An estimated 399.4 trillion VND (nearly 16.18 billion USD) was collected for the state budget in the first two months of 2024, equivalent to 23.5% of the year’s target and up 10.4% from a year earlier, the Ministry of Finance reported on March 6.

The ministry said that domestic revenue reached 24.6% of the target and increased 14.6% compared to that of the same period last year partly because economic activities in the first months of the year still maintained positive growth momentum from the end of the previous year and good consumption during the Lunar New Year holiday.

The ministry reported that 55 out of the country's 63 provinces and centrally-run cities recorded domestic revenue topping 16% of the estimate. Fifty-three localities saw an increase in collection compared to the January-February period in 2023 while 10 reported a decline in domestic revenue.

Meanwhile, state budget spending in the first two months of this year was estimated at 270.7 trillion VND, equal to 12.3% of the estimate, and up 7.7% year-on-year. Of the total, nearly 60 trillion VND was for development investment.

In the period, to continue supporting businesses and people to overcome difficulties, the Government exempted or reduced taxes, fees, and charges worth about 12.1 trillion VND.

Phone, component exports hit 5.5 billion USD in January

Vietnam earned over 5.5 billion USD from exporting phones and components in January, up 50.4% month-on-month.

Compared to that in the same month of 2023, the figure increased by 11.4%, according to the General Department of Vietnam Customs.

The US was Vietnam’s biggest importer of this commodity group, with a total value of 1.39 billion USD, or 25%.

Last year, the export turnover of phones and component parts hit 52.3 billion USD, making the group rank second in terms of value among Vietnam’s exports.

RoK emerges as largest importer of Vietnamese squid and octopus

Vietnam raked in US$62 million from exporting squid and octopus in January, up 45% year on year, of which the Republic of Korea (RoK) represented the largest export market, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).       

Specifically, the export of these products to the RoK skyrocketed by 67% to US$26 million in value compared to the same period last year.

Industry insiders pointed out that Japan's nuclear wastewater discharge has contributed to reducing the RoK's demand for seafood imports from Japan.

Meanwhile, although China makes up the largest supplier of squid and octopus to the RoK market, its recent ban on seafood imports from Japan has caused the supply source of the products from this market to decline due to a shortage of processing materials.

As a result, Vietnamese squid and octopus exports to the RoK are anticipated to continue to grow positively in the first quarter of the year as the Chinese ban on importing Japanese seafood has not yet been lifted.

Moreover, exports of the aquatic products to Japan also edged up by 19% to US$13 million in January, while exports to China and Hong Kong (China) saw three-digit growth at 151%, earning a turnover of US$7 million.

Vietnamese squid and octopus exports to the EU fell by 17% to nearly US$4 million in January due to the impact of the yellow card against the Illegal, unreported and unregulated (IUU) fishing imposed by the European Commission and global high inflation that has forced consumers to tighten their belt.

Vietnam’s production on path to recovery

The manufacturing sector recorded a return to growth right from the outset of 2024, with activities expanding in February fueled by increases in both volume and orders, experts from S&P Global said.

The S&P Global Vietnam Manufacturing Purchasing Mangers’ Index (PMI) posted 50.4 in February, up from 50.3 in January, and above the 50.0 no-change mark for the second consecutive month.

However, experts said the rate of improvement in the sector’s health signaled by the index remained only marginal.

The increase of new orders encouraged manufacturers to expand their staffing levels for the first time in four months, and to the greatest extend within a year.

Meanwhile, statistics from the General Statistics Office showed that the index of industrial production (IIP) in the first two months was estimated to grow 5.7% year-on-year. The manufacturing and processing industry that creates more than 80% of the industrial growth expanded by 5.9%.

The European Chamber of Commerce in Vietnam (EuroCham) and еру Korean Chamber of Business in Vietnam (KorCham) held that the increases in output and new orders together with suppliers’ shortened delivery time in the second consecutive month signal a growth possibility for the first quarter of this year.

EuroCham Vice Chairman Torben Minko said despite formidable challenges forecast for the beginning of this year, European investors’ confidence has increased since their traditional partners have kept orders and they have seen Vietnam a production hub in the global supply chain.

With a view to supporting the production industry, the Ministry of Industry and Trade will join hands with competent agencies and localities to accelerate and put into operation industrial production projects to serve local consumption and export.

Vietnam to host Southeast Asian steel exhibition this May

Hundreds of Asian businesses will gather at the Southeast Asia Iron and Steel Institute (SEAISI) Conference & Exhibition 2024 which is scheduled to take place in Vietnam’s central Da Nang city from May 13 to 16.

