Prime Minister Pham Minh Chinh suggested FedEx Express expand activities in Vietnam and invest in the Long Thanh international airport in the southern province of Dong Nai at his reception for the US-based company's President and CEO Richard W. Smith in Hanoi on June 6.

The Government leader said the US is an important strategic partner of Vietnam, particularly in economy and trade. The US is currently Vietnam's largest export market, and bilateral trade has surpassed US$100 billion for two consecutive years. In September 2023, the countries upgraded their relations to a comprehensive strategic partnership, creating new opportunities and momentum for cooperation across many fields.

PM Chinh stated that Vietnam is committed to improving its institutional system and policies to create a more favourable, equal, safe, stable, and transparent business climate, thus facilitating long-term, stable, and increasingly efficient investments and operations of enterprises, including those from the US like FedEx Express.

Highlighting Vietnam’s open economy with free trade agreements involving 60 global economies and huge goods flows in the context of rapidly increasing cross-border e-commerce, the PM expressed confidence in the further growth of FedEx Express’s logistics and transport services both in Vietnam and across the world.

For his part, Smith said after the carrier’s more than three decades in Vietnam, the Southeast Asian country has become its key market in Asia-Pacific, Middle East, and Africa, with 36 flights to and from Vietnam operated weekly.

The business leader said he is confident in Vietnam’s economic growth potential and praised its investment environment. He stated FedEx Express wishes to expand its operations in the nation and maintain its logistics activities at the Tan Son Nhat International Airport in Ho Chi Minh City.

Chinh suggested that the group consider increasing the number of flights and the scale of cargo transport. He urged the company to support Vietnam’s development of its airport and logistics networks, and expand partnerships and share expertise with Vietnamese partners in managing transport and logistics services and offering fast delivery services in global supply chains.

Informing his guest on Vietnam’s plan to develop Long Thanh into a regional and global transit hub, the leader asked the US group to assist in the construction of the airport and to expand its investment and operations there.

Vietnam actively engages in regional green transition

A Vietnamese delegation led by Minister of Industry and Trade Nguyen Hong Dien has attended the Indo-Pacific Economic Framework for Prosperity (IPEF) Ministerial Meeting, and its sidelines event - Clean Economy Investor Forum in Singapore.

The forum, co-organised on June 6 by the Singaporean Ministry of Trade and Industry and 13 other IPEF member countries, brought together ministers, senior officials and world leading investors. Singaporean Prime Minister Lawrence Wong attended and delivered opening remarks at the event.

It was an initiative to promote the targets set in the IPEF Clean Economy Agreement, facilitating business activities and high-quality capital connectivity, while connecting the public and private sectors through in-depth dialogues with experts.

Notably, the forum identified a total of 69 sustainable infrastructure projects worth more than US$23 billion.

On the sidelines of the ministerial meeting, Dien met with US and Singaporean representatives to exchange views on important matters in bilateral trade, as well as collaboration in renewable energy.

The minister stressed that Vietnam boasts huge potential for cross-border electricity trade, and it is interested in enhancing power connectivity in the Association of Southeast Asian Nations (ASEAN).

Vietnam appreciates the cooperation and support from the US and other relevant sides over the past time, he said.

Vietnam hopes that through the working group, countries will share experience in developing offshore wind power, and building underground power transmission cable systems and other related issues, Dien continued.

Notably, at the meeting between Vietnam, Singapore and the US on large-scale electricity export not through the national power grid, the leaders welcomed the establishment of the tripartite working group.

Vietnam expressed its interest in enhancing power grid connectivity within ASEAN, as well as between Vietnam and Singapore.

According to Luong Hoang Thai, Director of the MoIT’s Multilateral Trade Policy Department, the IPEF Ministerial Meeting marks countries putting the initiative in place.

On this occasion, Vietnam proposed working together with Singapore and the US to form a trilateral framework to discuss potential steps for the establishment of a power connection network with ASEAN countries, he said.

Talks held to drive Vietnam-China agro-forestry-fishery trade

Deputy Minister of Agriculture and Rural Development Hoang Trung on June 6 held talks with Zhao Zenglian, Vice Minister of the General Administration of Customs of China (GACC), in a bid to enhance the countries’ agro-forestry-fishery trade.

