A delegation of Dutch entrepreneurs is expected to come to Vietnam to seek partners and attend Vietnam International Sourcing 2023 which is slated to take place in Ho Chi Minh City from September 13 to 15, according to the Vietnamese Trade Office in the Netherlands.

It is expected that the delegation will include representatives of corporations, distributors, retailers, and trading companies based in the Netherlands with branches spreading throughout the European region.

According to the office, the imports of these enterprises are Asian food products, ceramics, kitchen tools, and dining tables.

Joining the delegation will be businesses from the Dutch seafood association, importers and distributors of outdoor furniture as well as logistics enterprises.

The delegation includes a business that operates in e-commerce, trading processed and non-food agricultural products from Vietnam.

Notably, the e-commerce platform operated by the enterprise has so far had more than 20 products from Vietnam that have met EU standards.

A representative of the Europe-America Market Department under the Ministry of Industry and Trade said that there will be a series of international business delegations to attend the Vietnam International Sourcing 2023 as more than 60 Vietnamese trade offices in countries join in promoting the event.

Especially, through conferences, seminars, trade connection activities, and Vietnam International Sourcing Expo 2023, the Dutch business delegation hopes to find more reputable partners from Vietnam.

The Vietnam International Sourcing 2023 is a series of events aiming to help domestic enterprises’ efforts to further engage in global production and supply chains, adapt to the growing trend of international economic integration, and boost connectivity with foreign distribution channels and importers.

This year, the event expects to welcome 8,000 visitors and 150 delegations from 30 countries and territories. It has received the greatest-ever interest from world-leading companies including Aeon, Uniqlo (Japan), Walmart, Amazon, Boeing, AES (US), Carrefour, Decathlon (France), Central Group (Thailand), and Coppel (Mexico).

Ho Chi Minh City to host first cross-border e-commerce exhibition

The first cross-border e-commerce exhibition this year will take place at the Saigon Exhibition and Convention Center (SECC) from August 10 to 12, according to the Vietnam National Trade Fair and Advertising (Vinexad), organiser of the event.      

The exhibition is expected to attract the participation of businesses from industrial clusters across China, operating in fields such as cosmetics, home appliances, underwear, pets, kitchen utensils, and other industries.

A representative of Vinexad Company stated that the company will invite a large number of multi-channel network (MCN) organisations, experts, presenters, and Internet celebrities to join the event. It will make full use of media and new marketing methods in order to connect sales channels and open new markets for exhibitors.

Most notably, the application of Droshipping method, one-click purchase, QR code scanning, ChatGPT, and other advanced technologies is anticipated to strongly support operators of e-commerce channels. 

The organiser revealed that the Vietnam Digital Economy Development Forum will also be held during the exhibition.

According to Statista, the leading market research firm of Germany, online sales will account for about 10% of Vietnam’s total retail sales, with the e-commerce market’s revenue expected to hit US$9 billion by 2025.

HCM City, Mekong Delta to foster cooperation in various sectors

HCM City and the Cửu Long (Mekong) Delta region have the potential for significant cooperation in various sectors such as agriculture and aquaculture, tourism, infrastructure development, education and research, and climate change adaptation.

Speaking at a recent conference in Cần Thơ City, Phan Văn Mãi, chairman of the HCM City People’s Committee, said the cooperation holds significant potential for “economic growth, social development, and resource optimisation.” 

By leveraging their respective strengths, sharing expertise, and synergising efforts, this partnership can create a “sustainable and prosperous future” for both regions and the entire country, he said.

The collaboration would also pave the way for optimised resource utilisation, improved connectivity, enhanced educational opportunities, and a healthier environment for all.

“As economic, social, and infrastructural dynamics evolve, this collaboration sets the stage for a brighter future for the regions in southern Việt Nam,” he noted.

To avoid overlapping and inconsistencies, Mãi proposed building a complete set of investment documents.

As for agriculture and aquaculture, experts said the fertile lands of the Mekong Delta make it Việt Nam’s “rice bowl”, offering immense agricultural potential. 

