Experts gave recommendations for HCM City to restore aggregate demand and promote growth in the new context of this year.

HCM City can achieve its 2024 gross regional domestic product (GRDP) growth target of 7.5-8 per cent by focusing on boosting aggregate demand and expanding export markets, according to a new study.

The study published on Thursday (January 5) named "Macroeconomic Report: 2023 Results and 2024 Forecast" was conducted by the Statistics Office of HCM City and the University of Economics of HCM City (UEH).

Dr. Hồ Hoàng Anh, from the HCM City University of Economics, a representative of the research team, said that the city's GRDP is gradually approaching potential GRDP. This achievement also proves the city's economy is recovering steadily after recent difficult times.

In 2023, the city’s GRDP grew 5.8 per cent, lower than the year’s target by 1.7-2 percentage points.

As a major economic hub of the country, the city's economy always achieves growth rates higher than the national average and creates jobs for millions of workers from all provinces and cities. Some indicators can indirectly show the recovery speed of aggregate demand in the city, such as total retail sales of goods and consumer service revenue, along with transportation and warehousing revenue.

Last month, the city set the target growth at 7.5-8 per cent for this year, which is only possible if the global economic recovery speeds up and the city simultaneously implements multiple policies to boost aggregate demand, experts from UEH said.

Aggregate demand is the total value of goods and services produced and consumed in an economy during a specific period.

By analysing 2023 quarterly performance indicators, especially consumer spending, exports and imports, the research team assessed that HCM City’s economy had been steadily recovering.

However, the global outlook is not so positive, as most reputable research institutes speculate that global economic recovery will continue to be sluggish in 2024 with very slim chances for a breakthrough due to global supply chain disruption resulting from political conflicts.

The International Monetary Fund (IMF) has forecast Việt Nam's GDP growth in 2024 at 5.8 per cent, which is a high growth rate compared to other countries in the region. Meanwhile, the Vietnamese Government targets GDP growth in 2024 at 6-6.5 per cent.

The likelihood of American and European banks lowering their interest rates in 2024, especially in the first half, is low.

Foreign trade with the US and Europe, the city’s biggest partners, is expected to increase modestly this year while trade with China might even decrease, resulting in more challenges for the city’s exports, the study said.

Experts say that some important policies that HCM City's government needs to pay more attention to are supporting and encouraging the city's business community to find partners and expand export markets to countries other than China and the US.

At the same time, diversifying export markets will help the City's export sector minimise cyclicality and grow more stably.

To boost demand, the research team suggested the city issue policies to promote consumer spending, business and household investments, and exports.

Specifically, the city authority needs to expand exports to markets such as Japan and South Korea.

India, accounting for just 1.41 per cent of the City’s exports last year, is also a potentially lucrative market to expand to as its economy is growing steadily.

These policies, combined with solutions to expedite public investment disbursement, resolve bad debts, increase the banking system’s liquidity and improve credit access, will speed up the city’s economic recovery in the second half of 2024, UEH experts said.

Businesses are also optimistic about this year, as 66.7 per cent of state enterprises, 65.3 per cent of private firms and 65.2 per cent of foreign companies have posted positive 2024 forecasts.

In addition, the city should continue to reform its administrative management apparatus in the direction of streamlining procedures to minimise time and costs for people and businesses in registering investment, production and business, especially in the construction and real estate sectors.

In short term, HCM City can research, classify and rank real estate projects in order of priority and focus resources on projects with the most potential to create the greatest impact in the future. – VNS

Cashew industry sees bright global prospects despite challenges

Việt Nam’s cashew industry eyes export growth despite global headwinds, according to insiders.

According to the General Department of Vietnam Customs, the country exported 641,000 tonnes of cashew kernels for US$3.63 billion last year, year-on-year increases of 23 per cent and 17 per cent.

The US was the largest market, followed by China and Europe.

Notably, China has increased purchases in recent months, in certain months even surpassing the US as the largest importer.

