The distribution systems of foreign retailers have become an effective and sustainable export channel, and the Ministry of Industry and Trade (MoIT) will continue to support domestic firms to make the most of this channel, said Deputy Minister of Industry and Trade Do Thang Hai.

Speaking at a conference in Hanoi on February 22 to seek ways to speed up the implementation of a project to promote Vietnamese businesses’ direct participation in foreign distribution channels until 2030, Hai said that since the first phase of the project was conducted in 2015, Vietnamese products have reached millions of consumers across the world through the networks.

In order to effectively implement the project, the MoIT will continue to work to expand the network of strategic partners of the project, especially foreign retailers who are now present in Vietnam or show interest in the transition of the supply chain to the Vietnamese market, he said.

Hai added that the ministry will also coordinate with localities and trade associations to select key businesses to receive support from the project, while designing suitable policies to encourage exporters to directly export their products, helping them optimise cross-border e-commerce, and calling on banks to assist them in financial solutions.

The official said he hoped that foreign distributors and importers will continue to promote their roles as strategic partners of the project and help Vietnamese firms expand their export markets and join more deeply in the global supply chains.

Ta Hoang Linh, Director of the MoIT’s Europe-America Market Department, said that so far, 50 ministries, sectors and localities have submitted their action plans and coordination units to the ministry, showing their high awareness of the importance of this distribution channel.

Linh said that in 2023, the ministry plans to call for more distributors and importers, while organising training courses for local firms and conferences to connecting them and foreign distributors.

Vietnamese goods’ weeks will also be held abroad to introduce Vietnamese products to consumers across the world, he said, adding that a database on Vietnamese reputable exporters and foreign distributors will also be built and published at the project’s website.

Linh revealed that Vietnam International Sourcing 2023 will be organised within the project’s framework.

A representative from Thai-invested Central Retail Vietnam advised local enterprises to ensure their supply capacity and continuity in trade activities.

Nguyen Thanh Huan, Vice Director of An Giang province’s Department of Industry and Trade, proposed the Europe-America Market Department and the Vietnam Trade Office in France help the province to organise a conference to receive a French delegation to explore the partnership opportunities with their local peers.

An Giang businesses also hoped for assistance, guidance and consultancy from market, export, marketing and branding experts, Huan said.

HCMC to drastically improves its investment environment: Chairman

At the meeting to resolve obstacles for foreign enterprises organized by the People's Committee of Ho Chi Minh City, Chairman Phan Van Mai said that in 2023, the city will drastically improve the investment environment.

Mr. Alain Cany, President of the European Business Association, assessed that the association's previous recommendations on the inadequacy of customs procedures have been actively removed by the city. Customs clearance of goods is much more convenient.

However, he suggested that the city currently needs to continue to review and synchronously adjust a number of issues such as increasing the visa extension time to 30 days to promote tourism; renovating infrastructure and services at Tan Son Nhat international airport; thoroughly applying digital management, allowing enterprises to declare and license through the online system, and digital signature application.

Representatives of associations also petitioned that there should be more appropriate regulations to facilitate foreign enterprises to participate in investment through the form of share purchase or direct investment capital contribution.

In addition, the city needs to take specific actions in investing in transport infrastructure taking into account regional connectivity while promulgating policies to encourage businesses and people to carry out green transformation. Last but not least, the city should strengthen the construction of waste, wastewater and garbage treatment plants and control of air pollution and noise.

Many foreign business associations suggested that the city should synchronously apply educational reform solutions to improve the quality of human resources, have essential solutions to meet energy security and switch to clean energy, encourage investment in high technology and improve research and development capacity.

Listening to foreign enterprises’ opinions, Mr. Phan Van Mai suggested relevant departments and agencies to answer each specific issue.

He emphasized that the city drastically improves the investment environment with a focus on the responsibilities of departments and civil servants in 2023. furthermore, the city will issue regulations on the authority, and responsibilities of administrative agencies, and time for receiving and returning documents. In the near future, the city will announce the above information to enterprises for supervision and feedback.

The Chairman further informed that in the period of 2020 - 2030, the city will focus on completing the construction of national highways and connecting roads within the region and inter-region according to the planning. For instance, the urban railway line No. 1 will be put into operation by 2024 and the Ring Road 3 will be complete by 2026; the Ring Road 4 section from the bridge over the Saigon River - Thay Cai Canal by 2030, the Ho Chi Minh City - Moc Bai Expressway, and the Ho Chi Minh City - Chon Thanh Expressway will be done by 2030.

