Vietnamese coal enterprises prospered in the second quarter due to the high demand for the resource for Vietnamese coal enterprises

Deo Nai Coal JSC (TDN) reported a profit of 15.6 billion VND (over 659,000 USD) in the second quarter of 2023, 38 times higher than the figure of more than 400 million VND in the same period last year. In the first six months of 2023, the company achieved a profit of 26.4 billion VND, an increase of 20.1 billion VND compared to 2022.

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

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

Ha Tu Coal (THT) achieved profit after tax in Q2 of 28.04 trillion VND, an increase of 21.7 trillion VND compared to 2022. In the first six months of 2023, profits reached 44 billion VND.

Nui Beo Coal (NBC) achieved an after-tax profit in the second quarter of 2023 of 23.2 trillion VND, an increase of 15.2 trillion VND compared to the same period in 2022. Profit after tax in the first six months of 2023 increased by 19.37 trillion VND compared to 2022.

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

Ha Lam Coal (HLC) reported a profit after tax in the second quarter of 24 trillion VND, up 13 trillion VND compared to last year. Profits reached 56.1 trillion VND in the first six months, while in the same period in 2022 it only reached 28.78 trillion VND.

As for Mong Duong Coal (MDC), profit after tax in the second quarter of 2023 reached 15 trillion VND, 9 trillion VND 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 Son Coal (CST) decreased by 1.7 million tonnes over the same period, causing revenue to decrease by 49% over the same period.

The same thing happened with Coc Sau Coal (TC6), which recorded a sharp decline in revenue of 33% over the same period last year.

EVN suggests second revision of retail electricity prices

The Vietnam Electricity (EVN) Group has suggested the Government, ministries and agencies allow it to revise up retail electricity prices in the coming time to ensure a balance in its production and business operations, heard a seminar held by the Vietnam Energy Association in Hanoi on July 28.

According to EVN, if electricity payments are made in accordance with the contracts, it is projected to face cash flow shortages from July to December 2023. To ensure cash flows for purchasing coal, oil, and gas for electricity production, EVN currently owes money to power generation units.

In the coming time, there is a possibility that EVN may not have sufficient funds to pay for electricity purchases from power generation units, which could impact the continuous operations of power plants and consequently affect the supply of electricity.

EVN suggested the Government consider amending or replacing the Prime Minister’s Decision No. 24/2017/QD-TTg which regulates the mechanism for adjusting the average retail electricity prices.

It also proposed the Government instruct the State Bank of Vietnam to provide interest-free loans for EVN to pay electricity bills to power generation units, thus ensuring timely purchase of raw materials for power generation.

The Government and relevant ministries, agencies were suggested to allow EVN to make temporary payments for electricity purchases at a suitable level based on EVN's financial capacity until retail electricity prices are adjusted promptly and fully reflect all costs.

Long An province calls for Japanese investment

A conference was held in the Mekong Delta province of Long An on July 28 to call for Japanese investment, on the occasion of the 50th anniversary of Vietnam-Japan diplomatic ties this year.

Speaking at the event, Japanese Consul General in Ho Chi Minh City Ono Masuo hailed Long An province’s important position in connecting HCM City – Vietnam’s biggest economic hub with the Mekong Delta provinces.

With abundant agricultural resources and a well-developed industrial production industry, Long An is also home to the highest number of Japanese firms investing in the Mekong Delta region, he said.

Chairman of the provincial People’s Committee Nguyen Van Ut committed all possible support to investors, including in site clearance, transport infrastructure, administrative procedures, land and sectoral planning, among others.

He said the provincial authorities and people are interested in developing ties with Japanese localities in various areas, notably Hyogo, Ibaraki, Wakayama and Nakagawa prefectures.

At present, Long An is home to 138 Japanese projects worth around 767 million USD, placing Japan 4th in terms of volume and 5th in value among 40 countries and territories investing in the province.

The same day, Long An and Japan’s Ibaraki prefecture signed a joint statement on bilateral cooperation.

Accordingly, they will create favourable conditions for bilateral cooperative ties in the fields of investment, trade, tourism, agriculture, education, culture and much more in line with laws and relevant regulations of each country, and international agreements to which each country is a member.

Since the beginning of 2020, Long An has sent nearly 1,100 guest workers abroad, 986 of them went to Japan. In the first half of this year, Long An attracted six Japanese projects valued at nearly 80 million USD.

Experts weigh in on effective implementation of new power plan

Experts on July 28 proposed measures to avoid problems and effectively implement the National Power Development Plan VIII, which was approved in mid-May, at a seminar on mechanisms, policies and solutions to ensure sustainable energy with a vision to 2050.

One problem with the previous plan was that many projects were behind schedule and were delayed coming online to the national grid, causing problems in energy security.

Nguyen Anh Tuan from the Vietnam Energy Association said that the slow progress of power projects is one of the main reasons leading to difficulties in power supply.

Prof. Le Chi Hiep from Ho Chi Minh City University of Technology stressed the need to build a specific roadmap for each period, with stricter inspection and monitoring.

Many participants agreed that the orientation of solar self-consumption development in the new plan is sound, but it is necessary to specify the concept, scale of development, and connectivity, especially in industrial parks and clusters.

Regarding offshore wind power development, they stressed the need to consider the issue of national sovereignty as the situation of buying and selling projects back-and-forth between units may occur.

