The trade turnover between Vietnam and the European Union (EU) reached 76.3 billion USD last year, a year-on-year increase of 5.1%, according to the European-American Market Department under the Ministry of Industry and Trade (MoIT).

Of this, exports hit 56 billion USD, up 10.2% compared with the 2021’s figure, it said.

Vietnam's trade surplus with the European market hit 35.5 billion USD last year.

The EU is currently Vietnam's leading trade partner and third largest export market with an annual export growth rate of 7.5%, accounting for 13.6% of the Southeast Asian country’s total export turnover in the 2015-2021 period.

The market share of Vietnamese goods in the EU's total imports is 1.8%, higher than that of other Southeast Asian countries such as Malaysia (1.2%), Thailand (0.9%), Indonesia (0.7%) and Singapore (0.7%), according to the European Statistics Agency (Eurostat).

Market surveillance authority asks to impose tough penalties on fuel violators

The Vietnam Directorate of Market Surveillance directed to impose tough penalties on violators in the field of fuel business.

In order to prevent a virtual local shortage of petrol, the Vietnam Directorate of Market Surveillance under the Ministry of Industry and Trade yesterday requested to inspect all petrol and oil stations throwing the book at violators. Moreover, inspectors can apply additional sanctions asking violators to fix the consequences according to regulations.

Market surveillance forces in localities were urged to increase inspection, supervision, and handling of violations in petroleum businesses on the occasion of the Tet holiday ( the Lunar New Year 2023); at the same time, they must ensure the supplies of petrol for retail stores of wholesalers, distributors and general agents.

In recent days, as the Ministry of Industry and Trade had announced to delay adjustment of gasoline prices until after the Lunar New Year, while world gasoline prices are tending upwards, so some retail agents have closed down and asked for permission to temporarily stop selling during the Lunar New Year.

According to these agents, in the operating period on January 11, the domestic retail gasoline price remained unchanged, while the oil price dropped sharply. The operating period on January 21 will be postponed for another 10 days until the beginning of February whereas the discount is still low, some stores cannot import enough goods or have negative profits due to increased costs because of salary payments, Tet bonuses for employees, and transportation costs.

In addition to sanctions imposed on violating fuel businesses according to regulations, civil servants who let loose their management, cover up, and abet violators will also receive punishment.

Association asks for support to build cold storage system in HCM City
     
HCM City needs to develop a cold storage system and raw material storage areas for the food processing industry, the Food and Foodstuff Association of HCM City said.

The two projects play an important role in the development of the city's food processing industry in the 2021-2030 period. The industry is among the four key industries that the city prioritises, it said.

Ly Kim Chi, chairwoman of the association, said the city currently has many cold storages units but they are at small scale and not that modern, so they do not meet all the requirements for cold storage.

The municipal government, therefore, has approved a cold storage system development project and assigned the city Department of Industry and Trade in collaboration with the association to deploy it, she said.

The cold storage units will have an average area of 5-10ha and be located at areas with convenient traffic and not too far the city centre. They must be at international quality to store and preserve many groups of goods, including imported ones and locally produced products, she said.

“But we have not found an appropriate site for building the cold storage despite making intensive searches,” she said.

Funds for building the cold storage system are contributed by businesses in the industry. The association did not ask the city government to fund for the project, but wanted the city to have policies to support the industry to implement the project, she said.

Chi said a material storage area is very important to the food processing industry, adding that currently, material inputs for food processing firms in the city are mainly supplied by farmers in the southwest provinces.

Therefore, the industry needs to link with provinces to build stable material storage areas for each commodity, and instruct farmers to adopt certain requirements in their crop production to yield clean raw materials so firms can process products for export to fastidious markets such as the US and EU, she said.

Building raw material storage areas should go in tandem with logistics development. The current transport infrastructure is not that good, pushing up costs to firms. If ring roads that connect the city with neighbouring provinces are soon completed, they would help HCM City food processing enterprises reduce costs, she said.

While other sectors witnessed a drop in revenue last year, the food and foodstuff sector recorded over 10 per cent growth in revenue in 2002, and enterprises have had many export orders from several markets for this year, Chi said.

High exports but challenges ahead for fertiliser industry
     
Vietnamese fertiliser exports were riding high in 2022 with an aggregate volume of 1.7 million tonnes, bringing in over US$1 billion.

