Việt Nam’s wood industry, in addition to meet stringent requirements in terms of origin, environmental and social responsibility, also needs to focus on diversifying export markets and developing uniquely designed products to thrive in the long run, a forum heard in HCM City.

Speaking at the 2024 Vietnam Furniture Industry Outlook forum on the sidelines of HawaExpo being held in HCM City from March 6 to 9, Trần Quang Bảo, director of the Department of Forestry, said wood product exports declined for the first time in 2023 after two decades of impressive growth due to global inflation.   

He mentioned difficulties and challenges faced by the industry, including increasingly strict control in major markets over the legality of timber sources to prevent deforestation and forest degradation and more stringent requirements in terms of environment and social responsibility.

Besides, most businesses are too small to build brands and vulnerable to market volatility. 

They also face huge competition, he said.

But there are also opportunities that could drive the industry’s growth, he said, pointing out that Vietnamese wood products are trusted by consumers around the world and Việt Nam ranks among the world's largest wood products exporters.

But it still accounts for a very small market share, which means there is considerable room for growth, he said.

Giovanna Castellina, senior partner at CSIL, an independent Italian research and consulting company, said globally furniture production is a large industry and was worth around US$480 billion last year, with China being the largest producer followed by the US, Italy, Germany, India, and Vietnam. 

She said prospects for 2024 and 2025 are clouded by major uncertainties like trade barriers and measures, geopolitical issues and strong inflationary pressures.

CSIL forecast the global wood industry to remain flat this year and grow again from 2025.

She admired Việt Nam’s furniture industry, saying it is flexible and has been growing faster than all the other countries’ in the last 10 years. 

But she also cautioned about its reliance on the US market, which accounts for 75 per cent of its shipments, saying: “The Vietnamese furniture export system is unbalanced and this is risky because when such a partner market is weak, the industry will suffer as a whole.”

Diversifying export markets is imperative, she added.

Nguyễn Quốc Khanh, chairman of the Handicraft and Wood Industry Association of HCM City (HAWA), said demand for wooden furniture and interior products is expected to increase in the long term.

He urged firms to find ways to gradually increase their share in major markets and constantly explore new markets.

Nguyễn Liêm, chairman of the Bình Dương Furniture Association, said during the market downturn last year low-value export orders fell the most since inflation and recession only affect low-income groups and they quickly cut back on purchases of discretionary goods.

A good sign is that many firms have invested significantly in technologies to improve product quality, and have shifted from OEM production to developing uniquely designed products to enhance the value.

The products have been appreciated by many global buyers, he added. 

SCIC plans to spend $19.4 million for 30 million shares of Military Bank

State Capital Investment Corporation (SCIC) has announced its plans to invest VNĐ480 billion (US$19.4 million) to purchase 30 million shares of Military Commercial Joint Stock Bank (MBB) through a private placement. 

The offering price is set at VNĐ15,959 per share.

This acquisition is part of MBB's issuance plan of 73 million shares, which was approved by MBB on January 27, 2024. The transaction is scheduled to take place between March 8 and April 6.

Under the approved plan, MBB will offer 73 million shares to two investors, SCIC and the Military Industry and Telecoms Group (Viettel). Viettel will purchase 43 million MBB shares.

These shares are restricted from transferring within five years.

Currently, SCIC holds over 491.4 million MBB shares, accounting for 9.42 per cent of the bank's charter capital. Upon the completion of the transaction, SCIC's ownership will increase to more than 521 million shares, representing 9.86 per cent of the charter capital.

After Viettel exercises its purchase, its ownership will rise to more than one billion shares, equivalent to over 19.07 per cent of MBB's capital, solidifying its position as the largest shareholder of MBB.

MBB shares have experienced a 32 per cent increase since the beginning of the year, reaching a historical peak of VNĐ24,600 per share. The private placement price stands at a discount of nearly 35 per cent compared to the current market price of MBB.

It is worth mentioning that the private placement for domestic investors will not affect the maximum foreign ownership limit of MBB, which remains at 23.2 per cent of the bank's charter capital. Following the completion of the private placement, MBB's charter capital will rise to VNĐ52.9 trillion ($2.2 billion), positioning it as the fifth-largest bank in the industry, trailing VPBank, BIDV, Vietcombank, and VietinBank.

MoC removes proposal on individuals selling, leasing five houses a year

The Ministry of Construction (MoC) has dropped a proposal that each small-scale real estate trader can only sell or lease 3-5 houses a year.

This is an important change in the second version of the draft decree detailing implementation of articles of the revised Law on Real Estate Business, which was updated on the ministry's website on March 5.

The ministry is seeking public opinion until April 27 about the proposals in this draft.

In the first version of this draft, the ministry proposed that individuals could only sell and lease a maximum of five houses each year. However, this later raised many concerns about hindering business freedom, so the ministry removed this proposal in the second draft.

Experts say that the important issue is data management to control sales and rental quantities. In fact, without careful data control, individuals trading property can circumvent the law and ask someone to sign their name. 

