This year has seen the prices of key agricultural products rising, driven by factors such as the El Nino phenomenon, increasing global market demand, and supply disruptions.

At the closing session on February 17, raw coffee cost VND80,100 per kilogram, an increase of VND1,400 compared to the previous day. Exported rice has remained steady at US$640 per ton, matching the record set last year.

Meanwhile, durian prices have edged up by 20% over the end of 2023. Companies are now purchasing Monthong durians at VND200,000 per kilogram.

Forecasts indicate that prices of many agricultural products will continue rising until the middle of this year. Vietnam’s key commodities, including durian, coffee, and rice, are anticipated to perform well in the coming time.

According to a report from the Ministry of Agricultural and Rural Development, January saw prices of various items growing compared to late last year. Coffee inched up by 4-9%, rice over 6%, and mango by 8%.

The ministry aims for an overall growth rate of the agricultural industry of around 3.2% to 4% this year. Total export turnover of agricultural, forestry, and aquatic products is projected to range from US$54 billion to US$55 billion.

Vietnamese toothbrushes subject to Türkiye’s extended application of self-defence tax

The General Directorate of Imports (DGI) under Ministry of Trade of Türkiye has issued a notice extending the application of self-defence tax on toothbrushes, including those from Vietnam, imported into the country from February 3, 2024, to February 2, 2027, according to the Vietnamese Ministry of Industry and Trade’s Trade Remedies Authority.

Vietnam is not excluded because it is on the list of the countries with significant imports into Türkiye. The product being investigated/applied with self-defence tax is coded HS 9603.21.00.00.19.

The tax rate for the first year from February 3, 2024 - February 2, 2025 is 0.13 USD a piece. The figure will be reduced to 0.11 USD a piece for the second year, and 0.09 USD for the third year.

The Trade Remedies Authority said that on February 2, 2021, the DGI issued a notice on the application of self-defence tax globally from February 3, 2021, to February 2, 2024.

VinFast to break ground for integrated electric vehicle facility in India

Vietnamese electric vehicle (EV) maker VinFast said on February 21 that it will break ground for its integrated electric vehicle (EV) manufacturing site in Thoothukudi city, India’s Tamil Nadu state, on February 25.

This move represents a significant step towards a strategic partnership between VinFast and Tamil Nadu, contributing to promoting the development of green transportation in India and the region.

The partnership between VinFast and Tamil Nadu began following the signing of a Memorandum of Understanding (MoU) on January 6. The collaboration aims toward an intended commitment of 500 million USD for the first phase of the integrated EV facility, spanning five years from the commencement date. This is a significant milestone in VinFast's global expansion strategy of venturing into one of the world's fastest growing major economies and its burgeoning EV market.

The groundbreaking ceremony of the EV manufacturing plant just over a month after the announcement of the MoU with Tamil Nadu affirms VinFast's strong determination and roll-out speed in its global expansion plan.

The integrated EV manufacturing facility is projected to generate about 3,000 to 3,500 local job opportunities. It not only caters to development objectives in the Indian market, but also serves exports to South Asian, Middle Eastern and African countries.

Additionally, the project will catalyse green transportation development in India, contributing to materialising the Indian government’s target of having 30% of newly registered private cars being electric.

RoK’s No1 LPG company E1 joins Vietnamese market

E1, the No1 liquefied petroleum gas (LPG) company in the Republic of Korea, has signed a joint contract with Venus Gas, the largest LPG importer in northern Vietnam, to build an 80,000-tonne LPG refrigeration tank terminal in Bac Tien Phong industrial complex in Vietnam’s Quang Ninh province.

The LPG refrigeration tank terminal has been designed to contain 50,000 tonnes of propane and 30,000 tonnes of butane. The project is scheduled to break ground in the first half of 2024 and to operate commercially in 2025.

Through the tank terminal, E1 is expected to supply more than 1 million tonnes of LPG annually to the Vietnamese market.