As for investment in environmental quality, the city leader affirmed that the city does not license waste landfill projects, but only allows investment in projects using modern technology of burning waste to generate electricity. Regarding wastewater treatment, the city has invested and is preparing to put into operation the Tham Luong - Ben Cat canal water treatment project, followed by the Xuyen Tam canal with a total investment of VND15,000 billion. These two projects are expected to be completed in 2027.

In respect of the health sector, as medical examination and treatment needs have been increasing with an estimated 50 million patients per year, in addition to upgrading and building new hospitals such as Children's Hospital, and Oncology, the city plans to invest in a medical screening and treatment center. Regarding public services, the city is focusing on infrastructure investment, building a shared database, and reformatting the city's digital public services.

Industry ministry wants power supply secured

Vietnam’s Ministry of Industry and Trade has requested three major State companies to ensure stable electricity supplies to facilitate socio-economic development and meet people’s needs.

At a meeting held on February 21, Minister of Industry and Trade Nguyen Hong Dien told the ministry’s agencies to work with Vietnam Electricity Group (EVN), Vietnam Oil and Gas Group (PVN) and Vietnam National Coal and Mineral Industries Group (Vinacomin) to remove hurdles to investment in power industry infrastructure.

They should handle issues related to the prices of electricity and raw materials for power generation, Dien added.

He told them to strictly follow the business plans approved by the Commission for the Management of State Capital at Enterprises and accelerate work on key projects.

“Energy development plays a strategic role in industrialization and modernization as it lays the foundation for the nation’s socio-economic development,” he said.

He said there will be follow-up meetings to work out policies supporting power businesses.

Deposit interest rates continue to decrease

Commercial joint stock banks have continued to lower deposit interest rates since the middle of this month, a move that is expected to help reduce lending rates and support businesses.

From February 14, GPBank lowered its saving interest rates by 0.4 percentage points. The six-month term and 12-month term rates now stand at 8.9 and 9.1% per year, down from 9.3 and 9.5% per year, respectively.

From February 18, Techcombank also cut saving rates for VIP customers by 0.5 percentage points for both terms of 12 months and 24 months to 8.7% per year. It also cut the saving rate for six-month term deposits by 0.3 percentage points to 8.7% per year.

From February 14, Sacombank decreased saving rates for six-month, 12-month and 24-month terms, bringing the six-month rate down to 8.2% per year, the 12-month rate to 8.6% per year and the 24-month rate to 8.8% per year.

On the contrary, from February 14, Sai Gon Hanoi Commerical Joint Stock Bank (SHB) slightly increased deposit interest rates. For online deposits, the interest rate increased to 8.42% per year from 8.12% per year. For the 24-month term, the deposit interest rate increased to 8.82% per year from 8.52% per year.

The highest deposit rate on the market is now 9.5% per year (the six-month term at Sai Gon Commerical Joint Stock Bank (SCB) and PVcombank).

Meanwhile, the 9.5% deposit interest rate is also applied for 12-month and 24-month terms at Bao Viet Bank, SCB, PVcombank, Dong A Bank, Viet A Bank, MSB, and Bac A Bank.

At a recent meeting among the State Bank of Vietnam (SBV), commercial banks and property developers, a bank leader said the ceiling deposit rate would be brought down to 8.7% per year in the coming time instead of the current 9.5% per year.

The fact that commercial banks have continued to lower deposit interest rates since early this month and cut further last week has raised hope of a drop in lending rates.

Over the past week, banks such as Agribank, Techcombank, VietinBank, Sacombank, MB and SeABank have lowered lending interest rate by 1-3% per year.

Agribank has announced a maximum lending interest rate reduction of 3% per year for outstanding loans for real estate as of January 31, 2023.

Economist Le Xuan Nghia, a member of the National Financial and Monetary Policy Advisory Council, said deposit interest rates are still too high.

Recently, the Vietnam Banks Association called on commercial banks to keep deposit interest rates at 9.5% or below to reduce lending interest 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.

Experts said the global economy is likely to have a recession this year. At the same time, the US Federal Reserve will continue its rate hikes, which will put pressure on interest rates to continue rising.

Gas sale heads of agreement signed for O Mon II Thermal Power Project

The Vietnam Oil and Gas Group (Petrovietnam) and a joint venture between the Trading Construction Works Organisation (WTO) and Japan’s Marubeni Corporation signed a gas sale heads of agreement for O Mon II Thermal Power Project on February 22.

