The Republic of Korea (RoK) and Japan have become the biggest importers of Vietnamese wood pellets, accounting for over 95% of Vietnam’s total export of this product, reported the Vietnam Timber and Forest Product Association.

The wood pellets exported to the RoK are primarily made from by-products of the wood processing industry, such as sawdust, wood shavings, and leftover wood scraps. The exporters are mostly in the southeastern region where wood furniture factories are concentrated.

In the first five months of this year, the volume of wood pellets exported to the RoK reached 0.65 million tonnes, equivalent to 96.1 million USD in value, representing a decrease of 41% in volume and 45% in value year-on-year.

Meanwhile, the Japanese market has shown high stability in both volume and price. In January-May, Vietnam's exports of wood pellets to Japan reached 0.87 million tonnes worth 151 million USD, down 5.7% in volume and up 19.7% in value annually. The orders received are mostly long-term contracts.

The price of export to the RoK in June was only around 110 USD per tonne while that to Japan ranged from 145-165 USD per tonne.

Japan requires pellets from domestically grown timber in forests with sustainable forest management certification (FSC). This source of raw material is mainly available in areas with a high concentration of planted forests in Vietnam, particularly in the central and northern regions.

Vietnam has become the world’s second biggest manufacturer of wood pellets, only behind the US. From 2013-2022, the volume and value of Vietnam's wood pellet exports increased by 28 and 34 times, respectively.

According to the General Department of Vietnam Customs, Vietnam exported 1.57 million tonnes of wood pellets valued at around 256.5 million USD in the first five months of this year. Exportation is currently on an upward trend.

Thomson Medical taps into Vietnam's healthcare market

The Singapore-listed Thomson Medical Group Limited (TMG), has agreed to acquire Vietnam’s FV Hospital for up to 381.4 million USD, marking the country’s biggest healthcare transaction to date and Southeast Asia’s largest healthcare acquisition since 2020.

The deal highlights the growing significance of Vietnam’s burgeoning healthcare market and TMG’s continued commitment to expanding its footprint in the region, TMG said in a statement.

As TMG’s largest strategic acquisition, FV Hospital unlocks the sizeable Vietnamese opportunity for the group, paving the way for further inroads into one of Southeast Asia’s fastest-growing healthcare markets, the company said.

Under the terms of sales and purchase agreement, TMG will acquire 100% of Far East Medical Vietnam Limited which operates a range of healthcare facilities in the country, including the multi-disciplinary FV Hospital and a network of primary and specialist clinics.

Italy introduces leather, footwear products, technologies in HCM City

The Italy Trade Office in Vietnam, in collaboration with the National Association of Italian Manufacturers of Footwear, Leather Goods and Tanning Technologies (ASSOMAC), arranged a display area of the leather and footwear business community from Italy, as part of the 23rd International Shoes & Leather Exhibition - Vietnam and the International Footwear & Leather Products Exhibition in Ho Chi Minh City from July 12-14.

Apart from showcasing a diverse range of products and advanced technologies in the leather and footwear industry, the Italian firms also strengthen trade connections with businesses from participating countries and territories at the event, particularly with Vietnamese manufacturers.

Fabio De Cillis, Trade Commissioner at the Italy Trade Office in Vietnam, said as this year marks the 50th anniversary of Vietnam-Italy diplomatic ties, Italy wants to make the most of this opportunity to leave an impression on the two sides’ activities. Earlier, the office held several trade and industrial promotion events in Vietnam and Ho Chi Minh City in particular.

Later this year, it plans to draw Italian enterprises to the International Processing, Packaging Exhibition and Conference in Vietnam (ProPak Vietnam), the Vietnam International Woodworking Industry Fair (VietnamWood) and encourage Vietnamese firms to join fairs and exhibitions in Italy.

According to the Vietnam Leather, Footwear and Handbag Association, the sector targets earning 27 billion USD from export this year, up around 10% annually.

Hung Yen promotes longan export to Japan

Hung Yen province People’s Committee on July 13 held a trade promotion conference for the northern province’s fresh and processed longan to enter Japan.

Speaking at the conference, Vice Chairman of the provincial People's Committee Nguyen Hung Nam said that the Japanese market is famous for its high standards for products, especially imported food and fruits.

If Hung Yen longan can successfully conquer and penetrate the demanding market, it will pave the way for the fruit to enter other markets, Nam said.

He said that the provincial People's Committee had directed the Department of Agriculture and Rural Development to coordinate with the People's Committees of its districts, town and city to review, evaluate and restructure longan varieties and growing areas; as well as promote the application of science and technology and advanced farming processes in production to improve product quality.