Therefore, it is necessary to tighten regulations managing brokerage activities such as requiring certificates and practice codes; coding transactions to have a database to manage these property trading transactions, Vietnam News Agency reported.

Data information systems relating to land and property products also need to be built, completed and interconnected. Then, it will be easy to compare and control real estate trading activities, and these specific regulations will be able to come into practice to ensure fairness.

The second draft also clearly states that organisations, households and individuals will be not required to establish an enterprise when they sell or lease real estate products that are not investment projects. 

They will carry out transactions according to civil law and regulations on notarisation, and must declare and pay taxes according to existing regulations.

Lê Hoàng Châu, chairman of the HCM City Real Estate Association, has recommended that property trading activities should be controlled by the tax tool that the Ministry of Finance is proposing to develop into law.

Those who sell real estate products immediately after buying will be subject to higher tax rates than those who buy to live or to sell after living for a while.

Managing real estate transactions will also require support from regulations and national data systems on land and housing or electronic identification data. Then, it can reduce speculation, making the property market more transparent.

Expert Đinh Trọng Thịnh, Senior Lecturer at the Academy of Finance, said the most important thing now is to have a mechanism to ensure that individuals sell and buy property products publicly and fully pay taxes for those property transactions.

It is possible to consider increasing tax rates for cases of surfing investment of real estate products. Some countries have used tax tools to increase the costs of speculative activities and reduce the attractiveness of real estate speculation, according to Thịnh. 

Retail sales of goods, services increase by 8.5% in February: GSO

The total retail sales of goods and consumer service revenue in February increased by 8.5 per cent over the same period last year to VNĐ509.7 trillion (US$20.63 billion), according to the General Statistics Office (GSO).

The figure contributed to a year-on-year rise of 8.1 per cent in total retail sales of goods and revenue from consumer services in the first two months of this year to VNĐ1.03 quadrillion.

Of the total, retail sales of goods were estimated at VNĐ798.3 trillion, accounting for 77.4 per cent of the total and up 6.8 per cent over the same period last year (up 4.5 per cent if excluding the price factor). 

Retail revenue of food and foodstuffs rose by 10.8 per cent, while household appliances and tools was up 18.1 per cent, garment 9.8 per cent, vehicles (except cars) 1.8 per cent and cultural and educational products 16.5 per cent. 

Revenue from accommodation and catering services rose by 14 per cent, while that from travel services surged by 35.8 per cent.

Thanks to the favourable visa policies, tourism stimulus programmes as well as the efforts of the Government and people, the number of foreign visitors to Việt Nam in February reached more than 1.5 million, up 1.3 per cent over the previous month and 64.1 per cent over the same period last year. The number for the first two months of this year hit more than 3 million, an increase of 68.7 per cent over the same period last year.

As a result, revenue from tourism services in the first two months of this year reached VNĐ9 trillion.

Meanwhile, revenue from other services was estimated at VNĐ105.9 trillion, accounting for 10.2 per cent of the total and increasing 9.7 per cent over the same period last year.

Economists held that the shopping season during the Lunar New Year (Tết) festival was a leverage for retailers to boost domestic demand and increase revenue right from the beginning of the year. The business outcomes in Tết also showed the consumption trend of the year, helping enterprises decide their market development strategies and business plans for the year, they added. 

HoSE adds two more $1bln market cap companies in Feb

With the strong gain of the market benchmark VN-Index in February, the Hồ Chí Minh Stock Exchange (HoSE) has two more companies with market capitalisation exceeding US$1 billion compared to the previous month, official data showed. 

The new additions are Refrigeration Electrical Engineering Corporation (REE) and Viglacera Corporation (VGC), with a market cap of more than VNĐ25.01 trillion and nearly VNĐ24.84 trillion, respectively, according to the State Securities Commission of Vietnam (SSC). 

In February only, REE experienced a 9.2 per cent gain, rising from VNĐ56,000 to VNĐ61,200 a share, and it continues to show an upward trend. Similarly, VGC's stock rose by nearly 6 per cent from VNĐ52,300 to VNĐ55,400 per share. 

During the period, the VN-Index outperformed globally with a 7.59 per cent gain, trailing only to Shanghai Comp's 8.13 per cent growth. 

As of the end of February, the southern bourse had 43 companies with market capitalisations exceeding $1 billion.

The rankings of market capitalisation on HoSE remained unchanged at the top positions, with Vietcombank's (VCB) stock securely holding the first position with a value of over VNĐ543.8 trillion, showing a significant increase from the previous month's value of VNĐ494.6 trillion. 

It was followed by BIDV after the lender's shares recorded a strong surge in market capitalisation, rising from VNĐ271.9 trillion to VNĐ302.1 trillion.

However, there were notable changes in the subsequent positions. Specifically, stocks of Vietinbank (CTG) jumped from the fifth to the third position as its value increased from VNĐ180.7 trillion to VNĐ190.9 trillion. Conversely, Vinhomes (VHM) lost its third position despite an improvement in market capitalisation of VNĐ188.98 trillion.

