Trade, the province will rake in an estimated 34.5 billion USD from exports, up 12.7% year-on-year, and spend some 24.5 billion USD on imports, an increase of 12.2% compared with last year’s figure.

Exports from Binh Duong currently account for over 10% of Vietnam’s total export value. Six key products, namely wood and wood products, textiles, footwear, steel, and electronics, contributed 19.3 billion USD, making up 56.2% of the province’s total export value. Notably, wood export value rose by 17.6% to 6.5 billion USD, while textile export increased by 15.1%, reaching 3.2 billion USD.

According to Nguyen Thanh Toan, Director of the provincial Department of Industry and Trade, the 10-billion USD trade surplus reflects the resilience and adaptability of local businesses. He said enterprises have effectively utilised free trade agreements to expand markets, particularly in the US, EU, Japan, and China.

Toan said that in the coming time, the department will foster trade connections and provide timely information to industries and businesses through regular Ministry of Industry and Trade meetings to boost exports. It will also explore new markets, such as Halal markets, to broaden opportunities for local goods.

Chairman of the Binh Duong People’s Committee Vo Van Minh attributed the record trade surplus to close cooperation between local authorities and the business community. Moving forward, the province plans to invest heavily in industrial infrastructure, digital transformation, and supportive policies to sustain growth in 2025.

It will focus on developing trade and logistics infrastructure and improving transportation networks, particularly those connecting ports and industrial zones, aiming to create favourable conditions for businesses to maintain production and exports.

Businesses will be encouraged to adopt digital transformation, smart manufacturing, and supply chain automation to enhance productivity and product quality. Binh Duong plans to invest in high-quality workforce training, provide financial support, and offer consulting on legal regulations in potential export markets, the official said./.

Wood exporters could leverage trade deal with UK: experts

The UK-Vietnam Free Trade Agreement (UVFTA) is one of the key drivers boosting the growth of Vietnam’s timber and wood product exports to the UK, industry experts have said.

According to the Vietnam Timber and Forest Products Association (VIFORES), exports to the UK are expected to be worth 230 million USD this year, up from 195 million USD last year. In the first 10 months this year, they were worth 182.1 million USD.

The association said the trade deal, which took effect in 2021, has positively impacted the wood industry due to preferential tax rates that will move towards zero% in five years for all wood products.

Vietnam’s timber and wood products hold a competitive advantage over those from other countries exported to the UK, it said.

Ngo Sy Hoai, VIFORES’ deputy chairman and general secretary, said while exports to the UK are modest compared to overall exports (estimated at 16 billion USD this year), the UK is an important export market of Vietnam’s wooden products in Europe, accounting for 40% of the country’s exports to the EU27.

"We view the UK market as a gateway to Europe. If we can export extensively to the UK, we can confidently enter other markets, as the UK has stringent requirements regarding quality, design, and environmental standards.

“Vietnamese businesses have met these requirements successfully, with no safety warnings from this market."

According to the Ministry of Industry and Trade’s import-export department, more than 90% of wood products exported to the UK were furniture, a high-value item for the industry.
Increasing furniture exports to the UK could significantly contribute to the industry's growth in the coming years, it said.

The department underscored that globally, the UK ranks among the top five importers of wooden furniture. However, Vietnamese furniture products have a very small share of that market, meaning considerable opportunities remain for Vietnamese exporters.

The UK’s accession to the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) in 2024 would pave the way for even more opportunities, it said.

Despite these opportunities, the department and Hoai caution about challenges when exporting to the market since it has strict environmental and quality requirements.
To overcome them and grab opportunities arising due to the UKVFTA, the department said Vietnamese wood exporters should adopt appropriate strategies and understand the UK market.

They should focus on quality and design and on improving production technologies to meet the stringent requirements there.

They need to embrace a comprehensive transition towards sustainability, adopt digital marketing tools to enhance promotion and participate in trade fairs, particularly in the UK, to showcase their products and find new customers, it added.

According to Hoai, to further leverage the trade deal, Vietnamese businesses need to focus on product design and developing their brands.

Exports of wooden products with proprietary designs account for less than 10%, he said.

This has disadvantages and added value remained modest, he pointed out, saying businesses should promote products with their own designs to improve value.

Encouragingly, some leading firms have invested in design and marketing, taking advantage of technological advancements in the digital era, he said.

While the UK is no longer part of the EU, many of the bloc’s regulations still apply in the UK.