Nguyen Van Biet, Deputy Director of Quang Chau Longan Cooperative in Hung Yen city, said that the cooperative members all hope to find  stable consumption for their longan with reasonable prices. Thus, they are actively learning and applying science and technology, and advanced farming methods.

Currently, Hung Yen province has 27.2 ha in two longan-growing areas that have been granted codes to export to the Japanese market. Their estimated output is about 350 tonnes per year.

Experts confident in Vietnam’s economic recovery

Although Vietnam’s growth has slowed down amid global economic crises, he country is showing stronger performance than the majority of others in the world and continuing to be an attractive destination for foreign manufacturers, according to insiders.

Amid the complicated developments in the world economy and domestic headwinds, Vietnam’s GDP growth in the first six months of this year reached only 3.72%, which was below expectations.

However, many of experts held that this was a suitable growth rate in the current situation, and showed their optimism about the country’s economic recovery in the time to come.

Head of the International Monetary Fund (IMF) 2023 Article IV Mission to Vietnam Paulo Medas commented that like others in the world, the Vietnamese economy was further hit by a sharp deterioration in external demand since late 2022, with exports declining by 12% in the first five months of 2023. Liquidity and inflationary pressures have eased recently, but growth slowed down significantly in the first half of 2023, he said.

Vietnam’s economic growth is projected to recover in the second half of 2023, reaching around 4.7% for the year, supported by a rebound in exports and expansionary domestic policies. Inflation is expected to be contained below the SBV’s 4.5% ceiling. Over the medium term, Vietnam can return to high growth rates as structural reforms are implemented, the expert commented.

In the short term, downside risks to growth remain large, he held, stressing that that further efforts to safeguard macro-economic and financial stability and accelerate reforms will ensure that the economy remains on a safe footing. The policy mix should be re-balanced with greater emphasis on fiscal support to the economy and the most vulnerable.

Achieving Vietnam’s ambitious development and climate objectives will require accelerating reforms to improve the business environment, critical infrastructure, and invest in education, he stated.

Meanwhile, Singapore’s DBS Bank Limited noted that in the first half of 2023, the amount of foreign direct investment (FDI) poured to Vietnam rose about 30%, commenting that it is still an attractive destination for investors thanks to the production transition trend, free trade agreements it has signed, and its high middle-term economic outlook at 6-7% as well as the growing electronic ecosystem.

The FDI inflows showed that foreign investors’ confidence in the long-term potential of Vietnam has maintained.

The bank said it believes that in the second half of this year, Vietnam’s exports will increase again along with the recovery of the world electronics sector, while domestic services and tourism sector will continue to thrive and support the country’s economy.

Marco Förster, head of ASEAN advisory at Dezan Shira & Associates, a consultancy firm, said that despite the current difficulties, Vietnam is predicted to experience rapid economic growth in the medium term due to its emerging position as a leading manufacturing hub in Southeast Asia, its well-educated population, and increased capital investment.

S&P Global Ratings forecast that the Vietnamese economy will recover in the next 24 months as global demand picks up and Vietnam gradually tackles domestic challenges.

Meanwhile, in a recently-released report, the OECD predicted that the Vietnamese economy will post a 6.5% growth in 2023 and 6.6% in 2024.

Funding, regulatory hurdles challenge Vietnam's developers long term

Property developers in Vietnam face a steep path to long-term growth, with various hurdles awaiting them in the next 12 months, including challenges related to funding access and an evolving regulatory landscape.

A recent survey by S&P Global Ratings sheds light on the heavy reliance of Vietnamese developers on short-term funding. This reliance leaves them susceptible to liquidity and default risks when access to funding becomes restricted. For example, Novaland has encountered difficulties in meeting its domestic debt payments and is currently seeking to restructure its foreign debt obligations.

As of December 31, 2022, short-term debt for Vietnamese developers exceeded their cash balance, surpassing 100%.

Over the past five years, Vietnamese developers have pursued aggressive growth through debt financing, leading to higher leverage ratios. The report highlights that they often resort to debt to finance working capital for high-rise condominiums and capital expenditures for land acquisitions.

The government's tightening of developers' access to funding, including bank loans and the local bond market since June 2022, has constrained liquidity and led to project construction and handover delays. Buyers' sentiment has also decreased as developers can no longer provide sales incentives, and access to mortgage loans has diminished.

However, some early signals of easing appeared in early 2023, as the country took steps to reduce financial stress in the property sector. The recent policy changes aim to support the affordable segment of the market while discouraging property speculation, ultimately promoting more sustainable growth in the property market, the report said.