Especially, for important projects, it is necessary to have a strict supervision regime from the Government to the Ministry of Industry and Trade to avoid major, year-long delays.

The Government should assign the Ministry of Industry and Trade and relevant ministries to develop a bidding mechanism to invest in renewable energy power projects, so as to choose contractors with sufficient capital, and technical staff, they said.

The National Power Development Plan VIII is considered a breakthrough in the energy sector as it shows Vietnam’s determination to gradually eliminate coal-fueled and gas-fired power generation and promote renewable energy to achieve the target of net zero emissions by 2050.

Under the plan for the 2021 - 2030 period with a vision to 2050, only the coal-fired power projects listed in the adjusted Plan VII and those currently under construction will be continued, and there will be no new coal-fired power projects after 2030.

Vietnam targets that by 2050, coal will no longer be used for power generation but biomass and ammoniac instead. Coal-fired power plants aged over 40 years will be closed if they are unable to switch to other fuels.

Meanwhile, renewable energy will receive special priority, expected to account for some 70% of all electricity generation by 2050. Rooftop solar power for self-use will also be facilitated to cover 50% of the roofs of office buildings and civil houses.

HCM City keen on expanding cooperation with Singapore

Ho Chi Minh City hopes to continue expanding cooperation with Singapore in fields with high added values such as digital economy, green economy, circular economy, innovation, new energy, education, healthcare, and youth exchanges, Chairman of the municipal People’s Committee Phan Van Mai said at a ceremony held in the city on July 28 to celebrate the 50th anniversary of Vietnam-Singapore diplomatic relations.

Mai highlighted the development of the bilateral between the two countries over the past five decades, especially since they elevated their relations to a strategic partnership in 2013 and set up a partnership in the digital economy and green economy in February 2023, becoming a model of effective collaboration among nations in the region.

On the foundation of this sound relationship, HCM City has also enjoyed a strong partnership with Singapore in many fields such as trade, investment, education and training, culture and tourism, he said.

The official said that HCM City hosts the highest number of Singaporean-invested projects in the country with more than 1,700 projects worth over 14 billion USD.

The two sides have shown efficient partnership in public policies, urban planning and human resources training, he noted.

The city's leader said that in the coming time, HCM City hopes to play a more active role and strengthen its engagement in cooperation programmes and agreements between Vietnam and Singapore such as those on green transition and carbon emission reduction.

Mai called for more Singapore investors to invest in the city, especially in the areas where it has demands such as urban development and transport infrastructure.

The chairman believed that the dynamic development of the HCM City-Singapore ties will be an important motivation for the sustainable development of the Vietnam-Singapore relations in the future.

For his part, Singaporean Consul General in HCM City Roy Kho said that the ceremony was a chance for the two sides to look back on the bilateral relations, sharing the delight and affirming the determination to build the friendship between the two nations.

The diplomat underscored that HCM City has always been a top destination for Singaporean investors, making Singapore the biggest investor in the city.

He expressed belief that the ties between Singapore and Vietnam in general and between the city state and HCM City in particular will continue to thrive, bringing prosperity to the people of both countries.

HCM City to host third National Culture and Business Forum in November

The third National Culture and Business Forum will be held in Ho Chi Minh City on November 18, organisers announced on July 28.

According to Chairman of the Vietnam Association of Business Culture Development Ho Anh Tuan who is also head of the committee for the campaign on business culture development in Vietnam (known as Committee 248), the forum will help realise guidelines and policies of the Party and State on building the Vietnamese culture and people to meet the requirements of the national sustainable development.

Tuan emphasised the importance of culture in creating a healthy business environment, elaborating that potential and strengths of cultural resources support economic recovery and development.

The forum is also an opportunity for Party and State leaders to meet and discuss with the business community and listen to their recommendations and proposals to better support businesses.

It will honour enterprises that meet Vietnam’s business culture standards and spread the campaign on building the Vietnamese business culture.

The highlight of the forum is the seminar "Business Culture - Flow of Development and Integration" about Vietnam’s trade culture values in history.

Da Nang aims to become regional-scale financial centre

Da Nang should issue a project to turn itself into a financial centre at the regional scale at an early date, said Luong Nguyen Minh Triet, Standing Deputy Secretary of the Party Committee of the central city, at a recent meeting of the committee.

He held that along with the project, Da Nang should build others to form a non-tariff zone and a national centre for innovative startups. At the same time, the city should focus on proposing adjustments to the Government’s Decree No. 144/2016/ND-CP dated November 1, 2016 on a number of specific mechanisms on investment, finance, budget and management decentralisation for Da Nang, he said.

At the meeting, Triet underlined the need to review, evaluate and analyse the gross regional domestic product (GRDP) growth speed of the city, focusing on spearhead sectors and areas showing downturn, thus identifying causes and seeking solutions to promote growth.

The official stressed the need for the city to coordinate with central ministries and agencies to make a proposal to the PM on the approval, announcement and implementation of the city’s planning in the 2021-2030 period with a vision to 2050 within the third quarter 2023.

Triet also underlined that Da Nang should promptly design and approve the planning of all sub-areas of the city within 2023, creating a favourable condition for the attraction and implementation of investment projects.

The municipal official also pointed to the need to focus on luring more investment, reforming the administrative procedures, improving the investment environment, creating optimal conditions for business and production activities, and strengthening dialogues with local firms to help them remove difficulties.