Thái Nguyễn Huệ Chí, an expert at the Vietnam Cashew Association, said in the past Chinese consumers often used other nuts such as almond and walnut but have consumed more cashew due to its lower prices.

Vietnamese cashew is nutritious, delicious and nutty, and so has become popular and is increasingly used as a cooking ingredient in the Chinese market, he said.

Last year shipments to key markets like Germany, the UK, the United Arab Emirates (UAE), and Saudi Arabia saw a significant uplift, according to the association.

Exports to the UAE surged by 46.6 per cent, while Saudi Arabia witnessed a 40.1 per cent increase.

Industry insiders anticipate cashew inventories in major consumer markets like the US and EU to dwindle after the festive holidays, sparking a rise in import demand in the coming months.

However, the industry faced a wake-up call recently with quality concerns raised by two European and US associations.

In response, the industry has doubled down on quality control, food safety and hygiene measures to safeguard the reputation of the Vietnamese cashew brand.

Phạm Văn Công, the association’s chairman, said maintaining the quality of exports is a vital factor for cashew producers and exporters and the industry itself amid increasing global competition.

Việt Nam has accounted for a whopping 80 per cent of global exports for 16 years now, the association said.

The country also has the world's most advanced cashew processing equipment and technologies, it added.

The first half of 2023 was a difficult period due to geopolitical crises, monetary tightening by central banks globally, inflation, lower demand in key markets, and consumers tightening their spending.

So the association lowered its export target for the year to $3.05 billion, $50 million and $750 million lower than its own previous target and the one set by the Ministry of Agriculture and Rural Development.

Exports rose significantly since August and especially in the last quarter, and the industry expects to see this continue in 2024, the association said.

Bạch Khánh Nhựt, the association’s deputy chairman, said the global cashew market is forecast to grow by 4.6 per cent a year in 2022-27.

The global trend towards vegan and plant-based diets has increased demand for nuts and nut-based foods, including cashew.

Vũ Thái Sơn, chairman of Long Sơn Group, said the cashew industry must also keep abreast of the current green trend and meet consumer demands and the more stringent requirements in terms of environment and social responsibility.

Businesses must demonstrate their social and environmental responsibility to their partners, he added.

According to experts, with major raw cashew supplying countries such as Ivory Coast stepping up exports of processed kernels, Việt Nam’s cashew industry needs to focus on improving quality and diversifying products to keep its competitive advantage.

The association and the Vietnam Trade Promotion Agency are set to organise the 13th VINACAS Golden Cashew Rendezvous from February 26 to 28 in Quảng Bình Province’s Đồng Hới City, he said.

Being an important trade promotion event for the cashew industry, the event will feature a number of activities such as networking, signing of deals and discussions on production and trading of raw nuts and kernels, and is expected to attract 400-500 local and foreign delegates, he said. 

Ample room ahead for rice exports to Philippines

With the Philippines expected to import between 3.5 million and four million tonnes of rice this year, there are bright prospects ahead for Vietnamese rice exports to the market, according to Phung Van Thanh, Vietnamese Trade Counselor in the Philippines.      

Statistics compiled by the Ministry of Agriculture and Rural Development indicate that the Philippines is the leading consumer of Vietnamese rice, accounting for about 35% of the overall market share.

During the 11-month period last year, Vietnam exported 2.63 million tonnes of rice worth US$1.41 billion to the Philippines.

Thanh attributed this robust export growth to the Philippines to the fact that Vietnamese rice has been sold at competitive prices which are suitable for both high-income and low-income earners.

However, local enterprises have been advised to build a brand for Vietnamese rice in this country amid the current high export price, he noted.

Thanh analyzed that the Philippines has been heavily dependent on Vietnamese rice, meaning that it is currently seeking to diversify its supply source to avoid the reliance.