Meanwhile, HCM City, as a major urban centre, can facilitate the supply chain and marketing of agricultural products, support farmers and promote domestic and international trade, they said. HCM City can also assist in transferring technology and knowledge to enhance agricultural productivity and diversify crops in the Mekong Delta.

The city and the region recently signed a socio-economic cooperation agreement, which serves as a platform for collaboration and growth.

Trần Văn Dũng, vice chairman of Tiền Giang Province’s People’s Committee, said the province has a large land fund available for industrial development. It has also been a major supplier of fruits and vegetables for the HCM City market over the years.

The province plans to establish a specialised medical cluster with a total area of 30 hectares, and hopes that HCM City will help introduce potential investors to the province.

Nguyễn Văn Hiếu, secretary of the Cần Thơ Party Committee, emphasised the importance of strengthening transportation connections, developing industry, and creating economic opportunities in the region. 

Cooperation in transportation infrastructure is vital because HCM City and the Mekong Delta are connected by waterways and road networks, he said, adding that enhancing transportation connectivity between these regions will facilitate the flow of goods and people, promoting trade and tourism.

Projects such as the expansion of expressways and railways will boost investment, reduce transportation costs and time, and enhance socio-economic development, he noted.

Tourism is another sector with significant potential for collaboration. The Delta region offers lush green landscapes, fertile rice fields, and a rich cultural heritage, while the city provides a bustling urban experience, historical sites, and modern entertainment options. 

By promoting joint tourist itineraries, both the city and the region aim to attract a broader range of tourists and prolong their stays. The combination of cultural and urban experiences, along with the natural beauty of the Mekong Delta, provides a unique and unforgettable experience for tourists.

In addition, the city and provincial officials have pointed out that addressing climate change and ensuring sustainable development are pressing issues for both the city and the Mekong Delta. 

Rising sea levels, extreme weather events, and salinity intrusion pose significant challenges to the region's agricultural and rural areas. By collaborating on climate change adaptation strategies, both regions can implement measures to protect vulnerable communities, develop resilient infrastructure, and promote sustainable practices, they added.

Digital transformation is another agenda, with a focus on utilising technology to enhance administrative procedures, e-governance, and digital connectivity. 

HCM City has made significant progress in digital transformation, and there is an opportunity for the Mekong Delta to learn from its experience. By embracing technology, both regions can enhance administrative procedures, improve connectivity, and create a more efficient and transparent governance system.

Huỳnh Chí Nguyện, vice chairman of Bạc Liêu Province’s People’s Committee, said the province wants to strengthen cooperation in healthcare, education, and human resource training with HCM City.

By pooling resources and expertise, HCM City and the Mekong Delta can improve educational facilities, provide better healthcare services, and develop skilled human resources to meet the demands of the evolving economy. 

Nguyễn Minh Luân, vice chairman of Cà Mau Province’s People’s Committee, suggested HCM City and each locality in the Mekong Delta region should have at least a major annual activity to promote cooperation.

The Mekong Delta, known as Việt Nam’s agricultural hub and renowned for its large seafood exports, encompasses Cần Thơ City and 12 provinces. 

Ministry will suspend use of planting area codes for non-eligible shipments

The Ministry of Agriculture and Rural Development (MARD) will halt the use of planting area codes and the operations of packaging facilities that fail to meet China’s phytosanitary requirements.

The suspension is also applied for the batches which repeated violations many times during the phytosanitary inspections.

That is part of a dispatch sent by MARD to localities asking them to enhance phytosanitary measures for fruit exports, according to the ministry.

Before that, the General Administration of Customs of China (GACC) has had announcement that some fruit shipments exported from Việt Nam to China has not met phytosanitary requirements, including bananas, jackfruit, mango, longan, dragon fruit and durian.

Loose examination of the quality of fruits and ineffective phytosanitary operations can lead to an increase in the number of consignments violating China's phytosanitary regulations, said the ministry. That could lead to Việt Nam losing this important export market.

The MARD also urged the localities to strengthen manpower for phytosanitary operations at packaging facilities and planting areas granted codes by China's relevant offices to avoid China’s suspension of buying Vietnamese fruits.