Over the recent past, Da Nang has regained its tourism position thanks to the hosting of the International Fireworks Festival. However, according to Triet, the city should concentrate on renovating tourism products and offering new and typical ones, while mobilising resources to host international events to lure more visitors.

At the meeting, participants sought ways to promote the city’s GRDP, especially in the fields of industry, construction and export. They also discussed other important issues such as planning, the disbursement of public investment capital, ground clearance for projects, State budget collection, and the improvement of important indicators on the assessment of the city's business environment.

In the first six months of this year, Da Nang posted a 3.74% GRDP growth year on year, ranking third among the five centrally-run cities in terms of economic development. Strong growth was seen in tourism and the service sector, which was a major motivation for the city’s economic expansion in the period. With a three-fold increase in the number of tourists staying in local accommodation facilities, Da Nang enjoyed a 117% rise in revenue from travel activities. Meanwhile, its software exports also increased 32.7%.

In the reviewed period, Da Nang’s State budget collection was estimated at 10.03 trillion VND (423.25 million USD), equivalent to 42.7% of its estimate for the whole year and 75% of the amount recorded in the same period last year.

The city granted investment decisions and investment licences to 10 domestically-invested projects worth over 2 billion USD, along with 55 new foreign-invested projects with a combined capital of 8.7 million USD.

Vietnam to earn over 4 billion USD from rice exports this year: MARD

The Ministry of Agriculture and Rural Development (MARD) has forecast that in 2023, Vietnam's rice exports will reach about 7.2 million tonnes, bringing home more than 4 billion USD.

MARD Deputy Minister Tran Thanh Nam said that the world’s economic difficulties and political instability cause significant difficulties for the export of goods in general and agricultural products in particular.

However, Vietnam’s rice exports still achieved good results and became a bright spot in the country’s agricultural total in the first half of this year.

He said that the current situation of rice exports in the world and market development in the first six months of the year, especially as India recently banned exports of ordinary rice brings an opportunity for Vietnamese rice to make a breakthrough at the end of the year.

According to the Vietnam Food Association, in July, Vietnam’s rice exports continued to post significant growth.

In the first seven months of this year, the country exported more than 4.48 million tonnes of rice, getting a turnover of nearly 2.4 billion USD, up more than 17% in volume and 28% in value over the same period in 2022.

Rice export turnover increased sharply because of a sharp increase in Vietnamese rice prices from nearly 490 USD per tonne last year to more than 530 USD per tonne now.

According to the association, this year, rice exports have the most favourable conditions when domestic production grows positively as most of the rice-producing regions have converted to high-quality and high-value varieties. Moreover, in the world market, the demand for rice has increased sharply.

According to the General Statistics Office, in 2022, Vietnam's rice exports reached 7.1 million tonnes with a value of 3.46 billion USD, an increase of 13.8% in volume and 5.1% in turnover compared to the previous year.

First Vietnam int’l logistics expo to take place in HCM City

The Vietnam International Logistics Exhibition (VILOG) 2023, the first of its kind, will be held in Ho Chi Minh City from August 10-12.

Organised by the Vietnam Logistics Business Association (VLA) and Vinexad, under the direction of the Ministry of Industry and Trade (MoIT), the exhibition will gather leading names in the sector from around the world who come to exchange and catch up with the latest trend in the field.

Tran Thanh Hai, Deputy Director of the Import-Export Department at MoIT, said currently logistics enterprises have huge advantages as manufacturing and trade activities both home and aboard of Vietnam have seen an upward trend over the past time. Besides, the participation of foreign logistics service providers will help local firms in the industry to have a better access to international solutions and market.

The event is expected to be a great opportunity for domestic and international logistics service businesses as well as the community of investors, developers, and other stakeholders to cooperate, consult, and identify solutions to optimise the procedures of enterprises.

Main categories at VILOG 2023 will include transport and forwarding, services and warehouse systems, packaging and cold chains, and logistics IT, among others.

With some of 345 booths having been booked by over 250 businesses from 22 countries and territories, the exhibition is expected to affirm Vietnam’s position on the international logistics map.

Reputable foreign names in the field, including Nippon Express, UPR, Swisslog, CMA-CGM, Pacific Lines and JAS and domestic firms such as Tan Cang Sai Gon, Viconship, Ratraco, VinaTech, ACT, will also take part in the exhibition.

At VILOG 2023, technology enterprises such as Connexion, AhaMove – OnWheel, Samsung SDS, and EcoTruc will introduce innovative products and services, promoting and improving efficiency of the logistics industry in Vietnam.

Binh Phuoc’s industry maintains high growth momentum

The central province of Quang Nam province on July 28 officially exported the first batch of braised scad fish to the United States.

This comes as 10 tonnes of braised scad fish was shipped to a port in Ho Chi Minh City before being exported to the US.

The transaction is conducted following a deal inked by Ba Ba Hoi food processing cooperative in Tam Ky City and LNS International Corporation to export the product to the American market.

According to information given by Huynh Thi Thu Thuy, a representative from the Ba Ba Hoi food processing cooperative, the fish is sourced from the fishing grounds located off Quang Nam province and is processed at a factory run by the cooperative. It is then transported to its headquarters in Tam Ky City for braising and packaging.

The representative stressed that the product of Quang Nam met all stringent food safety requirements set by the US Food and Drug Administration (FDA).

