Although apartment prices are no longer skyrocketing, this segment still records the best liquidity compared to other product segments in the real estate market.

Experts said that apartments are also the type that creates the driving force for recovery for the real estate market in the first two quarters of this year, especially in two large urban areas, Hanoi and Ho Chi Minh City.

Batdongsan.com.vn's survey showed that apartment searches move in the same direction as price fluctuations.

If calculated from October last year until now, apartment searches reached their 'peak' around March this year and have now increased by 29% in Hanoi and 32% in HCM City.

The private house and land segment in the past two quarters also recorded positive changes, in both searches and transactions.

Searches for land have recovered about 33% and the number looking for private houses have recovered about 18%, compared to the first quarter of last year.

Some brokers commented that transactions in the private home segment have been relatively stable from the beginning of the year until now.

The resort real estate segment continues to be gloomy and is the quietest type in the real estate market in the first half of this year. However, experts said that this segment is also starting to show certain signs of recovery.

Among them, resort villas and townhouses recorded a clearer recovery than condotels.

According to experts, the effectiveness of related policies such as the Land Law 2024, Housing Law 2023 and Real Estate Business Law 2023, which was accelerated and will now apply from August 1 this year, could be a strong driver for the real estate market in the near future.

However, the real estate market is still in an exploratory state in the third quarter of this year. The 'reversal' cycle of growth and stability of the real estate market will last from the second half of this year to the end of 2026 with different developments between segments./.

Vietnam Airlines grounds 12 planes for maintenance

Vietnam Airlines has temporarily grounded 12 A321NEO aircraft for up to 300 days following an engine recall by Pratt & Whitney, along with two A350 aircraft affected by Rolls-Royce engines, revealed Le Hong Ha, general director of Vietnam Airlines Corporation.

Ha said by the end of the year, an additional 17 A321NEO aircraft and three to five A350 aircraft would also be impacted by engine recalls, with extended maintenance periods of up to 300 days.

Due to this recall, aircraft shortages will continue to last until the first half of 2025, said the CEO, adding the airline is actively collaborating with manufacturers as a way of seeking solutions to mitigate these challenges.

To address aircraft shortages, the official stressed that Vietnam Airlines is implementing many measures, including negotiating with leasing companies to secure four "wet-lease" aircraft (short-term lease of fully operational aircraft) for the purpose of short-term operation.

Vietnam Airlines also proposed that the Ministry of Transport work alongside aviation authorities of other countries in order to ensure slots at airports for local airlines to increase efficiency.

HCM City real estate revenue up 6% in H1

Real estate revenue in HCM City reached VNĐ124 trillion (US$4.9 billion) in the first half of the year, up 6.1 per cent year-on-year, according to the HCM City Statistics Office.

The real estate market has shown signs of recovery this year, with 3 per cent growth in the second quarter and 2.5 per cent in the first quarter, after a 6.4 per cent decline last year from 2022.

The market hit its lowest point in the first quarter of 2023 with a negative growth rate of 16.2 per cent.

Lê Hoàng Châu, chairman of the HCM City Real Estate Association (HoREA), said the market continues to face challenges such as an abundance of high-end housing and a shortage of affordable housing, particularly social housing.

Industry analysts remain optimistic about the market’s outlook, expecting benefits from increased foreign direct investment in the real estate sector and revisions to the Land Law.

Foreign direct investment in the property sector was up 70 per cent year-on-year to reach over $1.98 billion as of the end of May.

The influx of foreign capital, accounting for 18 per cent of total FDI, makes the property sector the second most attractive sector after manufacturing.

HCM City’s strategic location and robust infrastructure make it an attractive investment destination for foreigners, particularly its real estate sector, said industry analysts.

Competitive prices in the property market, especially in HCM City, have lured the interest of many foreign investors, they noted.

A report by Cushman & Wakefield has noted a positive outlook for foreign investment in the Vietnamese property sector from 2024 to 2026, driven by low interest rates and various supportive Government policies.

Major investors from countries such as Singapore, Hong Kong, mainland China, Japan, and South Korea are increasingly interested in the high-end and luxury segments in Việt Nam, with Singapore leading the way with nearly $3.25 billion in investments in the first five months, according to the report.

Industry analysts also expect the market to benefit from the revisions to the Land Law to take effect on August 1.

They are expected to increase the supply of social housing by encouraging enterprises to invest in the segment.