Trung said the ministry and GACC have seen their cooperation growing practically, particularly during the complex developments of the COVID-19 pandemic when the sides worked together to ensure the continued bilateral trade of agricultural, forestry, and aquatic products.

To facilitate smoother trade, Zhao noted that China will expedite the review and processing of Vietnamese businesses’ registration dossiers for agro-forestry exports to the country.

The officials agreed to step up cooperation in agricultural commerce and market access. They committed to completing procedures to sign a protocol on phytosanitary requirements for Vietnamese fresh coconuts and frozen durians to be exported to China. For Vietnam’s passion fruit and chilies, which have been exported on a trial basis, both sides will accelerate the finalisation of procedures to formally sign their related documents soon.

The two sides agreed to work together to finalise protocols for exporting crocodiles, unprocessed Salangane nests, poultry, and wild-caught seafood from Vietnam to China.

The officials also discussed and agreed on solutions to resolve challenges related to Chinese sturgeon exports to Vietnam. China will support Vietnam in enhancing its capacity to identify sturgeon species.

At the meeting, the officials signed a protocol on quarantine requirements for monkeys exported from Vietnam to China. They also witnessed the conclusion of technical negotiations on a protocol on phytosanitary requirements for Vietnamese fresh coconuts to be exported to China.

Currently, Vietnamese agro-forestry-fishery products hold a relatively small market share in China, accounting for less than 5% of China’s total import value in these categories. In the first five months of this year, the countries’ trade of the products reached 6.2 billion USD, a 2.9% increase compared to the same period in 2023. Of the figure, Vietnam’s exports stood at 4.6 billion USD, up 8.6%, while imports from China surged 31.5% year-on-year to 1.6 billion USD./.

Ample room remains for Thailand, Vietnam in MICE tourism cooperation: insider

Thailand is striving to become a centre for MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism in Southeast Asia, and considering Vietnam as one of its potential partners for cooperation in this field, according to Puripan Bunnag, Senior Vice President of the Thailand Convention and Exhibition Bureau (TCEB).

The official said that this segment is showing a strong recovery and starts to play a positive role in the Thai economy after several years of difficulties caused by the COVID-19 pandemic. In the first half of Thailand's 2024 fiscal year (from October 2023 to March 2024), Thailand welcomed 636,694 foreign MICE tourists, equivalent to 78% of MICE tourist arrivals in the entire 2023 fiscal year. In the period, the country earned 36.72 billion baht (over 1 billion USD), equivalent to 72% of the total generated by foreign MICE tourists in the entire previous fiscal year.

In this period, Vietnam ranked seventh in terms of the number of foreign MICE tourists to Thailand with 20,446 visitors.

According to Puripan, Vietnam's economy is growing strongly as a main destination for foreign direct investment (FDI) in Southeast Asia. Therefore, the demand in Vietnam for products, services, technology, innovation, expertise, and business networks to boost the economy and business efficiency will increase.

The convenience of accessing Thailand and short-haul flights between the two countries are plus points for Vietnamese people traveling and participating in events in Thailand, he stated, adding that Thai Airways currently operates four flights per day from Ho Chi Minh City and Hanoi – Vietnam’s two largest cities - to Bangkok.

The TCEB is currently implementing the "Cambodia-Vietnam-Thailand Economic Corridor" (CVTEC) project to develop a sea route connecting Koh Chang in eastern Thailand with Cambodia's Sihanoukville and Phu Quoc island of Vietnam. This can become a cross-border route for foreign MICE tourists to carry out the "one trip three countries" programme.

The bureau is also promoting and facilitating cooperation between Thai MICE businesses and those in the same industry in Cambodia and Vietnam to make travel on the sea route of the three countries feasible and attract MICE tourists from three countries to conduct cross-border tours.

The TCEB is ready to play a supporting role in creating favourable conditions for Vietnamese MICE tourist groups to travel to Thailand, added Puripan./.

Nhon-Hanoi Station metro line’s elevated section ready for commercial run in late June

The Nhon-Hanoi Station metro line is expected to begin commercial operation on its over-8-km elevated section running from Nhon to Cau Giay in late June or early July, after 14 years of construction.

As planned, 10 trains of this metro line have just been granted a certificate of quality, technical safety and environmental protection by the Vietnam Register under the Ministry of Transport.

