Lotte Duty Free and Modetour - tourism service businesses from the Republic of Korea (RoK), signed a Memorandum of Understanding (MoU) in Seoul on January 26 to strengthen joint marketing efforts toward promoting the tourism market in Vietnam.

Under the agreement, the two will work together to develop new product packages combining duty-free shopping and tourism in the Southeast Asian nation.

Amid many tourist destinations in Vietnam favoured by RoK visitors such as Da Nang, Nha Trang, Phu Quoc, and Da Lat, the two firms have co-operated to create synergy such as expanding customer interaction points and developing products aimed at serving tourists and combining duty-free shopping and tourism.

Lotte Duty Free and Modetour have outlined a cooperation plan to promote tourism in Vietnam by coming together to sell package travel products nationwide.

They are set to deploy joint marketing activities, including advertising and using social network services, while simultaneously setting up close linkages in a bid to ensure development strategies and long-term benefits for both sides.

Statistics show that by 2023, the highest proportion of passengers from Southeast Asia in the total number of passengers on package tours provided by Modetour stood at 53%. The rate of visitors to Vietnam was the highest among the Southeast Asian nations, with 44%.

Lotte Duty Free currently operates four branches in the Vietnamese market, including two in Da Nang, one in Nha Trang, and the other in Hanoi. In 2023, Lotte Duty Free's annual sales in Vietnam increased by 351% year-on-year, with Korean tourists making up about 60%.

Lee Seung-jun, head of Lotte Duty Free’s overseas business department, said in response to Korean tourists’ growing demand for duty-free shopping in Vietnam, particularly after the COVID-19 pandemic, the firm has partnered with Modetour to enhance customer benefits.

Lee Woo-Yeon, director of Modetour's Southeast Asia business division, said as Vietnam is one of the most popular destinations for RoK travelers, Modetour expects to provide better services through this MoU with Lotte Duty Free.

Association connects overseas Vietnamese businessmen for homeland’s developmemt

The Overseas Vietnamese Businessmen Association on January 27 held its 4th congress in Ho Chi Minh City to review its operations in the 2018-2023 tenure and set out directions and tasks for the 2023-2028 period.

Addressing the event, Nguyen Manh Dong, Vice Chairman of the State Committee for Overseas Vietnamese Affairs, affirmed that the Party and State always consider the Vietnamese community abroad as an inseparable part of the nation, and that the community’s growth will contribute to affirming the country's position.

He acknowledged and thanked the association for its positive and important contributions to economic growth as well as other achievements of the homeland.

The association had many practical and effective activities, especially of trade promotion and those to connect businesses, and developed distribution channels for Vietnamese goods abroad, he said.

It actively mobilised 200 billion VND (over 8.1 million USD) from OVs and businesses to support volunteer activities, especially during the fight against the COVID-19 pandemic in the homeland, he added.

Dong expressed his belief that the association will constantly strive to innovate activities, strengthen solidarity to accomplish its set goals.

He pledged that the committee will continue to closely accompany the association and all of its members, striving to build an increasingly strong community of Vietnamese people abroad, contributing to promoting industrialisation, modernisation and international integration of Vietnam.

The congress passed a resolution emphasising the need for innovation in organisation and operations, and expanding operation towards forming a global network to further promote cooperation between Vietnam and other countries in the fields of economics, trade, science and technology.

Grouping over  400 members from 40 countries and territories, in recent years, the association has effectively implemented hundreds of investment and trade promotion activities, helping introduce and promote Vietnam's exports. The organisation mobilises OVs and the Vietnamese business community abroad to send remittances worth 19 billion USD in 2023.

Dien Bien province’s tourism expected to take off

With its potential and advantages, the northwestern province of Dien Bien is striving to turn tourism into an economic spearhead.

According a resolution adopted at the provincial Party Congress for 2020-2025, Dien Bien’s tourism development will be based on the main pillars of historical and spiritual tourism, cultural and eco-tourism, and resort and medical tourism.

The complex of the Dien Bien Phu battlefield shows the vestiges of the Dien Bien Phu victory on the afternoon of May 7, 1954, which played a decisive role in ending the resistance war against French colonialists.

With 45 relics, the complex has attracted crowds of visitors and it has been seen as a magnet to tourists.

