In 2014, when Samsung Group announced a list of 170 parts necessary to assemble its products of Galaxy S4 and Tab, no Vietnamese companies in the supporting industry were able to answer the call. Ten years have passed by, and now the situation is opposite, when 250 domestic businesses in this industry are capable of providing needed parts to Samsung Group. A fifth of them are even considered level-1 suppliers. Similar stories can be found among the part suppliers for Toyota Vietnam, Sanyo, Panasonic.

With a clear aim of entering international supply chains, a large number of Vietnamese enterprises in the supporting industry have been carrying out renovations in their manufacturing technologies to answer the high demands of their current as well as potential partners.

For instance, Duy Khanh Engineering Co. Ltd. has just poured in VND200 billion (US$8.15 million) to purchase a large-scale advanced metal powder pressing and sintering line to supply various businesses. It has also upgraded its existing assembly lines to meet the standards of renowned corporations like Toshiba Industry, Rinnai, MK Seiko, Bonfiglioli, Thermtrol, Sanei Technology, USM Health Care. With these preparations, the company is now able to either produce items according to its partners’ designs or conduct research for new products of its own. This will ultimately raise the prestige of the company globally.

According to Dien Quang Group, for a more sustainable development of the supporting industry, it is advisable to invest in research and manufacturing core technological items. In 2007, the company allocated money to construct its hi-tech factory, a research and development center, a quality control lab while also focusing on the Original Equipment Manufacturer (OEM) side to produce modern LED chips for smart control and equipment. Thanks to that, there was no disruption in its supply chain even during the Covid-19 pandemic.

To better adapt to international corporations, many domestic businesses study the working culture of their partners and targeted supply chains.

Obviously, the proactiveness of Vietnamese enterprises in the supporting industry to join in global supply chains have become quite fruitful. However, more work should be done for them to reach the leading positions and eventually form ‘Make in Vietnam’ supply chains, meaning to be strategic suppliers of FDI businesses.

Chairman of the HCMC Mechanical and Electrical Businesses Association Do Phuoc Tong shared that despite certain successes in the investment and manufacturing capacity, almost all companies in the supporting industry in Vietnam are merely small and micro enterprises with a labor scale of about 300 employees. Their manufacturing lines are mostly semi-automatic.

Due to their scale, it is not at all easy for them to expand or upgrade their production technologies. What is more, they are so sensitive that even a minor policy might either boost them or turn them into chaos.

Take the case of Minh Man Manufacturing and Printing Labels Co. Ltd. as an example. After 20 years of operation, the company based on HCMC’s investment stimulus program to renovate itself. Unluckily, this program was stopped mid-way, and it cannot enjoy preferential loan rates anymore. Adding to that is a global price increase in input material, creating more challenges for the company.

Another problem comes from inadequate tax policies. Foreign businesses can enjoy an import tax rate of zero percent when bringing new technologies into Vietnam, whereas domestic enterprises have to pay high tax rates when buying cutting edge manufacturing technologies. This leads to a low competitive status of Vietnamese companies as opposed to their international counterparts.

Clearly, besides actively trying to renovate themselves, businesses in the supporting industry are in need of proper financial aid (tax policies, preferential loan rates) from the state in order to join in supply chains of FDI corporations.

Statistics from QIMA Quality Control Services reveal that Vietnamese supporting enterprises are a favorable choice of many corporations in the US and Europe, with the figures being 43 percent and 25 percent respectively. 38 percent of US businesses and 28 percent of European ones shared that they have a plan to seek Vietnamese suppliers to provide necessary items for their end-products in the next 12 months.

Vietnam attends tourism fair in India

Da Nang city’s Tourism Department, the national flag carrier Vietnam Airlines, and the Vietnam Travel and Marketing Transports Joint Stock Company  (Vietravel) have opened booths to promote Vietnam tourism at the 31st South Asian Travel and Tourism Exchange (SATTE 2024) in Greater Noida, India.

This year, the SATTE taking place from February 22-24 brings together more than 1,800 exhibitors, over 800 hosted international and domestic buyers, and agents/operators/professionals from over 120 Indian cities and towns. It has attracted more than 48,000 visitors.

Speaking at the opening ceremony of Vietnamese booths at the fair, Vietnamese Ambassador to India Nguyen Thanh Hai pledged continued support for localities and enterprises to promote Vietnam’s image in general and tourism products in particular as well as activities to promote Vietnam-India socio-economic development cooperation.

India is now the fourth biggest foreign tourism market of Da Nang city. The number of Indian tourists to the city accounts for 60% of total number of Indian tourists to Vietnam.

