Viet Nam expects to pocket nearly US$ 5 billion from exporting fruits and vegetables this year, according to the Viet Nam Fruits and Vegetables Association.

In the first seven months, the export value is estimated to surpass US$ 3.34 billion recorded in 2022, mainly because of China’s post-Covid re-opening of its market, impressive surge in demand for durians and diversification of markets. 

It is forecast that in Q3 and Q4, nearly 7.6 million tons of fruits will be harvested, promising abundant supply for export orders. 

In the first six months this year, exports of fruits and vegetables hit a record high of US$ 2.7 billion, up 64.2 percent from the same period last year..

China remains Viet Nam’s biggest importer of fruits and vegetables as it accounts for nearly 59 percent of all Vietnamese fruit and vegetable exports, followed by the U.S., South Korea, Japan, and the Netherlands. 

Durian overtook dragon fruits to become the biggest hard currency earner with US$ 850 million.

Int'l expo on fire safety, rescue, smart building opens

An international exhibition on security technology and fire safety and rescue (Secutech Vietnam 2023) opened in the capital city of Hanoi on July 19.  

Jointly organised by the Fire Prevention and Rescue Police Department, the Vietnam Advertisement and Fair Exhibition JSC (VIETFAIR), and the Messe Frankfurt Group from Germany, the three-day event saw the participation of over 350 exhibitors from 23 countries and territories.

Among exhibitors are those from the UK, the US, France, Germany, India, China, Taiwan (China), Japan, the Republic of Korea, Singapore, New Zealand, and Vietnam. 

They are showcasing advanced products and technologies in fire-fighting, security, safety, prevention and rescue, and equipment used in industrial zones, roads, banks, buildings, and smart houses in 490 booths. 

Director of the Fire Prevention and Rescue Police Department Nguyen Tuan Anh said the exhibition will help domestic and foreign suppliers connect and establish new partnerships to serve the increasing demand for products of fire prevention and fighting, rescue, security, and safety.

In his speech at the expo's opening ceremony, he also described the event as an essential platform for domestic and foreign enterprises to research and invest in the security, safety, and fire protection industry in Vietnam.

This is an important factor to help the fire prevention and fighting police force and the agencies and organisations and the people, to have domestically produced products and equipment for fire prevention and fighting, to meet their work requirements, he said. 

A dialogue between the Fire Prevention and Rescue Police Department, functional units of the Ministry of Construction, the Vietnam Chamber of Commerce and Industry, and domestic and foreign enterprises to solve difficulties and obstacles in the field of fire prevention and fighting will be held on the sideline of the expo.  

It will also include a seminar discussing fire prevention means and smart fire fighting technology applying the achievements of the industrial revolution 4.0. 

Secutech Vietnam 2022 held in Ho Chi Minh City featured more than 250 booths of agencies, organisations, manufacturers, and suppliers in the industry from many countries worldwide.

16th Int’l exhibition on electrical technology opens in HCM City

The 16th International Exhibition and Electrical Technology and Equipment (Vietnam ETE 2023), along with the 13th International Exhibition of Energy Saving and Green Power Products and Technologies (Enertec Expo 2023), was opened in Ho Chi Minh City on July 19.

The 3-day events attract the participation of nearly 350 leading domestic and international enterprises from China, Germany, France, the US, Japan, and the Republic of Korea, among others, with 500 booths.

On display are power generating equipment and systems, smart electrical equipment and technology, electrical equipment, renewable and green energy, and electrical services and solutions.

Nguyen Thi Kim Ngoc, Vice Chairwoman of the municipal Department of Industry and Trade, said enterprises in HCM City have been promoting production, business and research of energy-saving products, and developing new and environmentally friendly renewable energy sources.

The exhibitions offer a chance for the business community to strengthen trade promotion and technology transferring, and contributing to raising th awareness of the community and consumers about economical and efficient use of energy, she added.

Do Thanh Hai, Deputy Minister of Industry and Trade, said the Government has developed and promulgated mechanisms to encourage the development of clean and renewable energy such as hydropower, wind power, solar power, and biomass with a series of priority mechanisms and policies, as well as breakthroughs, which are expected to create a strong driving force for the development of this field in Vietnam.

Recycling straw helps increase value of paddy straw-based circular economy

Recycling straw not only helps increase the value of paddy straw-based circular economy but also prevents burning rice straws.

Every year, Vietnam has 47 million tons of rice straw, especially the Mekong Delta has over 25 million tons of straw. However, only about 20 percent -30 percent of paddy straw is recovered to make straw mushrooms, animal feed, and naturally derived cushioning materials for fruit transport. Recycling crop residues and stubble from agriculture aims to maximize the paddy straw-based circular economy in agricultural production as well as solve the problem of burning straw.

Scientists have shown that the Mekong Delta has an annual harvest of about 24 million tons of rice, generating about 26-27 million tons of rice straw.

Currently, about 70 percent of crop straw is burned in the open air field or buried in the ground. Furthermore, burning straw causes loss of nutrients in straw, loss of biodiversity and serious environmental pollution and air pollution while burying straw in flooded fields causes increased methane emissions and greenhouse gas emissions. Therefore, it is necessary to have specific policies and technical guidelines for the management and use of rice straw in the Mekong Delta in particular, and in Vietnam in general, in the direction of low-emission and circular agriculture.

In fact, it has been alarming that farmers burning straw after harvesting for many years. Many solutions to curb the situation have been introduced, but so far 70 percent of straw is burned or buried in the soil while just 30 percent of the straw is reused for growing mushrooms, composting or making animal feed. Scientists announced the government should have a solution to use up this amount of straw, to turn it into money not only for farmers, for businesses but also for the benefit of the environment.