Besides, Dien Bien is home to 19 ethnic groups, each boasting its own cultural traits, along with 33 cultural relic sites that have won either national or provincial recognition, and 18 national intangible cultural heritage elements, including UNESCO-recognised Thai Xoe dance art and Then singing.

Tua Chua district is projected to become a national tourist site, and form part of the Dien Bien – Son La – Lai Chau tourism connectivity.

To spur local tourism and affirm its brand, Dien Bien has organised a range of activities like the Ban Flower Festival, the En boat racing festival and a paragliding event.

The Ban Flower Festival, a highlight of the National Tourism Year 2024, is set to open in the province on March 16.

Spanning from March 13 to 18, the festival boasts a diverse lineup of activities, including an incense offering ceremony at the Dien Bien Phu martyrs' memorial temple, the launch of the National Tourism Year 2024 featuring a music extravaganza and a high-altitude fireworks display, and a photo contest showcasing the resplendent Ban flower landscape. The event also hosts a show of traditional costumes of ethnic groups, an ethnic sports competition, an exhibition featuring cultural and tourism products, and activities to connect tours and travel routes.

Festival-goers can expect to immerse themselves in the rich cultural tapestry of the northwestern mountainous region, with offerings such as a market space spotlighting distinctive local agricultural products, a competition featuring traditional folk games like seesawing, con throwing, stilt walking, blindfolded tag, and sack racing.

Additionally, traditional folk songs, dances and music, including the unique art forms of Then and Xoe performed by ethnic groups like the Thai, Tay, Mong, Ha Nhi, Kho Mu, Xi La, Lao, and Xa Phang, will be performed.

Deputy Director of the provincial Department of Culture, Sports and Tourism Nguyen Thi Thanh Chuyen said since 2021, Dien Bien has injected over 8 trillion VND (325.72 million USD) in infrastructure development associated with tourism development.

Last year, the number of tourists to the province hit a record high of 1 million, up nearly 25% year-on-year. Its tourism revenue exceeded 1.75 trillion VND, according to the official, calling the figures a rosy sign for local tourism to create breakthroughs this year.

In 2024 when Dien Bien hosts the National Tourism Year, the locality expects to welcome 1.3 million visitors and earn some 2.2 trillion VND from the sector. The numbers are set to reach more than 1.45 million and 2.38 trillion VND, respectively, in 2025.

Notably, the expansion of the Dien Bien Airport was completed in late 2023, giving a huge push to local tourism to take off.

Nguyen Thanh Son, Deputy General Director of Vietjet Air, pledged that apart from domestic flights, the carrier will operate those from Japan, the Republic of Korea (RoK), Australia and European nations to Dien Bien.

Chairman of the provincial People's Committee Le Thanh Do said in 2024, with nearly 170 major events, Dien Bien will create new opportunities to call for investment in tourism, thus creating breakthroughs in socio-economic development.

Airlines add new aircraft for busy Tet season

Airlines in Vietnam have expanded their fleets to address the surge in demand during the Tet Lunar New Year Holiday. 

One of the four aircraft that Vietnam Airlines has just added to its fleet to serve the rising demand during Tet holiday.
Vietnam Airlines has announced that it added four new Airbus A320 aircraft to its fleet, increasing its capacity for the Tet Lunar New Year Holiday.

The added aircraft will help Vietnam Airlines operate nearly 1,000 more flights during the holiday.

According to Vietnam Airlines Group, their three airlines including Vietnam Airlines, Pacific Airlines and VASCO will provide 2.86 million seats on both domestic and international flights during the Tet Holiday, including over 1,300 added flights operating in the early morning or late evening hours.

Earlier this month, Bamboo Airways also added two Airbus A320 aircraft to its fleet to serve the passenger increase of 20 percent during the coming holiday.

Bamboo said that several high-demand routes have been almost fully booked including the HCM City-Thanh Hoa, Vinh, Haiphong, Hue, Quy Nhon routes and the Hanoi-HCM City and Danang services.

Vietjet Air has also added four aircraft.

According to the latest announcement of the Civil Aviation Authority of Vietnam, local airports, especially Tan Son Nhat Airport, are expected to serve more flights and passengers this Tet compared to the same period last year. Congestion may occur at times.

The Tet holiday will last seven days from February 8 to 14, 2024.

