Following the adjustments seen in the previous week, the stock market continued to experience a volatile week. The market declined sharply in the first two sessions, causing the VN-Index to test the technical limit of 1,220 points before rebounding. At the same time, foreign investors halted their consecutive weekly net selling since February.

Following a dynamic trading week in early July, the Vietnamese market experienced three consecutive weeks of declines, hitting its lowest point at 1,218 points last week. Although the index recovered afterwards, liquidity significantly dropped. The Vietnamese stock market has been described as "bleak" despite positive macroeconomic numbers.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index closed the week at 1,242.11 points, while the HNX-Index on the Hà Nội Stock Exchange (HNX) ended at 236.66 points.

Both indices recorded weekly declines, with the former decreasing by 1.79 per cent and the latter by 1.6 per cent.

The average daily transaction value across the market was VNĐ16.12 trillion (US$767.3 million) per session, a significant drop of 17.2 per cent compared to the VNĐ19.48 trillion recorded the previous week.

Foreign investors returned to net buying after many consecutive weeks of net selling since late February. On the HoSE, they net sold for two sessions and net bought for three sessions. Overall, they net bought VNĐ387 billion on the southern bourse.

According to Phan Tấn Nhật, head of analysis at Saigon-Hanoi Securities, some organisations (HSBC, Citibank) have provided positive assessments of Việt Nam's economic outlook, based on the strong GDP growth in Q2 and gains in exports and foreign direct investment.

Specifically, HSBC has raised its 2024 GDP growth forecast for Việt Nam to 6.5 per cent (from 6 per cent previously) and lowered its inflation forecast to 3.6 per cent. During the week, the US Department of Commerce decided to delay its announcement on whether Việt Nam qualifies as a market economy (extended by one week to 2 August) due to recent global software issues.

Nhật said that after a week of trading under adjustment pressure with unusual trading volumes, particularly due to information about margin loans reaching new highs at the end of Q2, the stock market experienced another less positive week with significant declines to the 1,200-1,220 point support range. This range combines the 200-day moving average with the highest prices 2018 and the five-year average price.

According to experts at SHS Securities, in the short term, the VN-Index is testing the 1,255-point range (the highest level of 2023) and the short-to-medium term trend line connecting the lowest points from November 2023 to July 2024.

In the medium term, Nhật noted that the market's accumulation is weak, similar to the short-term trend, as the VN-Index failed to maintain the trend line from November 2023 to the present, as well as the balance range of 1,245-1,255 points. Therefore, the market is transitioning to accumulation within the VN-Index range of 1,200-1,255 points.

The analysis team from Vietcombank Securities (VCBS) noted that on the daily chart, the index is moving within the Bollinger Bands and closely follows the support and resistance indicators. Additionally, the Chaikin Money Flow (CMF) indicator is rising, indicating that the buying force has become more proactive in the market. If the demand remains stable and the money flow continues to diversify, the market is expected to accumulate and recover, aiming for the VN-Index to reach 1,260 points in the coming week.

Regarding trading strategies, the VCBS analysis team suggested that the stock market is showing relatively clear signs of recovery with stable money flow distribution among sectors. Therefore, investors can consider gradually disbursing funds into stocks showing recovery signs. 

New credit regulations on related-party transactions proposed

The Ministry of Finance (MoF) has proposed new regulations on determining related-party transactions between enterprises and credit institutions to fight against transfer pricing.

The proposal is under a MoF’s draft decree amending and supplementing Decree No. 132/2020/ND-CP regulating tax management for enterprises with related transactions.

In the draft decree, which it is making public for comments, the MoF proposes a related party of a credit institution is an enterprise that directly or indirectly holds at least 20% of the charter capital of a credit institution. Both enterprises have at least 25% of the owner's capital contribution held directly or indirectly by a third party. The enterprise and the credit institution both have at least 20% of the charter capital held directly or indirectly by a third party.

Under the draft decree, the MoF also proposed the State Bank of Vietnam coordinates and provides information for tax authorities if being required to identify enterprises with related-party transactions. The information includes foreign loans and debt repayments of each specific enterprise with related transactions, data on loan turnover, interest rates, interest and principal payment periods and actual capital withdrawals and debt repayments.

“The SBV should coordinate in providing information on related persons of credit institutions and associated enterprises of credit institutions when requested by the tax authority,” the MoF proposed.

According to the MoF, the amended regulations in the draft decree is aimed to make the decree to be consistent with the provisions of the newly-issued Law on Credit Institutions.

The revised Law on Credit Institutions, which took effect from early this month, is aimed at promptly legalising the Party's policies and guidelines, improving the legal frameworks in the banking sector, meeting the requirements of restructuring the banking system, ensuring safe and sound banking operations and enhancing the transparency in accordance with the international standards and practices./.

