Hanoi collected an estimated 220.1 trillion VND (approximately 9.3 billion USD) for the State budget in the first six months of this year (Photo: VNA)

Hanoi collected an estimated 220.1 trillion VND (approximately 9.3 billion USD) for the State budget in the first six months of this year, up nearly 23% from the same period in 2022, the highest increase for the period in the 2012-2023 period.

According to the city’s statistics agency, the figure represents 62.4% of the yearly estimate.

High increases were seen in domestic revenue and revenue from crude oil, at 25.7% and 34.4%, respectively.

Domestic revenue totalled 207.2 trillion VND, accounting for 64% of the yearly estimate, while revenue from crude reached 1.7 trillion VND, 79.9% of estimate.

The State-run business sector contributed 41.6 trillion VND to the State budget, up 39.5% year on year, the foreign-invested sector 13.7 trillion VND, up 22.2%, and the non-State sector 43 trillion VND, up 7%. Collection of personal income tax reduced by 0.6% to 21.3 trillion VND.

Meanwhile, revenue from import-export activities dropped 13.4% to 11.3 trillion VND.

The city’s budget spending in the period was estimated at 39.8 trillion VND, up 26.8% year on year and equal to 37.8% of the yearly estimate.

Of the amount, 14.6 trillion VND was spent on development investment, a yearly increase of 35%, and 25.2 trillion VND was regular expenditure, up 24.4%.

VinFast starts construction of North Carolina EV factory

Vietnamese auto maker VinFast on July 28 held a groundbreaking ceremony of its electric vehicle factory in North Carolina, marking an important step in the company's strategy to expand its market, develop its global electric vehicle brand and become self-sufficient in its supply in North America.

VinFast’s factory project is the first of its kind in North Carolina, and is said to be the biggest-ever economic development project in the state.

The factory has a total investment of 2 billion USD in its first phase, covering an area of 733 ha. In the first phase, the factory will focus on producing electric vehicle models VF 7, VF 8 and VF 9 to meet market demand with an expected capacity of 150,000 vehicles per year. Regarding components for production, priority will be given for suppliers from the US, Vietnam and some countries in the region.

Speaking at groundbreaking ceremony, Le Thi Thu Thuy, CEO of VinFast Auto said that the manufacturing facility in North Carolina is one of VinFast's key projects. When it begins operations, the factory will be VinFast's primary supplier of electric vehicles to the North American market, allowing the maker to optimize production and business activities.

VinFast hopes the construction of the factory in Chatham County will contribute to advancing the clean energy economy in the US and help to support North Carolina’s green mobility strategy, she said.

The factory is expected to start production in 2025. Last year, VinFast was awarded a 1.2 billion USD incentive package from the State of North Carolina for this project, along with critical financial support from the City of Sanford, Chatham County and the Golden Leaf Foundation.

Also on July 28, VinFast Auto Pte. Ltd. and Black Spade Acquisition Co (NYSE: BSAQ) announced that the US Securities and Exchange Commission has declared effective the registration statement on Form F-4 of VinFast in connection with its proposed business combination with Black Spade.

Black Spade has scheduled the Extraordinary General Meeting of Shareholders ("EGM") to approve the proposed business combination with VinFast to be held on August 10, 2023.

The business combination values VinFast at an enterprise value of 27 billion USD and an equity value of 23 billion USD. The transaction is expected to close followed by the listing of VinFast in August 2023, subject to shareholder approvals and other customary closing conditions.

Dennis Tam, Chairman and Co-CEO, Black Spade Acquisition Co, said that the declaration of the SEC effectiveness is a significant step towards the successful completion of the business combination between Black Spade and VinFast.

He said they have diligently sought out a partner that aligns with their vision, and they are confident that this merger will position them for long-term success.

VinFast, a member of Vingroup Jsc, was founded in 2017. It manufactures and exports a portfolio of e-SUVs, e-scooters and e-buses across Vietnam, North America, and, soon, Europe.

The company operates a state-of-the-art automotive manufacturing complex in Hai Phong that boasts up to 90% manufacturing automation and an annual production capacity of up to 300,000 units per year in phase 1.

Black Spade, listed on the NYSE American, was founded by Black Spade Capital, which runs a global portfolio consisting of a wide spectrum of cross-border investments, and consistently seeks to add new investment projects and opportunities to its portfolio.

Tourists to Hanoi expect to reach 14.7 million in seven months

The number of tourists to Hanoi in the first seven months of this year is expected to reach 14.7 million, an increase of 38.7% compared to the same period in 2022, the municipal Department of Tourism reported.

Of the figure, the number of international arrivals is forecasted to hit 2.43 million, up 5.7 times year on year while domestic tourists are estimated at 12.3 million, a rise of 20.6%.

Total revenue from tourism in the period is approximated at 53.7 trillion VND (2.3 billion USD), a year-on-year expansion of 68.3%.

The average occupancy of local hotels in the reviewed period is estimated to reach 57.3%, a hike of 25.5% year on year.

In July alone, the number of international arrivals to the capital city is estimated at more than 380,000, 2.5 times higher compared to the same period last year and an upturn of 19.4% compared to the previous month.