“This project is the first overseas LPG terminal project promoted by E1. Based on know-how accumulated in Korea, we will enter overseas markets to stably supply LPG and continue to find new sources of demand to become a global energy company,” said an E1 official in a press release of the company.

According to E1, Vietnam’s use of LPG for cooking is rapidly increasing due to economic growth and increased income levels, and LPG raw material-based petrochemical projects such as propane dehydrogenation (PDH) processes are also actively underway, which is expected to increase demand for LPG imports.

E1 plans to enter the LPG domestic market in Vietnam through the construction of the joint tank terminal and gradually increase its market share. In addition, it will expand its LPG business in Vietnam through various partnership cooperation with petrochemical companies that are scheduled to move into the industrial complex where the tank terminal is located.

Pepper exports soar both in volume and value in January

Vietnam exported 20,000 tonnes of pepper in January for US$79 million, increasing 60.2% in volume and 83.9% in value compared to the same period last year, according to the General Statistics Office.      

Last year saw the country ship 265,897 tonnes of pepper abroad worth nearly US$910.5 million, representing a rise of 16.3% in volume but a decrease of 6.2% in value from the previous year.

Notably, it earned US$643.5 million from exporting 184,800 tonnes of black pepper, up 14.4% in volume and 1% in value compared to 2022.

Vietnamese black pepper is now available in more than 100 countries and territories around the world, including major traditional export markets such as China, the United States, India, the United Arab Emirates, and the Philippines.

China was the second largest consumer of Vietnamese pepper, with 3,359 tonnes worth US$13.2 million, up 18% in volume and 1% in value compared to 2022.

Statistics show the market share of Vietnamese pepper in China increased sharply from 32.39% in 2022 to 36.57% last year, marking the largest increase witnessed among major pepper suppliers to China.

Industry insiders say Chinese pepper import demand is forecast to rise this year compared to 2023, a factor which will offer a wealth of opportunities for pepper exporters around the world, including Vietnam.

Human resources training for IC design blooming nationwide

Thanks to the appearance of the Electronics and Semiconductor Center in SHTP, several provinces have begun to launch their own IC human resources training programs.

In September 2023, Saigon Hi-tech Park (SHTP) introduced its Center for Electronics and Semiconductor (ESC) – the first in Vietnam to train human resources in the semiconductor field according to international standards.

“ESC is considered as the provider of the most systematic training curriculum at present under the International Process Control (IPC) Standard, widely applied by global technological corporations. Trainers participating in this program are Vietnamese experts working for many years in major electronic enterprise in Silicon Valley (the US). The training content has passed the consultation of leading IC companies in the world like Mediatek, Synopsys, Sun Electronics to improve its quality”, informed Director Nguyen Duc Huy of the SHTP Training Center. 

In January 2024, Thu Dau Mot University in Binh Duong Province and Sun Edu (member of ESC) introduced an in-depth IC design training course for the former’s lecturers. At the end of that month, ESC and Lac Hong University signed an agreement to establish an IC center in Dong Nai Province, attracting the attention of the provincial leaders, who then announced that they will adopt incentive policies and mechanisms for universities in the area to train human resources for this industry.

According to Prof. Dr. Dang Luong Mo, human resources training centers for the IC industry normally aim at identifying a standard training model in association with the general development of the microchip industry in the world.

The forming of ESC in SHTP and the cooperation with Southern universities lately help to spread the tendency of developing the high-quality human resources for IC design to answer the demands of both investors and businesses in the upcoming future.

In 2024, SHTP với sets the goal to turn Vietnam into the center for IC design of the region as well as the world, starting with providing qualified human resources training programs.

“HCMC has considered the electronics and IC fields are the two focuses, so the SHTP management is both running suitable human resources training courses and trying to attract more investments in this industry”, said Head Nguyen Anh Thi of SHTP’s Management Board.