The Ministry of Agriculture and Rural Development has worked with administrations in Mekong Delta provinces to soon submit to the Government a project of 1 million hectares of high-quality rice with the goal of reducing greenhouse gas emissions. According to Deputy Minister of Agriculture and Rural Development Tran Thanh Nam, agricultural by-products are resources that the sector must take heed of them for increased value in rice cultivation and farmers’ increased income.

Noticeably, the International Rice Research Institute (IRRI) has coordinated with the Ministry of Agriculture and Rural Development and related partners to deploy high-quality and low-emission rice production conversion technology solutions for Vietnam, through the organization of events on technologies and equipment to support circular agriculture such as mechanized collection of dry and wet straw, production of organic fertilizer from straw.

The Department of Crop Production under the Ministry of Agriculture and Rural Development said that it will publish the process and a manual for rice straw management towards recirculating and low-emission agriculture in the Mekong Delta.

New industrial park in Dong Nai gets nod

The prime minister has given in-principle approval for a project to construct Long Duc 3 Industrial Park in Dong Nai Province, with an investment of VND1,800 billion.

The Long Duc 3 Industrial Park infrastructure development project, invested by the Long Duc 3 Industrial Park Joint Stock Company, has received Government approval through Decision 842 signed by Deputy Prime Minister Le Minh Khai on July 14, according to the Government news site at baochinhphu.vn.

The project is situated in Long Duc Commune, Long Thanh District, Dong Nai Province, covering an area of 244.5 hectares.

Infrastructure development of the 50-year project will be completed within 36 months from the time the land is handed over by the authority.

Dong Nai authorities will inspect and determine the investor’s eligibility for land lease from the Government, and allow land use purpose conversion for project implementation.

Dong Nai will prepare and approve the subdivision plan for the construction of Long Duc 3 Industrial Park, ensuring a synchronized and modern infrastructure system.

Pomina Steel sells 20% stake to Japanese investor

Pomina Steel Corporation (HOSE: POM) has cut a deal to sell nearly 70.2 million shares, or a 20% stake, to Japanese firm Nansei Steel at VND10,000 per share.

This announcement was made during the company’s shareholders meeting held on July 14.

Pomina Steel will issue shares in two rounds, and expect to obtain over VND700 billion. The first round is planned for August, during which more than 10.6 million shares will be offered. The remaining shares will be issued in 2024.

Nansei Steel will not be allowed to transfer these shares over a period of three years.

Pomina Steel is currently facing financial difficulties, as indicated by a net loss of nearly VND1.1 trillion in the previous year and an additional loss of VND186 billion in the first quarter of 2023.

Do Tien Si, general director of the company, attributed these losses to a significant decline in steel demand caused by a sluggish real estate market. The high costs associated with operating a new blast furnace project have also contributed to the financial woes.

Solutions to unblock bottlenecks in logistics

The Southeast region plays a vital role and holds a significant position in the national economy, contributing more than 30 percent to the GDP and approximately 45 percent to the national budget.

This situation results in excessively high logistics costs, leading to a decline in the competitiveness of goods, both in the region and the country as a whole. Statistics from various Vietnamese business associations indicate that Vietnam's current logistics costs represent nearly 20 percent of the total production costs of goods, exceeding those of Thailand, Malaysia, and notably Singapore, where it is only 8 percent. Therefore, how can Vietnam's goods compete when logistics costs alone already exceed those of other countries by 10 percent?

Another bottleneck in logistics arises from competition. A significant statistic reveals that 72.8 percent of the total export turnover belongs to foreign enterprises, and they typically prioritize serving domestic manufacturing companies, which means they have their own logistics providers. This situation puts Vietnamese export businesses at a disadvantage, as they have limited cargo volume and are compelled to consolidate shipments with other goods. Consequently, this leads to high costs, prolonged timelines, and even delays in meeting delivery deadlines for their partners.

In recent times, the Government has accelerated investments in transportation infrastructure for the Southern region. When these projects become operational, they will significantly reduce transportation costs and contribute greatly to lowering the cost of goods.

However, addressing the overall logistics challenge requires urgent investment in logistics infrastructure and warehouse facilities to establish an efficient ecosystem. For the Southeast region, it is crucial to invest in a comprehensive national and international logistics system that integrates seaports, airports, international border gates, key economic corridors, and interregional trade routes.

The development of industrial belts, urban areas, services, and logistics along Ho Chi Minh City's Ring Road No.3 and the region's expressways is also necessary. Additionally, the Government should seek additional support from private capital to swiftly construct logistics centers that operate in sync with the infrastructure, facilitated through preferential policies.

Another vital solution is to reform administrative procedures. Customs agencies should work towards harmonizing and flexibly adjusting procedures and regulations to ensure a smooth flow of goods. Standardizing and systematizing legal documents in areas such as road transportation, waterways, freight forwarding, and international conventions are necessary to eliminate violations of integration commitments and remove obstacles to business operations.

Additionally, establishing a shared data system for Vietnam's seaports, connecting them with ports in the region and the world is important to enhance operational efficiency and compete effectively with neighboring port clusters such as Singapore, Thailand, and Hong Kong. Prompt improvements are needed, especially considering that countries like Laos, Cambodia, and Thailand have a significant volume of transit goods passing through Vietnam. As these countries focus on developing railways or ports that are connected to multiple nations in the region, it leads to the sharing of goods sources.

A transformative and comprehensive solution, combining investments in physical infrastructure and digital connectivity through digital transformation, will eliminate logistics bottlenecks and facilitate the seamless flow of goods, directly impacting economic growth indicators. Undoubtedly, this is a substantial task that requires effective leadership to foster regional linkages and devise policies to attract investments.