The number of domestic holiday-makers is estimated at 2 million, a rise of 11.1% year on year, and 5.3% compared to June.

Total revenue tourism in the month is reckoned to reach more than 8.6 trillion VND, a gain of 37.7% year on year and 9.8% compared to previous month.

One of the factors attracting tourists to the capital city is the much-anticipated concert of Black Pink, the Republic of Korea’s girl group phenomenon, who are scheduled to perform at My Dinh stadium for two nights on July 29 and 30.

Meanwhile, the average occupancy of hotels in July is estimated to reach 60.8%, a surge of 19.2% year on year but a decrease of 5.1% compared to the month before.

In the coming time, the department will cooperate to organise events to promote tourism in the locality, such as a contest of tourism photos and the Hanoi tourism souvenir festival in the third quarter, and an Ao dai festival in the fourth quarter, among others.

In addition, the department will also strengthen collaboration and promotion activities to attract international tourists in key markets such as Northeast Asia, France, the EU, the US, India and China.

Cashew exports remain a silver lining

Amid global demand slump, cashew remains a silver lining of the overall cloud of export, heard a conference on cashew market outlook taking place in Ho Chi Minh City on July 26.

Vietnam Cashew Association (VINACAS)’s Standing Vice President Bach Khanh Nhut said from the remaining months of 2023 until the first quarter of 2024, the industry will continue to face many hurdles. In the context that the global economy continues to decline, cashew will not an essential commodity and, as a result, consumer demand will continue to decline.

Nhat also said that in the optimistic scenario, the cashew industry will grow thanks to the consumption of cashew kernels, when the demand stimulus is effective, the inventory level in major consuming markets including the US and Europe will decrease, pushing the demand at the end of the year. 

However, VINACAS has adjusted the target of cashew nut export turnover in 2023 to 3.05 billion USD, a decrease of 50 million USD compared to the previously set plan and 750 million USD lower than the target of the Ministry of Agriculture and Rural Development (MARD) for the industry from the beginning of the year.

Chairman of VINACAS Pham Van Cong said that the association has recommended the State continue to support the promulgation of appropriate mechanisms and policies to import cashew kernels to ensure fairness for domestic processing enterprises.

Besides, it has suggested ministries, branches and localities to create the most favourable conditions for cashew businesses, especially in terms of bank credit, tax and customs policies, Cong added.

VINACAS has also proposed the Ministry of Industry and Trade (MOIT) to introduce industrial promotion programmes, support enterprises to invest, improve technology, equipment, digital transformation, and to upgrade processing facilities while supporting and encouraging businesses to expand market, investing in deep processing, and diversifying exports.

It has requested the MARD to early conduct survey, assessment of cashew growing areas, and introduce mechanisms to support Vietnamese cashew farmers. In addition, ministries, branches and diplomatic and trade agencies have been requested to strengthen information on markets, customers, consumption trends and trade risks in foreign markets and support cashew businesses when there are unforeseen difficulties that may occur.

In the first six months of 2023, the industry exported over 279,000 tonnes of cashew nuts of all kinds with a turnover of about 1.6 billion USD, up 9.49% in volume and 7.65% in value. However, the average export price of cashew kernels was only about 5,717 USD per tonne, down 1.73% over the same period last year.

In the reviewed period, Vietnamese cashew enterprises imported about 1.44 million tonnes of raw nuts worth about 1.8 billion USD, up 19.79% in volume and 5.16 % in value. The average import price of raw cashew nuts decreased by 11.34% to only 1,251 USD per tonnes.

Can Tho city, RoK’s SK Group eye cooperation in green economy

Vice Chairman of Can Tho city People's Committee Duong Tan Hien and representatives of local departments and agencies on July 26 met with a delegation from SK Group led by senior advisor Lee Dong Uk, discussing pilot projects under the city’s green growth strategy.

According to Lee, the group is supporting the Vietnm’s Ministry of Planning and Investment to study green growth in Vietnam and focusing on seeking investment opportunities in Can Tho as well as developing projects in the Mekong Delta. The official added that the group is planning to pilot the application of hydrogen in power generation and green transport in Can Tho and to deploy a pilot project of heavy-duty hydrogen-powered trucks in the coming time.

Along with a Can Tho-based centre that promotes the linkage among agricultural production, processing, and consumption in the Mekong Delta, SK Group is also eying zero waste projects in this hub.

Vice Chairman of the Can Tho People's Committee Duong Tan Hien spoke highly of SK Group for its resources and experience in different business fields, especially in the green economic development, and suggested the group invest in the Vinh Thanh Industrial Park project as a model of a green industrial park.

Can Tho will create favourable conditions for SK Group to study and implement pilot projects on hydrogen, he said.

ASEAN Ceramics Expo 2023 to take place in Hanoi

The ASEAN Ceramics Expo 2023, Southeast Asia’s leading international exhibition of machinery, technology, and materials for manufacturing white-ware, heavy clay and advanced ceramics, is scheduled to be held in Hanoi from November 28 - 30.