Additionally, investor-buyers accounted for approximately 86% of property purchases in Vietnam between 2020 and 2022, with overseas buyers contributing 45% of the total, according to CBRE Group. The high proportion of investor-buyers in Vietnam leads to greater sales fluctuations due to their sensitivity to economic cycles and market sentiment.

“In Vietnam, we expect aggregate residential sales to decline by 15 to 20% in 2023 after experiencing growth of 25 to 30% in 2022.”

Developers in Vietnam also tend to have higher off-balance sheet liabilities. These include debt-like obligations such as sales incentives. For example, some developers subsidise the mortgage interest expense for customers during the initial stage of project construction. Additionally, they provide guaranteed rental returns for a certain period after handing over the units (more common for hospitality-related projects).

The report said although such incentives are common in the Vietnamese industry, the disclosure of their extent and commitment period is limited under Vietnamese Accounting Standards. Consequently, developers' actual liabilities and cash flow burdens may be understated.

Additionally, Vietnam’s developers face key-man risk, as they are often controlled by the founding family either directly or indirectly. Some developers have complex corporate structures involving multiple business lines and joint ventures. Debt obligations may be concentrated at the parent company, with debt servicing relying on dividends from operating subsidiaries and joint ventures. This complexity makes it challenging to track the flow of funds and assets.

Despite some challenges, the report also pointed out opportunities for Vietnam's growth, driven by rising disposable incomes, increased foreign direct investments, a young population (over 70% under the age of 45), robust GDP growth, and ample room for further urbanisation.

Vietnam US’s important partner in APEC: Official

Vietnam is an important partner of the US in the Asia-Pacific Economic Cooperation (APEC), contributing to all the different efforts and working processes throughout the APEC year, said Matt Murray, US Senior Official for APEC.

Speaking with the Vietnam News Agency in Washington in the context that the two countries are celebrating the 10th anniversary of their comprehensive partnership (July 25, 2013- 2023), the official of the State Department's Bureau of East Asian and Pacific Affairs said that Vietnam is an important partner in handling regional economic issues. 

He said Vietnam is a very important partner of the US in ASEAN. The country is a member of APEC and also one of the parties participating in the negotiations of the Indo-Pacific Economic Framework for Prosperity (IPEF).  

The Vietnam - US cooperation relationship has recorded a lot of progress in the past 10 years and the US Government looks forward to boosting cooperation with Vietnam in the next decade, he said.

Currently, the US is paying special attention to Vietnam's role and position in maintaining regional and global supply chains. 

He said he is impressed with Vietnam's commitment to sustainable development and economic growth.

When Thailand launched the Bangkok Initiative targeting a circular economy at APEC last year, Vietnam supported that effort. The US has had many discussions with its Vietnamese partners about how the two sides can work together to improve sustainable economic growth in the region.

Another important area is inclusive economic development which ensures all people and all communities benefit from economic growth. Vietnam has been at the forefront in this area, so the US welcomes Vietnam's comments on these issues in APEC.

According to Murray, the US is pleased to serve as the APEC host this year. It is a great opportunity for member economies to discuss how to cope with economic "headwinds" as a region. 

Under the theme of “Creating a Resilient and Sustainable Future for All”, APEC 2023 includes not only senior officials’ meetings but also 10 ministerial meetings and then APEC CEO Summit in San Francisco in November.

The US appreciates the participation of Vietnamese officials at all APEC meetings, he said, adding that those will be a great opportunity to promote regional economic cooperation as well as bilateral cooperation with Vietnam.

Banks cut rates for new loans amid low capital demand

Banks have to lower lending interest rates to stimulate demand for new loans as credit growth falters and deposit interest rates have also dropped sharply.

BIDV recently announced to set aside 300 trillion VND for loans with a preferential annual interest of 0.5-2% lower than normal lending rates.

Pham Thi Van Khanh, director of BIDV's corporate banking division, said they will specify conditions in the implementation of the low-interest loan package so as to help qualified firms access the capital.

A representative of Agribank said the bank has just adjusted lending interest rates lower for the sixth time. For loans aimed at production and business activities, the short-term lending interest rate is only from 5% annually, and the rate for medium- and long-term loans starts from 8% per year. These packages are part of a programme of 100 trillion VND and 500 million USD for corporate customers.

LPBank has also decided to expand the preferential credit package to 10 trillion VND for production and business loans in both urban and rural areas. Under the package, interest rates are from 7.5% per year for corporate customers and 8.5% per year for retail ones.

