Deputy Prime Minister Tran Hong Ha has signed a decision approving the master plan on exploration, exploitation, processing, and use of mineral resources for the 2021 – 2030 period, with a vision to 2050.

The master plan aims to closely manage, exploit, process and use mineral resources in an economical and effective manner, in line with the developmental requirements of the economy, environmental protection and climate change adaptation, towards the goal of achieving carbon neutrality. It is also meant to promote investment and establish a synchronous and efficient mining and processing industry with advanced technologies and modern equipment that aligns with the global trends.

For minerals with significant reserves and strategic importance such as bauxite, titanium, rare earth, chromite, nickel, copper, gold, licensed mining enterprises must be fully capable and invest in appropriate processing projects that utilise advanced and eco-friendly technologies.

The master plan also advocates the synchronous and effective mining, processing and use of rare earth.

In May, Deputy PM Ha also approved a geological and mineral strategy through 2030, targeting strategic minerals across Vietnam's mainland, coastal waters, and islands.

In terms of minerals, the strategy aims to review and locate national mineral reserve areas, balancing between planned use demand and long-term reserve for socio-economic development, defence and security assurance, and environmental protection. Exploration activities will have to comply with the planning, suitable to the potential of each type of mineral.

The mining industry will have to comply with the planning, use advanced technologies and equipment, suitable to each potential type of mineral, and maximise the recovery of useful ingredients while ensuring environmental protection. For minerals with large and concentrated reserves, mining projects must be conducted while using advanced, eco-friendly technology and modern equipment,

The strategy emphasises the research and use of advanced technologies in exploiting construction materials and ensuring the balance and harmony between export and import, ensuring domestic demand, and supplying raw materials for processing projects.

Vietnam Airlines adjusts operation plan due to impact of Typhoon Doksuri

National flag carrier Vietnam Airlines has unveiled that it will adjust its operation plan and update the itinerary of flights going both to and from Northeast Asia due to the impact of international storm Doksuri.

Specifically, the affected flights on July 26 include VN303 Narita-Ho Chi Minh City, VN405 Seoul-Ho Chi Minh City, VN440 Nha Trang–Seoul, and VN408 Ho Chi Minh City-Seoul.

Most notably, flights VN570 Ho Chi Minh City and VN580 Ho Chi Minh-Kaohsiung will keep the same departure time and landing 55 minutes later than the planned schedule.

On July 27, several flights had their itinerary adjusted, thereby keeping their departure time unchanged and their landing time delayed from five to 15 minutes.

Furthermore, several flights to and from Taiwan (China) on July 27 will have their departure time altered, including VN571 Taipei-Ho Chi Minh City, VN581 Kaohsiung-Ho Chi Minh City, VN587 Kaohsiung-Hanoi, and VN579 Taipei–Hanoi.

A representative of Vietnam Airlines said that many flights of other airlines will also change their itinerary in order to avoid the storm area, leading to traffic congestion occurring at airports.

The airline therefore recommends that passengers regularly monitor and stay updated on weather conditions and any changes to their itinerary.

Int’l expo on garment industry kicks off in HCM City

The Vietnam Saigon Fabric & Garment Accessories and Industry Expo (SaigonFabric Summer 2023) opened in Ho Chi Minh City on July 26.

The three-day event attracts more than 300 suppliers from several countries and territories, including China, Germany, Pakistan, India, Thailand, and Vietnam.

It provides a platform for businesses and visitors to directly learn about the latest products and services from reputable suppliers, expand the business network, and diversify supply sources.

For the first time, the expo features a made-in-Vietnam zone for nearly 100 Vietnamese companies to show their yarn, fabric, and material sources. Meanwhile, the business-matching zone is reserved for connecting suppliers, brands, and potential buyers.

Besides, thematic workshops will provide updates on policies and solutions to help businesses deal with challenges and boost their production capacity and competitiveness, said Tran Ngoc Kiem, Director of the HCM City branch of the Vietnam Chamber of Commerce and Industry (VCCI).

Addressing the opening ceremony, Deputy Minister of Industry and Trade Phan Thi Thang said SaigonFabric Summer 2023 is a good chance for textile and garment firms of Vietnam to access cutting-edge technologies, plan investment directions for the time ahead, seek partnerships, further engage in global value chains, and gradually increase the rate of locally made materials.

Proactively meeting diverse demand of domestic and foreign buyers and the rules of origin under free trade agreements will help businesses improve added value, develop the textile - garment industry, and better integrate into the region and the world, she noted.

Conference seeks to promote startups in circular economic model

Experts, management officials and business representatives gathered at a conference in Hanoi on July 26 to discuss measures to promote startups following the circular economic model to benefit the society and businesses in a sustainable manner.

Addressing the event, Pham Hong Quat, Director of the Agency for Technology Entrepreneurship and Commercialisation Development (NATEC) under the Ministry of Science and Technology said that science-technology development has brought about great benefits, making life better and more convenient.

However, it also goes along with many challenges such as resource depletion, environmental pollution and climate change, he noted, highlighting the significance of circular economy as a solution to these problems, in which the life cycle of products is extended and negative environmental impacts are minimised.

Meanwhile, Nguyen Phuong Linh, Director of Management and Sustainable Development Institute said that the Prime Minister approved a national circular economic development project on June 7, 2022, which affirmed that the proactive development of the circular economy is inevitable, in line with the trends and requirements for making breakthroughs in economic recovery and the implementation of the Sustainable Development Goals (SDG) in Vietnam.