HCM City seeks to build 35,000 social housing units

HCM City is seeking to build 35,000 social housing units with 2.5 million square metres of floor space by 2025, the People's Committee of the southern economic hub said.

Around 7,000 apartments for lease with 500,000sq.m and 4,500 to be sold to workers with 220,000sq.m will be built by 2025.

It also plans to build 50 million sq.m of social housing by 2025 and 57.5 million sq.m in the following five years to increase housing to 10sq.m per person by 2025 and 12sq.m by 2030.

The city plans to develop about 15.5 million sq.m of floor space for social housing by 2025, and 21.4 million sq.m of floor space for commercial housing by 2030.

In the following five years from 2026 to 2030, the city will build 58,000 social housing units with 4.08 million sq.m of floor space, including 11.600 lease houses with 816,000sq.m of floor space and 8,000 accommodations for workers with 480,000sq.m of floor space.

By 2030, an additional 31.9 million sq.m of floor space for separate houses for households will be added.

The city has identified housing development as one of the most important factors in its socio-economic development.

It strives to address the bottlenecks slowing down development of social housing to meet the rising demand for affordable houses, create better living conditions to attract more high-quality workers and retain them to live and work in the city.

All sectors are encouraged to invest in housing development, especially social housing and low-cost housing.

The city prioritises the allocation of public investment capital from the State budget to social housing projects with lease or hire-purchase units, and seeks to increase the proportion of rental housing in the affordable housing segment.

Capital for the city’s housing development is expected to be raised from sources such as private enterprises, credit institutions, the accumulated capital of households and other sources.

Meanwhile, capital for social housing development will mainly be taken from private enterprises, preferential credits, and about 10 per cent of the city's budget.

Although some initial results have been achieved, in general, social housing development in HCM City has not been as effective as expected and goals have not been met due to many difficulties.

From 2021 until now, the city has only completed and put into use two social housing projects with a scale of 623 apartments. Currently, the city is implementing six social housing projects with a land area of 9.36ha with a total floor area of 298,714sq.m, 3,956 apartments and other worker accommodation projects in Thủ Đức City with an area of two hectares, with a total floor area of 93,932sq.m for 1,040 apartments.

Difficulties mainly arise due to complicated investment procedures for social housing projects such as the procedures for approving investment policies, recognising investors, approving detailed plans at a scale of 1/500, investment approval, land allocation, land use fees and additional procedures such as appraisal of the selling price of social housing, confirmation of buyers, lease-purchase of social housing, and cost audits to confirm the profit margin take a lot of time for the investor, so the desired progress has not been achieved.

There are also many other reasons such as social housing project investors are not proactive in securing capital sources, so the construction progress is long; the incentive mechanism for social housing investors is not attractive, so it does not attract many investors to participate; housing development projects serving workers have large investment capital, while the capital recovery period is quite long (from 10 to 15 years), making many investors hesitant.

The city plans to spend about VNĐ3.8 trillion (US$160 million) for social housing from now to 2025, and VNĐ8.6 trillion ($366.8 million) for social housing in the 2026-2030 period.

It will develop high-rise buildings, increase the proportion of apartment buildings, give priority to developing housing projects in new urban areas, limit new housing projects in the central areas, and create land funds for transport projects, public parks and parking spaces.

The municipal People's Committee has proposed to remove difficulties and obstacles in social housing construction related to site clearance, compensation, technical infrastructure investment, and other legal costs.

It has recommended the allocation of these costs to the land fund for social housing construction when investors of commercial housing projects hand over 20 per cent of their residential land fund to the State for social housing development.

The city also needs guidance on applying legal regulations on implementing social housing obligations when adjusting project implementation progress and on determining members of households as beneficiaries of social housing policies. 

Retailers offer discounts to stimulate demand

Supermarkets, commercial centres and convenience stores are offering various sales promotions with deep discounts to stimulate shopping demand and increase sales for the Tết (Lunar New Year) holiday that begins on February 8, according to the municipal Department of Industry and Trade.

Major retailers in the city have bolstered stockpiles of goods and launched huge discounts on thousands of essential products for the Tết holidays.

A representative of MM Mega Market said it increased total stocks, continuously working with suppliers to maintain supply-demand balance and bringing high-quality products at stable prices throughout Tết.