Surveys in banks such as VietinBank, Vietcombank, TPBank, Sacombank and MSB show preferential loan packages currently have interest rates from 0.5 to 2% lower per year depending on customer groups.

In addition, many banks have reduced operating costs to support firms through policies on exemption and reduction of money transfer service fees or reduction of import and export payment fees.

Some banks said they could not reduce lending interest rates for outstanding loans immediately as the input capital for the loans was mobilised with high interest rates while the loan interest rate adjustment cycle under banks’ credit contracts was often from three to six months.

However, for new loans, banks are lowering lending interest rates to stimulate credit demand under the current context that input interest rates have fallen sharply and credit growth is very low.

By the end of June this year, credit growth was only 4.03%, against 9.4% of the same period last year, the lowest credit growth in the past ten years.

According to banking expert Dr. Nguyen Tri Hieu, interest rates are in a downward trend, but the risks of the economy are increasing, which means that banks will be more cautious when lending and it is not easy for firms to borrow.

For firms, the demand for loans is only moderate due to difficulties in the market and slow sales of goods. Firms will boldly borrow capital only when the economy recovers.

A representative of Maybank Securities Company also said although the State Bank of Vietnam (SBV)’s policy interest rate was reduced four times, the lending interest rate is still anchored at a high level. This is mainly because banks are stuck with high-cost capital raised last year and in the first months of this year. However, high-interest deposits are gradually coming to maturity so lending rates will continue to decrease in the near future.

In order for the lending interest rate to return to normal, it must be reduced by about 1.5 percentage points compared to the current rate. In addition, the SBV’s policy interest rate can be reduced by at least 50 basis points within the next three months, a Maybank representative said.

International banks in Vietnam such as HSBC, UOB, and Standard Chartered all also expect the SBV to continue to cut the refinancing interest rate by another 50 basis points to 4.0% in the third quarter (the equivalent rate during the pandemic years) and keep the rate unchanged until the end of 2024 and 2025.

Under Resolution No. 97/NQ-CP of the Government’s regular meeting in June 2023, the SBV, in conjunction with other relevant ministries and agencies, will to continue lowering interest rates, especially lending rates, by at least 1.5 to 2 percentage points per year for both new and outstanding loans.

H1 state budget revenue reaches 54% of yearly target: MoF

The state budget revenue stood at 875.8 trillion VND (37 billion USD) in the first half of 2023, equivalent to 54% of this year’s target, reported the Ministry of Finance (MoF).

The taxes, fees, charges, and land rent entitled to exemption, reduction and payment deadline extension was valued at about 70.3 trillion VND.

Meanwhile, about 804.6 trillion VND from the state budget was spent during the period, equivalent to 38.8% of the year’s target. In particular, spending on development investment increased from a year earlier, reaching 30.49% of the disbursement target set by the Prime Minister, compared to the 27.75% in the same period last year, statistics show.

During H1, financial and state budgetary tasks were carried out amid the context that the economy had to concurrently address post-pandemic issues and deal with numerous new difficulties and challenges posed by the international and domestic situations, the MoF told an online conference on July 13.

Adverse factors impacted the performance of socio-economic development and budgetary tasks, it said, noting that businesses had to struggle with difficulties, including shrunken markets, a shortage of orders, limited credit access, soaring capital costs, and lower-than-expected economic growth.

However, thanks to the entire political system’s engagement, the financial sector has fully carried out financial and budgetary solutions since the start of 2023. It proactively governed the fiscal policy to support socio-economic recovery and development, made strong moves to ensure budget collection, kept the overspending and public debts within the permissible levels, controlled prices and the market, and enhanced financial discipline, the MoF went on.

It also proposed the National Assembly, the Government, and the Prime Minister issue policies on the exemption, reduction, and extension of payment deadlines of taxes, fees, charges, and land rent worth about 200 trillion VND for 2023.

The ministry also suggested solutions to bottlenecks facing public investment disbursement and national target programmes.

Metro Line 1 management company gets more funding

The cash-strapped Metro Line No. 1 management company will receive additional funding to increase its charter capital to VND268 billion in the third quarter of this year.

Deputy Prime Minister Le Minh Khai concluded on July 1 that the government of HCMC has the authority to approve the charter capital of Ho Chi Minh City Urban Railways No.1 Company Limited (HURC1), which manages Metro Line No. 1 between Ben Thanh Market and Suoi Tien Theme Park.

The city government is empowered to provide funding to the company, thus facilitating the preparation process, including personnel training and technology transfer for the urban rail line’s operations.