This represents an important milestone that paves the way for the province’s specialties to enter foreign markets moving forward, Thuy added.

BC Card: Vietnamese tourists are biggest spenders in RoK

Data released by Korean credit card issuer BC Card on July 28 shows that the number of transactions made by Vietnamese tourists in the Republic of Korea (RoK) during the first half of the year saw the sharpest growth among other visitors, increasing by 468% on-year.

BC Card noted that this strong growth in Vietnamese tourists' transactions stood significantly higher compared to those of all other foreign tourists, which stood at 358%.

It shared that by region, Seoul, Jeju Island, Gyeonggi province, Busan, and South Jeolla province all witnessed a surge of over 300% in the number of transactions by Vietnamese tourists.

“It showed that Vietnamese tourists travel widely across the country, underscoring their potential to spur consumption nationwide,” BC Card stressed.

In terms of retail sectors, BC Card noted that those which recorded the highest increase rate were fashion accessories and clothing, which jumped by 984% and 696% from last year, respectively.

According to information given by koreaherald.com, having signed a major partnership deal with NAPAS last year in order to promote non-cash payments by Vietnamese tourists in the RoK, BC Card has proactively established payment networks in an effort to enable Vietnamese tourists to use their local NAPAS card.

NAPAS is the major payment network operator in Vietnam which has issued over 100 million cards. However, it added that payments by NAPAS card are only possible at some major duty-free shops and convenience stores within the country.

"If card payments using NAPAS cards are available nationwide, it will significantly boost the revenue of the overall domestic tourism industry,” BC Card said in the released statement.

Circular, organic livestock ecosystem demands stakeholder connectivity: experts

To capitalise on the significant potential of using agricultural by-products, a connection between stakeholders should be formed to establish a circular and organic economic ecosystem, said experts at a recent workshop on the matter.

According to statistics, the total volume of farming by-products nationwide exceeded 156.8 million tonnes in 2020. Their proportion used in the circular economy (for livestock feed, composting, cooking, and other purposes) accounted for 45%, while the rest was directly disposed into the environment, resulting in significant waste.

Nguyen Xuan Duong, Chairman of the Animal Husbandry Association of Vietnam (AHAV), said he believes that developing a sustainable and environmentally-friendly agriculture through a circular economy model in production is an inevitable trend. The transition to a circular economy contributes to the development of the agricultural sector toward enhanced value added and sustainability, serving the realisation of economic and social goals and coping with climate change.

Nguyen Quynh Hoa from the Department of Livestock Production said that livestock production must be integrated with crop cultivation and other sectors to form a circular economic chain. She also mentioned the need to utilise the potential of agricultural by-products and livestock waste to develop sustainable livestock farming, reduce greenhouse gas emissions, and protect the environment.

Regarding the development of organic products, Ha Phuc Mich, Chairman of the Vietnam Organic Agriculture Association, pointed out that domestic consumers still lack awareness and understanding of organic farming and products. Consequently, there is no existing market for consumption on the spot, and there is limited encouragement for producers to convert from conventional to organic agriculture.

Participating experts expressed their belief that transitioning from a traditional economy to a circular economy requires system-wide changes, in which the roles of relevant parties, including the state and businesses, are of vital importance. Enterprises and cooperatives have embarked on establishing networks and sharing experiences in implementing circular economy models in agriculture, with technical support and connections coming from research institutes, schools, and technology transfer centres.

Mobile phone, QR code payments soar in popularity

Electronic and cashless payments saw significant increases in Vietnam in the first half of this year, with internet transactions growing by 76% in volume and 1.79% in value.

Mobile phone payments also surged by 65% in volume and 77% in value while QR code transactions rose by 152% and 301%, respectively. Meanwhile, transactions made through ATMs decreased by 4% in volume and 6% in value.

The Government has issued the National Digital Transformation Programme till 2025 with a vision to 2030. The State Bank has also released a digital transformation plan of the banking industry till 2025 with a vision to 2030. This provides an opportunity for banks to renovate their business models, improve financial services, and adapt to the changing landscape by offering diverse products and services that meet customer needs.

At the "Finovate Innovation Day: When Innovation Meets Sustainability" workshop organised by the National Innovation Centre and JobHopin, Deputy Chairman and Secretary General of the Vietnam Banks Association Nguyen Quoc Hung revealed that 96 banks and credit institutions in Vietnam are actively building digital transformation strategies. Moreover, 92% of the banks have developed internet and mobile apps to improve their services.

He added that these figures reflect a strong trend towards electronic payments. Banks and payment intermediaries are connected in real-time transactions, with an average daily value reaching approximately 900,000 trillion VND (40 billion USD), encompassing over 8 million transactions per day.

Additionally, over 70% of adults in Vietnam have a bank account through digital channels. The cost-to-revenue ratio for banks has decreased by around 30%, resulting in significant cost savings.

According to a 2023 survey on digital transformation by DBS financial services group, Vietnam ranks second among the 10 Southeast Asian countries in the degree of digital transformation for enhancing customer experience and engagement in the financial sector, behind only Singapore.

Businesses demand reasonable tariffs for mandatory recycling of packaging materials

The proposed cost for recycling packaging in the Ministry of Natural Resources and Environment’s draft regulation are unreasonably high, which would push up prices, causing difficulties for themselves and consumers, businesses said.