Nguyen Huu Tho, deputy director of the Department of Building Materials under the Ministry of Construction, underscored the significance of the event in terms of accelerating innovation, cooperation, and growth in the ASEAN region, while also devising future orientations for the ceramics industry in the region in general and Vietnam in particular.

Michael Wilton, CEO and managing director of MMI Asia Pte Ltd, emphasised that there are plenty of opportunities for the sector in Southeast Asia, including Vietnam, to boost exports to the Asia-Pacific region, the US, and various European markets.

He stressed that the company has committed to showcasing cutting-edge machinery and equipment, technologies, materials, and production methods as a way of supporting the further development and advancement of the industry in the region.

The event is to attract more than 200 companies and brands from around the world and over 3,000 visitors. In addition, a series of seminars will also be held on the occasion, along with field trips to ceramics factories.

The event takes place annually in Thailand and Vietnam on alternate years, and this is the 7th edition.

ASEAN Ceramics provides the ASEAN region access to the world’s leading technologies, equipment, solutions, know-how and best practices available in the market. Suppliers to the industry will meet, network and showcase their expertise to the key buyers from the region, and strengthen or establish their foothold in the world’s most dynamic region for the ceramics industry.

Since 2013, ASEAN Ceramics has been attracting more than 4,000 international exhibitors, buyers, conference speakers and delegates annually.

Vietnam attracts nearly US$16.24 billion in FDI over seven-month period

Vietnam attracted nearly US$16.24 billion in foreign direct investment (FDI) during the past seven months of the year, as reported by the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.      

As of July 20, the total newly and adjusted investment capital and capital contribution for share purchases by foreign investors reached roughly US$16.24 billion, marking an upturn of 4.5% against the same period from last year.

Throughout the reviewed period, nearly US$7.94 billion was injected into 1,627 new projects, representing an increase of 75.5% in terms of the number of projects and 38.6% in terms of the number of capital against last year’s corresponding period.

Furthermore, 736 projects registered to adjust their investment capital, with the additional capital reaching nearly US$4.16 billion, up 27.1% in relating to the number of projects and down 42.5% in capital on-year.

According to details given by the agency, 1,627 transactions of capital contribution and share purchases made by foreign investors were recorded in the period with a combined value of US$4.14 billion, simultaneously marking a fall of 10.6% in number, whilst also being a rise of 60.7% in capital.

In line with this, a significant positive sign is that the disbursed capital stood at an estimated at US$11.58 billion in the opening seven months, a slight annual increase of 0.8%. The move therefore demonstrates the Government's drastic solutions for providing effective support and removing difficulties for enterprises in the process of capital disbursement.

It is worth noting that for the first time this year, the total registered investment capital soaring by 4.5% on-year after witnessing a consecutive decrease over six months.

Most notably, the growth rate of the number of new projects is nearly double that of total investment capital.

These figures indicate that foreign financiers continue to place their trust in the local investment environment as they continue making new investment decisions in the Vietnamese market.

The majority of new investment projects focus on provinces and cities such as Hanoi, Hai Phong, Ho Chi Minh City, Bac Giang, Binh Duong, Bac Ninh, and Dong Nai.

Financiers from Asia still account for a large proportion, including six traditional investment partners, such as Singapore, Japan, China, the Republic of Korea, Hong Kong (China), and Taiwan (China), which made up 78.2% of the country’s total investment capital in the reviewed period.

Vietnamese rice prices rise sharply after India’s rice export ban

Vietnam’s rice export prices have continuously set new records over recent times and exceeded the US$550 per tonne mark following India's official ban placed on rice exports.      

This marks the latest development after India, the world's largest rice exporter, issued a ban on the export of non-basmati white rice from July 20.

Specifically, Vietnamese 5% and 25% broken rice was offered at between US$548 and US$552, respectively, on July 26, up US$5 per tonne compared to the previous day, according to the Vietnam Food Association (VFA).

This is widely considered to be the highest export price offered by Vietnamese rice enterprises since July 2021.

However, in comparison with rice from regional competitor Thailand, the Vietnamese export price on July 26 was US$40 per tonne lower than the Thai for the 5% broken price, but US$6 per tonne higher than the Thai for the 25% segment.

Pham Thai Binh, general director of Trung An Hi-tech Agriculture Joint Stock Company, attributed the export price hike to India's recent rice export ban, which has prompted importers to eye other suppliers, including Vietnam. 

Nguyen Dinh Tung, general director of Vina T&T Import-Export Company, pointed out that the Indian ban coupled with the Russia-Ukraine conflict may lead to a shortage of supply sources occurring in the global market.

The move is therefore anticipated to create a wealth of opportunities for Vietnamese firms to sign new export deals and expand their export markets moving forward.

Meanwhile, amid global uncertainties, economic expert Dinh Trong Thinh warned that local firms must be cautious regarding food prices as they may go up or down, asking them not to hold the price or hoard rice to wait for the price to increase to avoid risks.

He emphasised that although Vietnam is a large food producer and has relatively high reserves, it is important to ensure national food security to avoid a facing shortage of food in the future.

The Ministry of Agriculture and Rural Development forecasts that Vietnam will export about 7.2 million tonnes of rice worth more than US$4 billion this year – a historic record value.