Meanwhile, Vietnam Airlines aims to achieve revenue of 40 million USD in the Indian market in 2024. It operates 14 direct flights per week between Hanoi/Ho Chi Minh City and the Indian cities of New Delhi and Mumbai.

Export goods stuck at Lang Son border gate

Thousands of container trucks have been stuck at the Huu Nghi International Border Gate in the northern province of Lang Son waiting to transport goods to China.

More than 10 large parking lots along the road leading to the border gate have been full over recent days. Most of the trucks carry agricultural products including jack fruits, durian, dragon fruits and fresh chilli from some central and southern provinces to be exported to China.

Manager of a parking lot in Cao Loc District said that dozens of trucks had been staying at his lot for many days waiting for customs clearance.

"Each truck carries about 20 tonnes of goods," he said.

A driver, Ngo Van Linh, said that he started transporting over 20 tonnes of dragon fruit from Tien Giang Province on February 13 and arrived at Huu Nghi Border Gate on February 17.

“Despite parking here, we're having to operate the refrigeration around the clock to prevent the fruits from rotting," Linh said. "I and another driver have to take turns to care for the goods."

Linh added that they are having to pay VND100,000 a day for parking.

"We've been informed that the Chinese side has yet to return to work after the Lunar New Year holiday," he said. "And so we have to wait."

Another driver, Pham Huu Tam, said that he had also waited for the Chinese side to receive his goods for four days.

"I arrived here on February 18 with 17 tonnes of fresh chilli from the southern province of Dong Thap," Tam said. "We're facing more losses each day waiting here."

According to the Customs Department at Huu Nghi International Border Gate, they are doing customs clearance for some 100 container trucks.

"Many trucks have been stuck here because their Chinese partners are still off for the Lunar New Year Holiday," the department said. "We will inform the drivers as soon as the Chinese sides arrive to take their goods."

VietJet Air purchases 20 wide-body aircraft from Airbus

Representatives of Airbus, Europe's leading aircraft manufacturing corporation, welcomed the opportunity to cooperate with Vietnamese Carrier Vietjet Air on February 22 after the two sides agreed on a trade deal to purchase 20 wide-body A330neo aircraft from Airbus.      

This information was released at the Singapore Airshow 2024 as Airbus confirmed that it has signed a Memorandum of Understanding with VietJet Air relating to the supply of wide-body aircraft to replace the A330-300 fleet that the airline is currently leasing.

Christian Scherer, CEO of Airbus's commercial aircraft business, affirmed that the group is very excited to co-ordinate alongside the low-cost Vietnamese airline in the new phase of development.

This sales contract is estimated to be worth billions of US$, marking one of the most significant agreements ever reached at Asia's largest air show.

The wide-body aircraft market is vibrant again as air travel demand recovers after the COVID-19 pandemic.

This is also the first wide-body aircraft purchase contract of VietJet Air.

The international media assess that the latest agreement shows VietJet's development in the context of the airline's plans to expand international destinations in Australia, India, China, Japan, the Republic of Korea, Indonesia, and Thailand.

Over 97 percent of workers return to work in HCMC

As of February 19, almost all businesses, factories and enterprises in Ho Chi Minh City started their operation after the Tet holiday with more than 97 percent of workers returning to their factories.

Ms. Kieu Ngoc Hoa, Head of the Human Resources Department, Samsung Electronics Company in Thu Duc City-based High-Tech Park, said that by February 19, 98 percent of the company's workers had returned to the southern metropolis to work after the traditional Tet holiday.

On the first working days of the year, the board of directors and the company's union executive committee went to each department and division to give lucky money and wish workers a successful year.

During the 2024 Lunar New Year, in addition to Tet bonuses, the company also organized 32 free-of-charge buses to take more than 900 workers back to their hometowns for Tet reunions with their relatives and pick them up in Ho Chi Minh City after Tet. That has helped workers feel secure about returning home and excited to return to work on time without having to worry about buying bus tickets.

Yesterday, all staff of the Branch of Long Bien Investment Joint Stock Company in Go Vap District which started business on February 11. The company spent about VND7.6 billion on bonuses and gifts for all workers.

Nidec Vietnam Company in High-Tech Park officially welcomed workers back to work after the Lunar New Year holiday on February 18. According to Chairman of the union of Nidec Vietnam Company Luu Kim Hong, more than 93 percent of workers went to the factory to work on February 19. For many years, the company has provided buses to take and pick up workers back to work before and after Tet, helping the company stabilize its workforce and workers feel secure to travel on safe buses.