The main content of this heads of agreement is to unify the principles and main provisions of the Gas Sale Agreement (GSA) and serve as a basis for the parties to accelerate the investment progress of all projects in Block B gas - power project chain.

Petrovietnam General Director Le Manh Hung said that the entire gas source of Block B, nearly 400km off Can Tho city’s coast, will be transported through a pipeline system to the city’s O Mon district to be supplied to the O Mon I, O Mon II, O Mon III and O Mon IV power plants, which have a combined capacity of about 3,810 MW.

During the stable period, Block B will provide power plants with about 5.06 billion cubic metres of gas per year to produce about 21.2 billion kWh of electricity to meet part of the energy demand for Vietnam’s economic development in the coming time.

In particular, the development of the project will contribute significantly to the state budget and socio-economic development for the southwestern localities, as well as ensuring the national electricity generation demand in the period after 2026, added Hung.

Nobuta Tetsuhiro, Counsellor of the Japanese Embassy in Vietnam, affirmed the O Mon II Thermal Power Plant Project, invested by the WTO-Marubeni joint venture, will be an important transitional energy project, contributing to helping Vietnam fulfill its commitment to bring net emissions to zero by 2050, as well as tightening cooperation between Japan and Vietnam.

He said that the Japanese embassy will maintain its support to speed up the progress of the project, which is expected to be put into commercial operation in 2026-2027.

CPTPP members discuss UK’s accession

Ministers and officials from members of the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) and the UK on February 22 attended an online ministerial meeting to discuss the negotiations of the UK’s accession to the deal.

The meeting was chaired by Japan’s Minister of Economy, Trade and Industry (METI) Shigeyuki Goto who is also the chairman of the UK’s Accession Working Group.

Minister of Trade and Industry Nguyen Hong Dien led a Vietnamese delegation to attend the meeting.

At the meeting, the ministers discussed and agreed to continue promoting the negotiations to maintain the high standard of commitments and market opening of the agreement.

On this occasion, they also welcomed Chile as the 10th member of the agreement, after it started taking effect in the country on February 21.

Minister Dien affirmed that he will continue to actively coordinate with other CPTPP countries to soon conclude the UK's negotiations to join the agreement in the principle of ensuring high standards of the agreement.

The participation of the UK - one of the world's leading developed economies - will not only bring opportunities for trade and investment for each member country but also affirm the position of the CPTPP which is a new-generation, high-standard free trade agreement and a model of regional economic cooperation for the 21st century.

The next negotiation session between CPTPP countries and the UK will be held in Phu Quoc city in the southern province of Kien Giang from February 27.

HCMC’s tourism revenue soars in Jan-Feb

HCMC’s tourism sector generated over VND21.2 trillion in revenue in the first two months of 2023, surging by 62.3% year-on-year, according to the municipal Department of Tourism.

Between January and February, the city welcomed nearly 677,000 international tourists, rocketing 100% year-on-year, and 4.7 million domestic visitors, up 46% against the year-ago period.

In February alone, the city earned VND13 trillion from tourism and received over 2.9 million local and international travelers.

Many new and distinctive tourism products and services have been launched in the city to unlock the potential of Thu Duc City and several HCMC districts and attract visitors, according to the HCMC Department of Tourism.

HCMC is also speeding up work on key tourism projects and focusing on improving sightseeing tours, nighttime tourism activities, leisure travel, spiritual travel and wellness retreats.

Besides, the department is collaborating with relevant units to map out a detailed plan to implement the smart tourism development program in HCMC in the 2021-2025 period, Lao Dong Online reported.

Credit growth projected to reach 14-15% in 2023

The State Bank of Vietnam (SBV) has expected credit growth to hit 14-15% this year, leaving a possibility that it might adjust the orientation to suit the actual business situation and developments.

Many stock companies, however, predicted in their strategic reports that the growth will be about 13%. They explained that the lending interest rate is now at a high level, affecting the borrowing capacity and making production expansion projects less feasible.

Meanwhile, credit institutions projected credit balance of the entire system to increase by just 13.7% this year.

Credit growth reached approximately 13% last year, with most of credit serving production and trade.

Insiders confident in earning 4 bln USD from fruit, vegetable exports

Industry insiders have shown their confidence in exporting 4 billion USD worth of fruits and vegetables this year given rosy signs recorded recently.

China, the biggest market of Vietnamese fruits and vegetables, reopened its borders in the beginning of 2023, giving Vietnam a number of opportunities to increase shipments there. Particularly, fruit export holds many chances as this market always has high demand for farm produce imports.