The remaining positions in the top ten companies with the highest market capitalisation are Hoà Phát (HPG) with VNĐ180.3 trillion, PV Gas (GAS, VNĐ177.77 trillion), Vingroup (VIC, VNĐ172.07 trillion), VPBank (VPB, VNĐ157.9 trillion), Vinamilk (VNM, VNĐ150.5 trillion) and Techcombank (TCB, VNĐ148.650 trillion).

These companies experienced significant fluctuations in market cap due to the VN-Index's significant growth in February, closing the month at VNĐ1.25 quadrillion.

Statistics from HoSE showed that all sector indices showed gains. Notably, the information technology sector surged by 12.99 per cent, followed by the materials sector with a gain of 11.24 per cent and the financial sector with a 7.66 per cent rise month-on-month. 

By the end of February, there were 600 securities listed and traded on HoSE.

These included 396 stocks, four closed-end fund certificates, 14 exchanged-trade fund (ETF) certificates, and 186 warrants with collateral. The total volume of listed securities surpassed 156 billion shares. 

The market capitalisation of stocks on HoSE reached VNĐ5.07 quadrillion ($205.3 billion), marking a 7.64 per cent increase month-on-month and an 11.23 per cent from the end of 2023. 

The figure accounts for over 94 per cent of the total market capitalisation of listed stocks and is equivalent to 50 per cent of the GDP in 2023 at current prices.

In February, foreign investors' total trading value on the exchange surpassed VNĐ57.56 trillion, accounting for 8.7 per cent of the overall market trading value. Foreign investors conducted net buying worth over VNĐ2.39 trillion during the month.

VinaCapital Ventures invests in Việt Nam-based video conferencing provider

VinaCapital Ventures, the technology investment vehicle of VinaCapital Group, has announced its investment in Quickom, a Việt Nam-based video conferencing communication provider with proprietary and US-patented technology. It is leading the current US$1.5 million seed funding round.

Quickom was founded in 2021 by Dr. William H. Nguyen, a Vietnamese technology pioneer and serial entrepreneur with a history of successful ventures in communication technology, education, computer network and data security, serving tens of millions of users worldwide.

In 2023, Quickom hosted over 500 livestreaming events on its platform. The company has cooperated with a number of large organisers including the Vietnam National Innovation Center, Techfest Vietnam, HOZO, and ETH Vietnam. With these and other top-tier clients, Quickom expects its top-line revenue will grow by more than 100 per cent year-on-year over the next three years.

The global video communication market is experiencing rapid growth, fueled by the increased adoption of virtual workplaces and workforces. 

To facilitate this surging demand, most video-conferencing providers rely heavily on centralized data centres which present significant challenges, including inefficient resource utilisation and costly scaleup.

Quickom’s solution differs from other conferencing providers by utilising a decentralised peer-hosted network architecture that enables data transmission directly between users or nodes, bypassing the need for a centralised data centre. The decentralised network employs an algorithm that extracts unused bandwidth and processing power to process and route video, audio and other data, significantly bringing down the overall costs associated with hosting virtual calls.

Its solution also reduces network congestion, resulting in stable and high-quality calls as well as lower operating expenses, maintenance costs and energy waste.

Nguyen said the company was delighted to welcome VinaCapital Ventures as one of its investors, adding that “Their investment will play a pivotal role in driving Quickom's global expansion in the conference business.”

Hoàng Đức Trung, Partner at VinaCapital Ventures, said: "Việt Nam is quickly closing the gap in terms of technological advancement and the digital transformation of the economy is well underway. Quickom is a perfect example of one of the startups leading the way. Its solutions are innovative and advanced, addressing important current issues such as cyber security and data privacy as well as future cyberspace threats. We are thrilled to be one of Quickom’s early investors and are excited to see where they take the business.”

Rising prices benefit coffee growers

Vietnamese coffee growers are reaping significant profits from sharply increasing coffee prices.

In the Central Highlands region, the price per kilo of coffee stands at approximately VND87,000 (USD3). Since February 2, the average export price of Vietnamese coffee has reached USD3,276 per tonne, indicating a 7.40 percent increase compared to January 2024 and a 50.60 percent rise year-on-year.

In the year's first two months, Vietnam exported around 438,000 tonnes of coffee, achieving a total value of USD1.38 billion. This represents year-on-year growth of 27.90 percent and 85 percent, respectively.

Coffee export value has claimed second position for the first time, trailing only behind wooden products, according to Nguyen Nhu Cuong, head of the Crop Production Department under the Ministry of Agriculture and Rural Development.

Experts predict brighter opportunities for Vietnam's coffee exports amid a global supply decline.

The International Coffee Organisation estimated that the 2023-2024 coffee yield in Indonesia will drop by 16.60 percent compared to the previous harvest, totalling 10 million bags due to unfavourable weather conditions.

Nguyen Thi Hoa from Krong Nang District in the Central Highlands province of Dak Lak reported her family making a profit of VND59 million per hectare from coffee.

The Vietnam Coffee-Cocoa Association expects Vietnam’s coffee export value to reach a new record of USD4.5-5 billion this year.