She said the project underlines the importance of promoting circular economy in the process of economic restructuring and renovating the growth model, enhancing the economy's competitiveness, adaptation and resilience against outside shocks, thus realising the national strategy on green growth in the 2021-2030 period with a vision to 2050, and ensuring security and defence.

At the conference, participants discussed a number of startup models, while sharing their viewpoints of advantages and challenges for startups as well as lessons in business governance and the shaping of sustainable and circular enterprises.

MoIT urges companies be cautious in transactions with foreign firms

The Ministry of Industry and Trade (MoIT) recommended on July 25 that Vietnamese companies be cautious and thoroughly negotiate payment clauses when conducting transactions with foreign firms, following a suspected scam involving five batches of Vietnamese farm produce in Dubai.

It said that scams in the Middle East have increased recently, mostly involving small trading companies. The most common trick is that when signing contracts, foreign enterprises often request Vietnamese companies to make telegraphic transfers (TT), or they issue cheques as pledges to sellers. Both are the forms of payment with the highest risks.

TT is a form of payment in which buyers will pay to sellers after receiving goods. In cheque issuance, buyers may issue cheques without money in their bank accounts while sellers are unable to come to the banks of buyers to receive money since they do not have identity cards. Sellers are also unable to check information of buyers’ accounts as banks in some Middle Eastern countries do not provide customer information for a third party.

Given this, the MoIT called on Vietnamese companies to be cautious and thoroughly negotiate payment clauses to ensure safety.

It recommended them use letters of credit (L/C) or send representatives to directly meet buyers to hand over documents and receive payments. The documents against payment (D/P) is also safer than the TT and cheque payments, but businesses need to ensure safety when handing over documents to the banks of buyers.

The Vietnam Pepper Association (VPA) reported that some of its members have exported peppercorn, cinnamon, star anise, and cashew nuts to the UAE but found signs of scams from the same buyer (Bab A1 Rehab Foodstuff Trading LLC) and the same bank (Ajman Bank JSC) based in Dubai.

 The Vietnamese side is risk of losing one container of star anise scheduled to arrive in the UAE on July 26. (Photo: congthuong.vn)
They have lost four containers of the produce worth 400,000 USD when the goods arrived at Jebel Ali Port of the UAE. They are now at risk of losing one container of star anise scheduled to arrive at the port on July 26.

As soon as receiving the report, the MoIT’s Asia - Africa Market Department sent a diplomatic note to the UAE Embassy in Vietnam to ask the embassy to inform competent agencies of its country to deal with the case.

On July 25, the MoIT had an urgent meeting with the UAE Embassy, the State Bank of Vietnam, the VPA, the Foreign Trade Agency, and the businesses owning the export batches.

It also ordered the Vietnamese Trade Office in the UAE to quickly handle the case.

Meanwhile, to present the loss of the star anise container and trace the swindling importer, the Ministry of Agriculture and Rural Development has also asked the UAE Embassy to propose UAE authorities temporarily seize the star anise container at the port and investigate the four stolen batches.

Renewable energy projects contribute more to national grid

Fifteen renewable energy projects connected to the national grid have supplied 3.2 million kWh per day on average, reported by Vietnam Electricity Group (EVN).

As of July 21, the combined capacity of the 15 entire and partial renewable energy projects had reached nearly 735 MW and their average daily output of 3.2 million kWh accounts for 0.4% of the total mobilized electricity.

These projects are among the 85 transitional renewable power projects that missed the feed-in tariffs (FiT) deadlines in late 2020. Consequently, they needed to negotiate electricity prices with EVN, following the pricing framework issued by the Ministry of Industry and Trade earlier this year.

By July, 72 renewable projects with a total capacity of nearly 3,932 MW had written to EVN seeking pricing discussions and power purchase agreements. Of these projects, 83% have proposed tentative prices that are equal to 50% of the price ceiling set by the Ministry of Industry and Trade, according to EVN.

Currently, the Ministry of Industry and Trade has approved tentative prices for 58 of these projects with a combined capacity of over 3,181 MW. However, in order to be eligible for commercial operation and national grid connection, these projects must meet specific conditions related to connection, acceptance, and relevant documentation, such as approval for investment policy extension and working permits.

To date, 13 transitional renewable energy projects have yet to submit their documents to the Electricity Power Trading Company (EPTC) under EVN for negotiations on prices and power purchase agreements.

Banks’ H2 credit growth likely to be affected by bond buybacks

As many banks have been stepping up bond redemption before maturity, experts warned that the activity can affect the banks’ ability to supply capital for the economy and boost credit growth in the remaining months of this year.

According to the latest bond market report of the second quarter of 2023 issued recently by VNDirect Securities, the buybacks of corporate bond debt increased again and a large amount of bonds were repurchased by banks before maturity.

Specifically, in the second quarter of 2023, nearly 62.54 trillion VND of bonds were bought back in advance, up 76.8% compared to the first quarter of 2023 and 4.9% over the same period last year. In which, banks bought back 63.7% of the total value, equivalent to 39.84 trillion VND.

Data from the Vietnam Bond Market Association (VBMA) also showed banks bought back more than 17 trillion VND worth of bonds in May alone, accounting for 66% of the total value of bonds bought back, at nearly 25.6 trillion VND.

Most of the bonds repurchased before maturity by banks came with a long term of three years and fall due in 2024 or 2025.

VNDirect's analysts said the main motivation for banks to buy back bonds before maturity was low credit demand, sharply dropping deposit interest rates and abundant liquidity of the banking system in the first months of this year.

