Hanoi will spend 437 trillion VND (18.3 billion USD) on housing development in the 2021-2025 period.

Under a housing development plan between 2021 and 2025 which has been approved by the municipal People’s Committee, the city targets the average housing floor area per person to be 29.5 sq.m. The size of dwelling in the urban areas is 31 sq.m per person and 28 sq.m per person in rural areas.

The capital city also plans to develop 0.55 million sq.m of floor areas for resettlement purposes and speed up the renovation of old buildings, especially those deemed dangerous for living.

Regarding commercial projects, the city will strive to complete 109 projects that are capable of finishing in 2021-2025  with 19.4 million sq.m of floor.

Hanoi will continue to remove makeshift houses and raise the permanent housing rate in the city to 90%. 

Of the total investment of 437 trillion VND, 5.8 trillion VND will be used for social housing, resettlement housing projects, and apartments upgrading. The investment will be sourced from the city’s budget.

The city will also mobilise social resources for the development of commercial houses and other real estate projects.

The municipal People’s Committee requested agencies comply with the city's housing development plans to ensure a balance between housing supply and demand as well as fulfil the set targets.

Legal documents will be reviewed to remove difficulties and problems relating to housing and construction investment management of infrastructure works, it said.

The city will also issue preferential mechanisms and policies to support construction investment for technical and social infrastructure works in social housing and resettlement areas towards civilisation and modernity in order to ensure the quality of life and affordable for local residents.

Gov't bodies asked to coordinate in prevention, control of money laundering, terrorist financing

Prime Minister Pham Minh Chinh has signed Decision No. 64/QD-TTg dated February 8, 2023, promulgating the regulations on coordination among ministries, ministerial-level agencies, and governmental agencies in prevention and control of money laundering and terrorist financing.

The regulations stipulate the principles, form, content, and responsibility for coordination and information exchange among ministries, ministerial-level agencies, and governmental agencies in the prevention and combat of money laundering and terrorist financing.

Accordingly, Government bodies must ensure close and effective coordination based on their functions, tasks, and powers. The coordination must be compliant with the guidelines and policies of the Party and the laws, and the international treaties that Vietnam has joined and signed in the field of prevention and control of money laundering and terrorist funding.

The coordination must be carried out regularly and timely, ensuring guidelines are effective. The coordination must also ensure compliance with the law on the protection of State secrets. The government bodies only use information that they are provided for professional work and legal work when eligible.

The coordination can be in the form of official letters, email, phone, fax, meetings, or inspection.

The government bodies can exchange information, conduct communication activities and oversee the implementation of regulations on the prevention and control of money laundering and terrorist financing.

Hotlines can be established to timely receive and handle information on the potential for terrorist funding.

UK’s joining CPTPP will benefit agreement members: Vietnamese minister

The UK’s participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will bring about wonderful trade and investment opportunities to each CPTPP member, while affirming the deal as a model of economic cooperation in the region in the 21st century, a Vietnamese official has said.

During his phone talks with Kemi Badenoch, Secretary of State for the Department for Business and Trade of the UK, on February 23, Minister of Industry and Trade Nguyen Hong Dien stressed that Vietnam will continue its coordination with other CPTPP members to soon conclude the negotiations on the UK’s joining the agreement.

For her part, Badenoch said joining the CPTPP is one of her top priorities as the Secretary of State for the Department for Business and Trade of the UK, and thanked Vietnam for its cooperation and support for the process.

Vietnam’s hosting the next round of talks in Phu Quoc late this month will contribute to the accelerating the process, especially in the context of the two countries celebrating the 50th anniversary of the bilateral diplomatic ties this year, she noted.

Badenoch expressed her hoped that CPTPP members and the UK will handle the pending issues during the meeting to end the negotiations in principle.

After the four rounds of talks held online in 2022, the next meeting is scheduled for February 27 in Phu Quoc, off the Mekong Delta province of Kien Giang.

