According to Deputy Director of the State Bank of Vietnam’s HCM City branch, Nguyễn Đức Lệnh, by the end of October 2024, the total outstanding consumer loans in the locality reached more than VNĐ1 quadrillion, up 6.3 per cent compared to the end of 2023 and 12 per cent over the same period last year. Of the value, loans for buying, leasing, building and repairing houses accounted for the highest proportion.

The data shows that the demand for consumer credit has been growing in line with the growth trajectory of the economy over recent months. Socio-economic and environmental factors were the main factors affecting consumer credit growth in general and in the city, Lệnh said.

"The housing loan segment has been growing better in the past three months and achieved the highest growth rate of 1.3 per cent in October 2024. This was the segment with the highest proportion, so the positive growth of this segment will continually promote consumer credit growth going forward," Lệnh believes.

In addition to housing loans, the demand for consumer loans to serve daily life is also a factor positively affecting the growth of consumer credit.

Along with the trend of decreasing interest rates, consumer loan interest rates have also decreased significantly, partly promoting the recovery of consumer credit growth at banks in recent months. For home loans, the interest rate is currently below 10 per cent.

During the peak season at the end of this year, many banks have launched consumer loan packages with preferential interest rates to meet the business and shopping needs of individual customers, which is expected to further promote consumer credit growth.

For example, Agribank has implemented a preferential short-term loan programme for individual customers serving production and business activities, with interest rates starting at only 4 per cent per year for a three-month term, 4.5 per cent per year for a 3-6 month term, and 5 per cent per year for a 6-12 month term.

For home loans and loans to serve living needs, Agribank applies medium and long-term interest rates starting at 6 per cent per year, fixed for the first six months, 6.5 per cent per year, fixed for the first 12 months, and 7 per cent per year fixed for the first 24 months.

At VIB, there are two outstanding loan packages, including a loan package for one million apartments and a VNĐ30 trillion package for loans to buy townhouses, with interest rates of 5.9 per cent, 6.9 per cent, 7.9 per cent per year, fixed for 6, 12 and 24 months.

ACB is also implementing a VNĐ4 trillion programme with interest rates from 8.5 per cent per year, fixed for five years. 

PM direction to promote credit management solutions

Prime Minister Phạm Minh Chính has required the State Bank of Vietnam (SBV) to strengthen credit management solutions in 2024, to ensure that credit capital is pumped into the economy in the most practical and effective way.

Under Official Dispatch No. 122/CĐ-TTg, sent to the SBV’s Governor Nguyễn Thị Hồng, the PM noted the SBV must no longer have any bottlenecks, delays, incorrect timings or misdirected addresses or any misconduct in the credit granting of the credit institution system.

The central bank must enhance inspection, examination, control and close supervision of credit granting and interest rate announcements and promptly and strictly handle violations according to regulations.

Under the directive, the PM also requested the SBV to continually implement more effective and stronger solutions within its authority to reduce the lending interest rates of the credit institution system, with an aim of supporting people and businesses to create conditions fordevelop production and business, generate revenue and profit, and repay loans to banks.

“Credit institutions must continue to make further efforts to reduce lending interest rates through cost reduction, simplification of administrative procedures, increased application of information technology, and digital transformation,” the directive urged.

The SBV must direct credit institutions to focus credit on production and business sectors, priority sectors and economic growth drivers, digital transformation, green transformation, circular economy, sharing economy, science, technology and innovation. It must also strictly control credit for risky sectors to ensure safe and effective credit activities.

Preferential credit packages for important sectors to promote the growth drivers of the economy according to the Government's policy, and for priority sectors such as social housing, workers' housing, forestry and aquatic products, must be implemented effectively and transparently.

The PM also instructed banks to promote lending to serve production, business and consumer needs at the end of this year and the Lunar New Year.

Following the PM’s move, the SBV on Thursday issued Official Letter No. 9774/NHNN-CSTT on stabilising deposit interest rates and striving to reduce lending interest rates.

Specifically, the SBV directs credit institutions to maintain a stable and reasonable deposit interest rate level, contributing to stabilising the monetary market and the market interest rate level.

