The official underlined that these cooperation mechanisms have operated effectively, paving the way for businesses of both sides to strengthen cooperation in many areas, especially trade and investment. A large community of Vietnamese people in the region also support trade and investment between the two sides.

Vietnamese Trade Counsellor in Bulgaria Nguyen Thanh Hai said that the annual import demand of Central Eastern European countries has reached about 1.6 trillion USD, but Vietnam's export turnover to these countries in 2022 only reached 7.8 billion USD, accounting for 0.5% of the total. This showed that there is still a lot of room for Vietnamese export enterprises to exploit the market.

Meanwhile, export turnover from Vietnam to the Western Balkans is currently still below 20 million USD each year and is mainly through intermediary countries in the EU.
Vietnamese Trade Counsellor in Russia Duong Hoang Minh said that the presence of Vietnamese products like spices, sauces, fresh and dried fruits, drinks, and foods is increasing in Russia and members of the Commonwealth of Independent States (CIS), including Azerbaijan, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan and Uzbekistan.

However, he said that the Vietnam Trade Office in Russia has received negative feedback on Vietnamese products’ quality and labelling. At the same time, Vietnamese exporters also reported a number of problems with partners in these markets.

Minh said that the Vietnam Trade Office in Russia is willing to help domestic firms to verify information of their partners. He advised exporters to consider the use of rail freight for export to the CIS countries.

Linh said that amid the instability in the world economic situation, it is necessary for exporters to update the market information and policies in importing countries, while optimising marketing, payment and transport solutions.

The MoIT will work with Vietnamese Embassies in the region and Vietnam Trade Offices abroad to support domestic firms in tapping new cooperation opportunities and help them deal with difficulties during trade activities, the official said.

Vietnamese firms advised to be cautious to avoid fraud in international trade

Vietnamese firms should use additional caution to avoid increasingly sophisticated scams in international trade, Deputy Director of the Vietnam Trade Promotion Agency (Vietrade) Hoang Minh Chien said.

The Ministry of Industry and Trade cited statistics that scams in the global market cost enterprises an estimated 5% of revenue per year, with damages averaging 1.7 million USD per case.

As most are small or medium size, Vietnamese enterprises face high risk of scams and disputes, while their experiences in avoiding and dealing with such cases are limited, he said. Many are not familiar with commercial dispute resolution forms such as arbitration and mediation.

Tran Thu Quynh, Trade Counsellor of Vietnam in Canada, said that from the beginning of 2023, the Canadian market saw a rapid increase in the number of fraud cases, averaging 10 a month, mostly relating to requirements about non-existing certificates.

The global market is currently in difficulty, orders are dropping, forcing enterprises to increase search for orders. When getting an order, enterprises tended to be subjective and did not pay adequate attention to drafting contracts, Quynh said.

Fraudsters approached Vietnamese businesses by sending messages and emails for inquiries of large orders. When Vietnamese businesses asked for deposits, fraudsters require some certificates which do not exist and ask Vietnamese firms to pay a small sum for consultancy services to gain these certificates.

Vu Chien Thang, Trade Counsellor of Vietnam in Spain, said that the trade office provided support for domestic exporters in handling seven cases of fraud during the past three years, including cases related to cashew nuts, black pepper, and iron.

The psychology of wanting to sell immediately leads to unfavourable negotiations and terms in contract, he said.

Thang urged exporting firms to work with trade offices to verify their partners before signing contracts.

Careful negotiations for contract terms are important, especially deposit and payment methods, he said.

According to Duong Phuong Thao, Vietnam's Trade Counsellor in Italy, frauds are diverse in forms and firms must be very cautious. Enterprises should consider using legal consulting services throughout the entire process rather than just approaching them when a dispute occurs.

Hoang Thi Lien, Chairwoman of the Vietnam Pepper Association, said that notices and warnings of trade counsellors should be updated regularly on a unified, specific channel.

A set of reference rules on deposit levels and payment methods should be developed for enterprises to refer to when negotiating contracts.

Besides, commercial banks should provide support to domestic firms to ensure safety in international trade transactions, she said.

Chien said the ministry would continue to provide market updates and early warnings to industry associations and enterprises about emerging forms of fraud in international trade.

Bac Giang, RoK’s Chungcheongnam province sign cooperation agreement

A delegation from the Republic of Korea (RoK)’s Chungcheongnam province held talks and signed a cooperation agreement with authorities of the northern province of Bac Giang on December 5.

Chairman of the provincial People's Committee Le Anh Duong said the RoK now ranks first in terms of the number of projects and second in investment capital among 30 countries and territories investing in Bac Giang.

In particular, Bac Giang has the Vietnam-Korea Vocational College of Technology, which effectively contributes to the goal of developing a skilled workforce that meet the requirements of the local industrial sectors and Korean businesses in Vietnam.

At present, Bac Giang has 1,750 workers employed in the RoK, and nearly 1,200 Korean workers are working in the province. Cultural and economic exchanges between Bac Giang and the RoK are increasingly expanding.

