Shrimp harvesting in the Mekong Delta (Photo: SGGP)

Market reports in Kien Giang Province yesterday revealed that the prices of black tiger shrimps decreased by VND30,000 – 40,000 per kilo (US$1.28 – 1.7) to only VND250,000 – 95,000 per kilo ($4 – 10.6). The prices of white-leg shrimps also reduced by VND20,000 – 30,000 per kilo ($0.85 – 1.28) to only VND60,000 – 73,000 ($2.55 – 3.1).

The situation in other provinces of the Mekong Delta like Ca Mau, Bac Lieu, and Soc Trang is similar, facing a shrimp price decline by 40 percent compared to the beginning of the year.

President Tran Van Viet of Thanh Cong Shrimp Cooperative in Dam Doi District of Ca Mau Province stated that despite that discouraging price drop, animal feed costs are still rather high, which leads to profit loss for farmers. He stressed that if this continues, farmers will have to stop operation to cut loss.

The Vietnam Association of Seafood Exporters and Producers (VASEP) gives reason for this price reduction, saying that exports have decreased lately, and the inventory is still too large for shrimp processing businesses to buy more materials.

Real estate sector still on back foot

The Vietnamese government has been making vital decisions to eradicate difficulties in both policy and capital sources for the real estate market, but progress has been mixed thus far.
 
The prime minister on May 31 asked Minister of Construction Nguyen Thanh Nghi to work directly with Bui Thanh Nhon, chairman of the board at Novaland Group, to solve problems regarding its projects in the southern province of Dong Nai.

The previous month, deputy prime minister Tran Hong Ha assigned the Ministry of Construction to coordinate with the Ministry of Natural Resources and Environment to establish a working group with the people’s committees of Dong Nai and Binh Thuan provinces to solve Novaland’s issues in those localities.

In February, in a letter sent to the National Assembly Standing Committee (NASC), Nhon had told authorities at the beginning of the year that while Novaland boasted many key projects in Dong Nai, they were all stalled mainly due to planning adjustments.

According to Nhon, planning approval for the projects has been delayed for more than two years, leaving Novaland unable to carry out construction funding procedures. “This has been due to the inconsistency between the general planning of Bien Hoa city and the projects themselves. At the same time, the problem of arranging land for social housing construction is entangled due to inconsistent regulations,” Nhon said.

Novaland is not the only developer seeking support from authorities to continue their projects. Quoc Cuong Gia Lai has had six projects halted in the last three years due to overlapping regulations.

Him Lam Real Estate, meanwhile, is in its 20th year of being stuck with a residential project as part of Rach Chiec New Urban Area in Ho Chi Minh City. Funded by Real Estate No.10, the venture has been delayed due to issues with infrastructure, land clearance, and compensation.

On May 25, Prime Minister Pham Minh Chinh set up a working group to review and remove problems in the implementation of real estate projects.

The PM issued an official letter on the safe, healthy, and sustainable development of the real estate market, noting that in recent years, the market has faced many difficulties due to the pandemic, and the market was at the lowest cycle growth amid decreased economic growth.

Besides this, policy formulation, approval, adjustment, and project implementation was slow, causing difficulties in access to credit capital in the form of bonds and securities.

Some localities are not proactive in solving problems and coordinating with central agencies to do so, he added. Moreover, the market is not transparent enough, the structure of real estate products is not reasonable, and the laws confusing and unclear.

As a result, the PM has directed the State Bank of Vietnam to create stronger conditions for real estate project investors and home buyers to access credit.

On the same day, the Ministry of Natural Resources and Environment was issued to direct and guide localities to remove issues in determining land prices and setting annual land use plans, as well as compensation and site clearance.

The same ministry is also responsible for submitting a draft version to amend and supplement the decree on land prices and adjusting the land price, valuation and consultancy activities before June 30. At the same time, a series of localities are trying to erase difficulties and boost the property market, including Quang Nam, Can Tho, and Ho Chi Minh City.

Quang Nam People’s Committee, for example, has requested its local Department of Planning and Investment to review all real estate projects and define those that are facing problems. The department will work directly with each developer to clearly identify the causes and set prompt solutions to remove them.

The chairman of Can Tho People’s Committee assigned the Department of Construction to continue monitoring and managing 32 projects, proactively guiding and urging developers to accelerate project implementation and hand over infrastructure to localities to manage.

With more than 100 projects delayed, Ho Chi Minh City is being urged to be proactive in supporting developers to wipe out their problems. At a recent meeting between Ho Chi Minh City People’s Committee and developers of 116 projects last month, vice charman Bui Xuan Cuong said that the city would focus on reviews and making solutions as soon as possible.