With credit growing by a modest 3.13% as of June 20 this year, the lowest level in the past ten years, banks found themselves sitting on mountains of cash. In an attempt to reduce capital redundancy and optimise capital efficiency, banks had little choice but to buy back bonds. As the demand for loans in the economy remained woefully low, banks used their excess money to step up bond buybacks.

The buybacks of bonds that have yet to fall due was seen as a suitable strategy in the first months of this year. However, for the remaining months of this year, experts are concerned that the buybacks of long-term bonds, if continued, will adversely affect the banks’ ability to supply capital for production and business, and boost their lending.

Experts explained that many forecasts show credit demand will be stronger in the second half of this year due to the recovery of the economy. Banks therefore need to have enough capital to meet loan demands of firms and individuals.

Notably, according to Dr. Phung Thai Minh Trang, head of the Hoa Sen University’s Finance and Banking Faculty, when lending, banks must ensure the ratio of short-term capital, which is allowed to use for medium and long-term loans, as regulated by the State Bank of Vietnam (SBV). Meanwhile, according to a new SBV regulation, from October 1 this year, the ratio will be reduced from 34% to 30%.

The strengthening of long-term bond buybacks before maturity of banks can reduce their medium- and long-term capital, which will cause the ratio of short-term capital used for medium- and long-term loans to increase and fail to meet the SBV’s regulation. Banks, therefore, will have to reduce their lending.

For the above reasons, Trang said, credit growth may be affected by the banks’ bond buybacks.

However, Trang expected the adverse impacts of the bond buybacks could be reduced thanks to the rising value of savings at banks. According to the SBV’s data, since the beginning of the year, the value of deposits raised by banks reached more than 12.69 quadrillion VND, some 268 trillion VND higher than outstanding loans. The rise of savings has helped the deposit growth rate to gradually catch up with the credit growth rate.

In addition, Trang said, about 88% of deposits in the banking system have short terms of less than 12 months. Therefore, the recovery of this capital indicator can also help to reduce the impact of the bond buybacks.

Although the short-term capital ratio used for medium- and long-term loans at banks is expected not to change much, Trang recommended that banks themselves should prepare measures to ensure the harmony between safety and profit goals when the SBV’s new regulation, which is aimed to minimise liquidity risks for banks, takes effect from October 2023.

In April this year, the SBV issued Circular 03/2023/TT-NHNN to suspend the implementation of Clause 11, Article 4, Circular 16/2021/TT-NHNN, which pertains to the purchase and sale of corporate bonds by local banks and foreign bank branches.

During Circular 03’s validity from April 24 to December 31 this year, banks can buy back the unlisted corporate bonds they previously sold, subject to specific conditions outlined in the circular. They can also repurchase their own bonds if all conditions are met and an agreement with bondholders is reached, or there is a provision for buyback in earlier regulations.

Despite the difficulties faced by the corporate bond market, certain banks still plan to raise capital through this market. For example, Vietcombank recently approved plans to issue bonds to the public in two batches with a total value of 9 trillion VND. As banks have continued to exhibit consistent performance, investors are confident in purchasing their bonds, which offer higher interest than savings accounts.

Cashew exports face opportunities, challenges

For years, Vietnam has remained the world’s largest cashew nut exporter with revenue reaching about 3 billion USD yearly.

However, besides opportunities, the country’s cashew industry is facing serious challenges, especially the fiercer competition from Cambodia and some African countries.

Tran Cong Khanh, Director of the Centre for Cashew Research and Development under the Southern Institute of Agricultural Science and Technology, said that Vietnam’s cashew industry is facing the risk of natural disaster and climate change, and fierce competition from Cambodia, West African and East African countries which have a large land fund for growing cashew.

Binh Phuoc province is considered Vietnam's cashew "capital" as the province boasts an area under the tree and production accounting for more than half of the country’s total.

Vice Chairman of the provincial People's Committee Tran Tuyet Minh said that Binh Phuoc has more than 152,000 ha of cashews, with an output of 170,000 tonnes/year.

Currently, there are 1,416 cashew processing facilities in the province.

In 2022, the province’s cashew exports topped 1 billion USD. Binh Phuoc’s processed cashew is exported to more than 100 countries and territories around the world such as Europe, the US, Japan, Australia, and China, accounting for about 70% of the export market share of the world cashew industry, and creating regular jobs for about 80,000 workers.

Besides advantages, Binh Phuoc’s cashew industry also sees difficulties and challenges. The province's raw cashew nut supply only meets about 30% of local processors’ capacity, so it still have to import raw cashew nut materials from Indonesia, Cambodia, and African countries.

Most of the local cashew processing facilities have not focused on investing in developing raw material areas. They have not supported and signed purchasing contracts with cashew growers, so the raw material supply is not stable.

In addition, the link between enterprises and farmers in the production-processing-business chain is not tightened. Many cashew processing establishments are so small with limited financial potential.

According to a representative of the Binh Phuoc Department of Agriculture and Rural Development, China and the EU have reduced the import of cashew nuts from Binh Phuoc in particular and Vietnam in general, but increased imports from African countries such as Ivory Coast, Togo, Tanzania, and Benin. In the global cashew industry value chain, Vietnam only accounts for 30%, while the remaining value belongs to international distributors and roasters.

Vice Chairman of the Vietnam Cashew Association Bach Khanh Nhut said that after more than 40 years, Vietnam's cashew industry has made great strides.

However, a paradox is that while Vietnam is the largest exporter of cashew nut in the world, in recent years, the amount of cashew imported into Vietnam has increased rapidly, he said.