The RoK is the second largest export-import market of Bac Giang, with bilateral trade turnover totalling US$13.3 billion last year, up 46.2% annually. In the first 11 months of this year, the figure reached around US$14.8 billion, or 31.2% of the province's total export-import turnover.

Bac Giang exported various goods to the RoK, including apparel, leather and footwear, computers, electronic products and components, phones and accessories, processed and fresh farm produce. It imported raw materials and accessories for apparel, leather and footwear, computers, electronic products and components, phones and accessories, machinery and equipment, processed and fresh farm produce from the RoK. The import turnover from the RoK accounted for 35.5% of the province's total.

Governor of Chungcheongnam province Kim Tae-heum expressed his hope that diplomatic ties between the two localities will be further strengthened both in depth and width.

After the talks, the two sides signed a cooperation agreement on the regular exchange of delegations to share managerial experience, cultural exchanges to raise understanding of each other's history and culture, economic cooperation in industrial and agricultural development, and collaboration in the fields of health care, education, training, high-quality human resources and labour exchange, among others.

Efforts made to enhance safety and transparency of corporate bond market

Significant efforts have been made to enhance the safety, health, and transparency of the corporate bond market, said Nguyễn Hoàng Dương from the Ministry of Finance.

He made the statement at an online seminar held on Tuesday by the Government News.

According to Dương, Deputy Director General, Banking and Financial Institutions Department, the Government issued Decree 08/2023/NĐ-CP on March 5, 2023, which amended and supplemented regulations on bond offering and trading.

Moreover, it directed the implementation of the individual corporate bond trading system starting from July 19, 2023.

These developments have led to remarkable progress in the corporate bond market, particularly in terms of issuance volume and increased investor participation. These advancements have made practical contributions to the post-pandemic recovery and socio-economic development.

He highlighted that following the financial market incidents in October 2022, both domestic and foreign financial markets, including the corporate bond market, suffered significant setbacks. Investors lost confidence, businesses faced pressure to repurchase issued bonds, and encountered difficulties in raising capital for production and business operations.

In response to this situation, the Government and the Prime Minister issued various instructions to address market-related matters. These instructions encompassed refining the legal framework, maintaining macroeconomic stability, improving the business environment, and implementing supportive fiscal policies.

Notably, Decree 08 played a crucial role by introducing mechanisms for negotiation, extension, postponement, and bond exchange to ensure shared risks and harmonious benefits among parties involved.

As a result of these policies, businesses have resumed bond issuances. While there were minimal issuances in the first quarter of 2023, the volume has steadily increased each month from the second quarter onwards. By the end of November, 77 enterprises had issued bonds with a total value of approximately VNĐ220 trillion (US$9 billion).

Businesses and bondholders have made significant efforts to negotiate payments for due bonds. Around 40 per cent of the late payment bonds of 68 businesses now have negotiation plans, and the success rate of negotiations has increased from 16 per cent in February 2023 to 63 per cent in October 2023. Furthermore, financially capable businesses have proactively repurchased bonds before maturity.

The Ministry of Finance, in coordination with other ministries and agencies, has strengthened inspection and supervision to address market violations and enhance market transparency. They have also conducted awareness campaigns and risk warnings for investors, issuing businesses, and financial intermediaries.

Economic expert Cấn Văn Lực emphasises that several recent policy measures implemented by the National Assembly and the Government have also contributed to resolving market difficulties.

"These measures include macroeconomic management policies to ensure stable growth, consistent control of inflation, exchange rates, and interest rate reductions. Additionally, comprehensive fiscal and monetary policy coordination, along with various solutions targeting real estate, bonds, tourism, healthcare, education, and land, have been employed to address challenges faced by businesses and individuals," he said.

Regarding the corporate bond market, certain policies have been established by the Government to facilitate its recovery. Firstly, Decree 08 removes obstacles and difficulties by allowing the postponement of certain regulations related to professional securities investors and offering favourable conditions for negotiations and extension of bond payments.

Secondly, the implementation of the centralised individual corporate bond system has significantly increased market liquidity. According to statistics from HNX, approximately 760 corporate bond codes from about 200 issuers have been posted on this system, resulting in a 20-30 times increase in market liquidity compared to the previous period. This development is crucial as the individual corporate bond trading floor enhances market openness and transparency.

Thirdly, additional measures have been implemented to foster a healthier corporate bond market. For instance, a licence has been granted to operate an additional credit rating organisation, which contributes to enhancing market credibility and transparency. Additionally, there have been significant efforts to address cases of corporate bond violations, resulting in more stringent enforcement.

"These policies have led to a recovery in the corporate bond market. Currently, approximately VNĐ240 trillion has been issued, with VNĐ220 trillion in private corporate bonds and VNĐ20 trillion in public bonds. This represents only a 10 per cent decrease compared to the same period last year. The number of bond issuances continues to increase each month. Despite existing barriers, it is evident that the market is experiencing positive recovery, with restored confidence. These signs bode well for the market's improved development," said Lực. 