As organic agriculture has begun to gain traction in the world, organic fertiliser exports reached 2.91 million tonnes last year, up 14 per cent year-by-year. The number of organic fertiliser factories hit 468, four times as high as the number in 2017.

However, high exports are only part of the story. In fact, Viet Nam imported 3.44 million tonnes of fertilisers last year as some types of fertilisers could not be produced domestically. Of the imports, 0.46 million tonnes are organic and 3 million tonnes are non-organic.

The Ministry of Agriculture and Rural Development revealed that there were 792 fertiliser factories in the country in 2022, 112 factories lower than the figure in 2021.

The ministry remarked that the mounting prices of fertilisers in 2022 were pushing up agricultural costs, driving many farmers into unprofitability.

Specifically, fertiliser costs increased from around 25 per cent of their total costs to roughly 50 per cent, surpassing the rise in their revenues. Substandard fertilisers added to their woes by causing damage to their crops.

As such, the Vietnam Fertiliser Association (VFA) urged domestic fertiliser producers to invest further in advanced technologies to improve efficiency and cut costs, which would reduce fertiliser prices to the relief of farmers.

"Production should be distributed equally between non-organic and organic fertilisers as the latter has become a trend globally," added Nguyen Tri Ngoc, VFA deputy director.

The International Fertiliser Association (IFA) had three scenarios for the global fertiliser market in 2023.

Under the worst-case scenario, global fertiliser demand would fall in 2023 and stand at 194.6 million tonnes in 2026. Under the midpoint scenario, global demand would reach 201.1 million tonnes in the next three years. Under the best-case scenario, the figure is adjusted to 211.1 million tonnes.

Fertiliser prices, meanwhile, are not likely to drop in 2023 under all three scenarios.

Over the past 50 years, global fertilisers witnessed three booms in prices, one between 1973-1974, one between 2007-2008, and one from 2021 until now.

The recent boom in fertiliser prices was triggered by the balloon in prices of natural gas, which accounts for about over 70 per cent of fertiliser production costs. Some factories which were unable to transfer higher costs to higher fertiliser prices have been left with no choice but to shut down.

The Russian-Ukrainian conflict fuelled the situation by causing global supply chain disruptions. Specifically, Russia has suspended its fertiliser exports to cater to domestic demand. The suspension will remain in effect until May 2023.

$207m Tuyên Quang-Hà Giang Expressway to be built

The northern mountainous province of Tuyên Quang has decided to invest VNĐ6.8 trillion (US$207 million) to construct an expressway connecting with its northern neighbour, Hà Giang Province.

The investment capital consists of more than VNĐ4.49 trillion (US$189 million) from the State budget and over VNĐ2.3 trillion ($97 million) from the local budget.

The project’s implementation period is scheduled to last until 2025.

The Traffic Construction Projects Investment Management Board of Tuyên Quang Province has been assigned to be the investor of the project.

The two-lane expressway is designed to have a total length of 77km, starting from the intersection of Tuyên Quang-Phú Thọ Expressway and National Highway 2D in Nhữ Khê Commune, Yên Sơn District of Tuyên Quang province to Km77 + 00 through Hà Giang Province.

The project aims to meet increasing travel and freight demand and solve the bottlenecks of the two northern provinces.

The project is believed to be a particularly important work to serve the socio-economic development and ensure national defence and security.

The project also contributes to comprehensive cooperation between Việt Nam and China, in line with road network planning for the period 2021-30, vision towards 2050. 

Ba Ria- Vung Tau aims for per capita GRDP of 8,200 USD in 2023

The sea tourism capital of Vietnam’s southern region, Ba Ria- Vung Tau province has set a target of a  per capita Gross Domestic Product (GRDP) of about 8,231 USD (excluding crude oil and gas) this year, and increase of 620 USD compared to that 2022.

Vice Chairman of the provincial People’s Committee Dang Minh Thong said, in 2023, total development investment capital in the province is expected to reach nearly 59 trillion VND (about 2.6 billion USD), up 6.54%. The total local budget revenue is projected at nearly 89 trillion VND (nearly 3.8 billion USD), of which domestic budget revenue is roundly 43 trillion VND.

