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.

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 agricultural products to China via Lao Cai border gate thrive

The export of agricultural products to China through border gates located in the northern province of Lao Cai have been running smoothly since the beginning of 2024, according to local customs officers.

Over 255 tonnes of durian were exported to the Chinese market via border gates in the first three days of the year, earning nearly US$1 million.

Aside from durian, other major export items which recorded significant increases include dragon fruit, cassava, and watermelon.

As part of efforts to increase export turnover, customs officers at the Kim Thanh International border gate also set up a separate lane to minimise the customs clearance time for Vietnamese agricultural products.

Last August saw the management board of Lao Cai Economic Zone launch a digital feature at the Kim Thanh International Border Gate No. 2 with the aim of reducing the time and costs related to customs clearance for exports-imports passing through the border gate.

The locality is also making efforts in a bid to improve infrastructure, increase customs clearance capacity, and reduce logistics costs as it strives to become an effective connection point between Vietnam and China.

Currently, 14 Vietnamese agricultural products have been licensed to enter China, namely watermelons, bird’s nests, sweet potatoes, dragon fruit, longans, rambutans, mangoes, jackfruit, bananas, mangosteens, lychees, passionfruit, and durian together with black jelly.

Ministry of Planning and Investment asked to keep sharp, reformed mindset

Prime Minister Pham Minh Chinh on January 11 asked the Ministry of Planning and Investment (MPI) to constantly keep a sharp and reformed mindset, quickly grasp issues emerging in Vietnam and the world, and have foresight to advise the Party, State, people, and businesses about major socio-economic policies.

This is among the tasks for 2024 that the Government leader assigned to the MPI while attending the ministry’s conference in Hanoi on January 11.

He also requested the MPI to constantly maintain attention to and show better performance in the building and perfection of a socialist-oriented market economy. It needs to constantly play a pioneer role in attracting foreign investment, developing new economic models and new sectors, and facilitating innovation to help promote the economy’s transition and Vietnam’s stature in the international arena.

The MPI needs to constantly take the lead in digital transformation to create strong momentum for economic sectors to develop, raise labour productivity and national competitiveness, and turn this into an important tool for the building of an independent and self-reliant economy extensively integrating into the world. It is also necessary to constantly enhance the efficiency and effectiveness of statistical activities and modernise the work to better serve the Party’s leadership and the Government’s management and governance, PM Chinh added.

In addition, he told the MPI to proactively build socio-economic development scenarios for 2024 and beyond; devise and perfect regulations, mechanisms, and policies for strongly, comprehensively, and fruitfully making the three strategic breakthroughs, especially in terms of training human resources; and facilitate entrepreneurship and innovation to provide 50,000 - 100,000 high-quality workers for the semiconductor industry in the near future.

The PM also demanded the MPI design more policies to support Vietnamese businesses’ engagement in regional and global supply chains, boost international economic integration, step up the attraction of foreign investment and external resources, and fulfil its role as the standing body of the sub-committee for socio-economic affairs at the 14th National Party Congress.

The solutions it proposed to foster public investment disbursement, regional connectivity, digital transformation, innovation, and enterprise development have helped drive green and sustainability-oriented economic growth. The ministry also performed well in advising the Government and the PM about measures for attracting FDI, keeping macro-economic stability, ensuring social security, and promoting production and business activities to help maximise opportunities for economic recovery and development, the MPI added.

Petrol prices revised up on January 11

Retail prices of petrol were revised up in the latest adjustment on January 11 by the Ministry of Industry and Trade and the Ministry of Finance.

The prices of E5 RON92 and RON 95-III increased by 35 VND and 19 VND to no more than 22,041 VND (0.9 USD) and 21,935 VND per litre, respectively.

Meanwhile, the costs of diesel and kerosene were capped at 19,707 VND and 20,331 VND per litre, rising by 339 VND and 374 VND, respectively. Mazut oil was sold for a maximum of 15,815 VND per kg, up 320 VND.

The two ministries decided to use the petrol and oil price stabilisation fund for mazut oil, at 300 VND per kilogramme, the same as the previous adjustment.

Seven businesses licensed to export bird's nests to China

Seven Vietnamese businesses have been allowed to export bird's nest products to China so far, said Tran Thi Thu Phuong, Head of the Office of International Cooperation and Communications of the Department of Animal Health under the Ministry of Agriculture and Rural Development (MARD).

Phuong said since the first batch of Vietnamese bird's nest products was exported to China in November last year, over 700 kg of bird's nests have been exported to this market.