This is one of the most important events in promoting the Vietnamese steel industry, with SEAISI arranging many international conferences and exhibitions on steel industry among Southeast Asian countries in rotation, according to the Vietnam Steel Association.

Many trade promotion activities and seminars on the latest steel production technologies and the world's future demand for steel will be held during the SEAISI Conference & Exhibition 2024.

In particular, this year SEAISI will consist of a dialogue between Vietnam Steel Association and Taiwan Steel Association of China, and a golf exchange programme among entrepreneurs in the steel industry slated for May 12.

Along with Southeast Asian businesses, many famous companies from Australia, Japan, and the Republic of Korea will join the fair.

Last year the SEAISI 2023 Conference & Exhibition got underway from May 22 to 25 in the Philippines. The Vietnam Steel Association and many big companies such as Vietnam Steel Corporation (Vnsteel) and Hoa Phat Group (HPG) attended the main conference and working sessions of SEAISI’s subcommittees.

Vietnam’s Hanoi hosted the SEAISI Conference & Exhibition in 2016, leaving a positive impression on international exhibitors.
 
Vietnamese products introduced at Kuwait hypermarket

A number of major Vietnamese products such as cashew nuts, macadamia nuts, fruits, and soft drinks were introduced to Kuwaiti people at Lulu Hypermarket on March 5 during the Taste of Vietnam.

Local consumers also had the chance to sample some of traditional Vietnamese dishes like fried spring rolls and pancakes, among others.

Addressing the event, Vietnamese Ambassador to Kuwait Ngo Toan Thang thanked Lulu for its support and expressed his hope that Taste of Vietnam would bring Vietnamese products closer to Kuwaiti people.

Taste of Vietnam is taking place at a time when Kuwaiti people’s shopping season is in full swing in the lead up to the Holy Month of Ramadan. It’s expected that Vietnamese products will be among the favourites with local consumers.

On this occasion, the Vietnamese coffee brand Coffilia officially opened its second store at Lulu Hypermarket in Jahra. This is part of the company’s plan to expand its operations and cater to local tastes.

Townhouse, villa transactions fall in HCM City

Townhouse and villa transactions in Ho Chi Minh City have fallen to the lowest in the last five years with their primary supply reaching only 40% and a low absorption rate, according to real estate consultancy Savills Vietnam.

Moreover, most of the townhouses and villas are priced at over 30 billion VND (1.2 million USD), exceeding the affordability of the majority of house buyers in the city.

According to Savills Vietnam, last year, the primary supply of townhouses and villas in Ho Chi Minh City saw a year-on-year decrease of 40% to 993 units, the lowest in the last five years.

In addition, only 286 units were sold last year, marking a year-on-year reduction of 73% and the absorption rate drop to 29%. 

Explaining the slowdown, Giang Huynh, associate director at Savills Vietnam, said that the capital mobilisation process is still affected by the inspection of real estate bond issuance. In addition, the world’s economic and political developments leave heavy impacts on the domestic economy, causing the incomes and cash flow of businesses and people to be blocked.

On the other hand, the scarcity of land funds in the inner city area of Ho Chi Minh City has pushed up house prices, leading to reduced affordability. Because of limited supply, investors gradually target the high-end housing segment, thus narrowing the buyer pool and slowing the absorption rate significantly.

She said the scarcity of land in the city has pushed up housing prices.

According to its urban development plan, by 2030, the city will focus on high-rise buildings to optimise land plots and meet the large housing demand.

This year 1,400 of them will enter the market, with 65% being priced at VND20-30 billion each, Savills has forecast.

Housing demand tends to shift to neighbouring provinces. Specifically, Binh Duong will have more than 3,400 new apartments, more than 90% of which cost less than 10 billion VND. Dong Nai will have 2,900 new apartments, 41% of which are priced at 5-10 billion VND and 29% priced at 10-20 billion VND.

According to Giang, Dong Nai and Binh Duong have the advantage of developing low-rise houses to supply the Ho Chi Minh City market. When infrastructure is upgraded and developed harmoniously, travel time from the provinces to Ho Chi Minh City will be cut, so housing prices become more reasonable and housing products are more diverse, which helps make demand stronger.

Seeing that trend, in recent years, big investors have acquired land funds in these suburban markets to deploy large-scale projects. Besides, housing prices in neighbouring provinces are more competitive than those in Ho Chi Minh City. The average primary selling price in Binh Duong and Dong Nai is just 16% and 22% of that in Ho Chi Minh City, Giang said.

Savills Vietnam forecasts that the supply of townhouses in Ho Chi Minh City in 2026 will reach nearly 5,500 units, equal to 78% of Binh Duong and 40% of Dong Nai.