Vietnamese phone, component and computer exports plummet

Vietnam’s phones, components and computers faced an unprecedented decline in export orders between the fourth quarter of last year and the first half of this year due to high inflation coupled with an economic downturn in major markets, according to details given by the Ministry of Industry and Trade.      

Statistic indicate that the country raked in US$49.5 billion from its export of phones, components and computers in the first half of the year, of which phone and component exports dropped by 17.9% to reach US$24.3 billion and computers and electronic exports fell by 9.3% to US$25.2 billion on-year.

The sharp decline recorded in consumption demand in several major markets such as the United States, the EU, and Japan due to the economic downturn have exerted a direct impact on export activities of the Vietnamese phone and component manufacturing industry.

According to a forecast made by market research firm Counterpoint Research, the global phone market remains under downward pressure, with demand likely to rebound in the remaining months of the year.

Tran Duy Dong, director of the Import-Export Department under the Ministry of Industry and Trade, pointed out that the electronics sector will continue to face challenges ahead as inflation remains high over the coming months.

Furthermore, the global economy will recover slowly and continue to have a certain impact on the trend of tightened spending for conventional and luxury products, especially for textiles, footwear, furniture, and electronic components in several major consumption markets in both the US and the EU, he noted.

Coffee exports to Indonesia and Algeria enjoy three-digit growth

Despite coffee exports to several markets seeing a decline in the first half of the year, coffee exports to Algeria and Indonesia witnessed a three-digit growth compared to the same period from last year, according to statistics compiled by the General Department of Vietnam Customs.      

Vietnamese coffee exports throughout the reviewed period reached over one million tonnes, worth US$2.39 billion, representing a fall of 3.1% in volume but a rise of 2.3% in value against the same period from last year.

The average export price of Vietnamese coffee surged by 5.2% to US$2,374 per tonne, up 5.2% compared to last year’s corresponding period.

While coffee exports to Germany, Japan, Spain, and Belgium experienced a downward trajectory, exports to Italy, the United States, Russia, Algeria, Indonesia, and the Netherlands all saw robust growth.

Most notably, coffee exports to the Indonesian and Algerian markets during the six-month period soared by 161.5% and 115.1% to US$82,079 million and US$92,138 million on-year, respectively.

According to industry insiders, global coffee prices are expected to decline over the short term due to concerns regarding a shortage of supply sources, with Vietnam’s coffee output during the year-end harvest decreasing by about 10%.

Domestic automobile market grows 15 per cent in Q1

Members of the Vietnam Automobile Manufacturers Association (VAMA) sold 23,800 vehicles in June, up 15 per cent from the previous month, VAMA announced on July 12.

Of the sold vehicles, there were 17,334 passenger cars, up 20 per cent; 6,344 commercial vehicles, up 4 per cent; and 122 special-use vehicles, a drop of 17 per cent compared to the previous month.

In terms of vehicle origins, the sales of domestically-assembled automobiles reached 15,488 units, up 28 per cent, while the number of imported completely built-up (CBU) ones was 8,312, down 4 per cent from the previous month.

In the first six months of 2023, VAMA members sold a total of 137,327 units, down 32 per cent compared to the same period last year with the sales of passenger cars, commercial vehicles, and special-use vehicles dropping by 37 per cent, 11 per cent, and 65 per cent, respectively.

According to experts, besides sales by VAMA member units, the Vietnamese auto market also includes other brands such as Audi, Jaguar Land Rover, Mercedes-Benz, Nissan, Subaru, Volkswagen, and Volvo, but they do not disclose business results.

Honda Vietnam also announced that its retail sales of motorcycles and automobiles in June decreased by 6.2 per cent and 19.2 per cent respectively compared to the previous month due to market difficulties.

In June, Honda Vietnam sold 133,777 motorbikes, with 17,475 exported, and 1,419 cars of all kinds, amounting to a decrease of 19.2 per cent against the previous month.

Meanwhile, Thành Công Group (TC Group) on July 12 announced its sales of 5,108 Hyundai automobiles in June, which brought its six-month figures to 28,011 units sold.

In addition, VinFast reported that it handed 2,660 electric cars over to customers in June. So, in the first half of this year, VinFast delivered 11,143 units. 

According to experts, since the Government approved the reduction of 50 per cent of the registration fee for new cars manufactured and assembled in Việt Nam from July 1 (corresponding to a reduction of 5-6 per cent of the price with fees/taxes being included), it is forecast that the Vietnamese auto market will prosper in the coming months.

Vietnamese Goods Week in Thailand 2023 to showcase southern products

The Vietnamese Goods Week 2023 in Thailand is set to take place from August 16 to 20 at the Central World Trade Centre in Bangkok, focusing on the theme of "HCM City and the Mekong Delta".

In the sixth edition this year, this event aims to showcase products from the southern region of Việt Nam and will feature the participation of seven localities, namely HCM City, Long An, Bến Tre, Kiên Giang, Bạc Liêu, Trà Vinh and Đồng Tháp.

Approximately 80 businesses are expected to participate in trade connection activities and product introductions during the event. Notably, 50 of these businesses will showcase their typical products, which adhere to local export standards.

In addition to the product displays, a Việt Nam-Thailand trade connection conference will also be held.

Deputy Minister of Industry and Trade Đỗ Thắng Hải expressed that after six years of continuous organisation, the Vietnamese Goods Week in Thailand, organised by Central Retail Group, has had a significant impact, contributing to the growth of export turnover between the two countries by facilitating connections for hundreds of small- and medium-sized enterprises, enabling them to promote their local products in the Thai market.