Furthermore, according to a recent survey in the Philippines conducted by the Vietnam Food Association (VFA), the recognition of Vietnamese rice brands remain low in the Philippines, while Japanese and Thai rice are developing good brands in the market.

He expressed his concern over the fact that many Filipinos eat Vietnamese rice but don't know the origin, adding that top priority should be given to the developing brands of Vietnamese rice in the market.

As a means of assisting export businesses in removing hurdles, Thanh revealed that the Vietnam Trade Office and Embassy in the Philippines will establish a Vietnam - Philippines Business Club in the 2024 to 2025 period.

The establishment of the office is aimed at helping local businesses seize upon opportunities to meet reputable partners without having to go directly to the Philippines, thereby further reducing costs and avoiding fraudulent partners, Thanh stressed.

Vietnamese PMI sees slight increase in December

Vietnam’s Manufacturing Purchasing Managers' Index (PMI) rose slightly from 47.3 in November to 48.9 in December to reach a point of softer rate of deterioration, according to international independent credit rating data source and index provider Standard & Poor’s Global (S&P Global).      

S&P Global reported that the index remained below the 50.0 no-change mark, thereby signaling a fourth consecutive monthly decline in terms of business conditions in the sector.

It outlined that the local manufacturing sector ended 2023 in contraction mode, adding that weak demand contributed to see a second successive monthly fall in terms of new orders, with output scaled back accordingly.

Meanwhile, purchasing activity and employment remained broadly unchanged. There were some reports that recent price rises had deterred customers, whilst firms responded by raising their charges only fractionally in December despite a further marked increase in input costs.

The health of the sector worsened throughout much of last year, improving only in February and August. The average PMI reading across the year was also at the lowest since the COVID-19 pandemic outbreak in 2020.

The latest decline occurring in operating conditions again reflected a subdued demand environment, with total new orders down for the second consecutive month in December.

The pace of reduction eased from that seen in November, however, as new export orders neared stabilisation.

Anecdotal evidence suggested that recent price rises have deterred customers and contributed to the latest reduction in new orders. Responding to these signs, manufacturers have moved to limit the extent to which they raised their selling prices at the end of the year, hiking charges only fractionally and to the least extent in the current five-month sequence of inflation.

The marginal nature of the rise in selling prices contrasted with that seen for input costs, which continued to increase markedly and at a pace that was little-changed from the nine-month high seen in November.

According to respondents, higher input costs often reflected increases taking place in prices for electricity and oil, plus exchange rate weakness. With new orders decreasing amid a challenging demand environment, manufacturers once again cut their production volumes in December, extending the current sequence of decline to four months.

Firms predicted that output will expand over the course of the coming year thanks to hopes of a recovery in demand both domestically and in export markets, plus business expansion plans. Sentiment hit a three-month high but remained below the series average.

Hopes for growth of output in the year ahead meant that firms kept their employment and purchasing activity broadly stable in December, despite falls in new orders. In both cases, the broad stability at the end of the year represented an improvement from modest reductions occurring in November. Stocks of inputs were also scaled back for the fourth month running, however.

A lack of demand for inputs and competition among suppliers has meant that lead times on the delivery of purchased items continued to shorten. That said, the latest improvement was only marginal, with stocks of finished goods being unchanged in December after having fallen in three consecutive months to November.

Some firms witnessed stocks of unsold products increase amid falling new orders, but others scaled back production accordingly to prevent a build-up of inventories. Meanwhile, backlogs of work increased for the first time in a year and to the greatest extent since May, 2022.

Andrew Harker, Economics Director at S&P Global Market Intelligence, said, “The final month of the year was indicative of the picture for much of 2023 in the Vietnamese manufacturing sector, with subdued demand limiting production volumes. Firms responded to demand weakness by restricting price rises in December to try and help stimulate new business. This was despite a further marked increase in their own input costs.”