The largest future supply with 1,500 units will be in the suburban district of Binh Chanh, followed by Thu Duc city with 1,300 units and Nha Be district with 1,000 units.

Businesses using foreign employees helped to solve difficulties

A dialogue was held in Ho Chi Minh City on March 6 to help enterprises using foreign employees deal with difficulties and obstacles.

The event attracted the participation of representatives from nearly 200 domestic and foreign businesses who discussed issues related to licensing; entry and exist and temporary residence procedures; personal income tax calculation; and payment of social and health insurance for foreign workers.

They also paid attention to solutions to cope with situations when terminating contracts with foreign workers related to social, health and unemployment insurance issues; and management and revocation of documents related to work permits when workers do not give back.

Representatives of the municipal Taxation Department, the Social Insurance Agency, and the Department of Public Security’s immigration unit answered participants’ queries, helping them address problems in their production and business.

They committed to being willing to receive questions and ideas for specific instructions and explanations to assist enterprises in implementing administrative procedures.

Statistics show that Ho Chi Minh City has nearly 30,000 foreigners licensed to work at the city’s agencies, organisations and businesses. They have been contributing to the supply of human resources with expertise, management experience, and professional working skills in accordance with international standards.

Wood, furniture industry advised to improve added value

Experts gathered at the Vietnam wood and furniture forum in Ho Chi Minh City on March 6 to discuss ways ahead for the sector which is facing formidable challenges posed by global economic slowdown, widespread inflation and conflicts.

Director of the Department of Forestry under the Ministry of Agriculture and Rural Development Tran Quang Bao said that wood and wooden products make up nearly 93% of Vietnam’s forestry value every year, and export of the goods have maintained two-digit growth, even during the COVID-19 pandemic.

However, enterprises have experienced a fall in orders as consumers have tightened their purse strings, he said, adding Vietnamese woodworks depend largely on foreign markets but purchasing power from large buyers in China, the EU, Japan, the Republic of Korea and the US decline sharply.

Bao held that major export markets’ strict regulations on product legality and sustainability, trade fraud, complicated trade competition and limited production capacity of domestic firms also put Vietnamese wood exporters in hot water.

Meanwhile, Giovanna Castellina, a representative from the Italian Centre for Industrial Studies, said that global wood furniture market size is around 480 billion USD, with China being the leading exporter, followed by the US, Italy, Germany, India and Vietnam.

Geopolitical tensions, conflicts and supply chain disruptions will affect the sector’s growth scenario this year, she said, adding the sector is forecast to go sideways and not grow in 2023, and will rebound in 2025.

She suggested Vietnamese firms diversify its market instead of a single one to reduce risks, elaborating as three fourths of Vietnamese furniture are absorbed by the US market, export value falls dramatically when demand from the market dwindles.

Sharing the same viewpoint, Chairman of the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA) Nguyen Quoc Khanh said that although Vietnam has been in the world’s top wood exporters, the country holds a small market share.

Against this backdrop, businesses should outline measures to reach new and potential markets, he added.

Despites short-term challenges, experts said wood enterprises should invest in R&D activities and create new designs to improve added values for the products with a view to expanding market share in the coming time.

Statistics of the Ministry of Agriculture and Rural Development showed that the sector’s export turnover reached 14.39 USD billion last year, down 15.8% year-on-year.

This year, the sector targets 15 billion USD in export revenue.

Over 300 exhibitors to join auto fair in HCM City

The 20th International Autotech & Accessories expo will take place in Ho Chi Minh City from May 16-19, expecting to see more than 300 domestic and foreign businesses, and over 15,000 visitors.

According to the event organiser Asia Trade Fair and Promotion Joint Stock Company (ATFA), exhibitors will bring to the event high-quality products with advanced technology from diverse fields, including vehicles, specialised vehicles, components, spare parts, electrical and electronics equipment, and traffic management systems.

In addition to products and services related to gasoline-fueled motor vehicles, Autotech & Accessories 2024 will focus on promoting products and services in the electric vehicle ecosystem with solutions and initiatives on batteries, charging stations, or applications installed on the vehicles.

Within the framework of the event, exhibitors and visitors have a chance to take part in trade connection events, seminars, test driving and car shows.

Brazil increases imports from Vietnam

Brazil’s import turnover of Vietnamese products recorded a year-on-year increase of 42% in February, the South American country's Ministry of Development, Industry, Trade, and Services announced on March 6.

In the month, the country’s export turnover totalled at 23.5 billion USD, while imports were valued at 18 billion USD, up 16.3% and 2.4% year-on-year, respectively.

Trade turnover between the nation and Vietnam neared 7 billion USD last year, surpassing the 2022 figure of 6.7 billion USD.