They will particularly benefit two main groups: overseas Vietnamese and individuals who are resettled and have received compensation.

It allows overseas Vietnamese to buy houses in Việt Nam and get ownership, which is expected to attract more investment from them.

It also stipulates that resettlement areas must meet conditions related to technical and social infrastructure.

But the property sector has admittedly been facing challenges such as debt repayment pressures, fraud and other financial scandals.

Numerous bond issuers, mostly real estate developers, have missed interest and principle payment deadlines since the end of 2022 following the arrest of Trương Mỹ Lan, chairwoman of Vạn Thịnh Phát, for financial fraud.

This has shaken market confidence.

Despite multiple challenges facing the city, its Gross Regional Domestic Product (GRDP) grew by 6.46 per cent in the first half of the year.

The country’s largest city aims to achieve a yearly growth rate of 7.5-8 per cent. 

Hanoi approves investment for 26 public investment projects

The Hanoi People’s Council has approved in principle investment policies and adjustments to investment policies for 26 projects using public investment capital.

A resolution on the approval was adopted at the recent 17th session of the 16th-tenure council. Under the resolution, 22 projects have their investment policy approved, three have their investment policies adjusted and one is stopped.

During the session, the council considered and passed 17 reports and 22 resolutions, which dealt with many important issues including orientations, mechanisms and measures to speed up socio-economic development and ensure social security. A project to improve capacity and safety in fire prevention, fighting and rescue as well as activities to mark the 70th anniversary of the capital’s Liberation Day were also among them.

The council also endorsed a resolution on handling voters' petitions from the beginning of the 2021-2026 tenure. It requested the municipal People's Committee to strengthen leadership to seriously and fully implement the conclusions and recommendations stated in the supervision report of the council’s Standing Committee. The committee was asked to review voters’ petitions that have not yet resolved and assign relevant agencies to have specific roadmap to deal with the issues.

It was reported at the session that Hanoi recorded encouraging results in investment attraction and disbursement during the first half of 2024, and is poised to push ahead with this work in the coming time.

Development investment in the capital city reached 208.8 trillion VND (8.2 billion USD) during the January - June period, representing a year-on-year rise of 9.5%, according to the municipal People’s Committee.

Added with 43.8 million USD registered in June, Hanoi recorded 1.165 billion USD in foreign direct investment (FDI) during the first half of 2024, comprising 1.036 billion USD for 120 new projects, 55 million USD for 78 existing projects, and 74 million USD spent on contributing capital to or purchasing shares of local companies.

Thanks to the effective use of public investment capital, construction activities continued to be sped up in the first six months, the administration said, noting that together with investment attraction, it has also asked contractors and construction units to harness resources to accelerate key projects and infrastructure development, helping boost public investment disbursement.

In 2024, the city has 226 public investment projects on basic construction, consisting of 155 projects launched in previous years and invested with 205.5 trillion VND in total (including 24.4 trillion VND planned to be disbursed this year), and 71 new projects worth 7.2 trillion VND (including 1.1 trillion VND to be disbursed this year). Among them, there are 58 transport projects, accounting for 19.5% of the capital plan.

Key projects in the city are being accelerated so as to be completed on schedule, the People’s Committee went on.

It elaborated that the Belt Road No. 4 project in the Capital Region, invested with about 12.6 trillion VND so far, has had 9.6% of its workload done. Invested with over 7.2 trillion VND from the city’s budget, the Hoang Cau - Voi Phuc section of the Belt Road No. 1 project (Phase 1) has had 32.4% of its investment capital disbursed.

The project on upgrading the Ba La - Xuan Mai section of National Highway 6, with investment totalling 8.1 trillion VND funded by the city’s budget, has seen 7.5% of its capital plan allocated.

The city has also disbursed about 7.3% of the 5.2 trillion VND in total investment for a project that builds a road connecting Thang Long Avenue with Hanoi - Hoa Binh Expressway./.

Hoa Phat delivers over 500 containers to world’s leading container leasing firm

Steel giant Hoa Phat Group said it has delivered the first batch of over 500 40ft high cube containers to US-based SeaCube Container Leasing – one of the world’s leading purchasers and lessors of refrigerated containers.

According to Director of the Hoa Phat Container Production Joint Stock Company Vu Duc Sinh, the handover affirmed the company’s prestige in the sector and opened up long-term cooperation with SeaCube, contributing to meeting the increasing demand in the international ocean freight shipping market.