General Director Le Mai Huu Lam of Cat Van Loi Industrial Electrical Equipment Manufacturing Joint Stock Company shared that workers returned to work after the Tet holiday with a comfortable and happy mentality. On the first working day of the year, the company organizes lucky money for workers to create a joyful atmosphere, hoping that the new year will achieve more positive results.

According to Mr. Lam, in 2023 the company has made efforts to overcome difficulties. During the Lunar New Year 2024, the company gave full salaries and Tet bonuses, so after the holiday, workers return to work stably. It is forecasted that 2024 will still have many difficulties affecting new orders, the company will focus on implementing public projects and expanding markets in traditional countries such as Cambodia and Japan while simultaneously exploiting the Philippine market and some other countries to ensure jobs for workers.

According to Deputy Director Luong Thi Toi of Ho Chi Minh City Department of Labor, Invalids and Social Affairs, post-Tet production and business activities show positive signs. During Tet, Ho Chi Minh City recorded a number of businesses organizing workers to work through Tet to finish export processing orders and people's entertainment needs during the national holidays.

By February 19, through a survey of 3,247 businesses, the rate of businesses that had resumed operations was about 98 percent, and the rate of workers returning to work was 97 percent. According to businesses, the post-Tet labor shortage rate is below 3 percent mostly in businesses operating in industries that use a lot of labor, such as textiles and garments, footwear, electricity and electronics, and insurance - finance businesses.

Compared to 2023, the rate of workers returning to work after Tet has not changed much. Workers want to have stable jobs and be more attached to businesses this year. On the other hand, production and business activities are showing many positive signs. At the end of 2023, some businesses received production orders in the first 6 months of 2024.

According to Mr. Nguyen Van Hai, Chairman of Binh Tan District Labor Confederation, as of the morning of February 19, 97 percent of businesses in the district have begun to return to operation after the Tet holiday. The number of workers returning to work at these enterprises is 96 percent, the remaining are on annual leave. Other businesses will continue to return to work from February 20 to February 29, including 4 businesses with 50 or more employees.

The proportion of workers at companies including Pouyuen Vietnam Company, Chang Yang Company, KaYuen Company and Proking Tex Company within the Pouyuen Vietnam campus reached 93 percent. The number of workers who have not come to the factory is because they are on sick leave or maternity leave.

From the information provided by businesses, Binh Tan District Labor Federation assessed that this year, the production and business situation of businesses is somewhat better than last year. The rate of businesses returning to operation is high, and the number of workers returning to work is also higher than in the same period.

According to Vice Chairman Nguyen Thai Thanh of the Union of Industrial Parks (IPs) and Export Processing Zones in Ho Chi Minh City, as of February 19, about 98 percent of businesses in export processing zones and IPs in Ho Chi Minh City have resumed operations. The rate of workers returning to work is more than 97 percent, the rest asked for more days off because their hometowns are far away.

To create a good atmosphere on the first working day of the new year, most businesses organize lucky money, New Year's parties and lucky draws with attractive gifts to attract workers back to the factory on time.

Vietnamese rice export price rebounds after Tet

Amid global rice prices witnessing a downward trajectory, Vietnam’s export rice prices began to rise in the early days of February, according to the latest update data given by the Vietnam Food Association (VFA).      

Specifically, Thailand's 5% broken rice dropped by US$13 per tonne to US$628 per tonne, while its 25% broken rice decreased by US$6 per tonne to US$572 per tonne.

Similarly, Pakistan's 5% broken rice also plummeted by US$11 per tonne to US$619 per tonne, while Thailand’s 25% broken rice fell by US$10 per tonne to US$564 per tonne.

In particular, Vietnam’s 5% broken rice increased by US$1 per tonne to US$638 per tonne, while 25% broken rice rose by US$2 per tonne to US$612 per tonne.  

The decrease in price of Thai and Pakistani rice can be attributed to the Thai baht devaluation and limited purchase of raw materials due to rising domestic prices.

Furthermore, demand from Africa and Europe, especially for the basmati rice segment from Pakistan, has become gloomy due to a sharp increase being recorded in shipping rates due to the Red Sea conflict.

Meanwhile, Vietnamese rice has bounced back as the nation is entering the winter-spring rice harvest, which makes up the largest rice crop of the year.

According to industry insiders, Vietnamese rice is expected to grow well this year due to a general shortage of supply sources worldwide.

Currently, major Vietnamese export markets such as the Philippines, Indonesia, China, and several traditional markets have seen high demand for importing Vietnamese rice.

