Durian prices have rocketed to an all-time high of VND160,000 per kilogram this year, leading farmers to look forward to substantial profits.

Speaking to The Saigon Times, Tran Tuan Tu, a durian merchant in the Mekong Delta province of Tien Giang, said that the Monthong durian variety is currently selling for VND160,000 per kilogram, VND25,000 higher than in early January.

Meanwhile, the RI6 variant is priced at between VND100,000 and VND110,000 per kilogram, up by VND15,000-20,000 from the beginning of the month. These prices are the highest since the start of the year, surpassing the figures seen in the same period last year.

The price spike is primarily driven by limited supply and increased demand for export. Traders are supplying the local market at prices VND15,000 higher than those at the farms, resulting in prices around VND115,000-125,000 per kilogram for the RI6 variety and VND175,000-180,000 per kilogram for the Monthong variety.

Huynh Tan Loc, director of a durian cooperative in Tien Giang, said that cultivating a durian tree costs VND1.5 million per tree or VND30 million per 1,000 square meters.

With an average yield of about two tons per 1,000 square meters, durian farmers can generate revenue of VND320 million per 1,000 square meters for the Monthong variety and VND200-220 million for the RI6 variant. This translates to profits of around VND290 million for Monthong and VND170-180 million for RI6, which is a significant profit in the current agriculture landscape.

Vietnam’s 2023 durian export sales skyrocketed 4.8 times against 2022 to an astonishing US$2.3 billion in 2023, showed data of the Ministry of Agriculture and Rural Development.

The amazing performance of the durian export sector is attributed to the massive demand of China, which imported more than 1.4 million tons of durian from Vietnam last year, up by 69% against the year earlier, with a total value of US$2.1 billion.

Fuelled by the durian boom, Vietnam’s fruit and vegetable exports blossomed to a record US$5.69 billion in 2023, up by nearly US$2.3 billion from the previous year, according to the Ministry of Agriculture and Rural Development.

In the first half of January this year alone, Vietnam’s fruit and vegetable exports brought in around US$230 million, soaring by 50% over the same period last year.

Over 22,000 workers in HCMC industrial parks lose jobs in 2023

More than 22,000 workers in export processing zones and industrial parks in HCMC lost their jobs in 2023, according to the HCMC Export Processing and Industrial Zones Authority (HEPZA).

The total number of workers employed in export processing zones and industrial parks at the end of 2023 stood at 252,057, down by nearly 22,200 workers in comparison to the previous year.

Hua Quoc Hung, head of HEPZA, attributed this decline in workforce to hardships faced by the manufacturing sector, such as a lack of new orders, difficult economic conditions, and companies’ investments in new technology and machinery optimization.

However, for the first half of 2024, while some enterprises continue to cut jobs, many others still have hiring demands. It is estimated that over 10,500 workers will be recruited between January and June.

Among the prospective recruits, nearly 1,000 hold a university degree or higher, while over 550 have vocational or college education. Unskilled workers make up more than 8,700 of the individuals expected to be hired.

Around 60% of the recruitment will be driven by the requirements of new investment projects, with the remaining percentage related to new production orders.

Vietnam, U.S. explore cooperation in semiconductor and rare earths

The U.S. has expressed interest in cooperating with Vietnam in renewable energy and semiconductor chip production.

Jose W. Fernandez, Under Secretary for Economic, Energy & Business Affairs at the U.S. Department of State, conveyed this message during a luncheon hosted by AmCham in HCMC yesterday, January 24.

Fernandez is on a three-country Asia tour, which takes in Vietnam, the Philippines and South Korea, from January 22 to February 1, with Vietnam as his first destination.

Speaking with the U.S. business community in HCMC, he emphasized growing economic ties between the U.S. and Vietnam, saying President Joe Biden’s state visit to Vietnam in September 2023 and the upgrade of the bilateral relationship to a comprehensive strategic partnership.

During his visit, Fernandez focuses on promoting trade opportunities, expanding renewable energy cooperation, enhancing supply chain partnerships, and strengthening economic cooperation. He noted Vietnam’s potential in microchip assembly, testing, and packaging, and discussed cooperation to bolster the global microchip ecosystem and address human resource development challenges.

Regarding renewable energy cooperation, Fernandez mentioned the Clean Energy Demand Initiative Secretariat (CEDI) which was launched several years ago at the 2021 United Nations Climate Change Conference (COP26).

Fernandez also stressed the importance of diversifying the rare earths supply chain while maintaining environmental sustainability.

In 2022, two-way trade between Vietnam and the U.S. amounted to US$138 billion, and Vietnam is now the eighth-largest trade partner of the United States.

