The strong growth in automobile sales and the increase of locally-assembled auto models are a lever to further promote Vietnam's auto industry, helping it gradually engage in supply chains of leading automobile manufacturers.

Many automobile businesses have still persisted in developing the auto supporting industry in order to be proactive in supply, and reduce production costs while still ensuring product quality, significantly contributing to the nation’s socio-economic development.

Toyota Motor Vietnam (TMV) officially put a manufacturing line of two models Veloz Cross and Avanza Premio into operation in late last year, aiming to stop the import of complete built-up units of these models from Indonesia.

Previously, between March – November 2022, as many as 3,248 units of Avanza Premio and 12,876 units of Veloz Cross were imported from Indonesia for sale in Vietnam.

As a result, 273 details of the two models are manufactured by 30 suppliers in Vietnam. The TMV said that this is a crucial milestone, strongly affirming commitments to promoting the localisation rate in the auto industry, thus contributing to the country’s development.

The localisation rate of components and spare parts of the TMV reached over 40%, doubling that of this kind of the entire auto industry.

Foxconn expands operation in Vietnam

Foxconn, Apple’s largest contractor, has decided to pour US$62.5 million into a land lease contract in bac Giang province of Vietnam to expand its operation in Vietnam, according to South China Morning Post (SCMP).

The Taiwanese giant, formally known as Hon Hai Precision Industry, has signed the deal with Saigon – Bac Giang Industrial Park Corp. to occupy a plot of 45ha to ‘meet its operational needs and expand production capacity.

The site, located in the Quang Chau Industrial Park in Bac Giang province, was rented through Foxconn’s subsidiary Fulian Precision Technology Component Co. The lease will run through February 2057, the company said.

Foxconn signed a US$300 million agreement with a Vietnamese developer last August to build a new factory in Bac Giang to produce iPads and AirPods.

The firm’s latest deal in Vietnam comes after its iPhone factory in the central Chinese city of Zhengzhou was affected by pandemic control measures.

Many of Apple products are currently manufactured in Vietnam, such as AirPods, Apple Watch and some iPad models. Apple is also planning to move some MacBook Pro production lines to Vietnam by mid-2023.

VN-Index to increase by over 20 per cent this year: VinaCapital
     
The rally in Vietnamese stocks still has a long way to go, with the consensus expecting the VN-Index to increase by over 20 per cent this year, Michael Kokalari, chief economist at investment fund VinaCapital, has said in a recent report.

The index surged by 10.3 per cent in January, driven by an easing of concerns about the credit crunch and corporate bond market, which were the main reasons for a 33 per cent fall in 2022, and by a resurgence in foreign buying.

The 10 per cent increase outpaced the 4 per cent average in Asian emerging market peers (Thailand, Indonesia, Malaysia and Philippines) though admittedly the low-base effect was in play since the decline in Viet Nam’s stock market last year was much greater.

The biggest contributor to the increase was an average 15 per cent rise in the prices of bank shares, which accounted for nearly half of the index’s gains.

It was due in part to an easing of concerns that corporations (especially property developers) will face challenges rolling over or redeeming US$13 billion worth of maturing bonds this year, which could have created significant issues for banks, which hold nearly $10 billion worth of bonds.

Over half the stocks that drove the increase in January were among the 20 that pulled the index down the most last year, and those 20 contributed a third of the market’s increase, he said.

Foreign inflows rebounded in November-January, partly because the market’s valuation had reached its lowest level in nearly ten years, with a P/E ratio of below 10x. Foreign investors bought $1.3 billion of stocks in November-January, including $179 million in January alone.

The stock that foreigners bought the most in January was steel producer Hoa Phat Group (HPG). Foreigners are hopeful that China’s reopening would also lead to a revival of construction in that country and that Viet Nam’s Government would follow through on its ambitious plans to increase infrastructure spending by 50 per cent this year (to $30 billion), Kokalari said.

Finally, a modest decline in the value of the US dollar/DXY Index helped boost Asia emerging stock markets in January, another factor that helped drive the VN-Index higher, he added.

