Foreign consumers, especially those having a busy lifestyle, are increasingly interested in Vietnam’s deeply processed aquatic products due to their convenience, experts say.

The Vietnam Association of Seafood Exporters and Producers (VASEP)’s analysis indicated that Vietnam holds a significant advantage in the deep processing of aquatic products. At international seafood exhibitions in the U.S. and the European Union (EU) this year, processed products with added value attracted special attention from customers.

These products, tailored for busy consumers, not only meet consumer needs thanks to their convenience but also bring better profit to businesses.

During a meeting on the seafood industry held on June 10, many agreed that the competitiveness of Vietnam’s food processing stems from its advanced technology and highly skilled workforce. The use of advanced technology in production ensures the preservation of seafood products’ taste while increasing the productivity and quality of high-end products.

VASEP also highlighted that seafood exports are forecast to recover from the third quarter of this year. However, businesses must focus on diversifying markets and products and enhancing promotion efforts.

VASEP’s figures show that as of May this year, the country’s export revenue reached nearly US$3.6 billion, a 6% increase against the same period of the previous year.

HCMC seeks to cut 30% off public investment project procedures

HCMC has mandated a 30% reduction in the time required for handling procedures related to public investment projects.

Phan Van Mai, chairman of the city’s People’s Committee, recently issued a directive addressing delays caused by subjective reasons, applying to various city departments.

Leaders of the city-managed construction and investment project boards are instructed to expedite project timelines and ensure prompt processing of related procedures. They are also tasked with guiding contractors and executing units to maintain progress.

The Department of Planning and Architecture, the Department of Natural Resources and Environment, and the Department of Health are to review and resolve paperwork issues. These departments will collaborate with project investors to advance stalled steps.

The Department of Home Affairs and the Department of Planning and Investment will identify organizations and individuals responsible for delays, recommending measures to hold them accountable.

The Department of Planning and Investment will also work with project investors to propose reallocations of funds from disbursement-delayed projects to those that can accelerate disbursement.

As of May 30, HCMC had disbursed nearly VND6.9 trillion, achieving 8.7% of its 2024 plan. The primary reasons for lower-than-expected disbursement include a sand shortage and land clearance difficulties.

For 2024, the city’s public investment capital totals VND79.2 trillion, with VND3.7 trillion from the central budget. Most of the funds are allocated to infrastructure, transportation, urban development, health, and education projects.

Pepper association warns of lost goods during export

The Vietnam Pepper Association and Spice Association (VPSA) has issued a warning about some members of the association losing substantial volumes of pepper during export.

According to importers, the quantity of goods they received is less than what was specified in the contract. However, the weight of container, including the goods inside, matches the documented weight at the port when it was unloaded.

Export companies suspected the loss could occur while containers were waiting for being shipped at the port.

The shortage of goods has affected the trust of international partners and customers in local logistics and maritime transport system and the reputation of exporting companies.

In addition, businesses have to spend more money enhancing security, insuring goods, and handling cargo losses.

VPSA requests businesses to report incidents to the agency, allowing them to have foundation to work with competent authorities.

Preliminary statistics of VPSA showed that in May 2024, Vietnam exported 31,357 tons of various types of pepper with export turnover reaching US$141 million.

The U.S. continued to be Vietnam’s largest pepper buyer last month, reaching 7,692 tons, a 2.4% increase against the previous month.

Seven tons of mango bound for Australia after irradiation

Seven tons of fresh mango will be exported to Australia after Toan Phat Irradiation Co. (TPI) has irradiated the fruit.

TPI has been certified by BICON (Australian Biosecurity Import Conditions), an agency under the Australian Department of Agriculture, Fisheries, and Forestry (DAFF), to provide irradiation service.

TPI conducted the mango irradiation in coordination with the Plant Protection Department under the Ministry of Agriculture and Rural Development.

DT-PRO Co. Ltd. is responsible for exporting this mango shipment to Australia.

According to TPI, the entire mango volume was found free of insects, diseases and other biosecurity concerns of interest to Australian authorities.

The Vietnamese Trade Office in Australia emphasized that to meet export requirements, mangoes must be sourced from Vietnam and free from insects, diseases and contaminants such as leaves, twigs, soil, weed seeds, debris, and other plant materials.

Currently, four types of fresh fruit from Vietnam are permitted for export to Australia: mango, longan, lychee and dragon fruit.

Vietnam’s fruit and vegetable exports reached over US$1.28 billion in the first quarter of this year, a 30.8% year-on-year increase, according to the General Department of Vietnam Customs. Exports of fruits and vegetables to Australia alone totaled nearly US$26 million in January-March, up by 36% against the year-ago period.

State budget revenue from trade activities grows 7.4% in Jan-May

State budget collections from the country’s import-export activities in the first five months of this year amounted to VND165.7 trillion, accounting for 44.2% of the full-year target and expanding by 7.4% year-on-year, according to the General Department of Vietnam Customs.

In May, total import and export turnover rose by 9.1% over the previous month to US$66.62 billion. The fruit and vegetable export sector saw robust export growth, while significant increases in imports were observed in crude oil, computers, electronics, machinery, equipment, tools, and parts.