“It is the consequence of allowing the import of cashew into Vietnam without applying measures to protect the domestic cashew processing industry,” said Nhut.

A strategic solution for the Vietnamese cashew industry in general and the Binh Phuoc cashew industry in particular is to switch to processing diverse products to meet the different needs and tastes of consumers, he said.

Over 400 domestic, foreign firms to attend Vietnam Medipharm Expo in HCM City

More than 400 businesses from 22 nations and territories have registered to join the 21st international medical, hospital and pharmaceutical exhibition (Vietnam Medipharm Expo), which will take place in Ho Chi Minh City from August 3-5.

The exhibitors will showcase healthcare products, food supplements, medical equipment, and hospital services and equipment in 450 booths.

The expo will offer organisations and businesses opportunities to exchange experiences, promote their products, seize investment opportunities, and promote cooperation to improve efficiency in production and business.

A series of seminars and B2B matching will be held on the sidelines of the event, including seminars on opportunities to develop Indonesia - Vietnam trade in medical products, innovation potential and achievements of the health sector of Russia’s St. Petersburg, and a Vietnam - India Pharmaceutical Business Forum.

Enterprises from the Republic of Korea will host a series of seminars introducing new methods of treatment in the fields of dentistry, ophthalmology, cosmetology, rehabilitation, respiratory, and post-surgery cross-infection.

The expo is organised by the Ministry of Industry and Trade’s Vinexad JSC in collaboration with the Ho Chi Minh City Medical Equipment Association.

Laos, Vietnam cooperate to improve exported rubber quality

Chairman of Vietnam Rubber Association Tran Ngoc Thuan and his Lao counterpart Bounthong Buahom have recently signed a Memorandum of Understanding (MoU) on boosting the sustainable development of the rubber industry in the two countries.

Accordingly, the two associations will share experiences and support Vietnamese rubber companies that are operating in Laos to become qualified for sustainable development certifications.

They will also boost cooperation in agreed areas for mutual benefits.

The two sides also agreed that the Lao Rubber Association should strengthen support and attract more rubber processors to meet export requirements for Vietnam and other countries.

Rubber is one of the top foreign currency earners of Laos, bringing in over 650 million USD for the country in 2022. To date, Laos has about 300,000 ha of rubber, 46% of which are operated by foreign companies under concession agreements, 24% by cooperation agreements with individuals, and 30% by local people.

About 85% of the total rubber trees in the country can be harvested. The main rubber export markets of Laos are China and Vietnam.

According to the Lao media, all rubber produced in the country has been exported in raw form because there is no processing plant. The country does not apply any specific standards for rubber quality as it still has no laboratory to test and certify.

Rubber is one of four major projects that the Lao Government included in its national socio-economic development plan for the period 2016-2021 and a vision for 2025-2030.

South-central province develops OCOP products

The south-central province of Binh Thuan expects to have at least new 20 products rated between three and five stars under the country’s “One Commune-One Product” programme in 2023.

It also plans to help OCOP producers set up at least two sites for displaying and selling their products this year.

To achieve these targets, the province will publicise the programme and help producers participate in it. 

It will undertake advertising and trade promotion activities to help producers sell on e-commerce platforms and through supermarkets and other modern distribution channels.

It plans to organise the Industry and Trade - Binh Thuan OCOP Product Fair in September with 250-300 booths showcasing speciality and OCOP items from Binh Thuan and other provinces and cities and enabling producers to introduce their goods to more consumers and expand outlets.  

After three years of implementing the OCOP programme, the province has made significant strides in developing the rural economy and quality products, according to the provincial Department of Agriculture and Rural Development.

It has developed linkages between stakeholders for producing and selling OCOP products, created more jobs and improved rural incomes, it said.

With its products made in mountainous, sea and island areas, the locality has great potential for developing OCOP products.

The province aims to have at least another 80-130 OCOP products rated at least three stars by 2025.

Binh Thuan has 70 now and has introduces them to tourists at production units and display venues.

Work to restart on section of Ho Chi Minh expressway project

A section of the Ho Chi Minh expressway project, with a total investment cost of 2.3 trillion VND (some 96.7 million USD), is scheduled to restart this year.

The Ministry of Transport has issued a decision approving the investment capital for the Chon Thanh - Duc Hoa expressway section project from the State budget, including land compensation and resident resettlement costs of about 264 billion VND (11.1 million USD).

Work on the Chon Thanh - Duc Hoa section is expected to be completed by 2025.

This component project began construction in 2009 and was suspended in 2011 due to a lack of funds and difficulties in site clearance.

The section runs through the four southern provinces of Binh Duong, Binh Phuoc, Tay Ninh and Long An, all parts of the Southern Key Economic Zone.

It begins from Bau Bang district in Binh Duong province to Duc Hoa district in Long An province.

It will be nearly 73km long and 12m wide, with two lanes in the first phase and an expansion to six lanes in the completion phase.

There will be 14 bridges along the section, of which, 11 bridges will be upgraded and three bridges will be newly built, namely Trang Bang, An Hoa and Rach Nhum.

The section will contribute to gradually completing the entire 2,744-km-long Ho Chi Minh expressway, which passes through 28 provinces and cities from the northern mountainous province of Cao Bang to the southernmost province of Ca Mau.

Pepper exports plunge in first half

Vietnam exported nearly 153,000 tonnes of pepper worth more than US$483 million during the first half of the year, thereby representing a rise of nearly 24% in volume, but down 13.7% in value on-year, according to the latest data released by the General Department of Vietnam Customs.      