He said stock selection will continue to be important this year because 2023 will not be a simple beta rally. Active managers like VinaCapital have an opportunity to outperform the VNI and deliver a better risk-adjusted return, he said. 

SBV to prioritise credit for production, business in HCM City

The State Bank of Viet Nam’s (SBV) HCM City branch will continue to prioritise credit for production and business, especially in priority sectors, to boost economic recovery.

Nguyen Duc Lenh, deputy director of the SBV’s HCM City branch, said the credit flow would be directed to priority sectors while credit quality would also be improved.

Priority fields include agriculture, rural areas, exports, small and medium-sized enterprises, supporting industries, high-tech enterprises, and others.

Credit institutions must also ensure stable liquidity, safe banking operations, and strictly control credit from potentially risky areas, according to Lenh.

Credit growth in the city has focused on production and business to support economic recovery, accounting for 60-70 per cent of the total outstanding loans, said Lenh.

Last December, the SBV lifted the credit growth target by 1.5-2 percentage points for 2022 from its earlier target of 14 per cent, allowing lenders to lend an additional VND240 trillion (US$9.7 billion).

Economist Le Xuan Nghia, a member of the National Financial and Monetary Policy Advisory Council, said interest rates are still too high, despite the central bank calling on banks to cut lending rates to support enterprises.

Deposit interest rates at banks have surged to as much as 12 per cent per year, pushing lending interest rates up to 15-16 per cent a year, he said.

If the inflation rate is around 4 per cent, the savings interest rates should be around 6-7 per cent per year, he added.

Experts have predicted the deposit interest rate will remain high at least until June and that deposit rates would peak in the first half of 2023 with an increase of 1-1.5 percentage points.

Recently, the Viet Nam Banks Association called on commercial banks to keep deposit interest rates at 9.5 per cent or below to reduce lending interest rates.

Commercial banks started lowering deposit interest rates early this month and cut further last week, raising hope of a drop in lending rates.

SBV Governor Nguyen Thi Hong has constantly called on banks to cut operating costs and improve administrative procedures so as to reduce lending interest rates.

Expert Can Van Luc said enterprises should look to other capital mobilisation channels instead of relying too much on bank loans. 

EVN borrows VND2.4 trillion for Ialy hydropower plant expansion

The Vietnam Electricity Group (EVN) and the Vietnam Bank of Agriculture and Rural Development (Agribank) have signed a credit agreement worth VND2.4 trillion to develop the Ialy hydropower plant expansion project.

The 14-year-term loan accounts for nearly 38% of the project’s total investment. This is the second loan the State-run utility has taken to pour into the expansion project, the local media reported.

In mid-2021, EVN and AFD signed a credit deal for a non-government-guaranteed loan worth VND1.9 trillion to expand the Ialy hydropower plant.

Agribank pledged to ensure the loan is disbursed timely in line with the agreement with EVN, said Agribank Chairman Pham Duc An.

Work on the project is on schedule despite the impact of Covid-19 and the rising prices of building materials. The expanded Ialy hydropower plant will be put into operation in late 2024, according to EVN Chairman Duong Quang Thanh.

The Ialy hydropower plant expansion project spans Sa Thay District in Kon Tum Province and Chu Pah District in Gia Lai Province. The project is set to have a capacity of 360 megawatts and cost some VND6.4 trillion.

When in place, the hydropower plant will supply electricity to the southern region, boost renewable energy development, enhance the quality of the national power grid and help reduce greenhouse gas emissions.

Deputy PM suggests Vietnam, Japan boost cooperation in spearhead industries

Deputy Prime Minister Tran Luu Quang on February 15 suggested Vietnam and Japan strengthen their investment cooperation, especially in spearhead industries, pay attention to technology transfer to Vietnam, and promote green transition.

Speaking at the Vietnam-Japan Economic Forum 2023 in Hanoi, the Deputy PM affirmed that the Vietnamese government will always accompany and create optimal conditions for Japanese firms to operate in the Southeast Asian nation for a long-term.