Eleven projects selected for Climate Finance Accelerator Vietnam unveiled

On January 23, eleven exciting projects to help tackle climate change in Vietnam have been selected as the second cohort of Climate Finance Accelerator (CFA) Vietnam.
 
The projects come from the clean energy, energy transition, e-mobility, agriculture, forestry, and other land uses, circular economy, and waste management sectors and have the potential to benefit communities across the country. These projects are seeking a total of $436 million in funding.

The projects were selected in sectors where the regulatory and policy framework is already well established in Vietnam, therefore reducing the chances of project delays. Considering the climate mitigation and carbon reduction potential of the projects was also an important part of the selection process, with this being a particularly strong aspect of several of the projects.

Each project will receive tailored one-to-one and group support to increase its chances of attracting investment from Vietnamese and international backers. The technical and financial expertise shared with the projects includes advice on financial models, how to prepare pitch materials, and how to enhance the gender equality and social inclusion aspects of projects.

The CFA is part of the UK government’s efforts to help Vietnam meet the commitments made by Prime Minister Pham Minh Chinh at COP26 in Glasgow in 2021, and to offer support to implement the Vietnam Just Energy Transition Partnership that was agreed to in December 2022.

British Ambassador to Vietnam Iain Frew said, “The variety of projects selected to be part of the second phase of CFA Vietnam highlights the many exciting and innovative ways that Vietnamese businesses are delivering for the planet. I’m incredibly pleased that the projects from the first phase of the programme have seen such positive follow-up from investors, and I’m sure that these new offerings will experience the same benefits and positive outcomes from being part of the CFA initiative.”

Following the capacity building and mentoring sessions, the projects will meet with investors and financial institutions at a workshop in May. This will allow project developers to further refine their financial structuring through personalised discussions with interested financial institutions.

The event will also provide an opportunity for participants to network and for policymakers to understand the challenges faced by other stakeholders in the climate finance space.

HCMC promotes green growth at investment conference

Phan Van Mai, chairman of the HCMC People’s Committee, has called for stronger cooperation between the public and private sectors to establish a circular economy that focuses on both environmental responsibility and economic prosperity in the southern city.

His statement was given at an investment conference on green growth held yesterday, January 24, in District 1 as part of green and sustainable growth development activities organized by the HCMC-World Bank Joint Working Group (HWG).

The conference served as a platform to unveil HCMC’s strategic roadmap for achieving its green vision. Department representatives outlined a comprehensive framework for the green economy, encompassing development plans and innovative financing mechanisms.

Truong Minh Huy Vu, deputy director of the HCMC Institute of Development Research, pointed out the potential of the city’s green and digital transformation agenda. He said this shift aims not only to navigate the challenges post pandemic but also to fundamentally reshape HCMC’s long-term growth model.

The institute proposed a four-pronged collaboration model involving the city’s government, scientists, businesses and investors. This approach aligns with the World Bank’s vision and covers key projects such as smart urban governance, renewable energy development, and innovation ecosystem creation. 

Building upon Resolution 98 adopted by the National Assembly to bestow special policies and mechanisms on the city, HCMC has made considerable progress towards green growth. Efforts are underway to implement sustainable urban management practices and prioritize resource conservation and environmental protection.

The city is actively reaching out to potential partners and inviting investment for key projects. These include the low-carbon development program, the underground space development project in Thu Duc City, the eco-friendly transformation of Can Gio District, and the construction of HCMC’s traffic transportation backbones.

Fresh investments in HCMC’s industrial zones nearly double in 2023

New investments in HCMC’s industrial zones soared 84% year-on-year to US$1 billion last year, according to the HCMC Export Processing and Industrial Zones Authority (HEPZA).

The huge uptick in new investment approvals is attributed to a strategic focus on high-tech projects, both from domestic and international sources, making 2023 the first year in which fresh investments in the city surpassed the US$1 billion mark.

The per-hectare investment rate rose to US$8.1 million, up from the US$7.2 million mark recorded in the preceding year.

Key sectors such as data centers, information technology, telecommunications, and high-tech manufacturing lured substantial investments in the industrial zones.

Notable among these is Viettel Group’s digital transformation and information technology project worth US$624 million, which utilizes just around four hectares of land.

On the foreign investment front, there was a 13.4% year-on-year increase at more than US$222 million. New foreign investment approvals in the city’s industrial zones amounted to US$63.2 million, a slight decline of 13% compared to 2022. However, adjusted capital in 34 existing projects surged 28.75% to US$159.71 million, according to Tran Viet Ha, deputy head of HEPZA.

Total domestic investments in those zones were VND18.5 trillion (or US$789.35 million), skyrocketing by 123.9% versus 2022. Of this, VND16.7 trillion was pledged in new projects.