This approach follows the prime minister’s meeting with the city and relevant ministries to address the capital shortage faced by HURC1, which has experienced financial constraints over the past two years.

The city is required to adhere to the project schedule in approving the increase in HURC1’s charter capital, as well as meet the legal capital requirements for a 100% state-owned company.

Earlier, the HCMC People’s Committee sought permission to actively allocate capital for the company based on its needs and the schedule of asset handover from the 20-kilometer Metro Line No. 1, instead of relying on periodic allocations.

As per the approved capital allocation plan by the Government, the city will provide VND268 billion to HURC1, including the VND14 billion previously allocated to the company. After this year, the city has the discretion to increase the company’s charter capital, not exceeding a maximum of VND16,802 billion.

HURC1 was established in 2015 by the HCMC People’s Committee to prepare personnel for the management and operation of the Ben Thanh-Suoi Tien metro line, which was originally planned to be completed in 2018.

The company received VND14 billion for the period of 2015-2014 to streamline the preparation process for the metro line’s operation. Starting in 2018, the company’s charter capital was set at VND16,788 billion.

Metro Line No. 1 is HCMC’s first urban railway project, with a total cost of over VND43,700 billion. The project is now 95% complete. The metro line is expected to be completed by the end of this year.

HCMC: 163,000 laborers find jobs in H1

More than 163,000 laborers in Ho Chi Minh City found jobs in the first six months of 2023, up 0.21% year on year, while more than 79,900 new jobs were created, a rise of 0.25%.

The municipal Department of Labour, Invalid and Social Affairs reported that in June alone, economic sectors in the city employed more than 26,500 laborers and created nearly 12,000 new jobs, with most jobs in the areas of trade, services, and industrial production.

Tran Le Thanh Truc, head of the Employment – Labour Safety Office under the city Department of Labour, Invalid and Social Affairs said that in the first half of 2023, the city organised 59 online job fairs, providing employment consultations to more than 69,700 laborers and helping over 43,200 laborers successfully find jobs.

The department processed nearly 59,000 out of 64,000 requests for unemployment allowances, and issued 512 decisions to give vocational training support to unemployed labourers.

It also received information from 245,400 laborers who wanted to seek jobs, she said, adding that the department also gathered information recruitment demands of 42,800 local businesses.

In the Jan-June period, HCMC sent more than 3,900 laborers to work abroad, 1,000 cases higher than that in the same period last year, mostly to Japan, the Republic of Korea and Taiwan (China).

In the period, nearly 7,639 foreign workers in the city received work permits, down nearly 900 from the same period last year, the department reported.

Vietnamese fruits conquering US market

The first batch of fresh lychee has arrived in the US, opening up big opportunities for the specialty and other Vietnamese fruits to conquer the demanding market.

Thanks to coordination between importer LNS International Corporation and the distributor L&V Food Supply Company in Houston, Texas, fresh lychee grown in the northern province of Bac Giang – dubbed Vietnam’s kingdom of the fruit, has been available on the shelves of many supermarkets and the largest Asian market in Houston.

Chinh Nguyen, CEO of L&V Food Supply, said her group and LNS International Corporation are working on a plan to import big shipments of Vietnamese food and fruits to the US this year.

"After three shipments of fresh lychees (approximately 9 tons) to the US in June, we plan to import frozen lychee (about 2 containers per month, equivalent to about 30 tons)," she said.

"If Vietnamese suppliers can ensure enough standard products, we will import an additional three shipments (80-90 tons) this year.”

The success demonstrates the efforts by Vietnamese ministries and agencies, including the Ministry of Industry and Trade, in trade promotion to deliver Vietnamese agricultural products to demanding markets such as the US and the European Union.

According to the Ministry of Agriculture and Rural Development, among Vietnamese agro-forestry-fishery products, the US has purchased cashew nuts, aquatic products, wood and fruits most. Seven types of Vietnamese fruits have been shipped to the US so far, namely dragon fruit, rambutan, longan, lychee, star apple, mango, and pomelo.

The US Department of Agriculture forecast that the US will import up to US$199 billion worth of agricultural products this year, US$5 billion higher than last year’s figure, which offers an opportunity for Vietnamese agro-forestry-fishery exports.

Last year, the US’s fruit-vegetable import reached a record high of over US$31 billion, including US$19.3 billion of fresh and frozen fruits, an increase of 10% compared to 2021. The majority of these imports came from Canada, Mexico, and some countries in Central and South America.

Apart from Vietnam, the US also imported lychee from China, India and Thailand. Vietnam’s Bac Giang lychee has been favoured by local consumers for its quality.