ATM Online app launched

Fintech company ATM Online has officially launched its ATM Online app that offers customers online installment-loans.

The company, which has been in the Vietnamese market for five years, said the app is now available on Android and will be available on iOS by the end of the first quarter of this year.

ATM Online app provides all services such as registering for a loan with simpler procedures. It takes less than two minutes to fill out all information, 15 minutes for new customers to get a loan and five to seven minutes for existing customers to get a loan.

Using the new app, customers are able to easily track their payment and transaction history. E-contracts will be available on the app.

New customers can download the app to have a loan from 2 million VND (80 USD) to 6 million VND (24 USD) within three months with a 14-day grace period. Within 14 days after receiving the disbursement amount, customers have the right to consider their loan. In the event of a change of mind, the customer can completely refund the disbursed amount without paying interest, consulting fee or service fee.

With this programme, ATM Online and its partners want to make sure customers feel comfortable using the service. The 14-day period is considered a grace period to experience the product.

ATM Online is a financial technology company and a member of TM Online with headquarters in Singapore and is in three other markets including Vietnam, the Philippines and Sri Lanka.

In Vietnam, ATM Online was established in October 2017 with the brand name ATM Online. Targeting customers with low incomes, the company is a pioneer in applying technology in consulting and offering small online loans with a value of 2 million VND to 20 million VND (800 USD) for a period of up to eight months.

In more than five years of operation in Vietnam, more than 76% of customers after applying for a first loan have returned to use the service provided by ATM to apply for a second loan. The rate of customers continuing to apply for third and fourth loans is up to 80%.

Samsung – evidence of Vietnam-RoK relation development: official

Investment cooperation of Samsung Group in Vietnam is a clear embodiment of the fine development of the relationship between the Republic of Korea (RoK) and the Southeast Asian country.

The statement was made by Chairman of the Party Central Committee’s Economic Commission Tran Tuan Anh at his reception in Hanoi on February 24 for a working delegation of the Korea-based group led by Choi Joo-ho, President of Samsung Vietnam.

Appreciating the role of Samsung as the RoK’s largest investor in Vietnam, Anh affirmed that its placing of its largest research and development centre in Southeast Asia in Hanoi holds not only strategic significance for Samsung's investment activities in Vietnam but also great significance for Vietnam's foreign investment attraction activities, as well as bilateral cooperation in the context that the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the European Union - Vietnam Free Trade Agreement (EVFTA), and the Regional Comprehensive Economic Partnership (RCEP) have entered into force.

He proposed Samsung promote research - development activities and production and export of key products to the international market, step up cooperation in technology transfer, maintain investment in supporting industry and smart technology, and boost collaboration in research.

Choi thanked Vietnamese agencies for helping Samsung overcome difficulties caused by the COVID-19 pandemic, and creating a favourable environment for businesses’ operations.

Appreciating Vietnam’s socio-economic development orientations and achievements, he affirmed that Samsung will continue accompanying and cooperating closely with the country to contribute more to the bilateral relations.

Hai Phong works towards target of luring 7.5 million visitors in 2023

The northern port city of Hai Phong will strive to welcome 7.5 million visitors in 2023 by strengthening connectivity with domestic and foreign localities in developing tourism products to meet the demand from major markets.

Vu Huy Thuong, Vice Director of the city Department of Tourism, said that in 2023, the city will foster links with localities in the Red River Delta region and those that have had direct air routes with Hai Phong such as Da Nang, Khanh Hoa and Phu Quoc.

The city will promote the development of its strong tourism products such as sports and cruise tourism, while coordinating with airlines and travel firms to exploit the markets of Republic of Korea and Japan, and build exclusive products for these markets.

Vice Chairman of the People’s Committee of Hai Phong Le Khac Nam said that tourism is one of the key economic pillars of the city. In order to turn Do Son and Cat Ba into international tourism centres, the city will popularise the destinations in major domestic and foreign markets, while focusing on designing new, unique and attractive products and enhancing the quality of services.