This is an important milestone, ensuring that the trains fully meet quality, safety and environmental standards and are eligible to operate.

The Nhon - Hanoi Station metro project has a total length of 12.5km. The line passes through eight elevated and four underground stations.

Work on the line started in 2009 and was initially scheduled for completion in 2015. After four deadline extensions, it is expected to be finished in 2027.

This is one of the city's important transportation projects, with the goal of reducing traffic congestion, improving the public transportation system and contributing to environmental protection./.

Germany, UK, and US consume more Vietnamese dragon fruit

Vietnamese dragon fruit exports to the United States, the United Kingdom, and Germany skyrocketed by between 100% and 266% in the first four months of the year compared to the same period last year, according to the General Department of Vietnam Customs.

Specifically, exports to Germany and the UK saw a rise of more than 2.3 fold to reach US$786,000 and over US$1 million in value, respectively.

Meanwhile, exports to the US and Indian markets also surged by over 102% and 33% to US$13 million and US$16.5 million, respectively.

Statistics indicate that Vietnam earned US$230 million from exporting dragon fruit in the four-month period, down 7.5% year on year.

Experts attributed this decline to the fact that dragon fruit exports to China, Vietnam’s main export market, continued to drop 19.3% to only US$162 million.

Elsewhere, markets such as Hong Kong (China) and Japan also reduced imports of dragon fruit from Vietnam, representing a fall of between 0.6% and 7.5%.

Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association, pointed out that as the world has been affected by El Nino, global dragon fruit output is anticipated to plummet this year.

Most notably, Mexico and South American countries suffered crop failures this year, thereby opening up huge opportunities for Vietnamese dragon fruit to make further inroads into the European and North American markets moving forward.

Vietnam set to become one of fastest-growing economies in Asia: HSBC

Vietnam is set to become one of the fastest-growing economies throughout the region in the years ahead, according to HSBC economist James Cheo.

James Cheo, chief investment officer of Southeast Asia and India of HSBC Global Private Banking and Wealth, made the assessment in his latest article titled “Navigating market uncertainty: The allure of diversification in Asia”.

The expert emphasised that Asia remains an important driver of global growth, as it provides plenty of investment and diversification opportunities for investors globally.

Most notably, Vietnam represents a burgeoning economy powered by foreign direct investments coupled with manufacturing prowess, meaning it is anticipated to become one of the fastest-growing economies in the region in the years ahead.

The think-tank pointed out that strong demographics, infrastructure spending, openness to trade, and attractiveness to foreign direct investments will all be factors which continue to drive future Vietnamese growth.

Furthermore, as stock market reforms progress, the country will continue to grow in importance among global investors.

With regard to prospects ahead for investment in Asia, he revealed that amidst prevailing market uncertainties, Asia's diverse landscape offers an abundance of opportunities for investors.

However, the pace of change in the region is rapid, meaning that financiers must be agile to navigate the ever-shifting dynamics of the markets.

He stressed that the implementation of the Regional Comprehensive Economic Partnership (RCEP) agreement will serve to further integrate trade and accelerate investments in the region. 

Additionally, by diversifying across different markets and sectors, investors can leverage Asia's growth potential whilst simultaneously cultivating resilient portfolios for the future.

First batch of 2024 lychee crop reaches Germany

A total of 3.5 tonnes of fresh Vietnamese lychees recently arrived in Germany, marking the first shipment of this year's crop to reach the European market.

The airlifted batch originally came from Phuc Hoa commune in Tan Yen district of Bac Giang province, northern Vietnam.

Nguyen Xuan Viet, director of Vifoco Import-Export Joint Stock Company (Vifoco) in charge of the batch, noted that the firm’s whole process from harvesting the fresh fruits at farms in the nation to packaging and exporting items comes up to international standards.

During this year's lychee crop, Vifoco signed a contract to export 70 tonnes to Germany and 30 tonnes to Thailand.

The company signed a memorandum of co-operation with Phuc Hoa commune People's Committee to maintain production for the next five years in order to meet orders.

According to the Ministry of Industry and Trade, as of June 5, Bac Giang province had harvested around 30,000 tonnes of fresh lychees, including 14,000 tonnes from Tan Yen district. Nearly 13,000 tonnes of lychee were shipped abroad, mainly to the Chinese market with over 12,000 tonnes.