The two countries should expand their trade collaboration, he said, stressing the need to effectively implement bilateral and multilateral cooperation mechanisms such as the Vietnam-Japan Free Trade Agreement, the ASEAN-Japan Comprehensive Economic Partnership (AJCEP), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP) in order to raise the bilateral trade revenue in a balanced manner.

Quang also suggested the two countries elevate their strategic partnership on digital platforms, thus opening up investment and connectivity opportunities for businesses.
 
He called on the Japanese side to share its experience and knowledge in digital transformation and business administration, and build research and development (R&D) centres in the country.

The forum was jointly held by the Vietnam Chamber of Commerce and Industry (VCCI) and the Japan Chamber of Commerce and Industry (JCCI) on the occasion of the working visit to Vietnam by Chairman of the Japan-Mekong Business Cooperation Committee Yoshihisa Suzuki.

VCCI Chairman Pham Tan Cong noted that Japan is among the three biggest foreign investors in Vietnam with about 4,835 projects worth over 64 billion USD.

Vietnam expects to become a developed country with upper income by 2045, and to achieve the goal, the country needs to maintain its GDP growth constantly at 6-7% annually, which would be a great opportunity for Japanese and Vietnamese enterprises to grow together.

Discussions within the forum will focus on the bilateral cooperation in high-tech agriculture, renewable energy, green growth and startup, according to Cong.
 
Suzuki said the forum will also touch upon post-COVID-19 issues, the implementation of economic development targets and the enhancement of cooperation between businesses of the two countries.

Hoa Binh’s leadership struggle comes to an end

The struggle for the seat of board chairman of Hoa Binh Construction Group since late last year has begun showing signs of ending as one of two individuals involved has left, reported the local media.

Hoa Binh has announced a resolution of its board approving the resignation of Nguyen Cong Phu as board member, with effect from February 13.

The company also approved Phu’s authorization of Le Viet Hai to attend, discuss, vote at all meetings and obtain voting of the board via written documents or other forms, pending the 2023 general meeting resolving Phu’s resignation letter.

The leadership struggle started in December 2022 when Hoa Binh issued Resolution 50 approving the resignation of Le Viet Hai to ensure his son would be able to take up the post of CEO under the prevailing rules.

Resolution 51, issued by the firm on the same date as Resolution 50, appointed Nguyen Cong Phu as board chairman replacing Hai, effective from January 1.

However, on December 31, 2022, this company issued Resolution 53 suspending the approval of the resignation of Hai as board member and of the appointment of Nguyen Cong Phu as board chairman.

Meanwhile, other board members, including Phu, rejected the validity of Resolution 53.

In the middle of January 2023, Hoa Binh announced a decision of the HCMC Department of Civil Judgement Enforcement requesting the firm to cease implementing Resolutions 50, 51 and 53 until a final decision or judgment of the Arbitration Tribunal settles the above dispute.

Till now, Nguyen Cong Phu’s resignation from the board means that Le Viet Hai continues holding the position of chairman and legal representative of Hoa Binh.

Like other construction companies, the high prices of input construction materials and many other expenses have caused many difficulties for Hoa Binh, resulting in an accumulative loss of VND1,140 billion in 2022.

HSBC called to join green transformation, green projects in Vietnam

Deputy Prime Minister Tran Hong Ha on February 15 called on the Hongkong and Shanghai Banking Corporation Limited (HSBC) to actively join green transformation and green projects in Vietnam, when receiving Surendra Rosha, Co-Chief Executive of HSBC Asia-Pacific.

Appreciating HSBC's pioneering strategy in implementing a fair energy transition, the Deputy PM expressed his desire that the bank will become a "credit filter" and actively participate in projects of green industrial parks, zero-emission factories, reduction of greenhouse gas emissions in transportation, construction, industrial production as well as afforestation projects, or renewable energy projects.

Ha said that Vietnam always pays attention to HSBC's pioneering policies in digitalisation and green transformation, adding that the Government of Vietnam and the International Partners Group (IPG) have officially adopted the Political Declaration on the establishment of the Just Energy Transition Partnership (JETP).