Most notably, the average export price of pepper reached roughly US$3,184 per tonne, marking a sharp decline of 29.7% against the same period from last year.

China and the United States make up the major importers of Vietnamese pepper with a market share of 35% and 16% respectively of the total export volume during the initial five-month period.

This sharp fall can be attributed to the fact that there has been weak purchasing power in both the US and EU market.

Furthermore, the EU's decision on not importing agricultural products grown on land from deforestation has also impacted Vietnam's recent pepper exports.

Industry insiders point out that the drop in export price can be attributed to weak global demand, pressure from the rising US dollar, and the US Federal Reserve (Fed)’s adjustment of interest rates

Currently, pepper exports to the US, the United Arab Emirates (UAE), India, Germany, the Netherlands, the UK, and the Republic of Korea have all decreased between 20% and 70% over the past several months.

According to information given by experts, pepper exports are anticipated to continue to face difficulties due to the slow recovery of major markets and the amount of inventory from the previous year causing importers to reduce their purchase of Vietnamese pepper products.

China to inspect planting, packing facilities of Viet Nam's fresh coconuts next month

Agencies from China will visit Việt Nam next month to inspect planting regions and packing facilities of fresh coconuts registering for export to China, according to the Ministry of Agriculture and Rural Development (MARD).

MARD's Plant Protection Department has sent a document to the departments of agriculture and rural development in provinces and cities, saying that the General Administration of Customs of China (GACC) will conduct a field inspection for these planting regions and packing facilities of fresh coconuts in Việt Nam to complete the assessment of pest risk as a basis for the signing of the protocol on importing fresh coconuts from Việt Nam to China.

GACC will inspect coconut pest control and prevention systems at planting sites and packing facilities, as well as the process of harvesting, transporting and packaging coconuts.

After the inspection, China will conduct a risk assessment and propose appropriate import requirements to develop a protocol on importing fresh coconuts from Việt Nam.

The Plant Protection Department has proposed the sub-department of cultivation and plant protection in the localities to support the planting regions and packing facilities of fresh coconuts during the inspection.

At the same time, they will prepare documents relating to the management and prevention of harmful coconut pests as required by GACC.

The localities review the planting regions and packaging facilities of fresh coconuts that register to export to China. Their authorities also guide the planting regions and packaging facilities to complete the relevant documents and prepare all conditions for this inspection.

In addition, the Plant Protection Department also said that it had received a draft of a report on import requirements for Vietnamese fresh passion fruit that has been sent by the Australian Department of Agriculture, Fisheries and Forestry (DAFF) to the Vietnamese side for comments.

Accordingly, fresh passion fruit harvested from planting regions in Việt Nam is allowed to be exported to Australia if it meets the biosecurity requirements of this market. The report has identified 11 pests that pose a biosecurity risk, including fruit flies, aphids, spider mites and thrips.

To reduce these risks, the draft proposes a number of risk management measures, including the establishment of pest-free production regions. The application of irradiation treatment is considered an effective measure in the management of fruit fly species.

The requirements to ensure biosecurity in the report will be the basis for developing import conditions for Việt Nam's fresh passion fruits to Australia.

Việt Nam needs to demonstrate its ability to manage those risks to ensure the safety for the fresh passion fruits exported from Việt Nam to Australia.

The Plant Protection Department has asked localities, enterprises and individuals producing and exporting passion fruit, as well as plant quarantine agencies, to have comments on the report on import requirements for Vietnamese passion fruit exported to Australia.

Meanwhile, the agriculture and rural development departments of localities need to review fresh passion fruit planting regions that register for export to Australia.

The enterprises and individuals actively prepare all conditions for the planting regions under Australian requirements to be ready to export to the Australian market.

In 2022, Việt Nam's passion fruit output was estimated at 135,000 tonnes, mainly planted in Gia Lai and Đắk Lắk.

Việt Nam's passion fruits are now exported to many markets, including the EU and China. 

Fintech start-ups urge to eye potential rural markets

Rural areas are a huge potential market for financial technology (fintech) start-ups, but there are significant risks, requiring firms to have sound ideas together with a proper legal framework.

Trần Duy Khanh, Director of APEC Entrepreneurs Training and Research Institute, said that accounting for more than 70 per cent of the country’s population, rural areas provided significant room for fintech start-ups to grow.

“Potential, however, always goes hand in hand with a challenge,” Khanh said. Doing business as a start-up is difficult and even more so in the field of fintech. Being in a rural area adds more difficulty still, he stressed.

It requires not only knowledge of technology, finance, credit and banking but also experience and passion, critical to the birth and pursuit of start-up ideas, he added.

Three decisive elements for the success of doing fintech business in rural areas were convenience, meeting local demands, and the ability to combine with credit institutions, he said, adding that fintech startups should be looking to bridge the gap between users and credit institutions.

Analysing the difficulties of fintech development in rural areas, Khanh said that people in rural areas had a habit of using cash and still had confusion over tech apps. On the other hand, security problems still exist.

Capital is also an important issue because it takes years for a start-up business to make a profit, he said.

Start-ups are often faced with a lack of capital for growth and credit institutions don't often dare to lend money because there is no guarantee of return.

Khanh said that this is a major bottleneck that requires support from the Government for incubation. “Without the Government’s support in incubation, it will be difficult for start-ups to succeed - even with good ideas.”

According to Vũ Sỹ Cường from the Academy of Finance, fintech companies are now mostly focused on exploiting markets in cities and few have eyed rural areas.