How to grasp opportunities and challenges from major export markets

The EU and the United States will remain Vietnam's major export markets in the year ahead, with plenty of opportunities to increase key export products again amid many challenges in which local businesses need to outline proper orientations aimed at dealing with future issues, according to forecasts made by the Ministry of Industry and Trade (MoIT).      

Tran Ngoc Quan, Vietnamese trade counselor in Belgium and the EU, says there have been some significant bright spots in the EU market, especially Belgium which has forecast that Vietnamese export of many consumer goods will increase this year to these lucrative markets.

Currently, inflation has seen a sharp fall, people's incomes have increased sharply again, energy prices have gradually stabilized, and the supply chain has also gradually been restored.

Economic experts therefore predict that the EU's economy will record slight growth at about 1% this year before seeing stronger growth at 1.5% in 2025.

This also means that the bloc’s trade growth will have a recovery of roughly 1.7% for imports into the EU and about 1.1% for exports from the bloc to other countries, instead of the more than 15% decline seen in its international trade in 2023.

Quan says in addition to price factors, import regulations in 2024 will be increasingly carried out, mainly related to the circular economy, sustainable development, and both clean and green development issues.

Specifically, carbon balance mechanisms directly related to export products such as steel, cement, and fertiliser will start to be applied from June.

​Accordingly, any related businesses must declare relevant EU declarations, which are viewed as complicated and require time to carefully study regulations on food quality and safety for all food product groups imported into the bloc.

This year the EU-Vietnam Free Trade Agreement (EVFTA) has entered its fourth year of enforcement. The tax cuts have created a big difference in the European market between the Vietnamese side and its competitors in several Asian countries, many of whom are hoping to sign a free trade agreement with the EU.

​Therefore, Vietnamese firms need to proactively acquire knowledge and improve understanding of EU standards and regulations in order to take full advantage of the benefits from the EVFTA.

Accordingly, it can be viewed as necessary to focus on improving management, human resource quality, and technological innovation, whilst also quickly building and developing brands as well as establishing long-term business strategies in this market.

​​With regards to the US market, one of the country’s important trade partners and major export markets, forecasts anticipate their GDP growth to reach 1.7% to 2% in the year ahead. This is a very positive signal, showing that the US economy is on the track to recovery, duly creating opportunities to restore growth for many key Vietnamese export products in the coming time, such as textiles and garments, footwear, electronic components, and seafood.

However, according to Do Ngoc Hung, Vietnamese trade counselor and head of the Vietnam Trade Office in the US, because the country is the third largest export surplus country to the US market, only behind China and Mexico, the American side finding ways to reduce imports to protect domestic their own manufacturing industries will have a significant impact on Vietnamese export activities. Currently, the Vietnam Trade Office in the host country is taking a range of measures to support local businesses.

Appreciating the role of counselors and trade agencies in other countries in promoting trade of goods into markets such as the EU and the US, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan requested that these agencies quickly grasp and promptly inform state management agencies and the business community about new standards and laws from international markets, especially following the trends of the year.

To capitalise on opportunities and develop sustainable exports in major markets such as the EU and the US, MoIT representatives recommend that businesses promote diversification of product industries and export markets.

This should be done alongside proactively improving technology so that goods have high added value and deep processing content, while meeting standards of the green economy and circular economy, thus improving labour productivity and actively engage in the global supply chain.

Around US$15 million energy pellet project still on paper

The VND24 billion (around US$15 million) energy pellet project was still on paper, said the Management Board of Quang Binh Economic Zone.

The management board today said that the construction of the energy pellet factory of Korean Dohwa Resource Development Company in Hon La Economic Zone worth VND240 billion project expires on December 31, 2023, but the Korean Company has had no move to complete.

According to the Management Board of Quang Binh Economic Zone, the Dohwa Energy Pellet Factory Project was granted an investment registration certificate by the provincial Economic Zone Management Board on April 8, 2016, with a total investment of VND240 billion. The project is expected to be built on an area of 3 hectares and put into operation in the second quarter of 2017, with the highest capacity reaching 200,000 tons of pellets per year.

After being granted the land, from 2016 until now, Dohwa Quang Binh Resource Development Co., Ltd. has only built a fence around the land and a 2-story house. After 9 years from the date of issuance of the investment certificate and through 4 extensions of the project completion date, the factory has not yet been built but is empty. The land is left for grass to grow and becomes a grazing land, also a place to dump waste.