Nam also pointed to the need for the city to build a strong tourism trademark and a contingent of high-end hotels eco-tourism sites and resorts to lengthen the stays and and increase spending of visitors.

According to the city Department of Tourism, Hai Phong currently has 576 accommodation facilities with 15,763 rooms, including seven five-star, 13 four-star and 21 three-star hotels.

Hai Phong, dubbed as “The City of Red Poinciana” after the flower being grown all around the city and how it brilliantly blooms during summertime, has long been a popular tourist destination in the north. Do Son and Cat Ba are major tourist hubs of the city.

With 367 islands, many beautiful beaches, and a diverse and rich ecosystem, Cat Ba archipelago in Cat Hai district is an attractive destination to both domestic and foreign tourists all year round. Cat Ba welcomed 10,900 tourists during the Lunar New Year (Tet) holiday (January 20 – 26), up 72.9% year-on-year.

Real estate keen to explore AI tech

Although it is too early to say that AI systems like ChatGPT will become a mainstay in the real estate sector, brokers believe that they could transform the market in the coming years.

If before, real estate agents had to write plenty of descriptions of the house they wanted to sell, now ChatGPT could help them do it in seconds.

Hoang Duc, a private real estate broker in Ho Chi Minh City, wants to advertise for sale a 4-bedroom house in Thu Duc city. With just entering a few keywords, an AI chatbot tool can create an extremely attractive description. Duc said that it would have taken him an hour or more to write such a paragraph himself.

According to Tong Duong, CEO and founder of Homenext Corporation, more people in his area of expertise are wondering if AI will replace humans at some tasks sooner rather than later. “I think, if ChatGPT or a similar platform is officially released in Vietnam, it will become a tool which will impact education, business, and technology,” Duong told VIR.

According to Duong, from a business perspective, people will either quickly adapt and control the new ways of working, or be replaced or eliminated because of their slow process to adapt.

In less than two months, ChatGPT has sparked discussions about the potential to disrupt other industries, from publishing to law. It is made up of large amounts of online data, to answer users’ questions. It can write essays, stories, song lyrics, and research paper summaries, and some CEOs are using it to write emails or do accounting work.

Although not yet used in Vietnam, the system is currently being discussed enthusiastically throughout the real estate market, from investors and professionals to brokers and end-users. ChatGPT is currently free, but owner OpenAI is considering a $42 monthly fee. Real estate broker Duc said he is willing to pay hundreds of US dollars a year for a tool like this.

However, for questions surrounding the Vietnamese real estate market, this chatbot has revealed certain limitations. Although the product from OpenAI does not officially support Vietnamese users, the words and expressions of the chatbot are still relatively easy to understand. For those who only need to find basic information, the data it provides is relatively accurate.

However, for experts or those who want to look up more detailed information, results are deemed unsatisfactory. Data that ChatGPT owns is also limited to 2021 and is therefore not suitable when looking at current market prices.

Although OpenAI has updated calculation capabilities, many users acknowledge that the software incorrectly answers basic calculations.

According to Daniel Vu, a private broker, all advice is for reference only, even if it is advice from an expert.

However, he said that he highly appreciated ChatGPT’s ability to create documents. He thinks that if it is to write documents or contracts, this chatbot could completely perform well. Even the team in the company’s marketing department could use it to support ideas and any content creation.

Water suppliers riding high in 2023

The outlook for water suppliers is optimistic this year as water prices are expected to grow on the back of mounting demand.

Nguyen Ngoc Diep, Chairman of the Vietnam Water Supply and Sewerage Association (VWSA), reveals that water suppliers are categorised into two groups: one comprising companies that run water distribution systems and the other including those that operate water treatment plants.