Besides, during an official visit to China by Party General Secretary Nguyen Phu Trong in October 2022, protocols were signed to boost the export of an array of Vietnam’s agricultural products via the official channel to China, opening the door wider for fruits to enter this market.

Dang Phuc Nguyen, Secretary General of the Vietnam Fruit Association, said with China’s complete re-opening of borders, businesses now have many export advantages and can cut down expenses. Goods will be exported in bigger volumes and enjoy faster customs clearance, which will help guarantee product quality better.

Some industries are forecast to be hit hard by inflation, but the fruit and vegetable sector will not be affected that much, he said, noting that this year’s export value may grow by some 20% to 4 billion USD from nearly 3.4 billion USD in 2022.

In 2022, durian shipments alone brought home over 420 million USD, mostly in the fourth quarter, after the fruit had gained the green light to enter China via the official channel.

Durian exports to China are likely to generate 1 billion USD in 2023. Added with the 3 billion USD in revenue like last year, total fruit and vegetable exports can reach 4 billion USD, Nguyen went on.

Not only China, the EU has also removed four herbs of Vietnam from the list of those controlled at a frequency of 50%, namely parsley, coriander, basil, and mint.

It is expected to help boost the recovery of herb production and export to the EU, Nguyen said.

In addition, the return of the International Exhibition & Conference for Horticultural and Floricultural Production and Professing Technology in Vietnam, to be held in Ho Chi Minh City in early March, after a two-year hiatus caused by the COVID-19 pandemic is also hoped to open up numerous opportunities for the sector.

Nguyen Dinh Tung, General Director of Vina T&T Group, said that in January, his firm saw a year-on-year increase of 30% in the number of fruit export orders. Notably, the shipments of pomelo to the US and durian to China contributed much to this growth.

Given this, the company is confident in achieving the growth target of 30 - 40% in 2023, he noted.

Sharing the belief in a bright export outlook, Ngo Tuong Vy, General Director of the Chanh Thu Fruit Export - Import Co. Ltd, said Vietnamese durian has entered China much later than that from Thailand and Malaysia, but its quality is comparable to the rivals’. This is a basis for the business to continue improving quality and then export volume.

The Chanh Thu company is completely able to double its durian sales to China in 2023, she added.

Phu Yen province plans to build 14-km seaside road

The central province of Phu Yen plans to build a 14.2-kilometer seaside road linking Tuy An district and Tuy Hoa city to enhance regional transport connectivity and fuel economic growth.

The provincial People’s Council passed a resolution to develop the 3.43-trillion VND (145 million USD) seaside road project at its extraordinary meeting on February 16.

Of the total cost, 2 trillion VND would be sourced from the central budget while the rest would be covered by the provincial budget.

The 42-meter-wide coastal road would run from the An Hai bridge in An Ninh Dong commune, Tuy An district, to the naval submarine maintenance center in An Phu commune, Tuy Hoa city. The project will be implemented between 2023 and 2027.

Speaking at the meeting, Vice Chairman of the provincial People’s Committee Le Tan Ho said the Tuy An-Tuy Hoa route is part of a 132-kilometer seaside road that passes through Phu Yen. Up to now, 95.5 kilometers of the entire route has been completed.

Cao Thi Hoa An, Chairwoman of the provincial People’s Council, said the investment in the entire seaside route would create an economic growth driver to attract investors of seaside projects, especially tourism ones associated with popular destinations in the province such as O Loan Lagoon and Ganh Da Dia.

Binh Duong province attracts second most FDI in Vietnam

The southern province of Binh Duong as of the end of 2022 had attracted more than 4,082 foreign direct investment (FDI) projects worth nearly 40 billion USD of registered funds, ranking it among the top two provinces in the country in FDI attraction, just after Ho Chi Minh City.

HCM City and Binh Duong were the leading localities in FDI attraction in 2022 with 3.94 billion USD and 3.14 billion USD, respectively.

According to the Ministry of Planning and Investment's (MPI) Foreign Investment Agency, the southeast region will continue to be the major FDI magnet of the country in 2023. This year, the country may lure about 36-38 billion USD in FDI.

Binh Duong has estimated its gross regional domestic product (GRDP) growth rate at 8.01% and GRDP per capital at 170 million VND (7,100 USD), according to the provincial People’s Committee.

