Besides the factors of price, product quality and delivery time, green and sustainable development are competitive criteria that more and more markets are requiring from suppliers in Ho Chi Minh City as well as across the country.

Although manufacturing enterprises in the city are constantly striving to contribute to the recovery of economic growth, many domestic and foreign challenges are affecting businesses.

According to experts, the current global economic context requires manufacturing enterprises to convert production according to market trends, especially product standards that must meet consumer tastes.

Conflicts around the world such as between Russia and Ukraine are creating a series of new difficulties for manufacturing businesses.

In addition, the challenges of inflation, consumer markets and technical barriers are also challenges for manufacturing enterprises to quickly adapt to new market trends.

The EU market has introduced a series of new policies on ecological products, expanding responsibility for manufacturers, supply chain traceability, recycling and special requirements to reduce carbon emissions.

When these series of policies are issued, they will require all countries exporting to the EU market to comply. Obviously, this is a big challenge for manufacturers, including Vietnam. If Vietnamese businesses want to participate in the supply chain, there is no other option than to comply with consumer regulations.

Bui Ta Hoang Vu, director of the City's Department of Industry and Trade, said the City's index of industrial production (IIP) in June increased only 0.3% over the previous month and increased 7.8% over the same period a year ago.

Meanwhile, the IIP index in the first six months of the year reached a growth rate of 5.6% over the same period last year, the biggest increase in the last three years.

However, the production index of four key industries including pharmaceutical chemistry, food processing, mechanical engineering, and electronic manufacturing in the first six months of 2024 increased by 5% over the same period, 0.6 percentage points lower than the industry-wide IIP.

The production index of the three traditional industries of clothing, textiles, leather and leather products decreased by 2.3% over the same period.

These statistics show that industrial production activities in the City are recovering but may not be sustainable.

Faced with these difficulties, manufacturing enterprises need to proactively change strategies in accordance with market trends and improve quality to meet increasingly strict production standards, experts said.

Nguyen Anh Duc, Chairman of the Association of Vietnam Retailers and general director of Saigon Co.op, said that switching to production that closely follows market trends is no longer an option but a mandatory requirement. Currently, businesses that want to survive and develop sustainably must overcome "green production" criteria such as meeting waste treatment standards, energy-saving production and waste recycling solutions.

Besides price, product quality and delivery time, green and sustainable development are competitive criteria that more and more global markets are demanding from suppliers.

In additional, applying digital transformation in production and distribution activities is also one of the big challenges for domestic businesses, Duc added.

Many micro, small and medium-sized enterprises do not prioritise greening in production because of many limitations such as human resources and access to capital.

According to a survey by the Ministry of Planning and Investment, 98% of domestic micro, small and medium enterprises face many difficulties in changing their business models to green standards and applying digital transformation.

Therefore, most small and medium-sized enterprises have only just learned about green production models and digital transformation applications without taking actions towards sustainable development.

There are many barriers to carrying out green development, especially micro, small and medium sized units. About 70% of businesses have not been made fully aware of green development and the benefits of pursuing a circular economy.

Foreign retailers possess advantages in terms of capital, technology and expertise, and domestic enterprises are at a disadvantage when trying to go digital, he said.

To enhance their position in the market, manufacturing enterprises need to promote investment in research and development, technological innovation and improvement of production processes according to green and circular trends. Manufacturing businesses also need to focus on building and protecting brands, improving management capacity and developing effective distribution channels.

Manufacturing enterprises also need to change their management style and apply digital transformation to have a continuous flow of data to the factory so that leaders can update and make timely decisions to meet requirements.

In addition to the efforts of businesses, government support also plays an important role.

Policies on capital support, cooperation promotion, infrastructure investment and trade defense capacity enhancement also play an important role in promoting the sustainable development of businesses./.

Vietnam spends 1.53 billion USD on importing cotton in H1

Vietnam imported 766,000 tonnes of cotton worth 1.53 billion USD in the first half of this year, representing a rise of 21.6% in volume and 9% in value over the same period last year, according to updates from the General Statistics Office.

Import prices averaged 1,995.5 USD per tonne during the reviewed period.

Vietnam mainly imports cotton from 11 markets, including Brazil (with a value of 443 million USD, up 111%), the US (400 million USD, down 18%), Australia (196 million USD, down 23%) and India (85 million USD, up 116%).

Cotton imports from Pakistan saw the strongest increase by 3,380% to 5,186 tonnes in the first five months of this year, with revenues increasing from 0.2 million USD to 9.1 million USD in the period.

Meanwhile, imports from the Republic of Korea dropped by 72% to 324 tonnes.

Cotton imported from China had the highest average price of 3,832.3 USD per tonne, followed by the Republic of Korea with 2,179 USD per tonne, the US, 2,098 USD per tonne and Australia, 2,092 USD per tonne.

Cotton imported from Indonesia had the lowest price at 1,360 USD per tonne.

