The export turnover of wood and wood products is expected to set a record high of 18 billion USD in 2023, with wood pellets and woodchips forecast to enter the one-billion USD club.

President of the Vietnam Timber & Forest Products Association (Viforest) Do Xuan Lap said that the figure will represent a growth rate of 7-9%.

To that end, the industry will focus on raising the competitiveness of enterprises by reducing the use of imported wood, applying science and technology in improving labour productivity, and stepping up digital transformation to cut production costs.

In fact, in the fourth quarter of 2022, the number of orders decreased, and the gloomy atmosphere may linger on until the end of the first quarter of 2023. However, most of businesses believe that the situation may begin brightening from the second quarter.

Pellets and woodchips are also hoped to be a motivation for the development of the sector this year.

Nguyen Thanh Phong, head of the wood pellet branch under the Viforest, said that Vietnam earned over 700 million USD from exporting nearly 4.7 million tonnes of pellets last year, up 35% in volume and 81% in value year-on-year,

Currently, Vietnam is the world’s second biggest exporter of wood pellets, and the export value of this product is predicted to surpass 1 billion USD this year.

HCM City: Nearly 71 trillion VND of public investment in 2023

Ho Chi Minh City has been allocated nearly 71 trillion VND (more than 3 billion USD) of public investment for 2023, including 15.293 billion from the central budget and 55.225 billion from the local budget.

The allocated amount doubles the 2022 level.

The majority of the capital will be invested in transport infrastructure works such as the construction project of the An Phu intersection (600 billion VND), the expansion project of National Highway 50 in Binh Chanh district (184 billion VND), the component No1 project of Ring Road 3 (1 trillion VND) and Ben Thanh-Suoi Tien urban railway project's metro line No1 (779.6 billion VND).

The city's authorities are determined to adopt changes so that the disbursement rate of public investments in 2023 reaches more than 95%.

In the first quarter of 2023, the city is focusing on reviewing projects, and addressing weaknesses in 2022 to accelerate the disbursement of public investments in 2023.

National Tourism Year 2023 creates motivation for south-central region's tourism

By hosting the National Tourism Year 2023, Binh Thuan province's tourism industry is expected to create breakthroughs, contributing to further promoting tourism development in the south-central region. 

Located in the southernmost part of the coastal central region, Binh Thuan is gradually gaining a firm foothold in tourism, promising a regional- and world-level attraction in the near future.

The charming province is home to a 192km-long coast with various beautiful beaches, poetic landscapes, fresh air, and warm climate. Many prestigious travel magazines have selected the locality as one of the ideal destinations in the world.

The locality gathers enough factors to develop a variety of products such as resort tourism, excursions, recreational sports on the sea, sand dunes, adventure tourism, exploration of flora and fauna under the sea, cultural tourism, tours of belief and religious establishments, historical and cultural relics and special traditional festivals.

Binh Thuan is home to nearly 900 accommodation establishments, 13 travel agencies, and 25,000 tourism workers. 

The locality’s tourism sector recorded an average annual growth of 22.4% and contributed 9% to the province's GRDP. It has gradually become a spearhead economic sector of the locality. 

Last year, Binh Thuan welcomed 5.6 million tourists, earning an estimated revenue of 12.8 trillion VND (over 546 million USD). 

With the themed “Binh Thuan – Green convergence”, the National Tourism Year 2023 promises a prosperous year for Vietnam's tourism.

Vice Chairman of the provincial People’s Committee Nguyen Minh said almost all travel firms in Binh Thuan have fully resumed their activities after the COVID-19 pandemic.

The hosting of the National Tourism Year 2023 helps the locality speed up tourism recovery, and lure more visitors and investment in tourism development, he said.

Lam Dong seeks VND2.5 trillion for expressway

Lam Dong Province has asked the prime minister and some relevant ministries for VND2.5 trillion to develop the Bao Loc-Lien Khuong expressway under the public-private partnership format.

The 74-kilometer-long expressway will have four lanes and allow a maximum speed of 100 kilometers per hour, the local media reported.

The project will require a total of over VND19.5 trillion, with some VND7.76 trillion sourced from the State budget.

