There is great potential for Vietnam to increase its agricultural, forestry, and aquatic exports to the US, particularly when the quality and competitiveness of its products are improved.

In 2023, the US was the second largest market for Vietnam’s agro-forestry-fishery products, accounting for 20.7% of its total export turnover.

According to the Foreign Trade Agency under the Ministry of Industry and Trade, statistics from the US International Trade Commission showed that in the first 10 months of 2023, the US imported 1.43 million tonnes of rubber. However, Vietnam exported just 20,370 tonnes worth 28.99 million USD to the US, ranking 13th among rubber suppliers to this market, and making up only 1.42% of the US's total rubber imports.

In the US market, Vietnamese rubber has to compete with that from many markets including Indonesia and Thailand whose market share in the US reached 25.13% and 14.28% respectively.

Meanwhile, in 2023, up to 88.7% of total cashew nuts imported into the US were from Vietnam.

Among fisheries exporters to the US in the 10 months of last year, Vietnam was the one with the strongest increase in volume and the second highest rise in value.

Notably, the US's imports of shrimp, tra fish, and tuna from Vietnam saw positive growth. According to the Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnam is currently the 6th largest aquatic product supplier to the US, after Canada, Chile, India, Indonesia, and Ecuador.

Regarding the consumption trend of tra fish in 2024, the US will not only focus on frozen fillet fish – a key product of Vietnam but also gradually increase consumption of processed tra fish and high value-added products such as swim bladder and tra fish paste. This requires the Vietnamese seafood industry to diversify its products and focus on deep processing to increase competitiveness in this major market.

Regarding other products, Trade Counsellor of Vietnam in the US Do Ngoc Hung said that in 2022, the total export turnover of cinnamon from Vietnam to the US reached about 50 million USD, accounting for 35% of the US's total cinnamon impor turnover. Vietnam’s cardamom shipments to the US fetched about 5 million USD, making up 13%.

Cinnamon and cardamom are not only popular spices but are also widely used in the food, pharmaceutical, and cosmetic industries. They have also been added to beverages such as tea, coffee, and other nutritional supplements.

Hung said that US consumers are increasingly interested in immune-boosting products, especially after the COVID-19 pandemic, so the demand for cinnamon and cardamom essential oils continues to rise.

These are significant values in sustainable development and have the potential to promote Vietnamese cinnamon and cardamom exports in the US market, Hung stressed.

He suggested localities have plans to ensure high-quality raw material areas with the application of organic farming standards to enhance Vietnamese products’ competitiveness against similar products from other countries like Indonesia, Sri Lanka, and India.

Processing businesses should promote the application of scientific and technological advances and actively participate in international trade fairs to widely promote Vietnamese cinnamon and cardamom products in the market, he said.

Vietnam should stay proactive to cope with inflationary pressures

Although the average consumer price index (CPI) in 2023 increased by only 3.25% year-on-year and the January figure went up 0.31% over the previous month, meaning that inflation is under control, it is necessary for Vietnam to be vigilant against inflation, according to the Investment Review.

The world economic environment also requires the country to be ready and take proactive measures to deal with inflation.

In fact, inflation remains at a low level and even though the Lunar New Year (Tet) festival is approaching, increasing consumer demand could impact the CPI in February, but at a reasonable level. 

Goods are sufficient to meet the demand during Tet. The Government, market management agencies, and localities have also prepared measures to ensure price stability during Tet.

However, according to forecasts, inflation will be unpredictable this year due to various elements such as hiking prices of electricity, medical or educational services, as well as the increase in basic salaries from July.

At its latest meeting, the Price Management Department under the Ministry of Finance proposed three scenarios for inflation with average CPI increases of 3.52%, 4.03% and 4.5%. In all the scenarios, inflation remains within the target set by the National Assembly.

Recent forecasts from international institutions such as the Asian Development Bank, World Bank and HSBC regarding Vietnam's 2024 inflation are quite positive.

However, inflationary pressures remain, particularly when it is difficult to predict market and global economic developments. Therefore, it is important to adopt a proactive and flexible approach, ensuring good control of inflation in line with the objectives set by the National Assembly, including closely monitoring the situation to quickly take appropriate management measures.

Canada likely to become gateway for Vietnamese businesses going global

Canada boasts great potential for becoming the gateway for Vietnamese businesses to expand their scale of operations as local firms seek to reach out to other markets around the world, according to insiders.