Total exports edged up by 5.7% against the previous month to US$32.81 billion. The import bill was US$33.81 billion, up by 12.7% versus the month earlier. Therefore, the country had a trade deficit of US$1 billion in May.

In January-May, total foreign trade amounted to US$305.5 billion, up by 16.6% against the same period last year, with exports accounting for US$156.77 billion, up by 15.2% year-on-year, and imports US$148.76 billion, up by 18.2%. Therefore, the nation got a trade surplus of US$8 billion.

Between January and May, the customs handled 6,256 violations involving foreign trade, with a total estimated value of goods involved reaching VND8.4 trillion. Authorities took legal action against four cases and proposed legal proceedings against 53 others.

SJC Gold Bars are now available to buy online

Vietcombank has launched an online service for customers to register to purchase SJC gold bars directly on its website – and gold will only be sold to those who register online.

As of Wednesday, customers can register to buy SJC gold bars at their desired location and receive a confirmation with details about the time and place for payment and collection, eliminating the need to queue and get transaction numbers in person.

Vietcombank notes that starting June 12, the bank is only providing SJC gold bar sales to customers who register online through its website. The registration period for purchasing SJC gold bars online is daily from 9am to 4pm, excluding weekends and public holidays. The payment and collection time at Vietcombank's SJC gold bar sale points are from 1.30pm to 4pm.

After registering online, customers must visit the transaction location per the confirmation details. If customers are more than 30 minutes late, Vietcombank will cancel the appointment to serve the next customer.

The gold price will be the rate listed by Vietcombank at the time of payment and collection at Vietcombank's locations.

According to Vietcombank, this solution offers convenience, speed, safety and security for customers. They can now use personal electronic devices to register to purchase SJC gold bars without waiting in line, thus saving time. Customer information will only be used for the transaction when they visit Vietcombank’s SJC gold bar sale points.

The State Bank of Vietnam has committed to stabilising the market and controlling the domestic and international gold price gap through comprehensive measures, which are already showing initial success. The central bank has warned against spreading false information about a gold shortage, noting that some individuals have hired others to queue and buy gold to inflate prices, causing market instability and economic harm.

In collaboration with the police, the State Bank is investigating and strictly handling market manipulation and speculation. It will continue to supply SJC gold bars to meet legitimate needs while actively combating hoarding and speculation. Inspections are underway to uncover any violations by credit institutions and businesses involved in gold trading, particularly in Hà Nội and HCM City.

Citizens are advised to remain vigilant and not be misled by those with malicious intentions. 

Vietnam’s auto sales in May increased 6% from the previous month to 25,794 units, as dealers rolled out stimulus measures to spur consumption, according to the Vietnam Automobile Manufacturers’ Association (VAMA).

Of these, the sales of passenger cars rose 6% against April to reach 18,235 while commercial vehicle deliveries grew 7% to 7,292. In the meantime, those of special-purpose vehicles contracted 4% to 267 autos.

In terms of vehicle origins, nearly 12,000 locally-assembled cars were sold in the month, up only 0.02%. Deliveries of completely-built units (CBUs) expanded 12% to 13,809 over a month earlier.

During the five-month span, VAMA members sold a total of 108,309 autos, with the sales of domestically produced units falling 14% and imported vehicles rising 8% year-on-year.

Other brands like Audi, Jaguar Land Rover, Mercedes-Benz, Nissan, Subaru, Volkswagen, Volvo, Haval and many more refused to disclose their figures.

There were also no sale results from Vinfast as the Vietnamese automaker has announced its quarterly from August 2023 as required by the US stock market.

Based on reports from VAMA and TC Group, 127,643 automobiles were delivered to customers during January-May.

Experts said the sales of CBUs had a better growth than those of domestic ones since the imported vehicles with a localisation rate of 40% or more are entitled to a 0% tariff under several free trade agreements that Vietnam has signed. Besides, Vietnamese dealers ran various promotional campaigns, including giving discounts, supporting registration fees and offering gift packs, helping imported units attract more buyers.

They added that the Government should roll out rational measures to create competitive edge for domestically-assembled vehicles for a long term./.

Agri Vietnam 2024 opens in Ho Chi Minh City

The 4th International Exhibition and Conference on Machinery, Equipment, Supplies, Chemicals and Agricultural Products in Vietnam – Agri Vietnam 2024 opened in Ho Chi Minh City on June 12, attracting over 100 exhibitors from 14 countries and territories.

The event, held annually by the Minh Vi Exhibitions and Advertisement Services Co. Ltd. (VEAS) with support from the Ministry of Agriculture and Rural Development, is a rendezvous for producers, suppliers, distributors, and oranganisations in the agricultural sector to meet and seek business opportunities.

The three-day Agri Vietnam 2024 showcases advanced, efficient and safe products and solutions in the agricultural sector. This year, it features special display areas to honour high-quality agricultural products of the country, including one for export rice and another for items under the One Commune, One Product (OCOP) programme.

Coming to the exhibition, enterprises and producers can learn about the latest agricultural products, techniques and technologies while exchanging experience in promoting green and circular economy towards sustainable development.