"Attention now turns to the prospects for 2024, with firms still optimistic on balance that output will expand. This led to broad stability of employment and purchasing activity despite the reductions in new orders, as manufacturers attempt to maintain capacity in the hope of better days to come," he noted.

Processed fruit and vegetable exports exceed US$1 billion for first time

Processed fruit and vegetable exports reached over US$1.1 billion last year, representing a rise of 19% against the same period from last year, according to figures released by the General Department of Vietnam Customs.      

This marks the first time that Vietnamese processed fruit and vegetables have exceeded a turnover of US$1 billion, recording the highest level ever.

According to information provided by the Vietnam Fruit and Vegetables Association, processed fruit and vegetable exports account for about 21% of total export turnover. The United States, the EU, Japan, and the Republic of Korea all remain the main consumers of the Vietnamese products. In

addition to fresh products, China’s opening for Vietnam's processed and frozen fruits has helped accelerate the consumption of the product in comparison to previous years.

Notably, processed products made from mango, passion fruit, almonds, and pistachios also grew by between 22% and 60% against the same period from last year. Meanwhile, canned fruit and bottled juices have also been favoured in Japan, the US, and Europe.

Dang Phuc Nguyen, secretary general of the Vietnam Fruit & Vegetables Association, said processed exports have increased sharply thanks to abundant supply sources amid major markets opening doors for Vietnamese processed agricultural exports.

Over the past three years, the nation’s processed fruit and vegetable export value to the US has increased by 30% to 45% per year, according to data given by the US International Trade Commission.

Similarly, the growth rate of this product in the EU market also reached an average of between 10% and 20% annually.

However, the Ministry of Agriculture and Rural Development pointed out that processed fresh fruit output still accounts for a low proportion of only 14% compared to the annual harvest output.

Currently, fruit processing and preservation facilities are gradually being upgraded, but remain on a small scale, thereby leading to the export of processed products yet to match the market potential.

VinFast unveils new electric pickup truck concept

VinFast Auto, Việt Nam's leading electric vehicle manufacturer, unveiled its new electric vehicle concept - the VF Wild at the Consumer Electronics Show in Las Vegas (CES 2024) on January 9.

The concept car is VinFast’s first attempt at a pickup truck, exemplifying VinFast's commitment to broadening its product range and promoting sustainable mobility by making smart, safe, exciting electric vehicles accessible to everyone.

The VF Wild concept highlights VinFast's innovative efforts to create a pickup truck with exceptional performance, catering to the new generation of consumers looking for innovation and eco-friendliness without compromising on performance and durability.

With an overall length of 209 inches (5324mm) and a width of 79 inches (1997mm), VF Wild’s dimensions place it in the mid-size pickup category. This efficiently packaged mid-size footprint is further enhanced by VF Wild’s flexible bed size.

The vehicle combines the practicality of a power-folding mid-gate to provide a class-leading bed length designed to expand from five to eight feet with the rear seats folded down automatically, equipping the VF Wild with the largest bed in its segment. With the functionality of the expanding bed, work and play can be done in style and comfort. The design also integrates a panoramic glass roof and digital side mirrors to improve aerodynamics.

The VF Wild concept was jointly developed by VinFast and Australian design studio Gomitiv. The design, developed over 8,000 hours and involving many designers, boasts a striking "Fluid Dynamism" aesthetic that is uniquely designed for the VF Wild concept, inspired by the flowing motion of a superhero’s cape in the wind. 

New challenges predicted for industrial plant products in 2024

After a successful year in 2023, the production and export of products from industrial crops are forecast to face new challenges in 2024, requiring flexible response of each industry from the stage of production to processing and market development.

Last year, the export revenue of agricultural products hit 25 billion USD, with great contributions from industrial plants such as coffee, cashew, peppercorn, tea and rubber. Two products with export turnover of over 3 billion USD were coffee (4.18 billion USD) and cashew nuts (3.63 billion USD).