Thailand has consistently been Việt Nam's top ASEAN commercial partner over the years.

In 2022, the total import-export turnover between the two countries reached US$21.6 billion, up 15.1 per cent compared to 2021, of which Việt Nam's exports amounted to $7.5 billion, up 21.5 per cent year-on-year, while imports from Thailand reached $14.1 billion, up 12 per cent year-on-year. Both countries aim to elevate bilateral trade turnover to $25 billion in the near future.

Swedish firms' investment targets innovation in Vietnam

Despite macroeconomic challenges, Vietnam has emerged as an innovation hub, attracting many foreign investors, especially those from Sweden, said Eliseo Barcas, CEO of Tetra Pak Vietnam.

Bloom, Vietnam’s first-ever global innovation centre for the food and beverage (F&B) industry, was launched in Binh Duong province in early July. The state-of-the-art innovation centre, designed by Tetra Pak in partnership with DenEast of Sweden, aims to revolutionise the country’s F&B industry through its innovative and cost-efficient product creation model.

According to Eliseo Barcas, the Bloom innovation centre signifies Tetra Pak’s commitment to strengthening long-term and sustainable investment in Vietnam, contributing to the nation's innovation and transformation targets as well as unlocking the immense potential of the local F&B industry.

According to Swedish Ambassador to Vietnam Ann Mawe, numerous renowned Swedish companies such as ABB, AstraZeneca, Atlas Copco, Electrolux, Ericsson, IKEA, Oriflame, SKF, Volvo, and Tetra Pak have established their presence in Vietnam.

With the signing of the European Union – Vietnam Free Trade Agreement (EVFTA), Swedish companies are increasingly showing a keen interest in Vietnam, considering it an important destination for their investment expansion plans, she stressed.

Statistics from the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment show that Swedish investors poured nearly 168 million USD into Vietnam in the first half of 2023, including five newly-registered projects worth 154.6 million USD.

As of June this year, the accumulated capital invested by Swedish companies in Vietnam had been nearly 680.5 million USD.

David Liden, Trade Commissioner of Sweden to Vietnam and Country Manager for Business Sweden, emphasised that the top priority of Swedish firms when investing in Vietnam is ensuring sustainability.

This is clearly demonstrated through efforts of corporations like Ericsson, Assa Abloy, Polarium, and Hes, he noted.

Notably, in 2021, AstraZeneca announced its commitment to help enhance Vietnam's pharmaceutical production capacity, increasing its total investment in the Southern Asian nation to 308 million UDS for the period of 2020-2024.

Pham Hong Quat, Director of Science and Technology Enterprise and Market Development Department under the Ministry of Science and Technology, highlighted the “Triple Helix' cooperation model of Sweden which tightens the interaction between universities, industries, and government agencies to foster comprehensive socio-economic development.

Vietnam should learn the model, he said.

Sustainable tourism an inevitable trend: Insiders

With more than 5,000 accommodation establishments receiving Travel Sustainable badge of Booking.com, Vietnam is among the top five countries in Asia-Pacific region with the highest number of the providers of this kind of service recognised for their efforts to operate more sustainably.

According to Booking.com 2023 Sustainable Travel Report which contains insights gathered from more than 33,000 travelers across 35 countries and territories, 80% of the global travelers say that sustainable travel has become more and more important to them.

Some of 97% of Vietnamese holiday-makers said they wish to take part in sustainable tours in the future, and this proves that this type of tourism has gradually become popular and received warm response from vacationers. 

Vietnamese excursionists expressed a desire to travel more sustainably over the coming 12 months and 75% of them said that they are willing to pay more for travel options with a sustainable certification, as a way to make sure they are making a positive impact.

The report reveals that Vietnamese tourists are taking the initiative in reward points, loyal customers, promotion programmes for making more sustainable choices, and 79% of respondents said they feel secured when they stay in accommodation facilities which have been recognised for their sustainability efforts with a Travel Sustainable badge.

These changes in tourism habits require tourism destinations and accommodation facilities to quickly change for better adaptation.

Dang Xuan Sơn, Chairman of Responsible Travel Club Vietnam (RTC), acknowledged that sustainable tourism is necessary in Vietnam to inspire and create a driving force for environmental protection and eliminate carbon dioxin while preserving cultural values and attracting more international tourists.

However, the transition from a traditional model to a standard sustainable one comes with a certain cost that not all accommodation establishments are willing to pay for. Meanwhile, Vietnam currently has 38,000 accommodation establishments, but mostly of small and medium sizes.

Companies suggest opening more tourism representative offices abroad

Travel companies have suggested opening more tourism representative offices abroad, with priority to China, Thailand, India, Europe and the US, in an attempt to boost the attraction of foreign tourists now that the bottleneck in the field of visa has been removed.

At present, Vietnam has only three such offices in Japan, the Republic of Korea (RoK), and the UK.

Head of the Vietnam Tourism Association (VITA)’s Communications Department and CEO of Flamingo Redtours Nguyen Cong Hoan said Vietnam spends around 2 million USD on tourism promotion each year, or about 2.9% of Thailand’s, 2.5% of Singapore’s, and 1.9% of Malaysia’s. Therefore, it is impossible to arrange large-scale stalls or design effective business-to-business and business-to-consumer meetings.

He suggested that funding for the offices should be drawn from diplomatic agencies, the Ministry of Industry and Trade, the Tourism Development Assistance Fund, and the private sector.

Highlighting the need to open such offices abroad, CEO of AZA Travel Nguyen Tien Dat said although Vietnam is not a big market, many countries such as the RoK, Japan, Thailand, Indonesia, and Singapore have opened their tourism representative offices here which are operating effectively.