At present, Vietnam is Canada's largest trading partner in ASEAN and their seventh largest import partner after the United States, China, the Republic of Korea, Japan, the Netherlands, and Hong Kong (China). 

Statistics compiled by Vietnam Customs and the Vietnam Trade Office in Canada indicate that Vietnamese exports to Canada dropped by 11.3% to over US$5.6 billion compared to the same period last year. 

This decline in exports to the North American nation can be seen in the general downward trend occurring in the context of its economic recession.

It has also moved to reduce imports from most major exporting countries in ASEAN such as Indonesia, down 7.7%; Malaysia, down 18.8%; and Thailand, down 10.9%. 

Currently, Vietnam continues to be Canada's most important import partner among ASEAN members, accounting for 45% of its total imports from the region.

Among Canada's top 10 trading partners, the country has surpassed Italy to become Canada's seventh largest import partner.

Two leading product groups which account for the largest proportion of Vietnamese export turnover to Canada includes electronics and mobile phones, up 9.8%, and boiler reactors, up 57.3%. 

Meanwhile, Canada exported goods worth US$620 million to the Vietnamese market last year, down 12.7% on-year.

However, Canadian machinery, equipment, and electronic component imports into the country still maintain a positive growth rate. 

In particular, after Vietnam moved to lift restrictions related to field thistle in grain imported from Canada last year, Canadian grain exports to Vietnam increased by 1039% to US$73 million. 

Despite differences recorded in data between the two countries’ agencies, the country ran a large trade surplus up to US$8.5 billion with Canada.

Challenges faced by Vietnamese exports to Canada in 2024

With regard to the export prospects to the Canadian market this year, Tran Thu Quynh, Vietnamese trade counselor in Canada, pointed out that the nation’s exports to the region will face plenty of challenges over the next few years due to gloomy global economic growth, high interest rates, and inflation and tightened consumption policies.

In addition, the tariff incentives under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will not bring about practical benefits to Vietnamese exports as Canada has accelerated the signing of free trade agreements (FTAs) with South American partners and those in the Indo-Pacific region such as Malaysia, India, Indonesia, all of which share similar product structures to Vietnam.

Furthermore, Canada has recently called on businesses to look towards the South American economic bloc and towards allied countries as a means of building sustainable and reliable supply chains. This trend is starting to negatively impact the export of several advantageous Vietnamese products such as fruits, seafood, and textiles.

Along with losing tariff advantages, high domestic logistics costs occurring in Canada make the nation’s export prices less competitive compared to neighboring South American countries. 

However, Quynh stressed that the country remains still Canada's largest trading partner in ASEAN and Canada's seventh largest import partner

The Canadian side is the nation’s second largest export partner in the Americas as they continue to view the country as an important trading partner in its strategy of diversifying trade and supply sources to enhance the sustainability of the supply chain. 

Canada boasts strengths in high-tech machinery, energy technology, telecommunications technology, biomedicine, and input products for Vietnamese industries such as minerals, plastics, wood, oil and gas, grains and seeds.

On the contrary, the Vietnamese side can provide household products, furniture, textiles, and furniture to the Canadian market thanks to preferential tariff set out in the CPTPP.

Economic, trade, industrial, and energy ties between the two countries will be strengthened through  specific projects in 2024 and over the coming years, Quynh said. 

In contrast, with advantage of a network of FTAs and market advantages, a disciplined and high-quality workforce, as well as trans-Asian transportation infrastructure, Vietnam can completely become a gateway to the wider world. 

Currently, Vietnam's domestic industrial exports to Canada is mainly in the textile and garment industry, as well as toys and wooden furniture, making up  40% of turnover. This group of products is anticipated not to see high growth in 2024 or over the coming years.

The Vietnam Trade Office in Canada forecasts that over the coming years, several product categories are predicted to enjoy robust growth, including footwear, leather products, and headgear products. 

The Trade Office revealed that it will prioritize supporting Vietnamese micro and small processed food enterprises in engaging in exhibitions and fairs to be held in Canada in the time ahead.

Việt Nam trade offices will take new opportunities to achieve sustainable export

Việt Nam trade offices abroad need to provide information about market trends in countries and export opportunities to Việt Nam's localities, associations and businesses, so they can review production and business plans, and create appropriate trade promotion plans.

Deputy Minister of Industry and Trade Nguyễn Sinh Nhật Tân made that statement at the monthly trade promotion conference in January for Việt Nam trade offices abroad held by the Ministry of Industry and Trade in Hà Nội on Wednesday.