The IPG will mobilise an initial funding of at least 15.5 billion USD in the next three to five years from governments to attract investment in the just energy transition sector, Ha said, adding that the HSBC can participate in the arrangement of capital structure and ensure the effectiveness of these projects.

For his part, the HSBC official said that for 2023, the bank plans activities to realise the goals set out in the roadmap to reach net-zero carbon emission, digital transformation, and green transformation.

He also said the HSBC would like to share experiences with Vietnam, particularly in greenhouse gases emission reduction as it has been supporting many enterprises in countries in that field.

BAF set to acquire pig farming firm in southern Vietnam

BAF Vietnam Agriculture JSC, whose BAF shares are listed on the Hochiminh Stock Exchange (HOSE), plans to expand its business in Tay Ninh Province by acquiring a pig farming firm there.

BAF has passed a plan to buy more shares in Tay An Khanh JSC to raise its ownership in the latter to 99.9%.

Tay An Khanh Company, located in Tan Bien District, Tay Ninh Province, is a pig farming business founded in May 2021.

As of February 2022, the charter capital of Tay An Khanh Company was VND20 billion. Its legal representative is Nguyen Cuu Long. Long is also the legal representative of several companies, including Long Hung Import-Export and Investment JSC, Long Hung-Nhu Xuan JSC, and An Tay Ninh Co., Ltd.

Regarding BAF, it had 18 subsidiaries active in the husbandry, slaughtering, and meat processing sectors as of the end of last year, including 10 in Tay Ninh Province.

HCM City’s key transport project list for 2023 proposed

HCM City Department of Transport has proposed a VND245 trillion (USD10.42 billion) list of 33 key transport projects for 2023.

The proposal has been sent to the municipal people’s committee for approval.

Among the projects, nine will use public–private partnerships, while the remainder will use ODA and the state budget.

The list includes many big projects such as HCM City-Moc Bai Expressway VND15.9 trillion), Belt Road 4 (VND19.2 trillion), Belt Road 3 (VND48 trillion) Thu Thiem 4 Bridge (VND5.3 trillion), a road linking Phu Huu and Cat Lai bridges and Belt Road (VND8 trillion) and Tan Ky-Tan Quy Bridge (VND500 billion).

Belt Road 3 and the relocation of technical infrastructure of Metro Line 2 and the project to connect bus routes and Metro Line 1 have been scheduled to be kicked off this year.

Meanwhile, 20 other projects have been approved for the investment.

According to the HCM City Transport Department, the list of key projects needs to be prioritised in order to deal with difficulties and ensure they keep on schedule.

Quang Ninh to have second bridge over Cua Luc Bay

Work on the second bridge over Cua Luc Bay in the northern province of Quang Ninh has been scheduled to be completed in September this year.

Cua Luc 3 Bridge is 2.6 kilometres long and has six lanes. It runs from FLC Urban Area in Ha Khanh Ward to Road 279 in Thong Nhat Commune in Ha Long City.

The construction of Cua Luc 3 Bridge was started in September 2020 and was slated for being finished by late April last year. However, due to some environmental concerns, the project’s design was adjusted, slowing the pace.

Once put into operation; the bridge will help to shorten travel time from Hon Gai to Hoanh Bo.

Nguyen Cong Huy, deputy director of Quang Ninh’s Civil and Industrial Work Management Board, said the difficulties facing the project had been settled. The pace of construction has been improved to ensure completion in September this year.

Under Quang Ninh’s planning for the 2021-2030 period with a vision until 2050, Cua Luc Bay will be used for tourism development. Entertainment services will be opened on the bay along with the establishment of wharves for tourist boats.

Garment and textile groups cracking on with orders

Despite woes from domestic and export markets, garment and textile businesses have been excited to start production in the new lunar year, finding out new opportunities and markets to reach the goals set forth.