Specifically, a seminar hosted by leading industry experts is expected to help businesses update the latest technology trends and market developments. Participants can get connected with one another to seek partners and sign contracts through business-to-business events.

The exhibition is expected to attract more than 4,000 domestic and international visitors./.

HCMC Chairman congratulates new EuroCham Chairman

Chairman Phan Van Mai congratulated Mr. Dominik Meichle on his recent election as Chairman of EuroCham and highly appreciated EuroCham's activities in contributing to the strengthening of economic and trade relations between Vietnam and Europe.

On June 11, the Chairman of the Ho Chi Minh City People's Committee held a working meeting with a delegation of the European Chamber of Commerce in Vietnam (EuroCham) led by Mr. Dominik Meichle, Chairman of EuroCham.

At the meeting, Mr. Dominik Meichle introduced to Mr. Phan Van Mai the program of the upcoming Green Economy Forum and Exhibition (GEFE) 2024 organized by EuroCham in Ho Chi Minh City. Chairman Dominik Meichle highly appreciated the position and role of Ho Chi Minh City as the economic center of the Southern region, so GEFE is an opportunity to attract a large number of guests and investors.

According to Mr. Dominik Meichle, green growth, renewable energy and energy saving have played a key role in GEFE's activities in recent years. One of the highlights of GEFE is the student exchange day, helping students update their knowledge on global hot issues and students can voice their proposals while participating. In addition, there will be a job fair where businesses can meet students at the event.

Chairman Phan Van Mai said that he will accompany EuroCham in organizing a successful GEFE 2024. According to him, Ho Chi Minh City is not only the host of GEFE but also the beneficiary of the GEFE’s outcomes. Therefore, related departments and agencies of Ho Chi Minh City will work closely with EuroCham to contribute to the city's growth goals.

Mr. Phan Van Mai also hoped that with more than 1,400 members in Vietnam, EuroCham would have more activities to connect and support small and medium-sized enterprises, contributing to the development of Ho Chi Minh City in particular and the Southern region in general, especially in terms of green growth.

Ho Chi Minh City and other Southern localities will do their utmost to create favorable conditions for European investors to continue investing and doing business in the region, said Chairman Phan Van Mai.

Regulations on bad debt trading, settlement revised

The State Bank of Vietnam (SBV) has issued Circular 03/2024/TT-NHNN on bad debt trading and settlement of the Vietnam Asset Management Company (VAMC) to make the work more effective.

The new circular amends Circular 19/2013/TT-NHNN and the more detailed measures will be effective from July 1 this year.

Under the new circular, the VAMC, which is a wholly State-owned entity under the management and supervision of the SBV, can buy only non-performing loans (NPLs) after assessing that those loans can be fully recovered and the collateral can be sold or the borrowers of the NPLs have the prospect of recovering their ability to repay the NPLs.

The new circular also amends and supplements regulations on purchasing NPLs at market value of the VAMC. Accordingly, based on debt purchase plans at market value approved by the SBV, financial capacity, economic efficiency and market conditions, VAMC will decide and will be responsible for bad debt purchase according to market value.

However, VAMC is only allowed to buy a bad debt from credit institutions and foreign banks at the market price, after it hires qualified price appraisal organisations to determine the market price of the debt, besides evaluating economic efficiency, risks and ability to recover capital from the bad debt purchase.

In addition, VAMC must also plan feasible measures to handle the debt and collateral before the purchase.

Though the asset quality of banks in Vietnam was under control by the end of 2023, experts said more attention should be paid to the issue this year, as bad debts are rising.

Experts made the recommendation because, while existing bad debts have not been resolved yet, additional new bad debts are expected to surge when Circular 02/2023/TT-NHNN on allowing commercial banks to reschedule the debt repayment period and maintain the debt group for certain sectors, expires at the end of this month.

The SBV has recently proposed extending Circular 02/2022/TT-NHNN to the end of 2024.

The extension is expected to reduce pressure on enterprises which are struggling to service their debts, and support economic recovery under the current challenging economic situation.

An additional six months is welcomed by most businesses, as well as the banking sector, both of whom have been concerned over businesses' ability to meet the payment deadline of June 30.

Dr Tran Duc Thuc from Ho Chi Minh City University warned that provisions for risky debts were still increasing and in spite of support, banks' bad debts were still rising.

According to Thuc, bad debt will increase in 2024 when corporate bonds come to maturity. The sale of assets is also difficult, so firms do not have money to service debt or to pay bonds. If banks are not allow to extend the payment deadline of existing debts, the debts will be transferred to a worse debt group./.

Vietnam among six ASEAN countries with good economic growth: Maybank

The gross domestic product (GDP) growth of six ASEAN countries - Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam - will recover to 4.5% and 4.7% in 2024 and 2025, respectively, from 4% in 2023, according to Maybank Research Pte Ltd forecast.

In a report 'ASEAN Frontiers: The New Trailblazers', researchers from Maybank said the recovery in GDP growth will be driven by manufacturing and exports, particularly electronics, which are supporting a modest growth recovery in the first half of the year.