Of the total central budget for the project, VND4 trillion will come from the local budget for the construction of the project in the 2021-2025 period, but the capital from the provincial budget can be reduced after the Government offers financial support of VND2.5 trillion.

The remaining VND3.76 trillion set for compensation will be converted into land for the same land use purpose.

Besides, of the total investment, some VND11.7 trillion will be mobilized by the project’s investor.

The Central Highlands province pledged to start work on the Bao Loc-Lien Khuong expressway project after receiving financial support from the Government. The project is set to get off the ground in 2023 and be opened to traffic in 2026.

The Bao Loc-Lien Khuong expressway will start at the intersection with Nguyen Van Cu Street in Bao Loc City and end at the intersection with the Lien Khuong-Prenn expressway in Duc Trong District.

Localities benefiting from industrial zone squeeze

Many emerging localities in the north and north-central coast become a magnet to attract foreign investors in the context that many industrial zones in large cities and provinces are full.

Taiwanese laptop maker Compal Electronics is accelerating procedures to kick off construction of a $260 million manufacturing facility this quarter.

The new facility will be located in Lien Ha Thai Industrial Zone (IZ) in the northern province of Thai Binh. Representatives of Compal and investor Green i-Park signed an agreement to rent land in the IZ in December.

Compal’s factory is the seventh in Lien Ha Thai IZ. Its other ventures involve high-tech activities funded by enterprises from Taiwan, South Korea, Japan, and the United States, such as the $120 million Lotes project to produce computer connections, and the $200 million Greenworks project on manufacturing smart garden equipment.

Thai Binh and many other localities in the north and north-central coast have become a spotlight in attracting foreign direct investment (FDI) capital.

Nghe An is another example – in 2018, the province attracted only $25.7 million in FDI and ranked near the bottom of all provinces. However, in 2021, Nghe An garnered $318.5 million from overseas and jumped to 25th among the 60 cities and provinces with FDI capital. In 2022, the position continued to improve when the province lured $890.67 million and climbed to 11th position for the whole year.

These breakouts are thanks to various locality advantages in the context of almost all IZs in large cities and provinces are out of space.

According to statistics published by Savills, IZ supply sources in the six key provinces of the north is currently at an average fulfilment ratio of 83 per cent. Especially, the ratio in Hanoi, Bac Ninh, Bac Giang, and Binh Duong is 95-96 per cent.

Localities such as Dong Nai, Danang, and Haiphong have lost out on opportunities to attract newly registered projects due to a lack of industrial land. Besides that, the room to expand new zones in these localities is narrow. Land clearance and selection of quality investors is also an ever-present issue.

Meanwhile, in emerging localities like Vinh Phuc, Nghe An, and Thai Nguyen, the room to attract foreign investors to IZs is substantial. For example, in Nghe An, six of 11 planned zones are being operated with a fulfilment ratio of 41.9 per cent. In addition, they have advantages in the speed of land clearance.

Long of Green i-Park said it took 10 months to complete the land clearance for nearly 540 hectares at Lien Ha Thai IZ, which is a province record.

In general, emerging localities understand their potential and are proactive in improving the investment and trade environment in terms of traffic, industrial infrastructure, and improving the labour force. They determine key tasks to attract more foreign-invested capital, including those willing to innovate, reform, and improve its business environment and being ready to provide support.

During a conference to promote Vietnam-Japan investment on January 8 in Vinh Phuc, Yamamoto Kenzo, director of Concele Company, said it is looking for new opportunities in the province. “The key factors that impact our decision are the traffic infrastructure, the water supply and drainage system in IZs, and the accommodation for Japanese experts as well as other skilled employees,” he said.

Vietnam-Australia trade hits record high in 2022

Two-way trade between Vietnam and Australia enjoyed a record year-on-year growth of 26.91% to 15.7 billion USD in 2022, according to the Vietnam Trade Office in Australia.

Vietnam’s export turnover to Australia last year expanded 26.18% year-on-year to 5.55 billion USD while its imports were valued at 10.14 billion USD, an increase of 27.31%.