Coal companies announce strong profit results in Q2

Đèo Nai Coal JSC (TDN) reported a profit of VNĐ15.6 billion (over US$659,000) in the second quarter of 2023, 38 times higher than the figure of more than VNĐ400 million in the same period last year. In the first six months of 2023, the company achieved a profit of VNĐ26.4 billion, an increase of VNĐ20.1 billion compared to 2022.

The main reason was that fuel prices decreased by 15 per cent compared to the same period in 2022, and the company's production costs decreased, leading to higher profits.

Đèo Nai Coal is an enterprise that exploits and collects hard coal, lignite, and supports mining and ores, around 65 per cent of its invested capital comes from the Vietnam National Coal - Mineral Industries Group (Vinacomin).

Hà Tú Coal (THT) achieved profit after tax in Q2 of VNĐ28.04 trillion, an increase of VNĐ21.7 trillion compared to 2022. In the first six months of 2023, profits reached VNĐ44 billion.

Núi Béo Coal (NBC) achieved an after-tax profit in the second quarter of 2023 of VNĐ23.2 trillion, an increase of VNĐ15.2 trillion compared to the same period in 2022. Profit after tax in the first six months of 2023 increased by VNĐ19.37 trillion compared to 2022.

The company said that coal consumption improved in the second quarter of 2023, leading to higher profits.

Hà Lầm Coal (HLC) reported a profit after tax in the second quarter of VNĐ24 trillion, up VNĐ13 trillion compared to last year. Profits reached VNĐ56.1 trillion in the first six months, while in the same period in 2022 it only reached VNĐ28.78 trillion.

As for Mông Dương Coal (MDC), profit after tax in the second quarter of 2023 reached VNĐ15 trillion, VNĐ9 trillion higher than the same period last year.

However, there are still some coal enterprises reporting losses in the second quarter of 2023.

In the second quarter of 2023, output of Cao Sơn Coal (CST) decreased by 1.7 million tonnes over the same period, causing revenue to decrease by 49 per cent over the same period.

The same thing happened with Cọc Sáu Coal (TC6), which recorded a sharp decline in revenue of 33 per cent over the same period last year.

Along with the increasing profit momentum, since the beginning of this year, the stock prices of many coal enterprises have also continuously increased.

The share price of Đèo Nai Coal in early 2023 hit VNĐ7,000 per share, but now it has increased to over VNĐ11,000 per share.

The share price of Hà Tú Coal Joint is currently around VNĐ13,000 per share, while earlier this year the company was trading at VNĐ8,000 to VNĐ9,000 per share.

For Núi Béo Coal, shares reached VNĐ8,000 to VNĐ10,000 per share in January and are now trading at over VNĐ13,000 per share.

The price of Hà Lầm Coal currently fluctuates from VNĐ11,000 to VNĐ12,000 per share, but at the beginning of this year, it was only around VNĐ8,000 to VNĐ9,000.

The stock price of Đèo Nai Coal also witnessed the same process. Currently, the average price is over VNĐ11,000 per share, but at the beginning of this year the price fluctuated around VNĐ7,000 to VNĐ8,000 per share. 

Cashew export target cut

With exports expected to remain mired in difficulties for the rest of the year, the cashew industry has lowered its export target for this year to US$3.05 billion, $50 million and $750 million below its own previous target and the Ministry of Agriculture and Rural Development’s.

Speaking at a conference held by the Vietnam Cashew Association (VINACAS) in HCM City to review the industry’s performance this year on Wednesday, Bạch Khánh Nhật, VINACAS’s deputy chairman, said cashew exports grew in the first half despite all the difficulties.

Over 279,000 tonnes were exported for US$1.6 billion, a year-on-year increase of 7.65 per cent, he said.

The average export price was down by 1.73 per cent to $5,717 per tonne.

Nhật said the industry has been experiencing difficulties posed by geopolitical crises, monetary tightening by central banks globally, inflation, lower demand in key markets, and consumers tightening their purse strings.

Buyers mainly placed spot contracts for small volumes in the first half, he said.

The positive factor is that cashew prices are competitive with those of other nuts, and globally retailers are carrying out promotions to stimulate demand, he said.

In the worst case, VINACAS assumes the global economy will continue to slow further, and cashew demand among end consumers will continue to decrease, and importers in many markets will not be in a hurry to buy cashew again until they see an increase in demand.

So its executive board has lowered the export target to $3.05 billion.

Phạm Văn Công, its chairman, said to boost exports to key markets including those that have free trade agreements with Việt Nam, it is important to strengthen promotions so that consumers know about Vietnamese cashew.

The association said the Ministry of Industry and Trade should help the industry promote its products at international fairs.

The association will organise a trade promotion programme in Japan at the end of this year, the International Cashew Conference in Quảng Bình in the first quarter next year and a trade promotion programme in China next year, and it wants the ministry’s support for them under a national promotion programme.

It also called for policies to help enterprises improve technologies and equipment, speed up digital transformation, invest in intensive processing, grow organic cashew, make cashew shell oil, and diversify exports.

Since Việt Nam still imports large volumes of raw cashew for processing, the association called for conducive mechanisms and policies, especially in terms of bank credit, tax and customs.