Maybank also said that artificial intelligence (AI), data centre boom, and broadening global electronics demand are brightening the trade and foreign direct investment (FDI) outlook.

Despite elevated interest rates, strengthening economic activities have resulted in loan growth picking up across ASEAN, Maybank said.

Visa waivers in Malaysia, Thailand and Singapore and a ramp-up in flight capacity are boosting Chinese tourists to ASEAN.

Commenting on ASEAN’s inflation rate, Maybank said this has fallen sharply from its highs in 2023 as supply chain disruptions from the Russia-Ukraine crisis.

ASEAN central banks are however constrained from trimming policy rates, as a resilient US economy and ‘higher for longer’ US interest rates have increased pressures on emerging market currencies.

According to Maybank, it is expected that the US Federal Reserve will cut the funds rate by only 50 basis points in 2024, starting from September.

Maybank also noted that ASEAN has emerged as one of the preferred destinations as multinational companies (MNCs) diversify their manufacturing supply chains away from China.

FDI approvals and applications to several ASEAN countries including Malaysia, Thailand, Vietnam and Indonesia, have risen sharply.

Meanwhile, private investment has strengthened in the first quarter of this year in Malaysia, Vietnam, Thailand and Indonesia, suggesting that the recent surge in FDI pledges is materialising.

ASEAN countries are securing investments not only from the US and its allies, but also from China, as the country’s FDI has increased strongly in Vietnam, Thailand and Malaysia since the reopening.

Malaysia appears to be drawing the biggest investments in data centres as AI spurs an investment boom in this sector across ASEAN. It has drawn investments from Google, Nvidia, GDS and Equinix while Thailand has secured investments from Amazon, Microsoft and Google.

Meanwhile, Indonesia has attracted Amazon, Alibaba and Edgnex, among others and Vietnam’s nascent market has received commitments from the likes of Keppel, Alibaba and Gaw Capital./.

Surge in newly opened securities accounts recorded in May

The number of newly opened securities accounts in Vietnam saw a substantial increase last month, reversing the previous decline in April, according to the Vietnam Securities Depository and Clearing Corporation.

In May, there was a notable increase in the number of new securities accounts opened by domestic investors in the country, with a total of 132,010 accounts opened.

Specifically, 131,839 accounts were opened by individual investors and 171 accounts were opened by institutional investors.

Although there was a strong recovery, the number of new securities accounts in May 2024 remained lower compared to the figure in March, which was 163,621 accounts.

Also in May, foreign investors opened 210 new accounts. Among them, 217 accounts were opened by individual investors, while institutional investors saw a decrease of seven accounts.

Last month, the market benchmark VN-Index increased by 5.9%, the HNX-Index rose by 8.9% and the UPCoM-Index grew by 7.2% month-on-month.

The rise in the VN-Index was mainly attributed to the strong net profit growth of listed companies in the first quarter. The market also benefited from bottom-fishing demand, following a significant decline in April.

The VN-Index has risen by 13% since the beginning of the year.

However, the market's recovery in May was accompanied by weak liquidity, indicating cautiousness due to factors like increasing exchange rate pressure and domestic interest rates.

The average trading value on all three exchanges decreased by 10.6% compared to the previous month but increased by 71.2% over last year, reaching 23.1 trillion VND per session (908.6 million USD).

Of which, the Ho Chi Minh Stock Exchange (HoSE)’s average trading value was 20.2 trillion VND per session, while the Hanoi Stock Exchange (HNX)’s was 1.9 trillion VND per session, down 12.9% from April. And UPCoM's was 1.1 trillion VND per session, a 53.9% increase over the previous month.

Experts attributed the strong increase in average trading value on the UPCoM exchange to positive developments relating to Binh Son Refining and Petrochemical Company Limited (BSR).

BSR has shown good growth prospects, with increased cash flow and improved business production.

Notably, the company approved an expansion project for the Dung Quat refinery, aiming to increase crude oil processing capacity to 171,000 barrels per day by 2028. It plans to enter the petrochemical sector in the future.

On the stock market, BSR intends to transfer 3.1 billion shares from UPCoM to HoSE./.

Top 10 reputable commercial banks for 2024 unveiled

The Vietnam Report JSC on June 10 unveiled its annual list of Vietnam’s Top 10 Reputable Commercial Banks for 2024.

The honorees include Vietcombank, Techcombank, Vietinbank, BIDV, MBBank, ACB, Agribank, VPBank, HDBank, and TPBank.

A separate list highlights the top 10 prestigious private joint stock banks, featuring Techcombank, ACB, VPBank, HDBank, TPBank, Sacombank, VIB, SHB, LPBank, and SeABank.

Vietnam Report’s evaluation process considers a variety of factors, including financial capacity reflected in the most recent financial statements of each bank, media reputation assessed through Media Coding methodology, and survey results from relevant stakeholders, with data updated to May 2024.

A survey conducted by Vietnam Report indicates that a significant majority (67.8%) of experts and banks anticipate industry growth in the second half of this year. This represents a substantial increase compared to the 14.3% recorded in the same survey for the latter half of 2023, surpassing growth projections recorded in both 2021 and 2023./.