Phu Quoc tourism shows signs of revival

After a period of stagnation, tourism in Phu Quoc (Kien Giang province) is experiencing a resurgence at the end of 2023 and the beginning of 2024.

This progress stems from the joint efforts and high determination of the Government, tourism sector, businesses, and local residents in implementing revitalization measures for the 'Pearl Island'.

In stark contrast to the quiet atmosphere of just a few months ago, Phu Quoc is now bustling with activity on its streets, beaches, restaurants, hotels, and entertainment venues.

Kim Chung Hee, a visitor from South Korea, explained that he and his family chose Phu Quoc after considering three different destinations in three different countries. 'We opted for Phu Quoc for its beautiful weather and scenery this season. Also, with Vietnam gearing up for the traditional Tet holiday, we wanted to immerse ourselves in this cultural experience, especially after hearing from a friend about the rich traditions of Tet in Vietnam,' shared Kim Chung Hee.

Truong Xuan Linh, a tour guide at Viet Phu Tourism Company in Phu Quoc, shared that since Christmas 2023, she and her colleagues have been consistently busy due to the significant rise in tourist arrivals, particularly from Thailand, Malaysia, Russia, China, Kazakhstan, the Czech Republic, Poland, and the US.

"Most tourists arriving in Phu Quoc have already booked accommodations through the Tet holiday. Besides visiting and relaxing at Sao Beach and Khem Beach, they also explore traditional craft villages producing fish sauce and rose myrtle wine and savor traditional island dishes like 'bun quay' and seafood porridge," Linh explained. However, she noted that while there had been a sharp increase in international tourists during the days leading up to Tet, domestic tourists remained scarce, making up only about 30 percent of the total arrivals.

A representative from the Department of Tourism of Kien Giang Province disclosed that from the 2024 New Year to the Lunar New Year, the occupancy rate of accommodations in Phu Quoc was notably high. Specifically, in the 4-5-star segment, the average occupancy rate exceeded 60 percent, with some establishments reaching as high as 97 percent occupancy. It is projected that room bookings will continue to rise after Tet, particularly from domestic tourists, drawn by the island's post-Tet favorable weather and its appeal as a spring vacation destination.

Ms. Quang Xuan Lua, Director of Kien Giang Province's Tourism, Commerce and Investment Promotion Center, shared that currently, there is one daily flight from Kazakhstan to Phu Quoc, scheduled to continue until March 2024. Moreover, several major South Korean airlines like Korean Air, Jeju Air, and Jin Air are either introducing new routes or resuming direct flights to Phu Quoc. Presently, Phu Quoc receives over 2,000 international tourists per day for sightseeing and tourism, a figure significantly higher than in the third quarter of 2023.

As per several travel agencies in Phu Quoc, tourism on the ‘Pearl Island’ is thriving at the end of 2023 and the beginning of 2024, largely thanks to the active involvement of local authorities and the tourism sector. Recent improvements, such as environmental adjustments, air pollution reduction, and crackdowns on unethical practices, have contributed to a more reassuring experience for visitors to Phu Quoc. Moreover, with Phu Quoc currently enjoying its most favorable weather of the year, it is drawing in a large number of both domestic and international tourists for leisure and exploration.

Mr. Huynh Quang Hung, Chairman of the People's Committee of Phu Quoc City, revealed that local authorities are collaborating with various stakeholders, including businesses and residents, to launch a communication campaign aimed at bringing tourism information and messages of hospitality closer to tourists, especially international visitors.

The People's Committee of Phu Quoc City is also overseeing and inspecting business operations in eateries, restaurants, and transportation services to prevent price gouging and unethical practices and strictly enforce penalties for any violations. These efforts aim to cultivate a positive and welcoming image of Phu Quoc, ensuring peace of mind for tourists visiting the ‘Pearl Island’.