The continuing work to try and help businesses comes just a few months after the government set up policies to review the situation, illustrating that much more needs to be carried out.

According to the statistics of Vietnam Real Estate Association, the property market in the first months of 2023 showed positive signals thanks to the support and timely removal of some problems by the government and local authorities.

The key points offered at the time was to allow businesses that have issued bonds, but cannot pay in full or on time, to negotiate with the bondholder to pay the bond interest to maturity with other assets.

Second, the government permitted extending the bond’s term up to no more than two years compared to the term in the bond issuance plan committed to investors, and allowed a negotiation mechanism between bond issuers and investors to have feasible solutions.

Acceleration of existing power project to ensure stable electricity supply: Experts

Delays in the construction of new power projects have a negative impact, both on the projects' efficiency and the overall electricity supply to the economy.

According to a report from the National Load Dispatch Center (A0), Vietnam's electricity supply has faced numerous challenges since April, resulting in a 20% increase in load compared to the same period in 2022, reaching over 453 million kWh.

Like other countries worldwide, Vietnam's electricity shortage is exacerbated by the effects of El Niño.

Water levels are critically low in several hydropower reservoirs in the north. This, combined with lower power generation from hydropower plants, has put additional strain on thermal power plants operating at maximum capacity for an extended period.

To ensure a stable power supply, Vietnam Electricity (EVN) has mobilized all available power sources across the country, including diesel generators, said A0 Deputy Director Nguyen Quoc Trung.

He said that these challenges in both hydropower and thermal power have led to prolonged power outages in the northern region in recent days.

According to calculations by the Ministry of Industry and Trade, the northern power system is currently facing a shortage of about 4,350 MW, with an average daily deficit of about 30.9 million kWh (peaking at 50.8 million kWh). As a result, the northern power system is at risk of capacity shortage for most hours of the day.

Nguyen Dinh Cung, a member of the Prime Minister's Economic Advisory Group, stressed the need to speed up the construction of planned and approved power plants to address the power shortage. He emphasized that waiting for the implementation plan of Power Plan 8, which includes wind and offshore wind power, could result in delays of up to a year.

Energy expert Ha Dang Son said power shortages were warned two years ago and have become more pronounced since 2022, especially in the northern region.

He said various calculations indicate a significant risk to the North's power supply between 2023 and 2024. The main reason is the insufficient number of generators in the region. Even the newest one, the Thai Binh 2 thermal power plant, was built almost a decade before it was successfully connected to the grid. As for the hydropower plants, they were all built within the last 3-4 years.

A0 has assessed that as of June 10, electricity production in the southern and central regions has met demand. The blackout situation in the north has been resolved thanks to the increased power supply.

The total available power capacity in the north is 20,321 MW, of which 5,244 MW is hydroelectric. An additional 1,000 MW has been mobilized from several local thermal power plants, including S1 Nghi Son 1 (300 MW), Thai Binh 1 S1 (300 MW), and Quang Ninh S1 (300 MW), after their problems were fixed.

Moderate to heavy rainfall is expected in the northern region over the next few days. This is expected to help replenish water in hydropower reservoirs and raise critically low water levels.

The Ministry of Industry and Trade and EVN are actively exploring all possible solutions in response to the current situation. These include increasing the operation of thermal power sources to compensate for the water shortage in major hydropower reservoirs, implementing the Prime Minister's directive on power conservation, ensuring a stable supply of coal and gas for power generation, actively adding new power sources to the system, and focusing on solving power-related problems.

Vo Quang Lam, Deputy General Director of EVN, highlighted that Vietnam owns and operates the largest transmission system in Southeast Asia. The north-south transmission system already has two 500 kV lines, Circuit 1 and Circuit 2.

As part of the overall PDP VIII, there is a plan to construct a 500 kV Circuit 3 line from Ha Tinh to the north to close the loop. The implementation of this plan is scheduled from now until 2030. However, due to the urgent situation of power transmission, EVN instructs the National Power Transmission Corporation to immediately report to relevant ministries and sectors for immediate action on this project.

Lam mentioned that with concerted efforts, an additional 1,000-1,500 MW could be added to complete the loop and transmit power from the south to the north.

Vietcombank's market value hits record high

Following continuous rallies on the stock market, Vietcombank's market value hit more than US$20.2 billion, far surpassing that of big listed companies and even heading toward the level of the Germany's Deutsche Bank.

After breaking through the threshold of 1,100 points last week, the benchmark VN-Index extended the uptrend on the first trading day of the new week. It finished the day at 1,116.02 points, an increase of 0.77 points. 

Catching up with the bullish sentiment, Vietcombank's shares, traded on the Hồ Chí Minh Stock Exchange (HoSE) with the ticker symbol VCB, also performed well. It ended Monday at VNĐ101,000, up 0.5 per cent over the previous session. This is the highest close since the bank started trading on the market. 