The two countries are striving to increase the figure to 10 billion USD in 2025 and 15 billion USD by 2030.

Vietnam attends world’s leading travel trade show in Germany

More than 70 Vietnamese travel agencies are introducing attractive tourism products and services at the International Travel Trade Show (ITB) 2024, which takes place in Berlin, Germany from March 5-7.

Themed “Pioneer the Transition in Travel & Tourism”, ITB 2024 features 5,500 exhibition booths from 170 countries and territories. Vietnam’s major companies in the industry are introducing their products and services at the event, including Vietnam Airlines, Saigontourist, Vidotour, and Viettravel.

Cao Chinh Mien, Director of the Vietnam Airlines branch in Germany, said that Vietnam Airlines has participated in the annual event for years as seeing it as an opportunity to promote the image of Vietnam and the national flag carrier in one of the most dynamic markets in the world.

The fair helps the carrier evaluate tourism trends in 2024 and 2025, he said.

According to him, tourism from Germany to Southeast Asia in general and Vietnam in particular has recovered about 95% compared to pre-COVID-19 pandemic levels.

Deputy General Director of Saigontourist Nguyen Dong Hoa said that ITB is an important fair for the world tourism industry, and his company attends the event every year, not only ITB Berlin but also ITB Singapore.

He expected that in 2024, Saigontourist's German market in particular and Europe in general will grow better.

On March 6, at ITB Berlin, head of Marketing and Product Sales at Vietnam Airlines Pham Thi Nguyet and Vice President in charge of development of Munich Airport (Munchen) Oliver Dersch signed a Memorandum of Understanding on opening a direct route between Munich and Vietnam from October 1, with a frequency of three flights per week. The number is targeted to increase to four by the end of this year.

FDI attraction up 38.6% in two months

Vietnam attracted 4.29 billion USD in foreign direct investment (FDI) in the first two months of 2024, a year-on-year surge of 38.6%.

Notably, several large-scale projects were granted investment registration certificates in February, such as Trina Solar Cell project in Thai Nguyen province and the Gokin Solar Hai Ha Vietnam project in Quang Ninh.

In the southern key economic region, a series of FDI projects were licensed in labour-intensive industries and those that use new and environmentally friendly technologies. Dong Nai topped the localities with 27 foreign-invested projects worth 439 million USD.

Vietnam's largest investment partners in the last two months remained traditional investors from Asia, including Singapore, Hong Kong (China), Japan, China, and the Republic of Korea (RoK), which accounted for 77% of new investment projects and nearly 85.5% of the total registered investment capital nationwide.

Meanwhile, although American investors registered 12 new investment projects in Vietnam, the total registered capital amounted to only 3.22 million USD. European investors have not yet boldly poured capital into Vietnam. The UK led European investors with a registered capital of 36.2 million USD in Vietnam.

Attracting FDI is a crucial goal for Vietnam in the coming years.

In addition to traditional partners in the region, insiders said Vietnam should focus on drawing more new and potential investors who have advanced technology, adding that diversifying investors will help Vietnam reduce overreliance on any single partner.

To improve the quality of FDI attraction, Vietnam needs to strongly improve the investment environment, and seek solutions to meet requirements from investors, especially those from European and American countries, insiders said.

Saigon ProAm Basketball Cup features elite players in second season

The Saigon ProAm Basketball Cup will be return to the city with competitive matches featuring both amateur and professional players at Hồ Xuân Hương Gymnasium, HCM City.

The second season will see 11 clubs, three more than the first season, competing March 13-23.

“The Saigon ProAm Basketball Cup 2024 brought by VNPAY will be really be a tournament to watch with the participation of veteran clubs such as reigning champion Next Level and Bảo Lộc along with newbies like Kimban Hoops and AIP Dreamers as well as guest teams Phú Thọ and Lãnh Binh Thăng," said head of the organising board Tô Duy. "The higher number of participants ensures a better chance for athletes to play and show their technique. Meanwhile, the competitiveness of the tournament will be increased as teams must work harder for wins."

This season, clubs could register as many professional and overseas Vietnamese players as possible but only one foreigner per team is allowed.

During 10 days of competition, basketball lovers will watch many VBA players wearing jersey of new teams. Among them are Huỳnh Thanh Tâm (Limitless Hoop), Võ Kim Bản (Kimban Hoops), Justin Young (Next Level Basketball) and Michael Soy (AIP Dreamers).

"Through the increasing number of teams, we also see the strong development of basketball in HCM City. We hope that from this tournament we will find basketball talent," Duy said. "We do not limit the number of pro and overseas Vietnamese players here as we want to push the love of sports, especially basketball. Don't care much about results but let's promote sport spirit, learn and develop ourselves."