Hoa Phat and SeaCube which boasts an international operation network hope for continued cooperation in the coming time, he added.

During his working trip to the Hoa Phat container production facility, Vice President of SeaCube Operations and Procurement Jorge P.Dias highlighted SeaCube’s great demand for containers in Vietnam, which meet international technical requirements for cross-border shipping, and hoped that the two sides will seal a larger deal in the coming time.

Earlier, Hoa Phat has also delivered many batches of containers under orders of many large domestic and foreign partners.

The Hoa Phat Container Production Joint Stock Company, focusing on the manufacturing of 20ft and 40ft high cube containers, has a total capacity of 500,000 TEUs per year./.

Ho Chi Minh City records strong tourism growth in H1

Ho Chi Minh City welcomed nearly 2.7 million foreign tourists during the first six months of the year, representing a year on year rise of 38% and meeting 44.6% of this year’s target, according to the municipal Department of Tourism.

The first half also saw more than 17.1 million domestic tourists visit the city, an annual increase of 4.4% and reaching 45.1% of this year’s target.

Tourism revenue surged by 14.6% year on year to more than VND92.6 trillion.

The sharp increase was attributed to the city’s efforts in deploying a number of outstanding tourism activities in the first half of the year, including the 20th Ho Chi Minh City Tourism Festival and the second Ho Chi Minh City River Festival.

Furthermore, a series of tourism promotion activities were also held abroad, such as fourth Exhibition of HCM City and Friendship Provinces and Cities in Savannakhet, a tourism promotion programme at the IMEX Frankfurt 2024 in Germany, and the HCM City Days launched in Osaka.

The city plans to organise a range of festivals and tourism promotion events which specifically seeks to boost tourism, including the International Travel Expo Ho Chi Minh City 2024 (ITE HCMC 2024) in September and the seventh Edition of the Techcombank Ho Chi Minh City International Marathon in December.

Moreover, the southern metropolis has also devised plans relating to the application of the ASEAN Tourism Standards and continued to implement the Smart Tourism Development Project in the 2021 - 2025 period.

The southern metropolis has set a target of receiving six million international tourists and 38 million domestic tourists this year, with tourism revenue expected to reach VND190 trillion.

Da Nang launches tourism promotion campaign in the RoK

The central city of Da Nang on July 8 launched a tourism promotion campaign in Seoul of the Republic of Korea (RoK) as part of efforts to attract more Korean tourists to the city.

“Enjoy Da Nang Again” provides a chance for local authorities to introduce a range of new tourism products to the Korean market, and for travel agencies in Da Nang, as well as Quang Nam and Thua Thien-Hue provinces to push connections with Korean partners.

Tran Chi Cuong, vice chairman of the Da Nang municipal People’s Committee, said in the first half of the year that the central city attracted 822,765 Korean arrivals, accounting for more than 41% of the total number of international visitors to the city.

This figure highlights that more and more Korean tourists chose Da Nang as their favourite destination, he noted.

“Enjoy Da Nang Again” is scheduled to officially begin from July 15 and last until the end of the year. It will offer many souvenirs and incentive packages to Korean tourists returning to Da Nang for the second time since 2020. It is expected to provide visitors with interesting experiences that are unique to the central city.

Da Nang also aims to boost key tourism products, specifically the Meetings, Incentives, Conferencing, and Exhibitions (MICE) and golf tourism in the RoK market as it has welcomed a high number of international tourists to the beach city since 2015.

Furthermore, the coastal tourism hub hosted a wide range of activities, including a fireworks festival, the Asian film festival, the Vietnam-RoK festival, and a golf tournament aimed at attracting international tourists, including Korean visitors.

HSBC lends Leader Energy to develop renewable energy in Vietnam

The Hong Kong and Shanghai Banking Corporation in Vietnam (HSBC Vietnam) and the Malaysian Leader Energy Holding Berhad (Leader Energy), a wholly owned subsidiary of HNG Capital, recentl signed a US$23.3 million financing deal to support the development of Leader Energy's solar projects in Vietnam.

This marks the bank's second transaction with Leader Energy in the country after financing a hydropower plant in 2017.

The six-year loan will be used to support the refinancing of Vinh Hao 6 (VH6), a newly acquired 50MW solar power plant under Leader Energy in the southern province of Binh Thuan.