In the upcoming year, HEPZA targets attracting US$550 million in foreign investments in industrial zones, with an average investment rate of US$8.5 million per hectare.

Tech firm VNG retracts IPO filing in U.S.

Vietnamese tech firm VNG Corporation (stock code: VNZ) has withdrawn its initial public offering (IPO) registration in the U.S., according to the U.S. Securities and Exchange Commission (SEC).

The statement, available on the SEC’s website, outlined the company’s intention to file a new registration statement in the future without specifying a timeframe or offering reasons for the move.

The company neither told the reason for the retraction of its IPO filing in the U.S. nor provided details on the timeline for any future registration.

VNG had previously postponed its U.S. listing plan in September, citing volatile market conditions.

VNG debuted its VNZ shares on the Unlisted Public Company Market on January 5, 2023, with a starting price of VND240,000 per share, which skyrocketed to an all-time high of VND1,562,000 per share on February 16.

Quang Ninh aims for VND800 billion in international tourism revenue

The northern province of Quang Ninh is targeting VND800 billion in revenue from international visitors to Halong Bay, according to the Halong Bay Management Board.

The province has since October 2023 seen a steady influx of foreign visitors, making up over 70% of all visitors to the World Heritage-listed Halong Bay.

In the first two weeks of January 2024 alone, the breathtaking bay welcomed over 110,000 visitors, with nearly 97,000 hailing from international destinations. Ticket sales during this period generated more than VND35 billion.

Accommodations on the bay hosted around 26,000 individuals, with 24,000 being international guests. Throughout 2023, Halong Bay recorded a total of 2.69 million visitors, maintaining a balance between domestic and international tourists.

The Halong Bay Management Board reported 110,000 tourist boat trips in 2023, including over 19,600 overnight stays. The cumulative revenue from ticket sales for the entire year surpassed VND792 billion.

In 2024, the management board has been tasked with achieving a revenue target of VND800 billion, as the province aims to move toward the record-high revenue of nearly VND1,200 billion in 2019.

Nguyen Trung Hau, deputy head of the Halong Bay Management Board, noted the significant recent growth in international visitors, primarily from South Korea, India, Taiwan, Malaysia, and European and American countries.

A survey by the Quang Ninh Province Statistics Office showed that in 2023, 61% of international visitors were independent travelers, while 31% opted for guided tours. The average length of stay for international tourists in Quang Ninh was 2.97 days, with the majority falling in the age groups of 35-44 years (40%), 45-54 years (29%), and 25-34 years (15%).

Regarding spending patterns, the office reported an average expenditure of around VND3.7 million per international visitor for each trip, with 60% allocated to accommodation and dining, and 25% for sightseeing, entertainment and shopping.

HCMC calls for investment in 28 green growth projects

The HCMC government has released a list of 28 projects which will be introduced at a conference on green growth slated for tomorrow, January 24.

The event is part of a joint effort between HCMC and the World Bank to advance green growth and sustainability in the city.

The conference will bring together development partners, potential investors, experts, organizations, and businesses from both Vietnam and across the globe to deliberate on the city’s key investment projects.

These 28 projects, integral to HCMC’s green growth vision, span diverse sectors such as technology, infrastructure, and the environment.

In terms of technology, HCMC is inviting investment in several key projects at the Saigon Hi-Tech Park (SHTP) in Thu Duc City, encompassing research and production in electronics, semiconductors, and integrated circuits. The overall investment amounts to US$190 million.

The city is also seeking investment in a US$302-million data center at SHTP.

As for infrastructure development, HCMC is in need of capital for several big-ticket projects, such as the HCMC-Moc Bai expressway valued at US$860 million, the US$602 million expansion of National Highway 13, and the US$460 million construction of Can Gio Bridge across Soai Rap River.

The city is also extending an invitation for investment in multiple environment projects, encompassing wastewater treatment, environmental enhancement, and urban improvement.

During the upcoming conference, HCMC will outline its socioeconomic growth plan, policy tools, and an initial framework for the city’s green economic development strategy. Solutions will be proposed to foster public-private partnerships and support green initiatives.

The event will serve as an opportunity for the city to promote its green growth agenda and attract essential investment for realizing its sustainability objectives.

Veggie, fruit exports hit US$459 million in first half of Jan

Exports of veggies and fruits amounted to US$459 million in the first half of January 2024, soaring 89% over the same period in 2023, according to preliminary data from the General Department of Vietnam Customs.

This optimistic start has fueled expectations for US$6.5 billion in export revenue from these items in all of 2024, said Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetables Association.