Data from the office shows that many key exports of Vietnam continue to post high growth amid various challenges, including machinery, equipment, tools, and other spare parts (62.1%); footwear (41.3%); textiles (26.3%); aquatic products (37.3%); iron and steel (102.9%); handbags, suitcases and umbrellas (24.8%); coffee (62.53%); and electric wires and cables (81.2%).

Meanwhile, Australia continued to be an important supplier of raw materials for Vietnam’s production of coal, cotton, ores and other minerals, and wheat. 

Head of the trade office Nguyen Phu Hoa said that the industry structure of Vietnam and Australia are complementary to each other, helping the two economies enhance their advantages instead of competing.

Last year, the bilateral trade goals were achieved quickly, he said, adding that Vietnam has become Australia's 10th largest trade partner for the first time, while Australia is now Vietnam's 7th largest trade partner.

Economic experts say that there is a great room for Vietnam and Australia to promote trade growth. The implementation of free trade agreements, including the ASEAN-Australia-New Zealand Free Trade Agreement (AANFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP), offer opportunities for further cooperation between the two countries.

This year, the Vietnam Trade Office in Australia plans to implement promotion programmes for industries with large turnover and follows the directions of the Ministry of Industry and Trade in expanding the Vietnamese imports and exports.

Vietnam Airlines adds flights to meet huge Tet travel demand

Vietnam Airlines (VNA) has announced to add 108 more flights with nearly 20,000 seats to satisfy the huge air travel demand during the Lunar New Year holiday (Tet).

The national flag carrier will operate these flights on the routes linking HCMC with Hanoi, Vinh, Thanh Hoa, Haiphong, Danang and Hue from January 16 to 30 or from the 25th of the final lunar month to the ninth of the first lunar month next year.

Previously, VNA made three increases in its flight frequency in August and December 2022 as it recorded surges in travel demand.

The carrier is set to operate nearly 9,200 domestic flights, with an estimated 1.9 million seats from January 1 to February 5.

Passengers are encouraged to buy tickets through the website or official agencies of VNA, as well as use online check-in services to save time and avoid long queues and mass gatherings at airports.

RCEP brings great business chances for regional firms: experts

The Regional Comprehensive Economic Partnership (RCEP), which came into effect a year ago, has brought about great business chances for enterprises in the region, according to experts.

Right after the deal took effect, trade among regional countries has been increasing. Data from China’s General Administration of Customs showed that in the first 11 months of 2022, import-export revenue between the country and RCEP members rose 7.9% year on year to 11.8 trillion CNY (1.74 trillion USD), accounting for 30% of the country’s total.

Of the total, trade between China and ASEAN countries reached nearly 5.9 trillion CNY (872.65 billion USD), up 15.5% year on year.

According to experts, the greatest benefit from the deal is preferential tax rates, with zero tariff being applied on more than 90% of goods traded by its members.

A recent survey from HSBC showed that more than 93% of surveyed companies from RCEP members said that they plan to increase transactions with China, and more than 30% said they expects at least 30% growth in business in China this year.

In 2023, RCEP member countries are predicted to recover faster, especially in tourism and real estate. Thanks to the RCEP, member will have more chances to boost tourism cooperation, thus promoting the growth of other sectors.

At the same time, the deal is expected to create development opportunities for emerging economies in the region, including those in the ASEAN.

Members' cooperation with the thirds has also contributed to the growth of multilateralism, globalisation and regional collaboration, and creating a firm foundation for the speeding up of negotiations of a free trade agreement between China, Japan and the Republic of Korea.

RCEP has helped switch the economic and trade cooperation focus from China to the ASEAN, and move China’s economic-trade partnership concentration to the ASEAN, according to experts.

The RCEP was signed in 2020 between the Association of Southeast Asian Nations (ASEAN) and five partners, namely Australia, New Zealand, China, Japan, and the Republic of Korea. Taking effect on January 1, 2022, it is the largest FTA at present, covering 30% of the global GDP.

Under this agreement, about 90% of the tariff lines will be eliminated within 20 years since it came into force.