The conference attracted participation from Việt Nam trade offices abroad, relevant agencies and businesses from 63 provinces and cities across the country.

Speaking at the conference, Tân emphasised that the monthly conference has recorded positive feedback to contribute to overcoming difficulties in market development.

The recovery in import-export activities has been not strong, but the declining rate in exports has narrowed. Efforts to make use of opportunities from international economic integration, diversification of import-export markets, and advantages from free trade agreements (FTAs) in the past years are a base for foreign trade development in 2024.

According to the Trade Promotion Agency, Ministry of Industry and Trade, the import and export activities in 2024 still face many risks that are difficult to predict. The trend of trade protection increases, so many countries have measures to attract investment back home, and set trade barriers to promote domestic production.

Besides prices, product quality and delivery time, greening and sustainable development are requirements for suppliers to major markets such as the US, EU and Japan.

Therefore, Vietnamese export businesses must proactively grasp market information, and trade promotion is one of the most effective ways to support businesses in penetrating the market.

Vũ Bá Phú, director of the Trade Promotion Agency, said this year, the agency will have many international trade exhibitions for Việt Nam's key export industries as well as exhibitions on supply chains of industrial products that are held for the first time in 2024.

Phú requested the Việt Nam trade offices abroad to support for the agency, as well as organisations and businesses at home, in implementing trade promotion activities in foreign countries, and introduce reputable trade promotion events abroad to the agency, localities, associations and enterprises.

Phú also said that in 2024, the ministry will focus on three major directions in trade promotion activities, including continuing to innovate and diversify trade promotion activities.

It will expand export markets, focusing on effectively exploiting free trade agreements, and carry out digital transformation associated with green transformation in trade promotion to promote sustainable development in foreign trade activities.

In addition, the Trade Promotion Agency will carry out large-scale trade promotion activities at national and at the international level, especially in major export products sectors

It continues to take resources and support from international organisations and partners to implement technical assistance programmes for improving trade promotion capacity for the business community.

Sharing at the conference, a representative of the Department of Industry and Trade of Bình Phước Province said that the province's businesses still have difficulty accessing accurate information from foreign purchasing partners. Therefore, it is very necessary for Việt Nam trade offices abroad to provide that information for them.

Meanwhile, according to Trần Ngọc Quân, Việt Nam's Trade Counsellor in Belgium and the EU, the new EU regulations from the Carbon Border Adjustment Mechanism (CBAM) will be applied from June 2024, so export enterprises of steel, cement and fertiliser need to study the EU regulations to calculate the amount of CO2 emitted during the production process.

Similarly, the EU Deforestation Regulation (EUDR) will also take effect in 2024, so businesses exporting coffee, wood products and rubber need to carry out non-deforestation certification procedures according to the regulations.

This year, the EU also expects to introduce Ecodesign regulations in the textile industry to limit waste in the textile and food industries. These regulations require manufacturers and exporters to transform production to meet requirements.

Furthermore, the EU is also strengthening food safety management and trade supervision, especially tax evasion cases.

To help businesses penetrate deeply into the EU market, Quân recommended businesses carefully take advantage of the Việt Nam - EU Free Trade Agreement (EVFTA), now in its 4th year of implementation, as it continues to be one of the key drivers for Việt Nam's exports to the EU.

Businesses need to pay close attention to product quality, especially agricultural and aquatic products. 

Thai Binh emerges as magnet for domestic, foreign investors

Last year, the northern province of Thai Binh became one of the five biggest recipients of foreign direct investment (FDI) for the first time, an achievement attributed to its flexible and creative moves and strongly reformed measures to support investors.

In 2023, Thai Binh attracted more than 2.9 billion USD in FDI, an unprecedented figure rising almost 4.4-fold from the previous year. With this result, it joined Ho Chi Minh City, Hai Phong city, Quang Ninh province, and Bac Giang province in the top five FDI destinations.

Notably, its investment attraction has gradually shifted from “quantity” to “quality”, Quan doi Nhan dan (People’s Army) daily reported, noting that all the new projects and the existing ones added with more capital recently are operating in the fields Thai Binh is inviting investment to such as high technology, processing, electronics, mechanics, and supporting industries.

In particular, the province last year recorded a liquefied natural gas (LNG)-fired power plant project worth 1.99 billion USD invested by Tokyo Gas Co. Ltd and North Kyuden power company of Japan and Truong Thanh Group of Vietnam. The project is expected to help boost local socio-economic development, scale up the province’s economy, and contribute to national energy security.