At Garment 10 JSC, 12,000 employees across nine cities and provinces returned to work in the last days of January after the festive break. In 2023, Garment 10 targets revenue higher than the previous year, along with developing human resources to meet the development trend of the global textile and garment industry, continuing to diversify product lines, and applying technology solutions and digital management to enhance quality and performance.

In Hanoi’s Thanh Oai district, 250 employees of Supertex Textile JSC started the first official production shift of the new year to work for the order of exporting over one million socks to Japan.

In 2023, Supertex expects its orders to grow by about 120-130 per cent compared to 2022, equivalent to an export value of $5.5-6 million, as well as expand the market to other big partners and markets such as the US and Europe. In addition to boosting production, Supertex is looking for domestic yarn mills whose products meet the requirements of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, instead of depending on raw materials from China.

According to the General Statistics Office (GSO), total export value in January when the Tet festival took place was estimated at $25.08 billion, down 13.6 per cent on-month, and 21.3 per cent on-year. Of this, domestic enterprises gained $6.44 billion, down 18 per cent, and foreign-invested ones did $18.64 billion, a decrease of 12 per cent. “This is not very surprising because in recent days, the number of working days is less than in other months and less than in January the previous year,” highlighted the GSO report.

Particularly, the total export turnover of the garment and textile industry in January was $2.5 billion only, down 30.7 per cent on-year, while that of footwear was $1.6 billion, a decline of 17.7 per cent. In addition to the festive holiday, this was caused by the drop in demand in major exporting markets, which are forecasted to struggle with numerous uncertainties of the world’s economy in the first quarter of 2023 at least. However, the grey status does not cover all industries or all exporters in Vietnam, especially in industries in which Vietnam has got high positions and reputations in the global supply chains. In the garment and textile industry, firms believe that the demands will recover despite being on a decreasing trend.

The garment and textile industry has set the export target of $47-48 billion in 2023, after the value of $44 billion last year. The Ministry of Industry and Trade aims to support businesses to effectively exploit the signed free trade agreements, enhance competitiveness, and build brand names for sustainable export.

Sugar firms foresee sweet prospects

Sugar businesses expect a strong rebound in 2023 amid a spike in price and safeguard measures.

According to Thanh Cong Securities JSC, the price of sugar in the global market reached 21.7 cents/lb on February 1, rebooting to the peak level in 2017 after falling to a bottom 9 cents/lb in April 2020.

According to the United Nations Food and Agriculture Organization (FAO), during January-October 2022 the sugar price averaged 18.5 cents/lb.

A spike in the sugar price in the first month of 2023 signifies an upbeat prospect for sugar firms.

The leader at Lam Son Sugar JSC (LSS) noted that despite facing mounting hardships in 2022, the company made great strides and posted encouraging results.

Along with this, LSS counted $108.6 million in revenue and $34.7 million in profit, higher compared to the previous years when the company reaped $1.91 million and $956,520 in profit in 2021 and 2022, respectively.

Its production and business activities remained stable. Notably, last year LSS focused on expanding material growing areas as well as output markets for high-tech agricultural products and drinks.

This year, LSS is set to reach $130.4 million in revenue for the 2022-2023 season, increasing to $217.3 million by 2025, simultaneously investing strongly in research and development (R&D) and deep processing to create products with high added value.

The company has recently injected nearly $21.7 million into building and put into operation five new plants.

Meanwhile, Thanh Thanh Cong-Bien Hoa Sugar JSC (SBT) aims to expand its material areas in Australia during 2021-2025 period to 20,000ha.

Last August, SBT developed 1,244ha material growing areas in Australia, striving to expand to 5,000ha in the 2022-2023 season.

Mirae Asset Securities predicted that SBT’s revenue in the 2022-2023 season could reach $879.5 million, and its post-tax profit $46.8 million, up 10 per cent and 29 per cent compared to the previous season.

There are three factors attributable to SBT’s rosy growth, according to Mirae Asset’s experts.

First, the company’s profit margin is expected to swell from 12.5 per cent to 13 per cent thanks to higher price. Second, the revenue from sugar production is expected to inch up 12 per cent. Third, bright prospects in exports to China following China’s recent re-opening.