MoIT strengthens connections to consume OCOP products

The Ministry of Industry and Trade (MoIT) held a conference in Hà Nội on Tuesday connecting OCOP products to strengthen trade promotion and consumption.

The conference attracted the presence of leaders of agencies under the MoIT, ministries, central branches, Hà Nội, and several localities, industry associations and business communities.

Many agreements on promoting the consumption of One Commune One Product items were signed at the event.

Bùi Nguyễn Anh Tuấn, deputy director of MoIT's Domestic Market Department, said that the ministry has implemented many activities according to the Government's approved development programmes of One Product One Commune (OCOP) for the period 2018-2020 and the period 2021-2025.

The ministry has built a database on OCOP products and a system of points introducing and selling products nationwide on the website http://sanphamvungmien.vn.

The ministry has promoted communication, propaganda and promotion activities and built images and brands for OCOP products and sales points of those products.

Along with that, the ministry has developed criteria for introducing and selling OCOP products as a basis for localities to build introduction and selling points.

It has also provided funding and support for 25 localities from 2019 until 2023 to introduce and sell OCOP products in those localities.

Some localities have created their own introduction points according to the criteria of the MoIT, such as Hà Nội (with more than 85 product introduction and sales points), Quảng Ninh (30), Bắc Kạn (10), Bến Tre (12), and Thanh Hóa (five).

At the same time, the ministry has also organised a series of market connection activities, and conferences on supply and demand to promote consumption of OCOP products, agricultural products, key products of localities and regional specialties.

With those solutions, the "One Commune One Product" programme has created a strong start-up movement, contributing to transforming production towards expanding the scale of commodity production associated with chain development among the localities.

The number of OCOP products is increasing with good quality and clear origins. The products have nice designs and applications of science and technology. They are gradually affirming their value and reputation in the market, so their revenue and selling price are increasing.

The OCOP programme was approved in 2018 with three goals that are to develop forms of organising production and business, change the economic structure to improve people's income and living standards; and carry out industrialisation and modernisation of the agriculture and rural areas.

After more than five years of implementation, Việt Nam now has 10,322 OCOP products in all 63 provinces and cities, including 67.3 per cent being three-star products and 31.2 per cent being four-star products.

In addition, 5,361 businesses are joining OCOP programme, of which 38.1 per cent are cooperatives, 24.2 per cent are enterprises, and 34.9 per cent being production/business households.

According to experts and businesses, with the connection of the MoIT, rural and industrial products, specialties, and potential products in the localities have been connected to the system of OCOP product introduction and sales points nationwide. The products have also entered all major distribution systems, such as Go!, MM Mega Market, Saigon Co. op, Winmart and Winmart+.

Many large distributors such as Central Retail, AEON and Saigon Co.op have coordinated with the MoIT and localities to organise events to connect and promote the consumption of OCOP products at supermarket systems, such as OCOP Week at Big C, OCOP product connection fair at AEON supermarkets, and OCOP agricultural product promotion week at Saigon Co system.

Meanwhile, many localities have been promoting the consumption of OCOP products during cultural and tourism activities, including Hà Nội, Quảng Ninh, Lạng Sơn, Thanh Hóa, Nghệ An, Quảng Bình, Ninh Thuận, Bình Thuận, Kiên Giang, Lâm Đồng, Đồng Tháp and Cà Mau. 

State Treasury raises 1.31 billion USD worth of G-bonds in November

The State Treasury mobilised a total of 31.95 trillion VND (1.31 billion USD) worth of government bonds and government-guaranteed bonds in November via 32 auctions on the Hanoi Stock Exchange (HNX), representing a month-on-month increase of 68.3%.

The State Treasury successfully issued 19.65 trillion VND worth of G-bonds, equivalent to 71% of the plan set for 2023, while the Vietnam Bank for Social Policies (VBSP) mobilised 12.3 trillion VND from bonds, equal to 87.2% of the year’s target.

Interest rates for the 5-, 10- and 15-year terms in the last session of November decreased slightly by 4, 17 and 20 basic points to reach 1.6%, 2.28% and 2.48%, respectively. That of the 30-year term was kept stable, at 3.05%.

On the secondary market, the total trading value of G-bonds traded via outright transactions during the month reached 113.14 trillion VND, while that via repos transactions was 21.17 trillion VND.

Foreign investors' total trading value accounted for 2.05% of the total market trading value.

Vietnamese exports to China see positive growth in 11 months

China is the only market among Vietnam’s major export markets to record positive growth during the 11-month period, according to the latest figures released by the Ministry of Industry and Trade. Specifically, Vietnamese exports to this market reversed from a decrease of 2.2% to an increase of 6.2% in the reviewed period.
  
Several groups of agricultural products such as rice and fruits have taken full advantage of opportunities from China's market opening and rising prices as a means of boosting exports.