Apparel firms enjoy better business on rising orders

Textile and garment firms have enjoyed a more robust business result on the back of an increase in orders which helped the sector gain 16.52 billion USD in export revenue in the first half of this year, up 4.6% year-on-year, according to the Vietnam National Textile and Garment Group.

During the six-month span, key export markets of the Vietnamese products were the US (7.21 billion USD, up 3.6% against the same time last year), the EU (1.95 billion USD, up 0.8%), Japan (1.87 billion USD, up 6.8%), and the Republic of Korea (1.36 billion USD, up 1.1%).

Particularly, export revenue in the second quarter rose 11.2% year-on-year to 8.7 billion USD.

Hoa Tho Textile – Garment JSC’s profit after tax during April - June surged 110% to 69 billion VND (2.72 million USD), the largest ever over the past seven quarters. Meanwhile, the figure for the first half was more than 115 billion VND, as compared to only 75 billion USD recorded in the same time last year.

In the same vein, TNG Investment and Trading JSC announced that it bagged 86.3 billion VND in net profit in Q2, and over 129 billion USD in the first half, up 61.6% and 37.7% year-on-year, respectively.

Meanwhile, Thanh Cong Textile Garment – Investment – Trading JSC enjoyed a profit of 147.5 billion VND in the first half, rising 29% against the same period last year.

Other enterprises achieving robust profits included Huu Nghi Garment JSC (25.8 billion VND, up 33%), and Tien Son Thanh Hoa Group JSC (6 billion VND, up 361%).

However, several firms expressed their concern over the possibility of strong devaluation of domestic currencies in some countries to support exports, high shipping fees, as well as rising power cost and financial charges in the coming time.

Besides, an acute shortage of skilled workers is exerting pressure on the sector, which has targeted 44 billion USD in export revenue this year./.

Vietnam introduces agricultural strengths in Canada’s Alberta province

The Vietnam Trade Office in Canada has introduced the structure of Vietnam’s agricultural products and the potential for cooperation between Vietnamese enterprises with their peers in Alberta province of Canada in farm produce production and processing.

At a dialogue on Vietnamese agriculture held recently in Alberta, the office shared the important role of agriculture in the Vietnamese economy as well as Vietnam’s efforts to engage in the global agricultural chain to ensure food security.

Some enterprises of Alberta and British Columbia, which are engaging in production activities of Vietnam or partnering with Vietnamese firms, were invited to the dialogue to share their experience in optimising the advantages created by the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to cooperate with Vietnamese partners in food processing.

Representatives from the trade office, the Canada-ASEAN Business Council and the Office of the Trade Commissioner Service of Canada in the region answered participants’ questions on mechanisms to support businesses that wish to expand their operations abroad. Alberta is keen on seeking opportunities to expand its market into the Indo-Pacific region and sees Vietnam as a gateway to this region.

Alberta currently has more than 41,500 agricultural farms, 959 agricultural production facilities and 511 food processing establishments. The food processing industry accounts for 25% of the total industrial production value of this province.

The agricultural sector plays a major role in Alberta’s economy and contributed 13% to its economic growth in the 2016-2022 period. Currently, about 20% of Canada’s agricultural exports originate from Alberta. The locality is working to attract investors to the plant-based food sector and processing activities using the province's agricultural and livestock products.

Within the framework of the Calgary Stampede, a 10-day annual rodeo, exhibition, and festival held every July in Calgary, Alberta, the Vietnamese Trade Office had a working session with the Invest Alberta Corporation to explore models for attracting foreign investment, especially in the agriculture and energy sectors. The locality is now committing to a 12% tax credit for processed food investment projects valuing over 10 million USD. It is also offering refund of up to 60% of investment value and a funding mechanism of up to 12% of total capital for businesses investing in developing clean energy infrastructure.

Alberta has 27,000 oil and gas exploitation facilities and 18,000 gas exploitation facilities, with oil and gas reserves of up to 100 billion tonnes.

This year, Stampede, dating back to 1886, took place from July 5-14, attracting 1.5 million visitors./.

Ninh Binh promotes tourism in India

A Ninh Binh delegation led by Chairman of the provincial People's Committee Pham Quang Ngoc had a working trip to Mumbai city, Maharashtra state, India, from July 26-27 to promote its tourism.

The Consulate General of Vietnam in Mumbai coordinated with the delegation in organising a series of activities to promote the northern locality's tourism and economic potential and advantages, notably the meeting with the Travel Agents Federation of India (TAFI) and the dialogue with some tourism organisations and Bollywood film producers.

Speaking at the two events, Ngoc emphasised that Ninh Binh is striving to develop comprehensive tourism, while preserving and promoting local cultural values, and unique natural landscapes for sustainable tourism development.

He said Ninh Binh always welcomes Indian businesses, investors, tourism agencies, and film crews to come to explore possibilities for Meetings, Incentives, Conferences, and Exhibitions (MICE) tourism, weddings, and film production, pledging to create favourable conditions for partners to promote Indian tourism in Vietnam in general and Ninh Binh in particular.