Vietnamese Trade Counsellor in the US Do Ngoc Hung pointed out that there is ample room for Vietnamese fruits in the US market.

However, Vietnamese agricultural products and lychee still encounter obstacles in accessing the market due to the far geographical distance, and high irradiation and transportation costs.

The Vietnamese trade office in Houston suggested relevant associations and businesses of Vietnam and the US exchange information and work together to support export-import activities.

In particular, businesses should make long-term commitments to ensuring good coordination among exporters, importers, and distributors for large shipments, exchange market information and share responsibility and risks with partners, thus creating a healthy competitive environment, Hung said.

He also suggested intensifying product promotion to introduce Vietnamese fruits to other communities in the US apart from Asian consumers.

Fake goods make FDI firms worry about Vietnam’s business investment environment

Foreign-invested enterprises feel insecure about the business investment environment in Vietnam due to rampant fake goods in the local market.

Mr. Tran Huu Linh, General Director of the Market Surveillance Agency under the Ministry of Industry and Trade, said this at the seminar ‘Protecting brands against counterfeiting, imitation goods and intellectual property violations’ held yesterday. Moreover, he revealed that in the first 6 months of 2023, the Market Surveillance Agency paid visits to stores discovering nearly 3,000 counterfeit goods-related cases and inspectors collected nearly VND30 billion (US$ 1,271,404).

However, these scattered cases still do not fully reflect the problem of counterfeit goods on the market today. Many products of all kinds, including famous brands of the world to Vietnamese products, are counterfeited; worse, counterfeit consumer goods and replica goods are smuggled from other countries into Vietnam or produced in the country.

Impacts of counterfeiting include brands’ suffering loss of sale, damaging authentic brands’ reputations, leaving companies to deal with the fallout of counterfeits and brands being forced to spend time and money fighting fakes. FDI in multi-brand retail fretted about Vietnam’s business environment when counterfeit commodities were rampant in the market.

In the past, clothes, cosmetics, and shoes were usually faked but now law enforcement agencies also discovered sub-standard nutritional supplements in the market.

Recently, staff of the Market Surveillance Agency also discovered that expensive items such as glass cooktops from Germany and Italy are also being counterfeited in Vietnam. In the past year or so, the Market Surveillance Agency has received requests from many brands in the world or with manufacturing plants in Vietnam to investigate the status of counterfeiting and imitation of brands of the company.

For example, Ajinomoto’s MSG and Acecook’s instant noodles are consumed well in the local market. Representatives from both firms have recently complained that there are more and more fake MSG and instant noodles on the market and they expected the Market Surveillance Agency to investigate, said Mr. Tran Huu Linh.

Next, a lot of products of the brands of Procter & Gamble Group, such as cosmetics, shower gel, soap are also being counterfeited in the domestic market, said Mr. Linh. Even children's toys of a very famous brand in the world, the Danish Logo, also moaned about the infringement of intellectual property rights in the Vietnamese market.

Mountainous residents make money from raising sturgeon

Residents in a mountainous district in the Central Province of Quang Ngai make money from raising sturgeon.

After the Son Tay Agricultural Service Cooperative in Son Tay District of Quang Ngai Province was successful in the experimental rearing model of sturgeon from 2014-2018 until now, it expanded the farm to 1,800 square meters earning hundreds of million Vietnamese dong per crop, paving the way for economic development for people in mountainous areas.

In 2014, the District People's Committee in Son Tay District assigned the District Agricultural Service Center to implement the sturgeon farming model in Son Bua Commune. From 2014-2017, the fish was farmed in an area of 500 square meters with a total investment of more than VND1.5 billion.

After two experimental breedings of the special fish, the sturgeon fingerlings were less sick, grew well, and developed well. Moreover, they have an average weight of 2.5 kg-5kg each. In the first harvest of experimental rearing, cooperative members sold 450 farmed-raised fish weighing 1,125kg at VND200,000 per kg and they earned VND225 million.

In the second harvest, they earned more than VND1.8 billion for selling 7,500kg at the price of VND 250,000 a kg. They made a profit of about VND 527 million after excluding the initial investment cost.

The success of the experimental sturgeon farming model has shown that weather and climate conditions in Son Bua Commune are suitable for sturgeon farming. Thus, in 2018, the Son Tay District People's Committee handed over to the Son Tay Agricultural and Service Cooperative to continue expanding the fish-rearing model.

In the beginning, the fish was raised in a pond of only 500 square meters. The Son Tay Agriculture and Service Cooperative has expanded to 1,800 square meters with three farming crops, earning hundreds of millions of Vietnamese dong.