This was also the only product group to record growth throughout the reviewed period, representing a rise of 4.6% against the same period from last year.

With regard to international markets, while exports to the United States, the EU, the Republic of Korea (RoK), and Japan experienced a downward trajectory, exports to African countries, Eastern Europe, Northern Europe, and West Asia all saw significant rises.

The fall in exports in several key markets such as the US, the EU and the RoK gradually shrunk compared to the first half of the year.

Most notably, the country raked in a high export turnover of over US$30 billion per month from July to November, higher than the average of US$27.45 billion per month in the past six months of the year.

Although the nation’s exports in November failed to maintain its growth momentum compared to the previous month with export turnover dropping by 3.6% to US$31.08 billion from the previous month, the overall revenue increased by 6.7% compared to the same period from last year.

Industry insiders assessed that the overall recovery momentum will remains slow moving forward to the global economic downturn, especially from the first months of the year.

Therefore, Vietnamese overall exports from January to November are projected to decline by 5.8% to US$322.5 billion against the same period from last year.

However, the decline in exports continues to narrow significantly compared to the figure of 12% recorded in the first half of the year.

During the 11-month period, the total export turnover of processed industrial goods stood at an estimated US$274 billion, down 7% over the same period from last year.

Furthermore, garments and textiles and footwear exports continued to decrease by 11.1% and 6.4% respectively, while timber and wood exports increased slightly by 1.6%.

New approach needed to better tap Chinese market: experts

Experts at a conference in Ho Chi Minh City on December 6 stressed the need for both producers and exporters to change the mindset and approach to boost exports to China, a potential market for Vietnamese farm produce.

The conference, held by Vietnam Sanitary and Phytosanitary Notification Authority and Enquiry Point (SPS Vietnam), provided guidance for businesses to meet sanitary and phytosanitary standards.

To Ngoc Son, Deputy Director of the Asia-Africa Market Department under the Ministry of Industry and Trade, said China is Vietnam's most important trade partner with bilateral trade reaching 175.5 billion USD in 2022, accounting for 24% of Vietnam's total import-export turnover.

This year, China remains an important export market for many Vietnamese agricultural products as it makes up nearly 54% of Vietnam's accumulative fruit and vegetable export value, he went on.

Meanwhile, Vietnam has been China's fourth most important trade partner and its main supplier of such products as lychee, dragon fruit and cashew nuts.

However, Son said Vietnamese exporters have yet to fully tap the market due to the habit of exporting via unofficial channels, prompting the neighbouring country to restrict it and boost exports via official channels, and set sanitary and phytosanitary standards.

Besides, Vietnamese agricultural products are under increasing competition from other countries in the region, he said.

Therefore, he said producers need to ensure product quality, and exporters should shift to official channels, stay updated on the market’s new trends and taste, and enhance regional approach to the big market, the official recommended.
 
Vietnamese agro-aquatic product exporters were also advised to pay special heed to China’s Decree 248 on regulations on the registration and administration of overseas manufacturers of imported food, and Decree 249 on administrative measures on import and export food safety, both issued in 2021.

CIEM sets out three economic scenarios for 2024

The Ministry of Planning and Investment (MPI)’s Central Institute for Economic Management (CIEM) presented three scenarios for the national economy in 2024 at the Vietnam Economic Pulse Forum jointly held by the institute and UN Development Programme (UNDP) in Hanoi on December 6.

Under the three scenarios, Vietnam’s GDP will grow 5.5%, 6%, and 6.5%, respectively, with the first most likely, said Nguyen Huu Tho, head of the CIEM’s department of economic analysis and forecasting.

The event, held under the theme "Leveraging Technology to Foster Prosperity in Viet Nam," brought together business leaders, scholars, experts, and policymakers to delve into the transformative potential of new technologies, Industry 4.0, and the digital revolution.

Economists shared the view that 2024 remains a tough year for the economy as its intrinsic difficulties this year are expected to last until next year, plus the world’s complex and unpredictable geopolitical situation.

Given this, they said monetary policy management will not be easy and require more flexibility.

Notably, the institute pointed out that traditional economic locomotives like Ho Chi Minh City and Hanoi will slow down, and there will be new ones such as Hai Phong, Quang Ninh and Thanh Hoa, yet not many and strong enough.

Therefore, to achieve high GDP growth in 2024, the CIEM research team proposed focusing on stabilising the macroeconomy and controlling inflation, with more attention paid to economic growth drivers.

The experts also stressed the need to improve institutions and the business environment, consolidate infrastructure, provide more support for production and business entities, and promote goods and services markets.

Mentioning the middle-income trap, UNDP Resident Representative in Vietnam Ramla Khalidi said: “Technological innovation, the energy transition and shifts in geopolitical strategies have created historic opportunities for Vietnam to accelerate economic transformation, penetrate new markets for higher value-added goods and services and increase the sophistication and domestic content of exports.