In addition, credit institutions must continue to resolutely and effectively implement solutions to simplify lending procedures, enhance the application of information technology and digital transformation in the lending process to strive to reduce lending interest rates to support businesses and people to promote production and business.

Credit institutions are also required to continually publicise average lending interest rates, the difference between average deposit and lending interest rates, and lending interest rates for credit programmes and packages on their websites.

The SBV also requires its branches nationwide to direct credit institutions in their areas to maintain stable deposit interest rates and implement measures to strive to reduce the lending interest rate level. They need to actively announce information on lending interest rates and preferential credit programmes to support businesses and people in getting better access to bank loans. 

Trung Nam Group incurs loss of VNĐ2.9 trillion in 2023

Trung Nam Group, which has a business focus in renewables, incurred a loss of nearly VNĐ2.9 trillion (US$113.3 million) in 2023 from a profit of VNĐ252 billion in the previous year, according to the information made public by Hà Nội Stock Exchange on Tuesday.

The company’s equity reached VNĐ24.3 trillion as of the end of last year. The payable-to-equity ratio was 2.68, equivalent to more than VNĐ65.1 trillion in liabilities. The outstanding bond was estimated at VNĐ18.25 trillion, VNĐ6 trillion lower than at the end of 2022.

Trung Nam Group disclosed its financial report for the first time in 2012, when the company reported an after-tax profit of more than VNĐ1.6 trillion.

Its renewable energy subsidiaries, Trung Nam Đắk Lắk Wind Power, recorded outstanding bonds worth VN Đ9.354 trillion as of the end of June and Trung Nam Solar Power VNĐ1.8 trillion.

Founded in 2024, Trung Nam Group operates in five sectors including energy, infrastructure, construction, real estate, and information electronics, but it has spearheaded renewable energy in recent years.

Trung Nam Group has nine power projects with a total design capacity of 1,406 MW and an output of nearly 4 billion kWh per year. Its major projects are the VNĐ 12-trillion Trung Nam Thuận Nam solar power project with an output of 1.2 billion kWh per year, and the VNĐ 16-trillion Ea Nam wind power with an output of 1.1 billion kWh per year. 

Aeon Mall to expand investment in more localities in Việt Nam: CEO

National Assembly Chairman Trần Thanh Mẫn on Wednesday received Ohno Keiji, President and CEO of Aeon Mall Co., Ltd, as part of his visit to Japan.

The Vietnamese top legislator welcomed Aeon Mall to open its supermarkets in Việt Nam's major cities such as Hà Nội and HCM City, and Thừa Thiên-Huế Province.

Việt Nam always welcomes and creates favourable conditions for foreign investors, including Aeon Mall, Mẫn affirmed, adding that many other Vietnamese provinces and cities are also ready to co-operate with the company to open more shopping malls in the future, including the northern province of Bắc Ninh.

With the signing of the memorandum of understanding between Aeon Mall and the Mekong Delta city of Cần Thơ taking place on the same day, Ohno Keiji expressed his hope that in the coming time, the company will cooperate with the authorities and people of Cần Thơ to further develop the city while continuing to expand investment cooperation in other provinces and cities nationwide. 

Việt Nam boosts fruit imports from the US

In the first ten months of 2024, Việt Nam’s fruit and vegetable imports reached nearly US$1.87 billion, marking a 15.7 per cent increase year-on-year. The surge in imports came from the US, Thailand and Myanmar, which rose by about 30 per cent, 31.1 per cent and 33.1 per cent, respectively.

In October, fruit and vegetable import turnover amounted to nearly $211.7 million, a 30.8 per cent increase year-on-year, according to the General Department of Customs.

The key suppliers of fruits and vegetables to Việt Nam during the first ten months were China, the US, Australia and Myanmar.

China remained the largest supplier, contributing $794 million, accounting for 42.5 per cent of total fruit and vegetable imports. Imports from this country increased by 21.2 per cent year-on-year, though a slight 4.6 per cent drop was recorded in October compared to September.

The US followed with $336 million, up by nearly 30 per cent, making up 18 per cent of total imports.