According to the Agency of Foreign Trade under the Ministry of Industry and Trade, in 2023, Vietnam benefited from a price hike of Robusta coffee. The country shipped abroad 1.61 million tonnes of coffee, with an average price of 2,834 USD a tonne, up 14.1% year on year.

In 2024, the coffee sector is forecast to continue to benefit from the high price of Robusta coffee, which is predicted to hit a new record due to concerns about a supply shortage.

For the cashew sector, last year, growth was seen in all traditional markets of Vietnam despite teh economic crisis.

According to the Vietnam Cashew Association (Vinacas), sales of this healthy product is forecast to increase in 2024, while productivity and output are predicted to remain stable.

Meanwhile, in 2023, despite an increase in export volume, the value of peppercorn exports saw a drop of 6% compared to 2022, mostly due to a sharp drop of 19.4% in prices.

However, Nguyen Tien Dung, Sustainability Manager of Dak Lak September 2 Import-Export Company Limited, held that this year, the biggest challenge facing the coffee sector is sustainable development criteria, especially the EU Deforestation Regulation (EUDR).

Head of the Vietnam Peppercorn Association (VPA)’s Office Le Viet Anh underlined that Vietnamese peppercorn is also encountering great barriers from increasing technical standards of markets, especially in terms of quality and food safety.

At the same time, the cashew sector is facing pressure from green production transition to meet increasingly strict requirements in terms of environment and social responsibilities in foreign markets, especially the US and European countries.

Ministry to take measures to boost exports to European-American markets

The Ministry of Industry and Trade (MoIT) will roll out major measures to boost exports to the European and American markets this year, an official has said.

Ta Hoang Linh, Director of the European-American Market Department under the MoIT, said to maximise advantages and minimise challenges to both exports and imports, the ministry will keep a close watch on market developments, as well as changes in terms of politics and policies in the regions and the world in order to give timely warnings to businesses and consultancy to the Government.

It will also coordinate with relevant sides, associations, enterprises and localities to implement development strategies, and optimise free trade agreements (FTAs) and other cooperation frameworks to diversify markets, products and distribution channels, he added.

The ministry will work to raise awareness of domestic producers and exporters about the approach to circular economy, and sustainable production and consumption, thus changing their mindset in production, according to the official.

The MoIT reported that trade between Vietnam and the European-American markets dropped about 9.5% last year to 208 billion USD, with exports worth of 166 billion USD, down 9.6%.

Experts explained that the decline was due to the global economic slowdown in the first half of 2023, and the sluggish and uneven recovery of economies worldwide in the second half. At the same time, inflation and political uncertainty have changed consumption habits in the market.

Regarding advantages for the trade, Linh pointed out that FTAs between Vietnam and the markets have been maximised, and the consumption demand is bouncing back.

Furthermore, industrialised countries continue to promote strategies to diversify sources of supply, supply chains, and investments, turning Vietnam into an important production and export centre in the global value chain, he continued.

Regional countries are also boosting the green economy, digital transformation and the circular economy, which are advantages of the Vietnamese business community, opening up many new cooperation opportunities as well, Linh said.

For challenges, the official said the economic growth in the world and the European and American markets this year is forecast to be lower than in 2023, plus persistent geopolitical conflicts and uncertainties, and the trend of "globalisation".

Countries have also imposed more protectionist policies, he said, adding that developed countries are paying more attention to sustainable development, climate change response, and consumers' safety, prompting the formation of new, more stringent standards and regulations to imports.

Prime Minister makes field trips to key projects in Hai Duong

Prime Minister Pham Minh Chinh on January 10 inspected several key projects in Hai Duong as part of his visit to the Red River Delta province.

The projects include one on upgrading National Highway 37's section that runs through the Con Son-Kiep Bac special national relic site, the Thanh Long Lake ecotourism area at the site, and Dong Viet Bridge spanning over the Thuong River, linking Hai Duong and Bac Giang provinces.