Vietnam is the third largest cotton importer in the world with an import volume of around 1.5 million tonnes per year, serving mainly its textile industry. Vietnam is the sixth largest textile and the third largest garment producer in the world, after China and Bangladesh.

According to the Vietnam Textile and Apparel Association, domestic cotton production meets only 1% of the demand for the sector, fibre 30% and fabric 20%.

The International Cotton Advisory Committee forecasts that the global cotton prices will be on upward trend over 2024, due to recovering demand and drops in output./.

Green logistics – a key for sustainable development

Green logistics development is no longer a trend, it is an inevitable requirement with activities throughout the stage of purchasing raw materials, production, distribution, delivery, waste treatment - throughout the entire business life cycle.

Nguyen Quang Vinh, Vice Chairman of Vietnam Chamber of Commerce and Industry (VCCI) stressed its importance at a workshop entitled 'green and resilient logistics and unveiling of FIATA world congress 2025' held in Hanoi on July 9.

Green growth and sustainable development have become indispensable and irreversible imperatives, representing a prevailing global trend in the current era.

The National Strategy on Green Growth for the period 2021-30, with a vision extending to 2050, aims to green economic sectors by fostering economic restructuring, promoting innovative growth models and ensuring environmental sustainability and social equity.

To implement this strategy, the Prime Minister issued Decision No 882/QD-TTg, approving the National Action Plan on Green Growth for 2021-30, which designates logistics services as one of its 18 key focus areas.

According to the Vietnam Business Council for Sustainable Development (VBCSD), the international business community is increasingly focused on transforming supply chains and value chains towards greater sustainability, considering it a top priority.

Green supply chain management encompasses the management of various facets such as green design, green production, green operations, green purchasing, green logistics and waste management.

“When all these elements are green businesses can enhance their production efficiency and operational capabilities, thereby establishing a sustainable ecosystem around their operations. This, in turn, can create competitive advantages and bolster resilience against market disruptions,” Vinh added.

He proposed that the Government should develop a comprehensive Logistics Development Strategy and Planning through 2030, with a vision extending to 2050.

“The Government should implement additional policies aimed at encouraging and promoting green logistics development among businesses, particularly small and medium-sized enterprises. This could include offering tax incentives and promoting the adoption of alternative energy sources in road transport. Additionally, incentivising the adoption of multimodal transport models and establishing carbon credits to monitor and regulate greenhouse gas emissions are essential,” he said, adding that businesses must swiftly develop and reinforce strategies aligned with green and sustainable development principles in their production and business operations.

Tran Thanh Hai, Deputy Director of the Import-Export Department under the Ministry of Industry and Trade said the push towards developing green logistics poses significant challenges for businesses.

The green transformation of logistics involves converting energy sources for vehicles and adopting alternative transportation methods. The inland waterway transport stands out as a sustainable transportation option, offering substantial benefits in energy savings and carbon emission reduction.

“Moreover, optimising work processes and enhancing operational efficiency are crucial for advancing green logistics. Streamlining the delivery process to maximise efficiency is essential. Additionally, governmental bodies should support businesses by simplifying administrative procedures to facilitate trade,” he said.

Ngo Sy Hoai, Vice Chairman cum General Secretary of the Vietnam Timber and Forest Products Association (VIFOREST) said Vietnam currently ranks 5th in the world in terms of total export turnover of wood products. However, the domestic wood industry is also facing many challenges in green transformation throughout the supply chain, including the key link green logistics.

Hoài added that wood products are highly sensitive to environmental considerations, necessitating adherence to regulations concerning origin, environmentally friendly processing, sustainable trade and green growth practices.

Consequently, businesses within the industry are proactively adopting green practices, such as conducting comprehensive inventories of greenhouse gas emissions. However, the success or failure of the wood industry also hinges on every aspect of the supply chain, including the logistics sector.

Le Duy Hiep, Chairman of Vietnam Logistics Bussiness Association (VLA) said that many prominent logistics enterprises worldwide, including shipping lines and seaport operators, have committed to earlier roadmaps for reducing greenhouse gas emissions and transitioning to green energy.

According to VLA, the transportation sector currently contributes 24% of global emissions. Embracing sustainable and agile logistics practices will aid in lowering carbon footprints within Vietnam's logistics industry and globally, thereby reinforcing the Vietnamese Government's pledge towards achieving Net Zero emissions.

“Developing a green supply chain is not just a future aspiration but an immediate necessity. It's no longer a matter of choice but an essential transformation aligned with the objective of achieving net zero emissions,” Hiep added.

Dr Stéphane Graber, Director General of the International Federation of Freight Forwarders Association (FIATA) told Viet Nam News that digitalisation is absolutely key to achieve sustainable goals.

Exchanging data and also changing mentalities is imperative, they said, because in every major change in our world we need to combine the people to the right training and help them adopt new ways of working that are more sustainable and renewable.

“FIATA will be coming back to the Asia region here in Vietnam, one of the most vibrant logistics market that is really expecting to make this transition to green and resilient logistics.