In particular, in the second farming season, 3,500 fingerlings were raised during 18 months with a 72 percent of survival rate. Each fish has an average weight of 2.5 kg. The cooperative sold the fish at VND250,000 a kg, collecting VND1,575 billion. The Cooperative has earned a net profit of VND604 million after excluding the investment cost of VND971 million.

Currently, the cooperative is raising the third sturgeon crop with a number of 4,000 fish. The survival rate is forecast to be very high, at about 85 percent. The cooperative planned to sell the fish at the end of 2023. Currently, a sturgeon has reached a weight of 2-3kg.

With the current price ranging from VND 250,000 a kg to VND 350,000 a kg, the cooperative hoped to earn much.

Masan Consumer signs long-term deal to buy Lý Sơn garlic, ensures farmers’ livelihoods

Masan Consumer, one of Việt Nam’s leading food and beverages companies, has signed a contract with Quảng Ngãi Province’s Lý Sơn District for long-term purchase of Lý Sơn garlic to produce its new Nam Ngư Lý Sơn Garlic Chili Fish Sauce line, ensuring growers have a steady outlet.

The island district is well-known for its large garlic farms. It has an abundance of volcanos that enrich the soil with minerals, which combined with its layer of red volcanic basaltic soil and a top layer of coral sand, lend the garlic grown here a unique, appealing flavour.

Garlic is a key crop in Lý Sơn, often referred to as “white gold” by local farmers due to its high economic value. It has 300ha under the crop.

Lý Sơn Garlic is widely known for its aroma and spicy but slightly sweet taste. Its relatively high oil content makes it ideal for producing seasoning and medicine.

However, garlic farming suffers from problems such as weather, diseases, inconsistent demand, and unstable prices.

MoIT and Samsung VN start smart factory project

The Ministry of Industry and Trade (MoIT) and Samsung Vietnam on Monday officially kicked off the smart factory development project with an aim to support Vietnamese firms to participate in global supply chains.

Accordingly, in the first phase of the project, 12 businesses in Bắc Ninh, Hà Nội, Hà Nam, Hưng Yên and Vĩnh Phúc would participate in a three-week training course to gain theories about smart factories and nine-week practice. Samsung’s specialists and Vietnamese consultants would review the businesses and help them establish smart factories.

Specialists then would continue to support the firms in building operation and management systems as well as making improvements.

SBV urges reduction of lending rates

The State Bank of Vietnam (SBV), the country’s central bank, has urged commercial banks to further lower lending rates to drum up business and investment activities.

In accordance with Document 4985, commercial banks must strictly comply with the SBV’s regulations on deposit interest rates and take measures to reduce these rates. This will make room for lowering lending rates for clients.

Several commercial banks have recently made interest rate cuts. For example, Agribank now offers short-term lending rates starting from 5% per year and mid- to long-term lending rates from 8% per year for business production. This marks Agribank’s sixth interest rate reduction by 2 to 4 percentage points since the beginning of the year.

Similarly, BIDV has reduced interest rates by 0.5 percentage point for outstanding mid- and long-term loans that were not previously subject to competitive interest rates. This is the second time this year that the bank has lowered lending rates for existing loans.

BIDV has introduced a credit package worth VND20,000 billion for commercial housing project investors, with interest rates ranging starting from 8.5% per year. LPBank has rolled out a credit package of VND8,000 billion with incentive interest rates starting from 7.5% per year for individuals and businesses engaged in production activities.

While these lowered rates apply to new loan agreements, existing loans still carry high interest rates. Business lending rates typically range from 9% to 10% per year, while rates for individuals range from 13% to 15% per year. Some clients are considering repaying their outstanding loans to take advantage of more favorable interest rates for new loans. However, they may find it tough to meet the SBV’s eligibility requirements for the lower interest rate loans.

Means of transportation, parts, accessories export to near 13.7 billion USD this year

Vietnam is striving to earn nearly 13.7 billion USD from its export of means of transportation, auto parts, and accessories this year from last year's 11.98 billion USD.

The expectation for the record is based on the continuing growth of the export in the last 12 years with a relatively high yearly rate of 18.4% and the size of the export value in the first months of this year.

In the first five months of this year, the revenue from the export neared 5.5 billion USD.

From the beginning of this year to June 15, means of transportation, parts, and accessories are among the few items that saw quite high export growth (up 14%) while the total export revenue of Vietnam and 37 out of the 45 products have dropped.

Vietnamese means of transportation, auto parts, and accessories have entered 43 markets all over the world thanks to their low prices, cheap labour, safety, and suitability to different needs.