Hai Duong has been working hard to complete three sub-projects connected with National Highways 37 with a total investment capital of 1.96 trillion VND (80.26 million USD). They are expected to be completed this year, helping to attract vehicles to navigate on the National Highway, which runs from Bac Giang, through several provinces, to Hai Phong city.

PM Chinh emphasised the importance of the upgrade to connecting Bac Giang with Hai Duong and Quang Ninh, as well as to regional connectivity, and asked the three localities to join hands in the implementation.

Covering about 1,568 hectares in Le Loi and Hung Dao communes in Chi Linh city, the Thanh Long Lake ecotourism area is set to contribute to preserving and raising the values of the Con Son-Kiep Bac special national relic site, as well as local socio-economic development.

The PM stressed that the project is expected to help promote the Yen Tu-Vinh Nghiem-Con Son-Kiep Bac landscape and relic complex that is seeking UNESCO recognition.

He asked Hai Duong to continue its coordination with concerned agencies in different steps to complete the projects, saying it can handle mechanism and policy problems within its power, or report them to competent agencies for decision.

VinFast unveils new electric pickup concept

VinFast, Vietnam's leading electric vehicle manufacturer, unveiled its new electric vehicle concept - the VF Wild - at the Consumer Electronics Show in Las Vegas (CES 2024) on January 9.

The concept car is VinFast’s first attempt at a pickup truck, exemplifying VinFast's commitment to broadening its product range and promoting sustainable mobility by making smart, safe, exciting electric vehicles accessible to everyone.

The VF Wild concept highlights VinFast's innovative efforts to create a pickup truck with exceptional performance, catering to the new generation of consumers looking for innovation and eco-friendliness without compromising on performance and durability.

With an overall length of 209 inches (5324mm) and a width of 79 inches (1997mm), the VF Wild’s dimensions place it in the mid-size pickup category. This efficiently packaged mid-size footprint is further enhanced by the VF Wild’s flexible bed size.

The vehicle combines the practicality of a power-folding mid-gate to provide a class-leading bed length designed to expand from five to eight feet with the rear seats folded down automatically, equipping the VF Wild with the largest bed in its segment. With the functionality of the expanding bed, work and play can be done in style and comfort. The design also integrates a panoramic glass roof and digital side mirrors to improve aerodynamics.

The VF Wild concept was jointly developed by VinFast and Australian design studio Gomitiv. The design, developed over 8,000 hours and involving many designers, boasts a striking "Fluid Dynamism" aesthetic that is uniquely designed for the VF Wild concept, inspired by the flowing motion of a superhero’s cape in the wind.

Sales index of processing-manufacturing up 3.1%

The sales index of the processing and manufacturing sector in December 2023 rose 3.1% month-on-month and 5.1% year-on-year, according to the Ministry of Industry and Trade (MoIT).

However, the ministry said, the index expanded by only 1.8% last year, lower than the 7.1% increase recorded in the previous year.

Meanwhile, the sector’s added value in the year grew 3.62%, contributing 0.93% of the entire economy’s added value, and its inventories reached 87.5% as compared with the 78.1% in 2022.

The figures demonstrated that the sector was facing difficulties, the ministry said, noting that its added value grew at the lowest rate in the 2011-2023 period, thus contributing not much to the national economic growth.

Exports of fruits, vegetables expected to grow by 15-20% in 2024

Vietnam’s fruit and vegetable exports are expected to reach a new record of 6.5-7 billion USD this year, up 15-20% from 2023, propelled by robust market signs, according to the Ministry of Agriculture and Rural Development.

Earlier, the agricultural sector eyed 4.5 billion USD and 5.69 billion USD in export turnover in 2024 and 2025, respectively. However, 2023 was a successful year of the fruit and vegetable sector as export revenue reached a record high of 5.69 billion USD, a year-on-year hike of nearly 70%.