The ministry needs to reconsider it and set more reasonable costs to ensure sustainable production and consumption, they told a seminar held in HCM City on Friday to collect businesspeople’s opinions on the draft with respect to the amount to be paid per unit produced for recycling of discarded products and packaging materials by manufacturers and importers under the Extended Producer Responsibility (EPR) scheme.

The Law on Environmental Protection requires them to implement the EPR from January 1, 2024.

They can recycle them themselves or pay to the Vietnam Environmental Protection Fund to enable recycling.

The Ministry of Natural Resources and Environment will issue specific norms for each type of product and packaging and adjust them every three years.

Under Decree No.08, the payment to the Vietnam Environmental Protection Fund will be determined according to the recycling rate and cost and the volume of products and packaging sold in the market.

Chu Vân Anh, deputy chairwoman of the Vietnam Beer-Alcohol-Beverage Association, said while the draft dated July 26 has reduced a number of rates in the previous draft, some others still exceed those of 14 affluent western European countries.

For instance, it is 1.26 times their rate for recycling aluminium packaging and 2.12 times for glass, she said.

For just the three main packaging materials, paper, plastic and metal, enterprises would have to pay an estimated VNĐ6.1 trillion per year, and pay on top of that for other materials and used products, she said.

Other delegates said excessively high cost would escalate goods prices, creating challenges for businesses and adversely impacting people’s livelihoods.

James Ollen, executive director of AmCham Vietnam’s HCM City chapter, said used packaging materials made from aluminium, iron, cardboard, and rigid PTE fetch recyclers good money.

“Therefore, it is unreasonable to require businesses and the 100 million Vietnamese consumers, who are already facing significant challenges, to provide additional support to already profitable recyclers.”

Besides, because of their value, packaging materials are efficiently recycled with minimal environmental impact, he pointed out.

He and representatives of business associations suggested that the ministry set a reasonable level based on certain criteria.

For materials with high recycling value that exceeds recycling costs, such as aluminium, iron, cardboard, rigid PET packaging, etc., and where recycling operations are already profitable, there should be no fee, they suggested.

For other materials, they suggest to apply a coefficient of 0.2 for glass, 0.2 or 0.3 for mix-paper packaging, 0.3 for single soft packaging material, and 0.5 for multiple soft packaging material to make the recycling cost not too high, similar to that of western European countries, and similar to the research findings from the Packaging Recycling Organisation Vietnam.

Besides, the drafting committee should exclude the proposed 2 per cent administrative cost, they said, pointing out that the interest accrued from businesses’ contributions to the Vietnam Environmental Protection Fund would easily cover this.

They wanted businesses and manufacturing associations to have a say in deciding the recycling cost instead of just recyclers.

Ollen said: “Businesses should be granted the flexibility to pursue a hybrid approach, combining both self-recycling and recycling support payments for a specific type of packaging/product … instead of obligating them to choose either option since the law and guidelines do not explicitly restrict such an approach.

“Lastly, we strongly advocate for the Government to introduce favourable policies to promote environment-friendly packaging and encourage the use of recycled materials.”

The seminar was organised by the Việt Nam Chamber of Commerce and Industry in collaboration with the National EPR Council, Vietnam Beer-Alcohol-Beverage Association, Vietnam Plastics Association and Food and Foodstuffs Association of HCM City. 

RoK shipbuilding companies look to Vietnam for workers

Hanwha Ocean and HD Hyundai, two out of the “Big Three” shipbuilders of the Republic of Korea (RoK), are looking to Vietnam to secure workers amid the Korean industry's lingering workforce shortage, according to industry officials.

On July 22, Hanwha Ocean signed a memorandum of understanding (MOU) with Vietnam's Ministry of Industry and Trade in Hanoi for their comprehensive cooperation in training and hiring Vietnamese shipbuilding workers.

This came a month after Hanwha Group Vice Chairman Kim Dong-kwan joined a business delegation accompanying President Yoon Suk Yeol on his State visit to Vietnam.

The latest MOU is intended to satisfy the country’s demand for workers by supporting programmes to strengthen the capabilities of vocational training institutions under the Vietnamese ministry, a Hanwha Ocean official said.

Meanwhile, HD Hyundai President Chung Ki-sun also inspected Hyundai Vietnam Shipbuilding's shipyard in Khanh Hoa last month, during his visit to the Southeast Asian country as a member of the business delegation accompanying the President.

Since the establishment of Hyundai Vietnam Shipbuilding in 1996, Vietnam has grown into a country winning the fifth-most shipbuilding orders in the world. It is also known to have the largest number of skilled and experienced shipbuilding workers among Southeast Asian nations.

Korean shipbuilders have therefore preferred hiring Vietnamese workers.

Data compiled by the RoK Ministry of Justice earlier this year also showed that Vietnamese nationals accounted for 55.1% of 1,595 foreigners who received E-7 (Particular Occupation) visas between January 2022 and January 2023 for specific activities related to shipbuilding.

Vietnam's exports of fruits and vegetables strive to hit $5 billion

Vegetables are the agricultural sector's greatest export segment, due in part to the increased demand from China.

According to the General Statistics Office, fruit and vegetable exports were in the spotlight in the first half of 2023, reaching an estimated $2.7 billion – up 64.2 per cent from the same period in 2022.