Consul General Le Quang Bien emphasised that cooperation in the fields of tourism, culture, and Bollywood cinema plays an important role in enhancing cooperation and people-to-people connectivity between Vietnam and India.

Indian delegates and partners got an insight into Ninh Binh, including its tourist attractions such as the Hoa Lu ancient capital and the Trang An - Tam Coc - Bich Dong site, and suggested measures to boost local tourism and cultural development.

At a working session with the delegation, Bien affirmed that the Consulate General is ready to support Ninh Binh province and other Vietnamese localities in implementing foreign affairs in service of socio-economic development, contributing to promoting the relations between Vietnam and India./.

Khanh Hoa’s Cam Ranh city to host first-ever lobster festival

Cam Ranh city in the south-central province of Khanh Hoa will hold the first-ever lobster festival from August 3-11, heard a press conference held in the locality on July 28.

According to Vice Chairman of the city People’s Committee Ngo Huu Hien, the festival will be an opportunity for Cam Ranh, dubbed “a kingdom of lobsters”, to popularise its staple, promote trade, and expand market domestically and internationally.

Besides, the city, throughout the event, will enhance communications work on local lobster development planning, as well as transfer and showcase new farming technologies, he added.

Various activities are scheduled during the festival such as a cuisine event, a boat race, a culinary contest, and a performance of traditional art, expected to draw throngs of visitors.

Cam Ranh plans to make the festival annual, aiming at introducing and promoting local cultural values as well as economic and tourism potential.

Home to renowned Cam Ranh Bay and Binh Ba Island, Cam Ranh is considered in the same tourism league as San Francisco Bay in the US, and Rio de Janeiro in Brazil.

The city also boasts nearly 80,000 lobster faming cages, and provides the market with 2,600-3,000 tonnes every year./.

Vietnam lures over 18 billion USD in foreign capital in seven months

Total registered foreign capital in Vietnam during January – July amounted to more than 18 billion USD in Vietnam, a year-on-year increase of 10.9%, according to the Ministry of Planning and Investment’s Foreign Trade Agency.

The disbursed investment was recorded at over 12.55 billion USD, up 8.4% as compared to the same time last year.

Foreign investors injected 10.76 billion USD in 1,816 new projects, rising 35.6% and 11.6%, respectively.

Meanwhile, 734 projects had their capital adjusted up with a total amount of more than 10.76 billion USD, down 0.3% in the project number, and up 19.4% in capital year-on-year.

Capital contributions and share purchases fell 45.2% to 2.27 billion USD.

The agency said that foreign investors funneled their money in 18 out of 21 economic sectors, with the processing and manufacturing industry attracting the largest share of over 12.65 billion USD, or 70.3% of the total. The realty sector came second with more than 2.87 billion USD, wholesale and retail sale industry third with nearly 740.5 million USD, and professional activities and science-technology fourth with over 490.6 million USD.

Registering 6.52 billion USD, Singapore was the biggest investor among 91 countries and territories investing in the nation in the reviewed period, followed by China’s Hong Kong, Japan, China and the Republic of Korea.

The foreign investors landed their capital in 48 cities and provinces across the nation. Bac Ninh attracted the largest amount of foreign capital with nearly 3.2 billion USD while in the second and third places were Quang Ninh and Ho Chi Minh City, luring over 1.56 billion USD and 1.55 billion USD, respectively.

The foreign-invested sector enjoyed a trade surplus of around 27.9 billion USD (including crude oil), and contributed greatly to the nation’s trade surplus of 12.4 billion USD during the seven-month period.

As of July 20, Vietnam was home to 40,777 valid foreign projects with total registered capital of 487 billion USD. Some 309.7 billion USD was disbursed by the time./.

Vietnam maintains top position among Singapore’s rice supplier

Vietnam continued to be the top source of rice in Singapore, with 73.4 million SGD (over 54.6 million USD) worth of rice shipment to the nation during January-June, a year-on-year surge of 54.67%.

Statistics from the Vietnam Trade Office in Singapore showed that export turnover of glutinous rice to the city-state rose more than five fold to 8.9 million SGD, broken rice shot up 187.3% to 1.5 million SGD, and milled or husked fragrant rice soared 161.35% to 27.27 million SGD.

Meanwhile, earnings from white rice witnessed a slight increase of 1.91% to 34.5 million SGD, while revenue from regular brown rice fell 51.2% to 102,000 SGD.

Vietnamese rivals, Thailand and India, sold some 70.73 million SDG and 58.41 million SGD worth of rice to the nation.

Singapore’s increasing rice import is attributable to India’s rice export ban, and the country’s tourism recovery. During the six-month span, it spent nearly 224.5 million SGD on rice purchase, up 13.62% year-on-year.