Pham Duc Thanh, Deputy Director of the provincial Department of Planning and Investment, attributed Thai Binh’s investment attractiveness in recent years to its readiness to listen to and deal with difficulties and proposals of businesses.

Coming here, businesses are always given optimal conditions to conduct surveys and implement projects, he continued, noting that the provincial People’s Committee has engaged in direct dialogues with companies via the weekly Entrepreneurs Café programme to solve problems facing them in a timely manner.

Thai Binh also boasts a favourable geographical location and a modern transport system that is being gradually perfected to connect it with other localities in the Red River Delta and the economic growth triangle of Hanoi - Hai Phong - Quang Ninh.

Local authorities have also been gearing up necessary conditions, especially in terms of infrastructure, land, and human resources, to attract domestic and foreign investors.

Ten industrial parks covering nearly 3,000ha with readied infrastructure have taken shape across the province. Notably, the Thai Binh Economic Zone with a total area of 30,583ha is housing 22 industrial parks whose industrial land covers 8,020ha. It also boasts a favourable geographical location that is just about 35km from Cat Bi Airport and 50km from Lach Huyen International Seaport in Hai Phong.

Chairman of the provincial People’s Committee Nguyen Khac Than said building transport facilities, preparing industrial parks with completed infrastructure, and devising preferential policies are among the province's efforts to selectively attract FDI. Besides, Thai Binh doesn’t wait for investors to come but has actively organised promotion activities to invite major domestic and foreign firms, he added.

To create its competitive edge in the race to attract high-quality foreign investment, the province identified improving the business climate and its position in the Provincial Competitiveness Index rankings as a focal and consistent task. It is also helping companies learn about legal regulations of Vietnam, international agreements, and the province’s policies on investment attraction and socio-economic development. Investors of industrial park infrastructure are also being urged to quickly complete building facilities to welcome secondary investors, he added.

Retail sales of goods, services up 8.1% in January

Total retail sales of goods and revenue from consumer services in January were estimated at 524.1 trillion VND (21.47 billion USD), up 8.1% year-on-year, as consumers have been on the mood to shop for the upcoming Tet (Lunar New Year) Festival, according to the General Statistics Office (GSO).

Without taking inflation into account, the retail sales rose 5.8%, the GSO reported.

Consumers splurged on cultural and educational items, household appliances, catering services and travel the most in the runup to Tet holiday.

Retail sales of goods totalled 407.5 trillion VND, increasing 7.3% from the same time last year. Meanwhile, revenue from accommodation and catering services rose by 10.2% to 58.9 trillion VND.

Thanks to the sound tourism promotion policy that helps popularise Vietnam as a safe destination, the country welcomed more than 1.5 million foreign tourists in January, going up 10.3% from the previous month, and 73.6% year-on-year. Tourism earnings went up 18.5% year-on-year to 4.4 trillion VND.

Revenue from other services was estimated at 53.2 trillion VND, up 11.2% year-on-year.

Economists said the Tet shopping season is the golden time for enterprises and retailers to promote domestic consumption stimulus and increase sales right from the outset of the year.

They also advised enterprises to outline rational market and business strategies, making them fit the new consumption trend in the domestic and foreign markets.

Petrol prices increase in latest adjustment

The ceiling retail petrol prices were revised up from 3pm on February 1 by the Ministry of Industry and Trade, and the Ministry of Finance.

The ceiling price of RON95-III went up 753 VND to 24,160 VND (0.98 USD) per litre, while that of E5RON92 was raised 742 VND to 22,913 VND per litre.

The prices of diesel oil 0.05S and kerosene were capped at 20,999 VND and 20,923 VND per litre, up 623 VND and 379 VND, respectively.

Meanwhile mazut oil 180CST 3.5S is now sold at no more than 16,087 VND per kilogramme, an increase of 593 VND.

Since the beginning of this year, petrol prices have undergone five adjustments, with four up and one down.

Disbursement of public funds in 2023 meets 93.12% of target

More than 662.59 trillion VND (27.14 billion USD) of public capital allocated for 2023 was disbursed as of January 31, fulfilling 93.12% of the Prime Minister’s assigned plan, according to the Ministry of Finance.

The ministry said on February 1 that some 88.28 trillion VND was disbursed for the socio-economic recovery and development programme, or 66.4% of the plan.