Rural areas are a potential market for fintech if the ideas can create a difference. To expand in rural areas, Cường said that fintech start-ups need to carry out market assessments carefully.

Cường said that the policies for fintech should be more detailed and practical, especially those related to information security to consolidate the confidence of the people on technology apps.

A report about Việt Nam fintech market in 2021 showed that the number of fintech companies increased four times, from 39 in 2015 to more than 154 by the end of 2021, 70 per cent of which were start-ups.

However, the lack of a proper legal framework was hindering the development of the fintech market in Việt Nam, especially in peer-to-peer lending.

Credit growth was low in the first half of this year, at just 4.73 per cent, statistics of the State Bank of Việt Nam (SBV) showed, not only because of the drop in credit demand as firms fell into difficulty but also because many people could not meet requirements for loans.

To promote economic growth it is necessary to promote the development of other channels which eye sub-prime customers, such as peer-to-peer lending and fintech lending.

Many countries around the world have developed a legal framework to regulate fintech, including fintech lending.

For example, in the UK, the ceiling rate for daily interest rates on loans is set at 0.8 per cent, or 292 per cent per year and the interest and fee borrowers must pay can not exceed the original loan amount.

The policy framework is still long-awaited in Việt Nam, causing confusion between licensed lending fintech companies and black credit lending apps. A sandbox for fintech has been drafted by the SBV.

A recent report by Insider Intelligence about smartphones in Southeast Asia showed that the number of smartphone users in Việt Nam was forecast to reach 63.8 million by the end of this year, up 1.6 per cent over 2022 and accounting for 96.1 per cent of the country’s total number of Internet users.

Việt Nam ranked second in the region in terms of the number of smartphone users, after Indonesia.

Ministry urges producers to ensure food security after India restricts rice exports

The Ministry of Trade and Industry's Import-Export Department urged rice exporters to ensure price stabilisation and food security in the domestic market after India restricted rice exports which is forecast to have a significant impact on the global rice market.

The ministry advised the Việt Nam Food Association and rice exporters to increase purchases of rice in the domestic market, maintain a minimum reserve for rice circulation and ensure a balance between exports and domestic consumption to stabilise prices.

A close watch must be placed on the domestic and global rice market to raise solutions to cope with problems which might arise from the supply and circulation of rice in the domestic and international markets.

The ministry’s warning came after India’s announcement that it would prohibit the exports of non-basmati white rice, effective immediately from July 20, except for certain cases such as shipments that had already been loaded before the announcement or those approved by the India Government for the purpose of meeting food security needs of certain countries.

The Việt Nam Trade Office in India also issued a warning to Vietnamese rice importers who were importing rice from India to check the status of their deliveries.

According to data from the Indian Ministry of Industry and Trade, Việt Nam imported a record amount of rice from India in May 2023 with a total volume of nearly 101,000 tonnes, an increase of 56.64 per cent compared to May 2022, ranking Việt Nam forth among countries that import rice from India in terms of volume.

In the January to May period, Việt Nam imported 367,500 tonnes of rice from India, an increase of 31.76 per cent over the same period last year. Việt Nam ranked eighth among countries importing rice from India in the period.

The ban, which accounts for more than 40 per cent of world rice exports, aims to curb domestic inflation after retail rice prices climbed 3 per cent in a month because of late but heavy monsoon rains causing damage to crops.

Market insiders said that the ban raised fears of further increases in global food prices but was providing significant opportunities for Việt Nam which were also among the top three rice exporters in the world, together with India and Thailand.

Statistics of the General Department of Customs showed that Việt Nam’s rice exports totalled more than 4.2 million tonnes in the first half of this year, worth US$2.3 billion, an increase of 21 per cent against the same period last year in terms of volume and 32 per cent in term of value.

Given the current market situation, Việt Nam’s rice export goal of 7.2 million tonnes worth more than $4 billion this year was within reach to set a record for the country’s rice export.

Võ Tòng Xuân, an expert in agriculture, said that there was a huge opportunity for Việt Nam to promote rice exports in the second half of this year. The average rice price increased by 11 per cent to reach $539 per tonne in the first half of this year and might reach $600-700.

Đỗ Hà Nam, deputy chairman of the Việt Nam Food Association, said that rice prices would continue to increase in the coming time.

Although Việt Nam was the top three rice exporters in the world, the country must import around one million tonnes of rice on average per year from India for processing.

India’s ban would cause a tense in supply in the Việt Nam market, which would push up prices, Nam said, adding that many types of fragrant rice saw an increase by more than VNĐ8,000 per kg recently.

Still, ensuring food security and domestic consumption demand remained the top priority, Nguyễn Như Cường, director of the Plantation Department under the Ministry of Agriculture and Rural Development, was quoted by Tuổi Trẻ (Youth) newspaper as saying.

Currently, world rice prices are fluctuating around the highest level during the past decade.

Cường said there would not be sudden increases in rice prices in the domestic market as supply remained normal.

The Government and relevant ministries will raise timely measures to ensure food security while not losing export opportunities, he stressed.

He cited statistics that more than 17 million tonnes of rice were harvested as of May, 0.7 per cent higher than the same period last year. Việt Nam expected to harvest 43 million tonnes of rice this year, enough to meet the demand for food, husbandry, processing and reserve and for export of around 6.5 to 6.6 million tonnes.

Cường said that rice exporters should also take into account the scenario in which rice price increases to more than $1,000 per tonne as in 2008 and to have an appropriate business plan, adding that enterprises should be cautious when negotiating and signing contracts when they did not have rice in reserve. 