VH6 has been fully acquired by Leader Energy since 2023. The acquisition serves to reaffirm Leader Energy’s commitment of 500MW+ of renewable energy assets in the country.

The deal also showcases the renewable energy potential that exists locally, particularly given the country's conducive conditions and its Government's pledge to achieve net zero by 2050.

Jenny Ng, group chief financial officer of Leader Energy, said, “We are pleased with the successful refinancing of our Vinh Hao 6 in Binh Thuan province. The refinaning arrangement, secured through HSBC Vietnam with close collaboration with HSBC Malaysia, has offered more favourable term.

This strategic financial decision demonstrates our solid financial footing, commitment in maintaining a strong financial foundation and our focus on sustainable growth. The confidence shown by our financial partners is a testament to the robustness of our financial management, the underlying asset and our ability to deliver.”

“Contributing to the energy transition is a key component of Leader Energy’s strategy to mitigate climate change and promote sustainable development. The group is expanding its renewable energy portfolio to fulfil its commitment to achieving net zero greenhouse gas emissions by 2050,” he added.

Meanwhile, Ahmed Yeganeh, country head of Wholesale Banking of HSBC Vietnam, emphasised that, "We are proud to continue supporting Leader Energy in its efforts to decarbonise Vietnam's energy sector. Our relationship with Leader Energy spans over 45 years and we have supported their growth and expansion, including their transition towards the renewable energy sector in multiple countries in ASEAN and in Taiwan.”

“This deal demonstrates how the financial sector can play an active role in unlocking the renewable energy potential for Vietnam while supporting the sustainable growth ambition of businesses," he noted.

Vietnam revises import tariffs under ASEAN-Korea trade agreement

The Government of Vietnam has issued a decree to revise import tariffs under the ASEAN-Korea Free Trade Agreement (AKFTA) in the 2022-2027 period.

Under Decree No. 81/2024/ND-CP, goods such as live animals, meat, and meat by-products intended for consumption post-slaughter will now enjoy a zero percent AKFTA tariff.

Mineral or chemical fertilizers containing phosphates, various cosmetics and skincare products (excluding pharmaceuticals), sunscreen and sun tanning preparations, and nail care items will be subject to a 5% AKFTA tariff.

Products made from beet sugar, cane sugar, and other types of cane sugar will face an 80% AKFTA tariff.

Salt products containing more than 60% sodium chloride but less than 97%, iodized salt, and other types of salt will be subject to a 50% rate.

Certain goods within groups 04.07, 17.01, 24.01, and 25.01 will have tariff quotas, with specific in-quota AKFTA tariff rates specified in the preferential import tariff schedule. Out-of-quota rates will follow the list of goods subject to special preferential tariffs.

For goods not listed under the new decree, out-of-quota import tariffs will apply according to the current export tariff schedule, preferential import tariff schedule, and relevant absolute tax, mixed tax, or out-of-quota import tax rates at the time of import.

The Ministry of Industry and Trade will oversee the annual import tariff quota list and quantities.

Pangasius exports to EU record unstable growth

Despite being one of the main consumers of Vietnamese Tra fish (pangasius) during the first five months of this year, the EU market's demand for pangasius imports proved to be erratic during the reviewed period.      

After increasing imports of pangasius from the nation by 20% in January, the EU immediately reduced imports in the following two months. In February, the EU imported Tra fish products valued at US$8 million, marking an annual drop of 46%. In March the bloc imported more than 18 million tonnes, down 7% over the same period from last year.

One of the reasons behind this decrease in February was due to the Lunar New Year holiday. However, February was also the month which witnessed the lowest value of pangasius exports to this highly lucrative market over the past three years, since the beginning of 2022.

Frozen pangasius fillets remain a major Vietnamese product being exported to the EU. During the past five months of this year, the bloc bought US$67 million of frozen pangasius fillets, down 8% on-year to make up 11% of the country’s total global exports of this product, accounting for 95% of the pangasius export value to the EU.

Exports of other products such as frozen whole/cut pangasius (under code 03, except fish under code 0304) and value-added pangasius to the EU also witnessed negative growth during the reviewed period, with values ​​reaching nearly US$3 million, down 14%; and close to US$1 million, an annual drop of 34%.

The Netherlands is still the country which imports the most Vietnamese pangasius in the bloc, with an import value of nearly US$2 million being recorded in the first half of June, up 3% over the corresponding period from last year. As of the middle of June, pangasius exports to the Netherlands hit nearly US$21 million, down 9% on-year.