Nguyễn Minh Họa, the association’s deputy chairman, said processing firms should no longer stockpile raw cashew like before because availability is now abundant.

So they need to carefully study the market and make appropriate plans for imports, he added. 

Authority pledges efforts to help Vietnamese carriers retain slots

The Civil Aviation Authority of Việt Nam (CAA) said that it would give its best efforts to negotiate to keep slots at foreign airports for Vietnamese carriers.

CAA Director Đinh Việt Thắng said that Vietnamese carriers were struggling with slot retention in a declining market. Thắng said that some airlines must operate flights with low seat occupancy to keep the slots.

The aviation market has not fully recovered to the pre-pandemic level, Thắng said, adding that airlines have struggled to retain slots at foreign airports. Carriers could keep slots if they ensured the required slot usage rate, which is a challenge due to low market demand.

Thắng said that CAA was working with foreign aviation authorities to provide support to airlines based on the principle of reciprocity.

However, there are markets whose airlines do not operate flights to Việt Nam such as Australia, India and the UK.

In difficult cases which go beyond the capacity of the CAA, it will propose diplomatic negotiations at higher levels.

In the domestic market, airlines must ensure a slot usage rate of at least 80 per cent to be able to retain slots for the next scheduling season under the established regulations. Flexible management must wait for amendments to the established regulations.

Some airlines proposed to swap slots of routes which were not used up, such as to China, for routes with higher demand such as to the South Korea. The proposal sounded reasonable, he said.

He said the CAA would study the proposal and send it to the Ministry of Transport for appropriate amendments.

The CAA’s statistics showed that the aviation market handled about 34.7 million passengers in the first half of this year, up 49.6 per cent against the same period last year. Of the figure, international passengers totalled 14.7 million, five times higher than the same period in 2011 and equivalent to 73.5 per cent of the same period of 2019.

The total cargo volume was estimated at 483,000 tonnes, dropping by 26 per cent.

According to Đinh Việt Phương, chief executive officer at Vietjet, airlines are facing difficulties because the number of flights increased but the number of passengers did not. Seat ultilisation ratio decreased on low purchasing power and low demand. The number of international visitors increased compared to 2022 but had not reached the pre-pandemic level.

The travelling demand from Northeast Asia was below expectations. Countries like China and Japan are promoting domestic tourism.

Some flights from Japan had occupancy rates of only 40 per cent, even though it is meant to be peak season.

Phương said even though the number of passengers has decreased, airlines still have to fly regularly to keep their slots in foreign airports.

Slots are a resource, but the management of them should be flexible and efficient, Phương said.

According to Vietnam Airlines, the seat occupancy ratio of international flights was only around 67-68 per cent this year, 10 per cent lower than in 2019.

Besides, airlines also faced other difficulties from rising fuel cos and a slump in value of the Vietnamese đồng against the US dollar. 

Long An to have 51 industrial parks by 2030

The Cửu Long (Mekong Delta) province of Long An plans to establish 17 new industrial parks, bringing its total to 51 by 2030, with a total area of nearly 12,500ha, according to the provincial People's Committee.

The 17 newly established industrial parks will be located on an area of nearly 3,200ha.

This will make Long An the province with the second highest number of industrial parks in the country after Bình Dương. The move is expected to create favourable conditions and significant investment opportunities.

Long An is also planning 72 industrial clusters with a total area of nearly 4,000ha during this period. The province is also focused on technological innovation, productivity improvement, and effective resource management to achieve an average annual industrial output growth rate of about 13 per cent from now to 2030.

Long An Province is prioritising the development of processing, manufacturing and renewable energy industries; manufacturing metal and prefabricated metal products, mechanical engineering, food processing, electronic products, chemicals and chemical products.

Long An has so far this year lured foreign capital worth over US$470 million in 74 projects.

Total FDI projects in this province have reached 1,200 with their value surpassing $10.4 billion.

Long An, located in the southern key economic region, has attracted many major investors, including the Vietnam-Singapore Industrial Park JV Co. Ltd of Singapore, and Sojitz of Japan.

Last year, the province posted an 8.46 per cent growth in gross regional domestic product and contributed VNĐ22 trillion ($925 million) to the State budget, the highest to date. It also attracted VNĐ23.8 trillion and $732 million worth of domestic and foreign investment, respectively. 

Deposit interest rates at all banks stand below 8%/year

Deposit interest rates have continued falling to below 8 per cent per year at all banks in Việt Nam as the State Bank of Việt Nam (SBV) aims to maintain a stable macroeconomic landscape and promote lending.

A survey conducted by Việt Nam News found that nearly 20 commercial banks have lowered their deposit interest rates by an average 0.2 per cent per year in July, with ten banks reducing their rates by 0.5 per cent to 0.8 per cent per year.

The highest listed interest rate for a 13-month deposit is 7.8 per cent per year at VietBank and SaigonBank.

Other private banks offer rates ranging from 7 per cent to 7.7 per cent per year for a 12-month term.

State-owned banks and private banks such as TPBank, VPBank, LPBank, Techcombank, DongABank, ACB, SeABank, Sacombank, VIB, and MB have the lowest deposit interest rates, ranging from 6 per cent to below 7 per cent per year.