Companies in the first group fall under the management of provincial authorities, thereby having a monopoly on water distribution. Their performance depends solely on the water loss ratios of their systems and the population density of their localities.

Those companies, according to the securities firm SSI, are forecast to have their revenues increase by 8% this year, supported by a 6% rise in total water consumption and a 3% rise in water prices.

For companies of the second group, VWSA estimates the total capacity of their water treatment plants at about 11.5 million cu.m per day, against the total consumption of around 8.6 million cu.m per day in 2023, up 6% year-by-year.

SSI forecast that water usage would continue to rise by 12% annually in Hanoi between 2025 and 2030 and about 8% in HCM City during the period, adding to water suppliers' revenues.

Meanwhile, water suppliers are operating more efficiently thanks to regular system upgrades and the installation of advanced water leak detectors. On such a ground, water loss ratios are expected to fall to 16.5% this year, from 17.5% in 2022, raising their profit margin by 1.1%.

SSI also forecast that water prices would climb by around 5% in Hanoi and HCM City, and by 3% in Binh Dinh province this year. However, the prices would remain unchanged in Hai Phong city and Dong Nai province.

Additionally, price rises would be more evident in industrial parks as a result of the growing demand for basic utilities among FDI investors.

The securities firm VCSC shares this view, saying that water consumption would soar in Binh Duong province as several new industrial parks are expected to come into operation between 2022 and 2025.

Two of the industrial parks are the Industrial Park VSIP III at Tan Uyen district and Cay Truong Industrial Park in Bau Bang district, which covers an area of 1,000ha each and are expected to give a huge boost to water prices in the province.

SSI believes that M&A activities in 2022 among water suppliers would add to their operational success this year, allowing them to outperform the market's average growth.

For instance, Binh Duong Water Environment JSC took over Can Tho Water Supply - Sewerage JSC and Gia Tan Water Plant to expand its water distribution systems to rural areas in the two provinces, significantly improving its market reach.

However, good news goes only as far. SSI is concerned that the enactment of the Law on Water Resources and Environment in 2023 would incur higher costs to water suppliers because the environmental taxes imposed on them will be recalibrated from capacity-based to output-based taxes.

Such a rise in the environmental taxes would, under SSI estimation, reduce their profit margins by between 0.2 to 0.4%. Fortunately, these slight drops in profits would be overwhelmed by the rise in revenues and water prices, resulting in strong positive growth eventually.

According to the Ministry of Construction, Vietnam had 750 water plants in 2022 with an aggregate capacity of 11.2 million c.m per day. On the demand side, household consumption rose by 5% year-by-year and industrial consumption by about 8%, against an annual rise of 3% in water prices.

Domestic sugar under pressure on home turf

Domestic sugar producers have been facing mounting pressure in competition with imported sugar in recent years. 

According to the Vietnam Sugar and Sugarcane Association (VSSA), there has been a surge in supply since the beginning of 2023 while retailers were sitting on a large stockpile left over from the previous year. It has resulted in an excess in supply in the market, which was already saturated and hindered by low demand. 

The VSSA said in a recently released report that the country's domestic supply last year was estimated at 2.8 million tonnes, significantly higher than demand, which was estimated at 2.1-2.3 million tonnes. The association expected the surplus to last for the foreseeable future as imported sugar continued to trickle in. 

For the long term, however, the association said there is a risk of market disruption should the surplus prevail, which will likely force domestic producers to cut prices, even lower than production costs to compete or reduce buying prices from sugarcane farmers. 

Industry experts said imported sugar often had the upper hand due to lower prices. 

Ninh Thị Hue, a merchant at Tan Hiep Market in the southern city of Bien Hoa, said her customers often prefer imported sugar while buying in large quantities. For example, her quotes for imported sugar were at around 20,000 VND while domestic brands typically were at 24,000-25,000 VND per kilogramme. 

While being sold at a higher price point, there was not much of a difference in quality between imported and domestic brands. This has pushed most consumers, who require large quantities, to go for imported sugar. 