US agricultural products have increasingly reached Vietnamese consumers, including apples, grapes, oranges, cherries, pears, blueberries, peaches and nectarines.

According to the US Department of Agriculture (USDA), the US exported $3.1 billion in agricultural products to Việt Nam in 2023. Key products include cotton, soybeans, grains, nuts, wheat, poultry, dairy products and fresh fruits.

Currently, three types of US fruits, including tangerine, lemons and plums, are in the negotiation process for official export to Việt Nam.

However, challenges remain as US fruits exported to Việt Nạm still face high import tariffs. Plums are subject to a 20 per cent tariff, blueberries 15 per cent and tangerines 20 per cent.

At the seventh Việt Nam - US Business Summit held last week, Prime Minister Phạm Minh Chính expressed hopes for the negotiation of a bilateral Free Trade Agreement (FTA) between Việt Nam and the US.

He also stressed the need to continue building a legal framework to promote economic and trade relations, creating more favourable conditions for businesses in both countries. 

Eleven-month seafood export almost reaches $9.2 billion

Việt Nam's seafood industry is riding a wave of success, with November exports reeling in an impressive US$924 million, a 17 per cent 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, an 11.5 per cent year-on-year surge, putting the country on track to meet its $10 billion export target for 2024.

Shrimp exports are set to top $4 billion 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 per cent.

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

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

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

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

Hằng expressed confidence that Việt Nam will achieve its $10 billion export goal for aquatic products in 2024, an 11.5 per cent 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.

Top legislator has working breakfast with Keidanren leaders

National Assembly (NA) Chairman Trần Thanh Mẫn had a working breakfast with leaders of the Japan Business Federation (Keidanren), which was co-hosted by Fujimoto Masayoshi and Ueno Shingo, co-chairs of the Japan-Việt Nam Economic Committee of Keidanren.

Fujimoto Masayoshi emphasised that over the past five decades, Japan and Việt Nam have developed a close friendship in various areas including economy, diplomacy, security, culture, and personnel exchanges.

He highlighted that 2023 marked a significant milestone with the 50th anniversary of Japan-Vietnam diplomatic relations. Most recently, in October 2024, Japanese Prime Minister Shigeru Ishiba met with Vietnamese Prime Minister Phạm Minh Chính at the 44th and 45th ASEAN Summits and related meetings in Vientiane, Laos, and with President Lương Cường on the sidelines of the APEC Economic Leaders’ Week in Lima, Peru in November. The Japanese and Vietnamese PMs had a discussion at the G20 Summit in Brazil last month.

Expressing his pleasure at the dynamic cooperation between the two countries at multiple levels, Fujimoto Masayoshi affirmed that the Japanese business community will continue to contribute to the further development of Japan-Việt Nam relations, particularly in trade, investment, infrastructure and human resources development, with the goal of deepening economic ties between the two nations.

He said that the Japan-Việt Nam Joint Initiative, launched in 2003, serves as a long-term effort to establish a foundation for economic cooperation. Through this initiative, Japanese companies have played a crucial role in encouraging Japan's direct investment in Việt Nam, creating jobs, and contributing to the recovery and growth of Việt Nam's economy.

Notably, in March 2024, Japan and Việt Nam agreed to launch the Japan-Việt Nam joint initiative in the new era, he noted, expressing his hope that Japanese businesses and economic organisations will soon see stable cooperation outcomes in areas such as green development, digital technologies, innovation, and high-quality human resources development. He asked for the support of the Vietnamese NA, Government, and NA Chairman Mẫn himself in these efforts.

For his part, Mẫn welcomed the valuable contributions of Keidanren and the role of the two co-chairs as well as Japanese business leaders in advancing bilateral relations, serving as a bridge for Japanese investors to land more investments in Việt Nam.

He said that his official visit aims to further Việt Nam's foreign policy while proactively strengthening and promoting the Việt Nam-Japan comprehensive strategic partnership for peace and prosperity in Asia and the world, bringing it to a new phase of effective and substantive cooperation across various fields.