Expanded credit probable for January

The State Bank of Vietnam (SBV) will likely provide commercial banks with more credit room in January, according to economists.

To inject additional money into the economy, banks are also awaiting the SBV's revision of some risk-reward laws.

The market heard speculation last week that the SBV will provide commercial banks with a credit line in January. Consequently, banks will be awarded a credit margin ranging from 10 to 12 per cent, depending on the bank.

The credit rating of the whole system climbed by 14.5 per cent in 2022, the biggest rise over the previous five years. Dr. Le Xuan Nghia, an economic expert, said that in 2023, the SBV may consider boosting the money supply to help the economy owing to lessened external pressure and a higher inflation goal (4.5 per cent). As a result of the large base in 2022, economists anticipate that credit growth will decrease in 2023, expanding by 12 to 13 per cent.

In addition to the credit room, many banks anticipate that the SBV will alter Circular 22/2019/TT-SBV to change the restrictions on limits and safety ratios in a more market-appropriate manner. It is anticipated that the loan-to-deposit ratio will increase from 85 to 90 releasing a substantial amount of money for the economy.

Chairman of VietinBank's Board of Directors Tran Minh Binh stated that the initial announcement of the credit room by SBV and the issuance of a document amending Circular 22 were highly beneficial for banks to balance capital, allowing them to take the lead in capital sources and credit growth from the start of the year.

Pham Quang Dung, chairman of Vietcombank's Board of Directors, suggested that SBV consider enabling state-owned commercial banks to be proactive in their yearly loan growth scale based on following rules on limitations, safety ratio in operation, and national and international standards. The elimination of credit space for the Big Four will have no effect on the management of the SBV since the level of charter capital restricts state-owned commercial banks.

Prior to this, the Vietnam Banks Association requested that the SBV assign credit objectives from the start of the year so that credit institutions may construct business strategies through the annual shareholder meeting in April.

ACC raises possible issues with Long Thanh airport project

Vietnam’s Association of Construction Contractors (ACC) has written to the Government proposing revising the deployment plan of the Long Thanh International Airport due to concerns over its completion schedule and many other issues concerning package 5.10 – construction of the terminal and installation of equipment for the airport.

The prime minister assigned the Ministry of Transport, the Commission for the Management of State Capital at Enterprises and the Airports Corporation of Vietnam to consider the proposal made by the ACC to enable the selection of qualified contractors for the package without unreasonably increasing its price.

According to the ACC, the inappropriateness of the criteria of the bidding package, methods of selection of contractors and estimate of procurement due to the limit of the State budget has made the package less attractive to foreign investors.

Moreover, the 33-month completion schedule for package 5.10 relating to the construction of the terminal and installation of equipment was not practical, according to the association, given the evidence that the work volume of the Noi Bai airport expansion project accounted for only one-third of the Long Thanh package but it took up to 36 months to be completed.

In addition, a consortium of Vietnamese contractors as per the bidding criteria is not tight enough in terms of allocation of work, obligations and rights which may pose a risk to the quality of work.

There must be a mechanism to prioritize consortiums between foreign and local investors to take advantage of foreign investors’ expertise and experience and local investors’ capacity to save costs, suggested the chairman of the association.

Earlier, package 5.10, the highest value of over VND35,233 billion amongst the Long Thanh airport phase 1’s terminal packages, was publicly put up for tenders. But all the bidding files were not qualified. The qualification criteria will therefore be revised for a bid invitation in the coming time, according to the management of the Airports Corporation of Vietnam.

Appropriate measures needed to attract more Indian tourists

If effective measures are taken, Vietnam can easily attract tourists from India – the world’s second most populous country, according to insiders.

The General Statistics Office (GSO) said that 137,900 Indians visited Vietnam last year, making it ninth out of the 10 markets sending the largest number of travelers to the Southeast Asian nation. The average growth rate was 45% per month.

Notably, since July 2022, the number of Indian tourists to Vietnam each month has recorded an increase compare to the same month of 2019 before the COVID-19 pandemic broke out.

The positive results are attributed to a large number of direct air routes between the two countries.