She advised businesses to register with the Department of Animal Health for licensing before engaging in exports.

Recently, the Hai Yen Nha Trang One Member Limited (The Hai Yen) has exported its first batch of bird's nests to China by air.

CEO of The Hai Yen Tran Thanh Hai said the company has considered exporting bird's nests to the Chinese market as its strategic goal.

To produce high-quality products, The Hai Yen has paid special attention to carefully selecting and developing resources of high-quality raw materials, applying advanced processing techniques to better the quality of products and preserve the best nutritional content of bird's nests, she noted.  

China is the world largest bird’s nest consuming market with a demand of more than 300 tonnes per year, accounting for about 80% of the global consumption.

Chinese data showed that China imported 220 tonnes of bird’s nests in 2020, more than 300 tonnes in 2021 and 425 tonnes in 2022, mostly from Indonesia, Malaysia, Thailand and now Vietnam.

In Vietnam, swift farming for nests for commercial purposes is a new industry, which started in 2004 in southern provinces and has since developed rapidly over the last decade.

Currently, 42 out of 63 provinces engage in bird's nest farming with over 22,000 bird's nest houses. Vietnam's annual bird's nest output is about 150 tonnes worth over 600 million USD. With the effectiveness of the protocol with China, the bird's nest industry has many opportunities for development.

To facilitate businesses’ bird's nest exports, the Department of Animal Health has issued detailed guidelines on the registration process for exporting bird's nests from Vietnam to China. It also issued guidelines and organised the supervision of disease prevention and food safety in accordance with regulations stated in the protocol.

Khanh Hoa: Biggest ever social housing project kicks off

The biggest ever social housing project in the south central coastal province of Khanh Hoa saw its construction commenced on January 11, promising to accommodate about 20,250 people in the future.

Covering approximately 88ha, the nearly 3.8 trillion VND (155.29 million USD) Vinhomes Happy Home Cam Ranh is expected to be completed around the end of 2026, aiming to deliver some 3,600 units of low-rise social housing, complemented by several hundred villas and adjacent townhouses. It also encompasses a comprehensive array of social infrastructure components, including healthcare facilities and an educational system spanning from preschools to high schools.

At the groundbreaking ceremony, Chairman of the provincial People's Committee Nguyen Tan Tuan stressed that Khanh Hoa has anticipated expected increases in social housing of 44,461 units by 2025 and 46,066 units by 2030. He said in recent years, the province has witnessed a rapid surge in its workforce serving service-oriented businesses and industrial zones, posing new challenges and requirements for housing solutions at the local level.

Aligned with the government's initiative on investing in the construction of at least 1 million social housing units for low-income individuals and industrial zone workers for 2021-2030, Khanh Hoa has been allocated to complete 3,400 units during the 2022-2025 phase and an additional 4,400 units from 2026 to 2030. In the immediate term between 2022 and 2025, it aims to finish over 4,800 units.

Nguyen Viet Quang, Vice Chairman and General Director at the Vietnamese conglomerate Vingroup, remarked that this is the fourth Vinhomes social housing project in Vietnam and the second launched since the beginning of 2024.

Quang Ninh draws 170 FDI projects

Investors from 20 countries and territories across the globe have registered more than 11.57 billion USD in 170 foreign direct investment (FDI) in the northern coastal province of Quang Ninh so far.

Hong Kong (China) is the largest source of the capital with 3.81 billion USD funneled in 49 projects, followed by Japan (over 2.34 billion USD) and the US (2.31 billion USD).

Last year, the province granted new investment licenses to 25 projects worth 3.13 billion USD, and approved additional capital of 28.86 million USD for three others.

The province has been an attractive destination for foreign investors thanks to its efforts to promote administrative reform and build a transparent business climate, helping win confidence from the business community.

Since 2013, the province has topped the Vietnam’s Provincial Competitiveness Index (PCI) which measures the quality of economic management, the level of convenience and friendliness of the business environment, and administrative reform efforts by the provincial administration.

According to Director of the Quang Ninh Economic Zone Authority Hoang Trung Kien, the FDI projects are all in line with the province’s planning and development orientation, making contributions to shaping up hi-tech industries, manufacturing engineering, and component assembly, among others.

Quang Ninh holds huge potential to lure more foreign investors as the Quang Yen coastal economic zone now has more than 9,700 hectares of clean land.