The localities should publicise China’s requirements on plant quarantine and MARD’s guidelines on food safety for farmers, farming households and exporters.

Besides closer supervision of phytosanitary processes, the localities' departments of agriculture and rural development ask the packaging facilities to sanitise batches of fruits and have careful checks for the packaging process.

The ministry has also asked localities having border gates to promote plant quarantine work to ensure fruits meet China’s requirements.

The Ministry said Việt Nam gained US$1 billion from the exports of vegetables and fruits in June, up 2.7 times compared to June 2022. In the first six months of this year, the total fruit and vegetable export turnover was estimated at $3 billion - near the $3.16 billion of the whole year of 2022.

Among the top ten largest fruit and vegetable export markets of Việt Nam, China led with nearly 63.5 per cent of the market share, worth about $1.3 billion in the first five months of the year. Following were South Korea, Japan and the Netherlands.

According to businesses, the Phytosanitary Protocols signed with China, along with codes for thousands of planting areas and packaging facilities granted by China authorities, have created many favourable conditions for Việt Nam in exporting vegetables and fruits to this neighbouring market.

Conference seeks to promote start-ups in circular economic model

Experts, management officials and business representatives gathered at a conference in Hà Nội yesterday to discuss measures to promote start-ups following the circular economic model to benefit society and businesses in a sustainable manner.

Addressing the event, Phạm Hồng Quất, 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 the circular economy as a solution to these problems, in which the life cycle of products is extended and negative environmental impacts are minimised.

Meanwhile, Nguyễn Phương 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 Việt Nam.

She said the project underlines the importance of promoting the 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 start-up models, while sharing their viewpoints on advantages and challenges for start-ups as well as lessons in business governance and the shaping of sustainable and circular enterprises. 

International aid for carbon mitigation now on the table

International institutions, including the World Bank, are willing to provide financial aid for Vietnam’s agricultural sector to complete carbon emissions mitigation.

At a meeting with the Ministry of Agriculture and Rural Development (MARD) in mid-July, Anna Wellenstein, director of Sustainable Development for East Asia-Pacific at the World Bank, said that it is ready to disburse aid worth $41.2 million to the country once there is an official emission reduction result verification report.

The requirement for the report was mentioned in a payment agreement that the MARD and World Bank signed in October 2020.

Wellenstein said that this funding is the largest to be disbursed from the World Bank’s Carbon Fund so far. It will primarily focus on reducing carbon emissions in Vietnam’s agriculture sector.

It is just one part of funding that the World Bank provides for Vietnam’s agriculture and rural development. In the upcoming period, it will provide support to Vietnam through various projects and initiatives.

These include repairs to enhance dam safety, strengthening strategic partnerships within the water sector, assisting the Mekong Delta in integrated climate resilience, developing one million hectares of low-emission rice, implementing an emission-reduction programme in the north-central region of the country, promoting sustainable aquaculture development, and initiating the first phase of a coastal resilience initiative

Along with the World Bank, the International Financial Corporation (IFC) also commits to helping the MARD with technical and financial aspects in order to boost green and low-carbon agriculture. The IFC provides financial and technical assistance in reducing livestock emissions as a resource for implementing solutions to reduce greenhouse gas (GHG) emissions in livestock; and assistance in operating an online database for measuring, assessment, and inventory of GHGs in livestock.

International support is crucial for Vietnam and other developing countries to unlock opportunities to pursue net-zero emissions targets, experts said, and greater technology transfer and financial assistance from developed to developing countries would speed up efforts to address global climate change.

Nguyen Anh Minh, former deputy director of the MARD’s Department of International Corporation, told VIR, “Issuing solutions to eliminate GHGs is an urgent requirement. However, agriculture faces a lot of pressure to do this work due to fragmented farming, while agricultural enterprises have yet to pay much attention to this mission,” Minh explained.

“At present, we lack the capital, technology, and technique, so international aid will be the lever to conquer the target of carbon emission mitigation of the agricultural sector.”