Forum promotes Korean ICT investment to central region

A forum was held on June 10 in the central province of Quang Nam to promote the cooperation between the Republic of Korea (RoK) and Vietnam in the information and communications technologies (ICT) sector.

The forum saw the participation of representatives from departments and agencies of central provinces, including Thua Thien-Hue, Quang Ngai and Quang Nam and Da Nang city together with 40 Korean ICT companies.

Aiming to prepare and create opportunities for Korean ICT companies to invest in the central region of Vietnam, as well as promoting cooperation between ICT businesses of the two countries, participants exchanged information on ICT investment environment, preferential policies of localities, their ICT infrastructure.

Speaking at the forum, director of the central region’s investment promotion centre Le Minh Duong said that central localities including Da Nang, Quang Nam, Thua Thien-Hue and Binh Dinh now have technology centres that have attracted foreign and domestic investors.

The RoK and Singapore are the two countries that have largest investments in the region, he said.

To attract ICT investors, the localities have offered incentives in terms of corporate tax, import-export tax, land use fees and land lease, he said.

Director of Da Nang’s Department of Information and Communications Nguyen Quang Thanh said that for year, information technology (IT) has been identified as one of five key economic sectors and priorities in the development of the city towards 2030, with a vision to 2045.

Last year, the city’s IT revenue reached 36.57 trillion VND (1.43 billion USD), marking a year-over-year increase of 8.1%. Its software export turnover reached 147.8 million USD, up 12% compared to 2022.

The digital economy made up 20% of the city's GRDP. Da Nang currently has 2.3 digital technology businesses for every 1,000 people, ranked 2nd in Vietnam after Ho Chi Minh City, and three times higher than the national average, he added./.

Recovering demand for aquatic products comes with challenges: conference

The demand for aquatic products is expected to pick up from the third quarter of 2024, with many associated challenges requiring advertisements and the diversification of business products and markets, insiders have said at a conference held by the Vietnam Association of Seafood Exporters and Producers (VASEP) in Ho Chi Minh City on June 10.

VASEP General Secretary Truong Dinh Hoe said Vietnam’s seafood exports were valued at about 3.6 billion USD in the first five months, up 6% year-on-year and forecast to hit 4.4 billion USD in the first half.

According to the association, the sector has strength in deep processing. To busy consumers with limited time for cooking, deep-processed seafood products are gaining popularity. They also promise higher profits for businesses.

However, the slow and cautious recovery of markets, competitive pressure on export prices, and challenges in domestic processing, among many other factors, are expected to continue to impact the sector’s exports this year.

Do Ngoc Tai, Director of Tai Kim Anh Seafood Joint Stock Company, analysed that in the first months of the year, the overseas shipments of shrimp saw a slight increase compared to the same period in 2023. However, in major markets such as the US and the EU, high inflation has forced consumers to tighten their belts, while conflicts in various regions have caused a surge in sea freight rates, adding pressure to the costs.

Cao Thi Kim Lan, Director of Binh Dinh Fishery Joint Stock Company, said processing and exporting seafood products have been extremely challenging due to the scarcity of material sources. This year, the risk of the shortage is even greater, as hot weather conditions might lead to decreased exploitation yields.

Nguyen Thi Thu Sac, Chairwoman of VASEP, noted despite numerous global challenges, Vietnam still aims for 10 billion USD from aquatic product exports this year. To achieve this goal, she recommended businesses adapt and adjust their operations to the market context, with a focus on diversifying export markets and promoting domestic market development. It is also essential to develop appropriate development strategies, step up branding activities, and stay updated with market information.

Deputy Minister of Agriculture and Rural Development Phung Duc Tien, meanwhile, highlighted the significant role of aquaculture as well as aquatic exploitation, processing, and export in the country’s overall agricultural development. It is estimated that the seafood sector contributes 28% to the total agricultural production value, with its export turnover surpassing 10 billion USD at some points.

Given the domestic and global challenges, he suggested the industry work on important tasks such as addressing illegal, unreported and unregulated (IUU) fishing, enhancing trade promotion, and regularly updating market information to enable farmers and fishermen to organise production and exploitation rationally and efficiently./.

Criteria crucial for developing the green economy, says Deputy PM

Deputy Prime Minister Trần Hồng Hà, Head of the National Steering Committee on Green Growth, has said criteria are urgently needed in order to develop the green economy.

He spoke at a meeting on promulgating the National Green Economic Sector System standards at the Government headquarters on Monday.

Speaking at the meeting, the Deputy PM emphasised that green criteria are very important for Vietnamese businesses to attract investment and integrate internationally.

Building a national green economic sub-sector system is needed to clarify issues related to political and legal bases, as well as awareness and approaches to existing economic sectors and emerging green economic sectors, he said.

While showing appreciation for the Ministry of Planning and Investment (MPI)'s responsibility in implementing its green growth strategy, the Deputy PM emphasised the need for integrating green criteria into the national economic system to implement policy as well as strategies, plans and laws on the green economy and the circular economy.

The classification system not only aims to incorporate green criteria into the current economic system, but also integrates a number of new economic sectors, such as investing in and restoring the natural environment, using new technology to provide environmental treatment services and renewable energy.