General Secretary of the Vietnam Vegetable and Fruit Association (VINAFRUIT) Dang Phuc Nguyen attributed the success to better product quality, meeting the strict requirements of various markets, and diversity of fruit exports.

He stressed that durian exports brought home some 2.4 billion USD in 2023, as compared to more than 200 million USD in 2021 and the previous years.

Other staples, including grapefruits, bananas, coconuts, longans, dragon fruits and lychees, have affirmed its prestige and position in choosy markets such as the US, New Zealand, Japan and China, paving the way to break in other developed countries in the coming time, according to VINAFRUIT.

Deputy Minister of Agriculture and Rural Development Phung Duc Tien said that there many opportunities for the sector to bolster fruit and vegetable exports in 2024.

Vietnam and China recently signed a protocol for official exports of more Vietnamese fruits, including watermelons, coconuts, pharmaceutical products, and frozen fruits, to the 1.4-billion-consumer market, he elaborated.

Besides, the US, Japan and the EU are opening wider doors for Vietnamese fruits due to their outstanding quality, he said.

However, the ministry also pointed out several challenges that the sector needs to overcome, including compliance to regulations on quality and origin traceability of the export markets.

There is ample room for Vietnam to bolster fruit and vegetable shipments as export turnover only accounts for 2-3% of the world’s total. In the coming time, the ministry will continue accompanying enterprises to step up marketing activities, develop Vietnamese fruit brands, and update market information so as to outline rational production plans.

Vietnam - Sweden trade growing steadily: Official

Trade between Vietnam and Sweden has been growing steadily for many years, with the North European country’s imports rising 9% annually during 2018 - 2022, a relatively impressive figure, an official has said.

The figure of the Swedish international trade centre was cited by Nguyen Thi Hoang Thuy, Trade Counsellor at Vietnam’s Trade Office in Sweden and Northern Europe.

In 2022, bilateral trade stood at 1.617 billion USD, up 6.3% year on year. That consists of 1.264 billion USD in Vietnam’s exports to and 353 million USD in imports from Sweden, respectively increasing 5.4% and 9.9%, according to the General Department of Vietnam Customs.

Vietnam’s main exports to Sweden include telephones, computers, other electronic devices and components, textile - garment, footwear, steel products, and spare parts. Meanwhile, imports include telecommunications devices, machinery, equipment, and pharmaceuticals.

Last year was full of difficulties for the global economy due to prolonged impacts of many big changes like the Russia - Ukraine conflict, China’s zero-COVID policy, and the policy response to inflation in many countries, leading to decreased consumption demand and imports.

As a result, Vietnam witnessed a sharp fall in the shipments of many key products, and exports to Sweden also declined strongly in 2023. However, it still ranked second among the biggest Asian exporters to Sweden, after China, she added.

Thanks to the EU - Vietnam Free Trade Agreement (EVFTA), signed on June 30, 2019, and coming into force on August 1, 2020, trade opportunities between Vietnam and the EU, including Sweden, are considerable, the official opined.

She perceived that the EVFTA has surely helped mitigate external adverse impacts on the Vietnamese economy, which can be seen in the competitive edge generated by preferential tariffs for Vietnamese goods in the Swedish market.

 Vietnamese Prime Minister Pham Minh Chinh (L) and his Swedish counterpart Ulf Kristersson meet on the sidelines of COP28 in Dubai on December 2, 2023. (Photo: VNA)
For example, Vietnam previously exported just over 100,000 USD worth of rice at the maximum to Sweden as it was unable to compete with Cambodian and Thai grain prices. However, rice shipments to this market have surpassed 3 million USD and are on the rise.

Besides, the FTA has not only brought about tariff benefits but also inspired Swedish firms’ interest in the Vietnamese market, especially when they are seeking new markets to shift investment and business activities to, she went on.