According to Vietnamese trade counseller Cao Xuan Thang, major competitors of Vietnam in the Singaporean market, namely Thailand, India and Japan, have paid due attention to enhancing their product images, while Vietnamese firms have had no large-scale promotion campaign.

He stressed that Vietnamese exporters must strive to improve their competitive edge as well as rice quality, given the strict management of the rice market by the Singaporean government.

The signing of agreements and commitments at the governmental level regarding rice supply will contribute to stabilising Vietnamese rice shipment to Singapore, he suggested.

In the first three months of this year, Vietnam for the first time surpassed India and Thailand to become the largest rice exporter to Singapore by shipping 36.15 million SGD worth of rice, an increase of 80.46% over the same period in 2023./.

Advanced technology helps garment - textile industry adapt to challenges: insiders

Garment and textile enterprises must renew technology, move toward green production and bolster trade promotion, among others, to navigate headwinds, according to insiders.

Although the sector witnessed recovery since the outset of the year, with export revenue during January-April rising 7.5% year-on-year to 12.5 billion USD, challenges remain, including supply chain risks, digitalisation, circular economy and green production, the Vietnam National Textile and Garment Group said.

Vice Chairman of the Vietnam Textile and Apparel Association (VITAS) Truong Van Cam stated that Vietnam gained 44 billion USD from garment and textile export in 2022, which fell to only 39.5 billion USD in the tough year of 2023.

This year, the sector is striving to get back to the 2022 level, he said, adding it will strive toward sustainable development based on digital transformation and green growth by 2030.

Chairman and General Director of Viet Thang Jean Company Limited Pham Van Viet said that to achieve the set goals, enterprises must focus on restructuring and applying advanced technology to improve productivity and product quality, while enhancing multilateral cooperation and boosting the sales of original equipment manufacturer and free on board (OEM/FOB) goods, among others.

He particularly laid stress on the significance of the application of state-of-the-art technology into production and digitalisation, saying fastidious markets like Europe and the US impose strict requirements on green production.

Viet Thang Jean has gone green to better its operation and protect the environment, he said, adding the company invested in a 12.5 million-USD conveyor belt production which does not have negative impacts on the environment.

Besides, automatic fabric cutting machines, nano-dye technology, and Turkish washing technology, among others, have been applied in the company, helping it gain the Oeko-Tex certificate which guarantees Viet Thang products are free from harmful substances, he stressed.

Other firms in the industry have jumped into the bandwagon to switch to modern production models that are friendly with the environment so as to gain advantages while engaging in the global supply chains.

Fadatech fabric dyeing and printing JSC has applied digital printing technology to protect the environment, according to its Director Nguyen Huu Phuc.

He added that costs related to the technology shift are high as the firm has to send its staff abroad for training on new technology.

Viet held that amidst economic challenges, the industry needs more time to seek orders to improve their profits and make technology investment to improve production efficacy./.

Vietnam, Laos strengthen trade relations

The Vietnam - Laos Trade Fair 2024 (VIETLAO EXPO), the largest annual trade promotion event co-hosted by the two countries’ Ministries of Industry and Trade, is being held in Vientiane from July 25 to 29.

At the opening ceremony on July 25, Vietnamese Ambassador to Laos Nguyen Ba Hung remarked that economic cooperation has become a longstanding foundation in the bilateral relationship and is showing sound development. Vietnam has consistently been one of Laos's top three largest trading partners, with bilateral trade reaching 928 million USD by the end of June, an annual increase of 11%.

Hung expressed his hope that their trade volume would exceed the 10% growth target set for this year by their senior leaders at the 46th meeting of the Vietnam-Laos intergovernmental committee.

The diplomat noted that many Vietnamese investment projects in Laos are operating effectively, significantly contributing to the local socio-economic development, creating jobs, raising incomes for thousands of workers, and increasing the Lao state budget's revenue. Looking ahead, the two governments aim to raise the bilateral trade to 2 billion USD by maximising the two sides’ potential for commercial cooperation.

The expo features around 250 booths of businesses, with the Vietnamese section comprising 120 standard booths of nearly 80 reputable companies across various sectors such as pharmaceuticals and medical equipment, agro-forestry-fishery and processed foods, textiles and fashion, handicrafts, interior and exterior decoration, and consumer goods, among many others.

Vietnamese businesses participating in the expo aim to promote the national image, boost exports, expand distribution networks in Laos and northeastern Thailand, and showcase the strengths of Vietnamese industries. The event serves as an effective bridge for trade organisations, manufacturers, and investors from both countries to exchange experiences, transfer technology, and explore investment opportunities./.

Vietnamese coffee export prices to UK surge

Vietnam is the second-largest supplier of coffee to the United Kingdom (UK). The average export price of Vietnamese coffee to the UK in the first half of 2024 reached 3,941 USD per tonne, an increase of 68.4% compared to the same period last year.