Representatives from Kien Giang Province's Department of Tourism stated that the tourism industry will vigorously innovate its products, enhance experiences, and focus on eco-friendly initiatives to attract tourists to Phu Quoc, especially domestic visitors, in 2024. They aim to elevate service quality while implementing various stimulating programs.

Additionally, the tourism industry in Kien Giang will review and compile data on all tourism-related businesses, requiring transparent registration and pricing for services. They will also inspect promotional activities and discount programs to ensure compliance with regulations.

To ensure the ongoing recovery and substantial development of tourism in Phu Quoc in 2024, Mr. Nguyen Luu Trung, Vice Chairman of Kien Giang Province's People's Committee, has directed the provincial Department of Tourism to collaborate with the Phu Quoc City People's Committee to promptly implement new strategies.

They include fast-tracking the completion of the plan to develop Phu Quoc City into a high-quality ecotourism service hub and a nationally and internationally recognized beach and island tourism destination, as approved by the Prime Minister in the master plan of Kien Giang Province. Additionally, there will be a focus on researching and developing new tourism products while strengthening State management of the tourism sector.

During the 2024 Lunar New Year, Phu Quoc City received nearly 192,000 visitors, including 51,929 international arrivals. The number of overnight stays reached 66,958, marking a 4.6 percent increase compared to the same period last year.

Many existing service offerings have been enhanced and refreshed while new products have been introduced, such as the "Kiss the Star" show, "Marriage Proposal," "Fest Bazaar Night Market," "Ice Jungle," and various cultural, artistic, and entertainment activities that attracted tourists.

Hanoi set to hold dialogue with businesses to facilitate growth

Hanoi will soon hold a dialogue with the business community to understand and address their obstacles to foster further development.

“The move is aimed at boosting business production and, ultimately, socio-economic development,” Secretary of the Hanoi Party Committee Dinh Tien Dung stressed at a meeting with senior officials of the city on February 15.

In terms of agricultural production, municipal and local authorities must ensure necessary conditions, especially in irrigation, so that farmers can timely plant their crops.

Dung called for Hanoi authorities to effectively mobilize resources to accelerate the disbursement of public investment funds and expedite key infrastructure projects, particularly transportation infrastructure.

“Another effort should be to encourage public engagement to stimulate a tourism and service-oriented movement throughout the city, particularly by enhancing the appeal of cultural heritage sites as attractive tourist destinations, domestically and internationally,” Dung said.

The Hanoi Party Chief reiterated General Secretary Nguyen Phu Trong's directives on the importance of Hanoi's culture, especially the requirement to cultivate cultured, civilized, and compassionate Hanoians.

Dung requested the relevant authorities to propose the drafting of guidelines on this task for early submission to the city’s leaders for review and timely implementation.

He also emphasized the need to strengthen the management of officials, civil servants, employees, and laborers at all levels to actively prevent and regularly remind them not to violate discipline, especially regarding working hours and the misuse of official vehicles.

Given the significance this year for Hanoi's implementation of the five-year socio-economic plan, Dung urged all levels and sectors, from the city down to the grassroots, to immediately embark on their tasks and work harder to ensure that "2024 must be better than 2023", thereby realizing the goal of building a genuinely civilized, cultural and modern capital.

Looking back on the Lunar New Year festive period, Dung emphasized that the atmosphere in the capital during Tet celebrations was generally positive, joyful, lively, safe, and economical, with "every family celebrating Tet, every individual having Tet".

This outcome was achieved thanks to the central government's careful attention and precise guidance and the proactive issuance and early implementation of the city's Tet organizing plan, said Dung.

Echoing Dung’s view, Vice Chairman of the Hanoi People’s Committee Le Hong Son stated that during the seven days of Tet (from February 8-14), the political security and social order in the city were well maintained, with no incidents of terrorism, sabotage, unlawful gatherings, or processions.

The city organized fireworks on New Year's Eve at 32 locations, ensuring safety; traffic flow was smooth, and the epidemic situation was closely monitored by the city's relevant authorities.