The importance of international institutions in helping Vietnam to realise the net-zero target by 2050 was reaffirmed by Prime Minister Pham Minh Chinh at a meeting of the national steering committee on the issue. The meeting on July 14 was the fourth session since the committee debuted in 2021, and its first meeting in 2023.

The prime minister asked the MARD and other ministries to mobilise the resources to respond to climate change and step up energy transition, as well as encourage domestic and foreign organisations and individuals to participate in climate change response and energy transition.

“To mobilise effectively domestic and international resources, the ministries should soon complete concerted mechanisms, policies, and legal documents to remove complexities to entice the attention of both domestic and international resources and create stronger conditions during the disbursement progress,” PM Chinh assigned.

Overload caution sounded out over condotel switch

More than 3,700 tourist apartments, which are part of the Times Square Danang complex, were converted into apartments by Danang People’s Committee in May, and are now causing concern about infrastructure overload both there and at future conversions.

Funded by Kim Long Nam Group, the towers include unfinished units with a scale of 30-50 floors with thousands of apartments, located next to My Khe Beach in the city’s Son Tra district.

According to architect Pham Phu Binh, vice president of the Vietnam Association of Construction Consultants, the conversion was to help condotel developers overcome current difficulties because their owners would be granted ownership certificates, but it also causes concern that they would gather a larger population density and put pressure on urban infrastructure and socioeconomic development.

“With the permission to issue ownership for a condotel, this product still has good potential in the long term. However, only a part of the project should be allowed to be converted to units that are not putting great pressure on urban infrastructure,” Binh said.

However, he warned that management authorities need to study and consider other possible conversions on a case-by-case basis before approval.

“It is necessary to determine from the beginning that the type of condotel is not a permanent house but serves the purpose of tourism and short-term stay only. Infrastructure systems in condotel projects are not appropriated for serving thousands of residents in the long term,” he added.

Meanwhile, Nguyen Manh Khoi, deputy director of Housing and Real Estate Market Management Department under Ministry of Construction, said that the ministry is receiving proposals to adjust condotel projects to housing in many localities with a total up to several thousand units.

“Ministry bodies are setting up guidelines for this conversion, which type of condotel can be transferred, and which ones cannot. Then local authorities and developers can follow,” Khoi said.

Figures from the Ho Chi Minh City Real Estate Association said that there are more than 83,000 condotel units nationwide waiting for approval of ownership, mainly at resort complexes that have a lifespan of 50-70 years.

With numerous condotels cumulating over the past 10 years, the condotel segment has struggled due to the impact of tourism closures in the past few years, along with legal problems in granting ownership.

To remove some of the issues, the government issued Decree No.10/2023/ND-CP, which amends and supplements a number of articles guiding the implementation of the Law on Land and became effective in May.

The decree permits tourism accommodation built on commercial and service land to be certified for ownership of land-attached construction works.

Therefore, hotel apartments, condotels and officetels, resort tourist villas, and other works for accommodation and tourism on commercial and service land are subjected to be provided ownership if they meet all requirements.

Vietnam intensifies scrutiny of construction equitisation

Vietnam's government is urging state-owned construction firms and associated regulatory authorities to stringently enforce audit conclusion 1229, aimed at rectifying potential transgressions in the equitisation process and prevention of state asset losses.
 
The Vietnamese government is redoubling its efforts to enhance accountability in the nation's construction industry, following a directive from the goverment to several regulatory bodies including the Government Inspectorate, the Ministry of Finance, the Ministry of Construction, and the State Capital Management Committee at Enterprises.

The directive mandates strict adherence to audit conclusion 1229, a key report concerning the equitisation and divestment of state capital at various construction entities. The Government Inspectorate has been charged with the responsibility of administering the accuracy and impartiality of the audit, and enforcing compliance, aiming to prevent the potential loss of state assets.

Several construction conglomerates have been brought into the spotlight following this move. State-owned companies such as Vicem, Lilama, VNCC, Licogi, CC1, Coma, Hancorp, and Song Da have all been issued explicit directives to conform to the legal stipulations outlined in the audit. Any detected infractions are to be handled with the utmost severity.