Sectors, ministries and associations completed 100% of the disbursement targets included the State Bank of Vietnam, the Joint Stock Commercial Bank for Investment and Development of Vietnam, the Vietnam Television, Vietnam National Tobacco Corporation, the Vietnam Journalists Association and Ha Nam province.

High rate of disbursement was recorded in Dong Thap province (99.8%), Quang Ngai (99.79%), Long An (99.19%), Ba Ria – Vung Tau (98.08%), and Vinh Phuc (96.88%).

In January, over 16.9 trillion VND in public capital was disbursed, accounting for 2.58% of the Government’s plan.

With a view to speeding up public investment disbursement, the Ministry of Finance proposed ministries, sectors and localities quickly make capital allocation plans for their projects, and work to remove bottlenecks in a timely fashion, striving to disburse at least 95% of the public investment budgets.

Hanoi attracts almost 870 million USD in FDI in January 2024

An estimated 866.8 million USD in foreign direct investment (FDI) was channelled into Hanoi in January, the municipal Statistics Office reported.

That comprises 859.4 million USD registered for 10 new projects, 5.1 million USD added to six existing ones, and 2.3 million USD spent on seven transactions to contribute capital to or buy shares of local businesses.

During the month, 2,529 new companies with combined capital of 35.4 trillion VND (1.4 billion USD) were established in Hanoi, respectively rising 54% and 2.4-fold year on year. As many as 3,660 firms resumed operations, up 50%.

While 12,300 businesses registered suspension of operations, 457 others were dissolved, increasing 56% and 52%, respectively, data shows.

The office said consumption demand has continued growing compared to the final months of 2023 as the Lunar New Year (Tet) festival is nearing. Retail sales of goods and consumer service revenue totalled 68.8 trillion VND in January, up 3.2% month on month and 9.3% year on year.

Nguyen Manh Quyen, Vice Chairman of the Hanoi People’s Committee, said that this year, the city will push forward with administrative reforms to create favourable procedures to attract domestic and foreign investors.

It will organise more trade promotion events both in Vietnam and abroad to seek potential investors. More high-quality agricultural products and items under the “One Commune, One Product” (OCOP) programmes, and those of craft villages will also be developed to serve domestic consumers and tourists, he added.

Increasing number of foreign arrivals in January creates impetus to fulfil yearly target

The number of foreign arrivals to Vietnam in the first month of 2024 reached over 1.5 million, the highest ever recorded for a month since the country fully reopened all tourism activities in March 2022, according to Vietnam National Authority of Tourism (VNAT).

The figure represented an increase of 10.3% compared to previous month and a 73.6% hike compared to the same period last year.

This is a positive signal for Vietnam's tourism industry, creating motivation for the sector to achieve the goals of receiving 17-18 million international visitors, serving 110 million domestic tourists and earning about 840 trillion VND (34.3 billion USD) in tourism revenue in 2024.

The Republic of Korea (RoK) remained the largest source market for Vietnam tourism in January with 417,576 visitors, accounting for 27.6% of the total. It was followed by China and Taiwan (China). Meanwhile, UK, France, Germany and Russia sent the largest numbers of European tourists to Vietnam.

According to the VNAT, January witnessed remarkable growth in European markets that enjoy unilateral visa exemption. It reflected the positive impact of a policy on extending the temporary stay period for citizens from countries unilaterally exempted from visa from 15 to 45 days.

Vietnam had 25 destinations and establishments named in different categories of the ASEAN Tourism Awards at a ceremony held as part of the ASEAN Tourism Forum (ATF) 2024 in Laos on January 26.

They were honoured for six categories, namely ASEAN Green Hotel, ASEAN Clean Tourist City, ASEAN MICE Venue Award for Meeting Room, ASEAN MICE Venue Award for Exhibition Venue, ASEAN MICE Venue Award for Event Venue, and ASEAN Sustainable Tourism Award for Gastronomy Tourism theme.

Vietnam should stay proactive to cope with inflationary pressures

Although the average consumer price index (CPI) in 2023 increased by only 3.25% year-on-year and the January figure went up 0.31% over the previous month, meaning that inflation is under control, it is necessary for Vietnam to be vigilant against inflation, according to the Investment Review.

The world economic environment also requires the country to be ready and take proactive measures to deal with inflation.

In fact, inflation remains at a low level and even though the Lunar New Year (Tet) festival is approaching, increasing consumer demand could impact the CPI in February, but at a reasonable level. 