The top legislator encouraged businesses and localities of the two countries to seize opportunities to enhance exchanges and cooperation, leverage each other’s strengths, and continue advancing the Việt Nam-Japan economic relationship, maintaining its role as a highlight of bilateral ties and a driver for mutual development.

At the event, representatives from Japanese businesses and Vietnamese authorities sought ways to promote cooperation towards the goal of carbon neutrality by 2050. The discussions also covered expanding investment activities in Việt Nam in areas such as infrastructure development, digital transformation, green transition, semiconductors, and the training of high-quality human resources, as well as ensuring electricity supply for production.

Speaking highly of the proposals from the Japanese enterprises, the top Vietnamese legislator said that he will direct the parliament's agencies to work with the Government and relevant ministries and sectors to study and institutionalise them, helping improve the business climate and encourage stable and long-term foreign investment in Việt Nam, particularly those from Japan.

He laid stress on recent legislative revision to facilitate the operation of foreign firms, and particularly expressed his hope that the amended Electricity Law, which was adopted at the recent eighth session of the 15th National Assembly, will open up various cooperation and investment opportunities in the sector for both domestic and foreign enterprises.

Mẫn also voiced his hope for continued collaboration with Japan in the area of technology transfer for the development of a harmonious transport system to serve the people and the economy.

Describing institution, infrastructure and human resources as the three bottlenecks for Việt Nam's development, he said Việt Nam is working to remove the roadblocks, revise existing laws and issue new policies to prepare the groundwork for a new era – the era of the nation’s rise.

He said he hopes that the Việt Nam – Japan comprehensive strategic partnership will general numerous collaboration opportunities for the two countries, including the business communities.

Within the framework of his visit, Mẫn witnessed the exchange of several cooperation documents encompassing such areas as organisation of local administration conferences, energy, industrial park, logistics and aviation services between localities and enterprises of both nations. 

Yên Thủy pickled pearl onions reach UK, prepare for expansion

Pearl onions have been grown for a long time in Hòa Bình Province's Yên Thủy District, and have become a popular side dish in the local diet.

Yên Thủy District currently has more than 130 hectares dedicated to pearl onion farming, with the majority of it concentrated in Phú Lai Commune.

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

To increase the value of this local crop, the Phú Lai Agricultural Co-operative has started developing its onions into a brand: ‘Yên Thủy Pickled Pearl Onions’.

According to Bùi Văn An, director of Phú Lai Agricultural Co-operative, the pearl onion cultivation area in Phú Lai was gradually expanded in 2020, after the commune received a trademark certification from the Intellectual Property Office.

In 2022, the co-operative'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 Yên Thủy 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.

Bùi Thị Hiền, a member of Phú Lai Agricultural Co-operative 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,” Hiền 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 Phú Lai Agricultural Co-operative 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.

Yên Thủy pickled pearl onions are preserved in glass jars, each weighing 390 grams.

Nguyễn Thị Thanh Hương, director of the R.Y.B Joint Stock Company, which delivered the onions to the UK, said: "We, along with our import partner, chose Yên Thủy 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 Yên Thủy 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, Hương said.

The shipment of onions in October was the first batch of processed agricultural products from Yên Thủy District to be introduced to the UK market.

Hòa Bình Province’s Department of Agriculture and Rural Development had worked closely with the provincial People’s Committee to guide and support Phú Lai Co-operative before the export, said Nguyễn Hồng Yến, head of Hòa Bình 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," Yến said.

The export was an outstanding achievement for agricultural production in Yên Thủy District, according to Bùi Thị Xanh, deputy head of Yên Thủy’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 Phú 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.

Financial security and wellness: a key focus of Vietnamese customers

Financial security and wellness are the primary concerns for Vietnamese customers in the long term, as per a new report titled the Consumer Sentiment Report for Q3 2024 released by researcher NIQ.

Based on responses from 1,200 Vietnamese consumers in HCM City and Hà Nội, NIQ found that 70 per cent of consumers prioritise financial security, while 66 per cent focus on securing their future well-being.

Other highly sought-after aspects include time flexibility, meaningful experiences, strong relationships, and future sustainability.