Binh Duong's total import and export turnover hit nearly 61.5 billion USD, of which, exports reached 35.7 billion USD, up 9% year-on-year, resulting in a trade surplus of 10 billion USD. Total social investment capital reached over 154.5 trillion VND (6.51 billion USD), up 12.9% year-on-year.

Vietnam’s durian exports to China targeted at US$1 billion this year
 
Vietnam’s durian shipments to China are forecast to fetch over US$1 billion in all of this year, said Dang Phuc Nguyen, general secretary of the Vietnam Vegetable and Fruit Association.

Since Vietnam started formal durian exports to China in September last year, some US$400 million worth of Vietnamese durian has been shipped to the latter, indicating a possibility that US$1 billion in durian sales to the northern neighbor can be achieved this year.

Vietnamese durian is a sought-after fruit in China, Nguyen said at a press briefing held on on February 15 to introduce HortEx Vietnam 2023 in Ho Chi Minh City, adding Vietnam exports durian to many markets, including Australia, the United States, Japan, Taiwan (China) and China.

China now accounts for a majroity of Vietnam’s durian exports.

Vietnam has advantages over Thailand in shipping durian to China as it takes Vietnamese exporters only 1.5 days to ship the commodity to the northern market while Thailand spends 7-10 days doing it.

Flexibility encouraged as enterprises steel for strain

A series of listed steel companies reported losses in 2022, and the outlook for 2023 is expected to also remain negative.

The top listed steel companies including SMC, Pomina Steel, VNSteel, Nam Kim Steel, and Tienlen Steel Corporation recorded a net loss in the fourth quarter of 2022, according to the latest reports.

Among them, Hoa Phat Group, the largest steel producer in Vietnam as well as in Southeast Asia, achieved revenue of VND26 trillion ($1.13 billion) in Q4, a decrease of 42 per cent compared to the same period last year. It achieved a negative profit after tax of nearly VND2 trillion ($84.6 million), continuing to decrease in comparison to the third quarter of this year. Accumulating of 2022, Hoa Phat recorded revenue of VND142 trillion ($6.17 million), a decline of 5 per cent against 2021. During the entire year, profit after tax reached more than VND8.4 trillion ($365.2 million) in 2022, equal to 24 per cent over the previous year.

Meanwhile, Nam Kim Steel recorded a loss of $15.48 million in the fourth quarter and, in the whole of 2022, a loss of nearly $2.9 million. Since 2012, this is the first year the company has reported a loss.

Pomina Steel announced revenues falling for the fourth consecutive quarter since the peak of $192.6 million - reaching $78.4 million, down 60 per cent on-ye0ar. In the whole of 2022, Pomina recorded revenues of $562.5 million, down 7.6 per cent over the same period.

Le Van Thanh, a representative of state-run VNSteel, said the prospect of recovering global steel demand continues to face difficulties when implementing tight monetary policies in many countries. The pressure on exchange rate and interest rate continues to increase, causing the costs of enterprises to increase, directly affecting the production and business efficiency of steel manufacturing enterprises.

Moreover, the prospect of steel demand recovery in the domestic market is forecasted to be slow due to the delay of the government’s economic and real estate support and promotion policies; the level of competition among steel manufacturers is increasingly fierce.

Specifically, VNSteel’s production in 2022 was deemed dismal when the output of finished steel production in 2022 met 87 per cent of the plan.

Nam Kim Steel announced the business results of the fourth quarter and the whole year of 2022 with numbers that upset shareholders. Specifically, its revenue decreased by 51 per cent over the same period. Nam Kim suffered a net loss of more than $15.5 million in the fourth quarter of 2022 and a loss of VND67 billion ($2.83 million) for the whole of 2022 while a profit of VND2.22 trillion ($93.9 million) in the same period.

The Vietnam Steel Association (VSA) said that the domestic steel industry faces several challenges that are likely to last until the second quarter of 2023.

Therefore, this year’s demand may increase sharply or not depending on many factors, especially when steel inventories of enterprises are still high, and manufacturers need time to process.

The VSA forecasts that the iron and steel market in 2023 will continue to be difficult, with the real estate market almost frozen. The future prospects of the industry depend on the progress of the disbursement of public investment because this will be the main growth driver of steel manufacturers.

But according to the latest Steel Industry Update Report of SSI Securities, more stable steel and raw material prices could help stabilise steel groups’ profits in 2023.

However, the country’s weak demand can lead to low steel consumption of only 60-75 per cent, which will put pressure on the companies’ revenue, cash flow, and profit margin next year. In addition, the narrowing price gap between Vietnam and other markets will make export profit margins less attractive than in the 2020-2021 period.