The responsibility of scrutinising the implementation of reorganisation, equitisation, and state capital withdrawal from these enterprises has also been imposed on the corporations. The government hopes that such measures will prevent undue losses of capital and state assets.

In a general push towards better governance, local authorities across the country have been instructed to strictly adhere to land management regulations. These guidelines apply particularly to land areas assigned to the state-owned general construction companies, in an effort to avert any state asset losses during the equitisation process.

The background to this increased oversight can be found in audit conclusion 1229. The Government Inspectorate, in this report, had flagged a series of violations during the equitisation of state-owned general construction companies.

These infractions ranged from enterprise value in financial management – where full enterprise value was not correctly ascertained – to considerable amounts being overlooked during the state capital divestment. Issues regarding land management in the state-owned construction sector were also brought to light.

In its pursuit for justice, the Government Inspectorate recommended an investigation into two cases of financial and land management violations at Mechanical Construction Corporation and Vietnam Water and Environment Investment Corporation. The identified infractions allegedly caused significant losses to the state budget.

Long Thanh airport terminal package seen bringing big return

Investors who win a bid for constructing the passenger terminal at Long Thanh International Airport would be able to make a maximum profit of VND525 billion, according to Vietcap Securities JSC.

The construction of the phase-one Long Thanh International Airport is scheduled to be completed in 39 months, allowing the projected profit to be realized within three to 3.5 years.

Bidding package 5.10, which entails the construction and installation of equipment for the passenger terminal at the airport, has attracted interest from potential contractors.

Three consortiums, consisting of foreign and local contractors, have submitted their bids for construction of the passenger terminal at Long Thanh. The first consortium is CHEC-BCEG-Vietnam Contractors, which consists of two Chinese contractors, China Harbour Engineering Company Limited and CHEC. The Hoa Lu consortium is the only foreign contractor, Powerline Engineering Public Company Limited (PLE) from Thailand. The third consortium is Vietur, led by Turkey’s IC ISTAS.

According to Vietcap Securities JSC, the construction of Long Thanh International Airport Phase I will require 18 million tons of construction stones. The companies poised to benefit from this project are Hoa An Company and Bien Hoa Construction and Building Materials Manufacturing Company.

With an estimated cost of about VND336,630 billion, the airport is designed to serve 25 million passengers and handle 1.2 million tons of cargo annually during its initial phase.

Long An announces development master plan

Long An has taken a momentous step towards its future with the announcement of its development master plan, with a vision to 2050, making it the first southern province to have its provincial master plan approved.

At a conference held on July 25 to unveil the master plan and promote investment opportunities, local and international investors engaged in discussions with provincial authorities, gaining valuable insights into Long An’s policies and potential for business ventures.

During the conference, ministerial leaders outlined the development orientation and measures aimed at fostering cooperation and attracting investments for the province’s growth.

According to the master plan, Long An will be developed around Tan An City, which will serve as its focal point. The region will be structured around three corridors, including Beltway No. 3, Beltway No. 4, and the southern development zone. Additionally, Long An will encompass three key socio-economic areas, namely urban-industrial zones, hi-tech agricultural-tourism areas, and border gate economic-ecological buffer zones.

The province will be supported by six momentum pillars, consisting of Beltway No. 3 and Beltway No. 4, National Highway 50B, National Highway 61B frontage road, My Quy Tay-Luong Hoa-Binh Chanh, National Highway N1, and Duc Hoa.

The conference also featured the introduction of 13 investment projects eligible for incentives, aimed at luring investors to do business in the province.

Participating in the event, Prime Minister Pham Minh Chinh emphasized the need for investors to adhere strictly to their investment commitments and align with provincial planning while crafting long-term, sustainable strategies. He urged businesses to focus on emerging driving forces, such as digital transformation, green transition, green growth and circular economy.

According to the development master plan, Long An is set to become a dynamic, efficient, and sustainable economic center in the southern region. Positioned as the gateway to the Mekong Delta urban-industrial corridor, the province will be closely connected with HCMC and the Mekong Delta region.