VITA Chairman Vu The Binh proposed that the State should well manage destinations and popularise Vietnam’s tourism trademark while businesses should develop tour products.

In the first half of this year, indexes regarding international and domestic tourist arrivals or total revenue met over 60% of the yearly plan, partly thanks to the impact of the Law on amendments and supplements to several articles of the Law on Entry, Exit, Transit and Residence of Foreigners in Vietnam.

Hoan expected that between now and the year’s end, Vietnam’s tourism industry will grow strongly and shape tourism products for foreign visitors in Vietnam in 2024, 2025 and subsequent years.

A report by Google Destination Insights ranked Vietnam at the seventh place among the most searched destinations from March-June, and the only country in Southeast Asia in the top 20.

The Vietnamese Government also issued a new visa policy for international visitors arriving in the country, tripling visa waivers from 15 to 45 days for selected countries. The changes will come into force on August 15.

Ample room remains for Vietnam-Malaysia cooperation: Malaysian minister

Malaysian Minister of Investment, Trade and Industry Tengku Datuk Seri Utama Zafrul suggested Vietnam and Malaysia cooperate to attract more investment in the Association of Southeast Asian Nations (ASEAN).

In an interview granted to the Vietnam News Agency (VNA)’s correspondents in Kuala Lumpur ahead of Malaysian Prime Minister Anwar Ibrahim’s official visit to Vietnam from July 20-21, the minister said he will accompany the PM with the aim of promoting trade and investment ties between the two countries.

He stressed that Vietnam and Malaysia are major trade partners in ASEAN, adding for Vietnam, Malaysia ranks fourth among other ASEAN member nations.  

In FDI, Malaysia is Vietnam’s third biggest investor in the region, and ample room remains for the two countries to strengthen their collaboration in both investment and trade, especially the export and import of agricultural and aquatic products.

Apart from agriculture, the two countries should cooperate in the green and digital economy, in which both are pouring investments, he said, suggesting they make preparations to access markets outside ASEAN.

Regarding Halal products, Zafrul said the two countries should work together in exporting them to not only ASEAN but also other markets worldwide.

The minister expressed his belief that there are substantial cooperation opportunities for Vietnamese and Malaysian enterprises, saying health care and cosmetics would be taken into account, but agricultural products and food should be top priorities.  

According to Zafrul, representatives from the Malaysia External Trade Development Corporation (MATRADE) and the Malaysian Investment Development Authority (MIDA) will also visit Vietnam on this occasion. They are scheduled to hold working sessions with Vietnamese businesses that target exports to Malaysia.

The official said Malaysia hopes Vietnamese businesses will consider it the global hub for Halal product export, noting his ministry will host the annual Malaysia International Halal Showcase in September, with the participation of numerous domestic and foreign companies.

Vietnamese Goods Week in Thailand 2023 to showcase southern products

The Vietnamese Goods Week 2023 in Thailand is set to take place from August 16 to 20 at the Central World Trade Centre in Bangkok, focusing on the theme of "Ho Chi Minh City and the Mekong Delta".

In its sixth edition, this year’s event aims to showcase products from the southern region of Vietnam and will feature the participation of seven localities, namely HCM City, Long An, Ben Tre, Kien Giang, Bac Lieu, Tra Vinh and Dong Thap.

Approximately 80 businesses are expected to participate in trade connection activities and product introductions during the event. Notably, 50 of these businesses will showcase their typical products, which adhere to local export standards.

In addition to the product displays, a Vietnam-Thailand trade connection conference will also be held.

Deputy Minister of Industry and Trade Do Thang Hai expressed that after six years of continuous organisation, the Vietnamese Goods Week in Thailand, organised by Central Retail Group, has had a significant impact, contributing to the growth of export turnover between the two countries by facilitating connections for hundreds of small- and medium-sized enterprises, enabling them to promote their local products in the Thai market.

Thailand has consistently been Vietnam’s top ASEAN commercial partner over the years.

In 2022, the total import-export turnover between the two countries reached 21.6 billion USD, up 15.1% compared to 2021, of which Vietnam’s exports amounted to 7.5 billion USD, up 21.5% year-on-year, while imports from Thailand reached 14.1 billion USD, up 12%. Both countries aim to elevate bilateral trade turnover to 25 billion USD in the near future.

Banks asked to consider solving financial difficulties of fishery businesses

Deputy Prime Minister Le Minh Khai has requested the State Bank of Vietnam (SBV) and relevant ministries and organisations to consider solutions to solve financial difficulties of enterprises in the fishery sector.

Specifically, according to Document No. 639/TTg-KTTH signed by Deputy Prime Minister Le Minh Khai on July 12, SBV has been requested to coordinate with the Ministry of Agriculture and Rural Development (MARD), and relevant ministries and organisations to consider adjusting lending rates, granting credit, restructuring debts, as well as preparing a credit package of 10 trillion VND (423 million USD) to support enterprises in the forestry and aquatic industries.

The document was issued in reply to the Vietnam Association of Seafood Exporters and Producers (VASEP)'s official dispatch which reports their challenges and propose solutions to remove the difficulties of the fishery industry.

Accordingly, seafood enterprises have been facing many difficulties, such as high production and transportation costs, depleted capital, high borrowing interest rates, and reduced orders, so they have struggled to maintain production and business activities, and needed solutions to solve problems in a timely manner.

VASEP said loan interest rates are the biggest challenge for the industry so the association hoped the Government, the Ministry of Finance and the central bank will solve this challenge.

VASEP recommended that banks cut the interest rate to below 4% for US dollar loans and below 7% for VND loans to support export enterprises. 