"We will bring our expertise small and medium and larger business so they have the tools to facilitate the green transition. FIATA has developed a lot of tools for its member such as electronic transport document, digital payment systems, calculation of Co2 emission, but also we are working now on schemes to offset carbon emissions which is very important to give the tools to the companies to achieve this green transition,” he added.

He said Vietnam will host the FIATA WORLD CONGRESS 2025 (FWC 2025) in Hanoi from October 6 to 10, 2025.

FWC 2025 is expected to attract participation from over 1,200 businesses spanning more than 80 countries across logistics, freight forwarding, warehousing, transportation, processing, procurement and innovative technology sectors. The event will feature over 50 leading experts from international organisations including the WTO, the UN and the ICAO, along with industry leaders.

The congress aims to bolster global connectivity, enhance operational efficiency and promote sustainable practices and regulatory reforms, addressing maritime challenges and advancing carbon neutrality goals.

FWC 2025 will include an exhibition with 126 booths reserved for businesses to showcase services and promote products in the logistics sector.

Talking about the Vietnam International Logistics Exhibition (VILOG) 2024 in August, he said: “I think it's a very important and key conference and exhibition. It will bring the community together because we will not achieve any change a major move and transition to bring logistics and resilient logistics without having people talking to each other, exchanging best practices, working together towards better logistics.

"This conference is absolutely key to prepare for the big event that we have next year with the FIATA WORLD Congress, so I invite everyone to join VILOG. I will try to manage to be there as well and to prepare together very successful event in August but also preparing the past for next year. FIATA congrats with international community coming to meet the logistic Vietnamese community.”/.

Reference exchange rate going up on July 11

The State Bank of Vietnam set the daily reference exchange rate at 24,253 VND/USD on July 11, up 6 VND from the previous day.

With the current trading band of +/- 5%, the ceiling rate applicable for commercial banks during the day is 25,465 VND/USD and the floor rate 23,040 VND/USD.

At commercial banks, the opening-hour rates saw increases.

At 8:40 am, Vietcombank listed the rates at 25,215 VND/USD (buying) and 25,465 VND/USD (selling), up 6 VND from July 10.

BIDV raised both rates by 5 VND, listing the buying rate at 25,245 VND/USD and the selling rate at 25,465 VND/USD./.

Resolution approving 2022 state budget settlement issued

National Assembly Chairman Tran Thanh Man has endorsed a resolution supplementing the state budget revenue estimate for 2022 and approving the state budget settlement for the same year.

The resolution outlines the allocation and use of increased revenue sources and regular savings for the 2022 state budget, amounting to over 3.1 trillion VND (129.1 million USD), comprising an increase of 972 billion VND in central budget revenue and 2.13 trillion VND in local budget revenue.

The detailed state budget settlement for 2022 reveals a total revenue of more than 2.71 quadrillion VND and expenditures of over 2.89 quadrillion VND. This resulted in a deficit of over 293.3 trillion VND, or 3.07% of the country's gross domestic product (GDP).

The NA tasked the Government with publicly announcing the state budget settlement 2022 in line with legal regulations./.

Northern provinces discuss cross-border transport cooperation with Chinese locality

Representatives from the Vietnamese provinces of Lao Cai, Ha Giang, Lai Chau and Dien Bien on July 10 attended a meeting with their counterparts from China’s Yunnan province to discuss transport cooperation between the two sides.

The focus of the meeting was on enhancing mutual support for infrastructure development, particularly in the areas of expressways, railways and waterways connecting the two countries. Discussions highlighted the importance of integrated road transport networks and active collaboration in advising the two government and governmental agencies on approval of cross-border transport projects.

Both sides pledged to expedite the planning of a standard gauge railway line connecting Lao Cai with Hanoi and Hai Phong, and build a new railway section linking Lao Cai station and China’s Hekou North station.

Local authorities from both countries are working to streamline internal and bilateral procedures to facilitate faster upgrades of existing border gates, open new crossings, and promote cross-border commercial activities.

Both sides have maintained a mechanism for regular exchanges, coordinated issuance and inspection of international road transport permits between Vietnam and China, along with the provision of motor vehicle insurance services for vehicles involved in cross-border transport.

The same day, a delegation from the Yunnan provincial Department of Transport conducted on-site surveys of several cross-border infrastructure projects in Lao Cai./.

People, enterprises kept at centre of digital transformation: PM

People and enterprises must be put at the centre of the digital transformation, and benefit from the achievements that the process has carved out, Prime Minister Pham Minh Chinh said on July 10.

At the ninth meeting of the National Committee on Digital Transformation, PM Chinh, who is also the Chairman of the committee, stressed that as digital transformation has become an inevitable trend and a strategic choice, the direction and management of the process has been carried out in a harmonious manner, bringing more practical and positive results over the past time.