The central bank has set the ceiling rate for deposit interest rates for terms shorter than six months at 4.75 per cent per year.

The constant rate cuts show banks’ efforts to reduce deposit interest rates and may lead to further cuts in lending rates.

The State Bank of Việt Nam (SBV) has continuously asked credit institutions to minimise costs and stabilise lending interest rates to support business recovery and development.

The central bank set this year’s credit growth target for banks at 11 per cent, but total outstanding loans in the economy increased by 3.36 per cent as of June 15 compared to the end of 2022.

However, this growth rate is slower compared to previous years. 

HCM City’s consumer price index increases slightly in July

Ho Chi Minh City recorded a month-on-month increase of 0.15% in its July consumer price index, the municipal Statistics Office said on July 27.

Three of the 11 commodity groups witnessed price decreases, namely post and telecommunications services (down 0.28% from last month), housing and construction materials (0.18%), and education (0.01%).

Prices of seven groups increased from June, including fresh seafood (up 0.99%), transportation (0.30%), and food and catering services (0.32%).

The dining-out services rose by 0.60% due to a hike in the cost of input materials.

As a result of a rise in consumer demand, beverage and tobacco, and garment and footwear groups saw prices up by 0.17% and 0.31%, respectively.

The price of drugs and medical services group remains unchanged.

According to the office, the gold price index in July rose by 0.07% and the US dollar, 0.55% compared to the previous month.

Czech Skoda cars to hit Vietnamese market in September

The first completely-built-up (CBU) Skoda cars, imported and distributed by Vietnam’s distributor and assembler TC Motor, will soon hit the local market, the local media reported.

The Czech automaker Skoda wants to establish a presence in Vietnam and other ASEAN markets. The plan entails bringing the CBU Skoda Kodiaq and Karoq models from the Czech Republic to Vietnam in 2023, with the Skoda Superb and Octavia following suit in 2024.

Moreover, the electric-vehicle Skoda ENYAQ iV is expected to be offered to local customers by 2025.

Simultaneously, the Skoda Kushaq and Slavia models will be assembled at the under-construction Skoda auto facility in Vietnam as part of the partnership between the Czech automaker and TC Motor. The 36.5-hectare factory project is located within the Thanh Cong Viet Hung Automotive Supporting Industry Complex in the northern province of Quang Ninh.

It is equipped with high-level automation that adheres to European standards and has a designed capacity of producing up to 120,000 vehicles annually.

VINACAS cuts cashew export target by US$50 million

The Vietnam Cashew Association (VINACAS) has adjusted down its 2023 cashew export target by US$50 million to US$3.05 billion.

During a conference on the cashew market development held on July 26 in HCMC, VINACAS expressed concerns about potential woes, particularly in the final quarter of 2023 and the first quarter of 2024.

“The industry’s growth could be at risk if the global economic downturn continues, leading to reduced consumer demand for non-essential commodities like cashews,” it said.

Despite these difficulties, cashews remain a critical agricultural export earner for Vietnam, displaying positive growth and securing a significant position in the agricultural export landscape.

VINACAS presented an optimistic scenario, highlighting growth potential due to increased cashew consumption and depleted inventory in major consumer markets like the U.S. and Europe, which can drive up demand towards the end of the year.

To support domestic processing businesses and maintain a level playing field, VINACAS’s Chairman Pham Vang Cong called on the Government to consider and implement suitable import policies for cashews. The association emphasized the importance of collaboration between ministries, departments, and localities to provide support in areas such as access to bank loans, taxation, and customs for cashew enterprises.

VINACAS proposed an aggressive export promotion strategy, including exploring new markets, enhancing product quality, and establishing a distinctive Vietnamese cashew brand.

Vietnam’s free trade agreements with key markets provide an opportunity for targeted marketing efforts to raise awareness and attract consumers to Vietnamese cashew products.

The association also recommended the Ministry of Industry and Trade develop programs supporting investments in technology, equipment, and digital transformation for cashew enterprises.

Despite being a major global cashew producer, Vietnam’s cashew output falls short of meeting both domestic consumption and export demands.

VINACAS stressed the importance of stable and long-term planning, surveying, and evaluating cashew cultivation regions, while also strengthening market intelligence efforts to support cashew enterprises facing challenges in foreign markets.

In the first six months of 2023, Vietnam exported over 279,000 tons of cashews worth around US$1.6 billion. The figures represent respective growth of 7.65% and 9.49% compared to the same period last year.

Livestock industry prepares for pork supply stabilization at year end

Deputy Director Pham Kim Dang of the Livestock Production Department under the Ministry of Agriculture and Rural Development announced a price recovery for live pigs in yesterday’s meeting on solutions for sustainable pig raising and production. 

Accordingly, the price of live pigs in March 2023 was VND49,000 per kilo (US$2.07) on average. This price began to increase in April, and reached VND58,000 – 63,000 a kilo ($2.45 – 2.66). It is now at VND68,000 per kilo ($2.87).