According to data from the General Department of Customs, Vietnam’s coffee exports to the UK in June 2024 totalled 2,180 tonnes, valued at 9.1 million USD, down 44.6% in volume and 17.5% in value compared to June 2023. The significant drop in coffee volume has led to a sharp increase in prices.

The UK imports coffee from 94 countries and territories worldwide. The primary coffee suppliers to the UK market include Brazil, Vietnam, Germany, Italy, and Colombia.

According to statistics from the International Trade Centre (ITC), in the first five months of 2024, the UK imported 94,210 tonnes of coffee from the world, worth 553 million USD, an increase of 8.1% in volume and 2.6% in value compared to the same period last year.

The average import price of coffee into the UK from the world reached 5,870 USD per tonne, down 5.2% compared to the same period last year. Notably, the average import price of coffee from Brazil, Germany, and Colombia decreased; however, the average import price from Vietnam surged by 45.4% to 3,378 USD per tonne.

Brazil is the largest coffee supplier to the UK in the first five months of 2024, with a volume of approximately 37,470 tonnes, valued at 128.81 million USD, an increase of 93.8% in volume and 45.1% in value.

Vietnam followed as the second-largest coffee supplier to the UK in the first five months of 2024, with a volume of 15,330 tonnes, valued at 51.79 million USD, a decrease of 22.8% in volume but an increase of 12.2% in value compared to the same period last year.

Vietnam’s share of total UK coffee imports from the world decreased from 22.8% in the first five months of 2023 to 16.27% in the first five months of 2024. During the first five months of 2024, the UK increased its coffee imports from Germany and Italy but reduced imports from Colombia./.

Vietnam's ports ready to welcome megaships

Vietnam's port system is now equipped to handle the largest ships in the world, attracting operations from 40 major international shipping lines.

According to the Vietnam Maritime Administration (VINAMARINE), out of the country’s 34 ports, 30 are capable of accommodating large-tonnage vessels. Vietnam currently boasts three ports - Ho Chi Minh City, Hai Phong, and Cai Mep - Thi Vai - among the top 50 container ports globally by throughput.

Le Do Muoi, Director of VINAMARINE, highlighted that accommodating large ships has significantly enhanced operational efficiency for shipping companies. This has reduced transport costs and increased the competitiveness of Vietnamese ports, thereby contributing to local and regional economic and social development.

Over the past five years, the number of large-tonnage vessels docking at approved ports has notably increased, from 4,538 in 2019 to 5,474 in 2023. Additionally, maritime assurance fees and tonnage fees at ports handling large vessels have risen from nearly 2.78 trillion VND (111.2 million USD) to 3.45 trillion VND in the same period.

In terms of cargo volume, the first six months of 2024 saw more than 427.64 million tonnes handled, up 18% year-on-year. Container cargo alone was estimated at over 14.39 million TEUs, a year on year rise of 22%.

Muoi noted that current industry plans include the development of major ports to accommodate large ships. The maritime sector will review the feasibility of old ports handling large vessels, assessing safety and implementing necessary regulations.

VINAMARINE is also proposing a comprehensive study on the handling of large-tonnage ships at Vietnamese ports. This will involve standardising procedures and methods to ensure that existing infrastructure can safely and legally accommodate large vessels.

Deputy Minister of Transport Nguyen Xuan Sang said expanding maritime and waterway transport not only reduces logistics costs but also aligns with the government's green development goals, reinforcing Vietnam's commitment at the 26th United Nations Climate Change Conference (COP26)./.

Rice exports to set record turnover of 5 billion USD in 2024

Rice exports could bring in a record turnover of 5 billion USD this year if the pace of shipment is maintained like at present, according to Vu Tuan Anh, CEO of GLE company, a rice exporter.

There is ample room for Vietnamese rice exports as demand in major rice importers such as the Philippines, Indonesia, China and Africa is huge.

According to the Ministry of Agriculture and Rural Development (MARD), Indonesia imported 2.2 million tonnes of rice in the first five months of 2024 and plans to import an additional of 2.1 million tonnes from June – December.

Anh shared that Indonesia can import up to 4.3 million tonnes of rice in 2024 if the country’s crop output falls behind expectation due to drought, flood or pests, which would be an opportunity for Vietnamese rice exporters as Vietnamese rice’s quality is among the highest level in the world.

Besides, there are also good chances to export rice to the Philippines, which imported more than 1.7 million tonnes of rice from Vietnam in the first six months of this year, and the demand is projected to remain stable in the remaining months of the year, he added.

Data of the Vietnam Customs showed that since the beginning of the year to mid-July, Vietnam shipped more than 4.8 million tonnes of rice, bringing home nearly 3.1 billion USD. The average rice export price increased 12% compared to the same period last year, reaching 612.3 USD per tonnes.