The Prime Minister issued five decisions, three directives and three official dispatches, while competent ministries and sectors issued various documents on the guidance of the digital transformation in the first half of the year, he stated.

Laying a stress on the strong development of the digital economy and society, he said that Information and Communications Technology (ICT) firms posted a revenue of more than 1.9 quadrillion VND (74.75 billion USD), while the shipment of Vietnamese digital products brought home some 64.8 billion USD during the January-June period.

An arsenal of global tech giants has committed to landing and expanding investment in the country, particularly in the domains of electronics, semiconductor and AI research and development, he said.

He went on to say that more than 1 million policy beneficiaries received their social welfare grants and 1.8 million retirees got their pensions via bank accounts, adding tax management and tax collection from e-commerce activity were drastically implemented.

Besides, 43 out of 53 essential public services were carried out, with 25 under the project on developing the application of population database, e-identification and e-authentication for national digital transformation for the 2022-2025 period with a vision to 2030 helping save 3.5 trillion VND a year.

He hailed the efforts made by ministries, sectors and localities as well as enthusiastic engagement from the people and businesses to foster the digital transformation, and pointed his finger to several limitations in the completion of the legal institutions for the process, digital infrastructure, information security, and quality of the online public services, among others.

The Government leader ordered stakeholders to prioritise resources, rolled out harmonious digital transformation measures, and strive to complete and exceed the targets set in the national digital transformation programme, as well as the committee’s action plans and strategies on the development of the digital Government, economy, society and database.

“Competent sides should strive to ensure that all of the public services will be handled online, 50% of the adult population use online public services, 90% of the local people and enterprises will satisfy with the settlement of administrative procedures, and 50% of the procedures related to the population database will be cut by 2025”, he said./.

Grade A office rents increase slightly in HCM City

Rents for Grade A offices in Ho Chi Minh City increased slightly in the second quarter of this year, reported Savills Vietnam, a leading real estate service company in the country.

The rental office supply in the southern economic hub in Q2 rose 2% quarter-on-quarter and 10% year-on-year to 2.8 million sq.m of Net Leasable Area (NLA) from 386 projects, according to Savills Vietnam’s report on the city’s real estate market in the first half of 2024.

The new supply of 52,512 sq.m of NLA from three new projects in non-central business district (CBD) continued to help ensure balanced and sustainable development of the market across the city.

Savills Vietnam said that in Q2, the average rent grew 2% quarter-on-quarter and 8% year-on-year to 815,000 VND (32 USD) per sq.m per month.

Non-CBD Grade A offices were the best performing segment in Q2 with the occupancy rate increasing 6 percentage points quarter-on-quarter to 84%, the highest among all grades.

Rents reached 1.1 million VND per sq.m per month, up 5% quarter-on-quarter. A total of 23,760 sq.m of NLA were leased, driven by Grade A projects that have opened since Q3 of 2023 and have good absorption such as The METT and The Hallmark in Thu Duc city, and The Nexus in District 1.

Similarly, Knight Frank, a commercial property adviser, reported that rents for Grade A offices in the city went up slightly, by about 0.5% compared to the previous quarter, reaching 58.4 USD per sq.m per month, due to higher demand for high-end offices in newly-built and green-certified buildings.

Leo Nguyen, Director of Occupier Strategy & Solutions at Knight Frank Vietnam, said that the office market in HCM City is developing constantly, and newly-opened Grade A buildings have an occupancy rate of over 70%. That gives tenants only few options when they want to move and also increase negotiation advantages for investors.

The firm forecast that this trend will continue affecting rental prices and inventory levels in the coming months.

It added new leasing transactions were recorded mainly in Grade A office buildings that opened last quarter. The occupancy rate in the Grade A segment is stable. On the other hand, some older buildings are losing tenants to newly-built Grade A buildings with green certificates./.

Bamboo Airways signs 36-mln-USD aircraft maintenance contract

Bamboo Airways and the Israel Aerospace Industries (IAI) on July 10 signed a cooperation contract worth 36 million USD.

Under the contract, the IAI will provide maintenance services for six CFM56-5B engines installed on the Vietnamese carrier’s A321 aircraft in the 2024-2025 period.

Additionally, the major Israeli aerospace and aviation manufacturer will lease another engine to Bamboo Airways for two years, starting in 2024.

Bamboo Airways General Director Luong Hoai Nam said that the professional MRO (maintenance - repair - operation) service that IAI offers will contribute to improving the quality and reliability of the airline’s fleet.

The signing of the contract is part of Bamboo Airways' plan to develop and operate its fleet of narrow-body A320/A321 aircraft. This initiative is a key component of the airline's restructuring strategy, focusing on a single-fleet type approach that exclusively includes Airbus A320/A321.

In the first half of 2024, Bamboo Airways rented an additional three A320 aircraft, increasing its operational fleet to eight.

It plans to continue to rent more aircraft to expand its fleet to 12 by the end of 2024 and 18 by the end of 2025, if market conditions allow.