At present, Vietnam’s Vietnam Airlines and Vietjet, and India’s IndiGo are exploiting 21 direct air routes, with over 60 flights a week.

In addition, the Vietnamese tourism sector has stepped up promotion in India, notably the Vietnam-India tourism promotion forum in New Delhi on December 14, 2022.

India’s searches for Vietnamese tourism have increased continuously, with the number in last November rising threefold against that of July, and twofold against that of August.

Google Destination Insights has also listed India among the 10 countries with the most searches for tourism in Vietnam.

To attract more Indians to Vietnam, localities and businesses are advised to invest in infrastructure to better serve them as they have specific demands in terms of religion and beliefs, and cuisine.

Indian Ambassador to Vietnam Subhash Prasad Gupta said that the two countries should continue intensifying popularisation of arts and cuisine, particularly via films and on the Internet.

Land fee reduction extension proposed for 2023

The Ministry of Finance has proposed extending the 30% land use fee reduction for businesses, households and individuals this year to further facilitate the country’s economic recovery.

In its draft decree on land use fee reduction, the ministry said economic woes caused by a tight monetary policy, the Russia-Ukraine military conflict and a demand slump are expected to continue plaguing land-intensive industries such as property, agriculture and mining.

It suggested that fiscal aid be maintained this year to ease their burden.

Last year, Vietnam slashed land use fees by 30% for those affected by Covid-19 to accelerate the economic recovery. The aid amounted to VND3,500 billion.

Real estate stability on top of SBV agenda

The State Bank of Vietnam is encouraging the lowering of real estate loan rates to assist enterprises in overcoming liquidity issues, a vital action that on its own will be insufficient to foster stable market development.

At the beginning of January, Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong said that boosting public investment disbursement, executing tax reductions and extensions, and modifying real estate prices would unclog cash flow through the economy.

Currently, the SBV’s top aim is to guarantee liquidity and keep the system stable and secure. In addition, to eliminate obstacles for enterprises and individuals, the banking sector has emphasised reforms and simplifications of lending processes to enhance access to finance

Hong also said that for many firms that could not qualify for loans, the state must implement credit guarantees and small and medium-sized company assistance measures.

Almost $30-34 billion flows into the real estate market annually, constituting approximately half of bank capital. In 2022, however, the capital structure of the real estate market was different since other capital channels were not being created.

Accordingly, 70 per cent of the market’s capital came from bank capital, while the remaining 30 per cent came from other channels. For the capital structure to revert to a state of equilibrium in the coming years, a solution is required

According to Dr. Can Van Luc, a member of the National Fiscal and Monetary Policy Advisory Council, macroeconomic factors like inflation and planning all have a significant influence on the real estate market. Subsequent components include credit capital, capital from various channels, data, and market transparency connected to demand, supply factors, and prices.

The loosening of credit room in 2022 and the preparation for additional granting in 2023 are encouraging signs. Vo Tri Thanh, former director of the Central Institute of Economic Management said, “The US Federal Reserve and some economies should raise rates to lessen the impact of cash flow and bank rate pressure, including frequency and severity.”

However, Thanh cautioned that the market will be difficult in the near future and that inflation would rise as Vietnam’s economy continues to “implement cross-cutting objectives, such as policy flexibility and stability, macroeconomics, and continuing to assist its growth objective.”

Even when the SBV’s policy lagged, industrial real estate rental rates declined. According to Cushman & Wakefield research, the industrial manufacturing market’s occupancy rate declined in the third quarter of 2022. Rents were modified in light of an increase in supply and indications of a decline in demand.

At the end of 2022, the monthly cost per square metre in the southern region had decreased by 3 per cent annually. The market for prefabricated warehouses also registered more than 300,000sq.m of new supply, mainly in Dong Nai and Long An provinces. Due to a decline in export product demand, the rate of warehouse occupancy fell significantly.

As a result of increased competitive pressure, Cushman & Wakefield expects future rents to move sideways or perhaps down. In addition, a considerable number of ready-built industrial and storage facilities, projected at 4.1 million sq.m, and 2.8 million sq.m of ready-built facilities, will join the market beginning in 2023, putting pressure on rental prices for this type of property.