The US Department of Agriculture has forecast that China will import 4.4 million tonnes of sugar in the 2022-2023 season. This entails export opportunities to Vietnamese sugar firms, including SBT.

At Son La Sugar JSC, in the second quarter lasting from October 1 to December 31, 2022, the company counted $4.69 million in post-tax profit, up 213 per cent on-year.

The company has attributed its sharp profit growth during the period to rising sales revenue and accrued profit against dwindling financial and business management costs compared to one year ago.

In the 2021-2022 season, the company’s cumulative revenue surpassed $14.2 million and post-tax profit $2.95 million.

VNDIRECT Securities assumes that Vietnam’s sugar industry will regain its status with a growth rebound in 2023 in the face of a sugar price rally and the application of measures to combat trade remedy evasions.

Accordingly, after investigation last August, Vietnam officially imposed an anti-dumping tariff at 42.99 per cent and anti-subsidy tariff at 4.65 per cent on sugar products imported from Thailand and countries with sugar materials originating from Thailand.

The tariffs run from August 9, 2022 to June 15, 2026.

Japanese textile enterprises consider shrinking production in Vietnam

Facing labour cost increases and a low localisation rate, some Japanese textile companies are thinking about cutting production in Vietnam.

According to a survey about Japanese enterprises abroad in fiscal year 2022 published by the Japan External Trade Organization (JETRO) on February 13, Vietnam continues to be the leading destination in Southeast Asia for them to expand their production.

About 60 per cent of the surveyed businesses said that they plan to expand their investment here over the next 1-2 years, which is above the average rate of 46.9 per cent for the ASEAN region.

However, up to 8.3 per cent of Japanese textile companies plan to reduce production in Vietnam, the highest rate among the surveyed sectors. Nakajima Takeo, chief representative of JETRO's Hanoi Office, explained that processing costs for Vietnam's textile and garment industry have increased.

According to the survey, the salary growth rate in 2022 reached 5.8 per cent, a slight increase compared to the 5.4 per cent seen in 2021. This is one of the highest among ASEAN countries.

Nakajima said that at this time, the workforce can be divided into two groups in terms of wages. The first group of nations have a good average salary, for example, Thailand, Malaysia, Philippines, and Vietnam. The other group, including Laos, Myanmar, and Cambodia, receive lower average incomes.

For Japanese firms, the advantage of cheap labour costs is no longer the most attractive factor in Vietnam. Instead, the main benefit is the size and the growth of the local market.

The localisation rate is also an important factor to reduce production costs. While this has improved in Vietnam, it is not still high.

The survey's respondents said that the proportion of raw materials that can be on-spot purchased accounted for only 23 per cent, meanwhile, the figure for Japan is 46.2 per cent and China accounts for 27 per cent. The remainder is sourced in other countries.

Vietnam’s infrastructure luring Chinese investment

With wider activities taking place involving the markets of China, Taiwan, and Hong Kong, their investors are looking at potential infrastructure opportunities throughout Vietnam.

China Pacific Construction will soon establish a representative office in Vietnam to explore investment potential in the transport infrastructure sector, said Jiehe Yan, president of China Pacific Construction Group, last month.

Dr. Jonathan Choi, chairman of the Chinese General Chamber of Commerce, was in Vietnam one month ago to encourage capital investments in the infrastructure and regional economy, commerce, services, and industrial sectors. He said that Vietnam is an “interesting centre of attraction” for Chinese investors.

Hong Kong is also an essential gateway for Chinese corporations to invest in Vietnam. According to the Ministry of Planning and Investment, as of January 20, Hong Kong was the fifth-biggest economic partner of Vietnam, following South Korea, Singapore, Japan, and Taiwan, with nearly 2,180 investment projects totalling $29.6 billion in investment capital.