In the short term, the personal focus in the next six months includes enhancing career prospects to improve financial status, prioritising physical health and well-being, emphasising family and relationship dynamics, and promoting sustainable living practices.

NIQ's research indicates that many Vietnamese consumers are reducing spending to avoid waste, even as their financial situation gradually improves.

Seventy-three per cent actively avoid waste, 47 per cent spend more time at home, and 49 per cent have cut back on luxury spending.

Efficiency also ranks high in their priorities, with 85 per cent comparing prices before purchasing and 78 per cent willing to pay more for higher quality products. These trends demonstrate a sustainable and conscientious approach to consumption, focusing on quality over cost.

The report also confirms a gradual improvement in the financial situation of Vietnamese consumers after a period of volatility.

Sixty-seven per cent of respondents stated they are in a better financial position compared to the previous year, with only 10 per cent reporting a decline in their financial status.

Another positive indicator is improving economic sentiment among Vietnamese consumers.

About 45 per cent of respondents agreed that Việt Nam is not currently in a recession.

This confidence, the report said, is particularly notable in Hà Nội and HCM City, where optimism levels have increased by 10 per cent year-over-year. This shift in perception is rooted not only in subjective feelings but also in tangible changes in the business environment and job market.

NIQ attributed the improvement to further support by the robust growth of e-commerce, driven by such factors as compelling promotions, convenient delivery options, and the ability to research and plan purchases online.

Although optimistic about the national economy and reaching higher incomes, Vietnamese customers seemed to be burdened by essential expenses such as healthcare costs.

The rising costs of essential goods, particularly food, have prompted 64 per cent of consumers to focus solely on purchasing essentials they need and 63 per cent to buy less quantity in total.

Promotions play a crucial role in this landscape, with 75 per cent of consumers taking advantage of a special offer or deal to stock up on everyday grocery items. Interestingly, 42 per cent of consumers reported they only buy promoted items if they already favour the brand, highlighting the limited impact of promotions on brand loyalty.

About 57 per cent of Vietnamese consumers reported they live comfortably and are able to buy something just because they want it, while 33 per cent said they only had enough money for food, shelter and the basics, and 9 per cent said they are able to spend freely.

Binh Dương posts $10 billion in trade surplus this year

Bình Dương Province is projected to achieve a record trade surplus of US$10 billion this year, reaffirming its role as a leading economic hub in southern Việt Nam.

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

Exports from Bình Dương currently account for over 10 per cent of Việt Nam’s total export value. Six key products, namely wood and wood products, textiles, footwear, steel, and electronics, contributed $19.3 billion, making up 56.2 per cent of the province’s total export value. Notably, wood export value rose by 17.6 per cent to $6.5 billion, while textile export increased by 15.1 per cent, reaching $3.2 billion.

According to Nguyễn Thanh Toàn, Director of the provincial Department of Industry and Trade, the $10-billion 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.

Tòan 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 Bình Dương People’s Committee Võ Văn 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. Bình Dương plans to invest in high-quality workforce training, provide financial support, and offer consulting on legal regulations in potential export markets, the official said. 

Indonesia extends safeguard duty for VN's plastic pellets

Indonesia has extended safeguard measures on expanded polystyrene (EPS) plastic pellets imported from Việt Nam for another three years, according to the Trade Remedies Authority under the Ministry of Industry and Trade.

The extension is the result of an investigation conducted by the Indonesian Safeguards Committee (KPPI) on imported EPS plastic pellets (HS code 39.3.11.10) into Indonesia from 2021 to 2023, which was started on July 22.

Việt Nam is not among the developing countries excluded from the measures.

The safeguard duty will be effective from December 23, 2024, to December 22, 2027, in the form of an absolute tax.

For the first year (from December 23, 2024 to December 22, 2025), the tax rate will be 2,352,478 Indonesian rupiahs (US$147.6) per metric tonne (MT).

For the second year (from December 23, 2025 to December 22, 2026), the rate will be 2,328,473 Indonesian rupiahs per metric tonne.

For the third year (from December 23, 2026 to December 22, 2027), the rate will be 2,304,468 Indonesian rupiahs per metric tonne.