VKBIA and Yen Bai ink MoU on trade-investment cooperation

The Vietnam - Korea Businessmen and Investment Association (VKBIA) and Vietnam’s northern Yen Bai province signed a memorandum of understanding on business - trade cooperation and support between the two sides.The signing ceremony took place in Yen Bai on March 6 during a working session between a VKBIA delegation led by its president Tran Hai Linh.

The MoU will support Korean investment funds, corporations, businesses, and organizations to explore investment and business cooperation opportunities in Yen Bai. It will also support the two sides’ corporations and businesses that have export and import needs to access each other’s markets.

The two sides agreed to cooperate and exchange experiences in investment and trade, contributing to improving their investment and business environment. They also agreed to support the business community to take advantage of opportunities from the Vietnam - Korea Free Trade Agreement (VKFTA), and to promote the implementation of investment commitments.

The two sides will work closely together to organize conferences, seminars, and discussions on trade and investment cooperation, conduct surveys and make in-depth analysis of market needs of Yen Bai and Korean localities in order to support investment promotion, production and economic activities, trade, tourism, and development of high-quality human resources of all parties.

Yen Bai expects that VKBIA will serve as an important bridge for Korean corporations and businesses to come and learn more about the business investment environment in the locality.

Yen Bai always accompanies and supports Korean businesses to operate successfully in the locality, said Provincial Party Committee Secretary Do Duc Duy.

VKBIA head Tran Hai Linh for his part affirmed that VKBIA would coordinate closely with relevant agencies of Yen Bai to effectively implement the signed MoU, especially in the fields of employment, education-training and development of high quality human resources, as well as trade-investment promotion.

VKBIA will work hard alongside local agencies of Yen Bai to realise the MoU to bring about practical results to both sides, he assured.

Large number of cruise ship tourists to visit Vietnam this year

Thousands of international cruise ship visitors have visited scenic spots and tourist attractions in destinations throughout the country in March, according to travel firms.
 Azamara Journey cruise ship brings hundreds of visitors to HCMC in March.

At the beginning of March, Saigontourist Holding Company received Azamara Journey cruise ship owned and operated by Azamara Club Cruises, carrying hundreds of visitors of European, American, and Australian nationalities, and then welcomed a large number of cruise ships, including Celebrity Millennium, Silver Moon, Celebrity Solstice, Resort World One, Azamara Onward, Silver Shadow to arrive in HCMC, Ba Ria-Vung Tau, Nha Trang, Ha Long City, Hue and Da Nang.

Mr. Nguyen Thanh Luu, General Director of Saigontourist’s Travel Department said that this year, the number of cruise passengers to Vietnam has increased by 10-15 percent compared to the same period last year.

Leaders of Tan Hong Tourism Company - Du Ngoan Viet (Viet Excursions) also said that the company constantly welcomes large groups of cruise ship passengers from now until the end of the year.

Hanoi ranks first for foreign investment registered in 2024 so far

Hanoi attracted a total of $914.4 million in foreign investment during the first two months of 2024, including 27 newly-licensed projects with $869.8 million, 17 projects receiving additional investment of $9.1 million, and 21 instances of foreign investors contributing capital or purchasing shares, totalling $35.45 million.

Foreign investors have invested in 38 cities and provinces nationwide in 2024 so far. Hanoi leads the way with the total registered foreign direct investment (FDI) of nearly $914.4 million, accounting for 21.3 per cent of the total registered investment capital and surpassing the same period in 2023 by 24.4 times.

Hanoi Statistics Office reports that in January, the capital attracted $866.8 million in FDI. Of this, 10 newly-licensed projects accounted for $859.4 million, while six projects underwent adjustments with an additional registered capital of $5.1 million. Foreign investors contributed capital or purchased shares in seven ventures, totaling $2.3 million.

In February, Hanoi approved 17 new foreign-invested projects with total registered capital of nearly $10 million. Additionally, 11 projects underwent adjustments, resulting in increased registered capital of $4 million. Foreign investors contributed capital or purchased shares in 12 instances, reaching a total of $17.3 million.

Hanoi is recognised as a region with an investment-friendly environment for high-tech investors. The city not only focuses on establishing favourable policies for investors but also strives to enhance the development of industrial zones, particularly those specialising in high technology.

According to a Foreign Investment Agency report, Hanoi's investment capital saw a significant increase due to a large new project totaling over $662 million from Singapore, focusing on the development of a new urban area in the west of Hanoi. This is also considered to be one of the largest real estate transactions in Southeast Asia.

During a government press conference on March 2, Deputy Minister Tran Quoc Phuong outlined three breakthrough strategies aimed at attracting even more large-scale foreign ventures.

The first is to focus on improving infrastructure and land quality. According to the deputy minister, "Large-scale, foreign-invested projects require substantial land area and infrastructure. Therefore, our focus will be on completing infrastructure connectivity projects. At the same time, we will promptly implement guidelines on land laws."