Phung Duc Tien, Deputy Minister of Agriculture and Rural Development, stated at a July 3 press conference that, given the present development momentum, fruit and vegetable exports are certain to surpass $5 billion in 2023.

According to the Ministry of Agriculture and Rural Development (MARD), China's increased purchases account for the significant increase in fruit and vegetable exports, particularly dragon fruit, durian, mango, and jackfruit.

In the first half of 2023, vegetable and fruit products, coffee, grains, and macadamia nuts – which have been the mainstay of agricultural and forestry exports – rose by 6.1 per cent over the same period in 2022.

According to Tien, Vietnam's fruit and vegetable exports could reach $10 billion in the future if greater processing investments are made and the market potential is fully exploited.

The deputy minister stated, "Vietnam still has numerous opportunities to export agricultural products to the global market. Based on the situation and product structure, MARD's operations will be adaptable to any new context. It is projected that the GDP growth rate for the entire industry will reach 3-3.5 per cent in 2023."

Tien feels that export growth must be sustained for commodities with strong export potential, such as vegetables, rice, and animal feed. All technical, phytosanitary, and food safety requirements must be met, and contracts must be properly enforced.

According to Vu Ba Phu, director of the Vietnam Trade Promotion Agency (Vietrade), the month of June's exceptional export volume demonstrates that trade promotion solutions have produced clear results. Vietrade intends to directly promote Vietnam's leading brands and agricultural products to Chinese importers and consumers through trade promotion conferences in numerous regions, including Guangxi and Hainan.

To improve the efficiency of import and export in the future, Vietrade is intent on trade promotion activities in emerging markets, such as India, Africa, the Middle East, Latin America, and Eastern Europe, as well as markets less affected by inflation and positive growth, such as ASEAN.

Vietrade continues to exploit free trade agreements (FTAs). It is facilitating the improvement of digital transformation in the issuance of preferential certificates of origin, enabling businesses to take advantage of FTA deals. Given that they have spanned almost all key markets and still have tremendous growth potential, utilising them continues to provide businesses with ample opportunities.

Enterprises adopting circularity through technology innovation

Many businesses have experienced outstanding achievements and significant strides through driving innovation and leveraging new ideas and technologies.

Masan High-Tech Materials (MHT), a subsidiary of Masan Group, was last week honoured in the Top 50 Innovative Enterprises Vietnam and Top 10 Innovative Enterprises Vietnam, at an event held by VIR in collaboration with Viet Research.

Director of Media, Community, and External Relations of MHT, Phan Chien Thang, said that it has developed innovative processes, breakthrough solutions, and eco-friendly products to meet unmet needs in the global market, earning 95 new patents worldwide and 50 that are still in the application stage.

In 2020, MHT completed the acquisition of H.C. Starck Group’s tungsten business. It works in high-tech tungsten refining and recycling technology in Germany, with over 100 years of experience. Two innovation centres in Germany and Vietnam were also established to inherit and promote the achievements, cutting-edge research, innovation, and technology platform of H.C. Starck, and bring these studies to Vietnam.

Despite the difficulties in the domestic and international economy, MHT achieved revenues of $676 million in 2022, continuing to maintain its position as the largest manufacturer of mid-stream tungsten products outside of China.

Elsewhere, Vietcombank has promoted innovation for 60 years and pioneered in providing online payment services to customers and developing card services in Vietnam.

In recent years, activities of research and application of science, technology, and innovation have also been developed by Vietcombank with priorities on financial resources. Particularly, a digital transformation programme with a focus on reaching the top in terms of digital transformation maturity in the region by 2025 has also been drastically implemented.

The lender will implement three groups of actions to promote sustainable and breakthrough innovation, shared Le Hoang Tung, chief accountant of Vietcombank.

By 2022, Vietcombank’s network boasted 650 branches and transaction offices in five countries, with a profit scale of about $2.5 billion.

Meanwhile, the largest enterprise in the dairy processing industry in Vietnam, Vinamilk, has huge potential in the global dairy industry, according to Brand Finance’s Food & Beverage 2022 report. Currently, this enterprise is operating 16 factories and 14 farms both at home and abroad.

The results of a quick survey of businesses Viet Research honours lists showed that around 85 per cent of businesses consider innovation an important key to growth in the coming time, focusing on innovation and improvement of products, services, and processes. Some 70 per cent of businesses expect to increase their budget for innovation activities for at least the next two years.

Digital Prosperity for Asia Coalition launches Vietnam Chapter

The Coalition for Digital Prosperity for Asia (DPA) has launched its Vietnam Chapter to support digital small- and medium-sized enterprises (SMEs).

The launch event was organised in Hanoi in collaboration with the Ministry of Science and Technology (MoST) National Agency for Technology Entrepreneurship and Commercialization Development, and the Open Innovation and Technopreneur Institute

The DPA is the first pan-Asia Pacific (APAC) alliance built by home-grown companies to promote the democratisation of digital technologies across all sectors.

The Vietnam Chapter aims to connect digital SMEs with policymakers to strengthen Vietnam's digital ecosystem and support the growth of dynamic, innovative, and resilient digital SMEs that can expand across the region.

The launch event comprised two panel sessions involving DPA members from various countries including Kinobi (Singapore), EngageRocket (Indonesia), and Quickwork (India) as well as government representatives, trade organisation representatives and international MNCs.