The winner of the VNĐ200 million (US$8,100) tournament will lift the trophy and secure a berth in the Vietnam ProAm Basketball Championship scheduled in October.

In addition to competitive matches, supporters will enjoy the Fanzone space where they can shop for souvenir items as well as sportswear of different brands with discounts and gifted vouchers.

"We not only care about sport but also entertainment for our fans. Famous rappers and artists will come to entertain people. Mini games and other sideline activities will be organised to make sure our tournament is a place to visit," Lâm said.

The tournament is jointly organised by New Sports and VTVcab under the help of HCM City's Culture and Sports Department and Basketball Federation. 

Work starts on new biomass fuel plant in Tuyên Quang

Authorities of northern Tuyên Quang province and Japan’s Erex JSC kicked off the construction of the Erex Sakura Tuyên Quang biomass fuel plant on March 6.

The ceremony marked a significant step forward for the project, which will occupy a 3.3ha site and have a total investment of over VNĐ478.8 billion (US$20.4 million). Once operational in 2025, it is produce 150,000 tonnes of biomass pellets and 150,000 tonnes of wood chips per year.

The project is anticipated to contribute to addressing issues like environment pollution and greenhouse gas emissions, while promoting the sustainable development of biomass energy industry in Tuyên Quang.

Honna Hitoshi, President and Representative Director of Erex JSC, said the project contributes to realising Việt Nam's net emission reduction policy, providing stable electricity and meeting economic development needs of Việt Nam and Tuyên Quang in particular.

Chairman of the provincial People’s Committee Nguyễn Văn Sơn urged departments and agencies to work closely with the investor to step up the plant construction

Tuyên Quang now boasts 20 active projects involving 17 foreign investors, with a total investment exceeding $340 million. It also benefits from the support of numerous international partners, with the Japanese groups extending their involvement in 25 projects across health care, education and the environment, with a combined value of over $1.4 million. 

Digital trade promotion opens opportunities for firms to promote exports

Digital trade promotion activities have been consistently advanced and innovated to effectively adjust to new circumstances, supporting businesses in enhancing production, trade and export.

Vũ Bá Phú, Director of the Việt Nam Trade Promotion Agency (VIETRADE) under the Ministry of Industry and Trade, made the statement at an annual international conference on business to business (B2B) direct export and the announcement of the Top 100 featured businesses Việt Nam Pavilion on Alibaba.com held in Hà Nội on Wednesday.

“This is regarded as a prerequisite for the continuation of trade promotion activities in 2024, which will further bolster their role as a liaison between businesses and the market, bringing outcomes, instilling trust and generating momentum for businesses,” Phú said.

The event was jointly organised by VIETRADE and Alibaba.com, the leading global e-commerce platform, aiming to provide support to Vietnamese businesses, particularly small and medium-sized enterprises (SMEs), in enhancing their ability to utilise information technology for trade promotion.

He said VIETRADE has dedicated its efforts to research, implement and adapt trade promotion activities based on real-world circumstances. The ministry has also partnered with domestic and international partners to effectively support businesses. The top priority for the ministry is to assist businesses in diversifying their market development channels in this new era.

In fact, the significant digital transformation in trade promotion has brought benefits for Vietnamese export enterprises. These include cost savings, reduced distance and time barriers, accelerated transaction speed and order processing, and increased market access and potential customers. This has made a positive contribution to the country's impressive export achievements.

Alibaba.com is one of the most reputable global e-commerce channels with more than 260 million buyers in 190 countries and territories. This is a potential market for Vietnamese businesses to expand their business scale and sell to customers around the world. VIETRADE highly appreciates the role of Alibaba.com in promoting and organising support, consulting and training activities for Vietnamese businesses to gain more skills and knowledge about online export and thereby conduct sustainable business.

Phú said that in recent years, VIETRADE has co-ordinated with the e-commerce platform to successfully deploy conferences such as B2B International E-commerce Alibaba.com; and conference on strategic business orientation on digital platforms.

The conference also honoured 100 outstanding businesses selected to participate in the Việt Nam National Pavilion on the e-commerce platform. The MoIT is always ready to co-ordinate with relevant ministries, localities and business associations to create favourable conditions and support businesses to do business successfully on Alibaba.com, towards a future of sustainable economic development.

​The process of selecting 100 businesses took place from November 28, 2023 to January 15, 2024, with the goal of finding Việt Nam's most excellent businesses based on 14 evaluation criteria, including product quality, brand reputation, e-commerce level, export potential, business scale, geographical distribution and many other factors.