In the first 6 months of this year, the quantity of pigs nationwide rose by 2.5 percent compared to this time last year. The total pork output is estimated at 2.3 million tonnes, a development of 6.5 percent compared to this time the previous year.

Deputy Minister of Agriculture and Rural Development Phung Duc Tien stated that normally, food prices at year-end months go up by 10 – 20 percent. Therefore, the livestock industry has to actively increase the number of cattle early to ensure a stable meat supply for the market at the end of the year and the Lunar New Year holiday.

The livestock industry and agriculture sector in general must maintain the growth rate while keeping the consumer price index static to avoid negative impacts on the national economy and society.

In related news, yesterday, Ninh Hai District People’s Committee (in Ninh Thuan Province) informed that the price of fresh shallot at farm is at VND40,000 – 45,000 per kilo ($1.69 – 1.9), which is the highest since the beginning of this year. In previous years, shallot price used to fluctuate a lot to the minimum of only VND12,000 a kilo ($0.51), not to mention a low yield due to drought. Therefore, many farmers decided to change to other crops.

At present Ninh Hai District has the largest surface area for shallot growing in Ninh Thuan Province, with nearly 680ha.

HCMC keen on attracting Korean, Singapore visitors

HCMC has signed many cooperation agreements with South Korea on strengthening tourism promotion between the two countries in general, South Korea and the city particularly.

The HCMC Tourism Association recently had a working session with South Korea’s Chungcheongnam-do Province to promote typical cultural and tourism products of the southern metropolis to Korean people.

Singapore Tourism Board previously signed cooperative agreements with travel companies, such as Vietravel and Ben Thanh Tourist to attract Vietnamese visitors to Singapore.

The agreements will focus on developing MICE tourism, carrying out tourism marketing campaigns, providing financial support for destinations advertising and marketing in Singapore, and launching promotional programs to draw Vietnamese visitors.

Vietravel plans to bring 15,000 Vietnamese visitors to Singapore this year while Ben Thanh Tourists has offered a chain of new entertainment tours and promotional programs to travelers.

Pulp and paper manufacturers tangle with approach to emissions inventories

Many pulp and paper manufacturers are continuing to seek effective tools for greenhouse gas inventories and going green.

At a training workshop earlier this month on greening the paper sector in Hanoi, organised by the Ministry of Natural Resources and Environment’s (MoNRE) Department of Climate Change (DCC) together with Japan International Cooperation Agency, hundreds of questions from manufacturers were sent to the organising board over how to approach effective tools for greenhouse gas (GHG) emission mitigation and inventories.

The most common concerns were the investment cost for segments such as solar power rooftops; the time to recoup the capital; and types of coal to save energy with low emissions. The pros and cons of biomass electricity, an alternative for fossil fuels, were also discussed.

The workshop found that firms have little knowledge of GHG inventories, and do not know whether they can build up their reports on inventories or get support from intermediate parties. They also have questions on how to determine direct and indirect emission sources from their facilities and how to collect enough data.

Pulp and paper manufacturers expect a specific guide on GHG inventories and international experience from pioneering manufacturers on financial and technical barriers during the process.

Lack of knowledge may impact the progress of reporting GHG emissions data to the Ministry of Construction. According to current regulations on such emissions and protection of the ozone layer, cement manufacturers had to submit GHG emission data before April this year so that the ministry could conduct GHG inventory figures to cover 2022. From 2024, businesses will be responsible for this work every other year.

According to Decision No.01/2022/QD-TTg on sectors and establishments emitting GHGs subject to inventory, 69 pulp and paper facilities in Vietnam must implement such an inventory.

Dang Hong Hanh, a technical expert from the Support for Planning and Implementation of the Nationally Determined Contributions in Vietnam, said implementing and reporting GHG emissions inventory is a new obligation and goes beyond normal business operations.

GHG inventory in terms of the pulp and paper sector is required to be implemented drastically because it is one of the most energy-intensive industries. In Vietnam, 96 per cent of facilities in this sector are small or medium in size, raising concerns about emissions, Hanh said.

Furthermore, these manufacturers face reputation damage if the companies do not change to a more sustainable path.

The pulp and paper industry is among the top five most energy-intensive industries globally and is the fourth-largest industrial energy user. This industry accounts for approximately 6 per cent of global industrial energy use and 2 per cent of direct industrial CO2 emissions, according to the International Energy Agency.

By 2022, Vietnam’s paper industry had more than 500 manufacturing enterprises: over 20 large-scale enterprises account for 65 per cent of paper output and almost 500 small- and medium-capacity enterprises account for approximately 35 per cent of output, cited the Vietnam Pulp and Paper Association.

The production capacity of the whole industry in 2022 reached about 8.2 million tonnes. Actual production capacity was 5.7 million tonnes and the consumption quantity is 6.8 million tonnes, raising concern about environmental pollution.

Luong Quang Huy, head of the GHG Emission Reduction and Ozone Layer Protection at the DCC said, “In order to support manufacturers in GHG inventories progress, the MoNRE is completing circulars on technical regulations for measuring, reporting, and appraising emission reductions and related inventory. We have completed a circular for the waste management sector, and circulars for many other sectors will also be promulgated soon.”