Accordingly, the province has rolled out action plans for 2023 with a focus on deploying work such as connecting inter-regional infrastructure and key projects, and medium-term public investment projects during 2021-2026. They will also plan out the Bien Hoa – Vung Tau expressway project (the first phase), the Phuoc An bridge, Ring Road No.4; Highway No.994, and coastal road.

The province has also developed projects to lift Ba Ria- Vung Tau into a national economic centre including works on a free trade zone associated with Cai Mep- Thi Vai area, and a project to modernise Cai Mep- Thi Vai sea port, among others.

In 2022, the province achieved significant socio-economic developments (excluding oil and gas) with an expected increase of 10.97% compared to 2021, the highest rise of the province in the past decade.  Budget revenue was estimated at about 110,000 billion VND, reaching 153.4% of the estimate. Domestic revenue reached 45 trillion VND, reaching 130% of the estimate, the highest rate in recent years.

In the same year, the province attracted 58 foreign direct investments, increased capital for 40 projects with a total of newly granted and adjusted domestic and foreign investment capital of about 2.07 billion USD, or 112.77% of the plan.

VinFast Canada to join Montreal International Auto Show 2023

Domestic auto-maker VinFast, a subsidiary of Vietnamese conglomerate Vingroup, has announced that it will join the Montreal International Auto Show (MIAS) 2023 in Quebec, Canada from January 20-29 with a diversity of models, including VF6, VF7, VF8 and VF9.

This is the first time a Vietnamese automaker has participated at the Canadian auto show, confirming VinFast's presence in the North American market. The MIAS is the most important auto show in the province of Quebec with the presence of more than 500 models and nearly 200,000 visitors annually. After two years of cancellation due to the COVID-19 pandemic, this year's exhibition is expected to attract a larger number of visitors.

Participating in MIAS 2023 for the first time, VinFast brings four key electric vehicle models with basic sizes to meet the diverse needs of customers. The cars included in the show are the small - VF 6, small and medium - VF7, mid-size - VF8 and large - VF9 with three spacious rows of seats. Of which, VF6 and VF7 models are about to be sold this year, while VF8 and VF9 have been on sale since 2022 and will be delivered to customers in Canada in early 2023.

Visitors to the VinFast booth can directly experience the automobile models and modern technologies on the vehicles, receive consultations from experts and enjoy Vietnamese coffee.

Gareth Dunsmore, VinFast Deputy General Director for Global Sales and Marketing, said that the MIAS 2023 is one of the channels to help VinFast reach Canadian customers quickly and conveniently. The firm has opened eight VinFast stores and service centres across Canada and will continue to launch more such stores and centres in 2023. All these efforts aim to increase exposure for local customers of an all-new electric car brand with global quality, he said.

Canada is one of VinFast's key markets. Right after the launch of the first two electric car models internationally, the VF8 and VF9, VinFast has been well received by the Canadian market with an impressive number of orders.

As scheduled, the first batches of VF8 vehicle will be handed over to Canadian customers from the second quarter of 2023, before the delivery of VF9. The two newest models, VF7 and VF6, are expected to be available in the Canadian market within late 2023 and early 2024.

Significant upticks in international trade in 2022: MXV
     
International trade saw significant upticks with an average daily exchange of VND5 trillion daily, with some days at over VND10 trillion, and more than 4,000 new accounts created during 2022, according to the Mercantile Exchange of Vietnam (MXV).

In a recently released report, MXV said trade volume has increased by 36 per cent compared to 2021 with a total of over 22,000 active accounts on the platform. Monthly growth has also been reportedly stable with an upward trend.

"We have overseen deals being made 24/7 from Monday till Saturday with some of the world's largest trade platforms for the entire year, without any issues," said MXV's director-general Dang Viet Hung.

He said the smooth operation was the result of upgrading IT infrastructure with a number of new automatic functions which has been well-received by international and industry experts. Hung added the system has been geared toward greater trade volume in the future.

Since its foundation in 2010, the platform's focus has been on improving collaboration with international trade platforms to push key Viet Nam's commodities including agricultural products, energy, metals, and industrial input materials.

"Last year, we introduced new Mini and Micro transactions. Investors could place an order with as little as VND10 million, a significantly lower amount compared to before, which has allowed thousands of new investors, with limited financial capacity, to enter the playground," he said.

It has paid off, according to Hung, as WTI Micro oil transaction was among the country's busiest trade activities last year.