The second strategy is to concentrate on training and building a high-quality workforce. Currently, the MPI is coordinating with the Ministry of Education and Training to urgently implement the training of high-quality human resources, for the semiconductor industry.

Third is the need for institutional improvement. The deputy minister stated that the National Assembly has recently issued many breakthrough policies, such as laws on procurement and land. In addition, the government has issued numerous regulations to improve the business environment by streamlining administrative procedures. "These new policies will undoubtedly make significant contributions to promoting the attraction of foreign initiatives in Vietnam," said Phuong.

A pivotal phase for e-car market growth

Though seeing positive signals in the Vietnamese market over the past year, e-car manufacturers are moving with new plans in 2024 with some hesitation.

In February, TMT Motors delivered more Wuling Mini electic vehicles (EVs) to customers in Kien Giang province, Hanoi, Ho Chi Minh City, and elsewhere, thus increasing the company’s total number of EV sales to about 500 to date.

Ho Hai An, general director of TMT Motors Electric, told VIR, “The Vietnamese vehicle market is currently quite vibrant, with many new car brands. TMT Motors will have its own direction, providing electric car models with affordable prices and guaranteed quality in line with global General Motors standards.”

“We are preparing for the launch of new EV models in the local market in 2024 to bring more choice to local customers, and the opening of more Wuling dealerships in other cities and provinces nationwide.”

Last year, TMT Motors launched its first electric vehicle model, the Wuling Mini EV, through a tri-party venture, opening up the small electric car segment in Vietnam. The company also opened a system of more than 20 authorised dealers nationwide.

An pins high hopes on its EV business, saying that EVs are an inevitable part of the world’s car market. “Vietnamese customers are increasingly interested in electric cars because the cost of using electric cars is lower than petrol ones, and they contribute to environmental protection. The first electric car model that TMT Motors offers to the market is an entirely new segment, with no competitors, so there are opportunities for us to dominate the market,” said An.

The path is similar for other brands, including GM Company.

“We plan to bring purely EV products to Vietnam in the future when market conditions are more favourable, including the government’s preferential policies for EVs, and more developed infrastructure for EVs to best meet users’ requirements,” a representative of GM said. “We currently have all the elements such as a finance and distribution system to accelerate when the market has all favourable factors. We see EVs as a trend in the long future, and we are expecting a boom. The segment that we are focusing on in the Vietnamese market is four-seat sedans.”

GM has been present in the Vietnamese market through distributors since 2020 when the market saw many difficulties during the pandemic. Seeing the local potential, the company has started its direct distribution activities in the market since August 2023, focusing on gasoline-fuelled cars.

Last year, Vietnam’s auto market saw a decline. However, GM still reported a growth rate of 18 per cent with sales of more than 5,000 units.

Elsewhere, Vietnamese-run carmaker VinFast saw a growth of 35 per cent in EV sales in the fourth quarter of 2023 compared to the previous quarter. For the whole of 2023, VinFast electric cars sold in Vietnam reached about 32,000. The company launched the four models during the year and plans to begin sales of the VF 3 by the third quarter of 2024.

The company has said the general market is still gloomy. “We have increased the number of vehicles delivered in the fourth quarter. However, due to global economic challenges, the conversion to EVs in some areas is still slower than expected, thus affecting the number of delivered vehicles,” said Tran Mai Hoa, deputy general director of Sales and Marketing at VinFast.

According to the Vietnam Automobile Manufacturers’ Association, the electric motorbikes and electric cars market in 2023 saw growth. It saw the launch of more hybrid and electric car models, from popular to luxury segments. This situation strongly changed from 2020 when the market had no products with similar or pure electric engines, except for Toyota with the B-sized SUV Corolla Cross hybrid.

According to SSI Securities Corporation, EVs accounted for 6 per cent of car sales in 2023.

Various experts said that EVs will receive more attention in the Vietnamese market this year. Currently, VinFast has almost no competitors in the most popular segment. Brands like Toyota, Hyundai, Mitsubishi sell hybrid or pure electric cars, such as the Corolla Cross hybrid, Xpander hybrid, and SantaFe hybrid. For luxury car manufacturers, in addition to BMW and Mercedes, electric cars will have other options from Volvo and Porsche.

BMI Research forecast that EV consumption will record a compound growth rate of 26 per cent in the 2023-2032 period, equivalent to an annual consumption of 65,000 vehicles in 2032.

However, there are still concerns over unfavourable conditions in the market, including EV infrastructure and fire risks.

Currently, EV charging stations have widespread coverage in Vietnam, with nearly 150,000 charging ports nationwide. They are located mainly in apartment buildings, rest stops, shopping centres, office buildings, parking lots, and gas stations. However, investment in installing charging stations on expressways is still limited.

“Authorities should soon issue policies for manufacturers and users to promote the EV development. Charging station infrastructure systems for EVs also need more investment to meet user needs,” said An of TMT Motors.

The GM representative added that in other countries such as Thailand and China, the governments have many supporting policies for EVs such as tax reduction and registration tax exemption to encourage people to use EVs. In these markets, there are currently hundreds of EV brands.