In addition to efforts to develop its fleet, Bamboo Airways is also focusing on fully utilising high-demand routes.

Recently, the carrier continued to be honoured in the Top 5 Best Regional Airlines in Asia in 2024 by international airport ratings agency Skytrax./.

Int’l Shoes & Leather Exhibition opens in HCM City

The 24th International Shoes & Leather Exhibition and the International Footwear and Leather Products Exhibition (IELE- Vietnam) kicked off at the Saigon Exhibition and Convention Centre (SECC) in Ho Chi Minh City on July 10, showing a variety of shoe making and tanning machinery and technologies, leather and other materials, shoe components and accessories, and finished products.

This year's events gather more than 800 exhibitors from 20 countries and territories, including Italy, Germany, France, China, Japan and the Republic of Korea (RoK).

Nguyen Duc Thuan, Chairman of the Vietnam Leather, Footwear and Handbag Association (LEFASO), said that the annual event offers an opportunity for businesses, investors and buyers to visit, promote trade connections, approach potential customers and seek investment cooperation.

Vietnamese enterprises will have a chance to introduce their products to purchasers and partners both at home and abroad in an attempt to expand markets and export opportunities, he added.

Besides, seminars introducing cutting-edge technologies in production, new research and development trends in the shoe-making industry will also be held during three days of the events.

Visitors and consumers can also experience the shopping space and seek supply sources from input materials to the finished products of various global brands.

The exhibition, the leading event of the shoes industry in the ASEAN region, is expected to attract about 15,000 commercial visitors.

Vietnam earned nearly 24 billion USD from leather and footwear exports in 2023. Vietnamese footwear and handbags are currently available in 150 markets, of which the US accounts for 35% of the market share, the EU 26%, and China 9%./.

Expo promotes “Make in Vietnam” digital technology products, services

The 2024 international technology exposition (iTech Expo 2024) kicked off in Ho Chi Minh City on July 10, featuring more than 350 booths by both domestic and foreign firms.

On display are new, smart, and highly-applicable technologies of such businesses as Intel, ASUS, Zoho, QTSC, VNPT, Viettel, Mobifone, CMC Telecom, Galaxy Holdings, and Dai Nam.

Apart from Vietnam, the participating organisations, associations and suppliers come from more than 10 countries and territories like China, India, Malaysia, Thailand, Taiwan (China), the Republic of Korea, Japan, the Czech Republic, the UK, the US, Australia, and Russia.

Within the three-day event, there will be nine seminars where experts and representatives from groups and businesses at home and abroad look into new technologies, Artificial Intelligence (AI), Internet of Things (IoT), digital administration and information security, and new opportunities for organisations and enterprises, among others.

In his opening remarks, Deputy Minister of Information and Communications Bui Hoang Phuong described information-technology as a main growth engine of the national economy last year, with its turnover estimated at 138 billion USD.

Many digital technology firms posted growth rates of between 20% and 40% in the year, he said, hailing the initiative to organise the expo as helping enterprises seek new markets, catch up with global technology trends, create breakthroughs in digital transformation in Vietnam, and promote “Make in Vietnam” digital technology products and services.

The Ministry of Information and Communications will create the best possible conditions for digital technology companies to invest in Vietnam, while supporting domestic firms in the industry to expand markets and promote their products abroad, thus affirming Vietnam’s position on the global technology map.

Vice Chairwoman of the HCM City People’s Committee Tran Thi Dieu Thuy expressed her hope that iTech Expo 2024 will be a highlight contributing to the southern economic hub’s digital economy development./.

Ninh Binh, railway sector team up to develop tourism

The Tourism Department in the northern province of Ninh Binh and the Vietnam Railway Corporation (VNR) recently signed a memorandum of understanding on cooperation for 2024-2030, aiming to attract more train passengers to local destinations.

Vice Chairman of the provincial People’s Committee Tran Song Tung said Ninh Binh boasts considerable potential and advantages for tourism development, including its location at the intersection of the mountainous northwestern region, the Red River Delta and the north-central region; a large number of scenic landscapes; and over 1,820 historical and cultural relic sites, which created many unique and charming tourist attractions.

With a consistent strategy of developing green and sustainable tourism, respecting natural, historical and cultural values, and adopting methodological methods, the province is gradually gaining a foothold and becoming a favourite destination for both domestic and international visitors.

He cited statistics as showing that Ninh Binh welcomed more than 6.28 million tourist arrivals during the first half of 2024, including over 500,000 foreigners, up 38% year on year. It earned over 6 trillion VND (236 million USD) in tourism revenue, rising 1.5-fold from the same period of 2023.

In particular, the province has ranked high in many lists of destinations compiled by prestigious international travel websites. Most recently, a full-day tour to Ninh Binh from Hanoi has been named among the Top 10 Experiences in the world for 2024 by TripAdvisor readers.