Bac Giang lychees sold well in both the domestic and foreign markets. Upon reaching supermarket shelves in China, the UK, Japan, and Thailand, the fruit attracted significant customer interest, with many people eager to taste and purchase them.

Petrol prices reduced on June 6

Retail prices of petrol products were slashed starting 3pm on June 6 by the Ministry of Industry and Trade and the Ministry of Finance.

Accordingly, the price of E5RON92 bio-fuel was cut by 618 VND per litre from the base price to be not higher than 21,141 VND (0.83 USD) per litre, while that of RON95-III fell by 542 VND to 21,977 VND per litre at the maximum.

Meanwhile, diesel 0.05S is capped at 19,422 VND per litre, down 325 VND per litre. The kerosene price is not higher than 19,557 VND per litre, down 374 VND per litre.

Mazut oil 180CST 3.5S is now sold at no more than 17,285 VND per kg, down 253 VND per kg.

The two ministries also decided not to use the petrol price stabilisation fund this time./.

Taxation authority urges the implementation of e-invoices created from cash registers

The General Department of Taxation requires effective implementation of tax management for electronic commerce activities (e-commerce) and electronic invoices (e-invoices) initiated from cash registers.

Following Government and Ministry of Finance directives to enhance tax collection and prevent tax evasion in e-commerce, solutions for electronic invoices from cash registers are being expanded. This helps individuals and businesses use electronic invoices efficiently and improve cost-effectiveness and management of systems, preventing tax losses in the retail sector. It supports consumer rights and contributes to the finance sector's digital transformation.

The Director General requires provincial and city tax departments and the Large Enterprise Tax Department to conduct comprehensive reviews and inspections of tax declarations, payments and electronic invoice usage by e-commerce businesses, online platforms, affiliate marketers, digital content providers, advertisers and software suppliers. Focus is on those conducting online and live-streaming sales.

From August 1, electronic invoices from cash registers must be implemented for golf course ticket sales and related services, as well as golfing apparel, equipment and accessories.

A plan for inspection and supervision will ensure business establishments’ understanding and compliance with tax regulations, promoting electronic invoices and preventing revenue losses. Tax department leaders and officials must propagate policies and legal regulations on tax declaration and electronic invoice usage to all relevant golf businesses.

The directive also includes evaluating tax management and planning for electronic invoices from cash registers for businesses generating revenue from tourist sites and entertainment activities, with reports due to the General Department of Taxation by August 1, 2024. 

Vietnamese fashion, furniture, household goods expected to join int’l distribution system

Vietnamese businesses should improve their competitiveness and access markets effectively to bring their fashion, furniture and household goods into the international distribution system as the demand for such products is showing rosy signs, experts said at an international workshop in Ho Chi Minh City on June 6.

Ta Hoang Linh, Director of the European-American Market Department under the Ministry of Industry and Trade (MoIT), said the group’s export revenue has grown impressively over the past years, significantly contributing to the country’s total export value.

However, he said, intrinsic limitations and stringent regulations set by importers are posing marked challenges to Vietnamese firms, suggesting them catch up with the trend of green, sustainable economy, stay updated on consumer preferences, and work out clear strategies on developing new products.

According to Director of the HCM City Investment and Trade Promotion Centre (ITPC) Tran Phu Lu, Vietnamese fashion, furniture and household goods hold export advantages, especially in terms of product quality. However, finance and personnel limitations have made it hard for domestic enterprises to compete with big brands in the world.

He suggested them optimise digital transformation in production, closely coordinate with suppliers, put forth flexible production and management plans, and keep a close watch on market changes.

Tran Nhu Tung, Vice Chairman of the Vietnam Textile and Apparel Association (VITAS), said partners have asked Vietnamese factories to use clean energy, make commitments and take specific actions in shifting to sustainable production.

Given the fierce competition, he advised domestic enterprises to invest more in machinery and equipment to raise productivity and quality, while diversifying products and markets./.

Quang Nam techfest promotes innovation, startup

Thousands of startup initiatives and products, OCOP items, and standout rural industrial goods are on display at the TechFest Quang Nam 2024, an innovation startup promotion event that opened in Tam Ky city of the central province on June 6.