“I think 2024 is still the year of petrol cars. We will still focus on providing petrol car models in the Vietnamese market. It is expected that we will distribute four to five new car models in the mid-size segment in the months to come,” she noted.

Difficulties gradually on the wane in real estate sector

The real estate market boasts great expectations ahead of a series of amended laws and favourable interest rate policies.

CapitaLand Development (CLD) the real estate development arm of Singapore’s CapitaLand Group, last week kicked-off two of its largest-ever housing projects.

With an estimated investment capital of approximately S$1.12 billion ($796.9 million), Sycamore plans to build CapitaLand’s first large-scale residential project in Vietnam with more than 460 low-rise villas and about 3,300 apartments, with a total construction area of about 593,000 square metres.

Also last week, CLD started construction of its Lumi Hanoi project. Located on a prime site in the west of Hanoi, Lumi Hanoi has a projected total gross development value of about $760 million and offers about 4,000 units.

Ronald Tay, CEO of CLD Vietnam said, “Vietnam is one of three core markets for CLD, and we hold a long-term view of our business in the country. Despite the uncertainties in the nation’s real estate sector, we remain confident of securing compelling investment opportunities by leveraging our almost three decades of on-the-ground experience and strong financial standing.”

“We are on the lookout for attractive opportunities across various asset classes, with a focus on the residential and commercial sectors over the near term,” Tay added. “Our long-term vision is to become a developer of choice on Vietnam’s sustainable urbanisation journey, contributing to the country’s economic success through quality real estate products and services.”

Vinhomes also last week started construction on The Opus One apartment complex in Vinhomes Grand Park Urban Area, located in Thu Duc of Ho Chi Minh City.

The project provides four buildings of more than 2,000 apartments to the market with a total capital of more than $154 million. The project is expected to open for sale in Q2 and be completed in 2026.

In Binh Duong province, Phat Dat Real Estate Development JSC in February started construction of Thuan An 1, only three weeks after being licensed. It is expected to accelerate sales in the first half of this year.

According to the Vietnam Association of Real Estate Brokers, 2024 will be a year full of opportunities and challenges, with positive moves in supply and demand, especially in the development of affordable and social housing.

Chairman Nguyen Van Dinh said that the participation of investors will help narrow the gap between supply and demand, and make the market more stable.

“From the third quarter of 2024, the market will start to go up, the opportunity to buy houses at the bottom price will no longer exist. Therefore, the first and second quarter of 2024 are considered the last waves for investors to grasp,” Dinh said.

For people with real housing needs, he said that this was an opportunity to buy a house because this period was a time that businesses were forced to restructure and adjust selling prices at the lowest level to survive. “In the context of positive economic growth, real estate prices will certainly increase faster than incomes,” Dinh said.

Meanwhile, Le Hoang Chau, chairman of the Ho Chi Minh City Real Estate Association, said the real estate market was moving in a positive direction. “The difficulty is gradually decreasing. Towards the end of the year, more transactions will be reported in different projects. The ability of real estate businesses to withstand and overcome headwinds has also improved. It’s forecast that market growth will return in the second half of 2024,” Chau said.

Real estate expert Tran Khanh Quang added that this was the bottom price level for real estate, and a market for buyers.

“Currently, 20-30 per cent of investors with available cash in their pockets are hunting favourite properties in a good location and good price. These people have investing blood in them and are just waiting for the product to meet their investment needs, and have complete legal requirements before giving a final decision,” Quang said.

Meanwhile, Savills’ Ho Chi Minh City real estate market report for the fourth quarter of 2023 shows that the apartment segment is experiencing many short-term challenges.

For primary supply in Ho Chi Minh City in 2023, there were only were more than 10,700 units, the lowest number in the past 10 years. In Q4 alone, primary supply was 7,600 units, down 5 per cent on-year. New supply accounts for 37 per cent of primary supply.

A positive point in Savills data is that in 2024, new supply is expected to increase four-fold compared to 2023.

Meanwhile, according to data from Batdongsan.com.vn, the real estate market at the beginning of this year has more positive signs in terms of interest and number of postings from real estate buyers, compared to a year previously.

Data from this unit shows that the demand for searching for real estate for sale nationwide in January increased by two-thirds, and the number of real estate listings also increased by just over half compared to the same period in 2023.

The number of real estate searches nationwide started to increase from the second day of Lunar New Year and kept increasing strongly. By the 10th day of Lunar New Year, it reached an increase of 124 per cent compared to the week before.

Dinh Minh Tuan, director of Batdongsan.com.vn in the southern region, said that land plots outside and inside projects were the most sought after by buyers.

“Specifically, in January, the number of searches for land in Hanoi increased by 110 per cent, and project land increased by 77 per cent compared to the same period last year,” Tuan said. “Meanwhile, the number of searches for apartments in Hanoi increased by 71 per cent. Similarly, in Ho Chi Minh City, search demand increased from 71 to 73 per cent for land plots while apartments had an increase of 59 per cent only.”