He attributed this positive trend to a significant improvement in the quality of Vietnamese fruits and vegetables that now meet rigorous international market standards.

The diverse range of fruits and vegetables available has also played a key role in this export boom. Coupled with favorable market trends in key destinations such as China and the European Union, the industry has witnessed a remarkable expansion.

This year, Vietnam aims to expand its export portfolio by introducing coconut products, watermelon, and exotic fruits, such as frozen durians, to the Chinese market. If successful, export revenue from farm produce could be boosted further, Nguyen said.

In 2023, the vegetable and fruit export sector achieved an exceptional milestone, with export revenue amounting to US$5.6 billion, up a staggering 167% compared to 2022. China was the biggest buyer with a value of US$3.6 billion, a 238% surge versus 2022.

Hanoi proposes 80% cost hike for delayed metro line section

The Hanoi City government has submitted a proposal to the prime minister requesting an 80% increase in the cost of a section of its long-stalled Metro Line No. 2 project.

The new investment estimate of the 11.5-kilometer Nam Thang Long-Tran Hung Dao section, if approved, will surpass VND35 trillion, rising by VND16 trillion compared to the original cost of VND19.6 trillion approved in 2008.

This higher cost is attributed to factors such as changes in the project’s scope, exchange rate volatility, and higher prices of fuel, construction materials, and equipment.

The project will receive over VND29.6 trillion in official development assistance (ODA) from the Japanese government, with the rest coming from the city’s budget.

Hanoi aims to complete this metro line section by 2031.

In November 2008, the city government approved the feasibility study for the Nam Thang Long-Tran Hung Dao metro line, the first part of Hanoi’s Metro Line No. 2.

At the time, the anticipated completion date for this project was set for 2015.

Vietnam’s fertilizer imports slip in 2023

Vietnam’s fertilizer imports in 2023 dropped by 12.8% to US$1.41 billion even though the import volume soared by 21.3% to 4.12 million tons.

Preliminary data from the General Department of Vietnam Customs showed that the country imported 446,560 tons of fertilizer valued at US$151.16 million in December alone, rising by 21.6% in quantity but declining by 10.5% in value compared to the previous month.

China continued to hold the top position as Vietnam’s primary supplier of fertilizer in 2023, contributing to nearly half of Vietnam’s total fertilizer imports, which amounted to 2.4 million tons worth US$662.46 million. These figures represented a 19% year-on-year increase in import volume but a 9.3% dip in value.

Securing the second position, Russia accounted for 7% of the total volume and 9.4% of the value, with 288,727 tons valued at US$132.12 million.

On the other hand, fertilizer imports from Southeast Asia, particularly from members of the Regional Comprehensive Economic Partnership (RCEP), reached 470,755 tons valued at US$168.2 million. This indicated an 80.8% surge in quantity and a 6.5% rise in value compared to 2022.

Cash flow takes early Tet break

Despite being two weeks away from the Lunar New Year holiday, market liquidity has dwindled.
 
Investors have shown little interest in channeling funds into stock purchases, resulting in the VN-Index dropping for the third consecutive session. Foreign investors have also resumed net selling, putting an end to their previous streak of ten consecutive sessions of net buying.

The stock market on January 25 witnessed sluggish trading as the cash flow disappeared. Despite a modest decrease of just over 2 points in the VN-Index, the red color dominated the market. The number of declining stocks outweighed the advancing ones, more than doubling in comparison.

The real estate construction stock group exhibited some divergence, yet the prevalence of red was still more pronounced. HBC declined by 1.53 percent, SJC dropped by 1.89 percent, while NVL, KBC, DXG, CEO, BCM, HHV, LCG, TCH, and the Vingroup trio - VHM, VIC, VRE - all experienced a nearly 1 percent drop. Conversely, NTL jumped by 5.65 percent, CTD increased by 1.19 percent, and BCG rose by 1.56 percent, while KDH, NLG, PDR, HDC recorded an increase of nearly 1 percent.

The financial and banking sector also showed a clear tendency towards the red. Specifically, BID declined by 1.02 percent, and VIB retreated by 1.2 percent; TCB, MSB, STB, HDB, VCB, and TPB slid by nearly 1 percent. The securities group had only a few stocks that managed to stay in positive territory, with CTS edging up by 1.57 percent and HCM inching up by nearly 1 percent. Meanwhile, VND, SSI, VIX, BSI, VFS, and VCI all experienced a decrease of nearly 1 percent.

On the other hand, the retail stock group exhibited quite positive trading dynamics, with FRT hitting the daily trading limit, DGW rallying by 2.61 percent, and MWG advancing by 1.8 percent.