Expy project proposed in Bac Kan

The Project Management Unit 2 has sought the Transport Ministry’s nod to build a 28.7-kilometer expressway in the northern province of Bac Kan with four lanes instead of two as previously suggested.

The Cho Moi-Bac Kan project requires an estimated VND5.75 trillion. It is slated to get off the ground in February 2024 and be completed in 2026.

In related news, Deputy Prime Minister Tran Hong Ha has approved the Transport Ministry’s proposal to upgrade the National Highway 4B section passing through the northern mountainous province of Lang Son, according to the Government Office dispatch issued yesterday.

The deputy PM told the Transport Ministry to coordinate with the Lang Son Province People’s Committee and the relevant agencies to process procedures to start the road upgrade in line with prevailing regulations.

National Highway 4B is a key route linking Lang Son with neighboring Quang Ninh Province and Haiphong City, serving the transport of import-export goods to border gates in Lang Son and connecting with the Mong Cai border gate as well as the Van Don International Airport and some tourist attractions in Quang Ninh.

This national highway plays a crucial role in the local socio-economic growth as well as in the nation.

Currently, the route section in Lang Son is seriously deteriorating, thereby failing to meet the rising traffic volume over the years and affecting the regional socio-economic development.

Viet Nam and Italy to discuss cooperation during the World Expo 2030
     
Agriculture, environmental protection, and new energy will be priority areas in the relationship between Viet Nam and Italy, said Maria Tripodi, Italian Undersecretary of State for Foreign Affairs and International Cooperation.

She met with representatives from the Vietnamese Government and relevant agencies to discuss cooperation opportunities within the framework of the World Expo 2030 during a recent visit to Viet Nam as head of a delegation promoting Rome’s candidacy as host of World Expo 2030.

The two sides are working towards ideas and forming joint projects during the World Expo.

Italian Ambassador to Viet Nam, H.E. Antonio Alessandro, said the relationship between the population and the environment is extremely important for a country like Viet Nam, with a high urbanisation rate and problems similar to Italy in climate change, overpopulation, and depletion of natural resources.

He added that the World Expo 2030 will open up many opportunities for cooperation between Italy and Viet Nam on these important issues.

The World Expo is among the greatest global events, with more than 170 years of history and provides a unique opportunity for participating countries to display to the world their identity, aspirations, progress, and technological achievements. At the same time, the World Expo is a global gathering of nations committed to finding solutions to the most pressing challenges of our time, thus contributing to the development of humankind.

Roma Expo 2030 is planned to take place from May 1 to October 31, 2030. It will not be just another “exhibition”. On the contrary, Rome Expo 2030 is a joint project to be developed together with all those countries who want to be part of it and join hands for a more sustainable and inclusive future.

Hanoi undertakes measures to boost agricultural outputs

Hanoi authorities have been deploying various mechanisms and policies to encourage enterprises and cooperatives to invest in processing agricultural products, said Deputy Director of the City Department of Agriculture and Rural Development Ta Van Tuong.

The city has set specific targets, such as having 50% of agro-processing factories apply high technology for producing and preserving produce by 2025.

Hanoi aims to establish 15 competitive facilities processing agricultural products associated with value chains by 2030 and form a one-stop processing, preservation, and inspection complex to support the export of such products.

There are thousands of agricultural product processing establishments in Hanoi, and 98% are small- or medium-scale. The number of production lines with modern technology and storage systems is minimal.

Asian automakers to launch EV business in Vietnam

Regional automobile manufacturers have sought to sell electric vehicles (EV) in Vietnam and build car assembly plants for the domestic market.

Wuling Hongguang Mini EV, China’s best-selling compact EV, will be made and sold in Vietnam this year, the local media reported.

The project is part of a cooperation effort between Vietnam’s TMT Motors Corporation and SGMW, a joint venture based in China of SAIC, General Motors and Wuling.

The businesses plan to assemble 30,000 cars yearly at TMT Motors’s factory in the Red River Delta province of Hung Yen.

Chery Automobile, another Chinese automaker, said in early January that the electric version of the Cherry Omoda 5, as well as the other three gasoline models, will be available in Vietnam this year.

Meanwhile, TC Motor announced that the company would assemble the Hyundai Ioniq 5 in Vietnam in 2023. The firm is the local distributor and assembler of South Korean automaker Hyundai.

According to experts, international businesses are interested in Vietnam’s car industry, given local booming demand and its strategic role as a gateway to other Southeast Asian markets.

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