It offers huge discounts with prices up to 70 per cent off, focusing on essential products for Tết such as rice, sugar, salt, and cooking oil.

MM Mega Market is launching nearly 30 gift packages, including special Tết products such as wine, beer, soft drinks, cakes, nuts, and dried fruits with attractive promotions of up to 11 per cent off for B2B agencies, factories, restaurants, hotels, and offices.

It also extends its opening hours from 6am to 10pm throughout the upcoming festival. 

Around 7,600 tonnes of agricultural products are transported to three major wholesale markets in the city a day, including 800 tonnes of meat, 1,200 tonnes of seafood and 5,600 tonnes of fruit and vegetable. 

The volume of goods transported to wholesale markets is expected to increase by 80 per cent a week prior to Tết holiday compared to normal days.

Vissan JSC, which processes and sells fresh and frozen meat and processed foods, said the volume of goods it supplied to the market this Tết holidays increased by 5 per cent compared to the same period last year.

Nearly 1,100 tonnes of fresh foods and 3,800 tonnes of processed foods worth VNĐ540 billion (US$21.8 million) will be supplied to the market for Tết.

Bùi Tá Hoàng Vũ, director of the department, said the department issued a plan on implementing its price stablisation programme covering essential goods for Tết holidays six months ago.

Business communities in the city have partnered with the price stalisation programme to ensure sufficient supply and stable prices for essential goods commonly consumed during the Tết festival, Vũ said.

The industry and trade sector has worked with the General Department of Market Surveillance and authorities in Thủ Đức City and districts to monitor price listings and inspect and control low quality goods and goods without clear origin prior to and during the festival, he said.

Spending for Tết holiday is projected to surge by 10 per cent compared the same period last year, according to the Ministry of Industry and Trade.

The volume of goods stockpiled for Tết rose by 10-25 per cent from previous months to meet the rising demand, the ministry said. 

Upstream enterprises in oil and gas industry see bright prospects this year

Although average prices of crude oil are forecast to decrease this year from 2023, business activities of Vietnamese upstream oil and gas enterprises are expected to continue to record positive results.

Many major global organisations, including the World Bank (WB), the US Energy Information Administration (EIA) and S&P Global, have lowered their crude price forecasts to around US$81-85 a barrel due to less positive macroeconomic data globally and rising crude supplies, especially from countries outside the Organisation of Petroleum Exporting Countries (OPEC).

This year's expected oil prices are much lower than the peak of $96.6 a barrel at the end of last September, but they are still at relatively stable support levels for the entire value chain of Việt Nam's oil and gas industry.

According to MB Securities (MBS), 2024 is expected to see many positive signs for the country's oil and gas upstream businesses.

In recent years, oil and gas exploration and exploitation activities in Việt Nam have been relatively subdued, even though oil prices remain higher than the breakeven points of $55 a barrel. Domestic oil production has consistently been lower than in previous years, while the gas shortage has become increasingly severe in the last two years.

“The exploration and extraction activities in new oil and gas fields are deemed essential because the existing fields are late in the production phase, with high water flooding and a natural decline in production of approximately 15-25 per cent a year,” said MBS.

“In the latter half of 2024, we expect a revival in the exploration and extraction operations as several significant projects are forecasted to be implemented. This will present substantial employment opportunities for domestic oil and gas businesses, with potential in drilling operations, construction, installation, maintenance and other related services.”

Among the upcoming upstream oil and gas projects, the Block B - Ô Môn gas-to-power project chain has the largest total investment and is receiving the most attention from the market.

Although the Final Investment Decision (FID) for this project was not approved in 2023 as expected and has been postponed to the first half of 2024, moves to award limited agreements to carry out parts of the work before getting the FID have shown some of the negotiation efforts of the parties involved.

Work related to a series of upstream projects is currently being actively implemented with the most recent information coming from the Lạc Đà Vàng field with FID (November 2023) and the EPCI#3 package of Block B - O Mon, promising to provide a source of work for businesses in the upstream oil and gas sector, especially PetroVietnam Technical Services Corporation (PVS).

Currently, the company has been awarded limited contracts for packages EPCI#1 ($1.1 billion) and EPCI#2 ($400 million), and the tasks within these two contracts will be implemented this year. Additionally, the sustained crude oil price at above $80 per barrel will ensure profitable operations for the company's FSO/FPSO floating storage and offloading rental business.