According to Indonesia’s statistics, in 2023, imports from Taiwan (China) accounted for 47 per cent of total imports into the country, followed by China at 38 per cent, and Việt Nam at 13 per cent.

KPPI’s investigation showed that although there was a decline in the absolute and relative import volume during the investigation period, Indonesia's domestic revenue still dropped by 3 per cent, leading to a 9 per cent reduction in profits.

The committee concluded that imports threatened Indonesia’s domestic industry, so safeguard measures are necessary to address the damages and help the economy adjust.

EPS plastic pellets are used in foam blocks or sheets for soundproofing and thermal insulation in homes, and in protective packaging for electronics, refrigeration equipment, ceramics and glassware.

Manufacturing reports modest growth but trends are concerning

Việt Nam’s manufacturing sector continued to show improvement in November, with the Purchasing Managers’ Index (PMI) staying above the 50-point threshold for a second consecutive month of robust business activities, a relatively quick recovery from Typhoon Yagi in September.

However, the sector’s PMI fell to 50.8 points in November, down from 51.2 points in October.

An S&P Global report, released on Monday, said Việt Nam’s manufacturing PMI highlighted three concerning trends: a slowdown in new order growth due to declining exports, a second consecutive month of job cuts and prolonged supplier delivery times.

The report said the sector experienced slower growth in November compared to the previous month, with modest gains in output and new orders. The latter was mainly due to weaker export performance by the Southeast Asian economy.

Meanwhile, firms continued to reduce the labour force in a bid to cut costs, which contributed to an increase in backlogged work. Input costs increased only modestly, leading to a slight rise in output prices.

It said while the PMI remained above 50, pointing to a second month of improving conditions after September’s decline due to Typhoon Yagi, the lower PMI score of 50.8 compared to October's 51.2 showed only modest growth in the sector.

As some firms ramped up production to meet increased new orders, others reported relatively weak demand, resulting in slower output growth. Despite improvements in domestic demand and the acquisition of new customers, weaker global economy demand hampered overall growth.

New export orders have fallen, even after a brief increase during the previous month, with export activity declining. Output and new orders continued to rise, at a slower rate. Employment fell for the second month running in November.

In some instances, companies said they had been forced to reduce their labour force to manage costs. However, with fewer workers companies struggled to complete orders on time, leading to streaks of rising backlogs, said the report.

Efforts to keep costs low resulted in a slight increase in input price, below the year’s average so far as respondents claimed the main culprits were supply shortages and currency depreciation. Output price rose only modestly.

Manufacturers said they would likely face longer supplier delivery times during the remaining weeks of the final quarter. Delivery times continued to increase in November, for the third month in a row and with more delays compared to October, as respondents said transportation and raw materials were major challenges for suppliers.

Overall, the sector reduced its purchasing activity in November. Coupled with supply chain issues, inventories have been going down fast, including finished goods as companies must fulfil orders.

Business confidence fell for the second consecutive month, reaching its lowest level since January. On the other hand, manufacturers remained optimistic about prospects for 2025 with high expectations for new product launches, business expansion plans and rising numbers of new orders.

Economics Director at S&P Global Market Intelligence, Andrew Harker, said Việt Nam’s manufacturing sector experienced setbacks in November, namely slower growth in output and new orders, which could be attributed to a weaker global demand. He said however that as demand bounces back companies should find the confidence to invest in additional capacity.

AirAsia announces five new routes to Việt Nam

In line with plans to leverage Việt Nam’s strategic location and significant appeal as one of the airline’s hubs in the Indochina region, AirAsia continues to focus on launching new routes to the popular destination.

New routes announced recently include HCM City to Phnom Penh commencing from December 22 and from Hà Nội to Phnom Penh launching from January 24, 2025.

Adding to the continued expansion of AirAsia in Việt Nam, flights from Phú Quốc to Bangkok (Don Muang Airport) returned recently on October 27, while flights from Đà Lạt to Kuala Lumpur recommenced on November 1. The first-ever services between HCM City and Malaysia's Kota Kinabalu are set to launch on December 3.