It also suggested that seafood enterprises be allowed to delay payment of 4-6 months for the loans having maturity date in the third quarter of 2023. They also continue to take loans to stably purchase raw materials for processing goods exported until this year's end.

In addition, VASEP believed that it is necessary to have a credit package of 10 trillion VND to support the seafood businesses in purchasing fishery materials from farmers.

Also in Document No. 639/TTg-KTTH, Khai requested the Ministry of Finance to coordinate with relevant ministries and agencies to urgently implement value-added tax refund for businesses according to current regulations.

At the same time, they must consider and respond to VASEP's recommendations on prolonging policies on exemption and reduction of tax, land rent, fees and charges as well as extension of payment for those.

The central bank and the Vietnam Bank for Social Policies are asked to consider and respond to  recommendations on continuing lending to the seafood enterprises from the social policy bank to pay wages for workers having to quit jobs.

The Ministry of Planning and Investment coordinates with MARD and relevant ministries, agencies and localities to simplify investment procedures in setting up new seafood processing factories and innovating technology to increase capacity.

According to VASEP, in the first six months of 2023, total aquatic product export turnover reached 4.13 billion USD, down 27.4% over the same period in 2022, reaching 41.5% of the plan.

Of which, the total export turnover in June was estimated at nearly 800 million USD, down 21% over the same period in 2022. Key products saw a strong reduction in June as well as in the first half of this year.

Shrimp exports in June were estimated at 341 million USD, the highest level since the beginning of the year. But it was still down 18% year on year. In the first half of the year, shrimp exports reached nearly 1.6 billion USD, 31% lower than in the first half of 2022.

Pangasius export in June was estimated at 156 million USD, an reduction of 26% on year. This figure in the first six months was estimated at 885 million USD, 38% lower than the same period of last year.

Tuna export turnover reached 64 million USD in June, down 29% year on year. This turnover was 380 million USD in the first half of the year, down 31% compared to the corresponding period in 2022.

Demand recovery expected to drive GDP growth: Experts

It’s a big challenge for the economy to reach this year’s GDP growth target of 6.5%, and economic expansion is hoped to be boosted by some important demand factors in the second half of 2023, experts have said.

With an economic panorama not so bright in H1, a growth rate of 6.5% for this year is a highly challenging target, they told a macro-economic forum held by the Ho Chi Minh City University of Banking (HUB) on July 18.

Except for 2020 that was impacted by the COVID-19 pandemic, the GDP growth rates in the first and second quarters of 2023 were the lowest compared to the same periods of recent years. Growth was not positive in all sectors, especially industry and construction, an HUB research group pointed out.

Industrial production is facing a year full of difficulties due to falling consumption demand in many countries that are large trading partners of Vietnam as they have been tightening their monetary policy to curb inflation.

The industry and construction sector’s added value increased by a mere 0.44% in H1, the slowest H1 expansion since 2011, and contributed only 0.15 percentage point to the overall growth in the economy’s added value.

Given the strong decline in this sector, experts held that this is one of the main factors affecting Vietnam’s economic growth in H2.

HUB Rector Assoc. Prof. and Dr Nguyen Duc Trung said the H1 growth was only 3.72%, a 14-year low, so it is very difficult to achieve this year’s target of 6.5%.

Some growth hampering factors include the possibility of global economic recession, the monetary policies tightened to rein in inflation in developed countries, along with geopolitical tensions in some countries and their global influence. As a result, industrial production will continue enduring severe impacts, and the processing and manufacturing industry may lose its role as the biggest growth driver, he elaborated.

Basing on the H1 economic situation, the research group issued two growth scenarios for 2023. Accordingly, GDP may rise by 5.8 - 6.3% in the low-case scenario, or reach the Government-set target or even higher, 6.5 - 6.8%, in the positive one.

For his part, HUB Vice Rector Assoc. Prof. and Dr Nguyen Khac Quoc Bao perceived that despite numerous difficulties and challenges, this year’s economic growth will reach the target of 6.5% while inflation be within the cap of 4.5% as predicted by some state agencies.

At the forum, experts said the 2023 growth will be fueled by some important demand factors.

The recovery of consumption demand curbed during the pandemic-hit years has yet to show signs of stagnation despite less optimistic growth forecasts. Efforts to disburse public investment may help foster construction and related economic activities in H2. The monetary policy may be eased further to stimulate demand. Besides, the re-opening of the Chinese market is expected to help shore up global supply chains, as well as import and tourism demand from the world’s second largest economy, they explained.

Aquatic product exports expected to recover from late Q3

The Ministry of Agriculture and Rural Development (MARD) forecast that aquatic product exports will bounce back at the end of the third quarter and reach the yearly revenue target of 10 billion USD.

It reported that in the first six months of this year, the export value of aquatic products hit nearly 4.2 billion USD, down over 27% year-on-year.

To achieve the yearly target, many businesses have diversified products, focused on intensive processing, and invested in value chains.

Meanwhile, the MARD and localities will further provide fishermen with market information and guide them to implement solutions to deal with the European Commission (EC)’s “yellow card” warning against Vietnamese seafood, and step up inspections and handling of cases of illegal, unreported and unregulated (IUU) fishing, towards a sustainable fishery sector.

Competent agencies will also work to remove obstacles relating to the Chinese and US markets, diversify export markets, and coordinate with banks to support businesses.

National petroleum-gas reserve infrastructure planning approved

Deputy Prime Minister Tran Hong Ha on July 18 signed a decision approving the infrastructure planning for national petroleum and gas reserves for the 2021-2030 period, with a vision towards 2050.

The overall objective of the planning project is to develop an infrastructure system for the reserves, including strategic reserves, production reserves, commercial reserves, transport, and distribution. The system building is expected to meet economic, technical, and environmental requirements; and ensure sufficient, safe, continuous reserves and supplies for socio-economic development, national defence, and security.