Nguyen Ngoc Nam, Chairman of the Vietnam Food Association affirmed that demand for rice in the world is still enormous with traditional markets such as China, the Philippines, Indonesia being major importers of Vietnamese rice. The association has actively introduced Vietnamese rice to new markets like Africa and the Middle East.

The MARD said that Vietnam’s unhusked rice output is expected to reach more than 43 million tonnes in 2024, which is enough to ensure domestic consumption and export demand of more than 8 million tonnes of husked rice./.

Seven-month foreign arrivals up nearly 51% year on year

Vietnam welcomed approximately 10 million foreign arrivals in the opening seven months of the year, marking a year on year increase of 51%, according to the General Statistics Office (GSO).      

The January-July figure was up 1.9% from the same period in 2019 before the COVID-19 pandemic broke out, said the GSO in a report released on July 29.

Statistics show 8.4 million foreigners chose to travel to Vietnam by air, around 1.4 million by road, and the remainder by sea.

Asia was the largest Vietnamese tourist market with over 7.9 million arrivals, up 57.1% year on year. This was followed by Europe with 1.62 million arrivals, rising by 47.3%; the Americas with 610,200 arrivals, up 19.7%; Australia with 309,000 arrivals, up 27.3%; and Africa with 29,200 arrivals, up 98.5%, respectively.

July alone saw the country receive 1.15 million international arrivals, up 10.9% compared to the same period last year. 

The number of international visitors has increased strongly thanks to the effectiveness of favourable visa policies, along with the tourism promotion stimulus programme which has been put in place.

The GSO anticipates that future growth momentum will be maintained over the coming months towards meeting the set goal of welcoming 18 million foreign tourists by the end of the year.

Vietnam racks up trade surplus of over US$14 billion in seven-month period

Vietnam posted a trade surplus of over US$14 billion during the first seven months of the year, according to the latest report released by the General Statistics Office.      

The reviewed period witnessed the country’s total import and export turnover reach an estimated US$439.88 billion, up 17.1% against the same period last year. Of the figure, exports and imports increased by 15.7% and 18.5% to US$226.98 billion and US$212.9 billion, respectively.

There were 30 commodities that recorded an export turnover of over US$1 billion each, accounting for 91.9% of the total export revenue. Most notably, nine items obtained an export turnover of more than US$5 billion each, making up 70.8% of the total.

Processed industrial products topped the list of export items, bringing back US$199.94 billion, followed by agro-forestry products US$19.27 billion, and aquatic products with US$5.29 billion.

The United States was Vietnam’s largest export market with an estimated turnover of US$66.1 billion, while China was the largest supplier of products to Vietnam with revenue of US$79.2 billion.

During the seven-month period, the country produced trade surpluses of US$57.5 billion, US$20.1 billion, and US$1.1 billion with the US, the EU, and Japan, respectively.

Vietnam introduces agricultural strengths in Canada’s Alberta province

The Vietnam Trade Office in Canada has introduced the structure of Vietnam’s agricultural products and the potential for cooperation between Vietnamese enterprises with their peers in Alberta province of Canada in farm produce production and processing.

At a dialogue on Vietnamese agriculture held recently in Alberta, the office shared the important role of agriculture in the Vietnamese economy as well as Vietnam’s efforts to engage in the global agricultural chain to ensure food security.

Some enterprises of Alberta and British Columbia, which are engaging in production activities of Vietnam or partnering with Vietnamese firms, were invited to the dialogue to share their experience in optimising the advantages created by the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to cooperate with Vietnamese partners in food processing.

Representatives from the trade office, the Canada-ASEAN Business Council and the Office of the Trade Commissioner Service of Canada in the region answered participants’ questions on mechanisms to support businesses that wish to expand their operations abroad. Alberta is keen on seeking opportunities to expand its market into the Indo-Pacific region and sees Vietnam as a gateway to this region.

Alberta currently has more than 41,500 agricultural farms, 959 agricultural production facilities and 511 food processing establishments. The food processing industry accounts for 25% of the total industrial production value of this province.

The agricultural sector plays a major role in Alberta’s economy and contributed 13% to its economic growth in the 2016-2022 period. Currently, about 20% of Canada’s agricultural exports originate from Alberta. The locality is working to attract investors to the plant-based food sector and processing activities using the province's agricultural and livestock products.

Within the framework of the Calgary Stampede, a 10-day annual rodeo, exhibition, and festival held every July in Calgary, Alberta, the Vietnamese Trade Office had a working session with the Invest Alberta Corporation to explore models for attracting foreign investment, especially in the agriculture and energy sectors.

The locality is now committing to a 12% tax credit for processed food investment projects valuing over US$10 million. It is also offering refund of up to 60% of investment value and a funding mechanism of up to 12% of total capital for businesses investing in developing clean energy infrastructure.