Targeting at least 3 billion USD in FDI capital in 2024, the province will continue implementing its decree on fast and sustainable development of processing and manufacturing sector during the 2020-2025 period with a vision to 2030.

Chairman of the provincial People’s Committee Cao Tuong Huy said Quang Ninh will roll out red carpets for enterprises who land investment in the areas of local strengths and potential such as tourism, processing and manufacturing industries, supporting industry, marine economy, logistics, and eco-agriculture.

Besides, it will sharpen focus on luring prestigious groups with financial strength, modern management, and long-term and stable investment that are able to create high added values at local industrial parks and economic zones, especially those with uniform infrastructure, he said.

Quang Ninh will continue working to create the best conditions for enterprises, and considering incentives to lure further investments.

Currently, it is ramping up efforts to complete a set of criteria to evaluate and choose foreign investments, with priority given to hi-tech projects, environmentally friendly ones, and those that can contribute greatly to the local budget.

Coffee prices hit record high in early January 2024

Coffee farmers are advised to cash in on export shipments as coffee prices are on the rise in the global market.
      
The price of Robusta coffee on ICE Europe - London continued to increase for a fifth session in a row, up US$18 to reach US$2,950 per tonne in March delivery term and up by US$15 to US$2,845 950 per tonne in the May delivery term.

Meanwhile, the price of Arabica coffee on ICE US - New York is on the downward trend, down 2.95 cent to 181.15 cent per lb in the March delivery term and down 3.10 cent to 178.95 cent per lb in the May delivery term.

The increase in the Robusta coffee price in consecutive sessions comes amid concerns about a limited supply from Asia and the prolonged blockage of the Europe-Asia shipping route through the Suez Canal.

The Vietnam Coffee and Cocoa Association estimated that the Vietnamese coffee output in the 2023 - 2024 crop would drop to 1.6 - 1.7 million tonnes, lower than the 1.78 million tonnes of the previous crop.

The price of Vietnamese coffee in major coffee growing areas such as Lam Dong, Dak Lak, Dak Nong, Gia Lai, and Kon Tum rose to VND71,000 (roughly US$2.9) per kilo on January 11, beating the all-time high of VND70,000 per kilo last summer.

It is forecasted that the Vietnamese coffee industry will continue to benefit this year thanks to the high prices of Robusta coffee.

In 2023, Vietnam shipped 1.62 million tonnes of coffee abroad, earning US$4.24 billion, down 8.7% in volume but up 4.6% in value year on year.

Innovation and adaptability are key drivers for further economic development

Innovation and adaptability are the key drivers for Vietnamese economic development this year, according to economists attending the annual Vietnam Economic Scenario Forum 2024 in Hanoi on January 11.

Addressing the event, economic expert Dr. Can Van Luc pointed out that amid global uncertainties taking place in 2023, the pillars of the national economy such as industrial production, and import-export activities witnessed a downward trajectory. 

In fact, the National Assembly, the Government, and the business community have made great strides in promulgating and implementing flexible policies in a timely manner in order to revive the national economy.

Luc said that the country has recorded signs of recovery since the final months of last year, and that there are bright prospects ahead for economic development in 2024 thanks to the country’s new key growth drivers.

In particular, digital transformation and the application of science and technology are being strongly promoted with improved labour productivity, he said.

Furthermore, the Government also stays determined to step up institutional reform, green growth, and proactively adapt to climate change through taking drastic actions.

Phan Duc Hieu, permanent member of the National Assembly’s Economic Committee, revealed that under the socio-economic development direction this year, the National Assembly and the Government have affirmed their determination to boost economic recovery through prioritising growth and macroeconomic stability.

Hieu noted that the Government and the National Assembly have mainly focused on making radical institutional reform, abolishing regulations that hinder production, and not issuing new regulations that cause any additional costs for businesses.

The Government has also proposed a number of solutions aimed at fulfilling the economic growth goals this year by maintaining sustainable growth, fine-tuning institutions, especially on green energy development, accelerating the development of manufacturing – processing, and focusing on training activities and foreign direct investment (FDI) attraction.     

Deputy Minister of Foreign Affairs Nguyen Minh Hang addresses the event

Meanwhile, Deputy Minister of Foreign Affairs Nguyen Minh Hang emphasised that international economic linkages are significantly shifting towards the trend of green and digital transformation for sustainable development.

New trends occurring in the global economic integration will exert an impact on multiple Vietnamese sectors moving forward, she said.