The Ministry of Natural Resources and Environment (MoNRE) is also urgently researching a set of national green criteria to submit to the Prime Minister for promulgation and as a basis for ministries and branches to classify industries and economic sectors.

The MPI is building a national statistical system on the green economy as a basis for monitoring and evaluation. The system focuses on a number of important indicators such as energy consumption for production compared to GDP, emissions index per GDP, State and social spending on the green economy, climate change and the environment.

Previously, according to a report from Deputy Minister of Planning and Investment Nguyễn Thị Bích Ngọc, the ministry was assigned the task of building a set of scientific criteria for green classifications in line with international practices. Supporting agencies have a more specific legal basis in selecting investment projects in ministries, branches and localities while quantifying and evaluating green growth.

Creating a green classification system is popular globally, with many countries and intergovernmental and non-governmental organisations making similar moves.

The two main goals that serve as a basis for policy building include issuing specific preferential policies or supporting access to green finance and green credit.

The MPI has also studied a number of documents issued by the MoNRE, the State Bank of Vietnam and the Ministry of Finance.

Currently, many other countries are taking a variety of approaches, generally defining criteria from top to bottom or specific to a single sector.

The MPI proposes a 'top-down' approach in which a system of national green economic sectors will be built corresponding to current economic sub-sectors and associated with international criteria.

"This green economic sector system ensures harmony and compatibility with Việt Nam's economic sector and a comprehensive, top-down approach. The national green economic sector system will build qualitative indicators that serve as the foundation for ministries and branches to continue to issue different quantitative indicators, depending on the classification purpose of each industry," said Ngọc.

At the meeting, representatives from the Ministry of Natural Resources and Environment, the Ministry of Industry and Trade, the State Bank of Vietnam and the Ministry of Justice also focused on discussing and analysing principles and criteria for building a green economy, attracting investment into the green economy, green classifications and building a national industry system.

Some said that there needs to be a common legal basis to adapt green standards for different industries, because each field has different technical properties. 

Ministry issues an official dispatch to push public investment disbursement

The Ministry of Planning and Investment has issued an official dispatch, urging organisations to push ahead with the disbursement of public funds, as figures show progress is still slow in a number of ministries and localities.

By the end of May, the public investment disbursement was estimated to be at VNĐ148 billion (US$5.8 million), or just 22.34 per cent of the Prime Minister’s plan.

However, 33 ministries, central-level agencies and 29 localities still have disbursement rates lower than the country average.

Minister of Planning and Investment Nguyễn Chí Dũng asked relevant ministries and localities to drastically speed up the process to reach the target of realising 95 per cent of the public investment levels being allocated in 2024.

Dũng urged steering committees and working groups to remove difficulties and roadblocks currently hampering the disbursement process. Disbursement plans should be developed monthly and quarterly together with enhanced accountability, he said.

The focus should also be on removing difficulties related to the supply of building materials to meet the demand of publically-invested projects.

Each and every project should be evaluated for proper adjustment of capital and if projects are stagnant, funds need to be transferred to other more dynamic ventures.

Another key point within the official dispatch was to stress better coordination between relevant organisations to speed up the process of receiving, negotiating, signing and ratifying official development assistance (ODA) loans.

Supervision should be enhanced to ensure efficiency of ODA-funded projects. 

Gemadept to raise capital by up to 33%

Gemadept Corporation plans to increase its charter capital by up to 33 per cent through the issuance of over 100 million shares.

Specifically, the company intends to offer up to 103.5 million new shares at a price of VNĐ29,000 per share (US$1.14). The rights ratio will be 3:1, allowing shareholders holding three existing shares to purchase one new share.

The proposed offering price represents a 65 per cent discount to Gemadept's current market price of VNĐ83,400 per share as of June 7. The book value per share was recorded at VNĐ28,050 as of the end of 2023.

If approved by the State Securities Commission (SCC), the share issue will go ahead immediately and all the issued shares will not be subject to any transfer restrictions.

It is estimated that Gemadept can raise over VNĐ3 trillion with the move, bringing its charter capital to VNĐ4.14 trillion - a 33 per cent increase.

Gemadept plans to allocate the additional funds to purchase fixed assets, repay bank loans and increase its capital contribution to Nam Đình Vũ Port JSC, in which it currently holds a 60 per cent stake.

In its business plan for 2024, it has set a revenue target of VNĐ4 trillion, a four per cent increase from 2023 levels. However, the company's profit before tax is expected to decline by 46 per cent to nearly VNĐ1.7 trbillion, primarily due to an estimated 82 per cent drop in profit from the divestment of subsidiaries.

Despite the decline in profits, Gemadept plans to distribute a cash dividend of 22 per cent for the 2023 fiscal year, equivalent to VNĐ2,200 per share.

Analysts remain optimistic about the company's growth potential in the coming years, citing its two major projects - the Phase 2 expansion of Gemalink Port and Phase 3 of the Nam Đình Vũ project - as key drivers.