Alberta has 27,000 oil and gas exploitation facilities and 18,000 gas exploitation facilities, with oil and gas reserves of up to 100 billion tonnes.

This year, Stampede, dating back to 1886, took place from July 5-14, attracting 1.5 million visitors.

Newly-established enterprises up 6.3% in seven months

As many as 95,217 enterprises were established in the Jan.-Jul period of the year with a total registered capital of over VND854 trillion, marking year-on-year rises of 6.3% and 2.4%, respectively.      

Unveiling the statistics on July 29, the General Statistics Office reported that the average registered capital of a new enterprise throughout the reviewed period stood at VND9 billion, a decline of 3.6% year on year.

The agency also noted that about 44,300 businesses resumed operations in the reviewed period, an increase of 4.7% year on year, thereby bringing the total number of newly-established businesses and firms returning to operation in seven months to 139,500, up 5.8% over 2023.

Over 35,500 businesses stopped operations to wait for dissolution procedures, down 1.5%.

Meanwhile, the General Statistics Office also reported that the index of industrial production (IIP) maintained its upward trend in July, inching up 0.7% month on month and 11.2% year on year.

The July figure drove up the seven-month IIP to 8.5% compared to the same period last year, which was mainly contributed by processing and manufacturing.

Inflationary pressure builds up as seven-month CPI rises 4.12%

Vietnam’s consumer price index (CPI) soared 4.12% in the first seven months of the year, which is bringing to bear pressure on national inflation.      

Data unveiled by the General Statistics Office (GSO) on July 29 shows the national CPI inched up 0.48% in July alone compared to June, which is considered a rather high rate due to rising prices of petroleum products, growing health insurance premiums, and increasing demand for electricity usage

Among the 11 main groups of consumer goods and services that are used to calculate the CPI, 10 of them witnessed growth in prices, while only the price of the post and telecommunications services remained unchanged.

The seven-month CPI average of 4.12% is gradually approaching the 4.5% threshold that needs to be monitored in the coming months, say experts.

Under the 2024 Socio-Economic Development Plan approved by the National Assembly, Vietnam has set the target of controlling this year’s inflation at 4-4.5%. However, the Government has resolved to control inflation at the lower threshold (4%) of this target.

According to the General Statistics Office, core inflation in July increased 0.36% over the previous month and 2.61% over the same period last year. On average, seven-month core inflation edged up 2.73% year on year which is lower than the CPI average of 4.12%.

Indeed, the prices of food, household electricity, educational services, medical services and petroleum products fuel the CPI but they are among goods that are excluded from the list of core inflation calculations.

In a recently released report Citibank is still optimistic that the inflation rate has little room to keep going up in the coming months. There may be adjustments to domestic electricity prices, but weaker-than-expected global growth could lead to a potential drop in oil prices in the second half of 2024 and into 2025.

Citibank’s economic experts do not believe that the 4.5% inflation target will be beaten, although background inflation may increase as domestic demand continues to recover.

Fruit and vegetable exports likely to exceed US$7 billion this year

Vietnamese fruit and vegetable exports are anticipated to bring back more than US$7 billion this year thanks to continued high demand in the global market, according to industry insiders.

Statistics released by the General Department of Vietnam Customs indicate that fruit and vegetable exports earned nearly US$3.57 billion between January and mid-July, making fruit and vegetables the third largest export items among farm produce.

China remained the largest consumer of Vietnamese fruit and vegetables in the reviewed period, spending US$2.16 billion purchasing the products, up 22% against the same period last year.

It was followed by the Republic of Korea and the United States that purchased US$164 million and US$157 million from the Vietnamese products, up 54.6% and 33.5%, respectively.

Most notably, exports to Thailand recorded the highest growth rate of up to 95.5% compared to last year’s corresponding period.

Experts say Vietnamese fruit and vegetable exports in the second half of the year will continue to rise thanks to seasonal factors coupled with an abundance of supply sources.

The increasing global demand is predicted to help the country to rake in over US$7 billion from fruit and vegetable exports this year.

Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association, says that Vietnamese farm produce has enjoyed numerous advantages in exports to the Chinese market thanks to geographical location coupled with similarities in culinary culture.

Durian is one of the farm produce which has proved particularly popular among Chinese consumers. In April, Vietnam surpassed Thailand to become the largest supplier of this fruit to China, with 32,750 tonnes shipped to the lucrative market.

Nguyen anticipates that fruit and vegetable exports will continue to grow by between 15% and 20% this year, providing that businesses take full advantage of the opportunities from signed protocols.

Meanwhile, markets such as the US, Japan, and the EU have also opened their doors to the prospect of importing more Vietnamese fruit due to its high quality.

In particular, thanks to advantages of the EU-Vietnam Free Trade Agreement (EVFTA), the country has exported a number of stable products such as bananas, durian, coconut, longan, and spices to the demanding market.