Of the 43 export markets, there are 12 with export revenues excessing 100 million USD including Japan, the US, the Republic of Korea, Thailand, Canada, Indonesia, Italia, Singapore, Netherlands, China, Brazil, and Mexico.

Notably, Japan and the US post a revenue of over 1 billion USD each. Their combined revenue reached 2.184 billion, accounting for 39.7% of total export revenue of means of transportation, auto parts, and accessories.

As many as 28 markets saw positive growth, particularly six posted increases of over 50 million USD each, namely RoK (up by 152 million USD), Japan (95 million USD), Indonesia (82 million USD), Thailand (75 million USD), Brazil (62 million), and Canada (58 million USD).

Hanoi to host int’l fire safety expo this month

The Fire Safety and Rescue Vietnam 2023 exhibition will be held at the Vietnam-Soviet Friendship Labor Cultural Palace in Hanoi from July 19 to 21.

The expo is expected to be the largest international such showcase in Vietnam, featuring a wide range of advanced equipment and technology products. It is part of the 16th International Security and Fire Safety Exhibition and Conference, or Secutech Vietnam.

The main objective of the event is to promote collaboration among local and international professionals, businesses, and organizations, while also enhancing Vietnam’s expertise and manufacturing capabilities in the fields of firefighting and rescue.

Numerous firefighting and first-aid training programs will be conducted for local attendees with the assistance of professionals. These programs aim to raise public awareness about fire safety, prevention, and basic rescue practices.

In addition to the exhibition, several seminars and conferences will be organized, focusing on business regulatory compliance for fire safety and policy recommendations, particularly regarding construction activities.

The event is jointly held by the Vietnam Advertisement and Fair Exhibition JSC (VietFair) and Germany’s Messe Frankfurt Group, in collaboration with the Police Department of Fire Prevention and Fighting and Rescue under the Ministry of Public Security and the Vietnam Fire and Rescue Association (VFRA).

VinFast hands over 11,000 EVs to domestic customers

VinFast, a subsidiary automaker of conglomerate Vingroup, announced that it has handed over as many as 11,143 electric vehicles (EVs) to Vietnamese customers during the initial six months of this year.

Of the total were 4,976 VFe34s considered as the best-selling electric car model in Vietnam, 4,156 VF8s, 1,034 VF9s, and 977 VF5 plus cars.

June alone saw 2,660 EVs delivered by the company.

VinFast is staging a series of exhibitions themed "VinFast - For a Green Future" in 11 cities and provinces nationwide from July 7 - 17.

For the first time, the Vietnamese electric vehicle manufacturer has showcased its comprehensive electric mobility ecosystem, including e-buses, e-scooters, e-bikes, and a full range of electric cars.

During the 11-day event, visitors will have the opportunity to explore the detailed internal structure of each vehicle line through a display of units manufactured by world-class robots.

Walmart to seek business opportunities in Vietnam

US retailer Walmart is set to send Walmart senior personnel to attend the Vietnam International Sourcing Expo 2023 this September to explore cooperation opportunities with Vietnamese businesses.

Avineesh Gupta, vice president in charge of general merchandise and apparel sourcing at Walmart, is expected to lead a delegation to the HCM City exhibition to introduce and seek business opportunities with Vietnamese partners in Walmart’s global value chain, according to sources from the Ministry of Industry and Trade.

They will explore Vietnam’s macro-economic environment, supporting industry development policies, labour standards, intellectual property rights, production conditions, and import-export conditions, as well as potential areas for development in the country, said the sources.

They expect to connect with strategic suppliers of textiles and food, including seafood, in Vietnam with competitive prices and guaranteed quality meeting social and environmental responsibilities.

The Ministry of Industry and Trade reported that exporting products to the distribution system of foreign retail groups has become an effective and sustainable export channel in recent times.

Through these distribution channels, high quality Vietnamese products, including farm products, food, home appliances, furniture, footwear and textiles have reached out to millions of consumers worldwide.

The presence of the world’s leading retail distributors such as Aeon, Uniqlo, Decathlon, Coppel, Central Retail, Mega Market, and Walmart in the Vietnamese market testifies to the growing business cooperation between Vietnam and its partners, nameely the United States, the European Union, Japan, the Republic of Korea, Thailand and others.

The trend also shows the increasing attractiveness of Vietnam in the role as both a retail market and an important source of supply for the global supply chain.

Vietnam International Sourcing 2023 will be held in Ho Chi Minh City from September 13 to 15 to bring together big distributors in Vietnam, as well as those in the region and the world at large.

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