AG&P LNG acquires 49% stake of Cái ­­­Mép LNG Terminal

LNG terminals and downstream infrastructure company AG&P LNG, a subsidiary of Nebula Energy, announced on March 7 that it has acquired a 49 per cent stake in Cái Mép LNG Terminal located in Bà Rịa- Vũng Tàu Province in southern Việt Nam.

Fully constructed, the Cái Mép LNG Terminal was developed by Hải Linh Company Limited, a prominent petroleum product import terminal and trader in Việt Nam.

AG&P LNG CEO Karthik Sathyamoorthy said: “Cái Mép LNG Terminal will play a pivotal role in enhancing the energy security of Viet Nam, paving the way for energy transition in Việt Nam. Strategically located, Cái Mép LNG will enable reliable LNG access to multiple power plants in its vicinity, including Hải Linh’s Hiệp Phước Power Plant - currently under construction - and to the industries in the southern Viet Nam region. AG&P LNG team has already worked closely with the Cái Mép LNG Terminal team to operationalize the terminal by Q3 2024. We are privileged to work with Hải Linh and make LNG available quickly and safely to the Vietnamese market.”

Hải Linh Company Limited CEO Lê Văn Tám said: “We are very excited to welcome AG&P LNG as our shareholder in our Cái Mép LNG Terminal Company. With this partnership, we will be able to expedite the terminal’s start-up and commissioning and LNG terminal operations into Việt Nam and serve the exponentially growing LNG demand in our country.”

The Cái Mép LNG Terminal has pipeline connectivity to Việt Nam’s largest power generation complex, the Phú Mỹ Industrial Zone, with gas-fired capacity of 3.9 GW. The terminal is strategically located near the Mekong River Delta and has three onshore tanks totaling to a capacity of 220,000 cubic metres of LNG storage, and LNG break-bulk capabilities that allow it to reload LNG into smaller vessels.

With a total of 14 bays for CNG and LNG truck-loading, the Cái Mép LNG Terminal is well-connected via multiple highways to several nearby demand centers to provide reliable access to LNG. 

Conference promotes sustainable development of Vietnamese pepper and spices

Vietnam International Pepper and Spice Outlook 2024 (VIPO 2024), taking place in Hà Nội, aims to promote sustainable development of the spice industry as well as establish business connection with potential markets.

Organised by the Việt Nam Pepper and Spice Association (VPSA) in collaboration with the Ministry of Industry and Trade and the Ministry of Agriculture and Rural Development, VIPO 2024 serves as a platform for exporters, suppliers, cooperatives, farmers and government bodies to gather and foster networking and explore cooperation opportunities.

VPSA’s Chairwoman Hoàng Thị Liên said that besides establishing business connection with potential markets such as the EU, the US, the Middle East, China and India, the event aimed to help local players understand the market trends and demands to better shape their production and export strategies.

According to Huỳnh Tấn Đạt, Director of the Ministry of Agriculture and Rural Development’s Plant Protection Department, the spice industry of Việt Nam has significant untapped potential.

Scattered production was hindering the application of technologies, he said, adding that encouraging large-scale investment in agriculture remained a major challenge.

He emphasised that the Vietnamese Government had put agriculture in the centre of sustainable economic development.

"It is critical to enhance cooperation and establish sustainable supply chains for the goal of promoting the sustainable and comprehensive development of the spice industry," he urged.

Although Việt Nam is a major exporter of pepper and spices in the world, the industry is facing a number of difficulties and challenges sparked by unpredictable market developments, political instabilities and prolonged trade conflicts causing supply chain disruptions, rising inflation and falling demand, according to Lê Hoàng Tài, Deputy Director of the Ministry of Industry and Trade’s Trade Promotion Agency.

Major importers are increasing requirements about sustainability of products, which brings not only challenges but also opportunities for producers like Việt Nam to change and develop.

The ministry will increase trade promotions to develop markets and build brands sustainably for Việt Nam’s pepper and spices.

Việt Nam has been the world’s largest pepper producer and exporter for more than 20 years. The country also ranks first in cinnamon export from 2022 and third in anise export.

Việt Nam’s spices are exported to more than 125 countries, making the country the third largest spice exporter in the world.

Việt Nam’s pepper export is forecast to be robust this year on scarcity of supply which has significantly pushed up prices in the global market.

Statistics of the Import-Export Department under the Ministry of Industry and Trade showed that Việt Nam exported 35,000 tonnes of pepper in the first two months of this year, worth US$143 million, representing a drop of 12.3 per cent in volume but an increase of 12.9 per cent in value over the same period last year.

Pepper export prices average $4,082 per tonne on February, 2 per cent higher than January and 35.9 per cent higher than February 2023.

According to International Pepper Community (IPC)’s updates, Việt Nam’s pepper prices are listed at $4,100 - $4,200 per tonne on Friday, 4-5 per cent higher than March 1.

In the domestic market, pepper prices range around VNĐ93,000 – 95,000 per kg.