Moreover, apart from dragon fruit, mango, and lychee, Vietnamese fresh longan has also made inroads into the Japanese market, opening a wealth of opportunities for Vietnamese fruit to enter other developed countries moving forward.

According to industry insiders, fruit and vegetable enterprises are required to improve quality and strictly comply with regulations on product quality and origin traceability in a bid to further penetrate these markets.

Experts from 40 countries to talk global economic issues in Vietnam this week

As many as 250 experts and scholars from 40 countries and territories worldwide will attend the 2024 Asia Meeting of the Econometric Society, East & Southeast Asia (AMES-E/SE) in Ho Chi Minh City from August 2-4 to discuss burning issues of the global economy.

Econometrics is necessary for a rapidly developing country like Vietnam, helping the Government, coordinating agencies and businesses to make decisions based on scientific calculations and practical data. During the process of international economic integration, the use of econometrics will also help Vietnam grasp global trends, optimize resources, and improve competitiveness.

Keynote presentations will talk relationships in the economy and assess policy impacts on production and business activities, international trade, financial markets, and sustainable development, said organisers.  

Macro topics such as health economics, education economics and retirement will also be touched upon at the meeting, they added.

This is the first time Vietnam has registered to host such a meeting of the World Econometrics Association. It will be organized by the Ho Chi Minh City University of Banking, Association of Vietnamese Scientists and Experts (AVSE Global), and Ecole de Management Leonard De Vinci in Paris (EMLV Business School).

Pakistan represents Vietnam's largest tea export market in first half

Pakistan was Vietnam's largest tea export market with 16,072 tons being shipped to the South Asian nation in the first half of the year, and it was also the only market recording an export volume of over 10,000 tons of tea.      

According to data from the General Department of Customs, from the beginning of the year to mid-July, Vietnam exported 68,736 tons of tea, an increase of 30% over the same period from last year.

The average export price of tea reached US$1,718 per ton, up 1.2% on-year, bringing the cumulative tea export turnover up to July 15 to US$118.1 million, up 31% from 2023.

The first half of 2024 witnessed Vietnam export tea to 18 markets with Pakistan importing the most, but compared to the same period from last year, it endured a 13% fall in volume.

Taiwan (China) was the second largest tea export market with 6,762 tons, up 10% on-year, while China was the third largest market with 6,304 tons, up 207%  on-year in volume.

Other major markets included the US with 4,053 tons, up 62% on-year and Indonesia with 4,831 tons, up 69% from last year.

In ASEAN, in addition to Indonesia, Vietnam also exported tea to Malaysia with 2,862 tons, up 35% over last year’s corresponding period, raking in US$2 million and to the Philippines with 362 tons, down 26% on-year, grossing US$ 0.9 million.

In terms of turnover, tea export value to Pakistan was the highest at US$33.6 million, down 3% over the same period last year, trailed by Taiwan (China) with US$11.3 million, up 14% on-year.

In terms of price, Germany was the market with the highest average tea export price at US$5,360/ton, followed by the Philippines at US$2,651/ton, and Saudi Arabia at US$2,608/ton.

Vietnam, Laos strengthen trade relations

The Vietnam - Laos Trade Fair 2024 (VIETLAO EXPO), the largest annual trade promotion event co-hosted by the two countries’ Ministries of Industry and Trade, is being held in Vientiane from July 25 to 29.

At the opening ceremony on July 25, Vietnamese Ambassador to Laos Nguyen Ba Hung remarked that economic cooperation has become a longstanding foundation in the bilateral relationship and is showing sound development. Vietnam has consistently been one of Laos's top three largest trading partners, with bilateral trade reaching US$928 million by the end of June, an annual increase of 11%.

Hung expressed his hope that their trade volume would exceed the 10% growth target set for this year by their senior leaders at the 46th meeting of the Vietnam-Laos intergovernmental committee.

The diplomat noted that many Vietnamese investment projects in Laos are operating effectively, significantly contributing to the local socio-economic development, creating jobs, raising incomes for thousands of workers, and increasing the Lao state budget's revenue. Looking ahead, the two governments aim to raise the bilateral trade to US$2 billion by maximising the two sides’ potential for commercial cooperation.

The expo features around 250 booths of businesses, with the Vietnamese section comprising 120 standard booths of nearly 80 reputable companies across various sectors such as pharmaceuticals and medical equipment, agro-forestry-fishery and processed foods, textiles and fashion, handicrafts, interior and exterior decoration, and consumer goods, among many others.

Vietnamese businesses participating in the expo aim to promote the national image, boost exports, expand distribution networks in Laos and northeastern Thailand, and showcase the strengths of Vietnamese industries. The event serves as an effective bridge for trade organisations, manufacturers, and investors from both countries to exchange experiences, transfer technology, and explore investment opportunities.

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