The planning project also aims to ensure that the storage capacity of crude oil and petroleum products nationwide reaches 75-80 days of net imports; and the storage capacity of gas reserves meets the domestic market demand.

Specifically, it targets to stabilise the commercial petroleum infrastructure to meet demand in the local market, with an additional storage capacity of 2,500,000-3,500,000 cubic metres for 2021-2030 and 10,500,000 cubic metres after 2030.

The planning looks to form infrastructure for national reserves with a storage capacity of 500,000-1,000,000 cubic metres of petroleum products and 1,000,000-2,000,000 tonnes of crude oil within the 2021-2030 period.

Swedish firms' investment targets innovation in Vietnam

Despite macroeconomic challenges, Vietnam has emerged as an innovation hub, attracting many foreign investors, especially those from Sweden, said Eliseo Barcas, CEO of Tetra Pak Vietnam.

Bloom, Vietnam’s first-ever global innovation centre for the food and beverage (F&B) industry, was launched in Binh Duong province in early July. The state-of-the-art innovation centre, designed by Tetra Pak in partnership with DenEast of Sweden, aims to revolutionise the country’s F&B industry through its innovative and cost-efficient product creation model.

According to Eliseo Barcas, the Bloom innovation centre signifies Tetra Pak’s commitment to strengthening long-term and sustainable investment in Vietnam, contributing to the nation's innovation and transformation targets as well as unlocking the immense potential of the local F&B industry.

According to Swedish Ambassador to Vietnam Ann Mawe, numerous renowned Swedish companies such as ABB, AstraZeneca, Atlas Copco, Electrolux, Ericsson, IKEA, Oriflame, SKF, Volvo, and Tetra Pak have established their presence in Vietnam.

With the signing of the European Union – Vietnam Free Trade Agreement (EVFTA), Swedish companies are increasingly showing a keen interest in Vietnam, considering it an important destination for their investment expansion plans, she stressed.

Statistics from the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment show that Swedish investors poured nearly 168 million USD into Vietnam in the first half of 2023, including five newly-registered projects worth 154.6 million USD.

As of June this year, the accumulated capital invested by Swedish companies in Vietnam had been nearly 680.5 million USD.

David Liden, Trade Commissioner of Sweden to Vietnam and Country Manager for Business Sweden, emphasised that the top priority of Swedish firms when investing in Vietnam is ensuring sustainability.

This is clearly demonstrated through efforts of corporations like Ericsson, Assa Abloy, Polarium, and Hes, he noted.

Notably, in 2021, AstraZeneca announced its commitment to help enhance Vietnam's pharmaceutical production capacity, increasing its total investment in the Southern Asian nation to 308 million UDS for the period of 2020-2024.

Pham Hong Quat, Director of Science and Technology Enterprise and Market Development Department under the Ministry of Science and Technology, highlighted the “Triple Helix' cooperation model of Sweden which tightens the interaction between universities, industries, and government agencies to foster comprehensive socio-economic development.

Vietnam should learn the model, he said.

PM orders special development policies, mechanisms for southeast region

Prime Minister Pham Minh Chinh requested special development policies and mechanisms be issued for the southeast region, while chairing a conference to debut the Coordinating Council for the Southeast Region held in Ho Chi Minh City on July 18.

In the immediate future, PM Chinh, who is also head of the council, said the focus should be placed on three strategic breakthroughs linked to three growth drivers of consumption, investment, and export. Efforts must be made to address transportation bottlenecks, protect the living and ecological environment, and deal with housing issues for workers and low-income earners, and slums in urban areas.

The southeast region covers an area of 23,551 sq.km, accounting for 7.1% of the country's total. It has a population of around 18.8 million people, or 18.9% of the national. As the biggest economic hub of the country, it holds a significant position and role in the national socio-economic development.

Last year, its gross regional domestic product (GRDP) made up around 31% of the country’s total while exports and budget revenue made up about 35% and 38% of the country's total figures, respectively. Its urbanisation rate reached 66.5%, which was 1.8 times the national average.

According to the Politburo’s resolution and the Government’s action programme, the southeast region is expected to become a dynamic and fast-growing area, a hub of sci-tech and innovation, industry and logistics, and an international financial centre with high competitiveness in the region. It also strives to take the lead in renewing growth model and digital transformation.

The region aims for sustainable development in tandem with protecting the environment and adapting to climate change. It seeks to allocate and utilise natural resources in an effective manner while preserving historical, cultural and natural heritages.

The Ministry of Planning and Investment was assigned to accelerate the planning of the region to ensure strategic connectivity and infrastructure development that creates a unified economic space among the localities within its scope.

The PM suggested considering the establishment of a Regional Infrastructure Development Fund to allocate separate funding for the interconnected sectors and devise policies to pool social resources for collaborative activities.

Regarding regional and provincial planning, he asked the council members to complete relevant procedures to promptly submit relevant plans to competent authorities for approval, thus laying a foundation to coordinate regional connectivity activities.

With determination, unity and dedication of ministries, agencies and localities, as well as support from experts, scientists, research institutes and relevant partners, PM Chinh said he believes that the region will fulfill its assigned tasks for prosperous development.

The conference heard proposals to establish startup centres, promote innovation and artificial intelligence in Ho Chi Minh City and Binh Duong and Dong Nai provinces. Delegates also discussed solutions to addressing environment issues and climate change adaptation, with a focus on protecting the environment in Dong Nai and Saigon river basins; digital transformation and the establishment of a regional data centre.