The five-day event, the fifth of its kind in Quang Nam so far, drew the attendance of many localities and five universities seeking investment opportunities to develop their startup ecosystem.

Speaking at the opening ceremony, Acting Chairman of the provincial People’s Committee Ho Quang Buu said boasting an array of national- and international-scale activities, the event is a good chance for the participants to expand connectivity, promote digital technology application to introduce their innovative products, and spread the startup spirit, contributing to the local socio-economic development.

Meanwhile, Deputy Minister of Science and Technology Hoang Minh highlighted that the techfest encourages the community to protect intellectual property and strengthen trade in the digital era, and provides organisations and individuals with effective tools for innovation that create business advantage for sustainable development.

Various conferences and forums are scheduled in the framework of the event, with the participation of experts from the Republic of Korea, Japan, the Philippines, Azerbaijan, and Kazakhstan, and Vietnamese startup support organisations./.

Numerous opportunities for cooperation between Slovenian, Vietnamese firms: insider

There are plenty of opportunities for Vietnamese enterprises to expand investment in Slovenia which is located in the centre of Europe and boasts an export-oriented economy along with strengths in a variety of fields such as transportation, logistics, engineering and pharmaceuticals, according to Vesna Nahtigal, General Manager of the Chamber of Commerce and Industry of Slovenia (CCIS).

Nahtigal said that economic cooperation between Slovenia and Vietnam is becoming increasingly important, clearly shown through strengthened trade and political relations.

Two-way trade has nearly tripled in the past seven years. Last year, Slovenia exported commodities worth 70.5 million EUR (76.8 million USD) to Vietnam, while spending 51.7 million EUR purchasing products from the Southeast Asian country.

She noted that the most promising areas of cooperation between the two countries are transportation, logistics, engineering, machinery and equipment products and services, and environmental technology, which are the pillars in Slovenia's exports to the Asian market.

Stressing the importance of the EU-Vietnam Free Trade Agreement (EVFTA)’s advantages, Nahtigal shared that Slovenia is looking forward to the ratification and implementation of the EU-Vietnam Investment Protection Agreement (EVIPA), which will allow the promotion of investment partnerships in the future.

In order to promote cooperation in Slovenia's transport and logistics sectors, two business forums on leading supply chain solutions for Vietnamese goods to Central and Eastern Europe will be held in Ho Chi Minh City and Hanoi by the CCIS, the SPIRIT Slovenia Business Development Agency, Ministry of the Economy, Tourism and Sport and the Ministry of Foreign and European Affairs of Slovenia.

Their purpose is to develop business relationships with Vietnam-based international transport and logistics companies, industry players and stakeholders, and introduce comprehensive supply chain solutions from port, customs, maritime and road transport to destination for goods exported from Vietnam to Central and Eastern European markets and imports from these markets to Vietnam.

According to her, Vietnam's business expansion into the EU's common market of 450 million consumers and 27.5 million enterprises will be facilitated by cooperation with Slovenian companies./.

Vietnamese coffee introduced at Vietnam International Sourcing 2024

A coffee booth introducing various kinds of Vietnamese coffee has been set up at the Saigon Exhibition and Convention Center where the Vietnam International Sourcing 2024 is getting underway from June to 8.

The booth, launched by Central Retail Vietnam and the Ministry of Industry and Trade, features five key Vietnamese coffee products, including roasted coffee, instant coffee, capsule coffee, canned coffee, and a coffee shop model.

Most notably, the largest retailer of Thailand also prepared a total of 10,000 cups of Vietnamese coffee for visitors at the exhibition, thereby helping to popularise the delicious taste of the products.

Central Retail hoped that the event would help to popularize high-quality Vietnamese coffee and open up greater opportunities for coffee firms to meet and connect with their potential partners, thereby further expanding markets and developing brands.

Central Retail will work alongside local coffee enterprises to bring the products to the wider world through specific R&D initiatives, said Olivier Langlet, Group CEO of Central Retail in Vietnam.

He stressed that Central Retail stands ready to support domestic businesses in identifying and developing coffee products with high added value, improving production capacity, meeting international standards, and connecting with global distributors.

He also expressed his belief that Vietnamese coffee’s influence will be greater on the world coffee map.

Covering an area 10,000 square metres, the Vietnam International Sourcing 2024 has attracted the participation of more than 500 firms from 25 countries and territories around the world.