Attention was paid to beneficiaries of social policies and individuals with meritorious contributions. By February 7, the city had completed the task of visiting and presenting gifts to policy beneficiaries: 2,219,722 gifts were distributed to policy beneficiaries, with a total budget of VND1.03 trillion ($42 million).

During the period, Hanoi welcomed 653,000 visitors, an increase of 21.6% compared to the same period last year. Among them, international tourists continued to grow significantly, doubling year-on-year, with nearly 103,000 visitors (mainly from South Korea, China, the US, India, France, the UK, Germany, Japan, among others); domestic tourists increased by 12.2% with 550,000 visitors.

The total revenue from tourism reached VND2.35 trillion ($96 million), up 25.1% compared to the same period in 2023.

Companies increase deposit amounts to maximize interest earnings

Due to challenging business conditions and high deposit interest rates earlier this year, many companies were quick to increase their deposit amounts to earn interest.

As of the end of 2023, Mobile World Investment Corporation (MWG) held VNĐ24.3 trillion in cash and cash equivalents.

MWG increased its cash holdings amid difficulties faced by its retail chains, Thế Giới Di Động and Điện Máy Xanh, due to weak consumer demand and fierce competition. This strategy contributed to the company's financial revenue reaching VNĐ2.16 trillion for the whole year of 2023, a 65 per cent increase compared to 2022. After deducting financial costs of VNĐ1.55 trillion, MWG achieved a net profit of over VNĐ600 billion from this segment, which helped the company escape losses.

Petro Việt Nam Gas JSC (GAS) owned the largest cash amount on the stock market as of December 31, 2023, reaching VNĐ40.7 trillion (approximately US$1.7 billion). This figure increased by over VNĐ6 trillion since the beginning of the year and continued to rise by more than VNĐ700 billion compared to the end of the third quarter of 2023. With such a massive cash reserve, PV Gas earned VNĐ2 trillion in interest from deposits in the past year, a 67 per cent increase compared to the previous year. This translates to a daily interest income of VNĐ5.5 billion from bank deposits. Meanwhile, the company's interest expenses for the entire year amounted to only VNĐ340 billion.

Over the past year, Bình Sơn Refining and Petrochemical Company Limited (BSR) also recorded a significant increase of 52 per cent in financial revenue compared to the same period, reaching VNĐ2.66 trillion. This was mainly due to nearly VNĐ1.6 trillion in interest from deposits and over VNĐ1.05 trillion in exchange rate differences. BSR held a cash balance of VNĐ38.12 trillion at the end of the year, an increase of approximately VNĐ13.1 trillion compared to the beginning of the year.

After divesting from PGBank, Vietnam National Petroleum Group (PLX) experienced a strong 60 per cent increase in cash compared to the beginning of the year, reaching nearly VNĐ30 trillion. The company generated VNĐ2.74 trillion in financial revenue in 2023, a 27 per cent increase compared to the same period. This included VNĐ1.17 trillion in interest from deposits and loans, a 35 per cent increase. Conversely, interest expenses also rose sharply by 40 per cent compared to the same period, reaching over VNĐ900 billion.

Airports Corporation of Vietnam (ACV) reported a cash balance of nearly VNĐ28.8 trillion, a decrease of over VNĐ4 trillion compared to the beginning of the year. The company earned more than VNĐ1.6 trillion in deposit interest throughout 2023, the same as in 2022. The interest expense was only about VNĐ67 billion as ACV had minimal short-term borrowings (VNĐ410 billion). The long-term debt of over VNĐ10 trillion mainly came from ODA sources with low-interest rates.

FPT Corporation (FPT) recorded a cash balance of VNĐ24.38 trillion at the end of 2023, an increase of nearly VNĐ4.9 trillion over the year. Deposit interest income in 2023 amounted to over VNĐ1.64 trillion, a 22 per cent increase compared to the previous year. The interest expense was VNĐ832 billion.