Infrastructure projects heating up in the central region

The central province of Quảng Nam has proposed an urban railway route connecting Chu Lai Airport with Đà Nẵng International Airport and major eco-tourism destinations in the region. 

Chairman of the provincial People’s Committee Lê Trí Thanh said the transport department has been assigned for building the plan.

He said the transit-oriented development (TOD) railway system will help promote smooth tourism traffic among hotspots in the province, including Đà Nẵng and two key airports in central Việt Nam.

Emerging tourist zones, including Duy Hải, Duy Nghĩa, Bình Minh, Núi Thành and Tam Kỳ City will also benefit from the developments, as part of the 'Master Plan 2021-30, Vision 2050' with a focus on infrastructure in the central region. 

The local authorities have planned a study on investment needs for a light rail transit (LRT) and mass rapid transport (MRT) system between the UNESCO-recognised world heritage site of Hội An and Đà Nẵng to serve locals and tourists. 

An expected fund of $596 million would be used to build the LRT/MRT project and mass transport infrastructure works from 2025.

Quảng Nam and Đà Nẵng also began jointly building a bridge spanning the Yên River to serve the growing traffic between Hòa Vang District in Đà Nẵng and Điện Bàn Town in Quảng Nam. An express network from Đà Nẵng to Thạnh Mỹ Town (Quảng Nam Province) and Bờ Y border check-point in the Central Highlands Kon Tum province is also planned.

The two localities have been dredging a 28km section of the Cổ Cò River to facilitate a waterway between Hội An and Đà Nẵng.

It reported that around 10,000 vehicles travel from Đà Nẵng to Hội An ancient town in Quảng Nam each day during the high-season tourism time.

Quảng Nam Province put a coastal road from Tam Kỳ City to Chu Lai Airport to Chu Lai Open Economic Zone into operation, creating an economic growth axis of the Chu Lai Economic Zone, the Đà Nẵng-Quảng Ngãi Expressway and the Dung Quất Economic Zone in neighbouring Quảng Ngãi Province.

Chu Lai Airport will be upgraded to host five million tourists and five million tonnes of cargo a year, while Đà Nẵng will increase the airport’s capacity to 28 million passengers and 200,000 tonnes of cargo by 2030.

Meanwhile, Thừa Thiên Huế Province has included a construction plan for a sea bridge over part of the Tam Giang Lagoon to be built in 2024-28.

The bridge and entrance lanes will offer better traffic connections from Phú Đa Town to Vĩnh Xuân Commune of Phú Vang District and Huế City.

Last year, the province began construction of another coastal road and sea bridge in Thuận An Township that promotes links between key provincial economic zones and the national coastal highways.

The coastal road will help create smooth traffic between Quảng Trị, Đà Nẵng, Thừa Thiên Huế, and the East-West Economic Corridor that links Thailand, Cambodia, Laos and Việt Nam.

The road will also help promote tourism, and seaport access, and help develop economic zones and industrial parks in the Chân Mây-Lăng Cô Economic Zone. 

The province put into operation terminal No 2 at the provincial Phú Bài International Airport to increase capacity to up to five million passengers per year. 

Vietnamese rice exporters benefit from India ban

Vietnamese rice prices have surged after India, the world's largest supplier, announced a ban on non-basmati white rice exports.

Prices of white rice such as OM18 and IR50401 have increased by 5 percent. Each tonne of exported white rice has grown by USD50 per tonne to USD580-590.

In the first five months of this year, Vietnamese rice export prices were roughly USD539 tonne, up 10.2 percent on-year.

According to Phan Mai Huong, co-founder of Singapore’s SSResource Media which runs SSRicenews.com website, some Vietnamese rice exporters have offered export prices of up to USD600 per tonne.

Meanwhile, many firms which have signed rice export contracts at lower prices earlier have not dared to buy rice at higher prices.

Vietnam is the world's third-largest rice exporter, just behind India and Thailand. Between January and June this year, Vietnam’s rice export reached 4.24 million tonnes, up 21.3 percent on-year.

The Philippines, China and Indonesia were the biggest importers of Vietnamese rice in the first half of this year.

Meanwhile, rice exports from many Asian countries, including Thailand, have dropped due to the impacts of the El Nino phenomenon.

Based on this situation, Vietnam’s goal to obtain a rice export value of USD4 billion is possible.

Binh Duong to invest more in social housing

The southern province of Binh Duong is planning to build 87,000 social housing units during the 2021-2030 period.

According to the plan developed by the Binh Duong Provincial People's Committee, some 46,377 social housing units will be built between 2021-2025 and 40,500 others built between 2026-2030. In 2023 alone, 18,000 social housing units will be built in the province.

Binh Duong is home to many industrial zones and has attracted many migrant workers who have a big need for housing, so local authorities have called on investors to build more social housing projects in the area.

Provincial People's Committee Chairman of the Vo Van Minh said that they had asked the local construction department to arrange land for social housing projects and create favourable conditions for investors in these projects.

"We're working with investors to carry out the projects on 100 hectares of land," he said.

Becamex IDC is a leading social housing developer in the province having built 65,000 apartments in various localities including Di An, Thuan An, Thu Dau Mot cities, Ben Cat Town, and Bau Bang District over the past 10 years.

The company is planning to build more than 118,000 units in the coming time.

Kim Oanh Real Estate Company is also developing many housing projects targeting low-income people in Binh Duong and Dong Nai with a total of 40,000 apartments.