They also proposed solutions to developing industrial, urban, service, and logistic belts along Belt 3 and Belt 4 of Ho Chi Minh City. Specific mechanisms and policies were also suggested to develop transportation infrastructure, green urban areas and financial centres, among others.

Digital transformation key to breakthrough in cooperatives

Vietnam is now home to over 2,000 hi-tech cooperatives which are promoting smart agriculture and digital rural areas in the new-style rural development effort.

However, digital transformation process in cooperatives remains slow with a shortage of a clear strategy and specific actions.

The majority of cooperatives pursuing digital transformation are small-scale with few members. In many farming areas, cooperatives have a limited role in promoting production, trade and economic development.

As many cooperative members still have vague understanding of the concept of digital transformation and face difficulties in technological application, they are yet to be ready for the work under the current conditions.

In the Mekong Delta province of Tra Vinh, the provincial Cooperative Alliance has partnered with Sorimachi company to support the collective economic area and cooperatives in their digital transformation through the application of information technology in production and trade, capacity improvement, and sustainable development.

Representatives of the Cooperative Alliance in several localities shared the view that most cooperatives focus on applying technology in irrigation system, grid network, and traceability labeling. However, less attention has been paid to digital transformation in processing, management and marketing.

Another barrier to digital transformation in cooperatives is the modest availability of skilled and competent human resources, particularly in agricultural cooperatives where digitalisation and information technology skills are limited. It is worth noting that many agricultural cooperatives do not have computers or internet connectivity, and are unfamiliar with accounting software.

Therefore, the Cooperative Alliances will focus on raising awareness of the effort in the development of cooperatives. They will advise the provincial People's Committees to fine-tune and issue policies and mechanisms that facilitate digital transformation and digital economy.

Nguyen Ngoc Bao, President of the Vietnam Cooperative Alliance, vowed to develop a specific digital transformation scheme in support of cooperatives in a sustainable manner.

Quang Nam kicks off construction of central region connectivity project

A groundbreaking ceremony for the construction of a central region connectivity project in the central province of Quang Nam took place in Tien Phuoc district on July 19.

Funded with official development assistance (ODA) from the Economic Development Cooperation Fund of Korea (EDCF), the project costs over 768 billion VND (34.514 million USD). Of the total investment, the ODA capital amounts to 25.474 million USD.

Spanning 31.85 km, the project passes through four districts of Quang Nam, namely Thang Binh, Phu Ninh, Tien Phuoc, and Bac Tra My.

Once completed, it will contribute to improving the transport network linking the central region to Central Highlands provinces and reaching Laos through Bo Y international border gate. It will also create a smooth connection with the region’s Ky Ha seaport, Chu Lai International Airport, Chu Lai Open Economic Zone, and Dung Quat Economic Zone.

In addition, the project will fulfill the government's objective of improving the road transport system, facilitating trade and enhancing accessibility to neighbouring countries.

It is expected to finish by November 2025.

Hoa Phat Dung Quat receives first tugboat from Netherlands

The Hoa Phat Dung Quat steel company has announced the reception of its first tugboat, built by Damen Group from the Netherlands, to serve the firm’s port system.

Established in February 2017, the largest member company of Hoa Phat Group – Vietnam’s leading steel maker – is the investor of the Hoa Phat iron and steel complex at the Dung Quat Economic Zone, the central province of Quang Ngai.

According to Nguyen Quoc Trinh, Deputy Director of Hoa Phat Dung Quat’s general port company, the tugboat fleet was previously outsourced. Recently, the company has built its own Azimuth-technology fleet with a capacity of up to 5,000 HP.

The purpose of such investment is to support the berthing and departure of cargo ships with a length of over 80m, and to promptly respond to possible marine incidents and oil spills at the Dung Quat Economic Zone.

By the end of September, the company will receive another tugboat and put it into operation in December.

Smart appliances, gift expos open in HCM City

A series of specialized international exhibitions featuring electronics and smart appliances, gifts and toys opened in Ho Chi Minh City on July 19.

They include Vietnam International Electronics and Smart Appliances Expo (IEAE), Vietnam International Gifts and Houseware Expo (IGHE), and Vietnam International Baby Products and Toys Expo (IBTE).

With more than 550 booths, the exhibitions are organized by Vinexad Advertising and Trade Fair Joint Stock Company and China’s Chaoyu Expo Co., Ltd, in collaboration with the Vietnam Electronic Business Association (VEIA), the Vietnam Association of Consumer Goods Development (VACOD), the Vietnam - China Chamber of Commerce, and China Chamber of Commerce.

The IEAE will bring marvelous experiences to visitors from now until July 21. Through the event, organisers expect to expand and increase cooperation in the production of smart electronics in Vietnam. 

The IGHE showcases typical products from professional manufacturers and exports, towards meeting the needs of Vietnamese customers, while the IBTE is the most professional exhibition on products and toys for children aged 0-14.

Speaking at the ceremony, Deputy Director of Chaoyu Expo Leo Mo said that Vietnam is an emerging market with huge consumption potential and increasing purchasing power, including for imported goods. Therefore, Chinese products will enrich consumer product structure in the Vietnamese market while bolstering economic and trade exchanges and long-term cooperation between the two countries.

To Ngoc Son, Deputy Director of the Asian-African Market Department under the Ministry of Industry and Trade, said that Vietnam's economic growth has led to significant improvements in the quality of life, prompting the consumer manufacturing industry to expand the demand for co-production, improving products and innovation capacity, and updating products in line with global market trends.

The exhibitions not only create opportunities for domestic and international businesses to meet and exchange goods directly, but also contribute to bringing new solutions, technologies, diverse products and advanced services to the local market while improving the quality of life for Vietnamese people.

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