At the end of the trading session, the VN-Index lost 2.6 points, or 0.22 percent, to close at 1,170.37 points, with 301 stocks decreasing, 140 increasing, and 117 remaining unchanged.

Concluding the session on the Hanoi Stock Exchange, the HNX-Index also went down by 0.01 point to 228.52 points, with 68 declining stocks, 81 advancing, and 78 standing still.

Market liquidity dropped significantly, with the total trading value on the HOSE reaching only around VND11.4 trillion. Foreign investors returned to net selling on the HOSE, with a net selling value of nearly VND130 billion, ceasing their previous ten consecutive net buying sessions.

Shrimp exports to China likely to rebound this year

Vietnamese shrimp exports to China are likely to recover slightly in the first months of the year following a period of decline, according to details given by the Vietnam Association of Seafood Exporters and Producers (VASEP).      

In fact, the Vietnamese shrimp industry faced numerous challenges last year with the shrimp export value dropping by 22% to US$3.4 billion.

Accordingly, shrimp exports to markets such as China, the United States, Japan, and the EU also experienced a decrease of 8%, 15%, 24%, and 39%, respectively.

Notably, China’s import demand for shrimp has significantly increased due to abundant supply sources from markets such as India and Ecuador, a factor which has led to Vietnamese shrimp facing fierce competition on price.

However, due to close geographical location, Vietnamese businesses have enjoyed advantages in terms of transportation costs.

In particular, the escalating tensions occurring in the Red Sea have caused shipping costs to increase, which in turn has led Ecuador to reduce exports to China. These factors are anticipated to create a wealth of opportunities for Vietnamese shrimp to boost exports to the northern neighbour moving forward. 

Similarly, shrimp exports to the US and Japan are also expected to enjoy advantages due to improved food demand, cooling inflation, and a rebound in retail sales.

However, the VASEP noted that the American Shrimp Processors’ Association recently submitted a request to initiate an anti-subsidy investigation into Vietnamese shrimp.

Vietnamese shrimp is likely to still be affected in the first half of this year, in addition to facing obstacles from tensions in the Red Sea.

With regard to Japan, Vietnamese shrimp has maintained its competitive advantages in this market as Japan boasts a closer geographical location than the US and EU with safer payment methods.

Although the EU market will not revive this year due to economic and political instability, shrimp demand in the region is likely to remain stable moving forward, industry insiders said. The VASEP noted that the shrimp industry is anticipated to rake in about US$4 billion throughout the year, representing an increase of 5% compared to 2023.

FTAs key in boosting export: MoIT

In a bid to achieve a targeted 6 per cent export growth in 2024, equivalent to US$377 billion, the Ministry of Industry and Trade (MoIT) outlines a strategic focus on leveraging existing Free Trade Agreements (FTAs) and signing new ones. The emphasis is on expanding and diversifying markets, products in import-export, and supply chains, with a special focus on sustainable mainstream exports linked to brand building.

According to the ministry, the global economy will likely continue to experience slowdowns in 2024, which may adversely impact developing economies, including Việt Nam. Protective trade policies, concerns about consumer safety, sustainable development and climate change effects in developed nations have led to the establishment of new standards and regulations affecting supply chains, raw materials, labour, and the environment for imported products.

Preliminary statistics from the Vietnam General Department of Customs reveal a 7.5 per cent decrease in the Southeast Asian economy's exports in the first half of January 2024, amounting to $15.1 billion. However, the export value of fruits and vegetables notably increased by 50 per cent, reaching approximately $229.37 million, compared to the same period last year.

Việt Nam's rice export, despite a decrease in quantity, surged by almost $20 million in the first half of January 2024. The average export price per tonne of rice saw a significant increase from $507 to $693, resulting in a 36.68 per cent rise in the average export value.

Trần Thanh Hải, Deputy Director of the Import-Export Department under the MoIT, said there are also favourable factors in the global and domestic economic context for import-export activities in 2024. The Federal Reserve's decision to halt interest rate hikes and potential reductions, along with the gradual decrease of inventories in many markets, presents opportunities for Vietnamese goods.

However, the ministry acknowledges unpredictable risks in import-export activities in 2024, including the rising trend of trade protectionism, changes in shipping routes due to tensions in the Red Sea, and impacts on key export products from markets prioritising sustainable products.

To support export businesses, the ministry will continue to maximise Việt Nam's leverage in existing FTAs, promote awareness of rules of origin, and facilitate the issuance of certificates of origin. Market information dissemination, focused trade promotion activities, and assistance in overcoming new trade barriers are also part of the comprehensive strategy.