The platform has been working around the clock to expand its networks to cover all regions across the country with a growing number of partners and members. A series of new protocols and policies, implemented in 2022, have been enforced to ensure all partners and members received sufficient training to follow the country's laws and regulations, as well as international trade norms.

MXV said it organised 12 training classes during the last year and granted certificates to over 500 brokers and investors through a collaborative effort with international trade platforms as part of an effort to improve its human resource quality and efficiency.

The growing Viet Nam market has received attention from some of the world's largest trading platforms such as the Chicago Mercantile Exchange (CME) as many others regularly paid visits and conducted working sessions with MXV.

CME advised its Vietnamese partner to focus on the delivery of commodities, given the country's advantage in producing a number of key commodities and input materials and its growing influence in the global supply chain.

Hung urged the government to quickly implement additional policies to speed up the development of trade activities on the platform, stressing the importance of adapting and reacting to the global trade's new environment.

"It will provide the platform a solid foundation for future development and further support Vietnamese products," he said.

In 2023, the platform's top priority, he said, is to introduce additional new services for Vietnamese key commodities including coffee, cashew, and pepper. Access to new markets around the world should provide a marked improvement in farmers' confidence and productivity.

MXV has been working closely with its logistics partners and port authorities in an attempt to raise commodity delivery by 200-300 per cent this year compared to 2022.

Gojek Vietnam has new general manager

Gojek, Southeast Asia’s leading on-demand mobile platform, announced the appointment of Sumit Rathor as general manager of Gojek Vietnam today, January 18.

Rathor will replace Phung Tuan Duc, who had served as general manager of Gojek Vietnam since 2020.

Rathor joined Gojek in 2019 as regional head of Gojek, Indonesia, managing business in Central and East Java Bali territories. He later moved to Vietnam in 2022 to lead Merchant, Marketing and Strategy functions.

Starting its operations in Vietnam since 2018, Gojek is now connecting more than 200,000 drivers and tens of thousands of food merchants to millions of users through services including transportation, food delivery and logistics.

VIX Securities acquires 15 million GEX shares

VIX Securities JSC has purchased 15 million shares of Gelex Group JSC, which trades its GEX shares on the Hochiminh Stock Exchange, to raise its ownership in the latter to 3.52%.
The securities firm, whose shares are traded on the HCMC exchange under the code VIX, conducted the share acquisitions between December 23, 2022 and January 17, the local media reported.

Nguyen Thi Tuyet, chairwoman of VIX, is the elder sister of Nguyen Van Tuan, a member of Gelex’s board of directors and general director of the electrical equipment manufacturer.

In July last year, VIX bought 15 million GEX shares to hold a 1.76% stake in Gelex.

Dragon Capital bought over 5.1 million GEX shares on November 29 last year to increase its ownership in Gelex to 5.34% from 4.74%, making the former a major shareholder of the latter.

Dragon Capital on December 5 last year got three million more GEX shares to raise its stake in Gelex to 6.03%.

Between January and September last year, Gelex posted VND24.7 trillion in net revenue and VND1.8 trillion in pre-tax profit, up 29% and 25%, year-on-year, respectively.

Vimedimex chairwoman prosecuted over land auction irregularities

Nguyen Thi Loan, board chairwoman of Vimedimex Medi-Pharma JSC, has been prosecuted on January 17 for illegally lowering the value of a 50,000-square-meter land plot in the land auction, according to the local media.

The Hanoi People’s Procuracy pressed charges against Loan over her alleged violations of land auction regulations in line with Clause 2, Article 218 of the Penal Code, with a penalty ranging from a fine of up to VND1 billion to a prison term of 1-5 years.

The Hanoi People’s Procuracy also prosecuted eight other people, including Nguyen Quang Hung, deputy general director of Vimedimex; Ta Thi Van, general director of Bac Tu Liem Real Estate JSC; Nguyen Xuan Duc, deputy general director of My Dinh Real Estate JSC; Tran Cong Tuyen and Vuong Thi Thu Thuy, head and officer of the district’s Project Management Board; Nguyen Thi Dieu Linh, general director of the Hanoi Valuation and Investment JSC; and her two subordinates.

According to the indictment, the Dong Anh District Project Management Board in August 2020 held an auction for a plot of land covering nearly five hectares in the district’s Co Duong Commune, worth an estimated cost of VND500 billion.