AirAsia Chief Commercial Officer Paul Carroll said AirAsia commits to boosting affordable connectivity to Việt Nam as the airline continues to resume operations to the country post COVID-19, bringing over 1.7 million visitor seats annually to the ‘Land of the Rising Dragon’ with the launch of these five new routes based on strong demand trends.

“Việt Nam has always been among our most popular destinations. It is now over 19 years since our first flight to the country and we are excited about the huge potential of not only these new services, but also significant growth opportunities in the future.”

On the launch of the Cambodia routes into Việt Nam, Vissoth Nam, CEO of AirAsia Cambodia said: “We are excited to add Việt Nam to AirAsia Cambodia’s fast-growing network of international destinations.

"As the newest low-cost airline in Cambodia which launched in May this year, we are witnessing strong demand for services in ASEAN and beyond. While there are many similarities between Cambodia and Việt Nam, they are also very different, offering unique and affordable experiences that will prove popular with both local citizens of both countries and global visitors to the region.”

AirAsia Group already flies 165 flights weekly to and from Việt Nam (providing more than 1.5 million visitor seats annually into the region). With the new services, the airline will be flying 195 flights weekly to and from Việt Nam (or over 1.7 million visitor seats annually).

AmCham members honoured with CSR Awards 2024

The American Chamber of Commerce (AmCham) honoured 35 outstanding member companies with its Corporate Social Responsibility (CSR) Recognition Awards at a ceremony in Hanoi on December 4.

The honourees are companies that have demonstrated outstanding CSR initiatives in 2024, showing strong commitment to and understanding of the linkages between business operations and society, along with those conducting business in a way that creates both long-term economic and social values in Vietnam.

The annual CSR Awards mark the tenth anniversary this year. They aims to raise awareness about corporate social responsibility among AmCham members and the community.

To win a CSR award, companies must excel in four distinct categories, including aligning business objectives with societal demands, creating long-term economic and social benefits, effectively communicating and sharing best practices, and ensuring sustainability in their programmes.

Addressing the event, AmCham Executive Director Adam Sitkoff stated that while business decisions in the past primarily aimed at achieving economic outcomes, companies today must also take into account the moral, ethical, and social implications that may result from these decisions.

CSR is no longer measured by the amount of money a company donates to charity but by the extent of its involvement in activities to improve the quality of life for people in Vietnam, he noted.

Sitkoff highlighted the significance of the CSR programmes performed by AmCham member companies in Vietnam, saying that as customers, employees, and society increasingly value CSR, many leaders view it as a creative opportunity to strengthen their business operations and simultaneously contribute to the country's development./.

Vietnam, Switzerland look towards stronger links for sustainable future

The Swiss-Vietnam Economic Forum (SVEF) held a meeting in Geneva on December 4 to review its activities in 2024 and outline a programme for 2025 to further strengthen economic and cultural ties between the two countries.

Attracting over 300 delegates from Switzerland, Vietnam, and countries in Europe and ASEAN, SVEF 2024 marked a significant milestone in the forum's journey, demonstrating its role in fostering collaboration.

SVEF has also played a pivotal role in fostering relations with local authorities, hosting delegations from Can Tho, Vinh Long, and Cao Bang of Vietnam to explore investment opportunities. A workshop for Nam Dinh province alone stood out as another highlight, particularly with a recent visit by investors to the Vietnamese northern locality.

These initiatives underscored SVEF's commitment to intensifying regional engagement, positioning it as a core focus and mission for the future.

Building on this success, upcoming events will be organised at Switzerland's University of Zurich in June, and in Vietnam’s central Da Nang city in November, bringing together leaders from governments, businesses, and academia to promote innovation, sustainable development, and shared growth.

The forum will focus on key areas such as technology, education, finance, and manufacturing. Many memoranda of understanding to promote investment and collaboration will be inked at the event. It will prioritise sustainability, digital transformation, and workforce development in 2025.

According to SVEF Chairman Philip Rösler, SVEF 2025 is not just an event but a catalyst for collaboration, innovation, and shared prosperity.