According to experts, global prices, inflation, and interest rates remain high this year, along with complicated geopolitical conflicts, all of which are anticipated to make a negative impact on Vietnamese exports, investment, consumption, international tourism, and financial market.

Linkage between farmers and exporters critical to promote sustainable rice export

Việt Nam must enhance links between farmers and exporters to develop large-scale high-quality paddy fields for sustainable rice export.

Việt Nam had a good year for rice export in 2023 but some limitations must be tackled for the industry to move forward.

Statistics from the Ministry of Agriculture and Rural Development showed that Việt Nam exported 8.29 million tonnes of rice in 2023 which brought $4.78 billion in value, representing a rise of 16.7 per cent and 38.4 per cent, respectively, over 2022.

There are record figures since 1989 when Việt Nam first started to export rice.

Lê Thanh Tùng, Deputy Director of the ministry’s Department of Crop Production, said in 2023 supply shortages put global food security at risk. The rice market was tense, especially after India’s ban on regular rice exports, he said, adding that there were times when it seemed that Việt Nam was about to ban rice exports like 2008 and 2021.

However, appropriate solutions were raised to take advantage of the market opportunities while ensuring domestic food security and increasing income for farmers.

Phạm Thái Bình, Chairman of Trung An High-Tech Farming Joint Stock Company, said that Việt Nam’s rice export had favourable market conditions last year thanks to increasing global demand for food and limited supply. India’s ban pushed up rice prices in the global market to a record high.

In that context, Việt Nam had the advantage of promoting rice export as the domestic rice production had been focusing on improving quality and yield despite decreases in cultivation area, he said.

On average, Việt Nam produces 43-35 million tonnes of paddy, equivalent to 26-28 million tonnes of rice each year, of which, around 20 million tonnes were for domestic consumption.

However, unsustainable factors were revealed when the rice export hit records.

“We are happy that farmers had a successful harvest and good prices in 2023. Meanwhile, many exporters incurred losses of hundreds of billion đồng and went bankrupt due to unpredictable rising rice prices,” Nguyễn Việt Anh, director general of Phương Đông Food said.

The reason for this fact lay in the weak linkage between farmers and exporters.

“Enterprises are aware of the benefits of enhancing linkage with farmers in rice production but few could do that because of high costs for maintaining the linkage,” he said.

In addition, exporters must have a huge volume of cash to purchase rice when the harvest season comes. To do this, enterprises need the Government’s support policies.

Võ Phương Thuỷ, Deputy Director of the Department of Industry and Trade of Đồng Tháp Province which earned $400 million from rice export last year, said that only 25 per cent of the province’s rice cultivation area was under linkage of farmers and enterprises.

Although 2023 was a successful year in terms of exports at some points of time when rice prices increased dramatically, farmers benefited but enterprises struggled.

The rice cultivation area under linkage between farmers and enterprises was also modest in Long An Province, which was around 20,000 – 30,000ha or 10 per cent of the province’s total rice cultivation area.

The scattered production made it difficult to apply advanced farming techniques to promote the transition to low emission, Nguyễn Thanh Tuyền, Director of Long An Province's Department of Agriculture and Rural Development said.

It is critical to establish linkages and produce following the market demands to ensure sustainable export, Tuyền said.

“Linkage to develop large-scale production is the way to go, not only for the rice industry but also for other farming industries, which would bring benefits to both sides,” Bình said.

The Government has a project for the sustainable development of one million hectares of high-quality and low-emission rice cultivation in line with green growth in the Mekong Delta by 2030, which encourages the linkage toward high-quality production.

Bình, however, said that the support policies should be raised to encourage parties, especially supports in credit.

According to expert in agriculture Võ Tòng Xuân, the linkage with farmers would bring a lot of benefits, including ensuring quality and origin traceability, stabilising prices and establishing brands for rice.

This also promotes the reorganisation of the Việt Nam’s rice value chain, he said. 

Phú Yên Province farmer harvests giant cassava

A farmer in Sơn Long Commune in Phú Yên Province has harvested what is thought to be the largest cassava ever grown in the province: It measures nearly two metres long and weighs 15kg.

The cassava was harvested from Bùi Thị Lựu’s cassava farm, according to Sơn Long Commune People’s Committee on January 10. 

Lựu said a lot of cassavas grow up to 10kg and require tools like hoe and crowbar to harvest them instead of picking them by hand as usual.

The cassavas are sold to traders at VNĐ3,000 per kilogramme.

Chairman of the Sơn Long People’s Committee, Đào Đức Hải, said this year the cassava harvest has been great and fetches good prices.