Director Phan Van Thuong of the Management Board of Quang Binh Economic Zone said that in 2021, Quang Binh Province permitted Dohwa Resource Development Limited Company, under South Korea’s Dohwa Engineering, to delay its energy pellet factory by one year to December 31, 2022. However, in 2023, this unit continues to ask for an extension until December 31, 2023 to complete the factory, but so far there has been no construction activity.

In the meeting between the local government and the company on May 25, 2023, this unit committed to the operation of the factory on schedule in the working minutes. Moreover, if it has not been implemented, the Economic Zone Management Board will report to the Provincial Party Committee and Provincial People's Committee to take back the project according to the present regulations.

Permanent Vice Chairman Doan Ngoc Lam of the People's Committee of Quang Binh Province said that the extension until the end of 2023 is the final extension, and if it has not been implemented up to now, the company has breached its commitments and agreements under land law.

Meanwhile, Chairman Nguyen Duc Hien of the People's Committee of Quang Dong Commune said that initially, people expected the factory to have more jobs and create the development of planting material forests for the factory, but now the factory is just on paper that makes people planting raw material forests frustrated.

The People's Committee of Quang Dong Commune said that leaving the land vacant is causing a loss of land tax and production tax. If the project is completed by 2017 until now, it will create many jobs. However, up to now, the project is still a very wasteful vacant land.

Hanoi encourages firms to sell to foreign distribution networks

Hanoi encourages the city's enterprises to actively participate in global production, supply, and distribution chains and sell their products directly to foreign distribution networks. This initiative builds upon Hanoi's strengths and competitive advantages in exporting goods.

The Hanoi People's Committee recently announced the 2024 implementation plan for the project "Encouraging Vietnamese Enterprises to Participate Directly in Foreign Distribution Networks by 2030".

The project focuses on developing export and import markets for sustainable growth. It encourages the city's enterprises to join global production, supply, and distribution chains and sell their products directly to foreign networks, capitalizing on Hanoi's strengths and export advantages.

In 2024, the city plans to provide market information to over 500 businesses and training and consultancy services to over 100 companies to improve their competitiveness and help them become part of the global value chain.

The project will help more than 100 companies build capacity to engage in cross-border e-commerce and organize more than 100 events to connect local companies with overseas distribution networks.

In addition, the Municipal People's Committee aims to support more than 80 products sold to foreign distribution networks.

To make the plan effective, the People's Committee will coordinate eight working groups responsible for organizing trade workshops, Vietnamese Goods Week events in overseas networks, and helping businesses showcase their products.

The city will also encourage businesses to conduct market research in different countries to understand market requirements and facilitate transactions with distributors.

In addition, the city will conduct business matching between Vietnamese enterprises and distribution networks owned by Vietnamese entrepreneurs living abroad.

Hanoi also proposes to develop policies and mechanisms to encourage the city's enterprises to develop distribution systems in foreign markets.

Export-import turnover reaches 1.41 billion USD during Tet

Vietnam’s export-import turnover reached 1.41 billion USD during the Lunar New Year (Tet) holiday which lasted from February 8 - 14, according to the General Department of Vietnam Customs.

The agency reported that over 1,000 businesses nationwide engaged in import and export activities during the seven-day period. Meanwhile, nearly 10,000 customs declarations were processed in the reviewed period.

During the holiday, Vietnam earned 730 million USD from exports, while spending 680 million USD on imports.

The commodity group of phones and components was the largest earner with 282.8 million USD, making up 38.7% of the total export value during Tet. It was followed by electronic products and components (263.6 million USD) and machinery and equipment (54.4 million USD), accounting for 36.1% and 7.5%, respectively.

Vietnam imported from the Republic of Korea goods with total value of nearly 239 million USD, accounting for 35.2% of the total import value during Tet.

The department said the import-export value of the country totaled 82.56 billion USD from January 1-February 14, up 17.1% compared to the same period last year.

Of the figure, export revenues hit 43.83 billion USD, while imports were valued at 38.73 billion USD, resulting in a trade surplus of over 5.1 billion USD.

Land zoned for social housing expands to over 8,390ha: ministry

The land area zoned for social housing development has increased by 5,031ha from the 3,359ha reported in 2020, said the Ministry of Construction (MoC).

As such, there are now 1,249 land lots covering 8,390ha for building social housing, data show.

The MoC and the State Bank of Vietnam recently submitted a report on the implementation of the plan on building at least 1 million social housing units for low-income earners and workers of industrial parks in the 2021 - 2030 period.