When Vietnam recognises infrastructure development, including transport infrastructure, as one of three strategic breakthroughs, it will provide new long-term driving factors for foreign investment. The Vietnamese government is now undertaking its plan to construct an additional 3,000km of motorways by 2025 and 5,000km by 2030. According to the Ministry of Transport, Vietnam has barely constructed more than 1,000km of roadways during the previous two decades.

Chinese investors who went directly to Vietnam to encourage investment employed a strategy that was prevalent several years before the emergence of the pandemic. A number of experts believe this strategy will have a long-term influence on Vietnam’s infrastructure.

Chinese investment in Vietnam increased at a compound annual rate of 17 per cent between 2015 and 2022. Despite strict lockdowns, investment flow continues as several important projects from China, Taiwan, and Hong Kong have extended or boosted cash to improve output in Vietnam.

As of January 20, the number of foreign-invested projects in Vietnam continued to rise, and China retained its position as the sixth-largest investor in Vietnam, registered at $23.6 billion.

Despite difficulties, Chinese groups still have the potential to invest in Vietnam’s transport infrastructure. Vietnam is mobilising funding sources for road network investment of about $17.06 billion to 2025 and $14 billion during 2026-2030, including cash for transitional projects over the next few years.

Bình Dương to speed up construction of National Highway 13

Secretary of the Bình Dương Party Committee, Nguyễn Văn Lợi, has directed departments and relevant units to speed up the construction and upgrade progress of National Highway 13 to improve the connectivity of the province and HCM City.

National Highway 13 not only plays the role of the "backbone" traffic axis of the province's transport system, but is also an arterial route connecting the HCM City to Bình Phước and the Central Highlands provinces.

The 62km-long project going through Bình Dương, invested in the form of BOT, has been put into use for many years and has brought positive results by effectively contributing to the socio-economic, industrial and urban development of Bình Dương, meeting the travel needs of the people in the province and in the provinces and cities in the Southern key economic region.

The widening of National Highway 13 from six lanes to eight lanes is expected to cost around VNĐ9 trillion (US$388 million).

Currently, some sections of National Highway 13 have been upgraded and expanded, and the drainage system has been installed.

In recent years, Bình Dương has spent large amounts to improve road infrastructure to enhance transport connectivity with HCM City and nearby provinces, developing concentrated industrial zones and attracting workers from provinces and cities around the country.

The province also plans to expand and upgrade Mỹ Phước - Tân Vạn expressway and provincial highways No. 743, 747B and 746, which will improve transport to Đồng Nai Province and HCM City.

The upgrade of Mỹ Phước - Tân Vạn expressway is one of the key projects because it connects urban areas and industrial parks, and opens up a freight corridor along the North - South backbone axis parallel to National Highway 13.

This will create favourable conditions for access to Cái Mép - Thị Vải port in Bà Rịa-Vũng Tàu Province and the Long Thành international airport in the future, according to the construction department.

The widening of major roads such as National Highway 13 and Mỹ Phước - Tân Vạn between concentrated industrial zones has eased travel to ports.

The province is always looking to develop transport infrastructure to help ship goods to other provinces and abroad.

It plans to further improve transport connectivity by developing waterways and, in the future, create a rail link to transport goods to ports in HCM City and Đồng Nai Province.

Fertiliser prices likely to remain at high level in coming months
     
Fertiliser prices in the coming months are forecasted to remain at a high level due to the global market's continuing gas and petrol price fluctuations.

According to Phung Ha, general secretary and vice chairman of the Vietnam Fertiliser Association, many experts in the fertiliser and finance world forecast that fertiliser prices are falling, but the possibility of them remaining at a high level remains.

Gas and petrol prices greatly affect the production cost of fertiliser because gas prices account for about 80-90 per cent of the production cost of ammonia - an important input for urea and DAP fertilisers. Therefore, fertiliser prices in the coming months will still fluctuate unpredictably.

According to a survey of some fertiliser companies and trading agents, the current fertiliser price is at VND10.5 million per tonne of Phu My urea fertiliser and VND19 million per tonne for potassium sulphate fertiliser, while DAP fertiliser price ranges from VND17 to VND25.5 million per tonne depending on the type.