The three-day event features 500 booths displaying food products, garments and textiles, fashionable accessories, shoes, bags and luggage, sports and outdoor items, household appliances, and home decorations.

Energy, oil, gas – pillar in Vietnam-Russia cooperation

Within the framework of the 27th St. Petersburg International Economic Forum (SPIEF 2024) in Russia, a Vietnamese delegation on June 6 held working sessions with representatives from the Russian Ministry of Economic Development, St. Petersburg’s foreign affairs committee and Russian companies – Novatek and Sistema.

At the meeting with Deputy Minister of the Russian Ministry of Economic Development Vladimir Ilychev, the two sides discussed economic and trade cooperation between the two countries as well as their coordination in the Vietnam-Russia Inter-Governmental Committee on Economic, Trade and Scientific-Technological Cooperation.

Both sides agreed that the inter-governmental committee is an important mechanism to promote the implementation of high-level agreements, remove obstacles, and contribute to strengthening the comprehensive strategic partnership between Vietnam and Russia. The two countries’ ministries and sectors are actively preparing for the 25th meeting of the committee that will be held this year.

Ilychev highly appreciated the participation of the Vietnamese delegation in the SPIEF 2024, adding that it contributes to strengthening the two countries’ economic cooperation in general and creates an opportunity for the two sides to discuss responses to global challenges.

The two sides agreed that there remains large room for their bilateral cooperation and affirmed that energy and oil and gas are a pillar of their cooperation.

They agreed to create favourable conditions for their businesses to cooperate effectively and expand their partnership towards new areas such as clean, green energy transition and sustainable development.

At the meeting between the delegation and the St. Petersburg authority, the two sides appreciated the cooperation between Vietnamese localities, especially Ho Chi Minh City and St. Petersburg.

They agreed to jointly organise celebrations of several major anniversaries of Vietnam and Russia in 2024 – 2025.

On this occasion, the Vietnamese side thanked St. Petersburg for organising people's diplomacy activities such as the Vietnam Week and scientific seminars on relations between the two countries.

Meanwhile, the St. Petersburg authority wanted to expand and deepen cooperation with Vietnamese localities such as Hanoi, Khanh Hoa, and the Vietnam Union of Friendship Organisations in people-to-people exchanges.

At the meeting with executives of Novatek and Sistema, the Vietnamese delegation was informed that the groups hope to seek cooperation opportunities in Vietnam including liquefied natural gas production, offshore wind power, textile and garment export, electric ship production, pharmaceutical industry, tourism, and hotels.

The Vietnamese side affirmed that Vietnam always creates favourable conditions for foreign businesses, including Russian ones, to seek investment and business opportunities in Vietnam, based on compliance with the law and the Vietnam - Russia comprehensive strategic partnership./.

Trans-Asia trade fair 2024 opens in Quang Tri

The Trans-Asia Bridge trade-tourism fair 2024 opened in Quang Tri central province’s Dong Ha city on June 6.

The week-long event, featuring nearly 400 booths of hundreds of enterprises from Vietnam, Laos and Thailand, is an opportunity for domestic enterprises to promote their products and establish trade links with foreign partners.

The host province’s booths showcase a variety of products including agro-forestry-fisheries products, handicrafts, wooden furniture, craft products, garments, stationery, household appliances, tourism services, real estate, finance, banking, and local specialties.

Foreign booths introduce a wide range of products such as furniture, traditional cuisine, agricultural products, handicrafts, and jewelry, among others.

Within the framework of the fair, a programme to link suppliers in the north central coastal region with exporters and trade promotion units will also be held.

The event is one of the important trade promotion activities of Quang Tri and the north central region, contributing to orienting the development of the domestic market and exports. It's also an opportunity to strengthen cooperation, promote economic development, cultural exchanges, improve competitiveness, market expansion, and promote the brands of local products.

Besides, it also creates a venue for localities in the East-West Economic Corridor and the Greater Mekong Sub-region to introduce their economic, socio-cultural achievements, potential, advantages and preferential policies to attract investment.

The Trans-Asia Bridge trade fair will last until June 12./.