The gain boosted its market value to a peak of over VNĐ475.6 trillion (US$20.2 billion), doubling that of the second largest company in the market, Vinhomes (VHM).

In the banking sector, Vietcombank remains on top, followed by the Bank for Investment and Development of Vietnam (BIDV) and the Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank), with market caps of nearly VNĐ220 trillion and over VNĐ136.2 trillion, respectively.

Vietcombank's market capitalisation is now approaching that of major banks in the world, far ahead of Shinhan Bank (Korea) and Sumitomo Mitsui (Japan), and is approximately at the level of the leading German bank, Deutsche Bank, with a market capitalisation of US$21.58 billion.

The outstanding performances of VCB were thanks to the recent positive news that it was approved by the central bank to increase charter capital to over VNĐ55.89 trillion through the issuance of shares to pay dividends.

Auto imports plummet in May

May saw Vietnam’s completely-built-up (CBU) automobile imports dipping a staggering 33.6% to US$191 million compared to April.
General Department of Vietnam Customs data showed that the country imported 7,600 CBU units last month, down 38.3% against the previous month.

Indonesia emerged as the largest car exporter to Vietnam, supplying 2,966 vehicles, followed closely by Thailand with 2,873 units.

However, the average price of cars imported from Thailand was significantly higher at US$24,202 per unit compared to cars imported from Indonesia, which cost US$12,176 per unit.

China and Japan secured the third and fourth spots among Vietnam’s major auto markets, contributing 933 and 309 units, respectively.

From January to May, Vietnam imported a total of 61,950 CBU autos, amounting to US$1.4 billion. This reflects a 10.2% increase in value compared to the same period last year and a 22% year-on-year rise in volume over the first five months of 2022.

However, the domestic auto market remained volatile, with April sales dropping 30% year-on-year to 92,801 units. This followed a partial recovery in the January-March period, according to the Vietnam Automobile Manufacturers’ Association.

In the first four months of the year, 42,784 imported autos were sold, a 16% decline compared to the same period in 2022.

Interest exemption proposed for late tax payments

The Ministry of Finance has written to the National Assembly proposing issuing a resolution that would exempt loss-making businesses from interest on late payments of taxes, land use fees and land rentals in 2022 and 2023.

If approved, the proposal could result in lost revenue of VND2.5 trillion for the state.

This was one of the measures taken by the Government in 2020 and 2021 to alleviate the financial burden on struggling companies.

The ministry said that the current Law on Tax Administration imposes an interest rate of 0.03% per day on outstanding tax payments, which creates a significant financial burden for businesses, especially those making losses.

In 2022, the policy allowed the tax authority to waive more than VND2.1 trillion in late payment interest accumulated by loss-making companies in 2020 and 2021.

UOB FinLab to help Vietnamese SMEs speed up digital transformation

UOB FinLab, an innovation accelerator powered by the Singapore-based United Overseas Bank (UOB), announced its official launch in Vietnam on June 13.

According to UOB, this strategic expansion aims to enhance UOB’s regional connectivity and foster UOB FinLab’s network of more than 21,000 small- and medium-sized enterprises (SMEs) across ASEAN, granting them access to digitalisation and sustainability programme, matching of business solutions providers, mentorship and valuable resources.

The UOB Business Outlook Study 2023 (SME & Large Enterprises) shows that, nearly nine in every 10 businesses in Vietnam have adopted digitalisation in at least one department. However, a key challenge for businesses will be in scaling their digitalisation efforts, expanding it from one or a few departments to the entire business.

As many as 41% of the SMEs surveyed likely need support to connect with the right technology provider and 37% said they need access to knowledge and expertise to address concerns in their digitalisation journey.

Recognising these challenges, UOB Vietnam is committed to providing tailored programmes, solutions and expertise to Vietnamese SMEs through UOB FinLab.

UOB FinLab targets to engage 5,000 businesses in Vietnam over the next three years through its innovative digitalisation and sustainability initiatives. Its inaugural programme, titled "Xin Chao SMEs: Grow Your Sales through E-commerce and Digital Marketing", is designed to equip SMEs with the necessary knowledge and strategies to effectively adopt digital technologies to fuel sales growth and expand their customer base regionally.

Victor Ngo, CEO of UOB Vietnam, said by launching UOB FinLab in Vietnam, the bank aims to provide comprehensive support to these SMEs, equipping them with the tools, knowledge and resources needed to succeed in the digital marketplace.

According to Nguyen Ngoc Dung, Chairman of the Vietnam E-commerce Association, Vietnamese SMEs play a vital role in the country’s economy, and their success is crucial for sustainable growth.