Vũ Bá Phú, Director of the Trade Promotion Agency under the MoIT, said measures have been taken to improve technical support programmes in collaboration with international organisations. These programmes aim to enhance the capacity of the manufacturing sector, particularly focusing on regulations related to the Carbon Border Adjustment Mechanism (CBAM) and green standards set by Germany and the EU.

He said as 2024 unfolds with a mix of opportunities and challenges, the MoIT recommends that businesses remain vigilant and proactive, closely monitoring global and domestic production dynamics, supply and demand, and commodity prices. Timely and effective solutions are essential to achieving the set export goals in 2024 and for the 2021-2025 period. 

OCOP products serve the Tết market

With just over two weeks left until the Lunar New Year (Tết), OCOP product manufacturers are still ramping up production activities to keep pace with customer orders.

Many Tết gift baskets highlight products associated with the Mekong Delta, and producers are focusing on new designs and diversifying styles to attract consumers.

The Cửu Long (Mekong) Delta city of Cần Thơ currently has 148 products recognised as OCOP three stars or higher, from businesses, cooperatives and producers.

For this year's Tết holidays, besides OCOP products from other provinces, the Mekong Delta Specialties store has selected many OCOP products from Ninh Kiều District, Cần Thơ City, to include in Tết gift baskets to fill customers' requests.

Nguyễn Thị Ngọc Hân, a seller at the Mekong Delta Specialty store in Cần Thơ City, said that OCOP products were all certified to ensure food safety and hygiene, with barcodes, codes and traceability stamps, collective marks and certification marks, giving them a unique position on the market.

At this time, the demand for specialty products at the specialty store has increased by about 10-20 per cent compared to normal days and is expected to continue to grow in the days leading up to Tết.

Currently, in addition to traditional sales channels, OCOP products are also introduced and promoted on social networking platforms and e-commerce sites to meet a variety of customer needs.

Tết is the biggest shopping occasion of the year for consumers. This is an opportunity for businesses and establishments to expand production and increase revenue. This also creates more jobs and improves income for workers.

OCOP certified products have increasingly built trust among customers who choose to use and give them as gifts.

Tết gifts from OCOP products are also a channel to promote and introduce local OCOP products. Thanks to that, product brands are also extending their reach.

Many production facilities and display points of OCOP products in the central province of Phú Yên are bustling with trade right now. Consumers pay attention to products of clear origins, and items with unique marks that are eco-friendly and have reasonable prices.

Nguyễn Đức Thắng, Director of the Sub-Department of Rural Development under the Phú Yến Department of Agriculture and Rural Development, said that before the Lunar New Year, the province organised exhibition and product introduction events to support OCOP manufacturers seeking market access opportunities, while at the same time promoting the supply of goods during Tết at supermarkets, points of sale, and introducing OCOP products in the area.

According to Deputy Director of the Department of Agriculture and Rural Development of Phú Yên Province Đặng Thị Thủy, the local agricultural sector co-ordinated with relevant agencies and units to bring OCOP products to participate in digital transformation to seek and open domestic and foreign consumption markets.

Enterprises, cooperatives and OCOP production facilities in Ninh Thuận Province are also stepping up production to boost output, and improving product quality and design to meet consumer demand for Tết gifts.

In order to reach many potential customer segments, this year the provincial Young Entrepreneurs Association has created and designed eye-catching and luxurious OCOP Tết gift baskets that attract customers' attention.

Cao Thị Diệu Nữ, Chief of Office of the Young Entrepreneurs Association of Ninh Thuận Province, said that the association has connected with 34 manufacturers that have OCOP products and specific products in the area with about 200 different products to put in its gift baskets.

To bring OCOP products to consumers, Ninh Thuận Province is promoting links to get products into supermarkets, convenience store chains, and the e-commerce trading floor of the province at the website sanphamninhthuan.vn.

It also supports businesses and production establishments to participate in domestic and foreign e-commerce exchanges such as Alibaba, Amazon, Lazada, Tiki, Sendo, Shopee, Voso and Postmart.

To date, the whole province has more than 300 products from 92 units; of which, 123 OCOP products of 50 businesses and establishments were supported to be listed on e-commerce platforms. 

State Treasury to issue VNĐ127 trillion of Government bonds in Q1 2024

The Ministry of Finance has assigned the State Treasury to issue VNĐ127 trillion of Government bonds in the first quarter of 2024.

Accordingly, the State Treasury must preside over and coordinate with the ministry’s relevant agencies to organise the issuance of the bonds on the domestic market to raise capital for the State budget.

The State Treasury said it will closely follow the assigned capital mobilisation plan and promptly propose to the Ministry of Finance solutions to raise capital from the Government bond issuance with appropriate volume, term and interest rate to ensure sufficient mobilisation.