Industry experts have long voiced their concern over a lack of strong domestic brands, as well as an inadequate distribution network to reach consumers. 

A number of domestic producers, however, had taken the initiative to build their own network by collaborating with major retailers and e-commerce platforms. 

He said his firm has started expanding on popular e-commerce platforms such as Lazada, Tiki, Sendo and Shoppee in recent years. 

He said Vietnamese consumers still have a preference for domestic sugar but it's crucial for producers to introduce new lines of products and bring down prices to compete against imported sugar.

Viet Nam’s banking brands post high growth: Brand Finance

Vietnamese banking brands posted an overall growth of 31.3 percent in brand value, amounting over US$2 billion compared to their 2022 positions.

The above figures are part of the Brand Finance's Banking 500 2023 report, which ranks the world's top 500 most valuable and strongest brands in the banking industry.

Almost all the 12 Vietnamese banking brands listed in the rankings improved their positions, with Vietcombank taking the lead among Viet Nam's banks, ranking 137th. 

It was followed by Agribank at 159th and BIDV at 161st while VIB made its first ranking appearance in the list (492nd).

Brand Finance's research indicated that recovered revenue and revenue forecasts were important drivers of the impressive growth. 

Overall, Vietnamese banking brands recorded improved business performances in 2022, underpinned by the nation's strong credit growth of nearly 13 percent, as well as remarkable economic recovery that is reflected by a GDP growth of 8 percent–its fastest pace in 25 years.

Managing director of the Asia Pacific of Brand Finance Alex Haigh commented that Vietnamese banking brands are rapidly adopting digital banking as a primary business and becoming leaders in this space regionally. 

For instance, Techcombank (brand value up 46.7 percent to US$1.4 billion), the second-fastest growing Vietnamese banking brand in our study, is embracing digital banking, which has resulted in significant growth of its retail banking unit, he noted. 

He expressed his belief that Viet Nam's banks are ready for consolidation in the next few years–given that the nation has many brands relative to its scale–to leverage efficiencies and bolster their strength. 

If this proceeds, it is important that these brands play a central role in the process and that the resulting combined entities identify the individual brands that will deliver maximum value, he added.

Enterprises accelerate investment to anticipate new opportunities

As 2023 is forecast to be a difficult year driven by increasing inflation and economic recession at the global level, enterprises in Vietnam have actively built scenarios to adapt to market recovery and anticipate new business opportunities.

According to the General Statistics Office (GSO), Vietnam attracted foreign direct investment (FDI) worth 1.69 billion USD as of January 20 this year, down 19.8% annually.

However, in the month, local authorities granted licences for 153 new FDI projects worth 1.2 billion USD, up 48.5% in number and 3.1 times in value.

This is considered a new signal that opens up more chances for businesses in 2023.

Duong Nguyen Thanh, deputy director of Haast Industries Vietnam Co., Ltd, said that the number of new electronics orders in the world has declined sharply since late 2022, mainly in the consumer electronics sector.

The decrease is affecting Haast’s operation and output. However, the factory has taken different measures to ensure flexible adaptation such as strengthening connectivity with existing partners, seeking new customers to maximise production capacity, and increasing the governance capacity and human resources quality to meet high requirements of choosy markets.

Trinh Van Quang, Vina CPK-Project Development Manager, said that his company is investing in building Ba Thiet II industrial park in Binh Xuyen district in the northern province of Vinh Phuc with an area of 308 hectares.

At present, the occupancy rate at the cleared area reaches 100% with many large enterprises from the Republic of Korea, Japan, the US, Sweden, and Taiwan (China), which operate mainly in high-tech and environmentally-friendly production and business industries.

Brand positioning, proper planning needed to capitilise on urban tourism potential
     
Urban tourism has the potential to contribute to the socio-economic development of a locality significantly but to capitalise on this potential, experts have identified strong brand positioning, proper planning, and development as key areas to focus on.