Việt Nam Dairy Products Joint Stock Company (Vinamilk or VNM) held over VNĐ23 trillion in cash. The company earned over VNĐ1.5 trillion in deposit interest in 2023, a 28 per cent increase compared to 2022. Meanwhile, the interest expense amounted to only VNĐ354 billion.

Viettel Global Investment Joint Stock Company (Viettel Global or VGI) also had over VNĐ23 trillion in cash, an increase of more than VNĐ6 trillion since the beginning of the year. The company earned over VNĐ1.2 trillion in deposit interest in 2023, a 38 per cent increase compared to the same period. Conversely, interest paid on loans was only VNĐ375 billion.

Saigon Beer-Alcohol-Beverage Corporation (Sabeco or SAB) reported VNĐ22.8 trillion in cash, a 3 per cent decrease compared to the beginning of the year. With a significant deposit amount, Sabeco earned nearly VNĐ1.4 trillion in deposit interest in 2023, a nearly 36 per cent increase compared to 2022. The interest expense was only VNĐ50 billion as the total debt was only VNĐ700 billion.

Northern Midlands and Mountains not yet attractive to foreign capital

Although considered a region with many advantages, the Northern Midlands and Mountains are still not attractive to foreign investors.

Data from the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment (MPI) shows that the Northern Midlands and Mountainous provinces have attracted about 1,240 foreign direct investment (FDI) projects as of the end of last year, with a total registered capital of nearly US$29 billion.

With this result, the Northern Midlands and Mountains ranked fifth out of six economic regions of the country in terms of foreign investment attractiveness, accounting for only 3.4 per cent of the total number of projects and 6.2 per cent of total FDI capital invested in Việt Nam.

Economic experts said the Northern Midlands and Mountains were not attractive to foreign investment because this was a difficult area of the country with a high household poverty rate and asynchronous infrastructure development.

The number of businesses operating in the region is also low compared to the national average, and the majority are small or micro businesses.

Although it has not made much impression on foreign investors, some forecasts say that the opportunity for provinces in the Northern Midlands and Mountains to attract FDI is very high this year and the following years.

Localities in the region that have recently emerged as attractive destinations for foreign investment include Bắc Giang, Phú Thọ and Thái Nguyên.

Among them, Bắc Giang attracted nearly US$1 billion of FDI capital last year, ranking fourth in the country in attracting FDI.

It attracted about $200 million last month, ranking in the top three attractive localities for foreign investment in Việt Nam, after Bà Rịa - Vũng Tàu and the capital Hà Nội.

In particular, to plan a long-term development strategy for the region, the Politburo issued Resolution 11-NQ/TW on socio-economic development, ensuring national defence and security in the Northern Midlands and Mountains to 2030, vision to 2045.

The Government issued Resolution 96/NQ-CP on the Action Programme to implement Resolution 11-NQ/TW of the Politburo.

In order to continue to realise the perspectives, goals and orientations for regional development set out in the Resolution, and concretise national plans for 2021 – 2030, with vision to 2050, the Prime Minister assigned the MPI to preside over and co-ordinate with ministries, branches and localities in the region and relevant agencies and organisations to organise the planning of the Northern Midlands and Mountainous region during the 2021 - 2030 period, vision to 2050, according to the provisions of the Planning Law.

Minister of Planning and Investment Nguyễn Chí Dũng, Permanent Vice Chairman of the Northern Midlands and Mountainous Region Co-ordination Council, affirmed that planning for this region was important, helping to "pave the way" and proactively create development, with new thinking and vision to create new opportunities, development motivation and values for the region, remove bottlenecks in development and set out goals, development plans and solutions for implementation.

The Northern Midlands and Mountains include 14 provinces and cities: Bắc Giang, Thái Nguyên, Phú Thọ, Hòa Bình, Lào Cai, Yên Bái, Lạng Sơn, Tuyên Quang, Sơn La, Bắc Kạn, Cao Bằng, Hà Giang, Điện Biên and Lai Châu. 