Robust infrastructure, customer demand reshape transportation market

Recent robust infrastructure development and customer demand are reshaping the transportation market towards diversifying products and improving services quality, providing significant opportunities for railway and waterways which are holding modest market shares.

Statistics of the Ministry of Transport showed that railway holds a market share of less than 1%, inland waterway less than 20%, while the remainder of the transport sector is road and aviation.

However, after years of rapid growth road and air transport are facing issues of sustainability.

According to Luong Duyen Thong from the Department for Roads of Vietnam, the number of contract transport vehicles has increased by 70% since 2020. However, some are found not to comply with operational regulations, affecting the tax collection and investment efficiencies, while breaking the planning of transport routes and increasing the risk for traffic congestion and accidents.

The aviation industry of Vietnam has been facing a serious shortage of aircrafts from the beginning of this year due to an engine recall of Pratt 7 Whitney for their PW1100 engines on A321Neo aircraft operated by Vietnam Airlines and Vietjet. Together with rising fuel costs, the aviation industry is under significant pressure.

In that context, railway and waterway transport have significant opportunities to expand market share.

During the holidays on April 30 and May 1, the number of railway passengers increased dramatically. The railway has been making efforts to improve both facilities and service quality and has emerged as a viable alternative to expensive air travel. The railway industry is also looking to increase the amount of freight it carries through the participation in international transport networks.

Vietnam now has nine international freight stations including Lao Cai, Yen Vien, Hai Phong, Dong Dang, Giap Bat, Da Nang, Song Than, Kep and Cao Xa.

The Vietnam Institute of Transport Strategy and Development predicted that by 2030, the demand for international freight railway transport could reach 8.9 million tonnes per year. However, the current railway infrastructure can handle only 4-5 million tonnes per year, posing significant challenge for the industry in upgrading the system.

Deputy Minister of Transport Nguyen Danh Huy said that the focus will be on simplifying cargo loading and unloading procedures, reducing logistic costs and time, and increasing the number of international freight stations.

Waterway transport is also expanding its market share with the development of the ports system and logistics network.

According to the Vietnam Maritime Administration, cargo transported by way of water increased by 13.9% to 416 tonnes in the first two months of this year, among which, waterway and seaway transport saw the highest increasing rates of respectively 21% and 18.1% over the same period last year.

However, the transport ministry said that marine transport is under pressure from rising global tensions, climate change impacts and rising input costs.

The Vietnamese Government has approved the national plan for road, airport, seaport, waterway and railway systems through to 2030, aiming to increase transport connectivity, reduce logistic costs and improve the competitiveness of Vietnam’s goods. The ministry is also studying the investment policy for a North - South high-speed railway system./.

Vietjet increases flights between Nha Trang and Busan

Joining the vibrant summer season, starting from July 19, Vietjet will double the frequency of flights between Nha Trang and Busan (the Republic of Korea), providing more travel options between major cities of the RoK and Vietnam with attractive promotions.

Specifically, the flight frequency on the route connecting Nha Trang and Busan will increase from two to four per day, raising the total number of Vietjet flights between Vietnam and the RoK to 42 flights per day. The new flight from Nha Trang to Busan will depart at 1:50 AM (local time) and arrive at Gimhae International Airport (Busan) at 8:30 AM (local time), while the return flight from Gimhae International Airport (Busan) will depart at 10:00 AM (local time) and arrive in Nha Trang at 12:40 PM (local time).

Passengers can easily fly from Nha Trang to Busan and other Vietjet international routes with tickets priced from 0 VND every Friday on the website www.vietjetair.com and Vietjet Air mobile app from now until December 31, 2024.

Firms advised to capitalise on cross-border e-commerce to boost exports

Manufacturing enterprises, including small and micro-sized businesses, can leverage e-commerce channels to directly sell goods to international consumers, increasing revenues and market presence, experts have suggested at a recent seminar on boosting Vietnam’s exports through cross-border e-commerce systems.

At the event held in Ho Chi Minh City on June 7, Ta Hoang Linh, Director of the European-American Market Department under the Ministry of Industry and Trade, said that given Vietnam’s deepening integration into the global economy and opportunities from new-generation free trade agreements, the participation in online export-import systems and cross-border e-commerce channels is an effective solution, opening up many chances for Vietnamese enterprises.

A 2023 report by the ministry’s Vietnam E-Commerce and Digital Economy Agency showed that retail e-commerce revenue grew by 25% compared to 2022 to reach 20.5 billion USD, placing Vietnam among the top 10 countries with the highest e-commerce growth rates in the world.

Tran Phu Lu, Director of the HCM City Investment and Trade Promotion Centre (ITPC), noted that the type of trade helps businesses reduce operational and expansion costs, optimise goods management, warehousing, and delivery, and take advantage of global shipping partners, among other benefits.

However, they must clearly understand and comply with regulations on consumer protection, customer data security, taxes, customs, copyrights, branding, and intellectual property rights as well as transaction policies, he said.

Tran Van Phuong Trinh, a senior account manager at Amazon Global Selling Vietnam, added that the number of products sold by Vietnamese enterprises on Amazon has increased by over 300% in the past five years. Through the e-commerce platform, Vietnamese products could reach more than 2 billion people each year in markets across North America, Europe, and many other countries such as Australia, Japan, Singapore, and India.