The programme aims to focus on supporting Vietnamese businesses in building images and promoting product brands, support business connection activities, and increase understanding of Vietnamese products among international customers.

In 2023, the VIETRADE co-ordinated with the e-commerce platform to build and operate the Việt Nam National Pavilion on Alibaba.com.

Mike Zhang, Country Director of Alibaba.com in Việt Nam, said Việt Nam National Pavilion is a special display of typical Vietnamese products. It is also a strategic platform for typical businesses to connect with global consumers, thereby maximising international market potential. Alibaba.com recognises the achievements of these companies and is pleased to help them reach their full potential in the world market.

Vietnamese suppliers selected for this programme would not only benefit from online visibility through the Việt Nam National Pavilion on Alibaba.com but also receive technical support, training and other supports in building and enhancing business profiles on the platform.

In particular, the scope of knowledge sharing covers many aspects of international trade, from e-commerce activities to international shipping, logistics and commercial law. The programme is also expected to open opportunities for export growth for participating suppliers through trade promotion events, buyer-seller connections and mutual learning opportunities, he added.

Nguyễn Anh Vũ, Deputy Head of Digital Government Department under the Việt Nam E-Commerce and Digital Economy Agency, emphasised the importance of digital transformation as a catalyst for business activities.

“Analysing and implementing smart strategies in e-commerce is a key factor for Vietnamese SMEs to grow strongly in 2024,” he said, stressing the need to use technology for a smart and innovative approach to cross-border e-commerce. 

PM told SBV to keep interests low and financial access easier

Prime Minister Phạm Minh Chính has tasked the State Bank of Vietnam (SBV) with leading and coordinating governmental ministries and agencies to keep interest rates low and financial access easier for businesses, according to Directive 18/CD-TTg signed on Tuesday.

He asked the central bank to conduct reviews on the results of credit issuance by financial institutes across the country, including commercial banks and credit institutions, to stabilise interest rates and stimulate credit growth in 2024, with an emphasis on the timely and sufficient provision of credit to serve the economy and the safety of the financial system.

The PM stressed the importance of taking a proactive, flexible and timely approach to monetary policies in 2024, in line with the main objectives outlined in Resolution 01/NQ-CP dated January 5, which prioritises promoting economic growth, resolving difficulties for production and business, meeting foreign currency needs for production and business, and ensuring macroeconomic stability and inflation control. 

The directive said top priorities in 2024 will continue to be reducing interest rates for loans, coupled with enhancing access to credit to support the development of production and business, as well as ensuring sufficient and healthy credit and foreign exchange.

In addition, it emphasises stronger inspection, control and supervision of credit issuance by credit institutions. This is to ensure a flow of credit, including foreign currency credit, concentrated in priority and important areas and growth drivers of the economy and serving the needs of business.

The issuance of credit outside legal regulations, to inappropriate subjects, and the granting of credit to executives, management boards, and their related individuals as well as shadow businesses at preferential interest rates, will be strictly dealt with. 

The central bank has been told to keep interest rates low and increase the application of IT technology, as well as promote social responsibility and business ethics among credit institutions. 

Vietnam and RoK aim to raise trade turnover to US$150 billion by 2030

Vietnam has committed to creating the optimal conditions for the Republic of Korean businesses to operate successfully in the country, aiming to raise two-way trade turnover to US$150 billion by 2030, said Minister of Finance Ho Duc Phoc at an investment promotion conference held in Seoul, the RoK, on March 7.

He expressed his hope that through the conference, firms from both sides would have additional cooperative projects to deepen economic links, as well as the comprehensive strategic partnership that exists between the two countries.

Taking the floor, Pham Nhu Anh, general director of the Military Commercial Joint Stock Bank (MB Bank), revealed that foreign investors, including Korean financiers who invest in Vietnam’s green transition and emissions, are anticipated to enjoy preferential tax policies provided by the Vietnamese Government.

Meanwhile, Kim Yong-Jae, standing commissioner of the Financial Supervisory Commission of the RoK, emphasised that the conference will open up bright prospects ahead for collaboration and development between the two countries.

He pledged to continue enhancing ties and sharing experiences with Vietnamese management agencies in a bid to further strengthen investment and business activities.

As part of the conference, the State Securities Commission (SSC) and the Korean Finance Association (KOFIA) signed a Memorandum of Understanding (MoU) to support management agencies and units operating the Vietnamese stock market, and to facilitate RoK businesses’ operations in Vietnam.  

Construction starts on two new sections of Ho Chi Minh Road in Mekong Delta

The Ministry of Transport and authorities in the two Mekong Delta provinces of Kien Giang and Bac Lieu held on Wednesday a groundbreaking ceremony for the two sections of Ho Chi Minh Road in the area. 