The forum’s vision for 2025 is to expand its impacts, enabling participants to explore opportunities not only between Switzerland and Vietnam but also in the ASEAN region and beyond, he said.

SVEF Vice Chairman Nguyen Ho Nam stated that Vietnam offers many opportunities for international businesses due to its rapid economic growth and strategic position.

Sectors such as technology, green growth, and education align perfectly with Vietnam's strategic priorities, Nam said, adding that by facilitating appropriate partnerships through SVEF, Swiss businesses and organisations can fully capitalise on these opportunities.

Meanwhile, SVEF Vice Chairman Ivo Sieber highlighted the synergy between the strengths of Switzerland and Vietnam, saying that Switzerland's expertise in innovation and sustainable development complements Vietnam's dynamic growth.

SVEF 2025 is expected to provide a unique platform for Swiss stakeholders to connect with Vietnam's dynamic economy and access other rapidly growing markets in ASEAN, he noted./.

Binh Phuoc province develops OCOP products

Implementing the One Commune One Product (OCOP) Programme, many localities in the southern province of Binh Phuoc have effectively tapped into the potential and advantages of regional agricultural specialties to promote commodity production and unlock its rural potential.

Nguyen Hoang Dat, of Phuoc Binh ward in Phuoc Long town, has successfully developed six processed products from locally grown cashews. In 2021, five of his products were certified 4-star OCOP products.

He said that Binh Phuoc is considered the capital of cashew in Vietnam thanks to favourable natural conditions and this advantage paves the way for the district to develop premium cashew brand.

In Bu Dang district, which boasts the largest area of cashew cultivation in the province, residents have shifted from growing rice and crops to cultivating high-value industrial plants and fruit trees.

Currently, the district has five OCOP-certified products, with three rated 4 stars and two rated 3 stars.Truong Van Thanh, a producer of salted roasted cashews from Tho Son commune, has held a 4-star OCOP certification for three years.

He noted that his product is sourced from locally grown nuts, purchased from members of the Nhu Hoang Agricultural Service Cooperative.

Head of the Bu Dang district’s Agriculture and Rural Development Department Nguyen Huy Long said that the district has recently collaborated with the provincial Department of Agriculture and Rural Development and relevant units to facilitate businesses, cooperatives, and household production facilities in bringing their products to OCOP sales centres and fairs.

Notably, businesses have actively participated in distributing OCOP products through agents in and out the province.In Bu Dang district, cashew cultivation occupies a significant area.

Leveraging this advantage, Bu Dang district has focused on selecting and supporting the development of OCOP products in its communes. The district aims to establish models for developing raw material areas linked with OCOP products along with agricultural and rural experiential tourism services.

The relevant sectors at both the provincial and district levels are supporting and encouraging stakeholders to invest in innovation and apply scientific and technological advancements in production, processing, preservation, and packaging.

Additionally, they will also pay more attention to designing and packaging to better meet market demands.

According to Director of the provincial Department of Agriculture and Rural Development Pham Thuy Luan, the province encourages businesses, farms, cooperatives, and household businesses to implement digital transformation in agriculture, especially in the digitization of agricultural products and OCOP products towards forming a national database for the OCOP programme.

The province provides training to help OCOP entities acquire sales skills on e-commerce platforms and connect producers with distribution systems and consumers through e-commerce channels and social media.

Deputy Chairman of the Bu Dang district People's Committee Tran Van Phuong said that the district will continue enhancing communication efforts and raising awareness regularly through mass media to get more products to be certified as OCOP products.

In addition, the district will work to strengthen cooperation and production links between producers, cooperatives, and businesses, associated with the establishment and development of cashew processing factories to ensure a stable supply of high-quality raw materials, while also developing the intercropping of specialty crops in cashew plantations.

The district strives to develop the brand “Binh Phuoc Cashew” with a focus on specialty products with multiple values and diverse products.

As of now, Binh Phuoc has 136 products certified as OCOP products including three 5-star products, 55 4-star products, and 78 3-star products.

The province’s OCOP products include cashew nuts, black pepper, honey, turmeric powder, and dried jackfruit./.

VNA/VNN/VNS/VOV