Tung held that the partnership with the VNR will help increase visitors to his province by offering more convenient travel and introducing local destinations linked with images of Vietnam’s railway sector, and build railway travel stimulation programmes to attract visitors from nationwide to Ninh Binh.

Ninh Binh will increase opportunities for tourists to access and explore local beauty in a convenient and safe manner, the official stressed, pledging close cooperation to design unique and sustainable tourism programmes benefiting both sides.

The natural beauty of Ninh Binh and the professionalism and safety of the railway system will generate memorable experiences for travellers, he stated./.

Australia’s Queensland considers Vietnam priority market in Southeast Asia: official

Australia’s Queensland values its relations with Vietnam and considers the nation a priority market in the Southeast Asia and one of the top five international trade partners of the state, said Trade and Investment Queensland Chief Executive Officer Justin McGowan.

Speaking during a meeting with Vietnamese Ambassador Pham Hung Tam on July 9, MacGowan said that he welcomes the increasing attention and presence of Vietnamese businesses in Queensland, including Sofico Group, Vingroup, TH Group and Vietjet Air. He pledged to create favourable conditions for other businesses to promote investment and trade in the state.

At the meeting, the Australian official also pointed out Queensland’s potential and strengths, especially in agriculture, mining, renewable energy and education.

He agreed to coordinate with the Vietnamese Embassy in Australia to welcome Vietnamese delegations to Queensland in the coming time. He also hoped the two sides will strengthen activities to promote people-to-people exchanges, especially between friendship parliamentary groups of the two countries.

For his part, Tam appreciated the important position and role of Queensland, stating that the two sides hold much potential for cooperation, especially in trade and investment. Tam wished the two sides will increase two-way investment, including considering promoting investment in new fields such as clean energy and digital transformation, and expanding investment in potential areas including high quality agriculture.

He asked for Queensland’s coordination to support Vietnamese delegations that will visit the state to seek investment and business opportunities in the coming time. The ambassador expressed his wish that the state will hasten the renewal of its cooperation agreements with Ho Chi Minh City and Da Nang city of Vietnam.

The same day, the Vietnamese diplomat met with Commissioner of the Australian Border Force (ABF) Michael Outram at the ABF office, during which he proposed the two sides continue to coordinate to implement important outcomes achieved during Prime Minister Pham Minh Chinh's official visit to Australia last March, particularly in security and defence cooperation.

Tam appreciated the results of Outram's visit to Vietnam, and welcomed the signing of a plan on customs investigation collaboration and a Letter of Intent on negotiations on a Memorandum of Understanding (MoU) to strengthen cooperation between Vietnam's Border Guard Command and the ABF. He hoped that the two sides will soon sign the MoU in the near future.

Tam also asked for the two sides' continued joint work to accelarate the organisation of the first ministerial-level security dialogue in 2024 and expected that ABF will continue to support Vietnam in customs, English language training, crime and illegal migration control./.

Timber and wood product exports record positive growth

The first half of the year saw timber and wood product exports estimated to reach US$7.4 billion, up 22.2% over the same period from last year.

According to information given by the Import-Export Department under the Ministry of Industry and Trade, Vietnamese export value of wood and wood products hit US$1.25 billion in June alone, up by 13.6% compared to June, 2023. Of the figure, the export value of wood products fetched an estimated US$840 million, up 10.4% compared to last June.

According to data compiled by the Department of Forestry under the Ministry of Agriculture and Rural Development, the first half of the year saw wood and forest exports bring in US$7.95 billion, an increase of 21.2% over the same period from last year, thereby fulfilling 52.3% of the entire year's plan. In addition, several major markets saw an upsurge, such as the United States with US$4.38 billion, up 27.6% on-year; and China with more US$1billion, a rise of 46.6% on-year.

Discussing the wood export market, Ngo Sy Hoai, vice president and General Secretary of the Vietnam Timber and Forest Product Association (VIFOREST), said the US remains the largest import market for Vietnamese wood and forestry products.

Increased demand occurring in many major export markets can be viewed as the main factor driving positive growth in export activities of wood and wood products throughout the reviewed period.

In terms of the structure of exported wood and wood products, wooden furniture is always the main export item with a high export value. In the first five months of the year alone, the export value of this product reached US$3.8 billion, up 25.8% on-year.

According to analysis carried out by the Import-Export Department, with the current growth rate, the export prospect of wood and wood products is forecast to continue to maintain a double-digit growth rate with supporting factors such as the trend of increasing imports of wood and wood products. This can be seen in wooden furniture groups in major markets that often increase sharply in the last three months of the year when demand for interior equipment to welcome the new year is higher.

Inflation is controlled in major markets, thereby creating greater motivation for increased consumption activities. In addition, major economies are anticipated to record positive growth this year.

Vietnamese exports to EU market enjoy rebound

Vietnamese exports to 27 markets within the EU bloc bounced back in the first half of the year with turnover of US$24.5 billion, according to details given by the Ministry of Industry and Trade.