In 2023, the State Treasury proactively advised the Ministry of Finance on solutions to deploy capital mobilisation at reasonable costs to meet the capital needs of the State budget under the context of many fluctuations in the world economic situation and slow public investment capital disbursement. It issued Government bonds in accordance with the progress of State budget collection, disbursement of public investment capital, the need to repay due principal, and market conditions.

The Government bond issuance was implemented by bidding method through the Hanoi Stock Exchange to ensure publicity and transparency. Terms of the issued bonds were flexible with a focus on long terms of five years or more to harmonise debt repayment obligations and avoid putting pressure on the State budget.

The State Treasury also continued to restructure the Government bond debt portfolio in the direction of extending issuance terms to ensure an average issuance term target of nine to 11 years according to Resolution No. 23/ 2021/QH15 and Resolution No. 43/2022/QH15 of the National Assembly.

In 2023, the State Treasury raised nearly VNĐ298 trillion in Government bonds, reaching 98 per cent of the plan assigned by the Ministry of Finance. The average issuance term was 12.6 years with an average issuance interest rate of 3.21 per cent per year.

The total payment volume of principal and interest on Government bonds last year was VNĐ185 trillion, of which principal was more than VNĐ101 trillion. 

Vietnam receives USD16 billion in remittances in 2023

Remittances to Vietnam in 2023 reached over USD16 billion, marking a year-on-year increase of 32 percent, the State Bank of Vietnam (SBV) announced on Thursday. 

According to SBV, Vietnam received over USD206 billion in remittances between 1993-2023.Earlier, SBV's HCM City branch announced that HCM City received a 10-year record high in remittances in 2023, reaching over USD9.46 billion. Overseas remittances sent to the southern city have accounted for between 55-60 percent of the country's figure.

Explaining the rise, Deputy Director of SBV's HCM City branch Nguyen Duc Lenh was qouted by the Vietnam News Agency as saying that more Vietnamese people have gone to work abroad after the Covid-19 pandemic. At present, some six million Vietnamese people are living and working in 130 countries and territories, including over 80 percent in developed countries.

By region, remittances from Asia accounted for the highest proportion with 50.5 percent while the amount of remittances transferred from Africa and America decreased.

The post-pandemic recovery of labour, service, and tourism markets in Asian countries, along with a stable economic and political environment have had a positive impact on remittances transferred from the region in 2023 and this would continue in the coming time, Lenh said.

In addition, Vietnam’s macro economy offers a stable, favourable investment and business environment, the government and the state bank’s policy mechanisms on remittance attraction plus cultural, tourism, and sports activities drove the growth of remittances in recent times.

Moreover, the development of remittance payment networks and services of commercial banks and businesses helped attract remittances to the country and Ho Chi Minh City in particular in 2023, Lenh said.

VN should consider removing monopolies in gold import and production

Việt Nam should consider removing the monopolies in gold imports and production to ensure the transparency, efficiency and sustainability of the gold market.

National Assembly Deputy Hoàng Văn Cường said at the forum about solutions to promote the safe and sustainable development of the gold market held by Vietnam Government Portal on Thursday, that since the issuance of Decree 24 more than 10 years ago which was meant to fight back ‘goldisation’, things have changed dramatically, leaving the decade-old decree outdated.

Under the decree, the State Bank of Vietnam (SBV) has a monopoly on gold production and import, while Saigon Jewelry Company (SJC) was the sole maker of SJC-branded bullion.

Together with the general Vietnamese preference of keeping gold as a means of reserve to hedge against inflation and risks, the monopolies cause unbalance of supply and demand in the gold market, causing domestic gold prices to differ widely from world prices.

At some points, the price gap was up to VNĐ20 million a tael, which was unreasonable, Cường said.

With huge gaps in domestic and world gold prices, smuggling for profit increases, which makes it difficult to manage the gold market, causes loss to budget and poses risks to exchange rates. Speculation and manipulation are also distorting the domestic gold market, he said.

There is also no equality between gold bars and SJC-branded bullion which was guaranteed by the Government and often has higher prices, although the purities are the same.

It’s time to amend Decree 24/2012/NĐ-CP on gold trading, Cường said.

The monopoly of SJC branded gold bars is no longer necessary, he said, adding that gold should be considered a normal product.

In addition, more enterprises should be allowed to produce gold bars to improve supply and change the general psychology of hedging SJC.

Importantly, the domestic gold market should be linked to the world market, including removing the State monopoly on imports but still regulating at appropriate levels to ensure balance of foreign currencies and manage exchange rates, he said.

The gold trading market should be developed with a diversification in methods rather than physical gold, such as gold derivatives and certificates, which would help ensure flexibility in management and prevent the hoarding of physical gold in safes.