Vietnamese pellet market experiencing a reshuffle

The alteration of import markets is forcing Vietnam’s pellet manufacturers to reevaluate their overall competitiveness.

Increasing pellet exports to the EU is a goal for many Vietnamese groups. Biomass Fuel Vietnam Co., Ltd. will export pellets to the EU market in the “near future,” according to the company’s general director, Eisuke Nomura. Biomass Fuel Vietnam has a factory in the central province of Nghe An, from which it exports about 160,000 tonnes annually to the Japanese market.

The EU is not as favourable for exporting pellets as Japan and South Korea, which import up to 95 per cent of Vietnam’s pellets. The raw materials for the manufacturing of pellets, which are generally burned for heat, although they may also be used to generate process steam or electricity, must come from plantations with Forest Stewardship Council (FSC) certification, according to Nguyen Kim Vui, the executive director of Dung Quat Energy Corporation’s pellet factory in the south-central province of Quang Ngai.

According to information published on the FSC website, as of March 2022, Vietnam possessed 53 FSC-certified units covering a total forest area of over 226,000 hectares.

“The next challenge is the quality of wood pellets,” Vui explained. “EU pellet standards are stricter than those for exports to Japan and South Korea.”

The Japanese market demands 3 per cent ash content, whereas the EU requires less than 1 per cent. Vui said his company is attempting to sign contracts for the purchase of raw materials from FSC-certified afforestation facilities, ensuring the source of raw materials for the annual export of 240,000 tonnes of pellets to the EU, Japan, and South Korea.

Forest Trends and Vietnamese wood associations noted in a report on the issue, published at the beginning of July, that the Japanese market is comparable to the EU market in terms of raw material regulations and that FSC certification is required. Vietnam will export about one million tonnes of pellets to Japan in 2023, a modest amount compared to the country’s annual demand of eight million tonnes.

According to a previous report, some Japanese customers engage in short-term contracts with certain Vietnamese suppliers; the price is around $125 per tonne, and the pellets’ quality is comparable to those exported under long-term contracts.

According to statistics from the General Department of Vietnam Customs, the number of Vietnamese firms exporting pellets increased significantly from 123 in 2020 to 152 in 2022. To Xuan Phuc, managing director of Forest Trends, said the number of businesses exporting to Japan is lower than that of South Korea.

Due to the consequences of rising raw material prices in Vietnam, the export price for pellets from South Korea rose to $110 per tonne at the beginning of this month, an enormous rise from April, when it was only $90 per tonne. “The purchasing method of South Korean buyers has changed significantly. Rather than purchasing pellets in bulk, they are dividing the bidding batches and purchasing in smaller monthly amounts to alleviate price pressure,” Phuc said.

Some manufacturers informed him that it is getting harder for Vietnamese pellet producers when the South Korean government advocates expansion of supply, including imports from Russia. Currently, a number of privately owned, small-scale power facilities in South Korea import pellets from Russia. Prior to the Russia-Ukraine conflict, Russia exported around three million tonnes of pellets annually, primarily to the EU.

Some Russian pellet makers tolerate low-priced sales in order to gain entry into the market. According to Phuc, the possibility of growing the market share of Russian pellets in South Korea will be limited if sanctions are imposed on Russian exports, causing state-owned energy companies and major South Korean firms to refuse to use these pellets.

Dr. Lee Soo Min, a senior research specialist at the Korean National Institute of Forest Science (KNIFS), stated in March that two wood pellet factories utilising plantation materials, with a designed capacity of 300,000 tonnes per year, will soon go into operation, while about 20 other factories are already in operation, producing about one million tonnes per year.

According to Lee, this outcome is far from self-sufficient but presents the potential for countries to export pellets. “Vietnam has the chance to boost its market share in the South Korean market; however, numerous suppliers have reservations that if they do not drastically alter the calibre of products, they will not be able to keep up with emerging sources such as Indonesia and Malaysia,” Lee said.

According to KNIFS data, Vietnam was South Korea’s primary pellet supplier in 2022 and accounted for 80 per cent of its pellet imports, with 2.2 million tonnes. Vietnam, the world’s second-largest pellet producer after the US, exported 4.9 million tonnes of pellets in 2022, worth $790 million, according to the General Department of Customs.

Plan approved to implement seaport development planning

Deputy Prime Minister Tran Hong Ha has approved a plan to implement the national Seaport System Development Master Plan in the period 2021-2030 with a vision to 2050.

The plan identifies tasks, solutions, and lists specific projects to be implemented in each period from now to 2030.

It identifies methods, resources, and coordination mechanisms among ministries, departments, branches, and People's Committees of provinces and cities in implementation.

The plan also provides orientations for ministries, agencies, and People's Committees of provinces and cities in formulating their own plans for the implementation of the plan in each period.

It sets three major tasks to implement the master plan relating to performing planning procedures, completing legal framework on maritime issues, and developing infrastructure. 

Policies and solutions to implement the master plan include those to attract capital for infrastructure development, human resources development, and science and technology development. The solutions must ensure social security, environmental protection, and national defense – security.

The total investment needed for the scheme until 2030 is about 313 trillion VND (13.7 billion USD).

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