Vietnam acts on concerns over imported steel quality

The Vietnamese Government has issued a directive addressing a request by the Vietnam Steel Association (VSA) over the strengthening of imported steel quality management.

The Ministry of Industry and Trade and the Ministry of Science and Technology have been tasked with reviewing and resolving the association’s request.

The directive emphasized the significance of conducting thorough research and handling the matter within the jurisdictions of the respective ministries. It further mandated that any issues exceeding their authority should be promptly reported to the prime minister for appropriate action by July 28.

On July 6, the VSA formally requested the prime minister and the ministries to consider the establishment of technical barriers for domestically produced steel and to enhance quality inspection procedures for steel imports into Vietnam.

The association highlighted the steel industry’s importance as a backbone of the economy and a major player in international trade, emphasizing that steel quality directly impacts multiple economic sectors.

In the international arena, several countries, including Thailand, Indonesia, Malaysia, South Korea, India, Australia and the United Kingdom, have set up high technical barriers and trade defense measures to protect domestic steel production.

These countries require steel products intended for export to undergo certification, attesting to compliance with the importing nation’s quality standards. Such certifications aim to prevent the influx of low-quality products and reinforce quality control measures for imported steel.

In contrast, almost all steel products imported into Vietnam currently face zero import duties, and trade defense measures to protect domestic steel production have been removed. Additionally, steel products like coated and color-coated sheets, steel pipes, and prestressed steel are not subject to any trade defense measures. Moreover, steel products are not included in the Group-2 list of goods subject to specialized quality inspections, according to the Ministry of Industry and Trade’s decision.

Consequently, the importation of steel into Vietnam lacks a proper quality evaluation process, leading to a diverse range of steel varieties and qualities without proper scrutiny or conformity to Vietnamese standards.

Group-2 goods comprise products and goods that, even when handled appropriately and used for their intended purposes, still have the potential to do harm to people, animals, plants, property, and the environment. Therefore, these goods require a quality assurance certificate before being introduced into the market.

Vietnam collects huge tax amounts from e-commerce platforms in H1

Vietnam collected nearly VND4,000 billion in taxes from 57 foreign suppliers, including major companies like Google, Apple, Facebook, Netflix and Tiktok, in the first half of this year.

These tax amounts surpassed their total tax payments from last year, according to the General Department of Taxation.

Through a portal established for foreign suppliers last March, these 57 companies completed tax registration, declaration and payment. Out of the VND3,940 billion paid in taxes, around VND3,400 billion was directly declared and paid through the portal while VND540 billion was deducted by Vietnamese parties on their behalf.

Last year, these cross-border giants paid almost VND3,500 billion in taxes, with VND1,850 billion made via the portal and nearly VND1,630 billion through Vietnamese deductions.

The tax sector also said that e-commerce platform trading contributed significantly to tax revenue. In the first five months, it reached VND246 billion, representing 34% of the total revenue collected in 2022. In 2022 and 2021, Vietnam collected VND716 billion and VND261 billion in taxes from these suppliers, respectively.

Currently, there are 333 active e-commerce platforms, and in the first quarter of this year, 64,300 individuals and 22,840 businesses carried out nine billion transactions on these platforms, with a total value of VND11,500 billion.

The General Department of Taxation is working on regulations to utilize information extracted from the e-commerce platform database for more effective tax management.

Quantity of fruit, vegetable export orders not as high as expected

The Ministry of Industry and Trade yesterday announced that it is hard for fruit and vegetable exporters to obtain many orders in the last half of 2023. 

According to Vietnam Fruit and Vegetables Association, Vietnam has seen a great advantage in selling fruits and vegetables when the Chinese market resumed its activities. However, domestic businesses are encountering obstacles due to quality standards.

If there are no negative developments, China will continue to issue more codes for durian planting areas. In that case, in 2023, the fruit and vegetable industry can earn nearly US$5 billion, becoming the product group with the best export turnover.

In contrast, such produce as coffee, cashew, rubber, pepper, seafood is experiencing difficulties increasing export order quantity because consumer demands just slightly recover. Particularly, as to seafood, major clients of Vietnam in the US and EU still have so large an inventory that they do not want to place new orders.