The launch of UOB FinLab in Vietnam will empower Vietnamese SMEs to embrace digital transformation and unlock new growth opportunities, he said, adding that this will be instrumental in bridging the digital divide and enabling SMEs to compete effectively in the digital marketplace.

To better support Vietnamese SMEs, UOB FinLab will also collaborate with professors from universities, industry practitioners, innovation experts, and tech solution providers in its programmes to deliver an enriching learning experience for participants.

Vietnam needs to develop coffeee value chain: Minister

Vietnam needs to develop a coffee value chain to help the industry develop along an integrated, multi-valued and humane direction, so that coffee growers can receive the most benefits in the value chain, said Minister of Agriculture and Rural Development Le Minh Hoan.

Although Vietnam is the world’s second biggest coffee exporter, around 90% of its coffee exports are in the raw form, resulting in low export revenue as well as brand recognition. 

Even when the country tops the world in term of coffee export volume, it only stands at the 10th place in term of value. 

To increase the value of coffee exports, building a coffee production chain is one of directions to develop the industry sustainably.

The close connectivity from farmers to processing companies will create a coffee production line that ensures high product quality, environmental protection and sustainable development.

Export revenue of coffee is expected to hit a new record this year, exceeding the four billion USD achieved last year, the Vietnam Coffee Cocoa Association (VICOFA) said. 

However, both farmers and exporters said they do not benefit from rising prices of coffee due to rising inflation that has pushed production cost up.

In the first five months of this year, Vietnam's coffee exports were estimated at 882,000 tonnes, worth more than two billion USD.

The country’s average export price of coffee is at 2,295 USD per tonne, up 2.4% over the same period last year.

From now until the end of the year, coffee exports will still have good prospects when demand increases while supply is not expected to improve. It is forecast that coffee output this year will decrease by 10%-15%/year due to unfavourable weather.

UK a potential market for Vietnamese durian: insiders

Since the first batch of Vietnam’s Ri6 durian was officially exported to the UK in the beginning of May, TT Meridian Company has regularly imported 3-4 tonnes of this specialty fruit every week, which shows that it is well received by consumers in this market.

With many years of research on Vietnam's fruits that have potential and advantages for being exported to the UK market, TT Meridian, a company specialising in the distribution of Vietnamese agricultural products in the European country, sees bright prospects for durian export to this market.

Thai Tran, Managing Director of TT Meridian, said that with the preferential tax of zero under the UK-Vietnam Free Trade Agreement (UKVFTA), durian import from Vietnam has a great competitive advantage in price compared to those from other countries which is now subject to an 8% tax rate, in the context that high inflation is making price a top concern for importers, distributors and consumers in the UK.

According to him, the UK market has many customer segments and Vietnamese durian can target Asian customers as well as manufacturers and processors of durian products such as ice cream, yogurt and smoothies. The price advantage at this moment opens up opportunities for this Vietnamese fruit to reach UK consumers and distributors.

However, he also pointed to several challenges for Vietnamese durian to stand firm in this competitive market.

One of the difficulties for durian exporters is the procedure for getting a certificate of origin for shipments from the Vietnamese authorities. As a mandatory requirement to enjoy tax incentives under the UKVFTA, the procedure currently takes a long time, manpower and costs because businesses have to directly apply for a paper certificate of origin.

Therefore, he proposed the granting of the electronic certificate with online transactions.

Sharing the same view, Vietnamese Trade Counsellor in the UK Nguyen Canh Tuong suggested State management agencies support businesses by shortening the quarantine time and the time for issuing the certificate of origin to ensure the entire process of bringing fruits from the place of harvest to the laboratory, to the border gate, and through customs clearance within half of a day to be boarded on flights the same day.

VAMA’s May automobile sales drop by 8%

Members of the Vietnam Automobile Manufacturers’ Association (VAMA) sold 22,409 automobiles of all kinds in May, a decrease of 8% compared with the previous month.

This is the 2nd month in a row that VAMA's sales have dropped after increasing by 30% and 33% in February and March.

Of the total, there were 14,483 passenger cars, 6,096 commercial vehicles and 147 special-purpose ones, down 8%, 6%, and 16% from April, respectively.

The sales of domestically-assembled vehicles decreased by 9% while the number of imported ones sold dropped by 5% compared to the previous month.

VAMA's members sold a total of 113,527 units in the first five months of this year, a decrease of 36% year-on-year.

Among the non-VAMA members that unveiled their sales, Thanh Cong Group (TC Group) supplied 4,592 units to the market in May while VinFast sold 2,996 electric automobiles during the period.