Deep processing helps enhance export advantages for local agricultural products

The shifting from exporting raw products to increasing the proportion of refined and processed products with high added value has helped to enhance export advantages for Vietnamese agricultural products, heard a workshop held on June 7.

Addressing the event, Deputy Minister of Industry and Trade Phan Thi Thang emphasised that Vietnam is currently the world’s second, first, and third largest supplier of coffee, cashew nuts, and rice respectively.

The signing of numerous free trade agreements (FTAs) has served to create a huge competitive advantage for key agro-forestry and fisheries products thanks to tariff reduction commitments, she added.

In addition, these FTAs have contributed to attracting high-quality foreign investment in agriculture, thereby helping local firms get involved in the global supply chain in a sustainable manner.

Statistics show the agro-forestry-fisheries sector raked in US$24.14 billion from exports in the first five months of 2024, up 21.0% year on year. Major consumers include the United States, up 23.9%; followed by China, up 8.6%; and Japan, up 6.6%.

Notably, several farm produce categories have witnessed a rise in export value, including coffee with US$2.9 billion, up 44.1%; rice with US$2.65 billion, up 38.2%; fruit and vegetables with US$ 2.59 billion, up 28.1%; and shrimp with US$1.3 billion, up 7.5%.

Thang pointed out that Vietnam has been implementing a number of policies in support of agricultural production as it shifts from exporting raw materials to increasing the proportion of refined products, while simultaneously facilitating the application of science and technology in agriculture and attracting investment to develop food processing.

These policies have contributed to improving the overall product quality, diversifying export items, and accelerating the transition from developing agricultural supply chains to developing industry value chains in order to keep up with consumption trends in the global market.

In particular, the Ministry of Industry and Trade and the Ministry of Agriculture and Rural Development have also coordinated efforts to ramp up trade promotion activities and speed up negotiations to open markets for Vietnamese agricultural products.

Agriculture still faces numerous challenges ahead

However, industry insiders also outlined three major challenges faced by the Vietnamese agricultural industry, including higher quality standards on the origin of products set by foreign importers.

Furthermore, the negative impact of epidemics, trade wars, and geopolitical conflicts have caused protectionism to return as economies seek to protect their domestic production, a factor which has seen Vietnamese export goods at risk of facing more trade lawsuits.

There will be numerous difficulties for the industry as sustainable development, carbon emission reduction, and environmental protection are inevitable trends in almost all of key Vietnamese export markets.

Experts also underlined the need to change the mindset of agricultural production to an agricultural economy with the ultimate aim of ensuring ecological, environmental, human, and sustainable development factors.

Fishery export grows 6.5% in five months

Vietnam shipped an estimated 3.6 billion USD worth of fishery products abroad during January-May, a year-on-year increase of 6.5%, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

During the span, the export of tuna rose 25% against the same time last year to nearly 397 million USD.

Nguyen Ha, a tuna market specialist, said as inflation-weary consumers tightened their purse strings, demand for cheaper products like canned tuna was high during the period, adding the US, the EU, and Israel were the biggest importers.

Shipment of the products to other Middle Eastern countries like Lebanon and Greece was also saw a strong surge, she added.

Crab export skyrocketed 84% year-on-year to 101 million USD during the period, with China and Japan being the largest buyers.

The export of tra fish garnered nearly 755 million USD, slightly rising 3% while that of shrimp was 1.3 billion USD, up 7%.

According to VASEP Communications Director Le Hang, Vietnam’s export markets have showed signs of recovery, both in demand and prices, with fishery shipment to the US, Japan, the EU, and the Republic of Korea (RoK) posting positive growth from 5% to 26% in May.

As of the end of May, export to the US increased 13% to 635 million USD while that to Japan, the RoK, and the EU witnessed modest expansion of 3-4%, she added.

In the meantime, shipment to China in May fell 8% year-on-year as consumers tightened their purse strings on a stagnant economy, she said, highlighting Vietnamese tra fish has gained foothold in this market as importers shifted to cheaper goods./.

No equitisation plan approved in five months

Not any enterprise had its equitisation plan approved in the first five months of this year, the Ministry of Finance reported on June 5.

However, progress was made on restructuring efforts. As of May, authorities approved restructuring proposals by 101 firms. The Prime Minister approval covered five out of nine enterprises, while owner representatives signed off on plans for 96 out of 667, including 19 State-owned and 77 local companies. The remaining SOEs are still developing restructuring plans for submission.