The MoC said many localities have paid attention to zoning land for social housing such as Dong Nai province 1,063ha, Ho Chi Minh City 608ha, Long An province 577ha, Hai Phong city 471ha, and Hanoi 412ha. However, some others haven’t, including the provinces of Ninh Binh, Ha Giang, Lai Chau, Nghe An, Dak Nong, Ninh Thuan, and Dong Thap.

From 2021 to the end of 2023, 499 social housing projects with 411,250 apartments were implemented nationwide. Among them, 71 projects with 37,868 apartments were completed, 127 others with 107,896 apartments had their construction started, and the 301 remainders with 265,486 apartments had their investment policies approved.

Deputy Minister of Construction Nguyen Van Sinh noted thanks to strong directions from the Government and Prime Minister as well as the engagement of ministries, sectors, and localities, significant results have been obtained in social housing development over the recent past.

Many localities are actively attracting investment to build social housing such as Bac Ninh 15 projects with 6,000 apartments, Bac Giang five projects with 12,475 apartments, Hai Phong seven projects with 11,678 apartments, Binh Duong seven projects with 6,557 apartments, and Dong Nai eight projects with 9,074 apartments, he said.

Meanwhile, despite big demand for social housing, investment in this type of accommodation in several localities remains modest compared to the plan’s target for 2025. For example, Hanoi has only three projects with about 1,700 apartments, meeting only 9% of demand. HCM City has seven projects with 4,996 apartments, or 19% of demand, while Da Nang has five projects with 2,750 apartments, at 43% of the need.

Notably, such provinces as Vinh Phuc, Ninh Binh, Nam Dinh, Long An, and Quang Ngai haven’t had any projects launched since 2021, according to the official.

Facing that fact, the MoC has frequently urged localities to promote the development of social housing and publicise the projects eligible for soft loans so as to meet the plan’s target, Sinh added.

Optimistic signs seen in exports of garment-textile sector

Enjoying a rise in orders, the garment and textile sector is optimistic about the completion of its target of earning 44 billion USD in export revenue set for this year.

Currently, the majority of businesses in the industry reported that they have received orders for production until May.

The Garment 10 Corporation JSC said that along with orders until May, the firm is negotiating for orders for following months to fulfil the target of 4.5 trillion VND in revenue and 130 billion VND in profit for this year.

Meanwhile, General Director of the Vietnam National Textile and Garment Group (Vinatex) Cao Huu Hieu said that this year, his firm aims to earn 17.53 trillion VND in revenue, up 3% over 2023, with profit rising 10% to 415 billion VND.

This year, the world economy is projected to see slow growth with a GDP expansion of 2.9%, while total demand for garment and textile products is predicted to reach 714 billion USD, a slight rise over 2023 but still below that of 2022.

Chairman of the Board of Directors of Vinatex Le Tien Truong held that the market will continue to experience uncertainty depending on developments in major markets of the US, EU, China and Japan.

Chairman of the Vietnam Textile and Apparel Association (VITAS) Vu Duc Giang asserted that the recent increase in orders showed that the garment and textile sector is recovering and the market is heating up.

In order to achieve its export target, from now until 2030, the industry will switch its strategy from fast development to sustainable development and circular business. In the 2031-2035 period, it will focus on effective and sustainable growth following the circular economy model, while completing the domestic value chain and holding a higher position in the global supply chain, he said.

Particularly, the sector will concentrate on science-technology and human resources development, and drive high-tech weaving-dyeing-finishing projects to industrial parks, while investing in the production of new and environmentally-friendly materials of natural origin, and boosting the fashion sector, said Giang.

He also underlined the need to continue to diversify markets, products and customers, and increase the application of automation technology in some production lines and speeding up delivery process to meet the increasing demand of the market and customers.

Over 21.7 million USD of credit package for social housing development disbursed

As many as 531 billion VND (21.7 million USD) under the 120 trillion VND credit package for social housing development has been disbursed, according to Director General of the State Bank of Vietnam (SBV)’s Department of Credit for Economic Sectors Ha Thu Giang.

At a conference on credit growth on February 20, Giang said that in 2024, the SBV will continue to direct credit institutions to drastically implement credit programmes and policies under the direction of the Government and Prime Minister, including the 120 trillion VND package, as well as coordinate with ministries and agencies to remove obstacles during the implementation process.

The development of social housing projects will open up opportunities to solve the mismatch between supply and demand and increase liquidity, Vice Chairman of the Vietnam Real Estate Association Nguyen Van Dinh told Lao Dong (Labour) newspaper.

He also pointed out three obstacles that hinder the work are land fund shortage, limited credit supply from the State Budget, and inconsistent construction procedures that prolong the implementation of these projects.  