Toyota topped the list of sellers last month, followed by Hyundai, Kia, Ford, Mazda, Mitsubishi, and Honda with 3,734; 3,575; 2,695; 2336; 2,311, 1,803 and 1,757 units, respectively.

Experts attributed the decrease in automobile sales in the past two months to economic difficulties which have forced businesses and consumers to reduce their spending.

Petrovietnam records five-month revenue, profit higher than targets

The Vietnam Oil and Gas Group (Petrovietnam) earned 334 trillion VND in total revenue in the first five months of 2023, 20% higher than the target for the period, statistics show.

Its consolidated pre-tax profit reached 21.7 trillion VND, 63% higher than the target and equivalent to 63% of the yearly plan.

Meanwhile, the firm contributed 54.5 trillion VND to the state budget during January - May (excluding the contribution by the Nghi Son Refinery & Petrochemical LLC), 45% higher than the five-month target.

Petrovietnam said these results were highly positive compared to the downward trend of global oil prices.

The group reported that its operations remained safe and stable in the first five months. Particularly, the manufacturing and supply of such key products as gas, electricity, petrol, and oil posted impressive growth, helping ease pressure on power supply and guarantee national energy security.

During the period, it exploited 4.41 million tonnes of crude oil, 13.8% higher than the five-month target. That comprised 3.66 million tonnes exploited domestically and 751,600 tonnes overseas, rising 16.3% and 2.6% from the respective targets.

About 3.44 billion cu.m. of gas was exploited, 21.8% higher than the target.

Meanwhile, Petrovietnam produced 719,500 tonnes of fertiliser, along with 2.92 million tonnes of petrol and oil, up 11.1% and 13.3% from the respective targets.

Notably, amid power shortages for economic and daily activities, especially in May, the group has exerted utmost efforts to provide fuel for power generation and optimise operations of its power plants to help reduce pressure. It produced 10.12 billion kWh of electricity in the five months, up 48% year on year.

State budget revenue from foreign trade tops 38% of target

More than 162.8 trillion VND (6.9 billion USD) in export and import taxes was collected for the state budget as of June 11, equivalent to 38.3% of this year’s target and down 18.1% from the same period of 2022.

The statistics was released by the General Department of Vietnam Customs on June 13.

For 2023, Vietnam Customs was assigned by the National Assembly to collect 425 trillion VND for the state budget.

It said that as collecting revenue for the state budget is a focal task of the sector, it has taken concerted and strong measures to facilitate trade, improve management efficiency, and prevent tax losses.

In the time ahead, the general department will keep working closely with relevant ministries and sectors to implement the national single-window mechanism, along with the ASEAN single-window and trade facilitation mechanisms to help achieve the set target.

Int’l exhibition on precision engineering, manufacturing to open

The 19th edition of MTA Vietnam 2023, an international exhibition and conference on precision engineering and manufacturing, will return from July 4-7 in Ho Chi Minh City, with 320 exhibitors from 13 countries and territories taking part.

Apart from exhibitors from developed countries such as the US, Germany, Switzerland, Canada, Japan, the Republic of Korea and Singapore, 10 international brands have also chosen MTA Vietnam 2023 to showcase their products.

As the leading international trade event in Vietnam for precision engineering and manufacturing over the past two decades, MTA Vietnam has become an annual activity expected by the business community in the manufacturing-processing industry.

The majority of exhibitors will focus on showcasing products and services in the fields of automation technology, cutting and machining tools, home and auxiliary equipment, material storage and processing, metal cutting machines, modeling systems and software, metal forming and sheet metal cutting, and much more.

A series of thematic seminars will also be held to provide the latest updates in mechanical engineering and machinery manufacturing.

For the first time at the event, the organising board will design a completely new and unique exhibition area called VINRA where the most advanced technologies and machinery in the field, as well as the world of robotics, automation, and AI-powered robotic arms, will be introduced to visitors and the Vietnamese market.

According to the Ministry of Industry and Trade’s Department of Industry, there are around 25,000 mechanical businesses operating nationwide at present.

The size of Vietnam's mechanical engineering industry is expected to reach around 310 billion USD from 2019 to 2030, providing ample opportunities for the mechanical industry and the tool machinery, precision engineering, and metal processing in particular.

Organisation boosts promotion events to attract more Vietnamese to RoK

The Korea Tourism Organisation (KTO) of the Republic of Korea (RoK) is stepping up a wide range of tourism promotion events in the latter half of 2023 to attract more Vietnamese visitors to the Northeast Asian country.

KTO Vietnam said as 2023 marks the start of the Visit Korea Year 2023 - 2024 with the motto of “Ride the Korean Wave”, it has organised a number of tourism promotion programmes.