For instance, the EU Deforestation Regulation is expected to be enforced similarly in the UK. Businesses must prepare to meet traceability and accountability requirements to ensure their products do not cause deforestation or forest degradation, he said.

At a recent seminar, Vu Viet Thanh of the Ministry of Industry and Trade's European-American market department advised Vietnamese businesses exporting to the UK to thoroughly research market information and their potential partners to avoid fraud and scams.

They themselves need to ensure supply chain transparency and product traceability, he warned.

According to experts, British businesses look for diverse and reliable sources for furniture supply.

By continuing to leverage the benefits of the UKVFTA, Vietnamese manufacturers could solidify their market position in the UK, they added.

Thanh said, to help Vietnamese businesses effectively leverage free trade agreements, the European-American market department would strengthen dissemination of information and training to raise awareness among the business community of sustainable development, green production and brand building.

The department would persuade trade partners to remove barriers to market access, provide support and guidance to businesses for adapting quickly and effectively to changes in market requirements and standards and intensify trade promotion, particularly by leveraging distribution channels, to take Vietnamese goods to sourcing groups worldwide./.

PM outlines key tasks for development of logistics sector

Prime Minister Pham Minh Chinh has outlined three objectives and seven key tasks to promote the growth of Vietnam’s logistics sector, including reducing logistics costs from 18% to 15% by 2025.

Addressing the Vietnam Logistics Forum 2024, which was held in southern Ba Ria-Vung Tau province on December 2, PM Chinh pointed to the need to increase the sector's contribution to the country's GDP from 10% to 15% and even 20%, while raising Vietnam’s share of global logistics from 0.4% to 0.6%, and lifting the sector's growth rate from 14-15% to 20%.

Along with raising public awareness of the position, role, and importance of logistics in the country’s development process, it is necessary to create a breakthrough in institutional development, with efforts to refine frameworks to ensure that the logistics sector develops in line with the three key objectives, contributing to achieving double-digit growth and ushering the country into a new era — the era of nation’s rise, where the country becomes prosperous and strong.

The Government leader called for the development of modern, seamless logistics infrastructure that reduces input costs and enhances the competitiveness of products. This includes promoting the growth of air, maritime, and high-speed rail transport. Additionally, a focus must be placed on smart governance, high-quality human resources, and strengthening logistics diplomacy, while modernising domestic logistics operations, building and developing a free trade nation with close connections among various transport methods - air, sea, rail, inland waterway, and highways, linking the world’s free trade zones and the international transport network.

The PM requested relevant ministries, sectors, and localities to urgently focus on building a free trade nation, finalising Vietnam’s logistics development strategy and establishing international free trade zones.

PM Chinh highlighted the Government's role in building institutions, strategies, and plans to create a conducive environment for the development of logistics. He stressed the need for localities to increase activeness and self-reliance in boosting logistics development, and urged businesses to become more self-reliant and make more contributions to the development of policies that balance the interests of the State, the people, and enterprises, emphasising the motto of harmonising benefits and sharing risks.

The leader also called on foreign organisations and businesses to collaborate and invest in Vietnam, following the principles of mutual understanding, shared vision, and joint actions, mutual benefits and common development.

Vietnam is seen by experts as having significant opportunities to promote the growth of the logistics sector thanks to expanding infrastructure, including road systems, airports, seaports, warehouses, and logistics centres. The development is rapidly meeting the market's diverse demands.

In recent years, Vietnam’s logistics sector has grown at about 14-16% per year, with a scale of around 40-42 billion USD a year. According to the World Bank's rankings, Vietnam currently ranks 43rd out of 155 countries in logistics efficiency and is among the top five in the Association of Southeast Asian Nations (ASEAN).

In the first nine months of 2024, nearly 6,500 logistics companies were established with total registered capital of 36.55 trillion VND (1.43 billion USD) and nearly 28,900 employees. This marked a 13.5% increase in the number of companies and an 18.3% rise in the number of employees, despite a decrease of 11.3% in capital compared to the same period in 2023.

The Vietnam Logistics Forum, organised annually by the Ministry of Industry and Trade since 2013, aims to promote the application of advanced technologies in supply chain operations, enhance competitiveness in Ba Ria – Vung Tau and the Southeastern region, and foster cooperation among businesses, investors, and management agencies to develop the logistics sector in Vietnam.

This year, the forum sends out a message of Vietnam’s interest in developing free trade zones as a breakthrough solution for logistics growth, helping position Vietnam as a logistics powerhouse, and contributing to the nation's industrialisation and modernisation./.

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