Dinh suggested that it is necessary to accelerate the planning of social housing development areas to solve the problem relating to land fund shortage.

Regarding capital sources, suitable policies should be issued to support home buyers and ensure output for products.

As for procedures, Dinh noted that the revised Housing Law and the Law on Real Estate Business have added preferential policies for investors as well as simplified procedures and conditions to buy, rent social housing but the revised Land Law and Housing Law will take effect from January 1, 2025. Therefore, it is necessary to speed up the promulgation of decrees approved by the Land Law and Housing Law so that investors can easily conduct procedures and access land and capital, he said.

He also urged drastic instructions and banks' active involvement in facilitating access to the 120 trillion VND credit package.

The Ministry of Construction said 108 social housing projects with over 47,500 apartments are expected to be completed in 2024.

Accordingly, the southern province of Binh Duong registered the biggest number of projects to be completed this year with 20 projects and 4,500 apartments. The northern province of Bac Ninh registered the biggest number of apartments to be completed with 6,000 in five projects. Ho Chi Minh City registered six projects with more than 3,700 apartments and Hai Phong city, eight projects with 3,925 apartments.

The 120 trillion VND support package was first implemented in April last year which aimed to provide loans with rates 1.5 -2% lower than the medium and long-term lending rates in the market to developers of social housing projects and home buyers, following the Government’s Resolution No 33/NQ-CP dated March 11 regarding solutions to remove difficulties and promote the safe, healthy and sustainable development of the real estate market.

Four State-owned commercial banks will join in the disbursement of the package which will run until 2030.

Vietnam targets to build at least 1 million social housing apartments by 2030.

In 2023, a total of 28 housing projects with 13,864 apartments for low-income earners and workers at industrial parks were completed, while 16 other projects were kicked off.

Hanoi’s real estate awaits new supply

House buyers in the capital can pin hopes on new supply coming from infrastructure development this year, which is expected to push up demand for housing in neighbouring localities with reasonable prices and larger land reserves.

Savills Vietnam has considered this a positive factor on the supply side. Infrastructure development projects to build the belt roads No. 3, 4, 5, for instance, will expand the capital's housing market and demand will no longer concentrate on the downtown areas.

Savills' survey shows that in 2024, the Hanoi market will offer about 12,100 more apartments, with as much as 87% of them located in Hoang Mai, Nam Tu Liem, and Ha Dong districts. Additionally, neighbouring provinces like Hung Yen and Bac Ninh are to host approximately 203,000 more apartments between 2024 and 2026.

Do Thu Hang, Senior Director at Savills Hanoi’s research and consulting department, underscored the possible impact brought about by the recently amended real estate business law, amended housing law, and amended land law.

With developers required to complete financial obligations before building their future products, confidence is higher in future buyers, Hang said.

However, facing the market are challenges stemming from limited supply and imbalance between supply and demand, especially in affordable housing. In the fourth quarter of 2023, Hanoi saw the lowest number of new supply in a decade, regarding both low-rise and apartment segments.

According to Hang, given the restricted supply and high prices in the primary market, opportunities for homebuyers may lie in the secondary market, which offers affordability, a wider range of choices, and better legal assurances.

Petrol prices fall in latest adjustment

Retail prices of petrol have been revised down in the latest adjustment at 15:00 on February 22 by the Ministry of Industry and Trade and the Ministry of Finance.

Accordingly, the price of RON95-III was capped at VND23,590 per litre, dropping by VND320 per litre, while that of biofuel E5 RON92 was cut by VND360 per litre to no more than VND22,470.

Meanwhile, oil prices were also adjusted down, with diesel oil and kerosene being sold for a maximum of VND20,910 per litre and 20,920 per litre, down VND450 and VND300, respectively.

However, only the price of mazut oil was adjusted up by VND20 to VND15,920 per kilogram.

In this adjustment, the two ministries decided to use the petrol price stabilisation fund for mazut oil, at VND300 per kilogram.

Since the outset of the year, petrol prices have experienced 8 adjustments, with 5 times up, and 3 times down.

Nam Á Bank to cancel listing on UpCOM on Feb 29

The Hà Nội Stock Exchange (HNX) has recently announced its decision to cancel the trading registration of over 1.06 billion shares of Nam Á Commercial Joint Stock Bank (NAB) starting on February 29.

February 28 is the last trading day for NAB shares on the UPCoM.

The reason for the delisting is that the entire 1.06 billion NAB shares have been approved for listing on the Hồ Chí Minh Stock Exchange (HoSE) with the first trading day scheduled for March 8.