Vietnam’s ability to capitalize on these opportunities will have important implications for the country’s ability to sustain productivity growth at higher level incomes - in other words, to avoid the middle-income trap”.

UNDP Senior International Economist Jonathan Pincus shared valuable insights into the middle-income trap and technology policy in Southeast Asia, contributing a global perspective to the discussions.

HCM City targets GRDP growth of 7.5-8% in 2024

Ho Chi Minh City aims for a gross regional domestic product (GRDP) growth of 7.5-8% in 2024 with a recovering economic situation after a tough year, heard the 13th meeting of the municipal People’s Council on December 6.

Participants held that along with difficulties, the city also enjoys many advantages, including those from special policies that support city development, an improved investment environment, and promoted foreign direct investment attraction.

Secretary of the HCM City Party Committee Nguyen Van Nen said that next year, the city will focus on promoting digital transformation and effectively implementing special policies toward growth.

Vo Van Hoan, Vice Chairman of the municipal People’s Committee said that in 2024, the city hopes to welcome about 6 million foreign visitors and earn over 190 trillion VND (7.82 billion USD) from tourism activities.

The southern economic hub will strive to become one of the five leading localities in the provincial digital transformation index. The city plans to build an additional 8 million sq.m of houses to expand the per capita housing area to 22.06 sq.m, said Hoan.

According to Hoan, in 2023, the city’s GRDP is likely to expand by 5.81%. The city’s industrial production is to rise 4.6%, and the total retail sales of goods and services will surge 22%. Foreign arrivals in the city are projected to increase by 44.3%, and the number of new enterprises by 10%. Good progress has been seen in the construction of many national key projects in the city.

This year, the city has been honoured by the Asian-Oceanian Computing Industry Organisation (ASOCIO) with the Digital Government Award.

However, the official said that the city is likely to fail to fulfil a number of targets for 2023, including GRDP growth which is below the goal of 7.5-8% set in the beginning of the year.

Bac Giang province logs highest GRDP growth nationwide

The northern province of Bac Giang’s gross regional domestic product (GRDP) grew by 13.45% this year, topping the nation.

Accordingly, the province's growth rates of industry-construction, agro-forestry-fishery, and services hit 17.25%, 2.63%, and 6.56%, respectively.

Meanwhile, its industrial index of production (IIP) for the entire year went up by 20.2%, with the processing and manufacturing industry growing by 20.5%, and the production and distribution sector of electricity, gas, steam, and air conditioners up by 5.7%.

As of November 30, Bac Giang attracted 3.2 billion USD of investment, the highest amount ever recorded. Regarding new foreign direct investment (FDI) capital, excluding new sums added to existing projects, it ranked second nationwide after Quang Ninh province.

Notably, in September, the Korean-funded Hana Micron Vina Co. Ltd. inaugurated its semiconductor manufacturing plant, the first of its kind in the northern region, at Van Trung industrial park in Viet Yen district. The effective implementation of the project is expected to lay the foundation for developing a semiconductor manufacturing ecosystem in the province and the region. It also presents an opportunity for Bac Giang to attract more high-tech projects in the near future.

The Red River Delta province, situated about 50 km to the east of Hanoi capital, has a favourable geographical and economic location. Surrounded by major economic hubs, ports, and national highways, it is located at the crossroads of major trade routes. It lies adjacent to the Hanoi – Hai Phong – Quang Ninh key economic triangle. It is 110 km from Huu Nghi Border Gate with China, 100 km from Hai Phong seaport, and 40 km from Hanoi’s Noi Bai International Airport. The locality has favourable weather conditions and is less affected by natural disasters, with stable stratigraphy, fertile land, and beautiful natural landscapes.

Ba Ria – Vung Tau’s 11-month FDI attraction posts annual increase of 93.8%

The southern province of Ba Ria-Vung Tau attracted nearly 1.38 billion USD in foreign direct investment (FDI) in the first 11 months of this year, an increase of 93.8% compared to the same period last year.

According to the provincial People’s Committee, in 11 months, the province attracted 21 FDI projects worth nearly 867 million USD. Meanwhile, 30 projects raised their investment capital by a total of over 510 million USD.

By November 2023, Ba Ria-Vung Tau was home to 457 foreign-invested projects with a total registered investment capital of more than 31.5 billion USD.

However, the inflow of domestic investment into the province dropped in the first 11 months of this year, with 15.86 trillion VND (653 million USD) registered, equal to just 68.8% of that of the same period last year. There were only 12 new projects with a total registered capital of 1.4 trillion VND, equal to 10.2% of the same period last year.

Ample room ahead for Vietnamese shrimp exports to Middle East

With the Middle East market accounting for 1.3% of Vietnam’s total shrimp exports, there remains plenty of opportunities to boost local shrimp exports to this potential market, according to details given by the Vietnam Association of Seafood Exporters and Producers (VASEP).