Meanwhile, PetroVietnam Drilling & Well Services Corporation (PV Drilling) plans to lease jack-up rigs abroad until the end of 2024, but it is expected to still benefit from the above projects by undertaking the workload related to oil and gas drilling services in the period after 2024.

In the domestic market, there are currently about 13 rig tenders but most of these drilling campaigns are relatively short.

In 2024, the drilling market is expected to become more active with larger-scale drilling campaigns as several major upstream projects are implemented, such as Lạc Đà Vàng, Sư Tử Trắng 2B, and Block B - Ô Môn. 

Vsign system provides more features to support businesses in declaring C/O of goods

The E-commerce Development Centre, Ministry of Industry and Trade (MoIT), has developed the Vsign system to help import-export businesses reduce the time looking up information to perform work easier and faster.

Vsign (at www.vsign.vn) is a website that provides solutions to support businesses using digital signatures and printing Certificate of Origin (C/O) form AI according to the standards of the Ministry of Industry and Trade. C/O form AI is a preferential C/O type issued for goods originating from Việt Nam when exported to India and ASEAN member countries based on the ASEAN-India Free Trade Agreement (AIFTA). Goods with C/O form AI will enjoy preferential import/export tax policies under the AIFTA.

The Vsign system recently has added more convenient management features for businesses when printing forms on A4 paper automatically, printing C/O applications or looking up the electronic C/O, C/O fees or fee payment receipts.

According to the centre's representative, on January 9, 2024, the MoIT’s Import-Export Department announced the issuance of a C/O form AI within the framework of the ASEAN Trade in Goods Agreement (AITIGA) for Việt Nam's export goods. Therefore, at the request of Indian customs authorities, C/O issuing organisations continue to issue C/O paper form AI for goods exported to member countries of the AITIGA Agreement. The process and procedures for issuing C/O comply with the provisions of Article 16 of Decree 31/2018/ND-CP dated March 8, 2018, detailing the Law on Foreign Trade Management on goods origin.

Specifically, after being approved electronically on the ecosys system, traders print C/O form AI stated in Notice No 257/TB-BCT dated October 10, 2022, of the Ministry of Industry and Trade on printing Certificates of Origin on regular A4 paper and submit the paper copy to the agency or organisation issuing the C/O.

For shipments that have been issued electronic C/O form AI from January 1, 2024, to the present, the MoIT’s Department of Import and Export has requested Indian authorities to temporarily accept them so that Vietnamese exports can enjoy preferential tariffs and the department will reissue a paper C/O with the ink signature and stamp of the C/O issuing organisation.

Therefore, the issuance of electronic AI form C/O will be announced by the MoIT's Import-Export Department after reaching an agreement with India and ASEAN member countries at the upcoming AITIGA Agreement Implementation Session.

In 2023, the E-commerce Development Centre supported more than 30,000 businesses with 100,000 declarations and printing of C/O forms from the Vsign system. 

The E-commerce Development Center recommends that if businesses encounter problems related to electronic C/O issues, they can send a request to Vsign.vn website for in-depth support through three support phone numbers, including (024) 62705538; Hà Nội (024) 22205513; HCM City (028) 39152880 and email: dangkyca@ecomviet.vn. 

Clinker and cement exports rake in over US$1.32 billion

Vietnam grossed more than US$1.32 billion from exporting more than 31.3 million tonnes of clinker and cement last year, suffering a fall of 1.2% in volume and 4.1% in value, according to statistics released by the General Department of Vietnam Customs.      

The average export price dropped by roughly 3% to nearly US$42.4 per tonne, down by approximately 3% against the same period from last year.

December alone witnessed Vietnamese clinker and cement exports reach more than 2.53 million tonnes, earning nearly US$98 million, up 0.9% in volume and down 3% in value compared to November, 2023.

With regards to export markets, the Philippines took the lead by accounting for 27% of the country’s total export turnover, followed by Bangladesh at 17%, and Malaysia at 5.2%.

The decline in cement & clinker exports can largely be attributed to the fact that China reduced import demand, dropping by 90% over the same period from last year. 

In contrast, Bangladesh has recorded robust growth as cement and clinker exports to Vietnam soared by 40% on-year thanks to increased investment in infrastructure.