Five real estate exchanges suspend operation in one month

Five real estate exchanges were shut in late 2022, the Housing and Real Estate Market Development Division with the HCMC Construction Department reported.

The city has 61 real estate exchanges, having been established since 2017, five of which closed in December 2022.

These included the Wonderland real estate exchange of the Gia Luat Group Company Limited in District 3, the Hiep Long exchange of the Hiep Long Management and Development JSC in Tan Binh District, the DPV exchange of DPV Property JSC in District 3, the Milestone Land exchange of Impact Investment Consultancy Company Limited in Thu Duc District and the Trung Thinh exchange of the Trung Thinh Development Company Limited in District 6.

Earlier, the Hoang Anh real estate exchange, located in District 10, ceased operation in September.

In October 2022, the department announced its plan to check compliance with the law of real estate exchanges in the southern metropolis. Accordingly, it would inspect the exchanges’ activities of trading, renting, and listing and information disclosure about properties.

HCM City hotels report increasing rates

Hotel room rates in HCM City have increased since the fourth quarter of last year to an average of VND 1.80 million (USD 77) per room per night, a rise of nine percent compared to the third quarter and 21 percent up on-year.

According to a report by Savills Vietnam, despite a rise of eight percent in room supply in 2022 with over 15,500 rooms, rates have increased after the Covid-19 pandemic was brought under control in the city.

Average room rates were VND1.60 million per room per night through the year 2022 while the rates rose to VND1.80 million in the fourth quarter, the report said. "This showed an increase of 21 percent against 2021's figures. Room occupancy reached 45 percent, up 20 percent on year. Room rates of five-star hotels increased by 44 percent on-year, with room occupancy rising by 24 percent”.

Although the rates were still 18 percent lower than pre-pandemic 2019, Savills expected that the market would continue to recover this year following recent China's looser Covid-19 policies.

Room rates of two to three-star hotels around Ben Thanh Market in District 1 rose by 15 percent over the past year, and 4-5-star hotels along Ton Duc Thang, Le Thanh Ton, and Nguyen Hue up by 20 percent from the fourth quarter of 2021.

Chairman of North Stars Asia, Trang Minh Ha, said that room prices had increased following high demand during the year-end festive season.

Statistics from HCM City Tourism Department said that the city received 25 million domestic tourists and nearly 3.50 million foreign visitors in 2022. The modest number of foreign tourists was blamed on ill-considered visa policies.

According to Statista, hotel revenues are expected to rise seven percent a year between 2023-2027, and average revenues are expected to reach USD158 per visitor by 2027, up 0.3 percent a year.

Challenges persist for small and medium-sized domestic packaging companies
     
Despite the hard work of small and medium-sized domestic packaging companies to stay in tune with market demands and apply the latest production technologies, they continue to face a host of challenges.

According to Ngo Duc Nhat, co-founder of HCM City-based Hoang Phat Packaging Co, which specialises in carton packaging production, this market segment had slowed down during the social distancing period due to restrictions in good transportation and import and export activities.

In the post-pandemic period, Viet Nam’s major import markets faced many difficulties and the risk of economic recession, so they cut back on goods imports and outsourcing orders. That had reduced the amount of packaging they consumed, especially those used to pack goods for export, Nhat said, emphasising difficulties local pulp packaging producers had been coping with in production activities.

Furthermore, dependence on imported raw materials, which had been significantly influenced by many relevant factors such as prices of gasoline and logistics services, also affected the firm's revenues and profits, he spoke to the online newspaper.

The Viet Nam Pulp and Paper Association also agreed. It said packaging enterprises still faced many challenges, such as consumption competition among domestic enterprises due to many new production lines being put into production, harsh competition from foreign rivals, lack of raw materials and high raw material prices and transportation costs.

Moreover, the market has also been experiencing many changes in packaging trends and demands. For example, in the face of climate change, concerns about business sustainability were more important than ever, with a particular focus on packaging and waste generated from food, beverages and consumer products.

Therefore, domestic enterprises needed to grasp this trend to make the necessary changes to solve these challenges.