Along with the Netherlands, several other markets such as Germany, Spain, and Belgium recorded positive growth in terms of Vietnamese pangasius imports as of June 15, with a respective value of US$17 million, up 0.3%; US$9 million, up 27%; and US$8 million, up 10% over the same period from last year.

In the first half of the year, Vietnamese seafood exports to these markets enjoyed positive growth of 7%, with pangasius exports surging by 6% on-year.

Although pangasius export turnover to the EU market can be viewed as unstable, in general cumulative seafood exports to this market during the reviewed period still grew impressively. This is as a result of the bloc moving to increase shrimp imports from Vietnam.

The EU market is gradually stabilizing, with the economy ensuring growth and the unemployment rate at a record low.

Market prices and consumption are also gradually stabilizing, with seafood inflation continuing to drop to 2.1% in May. In the second half of this year, pangasius exports to the EU are still expected to increase again after summer vacations end in Europe.

Nam Định agrees to $9 million yarn production and dyeing plant

The Nam Định Industrial Zones Authority has granted an investment certificate for Jinnor (Hong Kong) Limited to develop a yarn production and textile dyeing plant in the province.

To be developed at the Rạng Đông Textile Industrial Park in the Nghĩa Hưng District, the plant will have a total investment capital of US$9 million. Construction is expected to start in the first quarter of 2025 and be completed in October.

Once operational, the plant, which was awarded the certificate on July 8, will produce nearly 50 million square metres of fabric each year.

Headquartered in Hong Kong (China), Jinnor (Hong Kong) Limited has more than 30 years of experience in the field of textile production and fabric trading, supplying many famous brands in 19 countries and territories over the world.

Nam Định is now home to 170 foreign-invested projects with registered capital totalling $4.1 billion.

Large-scale ones include a $120-million project on producing computers and peripheral devices, developed by Quanta Computer Inc, a $84.5 million project by Singapore’s Xingyu Safety Technology and a $100 million project by Singapore’s Sunrise Material to produce high-tech polymer wrap films and a $42-million project by Taiwan’s JiaWei to manufacture plastic and melamine products.

The province said it will continue to make breakthroughs in attracting investment, including foreign investment. Top priority will be given to speeding up administrative reform, simplifying administrative procedures, upgrading infrastructure facilities and improving the quality of personnel resources.

VN needs to develop an ecosystem to expand into lucrative Halal market

It is necessary for Việt Nam to establish a Halal ecosystem on the whole production line, including services to infrastructure and the Government’s support policies, to develop a sustainable industry and expand exports to this lucrative market, experts have said.

Sharing findings about the development of Halal ecosystems around the world, Đinh Công Hoàng from the Institute for South, West Asian and African Studies, under the Việt Nam Academy of Social Sciences, said that Thailand is known as a Halal production hub.

As of April 2024, Thailand, where 8-12 per cent of the population is Muslim, had 160,000 products, 33,000 brands and 14,000 companies receiving Halal certification.

Australia, where Muslims account for 2.4 per cent, has the fastest growing Halal industry in the world, with an average value of 13 billion Australian dollars (US$8.77 billion) per year.

Under the slogan, 'From farm to table' Australian leads the world in Halal meat processing, providing beef and lamp to more than 100 countries around the world.

The Halal ecosystem also helps attract an increasing number of Muslim tourists to Australia, he said.

“Việt Nam has significant opportunities to develop a Halal industry. Fisheries, fruits and vegetables, rice, coffee, tea, pepper, cashew and spices are all potential products,” Hoàng said.

New-generation free trade agreements (FTAs) with stringent markets like the EU, the US and Japan also provide an important platform for Việt Nam to access the global Halal market.

However, the fact is that few Vietnamese enterprises have good understanding of what Halal even means, the process of certification remains complicated and lacks harmonisation with international practices, he said.

It also requires huge investments in production lines, equipment and raw materials to comply with Halal standards.

For the sustainable development of the Halal industry, Việt Nam needs to establish a full ecosystem from production, service to infrastructure and the Government’s policies, said Hoàng.

It is necessary to effectively implement a national project on enhancing international cooperation to develop the Halal industry in Việt Nam and improve awareness about the potential of Halal markets, he said.

He also proposed economic diplomacy with Muslim countries to be promoted together with the signing of FTAs with potential Halal markets.