Australia also boasted high demand for importing these products last year, importing nearly 470,000 tonnes of clinker and cement from the Vietnamese market, equivalent to US$23.4 million, a rise of 135% in volume and 120% in value.

Australia's cement imports before 2013 were mainly from China, making up 48% of the overall figure; Taiwan (China) at 43%, and Thailand at 7%.

However, since 2013 Vietnamese cement and clinker products have gained a firm foothold within the Australian market, with their market share increasing sharply.​

Exporters advised to focus on major markets to complete set target

In order to achieve the target of 6% rise in exports this year, exporters are advised to maintain major markets such as the US, the EU, Japan, the Republic of Korea and China.

This year, the Ministry of Industry and Trae (MoIT) aims for 337 billion USD in export revenue, with a trade surplus of about 15 billion USD.

Experts held that markets that decide the export growth of Vietnam include the US, China, the EU, and ASEAN countries.

Ta Hoang Linh, Director of the MoIT’s European-American Market Department, underlined that the Europe and America have still been important markets for Vietnamese products, especially electronics, footwear, garment and textile, wooden products, and farm produce.

Meanwhile, 2023 was the third consecutive year that the import-export revenue between Vietnam and the US had exceeded 100 billion USD. Particularly, US President Joe Biden’s visit to Vietnam and the upgrade of the bilateral ties to a comprehensive strategic partnership have created opportunities for Vietnam’s exports to this market, he said.

At the same time, exports to Asian-African markets last year reached 183 billion USD, similar to that in 2022, accounting for 51% of Vietnam’s total export revenue, Linh noted.

MoIT Deputy Minister Phan Thi Thang highlighted that when Vietnam’s exports to other region dropped, the results in the Asian-African regions were still maintained, which is a foundation for the further expansion for following years.

For China, one of the most important export markets of Vietnam, last year, the country spent 3.4 billion USD on importing Vietnam’s fruits and vegetables. The country will open its door for Vietnam’s frozen fruits and vegetable and fresh coconuts in the coming time.

Many organisations have forecast that this year, the economy of the world and European countries is likely to see a lower growth than in 2023, while the European market has heightened its standards for imports. Therefore, experts held that Vietnamese exporters should continue improving the quality of their products to maintain their market shares.

A recent survey conducted by the General Statistics Office showed that 24.6% of the businesses expect increase in the number of new export orders, while 46.8% predict stable order number, and 28.6% foresee a decrease.

The Singapore-based ASEAN 3 Macroeconomic Research Office (AMRO)’s report forecast that this year, Vietnam will post a 6% economic growth thanks to export recovery.

Meanwhile, VinaCapital predicted that Vietnam’s export growth will recovery from a fall of 4% in 2023 to a rise of 7% in 2024./

Increasing number of new firms gives rosy signs to national economy

The number of new enterprises and those resuming their operation this month reached 27,335, up 5.5% year-on-year, and more than 1.3 times higher than the average figure in the 2018-2023 period, statistics show.

According to the Business Registration Management Agency under the Ministry of Planning and Investment, 13,536 firms were established in January, a rise of 24.8% from the same period last year, the highest ever recorded for the first month of each year. They added 151.45 trillion VND (6.16 billion USD) to the national economy, a year-on-year increase of 52.8%.

Notably, the recovery pace of the average registered capital has been maintained since November 2023 with 11.2 billion USD per enterprise, up 22.4% year-on-year, the agency said.

The strong recovery signs were seen in such field as real estate, information and communications, processing and manufacturing, and agriculture-forestry-fishery.  

Experts said the figures reflect businesses’ increasing confidence in policies applied by the Government.

However, up to 43,925 firms suspended operation in January, up 25.5%, the highest ever for the first month, raising the total number of those withdrawing from the market this month to 53,888, up 22.8%.

Ha Manh Cuong, Director of Hamakyu Co.,Ltd., pointed to opportunities for businesses, including those generated by free trade agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA).

He suggested ministries, agencies and localities further support the business community to optimise such deals, while seeding up the signing of others that are under negotiations, in order to boost exports.

Vu Duc Giang, Chairman of the Vietnam Textile & Apparel Association, forecast that the domestic garment-textile sector will grow 9.2% to hit 44 billion USD this year.