According to her, small and micro-sized enterprises only need goods and production processes that meet market standards to utilise e-commerce channels to directly sell to consumers worldwide. With the support of technology and e-commerce platforms, they can actively receive orders from anywhere, at any time, and manage and operate their sales activities effectively./.

Experts stress need to promote fruit sales, regulate export markets as peak season arrives

Vietnam's seasonal fresh fruits are about to come to peak harvest and the volumes offer perfect opportunities to boost exports.

Localities, ministries, branches and businesses will soon be pushing trade promotions for fruits such as lychee, rambutan, longan, durian, and avocado.

Nguyen Thanh Binh, Chairman of the Vietnam Fruit and Vegetable Association, said with the huge abundance of vegetables and fruits during harvest season, now should be the time to streamline promotions. Trading transactions will be quick, but consumption of large quantities of fresh fruits and vegetables for a certain period puts great pressure on the market.

According to Binh, the fresh fruits and vegetables are really special products but need to be sold quickly since after harvesting, they still continue the natural growth process, and they will spoil fast. Therefore, if they are not sold promptly, it will cause an economic loss to farmers and traders.

Hai Duong, one of 11 provinces in the Red River Delta region, has eight key agricultural products, including the most famous fruit, lychee, growing over 8,850 hectares, with Thanh Ha district alone with 3,285 hectares, according to Vu Thi Kim Phuong, Deputy Director of Hai Duong province's Department of Industry and Trade.

Every year, the lychee yield in the whole province is between 55,000-60,000 tonnes. However, due to weather effects, the province's lychee yield is estimated to fall to 40,000-45,000 tonnes this year.

Along with the domestic market, Thanh Ha lychees have been exported abroad to China, Japan, France, the US, the Republic of Korea, Malaysia, Taiwan (China), Belgium, the Netherlands, Thailand, Singapore, and the Middle East.

Lychee exports still face some difficulties in market information and expansion and risks in international payments.

In addition, agricultural product exports now are mainly fresh or raw, so they do not bring in high economic values and many exporters do not have warehousing facilities.

Therefore, consumption of fresh lychees is being promoted very strongly. After the lychee and longan crops, the harvest season of other agricultural produce also comes, such as passion fruit, jackfruit and dragon fruit.

Tran Quang Tan, Director of Bac Giang province's Department of Industry and Trade, said that the province's lychee yield this year was expected to be nearly 100,000 tonnes.

Lychee harvest season ends at the end of July, with the sale price ranging from 25,000-70,000 VND per kilo.

Meanwhile, Bien Tan Tai, Deputy Director of Binh Thuan province's Department of Industry and Trade, also said Binh Thuan would harvest dragon fruits from June to September. The dragon fruit yield this year was estimated to reach about 170,000 tonnes.

Some gardens had since May started to harvest dragon fruits, so the selling price of dragon fruit was high at 20,000 - 21,000 VND per kilo.

However, Tai is worried the selling price of dragon fruit will fall over the coming months particularly when China starts harvesting its fruit, from June until November.

This is also the harvest season for other Chinese fruits such as oranges, tangerines, apples, pears, and grapes.

Vu Ba Phu, Director of the Vietnam Trade Promotion Agency (Vietrade) under the Ministry of Industry and Trade, said that localities and associations needed to develop trade promotion plans for seasonal agricultural produce to avoid difficulties in consuming those products during the harvest season.

They should also regularly work with businesses to grasp the need for support in export and consumption and trade agencies to find importers.

He noted that the localities and associations should guide businesses, cooperatives and farmer households to expand distribution channels and exploit e-commerce channels effectively.

At the same time, they needed to strengthen coordination with the Ministry of Industry and Trade and relevant ministries and branches, as well as the Vietnamese trade representative offices abroad to update market information in terms of price, demand and supply.

Meanwhile, the businesses were requested to proactively grasp information and market needs, then having practical trade promotion activities for the seasonal agricultural products, especially vegetables and fruits.

Phu also said Vietrade would continue to coordinate with the localities and associations to effectively organise trade promotion activities for supporting the businesses, cooperatives and farmer households in expanding market and consuming products, especially seasonal farm produce.

The association proposed more investment in post-harvest technology, machinery, equipment, storage and transportation for fruits and vegetables to reduce the rate of damage, up to 40% of all volume.

Investment is also needed in warehouses and preservation technologies in order to store vegetables for longer to regulate supply in the market.

The Ministry of Industry and Trade together with the General Department of Customs, the tax authorities, and logistics enterprises should enhance cooperation to remove difficulties in developing goods consumption and export links, according to Phuong.

Vietnamese agricultural products have large export markets, but competition from the same farm produce of other countries is increasingly fierce.

So to increase the export of Vietnamese branded agricultural products, the enterprises must improve the overall quality of products and comply with regulations on quarantine, packaging and traceability in importing countries.

Vietnam will also implement multiple trade promotion programmes to increase the export of goods, including farm produce to China, Northeast Asia, the US and EU - four major markets of Vietnamese agricultural products in 2024./.

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