Cashew industry expects to achieve over US$3 billion in exports in 2023

On July 26, the Vietnam Cashew Association (VINACAS) held a conference to assess the performance of the first half of 2023 to overcome challenges and boost exports, with the ambitious target of reaching US$3.05 billion in exports by the year's end.

On the afternoon of July 26, the Vietnam Cashew Association (VINACAS) held a conference to assess the performance of the first half of 2023 to overcome challenges and boost exports, with the ambitious target of reaching US$3.05 billion in exports by the year's end.

Based on data from the Ministry of Agriculture and Rural Development, the total area under cashew cultivation in 2023 was approximately 320,000 hectares, showing a decrease of 2,300 hectares compared to 2022. Despite this, the production output of cashews reached 345,000 tons, indicating an increase of 3,300 tons compared to the previous year.

On the other hand, businesses imported around 1.44 million tons of raw cashew nuts. During the first six months of the year, the cashew industry exported over 279,000 tons of processed cashews, generating approximately $1.6 billion in export revenue, up 9.49 percent in volume and 7.65 percent in value compared to the previous year.

At present, businesses are confronting the issue of extended warehousing, leading to potential degradation in the quality of raw materials upon delivery to buyers. Furthermore, processing companies are experiencing less pressure to procure and stockpile raw materials compared to previous years due to their ample inventory, which is expected to meet production requirements until the end of the fourth quarter this year and the first quarter of 2024.

On the other hand, cashew prices are highly competitive in comparison with other nut varieties, and due to the plentiful supply, retailers are actively launching diverse marketing and promotional campaigns to boost consumer demand.

The outlook until the end of the year suggests that, in a "favorable" scenario, businesses with stocked goods will possibly boost demand and expedite consumption, leading to decreased inventory levels in significant consumer markets, such as the US and Europe. As a result, this will help stabilize prices and maintain the quality of exported products. However, rising input costs and the ongoing decline in cashew shell prices may prompt processing companies to adjust their selling prices to avoid losses.

Furthermore, there are two possible scenarios: firstly, if the cashew harvest in East Africa and Indonesia faces unfavorable conditions, the prices of raw cashews will rise towards the end of the year. On the other hand, if the cashew harvest in East Africa and Indonesia is favorable, the supply of raw cashews to the market will continue to increase, resulting in a further decline in raw cashew prices.

Mr. Pham Van Cong, Chairman of VINACAS, has proposed that the Plant Protection Department under the Ministry of Agriculture and Rural Development provide support in resolving issues related to electronic phytosanitary certificates from the Ivory Coast and other countries. Additionally, he suggested increasing personnel to assist businesses with the sampling and inspection process at warehouses on both regular days and weekends, aiming to expedite cargo clearance at ports. Moreover, relevant ministries and agencies should enhance the dissemination of market information, customer insights, consumer trends, and potential trade risks in foreign markets to aid cashew businesses when unforeseen challenges arise.

Wood exporting enterprises at risk of high tax in US market

The US Department of Commerce yesterday informed that several Vietnamese wood exporters are at a risk of high tax when selling products in this country. 

Until now, 37 Vietnamese hardwood plywood manufacturers have received a notice from the US Department of Commerce about an investigation on the evasion of anti-dumping duty and anti-subsidy tax. At present, they have to pay a deposit for a total tax of over 200 percent, yet are not eligible for the self-certification mechanism.

Vietnam Timber and Forest Products Association shared that the US Department of Commerce had questioned if plywood exported from Vietnam were actually originated from China or not. Right now, this Association is cooperating with the Ministry of Industry and Trade and related businesses to work with the US to avoid the risk of suffering high tax for these kinds of product.

Meanwhile, the Trade Remedies Authority of Vietnam (under the Ministry of Industry and Trade) further informed that it has received a notice that the US Department of Commerce has extended the date to issue its inspection conclusion about the evasion of safeguard duties on wooden cabinets exported from Vietnam.

It is expected that this conclusion will be released on August 17, 2023.

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