Cassava is used in Việt Nam for cooking regular foods or processed into powder for baking and other uses. 

Dalat fines illegal golf club project

Dalat City People's Committee issued a fine of VND240 million on Thursday to the DL Royal JSC for illegally building a golf club project on Cu Hill. 

This decision comes after a government inspection found in April 2023 numerous violations in the project which included two large buildings.One building covering over 17,000 square metres was only licensed for the construction of the basement but the investor was already working on the fourth floor.

The other building was licensed for an area of 6,120 square metres. However, during the construction process, the investor exceeded the permitted construction area by more than 3,000 square metres.

The investor, DL Royal JSC, was requested to cease construction but they had continued the project.

The construction project sparked public outcry as it obstructs the view from the Xuan Huong Lake to Langbiang Mountain, negatively impacting the natural beauty of the city.

Together with paying the fines, DL Royal JSC was also requested to remove all illegal works within 90 days from January 11.

Stretching over 62 hectares next to Xuan Huong Lake, Cu Hill hosted a golf course built by the French in 1920.

HCMC targets six million international tourist arrivals in 2024

HCMC has set an ambitious target of welcoming six million international tourists in 2024, alongside plans to host various events and festivals aimed at promoting tourism, said the HCMC Department of Tourism.

This announcement comes from the HCMC Department of Tourism, which is also striving to serve 38 million domestic tourist arrivals this year. The city has its sights set on achieving total tourism revenue of VND190 trillion.

To realize these ambitious goals, HCMC will be dedicated to diversifying its tourism products and enhancing their quality. Special attention will be given to products tailored for markets exhibiting rapid growth, boasting large customer bases, high spending capacities, and longer stays.

Le Truong Hien Hoa, deputy director of the HCMC Department of Tourism, emphasized the city’s significant contribution to the national tourism industry in 2023.

In 2023, HCMC successfully attracted nearly five million international visitors and catered to 35 million domestic tourists, generating total revenue of VND160 trillion.

To meet the demands of both mid-range and high-end tourists, the city has unveiled nearly 50 tourism products, with 20 innovative and unique options in the pipeline.

Exports of processed fruits, veggies rise strongly

Processed fruit and vegetable exports from Vietnam had reached a record-breaking value of over US$1.1 billion as of November 2023, up 19% over the same period of the previous year, reported the General Department of Vietnam Customs.

These processed products constituted 21% of the total exports of fruits and vegetables, according to the Vietnam Fruit and Vegetables Association (Vinafruit). Key international markets for these exports include the United States, the European Union, Japan, and South Korea.

China has recently eased trade regulations to allow the import of processed and frozen fruits, in addition to fresh fruits, which has significantly boosted Vietnam’s exports in this category to its neighboring country.

Various processed products such as mangoes, passion fruits, almonds, and pistachios have seen substantial growth, ranging from 22% to 60% compared to 2022. Additionally, canned fruits and bottled juices from Vietnam have gained popularity in markets like Japan, the United States, and the European Union.

Dang Phuc Nguyen, general secretary of Vinafruit, attributes the robust growth in processed product exports to a diversified supply and favorable conditions created by major export markets for Vietnamese products.

Despite this growth, processed products still represent a relatively small portion of the annual harvest output, accounting for 4.5 million tons or 14%. There is potential for further expansion, as the demand for these products in the global market remains high.

Vietravel wants to launch five-star tourist train on North-South line

Vietravel has expressed interest in launching a five-star tourist train that will traverse the entire country in collaboration with the Vietnam Railways Corporation (VNR).

Nguyen Quoc Ky, chairman of Vietravel, informed Prime Minister Pham Minh Chinh of this plan when he attended a conference to discuss the 2024 plan for VNR held on January 9.

The project will feature a range of amenities on the train, including a modern fitness center, a recreation center, a kids’ club, as well as screening and video game rooms.

The five-star relaxation cars on the train are designed to provide guests with the comfort and relaxing experience during their journey to explore the country, Ky said, adding that the special tourist services offered on this train will adhere to international standards and meet the requirements for sustainable tourism development.

Statistics of the Vietnam National Authority of Tourism showed that local tourists using train services in 2023 reached 10 million, expanding by 15% against 2022, while the number of international visitors opting to travel by train was 1.5 million last year, rising by 20%.

Notably, the Hanoi-HCMC route in 2023 gained recognition as one of the world’s amazing train journeys from Lonely Planet, which is a widely-viewed British travel guide.

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