Local shrimp exports to the Middle East market during the 10-month period reached more than US$39 million, representing a slight decrease of 10% compared to the same period from last year.
  
Industry insiders assessed that amid numerous challenges from main consumer markets, local businesses are advised to seek small market segments to bolster exports.

The largest importers of Vietnamese shrimp in the Middle East region include Israel, Saudi Arabia, the UAE, Qatar, Lebanon, Turkey, Iran, and Kuwait.

During the 10-month period, Vietnamese shrimp exports to a number of markets in the Middle East region recorded an increase compared to the same period from last year. Specifically, shrimp exports to Saudi Arabia and Iran recorded a 42-fold and eight-fold rise to US$7.6 million and US$1.7 million respectively, while exports Kuwait and Lebanon recorded double-digit growth.

Most notably, exports to Oman and Qatar witnessed a sharp increase of 16 times and four times respectively. 

The Middle East market is considered to be a potential market for Vietnamese products as the region depends heavily on imported food supplies.

As a means of meeting domestic demand, the Middle East must import up to 80% of food and foodstuffs, equivalent to US$40 billion per year, with demand for aquatic products growing strongly, especially in markets such as Saudi Arabia and the UAE.

Experts have advised local firms to meet high import requirements set for food products, including a Halal certification and packaging standards in a bid to make further inroads into the market.

European retailer keen to source sustainable supplies from Vietnam

Minister of Industry and Trade Nguyen Hong Dien held a meeting with a number of large French businesses, including Europe's largest retail group Carrefour on the sidelines of a forum on trade and investment between France and Southeast Asia which recently took place in Paris.

Talking with Carrefour leaders, Minister Dien highly appreciated Carrefour Group for co-operating with the Ministry of Industry and Trade to carry out a broad range of activities aimed at bringing Vietnamese goods into supermarkets in Carrefour's system around the world, as well as organising such events like Vietnamese Goods Week, Lunar New Year Week, and Vietnamese Mid-Autumn Festival in France over the past three years.
  
​The Minister emphasised that these meaningful events mark the positive start of a new tripartite co-operation between retail distributors, importing companies, and Vietnamese trade representative agencies abroad with a view to bringing a rich and diverse choice of high-quality Vietnamese products to French consumers.

At the meeting, Patrick Lasfargues, vice president of Carrefour Group, said that along with purchasing, Carrefour is working alongside a number of Vietnamese producers to export to their system in Europe and is expected to promote this export model in the near future.

Minister Dien hopes that Carrefour will move to increase support given to Vietnamese businesses in building production and business strategies to be able to develop products that are capable of meeting European standards and suit Carrefour's needs and consumer goods supply chain in France, as well as quickly adapting to changes occring in the European market and France in particular.

​The Minister also encouraged Carrefour to enhance links with Vietnamese businesses in order to produce a variety of consumer products aimed at supplying the European market.

As a means of continuing initial successes in terms of collaboration, the Ministry of Industry and Trade plans to work alongside Carrefour to organize purchasing delegations to Vietnam in the near future, especially to attend the Vietnam International Sourcing event which will be hosted by the Ministry of Industry and Trade from June 6 to June 8, 2024 in Ho Chi Minh City. The function is expected to see a wide range of trade activities held in connection with the world's leading wholesale and retail distribution systems.

As many as 500 Vietnamese businesses with 10,000 export standard products will participate in the event with the ultimate aim of connecting with trading delegations and buyers from 25 countries around the world.

With more than 65 million people, France is viewed as a potential market for Vietnamese exports. Some of the nation’s key products which are favoured by the French market include seafood, garments and textiles, footwear, household goods, and electronics.

Along with cultural and historical connections, many French people also love Vietnamese culinary culture.

Modern Vietnamese cuisine is also famous for its sophistication, which is consistent with the responsible and health-oriented consumption trends of European customers. This will open up a very potential market for Vietnamese food products at the Carrefour supermarket system.

According to experts' statistics, demand for Asian food in distribution systems in France reached US$650 million, of which Carrefour accounted for about 25% of the market share.

Currently, T&T Foods is one of the leading suppliers of Asian food in the Carrefour system, of which T&T Foods' revenue from Vietnamese goods hit roughly US$6.5 million in 2020.

State budget collection from import-export falls nearly 17% in first 11 months

The State budget collection from import-export activities topped 335.1 trillion VND (13.8 billion USD) during January – November, or 78.9% of the estimate, marking a year-on-year decrease of 16.8%, the General Department of Vietnam Customs said on December 6.

The department blamed the fall to the global economic downturn with most of the economies worldwide experiencing a slower growth than expectations, military conflicts, fierce competition between powers, and increasing geopolitical instability and food security, as well as climate change.

Besides, domestic purchase power was on slow recovery, while production faced formidable challenges due to weak global demand, it said, adding the import-export revenue in the 11-month period dropped 8.3% from the same time last year to 619.17 billion USD.