Notable activities include workshops on tourism of Jeollabuk province, Incheon city, and Gyeongsangbuk province; a three-day Chef Show 2023 with nearly 1,000 participants in Hanoi; a busking (street performance) show named “Xin chao Han Quoc” (Hello, Korea) that was posted on Youtube, Facebook, and Vieon pages; along with the MICE Roadshow 2023 held in Hanoi and Ho Chi Minh City connecting the two countries’ travel agencies and companies.

KTO Vietnam has also actively engaged in programmes held by agencies of Vietnam and the RoK such as the Korean culture road festival, the Hanoi Tourism Festival, the Vietnam International Travel Mart (VITM) 2023, and the K-pop Lovers Festival.

More activities will be held in the coming months, including a workshop on transit tourism in the RoK, another on learning in the RoK, an international travel expo, and fam trips to the country.

The organisation noted that with the recently launched list of 100 places of interest in the RoK for 2023 - 2024, it will focus on introducing Korean localities so as to give global travellers a fresher view of the country’s tourism.

Vietnam is an important market of the RoK’s tourism, so KTO has always paid attention to holding promotion activities in Vietnam, KTO Representative in Vietnam Lee Jae-hoon said, expressing his hope that Vietnamese people will love to travel in the RoK and enjoy new activities of KTO in the time ahead.

As of early June, the RoK welcomed 163,000 tourist arrivals from Vietnam, equivalent to 73% of that in the same period of 2019, before the COVID-19 pandemic broke out. It looks to attract nearly 400,000 Vietnamese visitors this year, or 70% of the pre-pandemic level, according to KTO Vietnam.

Vietnam, Belgium promote partnership in seaport, logistics

There are great opportunities for Belgian investors in the development of seaports in Vietnam, a country owning a coastline of over 3,200km, heard a conference held in Anvers city of Belgium on June 12.

The conference was held by the Vietnamese Embassy and Vietnam Trade Office in Belgium in coordination with the Belgian-Vietnamese Alliance (BVA), the Flanders Investment & Trade (FIT) and The Beacon Group, aiming to promote Vietnam-Belgium cooperation in seaport and logistics. The event was also meant to prepare for the Minister-President of the Government of Flanders Jan Jambon’s visit to Vietnam in September.

Addressing the event, Jambon highlighted that Vietnam and Flanders share many similarities, including their strength in seaports. However, he pointed out that there remains plenty of room for the two sides to expand their trade partnership, adding that the two sides should grasp new opportunities from the EU-Vietnam Free Trade Agreement (EVFTA) to promote their sustainable development.

With its strength in digitalisation and multimodal transport, Belgium can assist Vietnam in optimising the development and operation of seaports to seize opportunities and overcome challenges in the rapidly digitalisation era, he said.

Agreeing with Jambon’s assessments on the bilateral cooperation potential in smart seaport and logistics, Vietnamese Ambassador Nguyen Van Thao said that with its geographical advantages and strategic location in the international maritime network, Vietnam pays great attention to developing the seaport system and logistic centres. He called on Belgian firms to strengthen cooperation with Vietnam in this field for mutual benefit.

At the event, Belgian and Vietnamese firms shared experience and knowledge on opportunities in seaport and logistics sector in Vietnam, as well as challenges in the field.

Speaking to Vietnam News Agency’s correspondents in Brussels, Geer Dom, Director for Europe and the US of DEEP C, a firm that has invested in Vietnam for 20 years, said that Vietnam boast great advantages in seaport infrastructure and logistics. The country with a dynamic and fast growing economy is an attractive destination for foreign investment.

At the same time, Marc van Bouwel, General of ICE-LOFT said that Vietnam's geostrategic location creates a huge advantage in shipping, while the 16 free trade agreements (FTAs) that Vietnam has signed, including the EVFTA, also generate great opportunities for the maritime transport and logistics sector. This year, when Vietnam and Belgium mark the 50th anniversary of their diplomatic relations, is a good time for the two sides to further develop the multi-faceted cooperation relationship, including seaport and logistics cooperation, he added.

Honda Vietnam’s car, motorbike sales decline in May

Honda Vietnam on June 13 announced that its retail sales of motorcycles and automobiles in May decreased by 31.5% and 9.6% respectively compared to the previous month due to market difficulties.

Last month, Honda Vietnam sold 142,580 motorbikes, with 31,432 exported, and 1,757 cars of all kinds.

In the first two months of the fiscal year from April 2023 to March 2024, the company posted sales of 350,696 motorbikes, marking a year-on-year increase of 3.1%.

It sold 3,701 cars of all kinds in the two months, a decrease of 60.1% over the same period in fiscal year 2023.