With advantages in population, the presence of many world leading groups like Samsung, LG, Foxconn, Panasonic, and Canon and comprehensive strategic partnerships with the US, the Republic of Korea, and Japan that are strong in semiconductors, Vietnam has favourable conditions to foster the industry this year, experts said.

They suggested domestic firms pay more attention to raising their administration capacity and product quality, and revamp their production and business models in anticipation of the wave of investments in high-tech.

Rubber group aims for higher profit in 2024

Although 2024 is forecast to be a challenging year for the rubber sector, posed by unfavourable weather conditions and unpredictable market development, the Vietnam Rubber Group Joint Stock Company (VRG) is still eying over 4.1 trillion VND (166.6 million USD) in pre-tax profit, up 2.2%  year-on-year.

The group’s after-tax earnings is expected to grow 0.9% to more than 3.43 trillion VND.

It has set the targets of producing 445,000 tonnes of latex, purchasing over 75,000 tonnes of latex material, and selling more than 520,000 tonnes of latex.

Timber and latex productivity is estimated to rise by 1% to 89% from 2023, while the production of the rubber supporting industry goods such as gloves, conveyor systems, sport balls, latex mattresses and pillows are expected to increase 6%.

Besides, the group is aiming for leasing 245 hectares of industrial parks, or 468% of the figure recorded in 2023.

According to VRG General Director Le Thanh Hung, to realise the set goals, the group will keep a close watch on the market developments so as to have flexible solutions to sale, inventories and prices.

Harmonious and effective measures will be rolled out, aimed at completing production-consumption targets, he said, adding the group will pay due attention to sustainable rubber forest management in accordance with national and international standards, and carry out green growth and sustainable development solutions in order to bring about high brand and economic values this year.

The group has unveiled its Green Growth and Sustainable Development Strategy for 2023–2030 with a vision to 2050 that encompasses three goals of economic development, environmental protection, and social responsibility.

The strategy targets a minimum 15% reduction in greenhouse gas emissions from energy use by 2030 and 30% by 2050.

The VRG also plans to greenify its supply chain to meet the stricter sustainability requirements from customers.

The goal is for 60% of its rubber cultivation area and production forests to obtain national and international sustainable forest management certifications (VFCS/PEFC/FSC) by 2030 and 100% by 2050.

By 2030, all rubber latex processing factories will achieve chain of custody certification, and all manufacturing plants (rubber latex, wood, rubber-based industrial products) by 2050.

State Treasury to auction 400 trillion VND worth of government bonds this year

The State Treasury has announced that it plans to raise 400 trillion VND (over 16.25 billion USD) worth of government bonds via auctions on the Hanoi Stock Exchange (HNX) this year.

In the first quarter of this year, it will offer about 127 trillion VND worth of government bonds.

The agency 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 raised nearly 298.5 trillion VND in Government bonds, reaching 98% 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 year.

The total payment of principal and interest on government bonds last year was 185 trillion VND, of which principal was more than 101 trillion VND.

56 Vietnamese exhibitors participate in Ambiente Frankfurt 2024

A total of 56 Vietnamese enterprises showcased their products at Ambiente 2024 - a leading exhibition fair on consumer goods and gifts in the world that is underway from January 27-30 in Frankfurt, Germany.

Joining the event, Vietnamese enterprises expect to expand their exports to the EU – a major market of Vietnamese handicraft products that accounts for about 30% of the total.

Vice President and Secretary General of the Vietnam Handicraft Exporter Association Le Ba Ngoc said that the Russia-Ukraine conflict and instabilities in the Middle East and the Red Sea have affected the number of visitors to Ambiente 2024. However, almost all Vietnamese businesses participating in the event won orders.

In the handicraft industry, Vietnam has strengths in bamboo and rattan products. Of the 56 businesses attending Ambiente 2024, nearly 30 involve in bamboo/rattan products. However, their designs are not diverse very much.

On this occasion, Vietnam also aims to introduce to international partners its Vietnam Lifestyle exhibition, scheduled to take place in Ho Chi Minh City in October 2024, Ngoc said.

Ambiente Frankfurt 2024, covering over 360,000 sq.m, attracts nearly 5,000 exhibitors from 170 countries who introduce the latest trends and most innovative consumer products in four display areas - kitchenware, furniture, gifts, and office items. It meets the needs of retailers and end consumers, from materials and equipment to models and solutions.

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