As the National Assembly set the 2023 State budget collection target at 425 trillion VND, the department carried out drastic and uniform measures to facilitate trade, improve state management efficiency, and prevent budget revenue loss.

Detailed plans were sketched out to renovate and modernise the customs sector in the year, it said, highlighting the department will continue joining hands with ministries and sectors to carry out the national one-door mechanism and the ASEAN one-door mechanism as well as facilitate trade within the bloc.

Additionally, it will sharpen focus on building a project on developing the IT system, and an action plan to implement the national one-door mechanism, while promoting logistics industry and facilitate trade during the 2022-2026 period.

MoIT strengthens connections to consume OCOP products

  The Ministry of Industry and Trade (MoIT) held a conference in Hà Nội on Tuesday connecting OCOP products to strengthen trade promotion and consumption.

The conference attracted the presence of leaders of agencies under the MoIT, ministries, central branches, Hà Nội, and several localities, industry associations and business communities.

Many agreements on promoting the consumption of One Commune One Product items were signed at the event.

Bùi Nguyễn Anh Tuấn, deputy director of MoIT's Domestic Market Department, said that the ministry has implemented many activities according to the Government's approved development programmes of One Product One Commune (OCOP) for the period 2018-2020 and the period 2021-2025.

The ministry has built a database on OCOP products and a system of points introducing and selling products nationwide on the website http://sanphamvungmien.vn.

The ministry has promoted communication, propaganda and promotion activities and built images and brands for OCOP products and sales points of those products.

Along with that, the ministry has developed criteria for introducing and selling OCOP products as a basis for localities to build introduction and selling points.

It has also provided funding and support for 25 localities from 2019 until 2023 to introduce and sell OCOP products in those localities.

Some localities have created their own introduction points according to the criteria of the MoIT, such as Hà Nội (with more than 85 product introduction and sales points), Quảng Ninh (30), Bắc Kạn (10), Bến Tre (12), and Thanh Hóa (five).

At the same time, the ministry has also organised a series of market connection activities, and conferences on supply and demand to promote consumption of OCOP products, agricultural products, key products of localities and regional specialties.

With those solutions, the "One Commune One Product" programme has created a strong start-up movement, contributing to transforming production towards expanding the scale of commodity production associated with chain development among the localities.

The number of OCOP products is increasing with good quality and clear origins. The products have nice designs and applications of science and technology. They are gradually affirming their value and reputation in the market, so their revenue and selling price are increasing.

The OCOP programme was approved in 2018 with three goals that are to develop forms of organising production and business, change the economic structure to improve people's income and living standards; and carry out industrialisation and modernisation of the agriculture and rural areas.

After more than five years of implementation, Việt Nam now has 10,322 OCOP products in all 63 provinces and cities, including 67.3 per cent being three-star products and 31.2 per cent being four-star products.

In addition, 5,361 businesses are joining OCOP programme, of which 38.1 per cent are cooperatives, 24.2 per cent are enterprises, and 34.9 per cent being production/business households.

According to experts and businesses, with the connection of the MoIT, rural and industrial products, specialties, and potential products in the localities have been connected to the system of OCOP product introduction and sales points nationwide. The products have also entered all major distribution systems, such as Go!, MM Mega Market, Saigon Co. op, Winmart and Winmart+.

Many large distributors such as Central Retail, AEON and Saigon Co.op have coordinated with the MoIT and localities to organise events to connect and promote the consumption of OCOP products at supermarket systems, such as OCOP Week at Big C, OCOP product connection fair at AEON supermarkets, and OCOP agricultural product promotion week at Saigon Co system.

Meanwhile, many localities have been promoting the consumption of OCOP products during cultural and tourism activities, including Hà Nội, Quảng Ninh, Lạng Sơn, Thanh Hóa, Nghệ An, Quảng Bình, Ninh Thuận, Bình Thuận, Kiên Giang, Lâm Đồng, Đồng Tháp and Cà Mau. 

Outbound Tet tours sell well

Demand for outbound tours for the coming Tet Lunar New Year Holiday is sharply increasing.

Tran Thi Bao Thu, Marketing and Communications Director of Vietluxtour, said her company had seen a rise in outbound tour bookings for Tet, particularly to northern Asian markets.

Tran Phuong Linh, Marketing Manager from Ben Thanh Tourist, said the seven-day Tet holiday gave people more opportunities to travel abroad. China, Taiwan, Japan and South Korea were expected to be the most popular destinations for Vietnamese, followed by tours to Europe and Thailand, Singapore, Indonesia and Cambodia.

Ben Thanh Tourist's Tet tours have seen a 5-10 percent increase compared to normal, with roughly the same sales as last Tet. Outbound tour prices range from VND4.25 million (USD173.41) to VND125 million. Meanwhile, inbound tours are being sold at VND990,000-14 million each.

Travel firms have worked with airlines and their partners to secure attractive tourist prices.

According to Thu, domestic tours need to sharpen their competitiveness by offering cheaper airfares and improving the quality of services.