Particularly, Honda City Sedan continued to be its best-seller with 1,035 units sold, accounting for 58.9% of the company's total car sales in May 2023.

Bac Giang kick starts tourism promotion programme in lychee harvest season

A programme to promote tourism in Luc Ngan district in the lychee harvest  season kicked off at Bau Tien tourism area in the northern province of Bac Giang on June 13.

Hosted by Dong Dao Tourism Cooperative, the event features a series of activities to promote the image of the land and people of Luc Ngan to domestic and foreign visitors.

It is expected to contribute to preserving the traditional cultural value of the locality, and promoting agricultural economic development in connection with green and sustainable tourism, towards turning tourism into a significant economic sector of the locality.

Apart from visiting fruit-laden orchards, tourists will have a chance to taste famous specialties of the locality such as hill chicken, horse spring roll, Cam Son shrimp and fish, and lychee honey.

Vice Chairman of the People’s Committee of Luc Ngan district Truong Van Nam said the locality is an attractive destination for visitors nationwide in all four seasons.

Luc Ngan lychee was one of Vietnamese specialties recognised by the Asian record by the Asian Record Organisation in April 2023.

The Luc Ngan lychee brand has been popular not only in the domestic market but also in major markets worldwide such as China, Japan, the EU, the US, and Australia. Since obtaining a certificate of geographical indication (GI) from the Ministry of Agriculture, Forestry and Fisheries of Japan (MAFF) in March 2021, Thieu lychee grown in Luc Ngan district has seen its competitiveness and export volume significantly rising in foreign markets.

Vice President of Vietnam Tourism Association Phung Quang Thang expressed his impression on the event, saying that travel agencies have collaborated with the locality to develop tourism products, especially those related to rural areas.

Toyota Vietnam tops passenger car market in May

Toyota Vietnam sold 3,902 passenger cars, including the luxury brand of Lexus, in May, topping the market segment, the joint venture reported on June 13.

Corolla Cross, Veloz Cross and Vios were among the 10 best sellers in the market with sales of 1,014, 590 and 586 units, respectively.

Meanwhile, 168 Lexus-branded cars were delivered, raising the total number of the vehicles sold in Vietnam so far to 11,128, the firm added.

The same day, VinFast, a subsidiary automaker of Vietnamese conglomerate Vingroup, said it delivered 2,996 electric vehicles to buyers last month.

Notably, its VF8 was the best seller with 1,274 units sold, followed by VF e34 with 960 units, according to the automaker.

In the first five months, VinFast handed over a total of 8,483 electronic vehicles to customers in Vietnam.

On June 8, it officially launched the VF 3, a mini electric car model designed specifically for the Vietnamese market.

Vietnam attends AsiaBerlin Summit 2023

Vietnam is participating in the ongoing AsiaBerlin Summit 2023 in the German capital, sharing its innovative ideas on technological solutions and products for energy saving and environment protection.

The annual summit, powered by the Berlin Senate Department for Economic Affairs, Energy and Public Enterprises, forms the collective platform that brings together communities within the startup ecosystems across Asia and Berlin. It addresses economic connections between the sides and helps link Berlin startups with valuable Asian markets and ecosystems.

This year, it spotlights cooperation opportunities in AI, transport-logistics, energy transformation, and green technology. Themed “Innovating now for a positive future,” the 2023 edition looks at breakthrough ideas and solutions of ten startups.

Delivering a speech at the event, the second secretary and head of the economic affairs department at the Vietnamese Embassy in Germany, Nguyen Mai Phuong, said given the global green technology revolution, it is important for Vietnam to increase understanding on areas that the Southeast Asian nation has a chance to collaborate.

She expressed her delight that in his opening remarks, the Berlin mayor has mentioned Vietnam as a key partner of the city in particular and the European country in general.

Mytel becomes leading telecom operator in Myanmar after 5 years

Celebrating five years of business in Myanmar, Mytel, a brand of Viettel Group in Myanmar, is the leading operator in terms of market share and service quality in this country.

The total accumulated revenue in the five years of Mytel reached more than 2 billion USD, which is the market with the highest service revenue of Viettel last year.

Currently, Mytel leads the mobile service market share with 13 million customers.

It is the operator with the largest and best 4G coverage in Myanmar with an area of nearly 90% of the population.

Mytel has helped increase the share of high-speed mobile users in Myanmar from 16% to 88%; at 40% lower cost than before.

Along with telecommunications coverage efforts, Mytel has built a comprehensive digital ecosystem, including digital infrastructure, digital finance, digital content, digital solutions and cybersecurity.

Mytel has also contributed more than $6 million to social activities, sponsored fiber-optic Internet for more than 630 schools.