The Ministry of Transport and authorities in the two Mekong Delta provinces of Kien Giang and Bac Lieu hold a groundbreaking ceremony for the two sections of Ho Chi Minh Road in the area on March 6. Photo by Tienphong.

A total investment of VND3.90 trillion sourced from the state budget will be used for the construction of the 11-km Rach Soi - Ben Nhat section and the 41-km Go Quao - Vinh Thuan section in Kien Giang Province.

Of the total length of nearly 52km, about 6.60km will traverse the neighbouring province of Bac Lieu.

When completed, the four-lane stretches will have a designed speed of 80km per hour.

The construction of the two sections of Ho Chi Minh Road, an artery from the north to the south of Vietnam, is expected to help complete the transport network, improve the transportation capacity, and reduce traffic accidents in Kien Giang and Bac Lieu provinces.

Thai Binh eyes more foreign investors

According to the General Statistics Office, Thai Binh currently ranked fifth nationwide in luring foreign investment, with nearly $3 billion seen in 2023.
The province's Lien Ha Thai Industrial Park (Green IP-1) attracted seven additional foreign tenants last year, totalling more than $460 million in funding, to bring the total value of investment in the park to nearly $1.3 billion.

Adding to that run of good news for Thai Binh, on March 5, Taiwan's Pegavision Corporation broke ground on a $200 million, 10-hectare optical and medical equipment manufacturing plant for the park.

"Pegavision's venture in Green IP-1 is worth celebrating as it coincides with the announcement of the provincial planning of Thai Binh towards the end of the decade and beyond to 2050, creating a new era for the province and for investors," said Bui The Long, general director of Green i-Park, the developer of Green IP-1.

Green IP-1 can boast a sewage treatment station with a capacity of 5,000 cubic metres per day, a fully operational fire-prevention system, and the completion of 80 per cent of its internal traffic and technical infrastructure.

Currently, there are five projects in operation including Ohsung Vina Thai Binh, Lotes Vietnam, JinYang Electronics, Nam Tai, and Greenworks.

Green i-Park is also an active participant in community and charitable activities in Thai Binh. During the most recent Lunar New Year period, the park management sponsored the Den Tran Festival and distributed 2,000 gift packages worth nearly $41,000 to people in difficult circumstances.

In accordance with Prime Minister Pham Minh Chinh's direction on social welfare during his visit to the park last year, Green i-Park has invested around $1.2 million in a pumping station to prevent flooding and reduce the impact natural disasters have on the local environment.

Cement export strategies in good stead

There has been an upsurge in the intake of cement export orders to the United States, with new faces succeeding in making forays into the demanding market.
 
Vietnam is having to compete with its neighbours to export cement to Central America, Africa, and more, photo Le Toan
Since December, at least half a dozen vessels have anchored at Long Son Bai Ngoc Port to receive cement for export to the US for Long Son Cement of the north-central province of Thanh Hoa.

More cement producers, such as Nghi Son, Ha Tien, Thanh Thang, and Xuan Thanh have also been successful in securing export contracts to the US market.

For instance, last August, Vicem Ha Tien and Nghi Son Cement completed their first export shipments to the US.

The moves mark a leap forward in the strategy to bring Vietnamese cement products to nations around the world, particularly to demanding markets.

One industry expert told VIR that the cement sector incurs serious imbalance in supply and the demand, and the output scale is about 120 million tonnes a year, yet production might be much higher.

“Consumption just approximates 60 million tonnes a year, meaning half of the output is redundant. In this context, cement producers have ramped up efforts to bolster export to avoid inventory. Local producers might even accept meagre margins to embrace export contracts,” he explained.

Besides that, most export orders to the US are of modest volumes in the range of tens of thousands of tonnes.

For instance, the export shipment of Xuan Thanh Cement to the US last July weighed 55,000 tonnes, while the shipment of Nghi Son Cement to the US last May hit 31,500 tonnes.

Several other producers with exported shipments to the US earlier also had common volumes of 30,000-50,000 tonnes for each batch.

For producers, the most efficient method is selling products in the domestic market, with a short distance from ports.

Due to output redundancy, for years many local cement producers have propelled export, with 2021 being the peak year when nearly 46 million tonnes of cement and clinker were exported, and 80 per cent of the products went to markets such as China, the Philippines, Bangladesh, and several in the Middle East.

In 2023, Vietnam exported more than 31.3 million tonnes of cement and clinker, yielding over $1.32 billion, down 1.2 per cent in volume and 4.1 per cent in value on-year.

Last year also marked the second consecutive year with a sharp decline in the export volume of about 14 million tonnes compared to 2021.