State divestment activity also saw a slow pace. During May, the State Capital Investment Corporation (SCIC) divested from two enterprises, generating proceeds of 180.58 billion VND (7.52 million USD). A total of four SOEs were divested in the first five months of this year, for 149.2 billion VND.

The ministry has pledged a renewed commitment to drastic, substantive and effective corporate restructuring, equitisation, and State capital divestment throughout 2024. This initiative will be closely linked with efforts to modernise corporate governance practices within SOEs, including boosting operational efficiency through modern technology platforms, enhancing accountability, and addressing loss-making or ineffective projects to ensure the best interests of the State, employees and investors./.

Industrial parks increase supply of high-quality ready-built factories

The strong development of the industrial real estate market has promoted the ready-built factory segment in the eyes of international and domestic manufacturers.

According to the General Statistics Office, by May 2024, foreign direct investment (FDI) flow into Vietnam had continued to achieve positive results, with more than $11 billion pledged, an increase of 2 per cent over the same period last year. Meanwhile, disbursed capital reached about $8.25 billion, an increase of 7.8 per cent over the same period in 2023.

Figures from the Vietnam Association of Realtors (VARS) show that investment policies and support from the government, along with improving infrastructure and strategic positions in global supply chains, the stable political environment, and competitive labor costs have made Vietnam an attractive investment destination.

In addition, with the potential of the semiconductor market, global businesses have shown interest and started investing in Vietnam. These factors have led to increased searches for factories and industrial parks that meet location, services, and quality infrastructure requirements, such as stable power sources, treatment systems, high-quality infrastructure, effective wastewater management, and good investment support policies.

According to VARS, Vietnam's industrial real estate market still has much room for growth, promising to continue to maintain strong momentum, and is expected to continue to play a key role in the economy.

In addition, the logistics industry with the e-commerce expose is also growing strongly. Domestic and foreign logistics businesses are actively expanding their scale and scope of operations in Vietnam. Real estate for rent in industrial parks (IPs) is of interest to investors thanks to preferential policies and guaranteed industrial infrastructure.

According to RSL Group Co, ready-built factories are the optimal choice for businesses because they have outstanding advantages that help save time and initial investment costs.

In addition, businesses can be flexible in choosing the space to rent a factory, as well as choosing a suitable operating time for the project. Moreover, these factories are all operated by professional management units, helping businesses quickly resolve required legal procedures.

Meanwhile, giant industrial real estate developers have also quickly taken advantage of opportunities by researching and developing IPs following ecological trends and comprehensive infrastructure to meet modern production needs and improve service quality and competitiveness.

Industrial parks increase supply of high-quality ready-built factories
According to Saigon VRG Investment JSC, one of the leading industrial real estate developers in the southern market, to meet the increasing needs of investors, IPs must quickly change, adapt, and increase service quality.

Saigon VRG is gradually making changes towards the development of eco-IPs, in accordance with the general development trend seen around the world. Infrastructure in IPs is also guaranteed, such as stable electricity and water supply, modern wastewater treatment system, quality assurance, and advanced security.

Saigon VRG is also proactively building standard factory areas in key locations, ensuring adequate provision of utility infrastructure to meet the needs of small- and medium-sized enterprises.

In particular, a factory area covering ​​nearly 20,000 square metres located in Le Minh Xuan 3 IP (Binh Chanh - Ho Chi Minh City) is set to go on the market.

Ready-built factories in the IP have an area of ​​680sq.m, integrating 2-storey offices and utilities such as electricity, water, wastewater treatment, fire protection, and located near the centre of Ho Chi Minh City, and have been sought after by interested investors.

According to the Management Board of Le Minh Xuan 3, the IP will continue to deploy the construction of ready-built factory areas in diverse spaces, fully meeting industrial infrastructure standards to suit the real demands of investors.

Saigon VRG is currently developing and managing four IPs in key areas of Ho Chi Minh City, Tay Ninh, and Dong Nai, including Le Minh Xuan 3 IP, Dong Nam IP, Phuoc Dong IP, and Loc An – Binh Son IP.

By the end of 2023, Saigon VRG's IPs had attracted more than 200 domestic and foreign investors with a total investment of about $8 billion.

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