The DPA recommends a consultative and collaborative approach between government and industry players and strengthening key business enablers like digital infrastructure investments, risk-based policy development, and access to multinational digital service providers to support digital SMB expansion regionally.

It also recommends policymakers to develop standardised frameworks that consider access to new and innovative technologies, such as AI; enable SMB participation in government procurement through a digital marketplace model; and promote fairness principles in software procurement.

DPA members will be able to discuss and align policy advocacy interests surrounding key issues, conduct knowledge sharing, and strengthen national and regional networking.

The coalition is currently looking for more like-minded Vietnamese and APAC companies in the digital space that recognise the importance of growing the digital economy for both local and shared prosperity.

Medical tourism brings in US$2 billion per year

According to some tourism businesses, they are introducing to people, especially international tourists, medical tourism services such as health care, cosmetic therapy, and dentistry.

Ms. Huynh Phan Phuong Hoang, Deputy General Director of Vietravel Company, said that the company offers tours to Vietnam both for tourism and for periodic and advanced health check-ups. In particular, dental care service is targeted at overseas Vietnamese tourists.

TATINTA Joint Stock Company offers to connect visitors with hospitals, medical facilities, and doctors, which not only frees them from waiting in line but also enables them to choose suitable doctors and locations for medical services at reasonable prices.

According to the Ho Chi Minh City Department of Tourism, the number of tourists coming to Vietnam for medical examination and treatment has gradually increased over the years, with a turnover of about US$2 billion per year. On average, about 300,000 foreign visitors come to Vietnam annually for medical examination and treatment, 40 percent of which arrive in HCMC.

The Department of Tourism of HCMC has collaborated with more than 50 units including hospitals, medical facilities, spas, travel businesses, and tourist accommodations to build unique and reasonable tourism services in response to visitors' needs.

It is expected that about 30 medical tourism and health tourism services will be launched in 2023.

Viet Nam’s fruit and vegetable exports set record high

Viet Nam gained US$2.75 billion from exporting fruits and vegetables in the first half of this year, reported the Ministry of Agriculture and Rural Development.

In the reviewed period, exports to China increased by 64.2 percent against the same period last year and equalled to 81.8 percent of the total export value in 2022. 

In addition to the Chinese market, exports of vegetables and fruits to other markets also grew positively, such as South Korea, Japan, the Netherlands, the United Arab Emirates, and Malaysia.

Durian exports are forecast to reach US$1 billion and fruit and vegetable exports would probably reach US$4 billion by the end of this year, the ministry forecasted. 

The ministry also said that the total agro-forestry-fishery export value hit US$24.59 billion in the first half of 2023, down 11.1 per cent year on year. 

Specifically, the export value of main agricultural products reached US$12.79 billion, up 12 per cent and livestock products also saw an increase of 26.5 per cent in export value to US$232 million.

Meanwhile, the exports of forestry and aquatic products witnessed respective decreases of 28.2 percent and 27.4 percent, reaching only US$6.5 billion and US$4.13 billion. 

Coffee, rubber, rice, vegetables, cashew nuts, shrimp, and wood were among products that posted an export revenue of at least US$1 billion each. 

Regarding export markets, China, the U.S. and Japan continued to be the three largest importers of Viet Nam's agricultural, forestry and fishery products.

Construction kicked off for 9 social housing projects in H1

Nine projects on social housing and housing for workers in industrial zones saw their construction started between January and June, expected to offer 18,768 units to the market.

The Ministry of Construction stated that up to now, 307 social housing projects in urban areas nationwide have been completed, with approximately 157,100 units and a total flooring space of nearly 8 million square meters.

Currently, the country is continuing to implement 418 projects, whose total flooring space covers 22.565 million square meters with approximately 432,400 units.

The ministry is carrying out a project on building at least 1 million units of social housing for low-income individuals, industrial workers during 2021-2030.

Data from the Vietnam Bank for Social Policies (VBSP) showed that over 6.2 trillion VND (261.93 million USD) has so far been disbursed to around 15,000 clients qualified for loans to purchase or rent social housing, workers' housing, and build new or repair houses.

The average per capita housing area nationwide is now about 25.6 square meters.

Hanoi moves toward hi-tech agricultural production

Farmers in many cooperatives in the capital city of Hanoi have used unmanned aerial vehicles in pesticide spraying, fertilising and rice planting to reduce costs and maximise profits.

A smart agricultural model has been adopted in rural districts like Phu Xuyen and Chuong My by the city’s Agricultural Extension Centre under the Department of Agriculture and Rural Development.

The centre has assisted cooperatives in applying hi-tech methods in their production by providing advanced equipment.

This includes unmanned aerial vehicles to assist in seed sowing, fertilising, and spraying pesticides in a safe and simple way; as well as using remote sensing aircraft, and weather monitoring stations to assist in land surveying and mapping.

The smart agricultural model has helped farmers better manage pests and diseases, as well as monitor weather, soil, and water to plan the best care for their plants.

Vu Van Dinh, Director of the Phu Chuyen Agricultural Cooperative in Phu Xuyen district, said technology application in farming requires lots of work in which digitisation and field planning are decisive factors.

We face difficulties, but only a dozen households out of nearly 100,000 oppose field boundary removal to apply modern equipment, he said.