Loan colluded with officials of the Dong Anh District Project Management Board and those of the valuation and investment firm to adjust down the land value to around VND334 billion, or the floor price of VND18 million per square meter.

The chairwoman established many companies to join the auction. One of her firms won the auction with a bid of over VND20 million per square meter. One month after the handover of the land plot, Loan sold the land plot from VND80 million to VND100 million per square meter.

Joyful crowds in run-up to Lunar New Year

The streets and supermarkets in Ho Chi Minh City were filled with joyful crowds in the run-up to the Tet holiday ( the Lunar New Year).

As the Lunar New Year 2023 is approaching, some large markets such as Ben Thanh in District 1, Binh Tay in District 6 or supermarkets, and commercial centers in Go Vap District, Tan Binh District were crowded with shoppers.

The number of people flocking to shop at supermarkets and commercial centers increased sharply compared to weekdays. According to incomplete statistics of the supermarket system Co.opmart, MM Mega Market, BigC, and Go!, sales in the past few days increased by 1.5-2 times compared to normal days, even some supermarkets increased almost three times compared to two days ago.

Buyers can buy many ready-made food items, Tet gift baskets, fashion clothes, and cosmetics of all kinds at a discount of 5 percent-50 percent. Good prices plus attractive incentives have really encouraged consumers to spend more on the last days of the lunar year.

Ms. Nguyen Thuy Vui in Binh Thanh District, Ho Chi Minh City bought a dress because Co.opmart has reduced from VND 700,000 to VND 450,000. Moreover, according to her, vegetables, fruits, and confectionery of all kinds are also being discounted, creating favorable conditions for buyers. A representative of Saigon Co.op revealed that about 60,000 gift baskets with a discount of up to 15 percent have been sold daily.

Elsewhere in the city, representatives of Hoc Mon, Binh Dien and Thu Duc wholesale markets said that now goods have been flooded in the markets following high purchasing power. Specifically, Hoc Mon wholesale market has seen an increase of 20 percent in the number of goods compared to weekdays. Particularly today, goods to the market increased by about 70 percent compared to normal days or 4,000 tons.

The volume of goods at the Binh Dien wholesale market these days also increased by about 50 percent compared to weekdays, reaching about 4,800 tons meanwhile, the volume of goods arriving at the Thu Duc wholesale market also increased sharply. The amount of vegetables at the market is estimated to be roughly 1,800-2,000 tons, an increase of 20 percent compared to normal days while 2,200-4,000 tons of fruit were transported to the market doubling that of weekdays and 250-300 tons of fresh flowers.

Small traders said that prices of some items such as seafood, fresh flowers and fruits increased by 15 percent - 20 percent due to the sudden increase in consumption demand. The remaining items are forecasted to increase slightly.

At the end of the lunar year, many homemade products were delivered to customers in all over Ho Chi Minh City. Displaying photos of papaya, and sauerkraut of all kinds that have just been sent to guests, 65-year-old Nguyen Thi Tuyet Hoa on Le Quang Dinh Street, Binh Thanh District, said before, she made nearly 500 jars of melons of all kinds at the price of VND80,000-VND150,000 a jar. This year, the number of orders nearly doubled.

During this Tet holiday, specialties from all regions were transported into the southern metropolis such as Ca Mau dried shrimp, Tuyen Quang pig tongue bamboo shoots, Bac Kan kitchen pork, and Binh Phuoc cashew nuts. According to Mr. Pham Xuan Thanh, the owner of the business Con tom rung (Wild shrimp brand in Ca Mau dried shrimp), this year, customers like to order a 0.5kg box to use as a gift, with the price of VND 900,000. At the same time, special cakes such as must-have cakes banh chung (Vietnamese square sticky rice cake), banh tet (Vietnamese cylindrical sticky rice cake), palanquin, and fish sauce from many regions are also very popular.

Mr. Nguyen Phuong Nam, who specializes in selling Tet specialties in District 5, said that items such as sticky rice cakes with Laotian filling, Camellia leaves, and salted eggs were sold like hot cakes. Most are homemade cakes, with the price of VND90,000-VND140,000 a cake. The seller recommended early order to avoid being out of stock.

Online sales channels have really blossomed recently, giving consumers a variety of choices. Ms. Ngoc Hoa, a native of Dak Lak, said that after she makes a phone call and specialties from all over the North, Central and South will be available at home.

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