With the establishment of Việt Nam Halal Certification Authority (HALCERT), Việt Nam needs to implement standardisation, testing and Halal certification for enterprises and signs agreements on mutual recognisation of standards with Muslim counties such as Arab Saudi, Malaysia, Indonesia and Pakistan.

It is also important to establish supply chains for Halal products, he added.

According to the Việt Nam Institute of Strategy and Policy for Industry and Trade under the Ministry of Industry and Trade, Việt Nam is among top 20 in the world in food exports, but has not been in the list of top Halal food producers.

Currently, Việt Nam exports around 20 Halal products, mainly agro-fishery products with small values. Around 41 per cent of provinces and cities have not had Halal-certified products.

For the Government, it is necessary to complete the legal framework to promote the development of the Halal industry, according to the institute.

Industrial zones specialising in Halal products should be planned and developed in provinces with strength in raw materials where other services are also integrated from production, packaging to logistics, marketing and certification.

The national standard systems for Halal products must also be developed.

The strategy for Halal industry development must be based on high-tech platforms such as blockchain, e-commerce and automation to manage the supply chains to access the global Halal market more favourably.

The institution urged enterprises to improve their capacity to meet and be certified with Halal standards together with enhancing trade promotion and brand development.

In late June, the Ministry of Science and Technology proposed the development of a decree on managing Halal products and services with an aim to promote the Halal ecosystem in Việt Nam to create high added-value products for the domestic consumption and exports. That draft is being made public for comments.

The global Halal market was estimated at US$7 trillion in 2022 and is forecast to reach $10 trillion in 2028.

The total population of the global Halal markets is expected to increase from 1.94 billion in 2022 to 2.8 billion by 2050.

There are about 90,000 Muslims in Việt Nam as of June, mostly in An Giang, HCM City, Tây Ninh and Ninh Thuận.

Halal products go beyond meat or just foods. They include almost all products from food, beverages, functional products, pharmaceuticals, cosmetics, textiles, handicrafts and services such as banking, tourism, security, education and training, catering, accommodation and logistics.

The markets for Halal products are diverse from Muslim countries to non-Muslim countries and from developing to developed economies as Halal-certified products meet standards of food hygiene and safety, quality, sustainability and ethical in production and processing. 

VASEP targets seafood exports of $10 billion for 2024

VASEP expects seafood exports in the second half of the year to increase by 15 per cent to over $5.5 billion, bringing exports for the year to nearly $10 billion, up 12 per cent from 2023, Nguyễn Thị Thu Sắc, chairwoman of the Việt Nam Association of Seafood Exporters and Producers (VASEP) has said.

Companies must also diversify export market to avoid dependence on traditional export markets and develop the domestic market.

Although seafood exports have prospered, they continue to face many difficulties due to uncertainties in the world economy, according to Sắc.

Trần Văn Minh, director of Nha Trang Seafoods F89 JSC in southern Bạc Liêu Province, said to address With difficulties and challenges from the world economic downturn and geopolitical conflicts, the company has adjusted its production and business strategies to improve shrimp export efficiency to the US and EU markets.

Along with that, it has been looking into selling into other markets, especially the Asian and Latin American countries.

The company is also paying attention to the raw material of shrimp and production, to create quality export products with high competitiveness, meeting strict standards in the US and EU markets.

Therefore, it has promoted cooperation with farmers and cooperatives via product consumption contracts. At the same time, it has given the farmers supports in terms of techniques, breed selection, animal feed, veterinary medicine, disease control and methods of preserving raw materials after harvests.

VASEP reported that a slight increase in the seafood export value in the first half of this year over the same period, being a positive sign for this industry.

However, the shrimp industry continues to face many challenges as the world economic situation shows no signs of recovery and inflation remains high.

Đỗ Ngọc Tài, chairman of VASEP Shrimp Committee and general director of Tài Kim Anh Seafood Processing JSC, said high inflation in the US market combined with a sudden increase in shipping rates since May have led to Vietnamese shrimp facing strong competition in terms of price compared to Ecuadorian, Indian and Indonesian shrimp. It has caused Vietnamese shrimp to increase by only one per cent over the same period in the US market.

Seafood exports to EU had a higher growth rate, thanks to the recovery from April. The EU market's demand for shrimp imports is expected to increase slightly until the end of the year, especially value-added products, because inventories have decreased significantly.