The total trade turnover between Vietnam and the bloc throughout the reviewed period reached US$32 billion, of which exports and imports from the EU surged by 14.1% and 5.2% to reach US$24.5 billion and US$7.5 billion, respectively.

Thanks to a rebound in export activities, the country enjoyed a trade surplus of US$17 billion with the EU, up 18.5% against the same period from last year.

Insiders attribute the rise in exports to the EU to a significant recovery occurring in key commodity groups such as phones, computers, garments and textiles, footwear, and agro-forestry-fisheries products.

The strongest growth was recorded in products such as computers, electronic products and components, with turnover reaching approximately US$4.1 billion, up nearly 50% on-year. This was followed by machinery, equipment and spare parts with US$3.95 billion, up 22%, and footwear with nearly US$3 billion, up 11.3%.

Meanwhile, aquatic exports to the EU soared by 12% to US$513 million compared to last year’s corresponding period.

With the recovery momentum being maintained in the first half of the year, exports to the bloc ahead in the second half are likely to reach between US$50 billion and US$52 billion

In particular, the EU-Vietnam Free Trade Agreement (EVFTA) is expected to provide fresh impetus for Vietnamese exports in the coming time thanks to commitments set out in preferential tariffs.

Five-month tuna exports to Italy triple

Vietnamese tuna exports to the Italian market reached nearly US$15 million during the past five months of the year, representing three-digit growth against the same period from last year, according to the Vietnam Association of Seafood Exporters and Producers.

May alone saw tuna exports to the demanding market increase by 224% to more than US$4 million on-year.  

Most notably, fresh, frozen and dried tuna exports accounted for 64% of Italy’s total export turnover, followed by canned tuna.

According to statistics released by Eurostat, Vietnam was the largest supplier of fresh, frozen and dried tuna for Italy in the reviewed period, higher than both the Philippines and Indonesia.

Meanwhile, the country also makes up the seventh largest provider of canned tuna for Italy, after Indonesia, Ecuador, China, the Solomon Islands, Colombia, and Seychelles.

There are currently about eight Vietnamese enterprises exporting tuna products to this market. Of which, Yueh Chyang Canned Food and Mariso Vietnam are the two companies whose products make up 86% of total export turnover.

According to industry insiders, preferential tariff incentives set out under the EU-Vietnam Free Trade Agreement (EVFTA) have created favourable conditions for Vietnamese tuna products in the Italian market.

If the "bottlenecks" in raw materials are removed, then Vietnamese enterprises will be able to enjoy a wealth of opportunities to boost exports to the Southern European country moving forward.

Surge in Petrolimex and PV Oil shares following new draft decree on fuel trading

In less than two months, Petrolimex (PLX) shares have risen by approximately 30 per cent, while PV Oil (OIL) shares have surged by over 50 per cent, reaching their highest levels in more than two years.

At the end of March, the Ministry of Industry and Trade unveiled a draft decree on fuel trading, which is expected to positively support major players in the industry.

It will replace Decree 83/2014/ND-CP and its subsequent amendments and investors were quick to assess the possible impact of the change.

From mid-April, capital rapidly flowed into Petrolimex and PV Oil, driving their stock prices up sharply. According to a recent report by Maybank Investment Bank, the new decree will reinforce the advantages of primary traders, benefiting companies like Petrolimex and PV Oil in terms of market share expansion and profit margins.

The draft decree maintains the rule that only primary traders are permitted to purchase fuel directly from domestic refineries or import it from abroad. The selling prices from these primary traders to distributors and retailers are not legislated but are based on agreements between the parties involved. This effectively allows primary traders to control profit margins within the value chain.

Distributors must buy fuel directly from primary traders and are no longer allowed to cross-purchase from other distributors, which strengthens the position of primary traders like Petrolimex and PV Oil. Additionally, the decree proposes increasing fuel storage requirements from 20 days to 30 days, which will raise business costs but will not affect the competitive advantage of primary traders within the value chain.

Maybank Investment Bank's report emphasises that the new decree will enhance retail price operations and reduce fragmentation, favouring large-scale primary traders. Similarly, ACBS’s recent report highlights several long-term benefits for primary fuel traders like Petrolimex under the new decree. These include the prohibition of distributors buying from each other, reducing intermediary costs and implementing stricter conditions to become a primary trader.

The decree also allows primary traders and distributors to set selling prices, provided they do not exceed the regulated price formula, fostering a competitive environment with reduced state intervention. The maximum business costs and profit margins stipulated in the draft decree are also higher than the current levels.

ACBS believes that with advantages such as the largest fuel storage capacity, strategically located petrol stations and a strong brand, Petrolimex will outperform its competitors. The Vietnamese fuel market currently features over 17,000 retail petrol stations, supplying millions of tonnes of products to consumers annually.