The Trade Counsellor also pointed out many challenges to Vietnamese businesses in Sweden, including a small market, high requirements for goods, a lack of direct air routes, and the absence of seaport and airport partnerships. Vietnamese goods also have to comply with stringent regulations such as rules of origin, environmental standards, and technical criteria to enter the EU in general and Sweden in particular.
Once overcoming these difficulties, Vietnamese goods will gain a firm foothold in Sweden and the EU, Thuy said.

She added her office is planning a number of activities to be held on the sidelines of coming high-level mutual visits such as a bilateral business forum, meetings with potential investors, and a Vietnamese goods week in Sweden. It will also arrange trips for Swedish companies to attend major events in Vietnam like a sourcing fair in June 2024 and an international food expo to further promote bilateral trade.

Domestic steel sector sees high hope for recovery in 2024: Experts

With bright signs seen in the last months of 2023, many experts predicted that the domestic steel sector can recover in 2024.

According to the Vietnam Steel Association (VSA), steel sales in November and December 2023 reached the highest levels in 20 months with growth between 20-40% for different products.

This year, along with a bright outlook of the domestic economy plus the government’s policies to promote public investment, steel production and consumption may reach 29 million tonnes and 21.67 million tonnes, marking rises of 6.7% and 7.4% year on year, respectively, it said.

Meanwhile, Viet Dragon Securities forecast that construction steel sales of Vietnam’s leading producer – Hoa Phat Group, will surge 29% to 4.8 million tonnes in 2024 due to higher demand for construction materials.

In the last month of 2023 alone, the Vietnam Steel Corporation (VSA) sold more than 324,300 tonnes of steel, up 53% over the previous month and 36% year on year.

To meet the market's increasing demand, the Hoa Phat Group plans to put the second phase of its factory complex into operations in 2025, doubling the plant’s hot rolled coil production capacity to 6 million tonnes.

Steel expert Nguyen Van Sua held that as domestic firms have recovered and stayed ready for opportunities, the government, ministries and sectors should design stronger policies to boost the real estate market to support the breakthrough of the steel sector in 2024.

He advised steel producers to focus on green production by applying green technologies to reduce carbon emissions and expand export markets.

VSA General Secretary Dinh Quoc Thai asserted that domestic steel demands will surge again along with the recovery of the real estate market in 2024, with an expected increase of construction projects. The government is likely to speed up the disbursement of public investment capital in 2024 to create breakthrough growth, motivating the expansion of some sectors, including steel.

The Ministry of Industry and Trade said that it will continue to research and apply suitable trade defence measures to protect the domestic steel market, while coordinate with associations and businesses in the industry to grasp opportunities in the domestic market.

Particularly in the third quarter of 2024, the ministry will complete the building of a steel strategy until 2030 with a visit to 2050 to lay a foundation for the industry’s fast and sustainable growth.

Hyundai auto sales surge 36.4% in December

The Thanh Cong (TC) Group, a distributor of Hyundai autos in Vietnam, sold 10,884 vehicles in December 2023, up 36.4% from the previous month, the group said on January 10.

Accent continued to be the best-seller with 2,752 units (rising 63.2%), followed by Creta (1,953 units), Tucson (1,147) and Grand i10 (1,135). Particularly, Venue, the latest model of Hyundai TC which was introduced on December 16, had impressive sales of 180 vehicles.

Total sales of Hyundai-branded models in 2023 were 67,450 units.

TC Group expects better domestic auto market in 2024 on the back of the Government’s support policies and easing global crisis.

2023 was a challenging year for the Vietnamese automobile market as sales fell 25% year-on-year despite a 50% cut in the registration fee from July 1, according to the Vietnam Automobile Manufacturers Association (VAMA).

The VAMA said its members sold only 301,989 vehicles in the year, with the sales of domestically-assembled automobiles declining 20% to 181,380 units, and the number of imported completely built-up autos dropping 32% to 120,609.

Experts blamed economic headwinds caused by the COVID-19 pandemic and unprecedented socio-political developments across the globe over the past time.

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