Ha said that the fertiliser prices in 2021-2022 increased rapidly by VND1-1.9 million per tonne. However, China has started to open up the market and has not been limited to exporting 29 types of fertiliser, so the supply of fertiliser in the world market has been abundant, and fertiliser prices have also started to cool down.

For fertiliser supply for the winter-spring crop 2022-2023, at present, the production capacity of urea at four factories under the Vietnam Oil and Gas Group (PVN) and the Vietnam Chemical Group (Vinachem) has reached 2.5 million tonnes per year, while the domestic demand is only 1.6-1.8 million tonnes each year.

The domestic supply of phosphate-containing fertiliser and NPK fertiliser is higher than the local demand. However, Viet Nam still has to import about 40 per cent of DAP fertiliser and all potassium fertiliser volume to meet the domestic demand.

Vu Xuan Hong, deputy general director of Lam Thao Fertiliser and Chemical Joint Stock Company, said that to ensure the supply and reasonable price of fertiliser for farmers, the company prepared before the Tet holiday a large volume of raw materials for production within at least three months, such as SA, sulfur, potassium.

Lam Thao expects to meet the supply for the agricultural production of the winter-spring crop 2022-2023 with over 30,000 tonnes of fertilisers of all kinds in store and a production output of nearly 2,000 tonnes of fertiliser per day, Hong said.

According to Hong, to keep stability in fertiliser prices for farmers, Lam Thao has found input materials with good prices, such as SA imported from the Middle East and Africa and urea imported from domestic factories.

With these efforts, the market prices of Lam Thao's fertiliser products are kept stable compared to the fourth quarter of 2022.

Besides that, Lam Thao has had efforts to reduce the cost of transporting fertiliser in the context of higher gasoline prices and handling costs.

Accordingly, the company has diversified forms of transporting fertiliser, including using cheaper transport means such as railway, waterway, and river instead of road transport as before, Hong said.

According to Hoang Van Hong, deputy director of the National Centre for Agricultural Promotion, the centre works closely with localities to guide farmers in using fertilisers reasonably, economically and effectively. It also encourages farmers to increase the use of organic fertilisers.

Mekong Delta farmers need support to sell king orange

Functional agencies in the Mekong Delta provinces of Vinh Long and Hau Giang are helping farmers find buyers for their king oranges as they are suffering exceptionally low prices because supply exceeds the market demands.

The head of the Division of Agriculture and Rural Development of Tra On District in Vinh Long Province informed that one serious challenge is a lack of experience among first-time orange farmers. Before the Tet holiday, the price of king oranges was at VND8,000-10,000 per kilo (US$0.34-0.42), but they refuse to sell their crops in hope for higher prices. However, after the wait, the oranges become overly ripe now, and thus enduring a price drop to only VND2,500-3,000 a kilo ($0.1).

Deputy Director of Vinh Long Province Department of Agriculture and Rural Development Nguyen Van Liem reported that the surface area of orange orchards in his province reaches 17,000ha in 2022, a rise of nearly 3,000ha as opposed to 2 years before. Compared to the planning this is a 30-percent surplus, not to mention the cases of farmers in unsuitable lands still persisting to grow this fruit, and hence the state of supply exceeds the market demands now.

At present, around 50,000 tonnes of king oranges in the province are in need of consumption. The local authorities are cooperating with Vinh Long Province Farmers Association and related agencies to seek possible outputs for the unsold fruit and the upcoming harvested one.

Meanwhile, king oranges are also sold on the formal e-commerce websites of the Agriculture and Rural Development Departments of other provinces.

In Phung Hiep District of Hau Giang Province, the price of king orange is facing the same drop to only VND3,000 a kilo, yet wholesale buyers are nowhere to be seen. The Head of the Division of Agriculture and Rural Development of Phung Hiep District reported that the surface area of orange orchards in the district is nearly 2,900 ha now. Experienced farmers actively spread the planting of the crop in order to avoid harvesting all fruits at the same time, which easily leads to price drops.

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