Vietnamese government authorises bauxite projects

According to Decision No.866/QD-TTg 2023, approved on July 18 by Deputy Prime Minister Tran Hong Ha, Vietnam will have eight bauxite processing projects, 19 exploration projects related to bauxite, and eight to ten new bauxite mines by 2030.
 
As reported by the United States Geological Survey in 2022, Vietnam has the second-largest aluminium bauxite ore reserves in the world, with 5.8 billion metric tonnes primarily concentrated in the Central Highlands.

The master plan stipulates that from 2021 to 2030, bauxite exploration and extraction must be coupled with intensive processing, therefore, only investors with substantial capacity, modern technology, and an emphasis on environmental protection will be selected.

Enterprises will be encouraged to investigate and implement red clay recycling and discharge technologies during the processing phase, and new electrolysis-based aluminium production initiatives must implement market-based electricity pricing to encourage the use of renewable energy sources.

The government wants implementation of the master plan to be synchronised with the growth of traffic infrastructure, environmental safety, electricity and water supply, national defence and security, and biodiversity conservation in the Central Highlands.

Lao Cai ready to welcome Indian investors: provincial official

Lao Cai has prepared the best conditions to welcome enterprises and investors, particularly those from India, the provincial Party Committee Secretary Dang Xuan Phong said at an investment, trade and tourism promotion conference between the province and India held in New Delhi on July 25.

Phong said that he expects Indian investors will soon come to Lao Cai and play a leading role in developing a herbal medicine processing industrial zone in the province.

Lao Cai is committed to always accompanying and creating favourable conditions for Indian businesses and investors to make successful, sustainable, and long-term investments there, the official said.

Giang Thi Dung, Vice Chairwoman of the provincial People's Committee, briefed participants on the province's strengths including the famous resort town of Sapa, hundreds of mineral mines with large reserves, and about 850 species of medicinal plants.

In addition, the province is offering incentives and investment support mechanisms to attract foreign investment, she said.

Dung also proposed specific areas of cooperation and investment for Indian businesses including medicinal herb processing, tourism, high-tech agriculture, and high-tech industry.

Ambassador to India Nguyen Thanh Hai affirmed that the relationship between Vietnam and India is prosperous in all fields, particularly in economy, trade, investment, and tourism.

However, he said that the development is still not commensurate with the size of the political, cultural relationship and the high trust between the two countries.

According to him, connectivity is one of the most important drivers for the development of trade, tourism, and investment.

Indian delegates affirmed that Vietnam in general and Lao Cai in particular are top destinations for Indian investors and tourists thanks to the open business and investment environment, dynamic economy, friendly people, and outstanding natural beauty.

At the conference, six Memorandums of Understanding were signed by agencies and businesses from the two countries.

Workshop talks digital transformation in State-owned enterprises

Participants at a workshop in Hanoi on July 26 shared their views on obstacles to digital transformation in State-owned enterprises and experience in this regard.  

Speaking at the event, jointly held by Radio The Voice of Vietnam (VOV) and other agencies, VOV Deputy Director General Vu Hai Quang stressed the three pillars of digital transformation – digital government, digital economy, and digital society, saying Vietnam has adopted many relevant policies and guidelines.  

However, he pointed out that the number of businesses successful in digital transformation in Vietnam remains limited, especially enterprises that play a locomotive role in the national economy.

The workshop is expected to collect advice from experts and scientists, as well as experience from agencies that have succeeded in this field, contributing to materialising major policies of the Party and the State, he said.

Nguyen Thanh Tuyen, Deputy Director of the Ministry of Information and Communications (MIC)' Information-Technology Department, noted that digital transformation greatly benefits businesses, and digital firms play an important role in this process.

He also emphasised roadblocks to digital transformation like big investment capital, traditional business habits, and the lack of infrastructure and clear roadmaps.

Northern port city calls for more Taiwanese investment

Head of the Hai Phong Economic Zone Authority (HEZA) Le Trung Kien on July 26 expressed his hope that investors from Taiwan (China) will increase their investments in the northern port city, especially in the areas where Taiwan has strengths.

At a working session with representatives from Taiwan’s investment funds and businesses, Kien said Lach Huyen International Container Port, and Xuan Cau Industrial Park and Free Trade Zone are among the key investment and development destinations in Hai Phong.

The city is making efforts to mobilise all resources for a synchronous transport infrastructure system, he said, calling on the Taiwanese delegation to help with the opening of an air route from Cat Bi airport to Taipei or Kaohsiung.

He also suggested Taiwanese investors who have been operating in Hai Phong to continue building an ecosystem and expanding their production chains towards local enterprises, while stepping up technology transfer.

Kien hoped that the delegation will support the city in calling on Taiwanese educational institutions to roll out education-training projects in Hai Phong, and enhance cooperation with local universities in high-quality personnel training.

For the Xuan Cau Industrial Park and Free Trade Zone, Hai Phong will support the implementation of projects as much as possible, aiming to turn the area into a centre of logistics, goods distribution and production that meets international standards, he pledged.

Currently, Hai Phong is home to 30 Taiwanese projects in industrial and economic zones with total investment capital of 1.68 billion USD, mainly specialising in electricity, electronics, plastics, packaging and chemicals.

At the meeting, the Taiwanese side lauded the strong development and great potential of Hai Phong, and suggested the city pay more attention to investing in transport infrastructure, especially expressways, railway and air routes, and utilise cutting-edge technologies in managing the deep-water port and free trade areas.

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