In Viet Nam, the urbanisation rate has reached nearly 40 per cent, with over 860 urban areas.

Cities are the driving force of socio-economic development, facilitating economic restructuring towards industrialisation and modernisation.

However, not all cities are tourist destinations, even though most have outstanding tourism potential.

Viet Nam has numerous urban areas, especially coastal cities or key tourist destinations like HCM City, Da Nang, Nha Trang, Phan Thiet, Vung Tau and Phu Quoc.

To improve tourism competitiveness and attractiveness, cities with strengths in tourism development must create and position a brand. According to Nguyen Thu Hanh, President of the Science Union for Sustainable Tourism Development, brand positioning is one of the important strategies for cities with a focus on tourism.

Vung Tau City, for example, is rich in advantages such as convenient traffic locations, seaports, a large oil and gas centre, a four-season climate, and beautiful beaches.

This urban area also converges different cultures through religious monuments, churches, communal houses, and pagodas.

Hanh describes Vung Tau as a "smart, modern and dynamic coastal city" with a system of industrial parks, high-tech zones, event centres, festivals, entertainment, and shopping operating on a digital platform.

Phu Quoc, located on the southwest coast, is considered a centre of eco-tourism and high-class beach resorts. With around 150km of coastline, the length of beaches suitable for tourism development is about 50km.

Sustainable planning and development

In recent years, experts have warned that coastal cities are at risk of sea level rise and unusual natural disasters due to climate change.

In response, architects Nguyen Viet Huy and Do Dinh Trong, from the Ha Noi University of Civil Engineering, have proposed measures to minimise the harmful effects of natural disasters and develop stable technical and economic-tourism infrastructure systems that can adapt to climate change.

To achieve this, it is necessary to think differently and have a more open and positive view of climate change. Building construction plans should be based on integrated planning that promotes the socio-natural potential of the region while adapting to climate change.

Additionally, rational exploitation and strengthening solutions are essential to manage and use freshwater resources and protect coastal lands, sea mouths, and estuaries.

Associate Professor Pham Trung Luong, Vice President of the Viet Nam Association for the Protection of Marine Resources and Environment and a member of the National Planning Advisory Group, emphasises the importance of promoting sustainable marine tourism urban development.

To achieve this, he recommends reviewing and adjusting the planning of existing sea tourism urban areas, especially for coastal spaces.

Separate services, shopping, and entertainment areas should be planned with little impact on the lives of residents, ensuring that tourism activities can take place 24/7, thereby promoting the development of the urban night economy, in which tourism will be the core. 

New way out for medical investment

While the problems related to the legal framework about joint venture and private investment engagement to be solved in the newly-adopted amended Law on Medical Examination and Treatment, bringing about new opportunities for businesses and health facilities, the enforcement will be the answer for long-year expectations.

The Presidential Office on February 3 announced the promulgation of the amended law, adopted by the National Assembly at its extraordinary session. One of the new key changes in the law is the legalisation of joint venture and private investment engagement in hospitals, making it the first-time adjustment in the field. This is a long-waited solution among not only hospitals, but also businesses because a lack of fully legal framework for this activity has caused many difficulties for them.

Dr. Nguyen Trong Khoa, deputy head of the Ministry of Health’s (MoH) Department of Medical Examination and Treatment said, “We have not had a fully legal framework for private investment engagement in medical devices and machines. We have not taken into account depreciation of equipment during the building of services fees, so machines at hospitals have been under the placement model, or borrowed from contractors winning chemical bids, thus causing many difficulties for them.”

The doctor elaborated that the amended law makes a change in the structure of service costs that will include four factors: direct cost of medicines and bioproducts, staff salaries, management costs, and depreciation of equipment.

State-owned hospitals and businesses are waiting for the changes to be fully come into effect from early 2024 to get out of the impasse.