“It’s time Việt Nam developed radical solutions and made bold changes in management to promote the transparent development of the gold market. The equality of physical gold and the removal of SJC-branded bullion’s monopoly should be considered.”

“Gold should be considered a normal product. The State will still have to manage the gold market, but in a different way,” he stressed.

Nguyễn Thế Hùng, Deputy President of Việt Nam Gold Trading Association, said that in major economies, central banks do not manage gold trading directly, as gold is considered a normal product.

Economist Trần Thọ Đạt said that it is necessary to have solutions to unleash the huge volume of physical gold kept in safes of residents, which is estimated to total around 400 tonnes.

The jewellery gold market has high potential, Đạt said, adding that policies should be raised to promote this market, including reducing import tax rate on material gold from currently one per cent to zero.

He cited statistics that Việt Nam exports around US$2 billion worth of jewellery gold, modest compared to $8-10 billion export values of other countries in the region.

At a conference to implement 2024 tasks early this month, the SBV said that it will propose the Government replace the outdated Decree 24.

As gold prices skyrocketed to a peak of VNĐ80.35 million a tael last month, Prime Minister Phạm Minh Chính on December 27 send an official dispatch asking the central bank to take measures to manage the gold market in order to prevent ‘goldisation’ and negative impacts on exchange rates, interest rates, monetary markets and foreign currency market, as well as ensuring national financial and monetary security. 

South Korean firm to build aircraft component plant in Danang

South Korea’s KP Aero Industries Co., Ltd will invest US$20 million to develop an aircraft components manufacturing plant in Danang City.

On January 25, the Danang High-Tech Park and Industrial Zones Management Board gave approval to the project. Set to commence in early February, the project will produce essential components for Boeing 787 and Boeing 737 Max aircraft.

The forthcoming facility will cover the full spectrum of manufacturing, processing, and assembly of critical aircraft components, including APU doors, MIC tips, wingboxes, winglets, and flap support fairings.

With a completion date projected for the end of 2024, the plant is poised to make a substantial contribution to Vietnam’s burgeoning aerospace sector. KP Aero Industries Co., Ltd, armed with extensive experience and key partnerships with industry titans such as Boeing, Airbus, and Korean Air, positions itself as a formidable player in the regional aerospace landscape.

This marks the second aerospace investment in Danang’s high-tech park, following in the footsteps of UAC Vietnam Company.

In 2023, the Danang High-Tech Park and Industrial Zones Management Board greenlit 19 projects, with a total investment of US$258.6 million.

This year, the board aims to attract a minimum of three projects, collectively injecting around US$200 million into vital sectors such as aerospace technology, semiconductor microelectronics, and top-tier healthcare.

Vietnam’s auto imports plummet in 2023

Vietnam saw a 32% year-on-year decline in imports of completely built-up (CBU) automobiles last year, with a total of 117,800 units.

The total value of CBU imports edged down by 27% compared to the previous year to over US$2.8 billion, according to the General Statistics Office (GSO).

The number of locally produced and assembled cars also decreased by 27% year-on-year to 347,700 units. The number of domestically produced automobiles in the market remained three times higher than imported vehicles.

The downward trend was attributed to various challenges faced by the auto industry, including macroeconomic headwinds, industry-specific hurdles, and heightened competition in the market.

On average, the Vietnamese market saw some 950 locally manufactured automobiles being added daily in 2023, along with about 320 imported CBU cars, according to GSO data.

In the second half of 2023, the auto market showed some positive signs, partially due to a 50% reduction in car registration fees for domestically assembled cars, as provided in the Government’s Decree 41 issued on June 28, 2023.

Danang seeks to offer more flight options for Indonesian tourists

Danang City is actively working to improve flight connectivity between the central coast city and Indonesia in a bid to increase tourist arrivals from Indonesia.

Various flight solutions are being explored, including charter and direct flights, to make it more convenient for Indonesian tourists to travel to Danang.

In 2023, Indonesian visitor arrivals in Danang exceeded 26,000, accounting for about a quarter of all Indonesian visitors to Vietnam.

The city has intensified its promotional efforts, with a specific focus on Indonesia’s Muslim tourist market and the development of Halal services.

In early January, authorities in Danang arranged a familiarization tour (FAM) for a group of 35 people from various Indonesian cities. The program was organized by the Danang Tourism Promotion Center, in collaboration with the Danang Tourism Association and the Association of the Indonesian Tour and Travel Agencies (ASITA).

The FAM group was taken to popular destinations in Danang and other provinces in the central region, including the Marble Mountains, the Museum of Cham Sculpture, and the ancient town of Hoi An.

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