Nam Á Bank was the only bank approved by HoSE to register its shares for listing in 2023.

The bank’s Board of Directors also passed a resolution to terminate the registration of stock trading on the UPCoM market at HNX and approve the first trading day scheduled to take place on the HoSE.

On the stock market, NAB shares traded at VNĐ16,600 a share (US$0.68) at 13:34 local time on Wednesday, up nearly 110 per cent from the beginning of 2023.

Regarding its financial performance, Nam Á Bank has released its business results for the year 2023, with its primary revenue source being net interest income, reaching over VNĐ6.6 trillion. The amount increased nearly 30 per cent year-on-year. 

Last year, the bank allocated a credit risk provision of VNĐ847 billion, approximately the same as the previous year. After deducting expenses and taxes, the bank achieved a profit after tax of more than VNĐ2.6 trillion, representing a 45 per cent gain from its performance in 2022.

By the end of 2023, Nam Á Bank's total assets had grown by 18 per cent since the beginning of the year to nearly VNĐ210 trillion. Of which, customer loans accounted for over VNĐ141.4 trillion, reflecting an 18 per cent increase.

In terms of loan quality, its non-performing loans amounted to nearly VNĐ3 trillion, a significant surge of nearly 54 per cent compared to the start of the year. 

SPS Vietnam works with German partner in providing food safety information for local firms

The Office of the Vietnam Sanitary and Phytosanitary Notification Authority and Enquiry Point (SPS Vietnam) on February 22 signed a memorandum of understanding (MoU) with the Tentamus Innovation Hub of Germany’s Tentamus Group, under which the two sides will cooperate in providing technical expertise on food safety control for Vietnamese exporters.

Accordingly, the two sides will support and coordinate with each other to effectively notify contents related to hygiene, epidemiology and plant and animal quarantine to Vietnamese manufacturers and exporters, while answering their questions in order to support Vietnamese products to meet technical standards and enable them to enter markets that require high technical standards.

The SPS Vietnam Office will launch a software system to provide notifications on contents and regulations related to hygiene, epidemiology and plant and animal quarantine from WTO members, along with information on the names of active ingredients whose residue levels often exceed the maximum allowable levels of some export markets to businesses.

It will also supply consulting services to businesses to help them get better understanding and meet the requirements of import markets.

Meanwhile, the Tentamus Group will provide a software system transferring information about drafts and notices of the Vietnam SPS Office from WTO member countries to Vietnamese exporters/manufacturers in an efficient manner. The group will also participate in seminars and conferences to provide information and share solutions related to issues of food safety and animal and plant quarantine.

Tentamus Group General Director Jochen Peter Zoller said that the firm aims to help supermarkets in the EU as well as retail chains around the world find safe products from Southeast Asia, including Vietnam.

He said that the group has developed a software system to update information on pesticide residue levels in markets to Vietnamese agricultural product exporters, thus helping them meet the requirements from these markets.

SPS Vietnam Director Le Thanh Hoa said that Vietnam, as a leading manufacturer and exporter of many agricultural products such as peppercorn, rice and coffee, has high potential to export fruits and vegetables to markets around the world.

However, the lack of information about food safety, and animal and plant quarantine measures as well as technical standards of importing countries have caused  difficulties for Vietnamese producers and exporters, Hoa said, stressing that the partnership will assist domestic firms to adjust their strategies and activities in the field effectively.

Tentamus is a global testing company with presence in Europe, the UK, Israel, China, Japan, India and the US. The Tentamus Group is accredited and licensed to test, evaluate and consult on all human-related products.

VinFast to supply 600 EVs to three Indonesian businesses

VinFast, Vietnam’s first electric vehicle (EV) manufacturer, on February 22 announced that it has just signed a memorandum of understanding (MoU) with three Indonesian business clients to provide 600 EVs for their corporate fleets.

The MoU, which was signed at the Indonesia International Motor Show (IIMS) 2024, where VinFast had earlier introduced a complete line-up of right-hand drive electric vehicles, opens up an avenue for the Vietnamese EV maker to tap into the strong potential of the local market, and promote the green transportation development in the region.

Accordingly, VinFast will provide 600 EVs for three Jakarta-based companies, namely PT. Energi Mandiri Bumi Pertiwi, PT. Sumber Amarta Jaya and PT. Teknologi Karya Digital Nusa Tbk.

The first two EV models in A & B-SUV segments, that are opened for order, and soon to be launched on the Indonesian market, will serve the companies’ goal of expanding their respective corporate fleets, and cultivate the growth potential of the local green mobility industry.

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