Meanwhile, Japan is still considered a market with stable import demands, although Việt Nam's shrimp exports in the first half of this year decreased over the same period.

Việt Nam's value-added products in this market are still maintain a better competitive advantage compared to the products from other suppliers such as India and Ecuador. Japan's import demand is expected to increase from September to serve year-end demand, Tài said.

The product with growth prospects is surimi. Việt Nam's surimi export value each year reached $300-420 million, accounting for 4-5 per cent of Việt Nam's total seafood export turnover, said Ngô Minh Phương, director of Việt Trường Co. Ltd.

This product has stable export volumes and consumers love it because of its high nutritional value and reasonable cost, and that it is easy to prepare into many dishes, according to Phương.

Along with seizing opportunities from the market, companies also need to solve challenges in domestic production. For example, the price of Vietnamese shrimp is still quite high due to low farming returns.

The quality of shrimp seeds, farming processes, small farming scales and lack of capital have all affected the production and quality of shrimp. At the same time, infrastructure has not responded requirements on quality product to cause the ponds to not have enough clean water for farming shrimp, said Hồ Quốc Lực, chairman of Sao Ta Food JSC (FIMEX VN).

In the first six months of 2024, Việt Nam's seafood export value reached $4.36 billion, an increase of 4.9 per cent over the same period in 2023, according to VASEP.

Among the top five export markets of Vietnamese seafood products, the US is the largest market, followed by China, the EU, Japan and South Korea.

Favourable conditions in place for stronger fruit exports

Fruit and vegetable exports are forecast to continue going smooth in the time ahead thanks to abundant domestic supply and foreign markets’ growing demand.

The exports brought home US$3.4 billion during the first half of 2024, surging 28 per cent year on year, reported the Ministry of Agriculture and Rural Development (MARD).

The Việt Nam Fruit and Vegetable Association (VINAFRUIT) said durian, dragon fruit, banana and longan were major contributors to exports growth. Shipments to key markets also increased 10-50 per cent from the same period last year.

China, Thailand, and the Republic of Korea (RoK) remain large importers, with their purchases from Việt Nam up 30 – 60 per cent year on year by the end of May. China alone imported about $1.7 billion worth of Vietnamese fruits and vegetables in five months, soaring 33 per cent.

Predicting the continuation of smooth fruit and vegetable exports, VINAFRUIT explained that domestic supply is abundant while demand in both traditional and potential markets is on the upward trend.

In particular, such produce as durian, dragon fruit, pineapple, watermelon, mango, and longan are entering the main harvest season, which will contribute even more to sales to China, the largest market at present.

The association noted that the peak durian harvest season in the Central Highlands - the biggest area of this fruit in Việt Nam - is in September and October. Meanwhile, the country posted record durian exports in the same period last year because the fruit from Thailand ran out of stock.

The impact of El Nino has led to a nosedive in the global dragon fruit output this year. Supply from Mexico and South America for Europe and North America has shrunk but prices increased sharply due to a lean harvest. This is a chance for Việt Nam to dominate those markets.

To improve dragon fruit quality, the south-central province of Bình Thuận approved a programme on dragon fruit production following the Vietnamese Good Agricultural Practices (VietGAP), planning to expand the area adopting the standards to 10,500ha by the end of 2024.

The Mekong Delta province of Tiền Giang is also boosting intensive dragon fruit farming for export, which now covers almost 8,600ha in such districts as Chợ Gạo, Gò Công Tây and Gò Công Đông.

This year, northern Bắc Giang province, the largest lychee cultivation area in Việt Nam, has seen the output plummeting by over 50 per cent from 2023, but revenue is still higher than last year’s thanks to good prices.

VINAFRUIT attributed this result to the highest-ever fruit quality thanks to farmers’ better application of scientific and technical advances and experience, along with authorities’ active preparations such as stepping up trade promotion activities with domestic and foreign partners and enhancing ties with the administrations of border localities to facilitate shipments.

Bắc Giang is currently home to 29,700ha of lychee trees, including 15,600 following VietGAP standards and 82ha following GlobalGAP standards. It exports about 24,785 tonnes of this fruit in 2024, equivalent to nearly 29 per cent of total output, mainly to China and some others like the EU, Japan, Australia, the US and Canada.

MARD said the formation and granting of production and packaging unit codes have also helped improve the reputation of Vietnamese farm produce. So far, as many as 7,558 production unit codes and 1,558 packaging unit codes have been granted.

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