Cho Ray Hospital in Ho Chi Minh City, one of top state-owned hospitals in Vietnam having over 3,200 sickbeds caring for thousands of outpatients each day now has most of its testing system being under the placement model, or borrowed from winning chemical contractors.

Cho Ray and Le Thuy are among those facing a lack of legal frameworks in private investment engagement activities in such devices. According to statistics from Vietnam Social Security, in state-owned health facilities in 45 cities and provinces, more than 2,000 medical devices being used are borrowed or those under the placement model of winning contractors of chemicals and bioproducts.

Members of the European Chamber of Commerce’s (EuroCham) Healthcare Forum and its sector committees are interested in public-private partnerships (PPPs), including machine installation models in hospitals. Obviously, the new law is important to them because Vietnam’s medical devices and diagnostics market reports double-digit annual growth, with 90 per cent made up of imports.

EuroCham representing the voice of multinational corporations like B. Braun, Roche, Abbott and others many times proposed the government to build a more appropriate legal framework that will drive PPPs to their potential.

Now there will be one year ahead for authorised agencies to work on documents guiding the implementation of the law and soon issue them to ensure successful enforcement from early 2024.

The MoH expects that a circular on customised medical examination and treatment cost will be issued in the first or second quarter of this year, adding the third factor – management cost to the medical service cost – once it gets a green light from the government.

Dr. Khoa of the Department of Medical Examination and Treatment said the next step is for the MoH and relevant agencies to compile guiding documents. The adjustment will be made under roadmap, especially management cost, and depreciation of medical equipment from now to 2025.

Mekong delta mobilises to support miscalculating king orange farmers with a glut
     
Localities in the Cuu Long (Mekong) Delta are joining hands to consume the huge volumes of unsold king oranges grown by farmers in Vinh Long and Hau Giang provinces amid oversupply.

Nguyen Van Tam, head of the Sub-Department of Agriculture and Rural Development of Vinh Long’s Tra On District, said before Tet (Lunar New Year) the oranges fetched VND8,000-10,000 per kilogramme, but farmers waited to sell hoping for higher prices later as happened in previous years.

But the price has not increased after Tet while the harvest has been huge this year, causing prices to drop further and sharply, he said.

According to the Vinh Long Province Farmers Association, traders buy 200 tonnes of king oranges from farmers every day at VND1,500-4,000 per kilogramme depending on size, with overripe ones only selling for VND1,500-2,000. At such low prices, farmers face heavy losses, it said.

Nguyen Van Liem, deputy director of the Vinh Long Department of Agriculture and Rural Development, said an estimated 50,000 tonnes need to be sold.

Local authorities and the Farmers Association have managed to help farmers sell some of their stocks, including on e-commerce platforms, he said.

The province has also called for support for farmers, he said.

GO! and Big C supermarket chains rolled out a programme called “Accompanying farmers” on February 15 and hope to buy around 25 tonnes of king oranges at VND10,000 a kilogramme directly from farmers and co-operatives.

The supermarket chain is selling the oranges at no-profit prices of VND10,900 in the south and VND12,900 in the central and Central Highlands regions, she said.

District 5 in HCM City is also carrying out a programme to support the orange farmers, with local individuals and businesses ordering nine tonnes of the fruit.

The Student Support Centre of Can Tho is coordinating with the city Labour Cultural House to support farmers. They will buy oranges directly from orchards at VND4,000-4,500, and hope to consume around 14 tonnes by February 19.

Volunteers are also helping farmers sell their fruits in HCM City and elsewhere.

Speaking with Cong Thuong (Industry) newspaper, Nguyen Nhu Cuong, head of the Crop Production Department, attributed the oversupply to a rapid increase in cultivation area in recent years while outlets remain limited since the variety of orange is mainly consumed in the domestic market and only to make juices.

His department would coordinate with localities to try and prevent a repeat of this situation in future, he added.

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