Goods are sufficient to meet the demand during Tet. The Government, market management agencies, and localities have also prepared measures to ensure price stability during Tet.

However, according to forecasts, inflation will be unpredictable this year due to various elements such as hiking prices of electricity, medical or educational services, as well as the increase in basic salaries from July.

At its latest meeting, the Price Management Department under the Ministry of Finance proposed three scenarios for inflation with average CPI increases of 3.52%, 4.03% and 4.5%. In all the scenarios, inflation remains within the target set by the National Assembly.

Recent forecasts from international institutions such as the Asian Development Bank, World Bank and HSBC regarding Vietnam's 2024 inflation are quite positive.

However, inflationary pressures remain, particularly when it is difficult to predict market and global economic developments. Therefore, it is important to adopt a proactive and flexible approach, ensuring good control of inflation in line with the objectives set by the National Assembly, including closely monitoring the situation to quickly take appropriate management measures.

More construction price norms for public transport projects to be issued

The Ministry of Construction will issue more construction price norms for public transport projects under its authority in the first quarter of 2024 to boost the construction of the country’s key transport projects.

Deputy Minister of Construction Bui Hong Minh spoke at an online conference to deploy the Prime Minister's Official Dispatch 02/CD-TTg dated January 9, 2024, co-organised by the Ministry of Construction and the Ministry of Transport early this week. The event aimed to remove difficulties and obstacles related to construction investment costs, construction price and construction material price regulations.

According to Minh, in recent years, the investment in the construction of key projects, such as North-South Expressway, Ring Road 4 in Hanoi, Belt Road 3 in Ho Chi Minh City, National Railway, urban railways, seaports and airports have been implemented synchronously, helping to connect economic development of regions, inter-regions and national key economic regions.

However, Minh said, the management of the projects has still faced many difficulties and obstacles related to construction investment costs, construction price and construction material price norms, especially the price of construction materials at mines assigned to contractors according to the specific mechanism of the National Assembly and the Government.

At the meeting, Deputy Minister of Transport Le Anh Tuan said that the current regulations on managing construction investment costs are basically complete and meet practical management requirements. However, in the actual implementation process, some projects still face difficulties and obstacles in developing, appraising and approving total investment estimates and construction costs.

To solve the problems, Deputy Minister of Construction Bui Hong Minh said his ministry will issue 318 additional construction price norms for public transportation construction projects according to its authority in the first quarter of 2024.

Besides, the ministry will also issue 547 price estimation norms for public transport construction projects.

"We will continue to review to issue new norms for those still lacking or inappropriate due to changes in technology, construction conditions or new construction materials," Minh affirmed.

Vietnam Airlines records a profit from transportation activities

Vietnam Airlines group for the fourth quarter of 2023 achieved improved indicators and recorded a profit from transportation activities, according to its financial report released on January 31.      

In December 2023, the airline reported a profit of VND26.57 billion, compared to a loss of VND282 billion in the same period in 2022.

The report showed that sales and service provision revenue for the fourth quarter of 2023 reached VND17.9 trillion, representing a 29.4% increase compared to the fourth quarter of 2022. Domestic revenue increased by 14%, while international revenue increased by 49.1%. This improvement is attributed to an increased shipping volume as the market gradually recovered.

Although the total costs in the last quarter of 2023 increased by 20.54% compared to the same period in 2022, the growth rate of revenue and other income outpaced the growth rate of costs. As a result, the loss after tax decreased by more than VND125 billion compared to the same period the previous year.

The report also mentioned that subsidiaries such as NCS, VACS, NCTS and Skypec were more profitable, contributing to a decrease in the consolidated loss for the fourth quarter of 2023 to VND1.45 trillion, a reduction of 42% compared to the same quarter.

Business activities in the last quarter of 2023 showed improvement, leading to a brighter financial outlook for the entire year. The sales and service provision revenue for the parent company in 2023 is projected to reach VND69 trillion, a 40% increase compared to 2022.

The parent company's gross profit on sales and service provision in 2023 is expected to be over VND2 trillion, and the loss after tax is projected to be VND4.7 trillion, down 46% compared to 2022.

Vietnam Airlines faced challenges such as general economic difficulties, weak transport demand, and the impact of the COVID-19 pandemic, as well as financial risks arising from factors such as exchange rates, interest rates, rising raw material prices and political conflicts in countries around the world. Despite these challenges, the group implemented various solutions, resulting in improved business results, although they were not comprehensive and rapid.

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