Nguyen Van Ta, who leads the production team of Ha hamlet in Phu Xuyen district's Chuyen My commune, said once the cooperative has applied technology and provided quality agricultural services, farmers only need to check their fields and bring rice back home at the end of the harvesting season. Meanwhile, they have time to do other jobs.

Thanks to that, local farmers can maintain proper crops while being productive in other ways too and improve their livelihoods, he said.

In order to fully cover farming services from watering, in-field irrigation, disease and pest control, and non-stop mechanised planting and harvesting, co-operatives must accelerate the application of hi-tech solutions.

Director of the Phu Chuyen Agricultural Cooperative Vu Van Dinh said in order to master advanced high technology, agricultural cooperatives need capital to buy machinery and equipment and launch training courses to improve farmers’ qualifications.

Hoang Van Tham, Director of Chuc Son Clean Fruit and Vegetable Cooperative in Chuong My district said, human resources are important to agricultural cooperatives to apply advanced technology on a large scale.

Vu Thi Huong, Director of the Hanoi Agricultural Extension Centre, said: “If we want to apply high technology in agriculture, we must start with farmers. Digital technologies must be relevant to conditions, circumstances and characteristics of farmers.”

The centre has linked local authorities, technology suppliers and co-operatives in an effort to promote hi-tech applications.

A number of co-operatives applying high technology have basically met requirements.

They include the Chuc Son Clean Fruit and Vegetable Cooperative in Chuong My district and Huong Ngai Agricultural Cooperative in Thach That district.

These cooperatives have made a digital transformation in agricultural production, better arranging plants, and introducing higher quality varieties. They have also introduced livestock with high productivity into production.

The cooperatives have invested in equipment and machinery to improve productivity and product quality, and gradually expanded production, subsequently increasing their collective incomes.

Nguyen Trong Vinh, Vice chairman of the Phu Xuyen District People’s Committee, said local authorities will assist agricultural cooperatives to gradually make digital transformation on field plots and digitalise land management data, serving as a basis for modern and smart agriculture development.

Deputy Director of the Hanoi Department of Agriculture and Rural Development Nguyen Manh Phuong said Hanoi has a large area of agricultural land, while the agricultural labour force is in shortage due to the labour shift movement to craft villages and the service sector. This leads to an increasing area of abandoned agricultural land.

He said it is necessary to establish co-operatives and groups that apply synchronous mechanisation and high technology in production. This also helps to maintain the national database of agricultural producers, he said.

HCM City learns Canada’s experience in running farm produce trading floor

A delegation of Ho Chi Minh City has learned Canada’s experience in operating a farm produce trading platform, during a recent visit to the North American country.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has helped many Canadian businesses to enter the Vietnamese market while Vietnamese firms have yet to find out effective ways to explore the Canadian market.

At a recent meeting with the HCM City delegation, Minister of Agriculture, Food and Rural Affairs of Ontario province Lisa Thompson introduced the Ontario Food Terminal (OFT), which could become a gateway for products and tropical fruits of Vietnam to enter Canada and also a model for Vietnam to consider to apply.

Thompson’s visit to the Southeast Asian country in February and the HCM City delegation’s latest trip showed both sides’ great interest in agricultural cooperation, especially the development of a farm produce trading platform for both the southeastern and southwestern regions of Vietnam, Tran Thu Quynh, Trade Counsellor of the Vietnamese Embassy in Canada, told the Vietnam News Agency.

The OFT is the largest wholesale fruit and produce distribution centre in Canada and the third largest in North America. It comprises a market for over 400 farmers to directly trade their produce and a cold storage zone with 20 warehouses for wholesalers.

It operates under strict supervision of a board set up by the Ontario Ministry of Food, Agriculture and Rural Affairs.

Nguyen Ngoc Hoa, Chairman of the HCM City Union of Business Associations, said that the OFT is a model supported by the state but operated by enterprises via a board of persons directly running the terminal. It also connects exporters with importers who are always ready to offer help in terms of procedures to import goods into Canada.

At the OFT, all products must meet food safety and packaging standards. Transactions here are also transparent, helping qualified products be put up for sale in Canada or exported to other countries.

Hoa held that the OFT is a business model worth learning, noting it doesn’t simply pursue profit but also serves the interests of those engaging in the terminal.

Railway sector’s revenue up 17% in H1

The Vietnam Railways Corporation (VNR) revealed on July 6 that its total revenue topped 3.7 trillion VND (156.4 million USD) in the first six months of this year, up 17% year-on-year.

Of the total, the combined revenue of the VNR’s two affiliates - the Hanoi Railway Transport Joint Stock Company (Haraco) and the Sai Gon Railway Transport Joint Stock Company (Saratrans) - is estimated at 2.5 trillion VND, up 18% year-on-year, with direct takings from transportation activities reaching more than 1.9 trillion VND, up 25%.

However, while passenger transport grew strongly with a turnover of more than 1.2 trillion VND, a year-on-year increase of 83%, freight transportation dropped sharply, with only 824 billion VND, equal to about 80% of that the same period last year.

According to the VNR, the railway sector has implemented many solutions to promote transport.

Regarding passenger transport, the number of trains and train schedules have been adjusted to suit passengers’ needs, with focus on short-distance sections of high travel demand such as Hanoi to Thanh Hoa, Vinh, Dong Hoi, Hue and Da Nang and vice versa, and Ho Chi Minh City to Nha Trang, Phan Thiet and Da Nang and vice versa.

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