HCM City is organising a tourism week to launch various discount programmes. The event is scheduled to end on December 10. 

Delay of land law puts issues into spotlight

The National Assembly last week decided to postpone the approval of the draft revised Land Law until the next session in 2024 because many provisions remain controversial and unclear.

Nguyen Van Dinh, vice chairman of the Vietnam Real Estate Association, said that many real estate projects that have stalled because of legal problems will have to wait more for new regulations.

“The market has been quiet for a few years because of many unclear regulations, and this postponement could make them more discouraged,” Dinh said.

However, Dinh also believes that it is reasonable to delay the draft because some contents cannot be completely resolved if enacted in the draft version, such as issues of land allocation, land lease, site clearance, and land compensation.

“The fact that the draft revised law has not been approved for further consideration is reasonable because while passing it is extremely urgent, it also cannot be rushed to avoid negative consequences,” Dinh said.

Nguyen Hoang, an individual broker in Thu Duc of Ho Chi Minh City, also said that the delay was reasonable because many contradictions remain. “If it is passed hastily without carefully evaluating all the details, it may have an unwanted impact on the market, so more time is needed for further considerations,” Hoang said.

He said businesses and buyers hope that the revised law will cover all existing outstanding aspects, especially the issue of land allocation.

“In terms of site clearance, many projects have cleared 95 per cent already. The rest is state-owned land, but there is no solution in the current law for this situation and it leads to deadlock for many years. All of these issues need to be legislated and regulated in detail before the project can be implemented,” he added.

On November 29, after the closing session of the National Assembly (NA), General Secretary Bui Van Cuong held a press conference to announce the results of the sixth session of the 15th NA. Cuong confirmed that both the amended Law on Land and the amended Law on Credit Institutions were not passed.

“This delay shows the caution and the responsibility of the NA caused by many different opinions remaining in the discussion process and those need more time for consideration, especially assessing the impact of policies and all related laws must not be contradicted and overlapped,” Cuong said.

He added that the NA Party Committee is reporting to competent authorities to organise an extraordinary meeting in early January to consider and approve the two revised laws.

Regarding the remaining issues in the draft revised Law on Land, it may take some time to research and evaluate the impact thoroughly, Standing member of the NA Economic Committee Pham Thi Hong Yen said that the committee gave opinions and agreed on a revision plan for 12 issues. However, there still exist several major issues that need to continue to be researched to have optimal solutions.

“Specifically was the issue of implementing commercial housing, projects supporting housing, commercial and service businesses, and the relationship between cases of land repossession and land use rights negotiation to implement socioeconomic development projects without using state budget capital,” Yen said.

Other issues were available land management and exploitation, applying land valuation methods, using land for national defence and security combined with economic development, and the case in which an economic organisation with foreign investment capital receives a real estate project transfer.

“The goal of delaying the passage of the law is to ensure quality, avoid problems during implementation, and best ensure the rights and interests of the government, investors, and individuals,” Yen said.

The current Law on Land was approved and put into operation in 2013.

Samsung Electronics receives tax refund of over U$22,596,281

In today’s talk with a reporter from SGGP Newspaper, Deputy Director of the Ho Chi Minh City Tax Department Nguyen Tien Dung said that Samsung Electronics Company has got a tax refund of more than VND 550 billion (US$22,596,281).

Specifically, in the period before May 1, 2021, South Korean conglomerate Samsung Electronics operated as a domestic enterprise, declaring and paying value-added tax at the Ho Chi Minh City Tax Department.

Following the instruction of the Ministry of Finance and the General Department of Taxation, the Ho Chi Minh City Tax Department has refunded more than VND 550.768 billion to the company. The tax refund decision was signed on November 29, 2023, and the company received the tax refund on the next day.

 
For tax refunds from May 1, 2021, onwards, the company operates and applies tax and customs policies according to the type of export processing enterprise, and it needs not to declare taxes at the Ho Chi Minh City Tax Department.

The Ho Chi Minh City Tax Department will send its official dispatch to the General Department of Taxation for instruction about the company's tax refund settlement related to the amount of value-added tax paid at the import stage in case of re-exporting unprocessed raw materials and supplies. Currently, the company is continuing to work with the Ministry of Finance, the General Department of Taxation, and the General Department of Customs to resolve this problem.

Previously, at a dialogue conference between Ho Chi Minh City leaders and Korean businesses on August 16, Mr. Youn Chel Woon, General Director of Samsung Electronics Company said that the factory in the Hi-Tech Park Ho Chi Minh City has an export proportion of up to 90 percent. From May 1, 2021, the company will convert from a normal enterprise to an export processing enterprise.

However, the company has not received a value-added tax refund of US$ 24 million before converting the business type and US$ 20 million since converting the business type. The total amount the company is waiting for a refund is up to US$ 44 million, equivalent to about VND 1,000 billion. Company leaders at that time said there had been many meetings with the city governments but no decisions had been made.

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