Slower credit and non-performing loans have banks setting modest targets in 2024

Slower than expected credit growth and a large number of non-performing loans have resulted in conservative growth targets among commercial banks for 2024, said industry insiders and experts. 

In 2023, the country's largest commercial banks, including state-owned Agribank, Vietcombank, Vietinbank and BIDV, reported nearly US$25 billion in profit. Despite the positive figure, banks were reported to have scaled back on their growth targets this year, citing cautious approaches and higher loss provisions setup compared to previous years. 

Last year, VPBank and Techcombank dropped out of the top banks in terms of profit in USD, while state-owned banks dominated compared to the private group in profit rankings, thanks to a cautious trend in setting up credit loss provisions in previous years.

Vietcombank topped the chart with a consolidated pre-tax profit of over VNĐ41.2 trillion ($1.68 billion), a 10 per cent increase year-on-year, followed by BIDV with a consolidated pre-tax profit of VNĐ27.6 trillion, a 20 per cent increase year-on-year. 

However, industry insiders said the core operating income from credit for the two banks did not show substantial growth in the past year. For example, in 2023, Vietcombank's net interest income, the main source of income, only increased slightly by 0.7 per cent to VNĐ53.6 trillion despite the credit portfolio expanding 10.6 per cent compared to the end of 2022.

As a result, a reduction in risk provision costs has been a factor that helped Vietcombank's pre-tax profit continue to grow, despite a 2.2 per cent decrease in net profit from business operations in 2023 compared to 2022. At BIDV, besides reducing risk provision costs, non-credit sources such as services, foreign exchange business, and securities trading investment have been driving forces behind higher profits compared to the previous year.

Meanwhile, VietinBank has been less affected by credit issues. By the end of last year, the total outstanding loans reached over VNĐ1.5 quadrillion, a 15 per cent increase compared to the end of 2022. The bank said positive credit growth from the beginning of the year and sustained, steady growth in non-interest income helped the bank achieve a profit of VNĐ25 trillion, a 20 per cent increase year-on-year. Agribank also reported a profit of approximately VNĐ25 trillion, exceeding the yearly planned target by 5-6 per cent.

Among the private banks, MB has been the leader of the pack with a pre-tax profit of VNĐ26.3 trillion, a 16 per cent increase year-on-year with a credit growth rate of 28 per cent, significantly higher than the industry average. 

Other top performers included Techcombank and ACB despite minor setbacks that prevented them from reaching the $1 billion profit mark. For example, last year Techcombank reported a 10 per cent decrease in profits due to a reduction in credit income while having to increase provisions significantly. The bank ended 2023 with a profit of VNĐ22.9 trillion.

Meanwhile, ACB reported a profit of VNĐ20 trillion for the first time, thanks to reduced operational costs, growth in credit revenue and profit from securities trading investments.

Banks, however, remained cautious about growth targets as they entered 2024.

In the latest survey by the State Bank of Vietnam (SBV), banks said they expected a more favourable business situation for 2024. Pre-tax profits may recover more slowly than business conditions. 

As a result, Vietcombank aims for a profit of nearly $2 billion this year, a 10 per cent increase compared to 2023, with total assets by the end of the year expected to increase by more than 8 per cent, credit growth to be over 12 per cent, and bad debt below 1.5 per cent. 

BIDV has set out some key indicators, such as managing outstanding credit according to the credit limit assigned by the central bank, expecting a 14 per cent increase while leaving profit targets open. Vietinbank has set key business targets for this year, including total assets increasing by 5-10 per cent; credit growth of 14 per cent and reducing bad debt ratio to below 1.8 per cent.

Meanwhile, MB has set three objectives this year: achieving a profit target of VNĐ30 trillion, serving 30 million customers and securing a place in the country's top 3 banks in terms of service quality and efficiency.