Such a decline, however, is not surprising businesses in the sector. Le Nam Khanh, CEO of Vietnam state-run Cement Industry Corporation (Vicem), noted that besides a dip in volume, the export price of cement and clinker is also receding.

The export price at Quang Ninh Port has plunged compared to late 2022, with cement export price down $5-6 per tonne, and that of clinker shed $9-10 per tonne.

“Several of our members cannot export as they would like to, as the export price fell to such a low level that they can’t offset the production costs,” said Khanh.

The export prospects in 2024 are deemed as subdued as Vicem forecasts in the best-case scenario the export volume to be only up slightly, to 1.5-2 per cent, due to stiff competition from export items from China, Turkey, and several neighbouring markets.

China’s real estate market has also yet to show signs of rebound in 2024, leading to a cement glut in the domestic market. China is currently competing head-on with Vietnam for exporting cement to major export markets such as the Philippines, Central America, and South Africa.

Luong Quang Khai, a senior cement expert, assumed that the US is not an ideal destination for Vietnamese cement due to still modest export volume, irrespective of the fact that Vietnamese cement has to compete with similar sources from Turkey.

“Light at the end of the tunnel is that Central and South America is forecast to catch cement export growth when several countries in this region avail of the benefits of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, with zero tariffs when importing cement from Vietnam,” Khai said.

Dung Quất Shipyard's restructuring must not be delayed any further: Deputy PM

The restructuring of the Dung Quất Shipyard (DQS), a subsidiary of the Vietnam Oil & Gas Group (PVN), cannot be delayed any longer and progress and potential solutions must be reported to the Political Bureau on time, said Deputy Prime Minister Lê Minh Khái during a government meeting over poor-performing projects under the Ministry of Industry and Trade (MoIT) yesterday.

"The current plan is mostly about throwing together administrative procedures and therefore, lacking in substance. The root cause of the problems remains due to the lack of a comprehensive approach, which may take several more years to resolve," he said. 

He stressed the importance of quick, effective resolution and better-coordinated efforts by governmental bodies. To successfully restructure DQS, a clear and result-driven plan must be prepared, which possibly requires special mechanisms. 

He said the process of calculating assets, unfinished settlements, capital deficiency, accumulated losses and undervalued assets has been a tedious and lengthy one. While he acknowledged PVN's dedication and focus, Khái said going ahead with the restructuring without a carefully crafted plan would be a mistake. 

The Commission for the Management of State Capital at Enterprises (CMSC) has been tasked with building a proposal to be submitted to the central government by March 25, in which optimal solutions for DQS must be feasible and efficient while minimising losses, waste and procedural sequences.

According to a report by PVN, DQS remains the only business unit under the group with a specialisation in ship repair and shipbuilding, which offers the shipyard a major advantage and opportunities to participate in PVN's value chain and the strategic development of the energy industry, especially when Viêt Nam has identified an urgent need to modernise its ageing fleets.

Therefore, the restructuring of DQS has many targets from improving its financial performance, enhancing competitiveness, increasing production capacity and training skilled workers for the country's shipbuilding industry. 

Hồ Sỹ Hùng, deputy chairman of the CMSC, said a set of solutions for DQS has been proposed and accepted by PVN based on projected market demand and the shipyard's internal capacity for the 2023-35 period. 

In the first scenario, with an average annual revenue of around VNĐ1.31 trillion (US$53 million) during the period, DQS can start restructuring and putting additional investment in shipbuilding.

In a more optimistic scenario, the shipyard's average annual revenue was estimated at VNĐ1.49 trillion, as well as an annual profit of VNĐ65 billion during the period. 

To date, PVN has presented three restructuring plans for DQS, which have all been criticised and rejected by the central government and ministries due to poor feasibility, optimisation and a lack of definitive resolutions. To make matters worse, there is still no consensus on the proposed plans finalising of data, reporting figures, special mechanisms and handling debts, especially with lenders and related contractors.

Mai Thị Thu Vân, deputy head of the Government Office, said a DQS restructuring plan has been included in the 2024 working program of the Communist Party of Vietnam Central Committee and is scheduled to be submitted in the second quarter. According to the CMSC, the process of developing a plan for DQS has lasted ten years, spanning three Steering Committee terms, with multiple adjustments by PVN. She said both the commission and PVN need to be proactive and strictly follow the central government's directives.

A representative from PVN said immediately after receiving assets from the Shipbuilding Industry Corporation (Vinashin), a major failed project under the MoIT, DQS went bankrupt because it was not possible to repay Vinashin's due debts. In addition, the assets received from Vinashin were not part of PVN's development strategy and many of these failed to contribute to the group's economic activities. 

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