"Entering the sixth year of doing business in Myanmar, Mytel would continue to support people through investing in technology so that each family and business here could develop sustainably, for the benefit of the people and country of Myanmar," said Nguyen Tien Dung, General Director of Mytel.

Myanmar is the 10th market and the market with the largest scale and the largest population in all markets where Viettel has invested.

Mytel was the first mobile operator to launch 5G technology in Myanmar in August 2019.

UOB FinLab to help Vietnamese SMEs speed up digital transformation

UOB FinLab, an innovation accelerator powered by the Singapore-based United Overseas Bank (UOB), announced its official launch in Vietnam on June 13.

According to UOB, this strategic expansion aims to enhance UOB’s regional connectivity and foster UOB FinLab’s network of more than 21,000 small- and medium-sized enterprises (SMEs) across ASEAN, granting them access to digitalisation and sustainability programme, matching of business solutions providers, mentorship and valuable resources.

The UOB Business Outlook Study 2023 (SME & Large Enterprises) shows that, nearly nine in every 10 businesses in Vietnam have adopted digitalisation in at least one department. However, a key challenge for businesses will be in scaling their digitalisation efforts, expanding it from one or a few departments to the entire business.

As many as 41% of the SMEs surveyed likely need support to connect with the right technology provider and 37% said they need access to knowledge and expertise to address concerns in their digitalisation journey.

Recognising these challenges, UOB Vietnam is committed to providing tailored programmes, solutions and expertise to Vietnamese SMEs through UOB FinLab.

UOB FinLab targets to engage 5,000 businesses in Vietnam over the next three years through its innovative digitalisation and sustainability initiatives. Its inaugural programme, titled "Xin Chao SMEs: Grow Your Sales through E-commerce and Digital Marketing", is designed to equip SMEs with the necessary knowledge and strategies to effectively adopt digital technologies to fuel sales growth and expand their customer base regionally.

 Victor Ngo, CEO of UOB Vietnam speaks at the event (Photo: thoibaonganhang.vn)

Victor Ngo, CEO of UOB Vietnam, said by launching UOB FinLab in Vietnam, the bank aims to provide comprehensive support to these SMEs, equipping them with the tools, knowledge and resources needed to succeed in the digital marketplace.

"We understand the challenges faced by Vietnamese SMEs in embracing digital technologies and staying competitive in the digital era,” he said.

According to Nguyen Ngoc Dung, Chairman of the Vietnam E-commerce Association, Vietnamese SMEs play a vital role in the country’s economy, and their success is crucial for sustainable growth.

The launch of UOB FinLab in Vietnam will empower Vietnamese SMEs to embrace digital transformation and unlock new growth opportunities, he said, adding that this will be instrumental in bridging the digital divide and enabling SMEs to compete effectively in the digital marketplace.

To better support Vietnamese SMEs, UOB FinLab will also collaborate with professors from universities, industry practitioners, innovation experts, and tech solution providers in its programmes to deliver an enriching learning experience for participants./

Vietnam, Malaysia set trade target of 18 bln USD by 2025

Vietnam and Malaysia, one of its most important trading partners, have set a bilateral trade target of 18 billion USD by 2025.

Speaking at a meeting on June 12, Tran Phu Lu, deputy director of HCM City Investment and Trade Promotion Centre (ITPC), said the city will continue to improve its business climate and streamline administrative reform, including creating favourable conditions for Malaysian investors.

The ITPC under the city administration regularly organises activities to support city businesses to promote trade and investment, and expand export markets, he said.

Vietnam and Malaysia have vowed to strengthen cooperation in tourism, culture, and science and technology, among other sectors, he said.

The visit by the Malaysian Prime Minister to Vietnam last year confirmed the strategic relationship between the two countries, he added.

Bilateral trade reached nearly 14.8 billion USD last year with Vietnamese exports to Malaysia worth 5.57 billion USD and imports 9.1 billion USD. 

HCM City’s total imports and exports with Malaysia last year were estimated at over 5.4 billion USD, up 8% year-on-year.
As of the end of March, Malaysia invested in 329 projects in HCM City with a total investment of nearly 4.9 billion USD, ranking sixth out of 116 countries and territories investing in the city. 

Malaysia is one of Vietnam’s 10 largest trading partners. The two countries are also members of a number of new-generation free trade agreements, which help boost bilateral trade.

The free trade agreements include the Regional Comprehensive Economic Partnership (RCEP), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the ASEAN Trade in Goods Agreement (ATIGA) and the ASEAN Free Trade Area (AFTA).

Key Vietnamese exports to Malaysia include machinery and equipment and their parts, computers, electronics and components, steel, petroleum, and chemicals.

The two countries established diplomatic relations in 1973, which were upgraded to a strategic partnership in 2015.

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