Canadian businesses highly interested in Vietnamese market

Export Development Canada (EDC) has co-ordinated efforts with the Vietnam Trade Office to organise a workshop to update the economic situation and evaluate Vietnamese enterprises' operational efficiency within the global supply chain.

The workshop captured the interest of many Canadian businesses keen to expand operations to Vietnam, with the aim of preparing for the upcoming visit from March 27 to March 29 of the Canadian trade delegation led by International Trade Minister Mary Ng.

The delegation will also include 150 firms operating in the fields of processed food, biomedicine, clean energy, new technology, information technology, creative technology, and aviation technology.

This trip is designed to promote the comprehensive partnership between the country and Canada and also to expand the Canadian presence in ASEAN.

At the workshop, speakers provided a range of information related to the economic co-operation framework between the two countries, as well as best action plans to maximize the benefits of all parties amid Canada's Indo-Pacific Strategy being focused on ASEAN.

In his welcoming speech, Vietnamese Ambassador to Canada Pham Vinh Quang emphasized that both sides have a common vision and concern about the Indo-Pacific as they are committed to developing an open, inclusive, and sustainable region based on respect for regional laws and structures to create a peaceful and stable environment whilst boosting closer economic ties.

The two countries established a comprehensive partnership in 2017. Economic, trade, and investment links are one of the important pillars of the partnership between the both sides.

Vietnam is currently Canada's largest trading partner in ASEAN, with bilateral trade value reaching nearly CAD14 billion CAD, equal to US$10.37 billion, in 2023.

The Southeast Asian nation is also an important partner of Canada in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), bringing many opportunities for this country's products and services to access the domestic market, as well as that of ASEAN.

George Monize, vice president of the EDC in charge of the Indo-Pacific region, said this event is to prepare Canadian companies that want to join the trade delegation to Vietnam next March. This represents a great opportunity for Canadian companies that wish to learn about the existing potential in the Vietnamese market and how to access this market.

Canadian goods have been affirmed in terms of standards and are suitable for the needs of the growing middle class in the Vietnamese market.

Remy Franzoni, president of Engram Business Consulting Group, said that more and more Canadian enterprises are interested in the Vietnamese market. This workshop brings together many experts from EDC, Global Affairs Canada, and the Business Council of Canada, thereby helping businesses get a lot of useful information to prepare for the trip with the Canadian trade delegation.

Canadian Minister of International Trade Mary Ng said she hopes Canadian businesses involving in this delegation will deploy operations in potential markets like Vietnam and move to strengthen supply chain connections.

Senior leaders of Canadian firms will meet and discuss with Vietnamese partners and businesses to learn about policy-related issues and opportunities to take advantage of trade agreements and existing mechanism between the two countries and investment, sales, and supply opportunities in Vietnam.

This marks the first trade delegation this year organised by the Canadian Government within the framework of the Indo-Pacific Strategy worth more than CAD2.3 billion, equal to US$1.7 billion. In this strategy, Canada has set five major goals, including expanding trade, investment, and supply chain development in this region.

Tran Thu Quynh, commercial counselor of the Vietnam Embassy, said this event is part of a broad array of activities of the Trade Office to prepare for Canada's largest business delegation's Vietnam trip.

This will be an important event in bilateral ties in addition to the activities of the Joint Committee on Economic Cooperation between the two sides.

This Canadian trade delegation to the nation includes members operating in six different fields and will bring many opportunities to businesses of the two countries to create links in terms of markets and supply chains such as finding opportunities to connect customers, business partners, brand partners, and suppliers.

Mutual relations are increasing developing positively across multiple spheres from economics, trade, investment, culture, social affairs, science and technology, education and training, and people-to-people exchanges.

With positive growth prospects ahead, both sides have great needs and opportunities from the co-operation potential of the Canadian trade delegation to Vietnam this time.

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