According to the association, several enterprises had converted packaging production technology from recycled PP plastic pellets - a material with abundant domestic supply. That helped them meet environmental protection requirements and avoid affecting manufacturing costs.

Haiquanonline.com.vn cited a representative of Dong Tien Paper and Packaging Co saying that consumers' awareness about the classification and recycling of waste was increasing. Still, recycling in Viet Nam faced many obstacles due to the lack of collection facilities and the low quality of output materials because of old technology, leading to commercial recycled products not having high value.

Therefore, the company invested VND57.8 billion in a system of factories and production lines for toilet paper and packaging from recycled materials.

A recent survey by Vietnam Report showed that there remained huge room for the domestic packaging industry to promote growth in the future. Specifically, when Viet Nam and many countries that were the main export markets of packaging enterprises had also switched to a strategy of living with COVID-19, the sector had many prospects for recovery as high consumption would open growth opportunities for the packaging industry.

On the other hand, free trade agreements such as EVFTA, CPTPP, and RCEP continued to open up export opportunities for industries that used a lot of packagings such as agriculture, forestry, fishery, and processing industry, along with the large demand for high-quality packaging in the world such as high-grade packaging paper, which presented great export opportunities for Viet Nam's packaging industry.

FiinGroup also said in its report that packaging was one of the fastest growing industries in Viet Nam, with an annual growth rate of 13.4 per cent between the 2015-20 period. It was expected to continue double-digit growth in the coming years.

The strong development of the packaging sector in Viet Nam was driven by solid growth of such related sectors as F&B, consumer goods, export activities, and the robust development of modern trade.

To support the development of the local packaging industry, FiinGroup mentioned several solutions for domestic packaging companies, including catching up on the key trends in global packaging materials and designs, such as environmentally friendly and biodegradable products or products from recycled materials.

They should also have a thorough understanding of the requirements/commitments on certification of origin, technical standards, and sustainable development of the bilateral and multilateral FTAs Viet Nam signed in recent years to boost exports.

They should also pay attention to accelerating digital transformation, and automation of manufacturing processes to improve efficiency and product quality, it said.

Nghi Son Oil Refinery commits to provide enough gasoline for Lunar New Year
     
Nghi Son Refinery and Petrochemical LLC (NSRP) is committed to ensuring sufficient supply of petroleum to meet market demand before, during and after the Lunar New Year.

Accordingly, NSRP will actively maintain the highest capacity before the maintenance period of the year to compensate for the output lost during the period, contributing to ensuring the adequate and timely supply and national energy security.

In addition, Nghi Son refinery plant will mobilise commercial reserves (finished petroleum products and semi-finished products), link with Binh Son refinery plant to ensure contract output for focal businesses.

NSRP said that it would do the first general maintenance for the entire factory this year, with a total time of 55 days as planned, starting from August 25.

This year’s capacity plan is set at 79.6 per cent due to nearly two months of overall maintenance, corresponding to about 7.96 million tonnes of crude oil to be processed.

According to information from NSRP, the plant has overcome technical problems to return to 100 per cent capacity and may increase capacity in the near future.

The factory has mobilised necessary human resources, materials and tools to fix the problems. NSRP's on-site repair and workshop-fabrication activities were speeded up.

NSRP had finished fixing the problem by the afternoon of January 13 and the factory was operating at 100 per cent capacity again in the afternoon of January 15.

By providing about 40 per cent of the market's demand for petroleum fuel, NSRP makes an important contribution to ensure national energy security.

NSRP is a joint venture company established in April 2008, invested by four companies: Viet Nam Oil and Gas Group (PVN), Kuwait Petroleum Europe B.V. (KPE), Idemitsu Kosan Co., Ltd. (IKC) and Mitsui Chemicals Inc (MCI).

With a total investment of more than US$9 billion and processing capacity of 200,000 barrels of Kuwaiti crude oil per day, equivalent to 10 million tonnes per year, Nghi Son refinery plant is one of the national key projects of Viet Nam and is one of the most advanced and modern designed refineries operating in Asia. 

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