Nearly 70 per cent of domestic fuel revenue is controlled by Petrolimex and PV Oil. Petrolimex leads with a 50 per cent market share and 5,500 outlets nationwide, followed by PV Oil with an 18 per cent market share and 700 outlets. In the first quarter of 2024, Petrolimex and PV Oil’s combined revenue reached nearly US$4.5 billion, the highest since Q2 2022. On average, these two retail giants generate about US$49.5 million daily.

The proposed regulatory changes in fuel trading are anticipated to significantly benefit major companies in the sector, particularly Petrolimex and PV Oil, by solidifying their market positions and enhancing their competitive edge. 

Quảng Ngãi Sugar invests over VNĐ2 trillion to expand sugar and biomass power plants

Quảng Ngãi Sugar Joint Stock Company (UPCoM: QNS) has approved an investment of over VNĐ2 trillion to expand its An Khê sugar processing plant and biomass power plant.

The investment includes VNĐ1.169 trillion to increase the sugar processing capacity at the An Khê plant in Gia Lai to 25,000 tonnes per day. This project started preparations in June 2024, with the plant expected to be operational by November 2027. The expansion aims to stabilise the sugarcane supply, support deep processing activities, and maintain the company's leading position in the sugar industry in Việt Nam.

Another significant investment is the expansion of the An Khê biomass power plant, adding a 40MW generator to bring the total design capacity to 135MW. This project, with a total investment of nearly VNĐ847 billion, will also begin in June 2024 and is expected to be operational by November 2027. The goal is to use bagasse from sugar production to generate clean energy, address environmental issues, and support the annual load growth in Gia Lai and the central region.

Additionally, Quảng Ngãi Sugar plans to invest in other infrastructure projects, including a B1 warehouse at the Biscafun confectionery plant (VNĐ16 billion) and a fire prevention system at the Vinasoy Bắc Ninh plant (VNĐ14 billion), starting from July 2024.

As of Q1 2024, Quảng Ngãi Sugar's total assets reached nearly VNĐ13.6 trillion, with high liquidity assets valued at over VNĐ7.3 trillion, including cash and short-term bank deposits. The company's fixed assets are valued at over VNĐ3.4 trillion.

The company has also increased short-term financial borrowing, with a balance of over VNĐ3.6 trillion, up more than 50 per cent since the beginning of the year. Currently, the company does not have any long-term debt policies.

Quảng Ngãi Sugar operates 16 subsidiaries, including breweries, soybean milk factories, sugar processing plants, power plants, confectionery factories, beverage plants, malt factories, mechanical workshops, and one wholly-owned subsidiary, Thành Phát Trading One Member Limited Liability Company. 

VN-Index breaks nine days of gains

Shares were mixed on Wednesday as a profit-taking after recent rallies weighed on the market, while the foreign bloc continued strong net selling.

The VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) finished the day at 1,285.94 points, down 7.77 points, or 0.6 per cent. The reversal ended a nine-day rising streak.

On the southern bourse, the breadth was negative as 201 stocks ticked down while 125 increased. Liquidity remained nearly unchanged from the previous trading session, at VNĐ21.8 trillion (US$850.2 million).

The VN30-Index, tracking the 30 biggest stocks on HoSE by market capitalisation, also dropped 10.87 points, or 0.82 per cent, to 1,310.91 points. The number of decliners surpassed gainers in the VN30 basket by 23 to 6. One stock ended flat.

According to the Saigon-Hanoi Securities JSC (SHS), the market is experiencing rising selling pressure as the VN-Index approaches a significant resistance level, leading to continued fluctuations and uncertainty.

Large-cap stocks in the manufacturing sectors led the market's downturn with FPT Corporation (FPT) posting the biggest fall in the market capitalisation, shares of the software manufacturer down 2.55 per cent, contributing to a decline of over 1.2 points in the VN-Index.

It was followed by the Vietnam Rubber Group - Joint Stock Company (GVR), which fell 2.63 per cent, Mobile World Investment Corporation (MWG), down 2.4 per cent and Vinhomes JSC (VHM), which dipped 0.13 per cent.

Banking stocks also saw poor performance on Wednesday, such as Bank for Investment and Development of Vietnam (BID) down 1.26 per cent, Vietnam Prosperity Joint Stock Commercial Bank (VPB) falling 1.03 per cent, Liên Việt Post Joint Stock Commercial Bank (LPB) tumbling 2.35 per cent and HCM City Development Joint Stock Commercial Bank (HDB) dipping 1.19 per cent.

However, losses were capped by gains in some pillar stocks, led by the Bank for Foreign Trade of Vietnam (VCB), which was up nearly 0.6 per cent, Refrigeration Electrical Engineering Corporation (REE) up by 2.45 per cent and Viet Nam National Petroleum Group (PLX) rising 1.2 per cent.

On the Hà Nội Stock Exchange (HNX), the HNX-Index also finished lower at 244.54 points. More than 64 million shares were traded on the northern bourse, worth more than VNĐ1.5 trillion.

Foreign investors continued to be net sellers on the market, particularly on the southern exchange. They sold over VNĐ1 trillion on the HoSE. 

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