According to Hoàng Phước Bính, Deputy President of Chư Sê Pepper Association in Gia Lai Province, there are fluctuations, but pepper prices are seemingly entering an upward trend. He predicted that pepper prices might hit the threshold of more than VNĐ100,000 per kg soon.

The pepper prices are rising on anticipated drops in global output, while farmers are in no rush to sell, but waiting for better prices.

IPC forecast global pepper output to drop by 1.1 per cent this year, equivalent to around 6,000 tonnes.

The drop might be stronger as Việt Nam, the world’s largest pepper producer, is forecast to see a drop of 10.5 per cent in pepper output to 170,000 tonnes, the lowest level in the past five years, as farmers cut down trees while prices slumped.

Pepper outputs of Brazil, Indonesia and India are expected to drop because of unfavourable weather conditions.

Meanwhile, the global demand for pepper is rising in the first quarter.

According to VPSA, the demand for buying pepper is increasing in major markets, helping reduce pepper inventories.

The Import-Export Department under the Ministry of Industry and Trade forecast that pepper prices will continue to increase in the first quarter as outputs are falling in major producers on unfavourable weather conditions.

The upward trend will continue because there are not many areas expanding pepper plantation.

According to Bính, a cycle of pepper prices often lasts around 10 years. The most recent cycle took place from 2006 to 2015 which saw pepper prices increase from VNĐ16,000 to VNĐ220,000 per kg.

After tumbling for a long time, pepper prices are entering a new upward trend. Bính said that this upward trend could be longer than previous cycles and could run for the next 10-15 years.

Previously, when pepper prices increased strongly, farmers massively expanded pepper plantation. However, things would be different now because there is almost no land to do so, he said.

In Tây Nguyên (Central Highlands) and Southeast region, the rapid expansion in the plantation of high-value trees such as durian and coffee left little land available. Coffee and durian prices are also at high levels.

He also pointed out that farmers were cautious about expanding pepper plantations after lessons from massive expansion around 8 years ago.

Besides challenges from falls in pepper plantation areas, the pepper industry was also facing new requirements of import markets, forcing both farmers and enterprises to prepare timely response.

Notably, the EU’s regulation on deforestation, which is being applied for six sectors first, namely coffee, soybean, timber, livestock, rubber and cocoa, might soon be applied for pepper.

The association said that it was necessary for the industry to prepare for the regulation.

Preparations should also be made for Việt Nam’s commitment to reduce emissions and achieve net zero by 2050.

The association proposed the Ministry of Agriculture and Rural Development raise measures to promote the development of the pepper industry sustainably over the rapid drop in cultivation areas as farmers cut down pepper to grow durian instead.

Customs statistics showed that Việt Nam exported 267,000 tonnes of pepper in 2023 to earn a total of $912 million, a rise of 16.6 per cent in volume but a drop of 6 per cent in value from 2022.

Average pepper export price in 2023 was at $3,420 per tonne, falling by 19.4 per cent against 2022. 

Bảo Minh Insurance, Australian insurtech firm partner to protect Vietnamese farmers

Bảo Minh Insurance and Australian insurtech firm Hillridge have entered into a partnership to offer parametric Typhoon Index Insurance, a new product in Việt Nam that will protect farmers from the country’s devastating typhoons.

The product is based on a simple, online purchasing process.

Payouts are calculated by a satellite-based system that measures the severity of the typhoon and the distance of the farm from that storm.

Policies are available from VNĐ10 million (US$406) to 75 per cent of the entire insured value of a farmer’s assets.

“Unlike traditional indemnity-based insurance, where pay-outs are determined through a damage assessment that can see cumbersome processing times and delayed claims, parametric insurance pays out – typically within 10 days – based on a transparent, predetermined calculation,” Hillridge CEO Dale Schilling said.

Nguyễn Ngọc Anh, Bảo Minh Insurance’s executive vice president, said this means farmers would be able to quickly replenish their stocks and replant their crops rather than wait for a prolonged assessment and claims period.

“We see tremendous opportunities for this product for farmers in sectors including aquaculture, forestry and crops like fruits, sugarcane and rubber, notably in central provinces such as Thanh Hoá, Nghệ An, Quảng Nam, Bình Định, and Bình Thuận, which face devastating storms every year.”

At a ceremony held in HCM City on March 7 Hiệp Thuận Agricultural Cooperative of Quảng Nam Province signed a deal with Bảo Minh to insure farmers with over 154 hectares of acacia plantations against adverse weather incidents and the impacts of longer-term climate change, becoming the product’s first customer.

USAID is supporting the first year of the insurance’s implementation along with other technical assistance to Hiệp Thuận.

Việt Nam, which is typically hit by four to six major tropical storms each year, has a particularly vulnerable agricultural sector that is frequently devastated when they strike.

But less than 5 per cent of farmers are insured against adverse weather events.

Construction of 5.5 million USD grease plant kicked off in Ninh Thuan

The Top Solutions Joint Stocks Company held a groundbreaking ceremony for its grease plant with an investment of 5.5 million USD at Phuoc Nam Industrial Park in Thuan Nam district, the south-central province of Ninh Thuan on March 8.

The project with an investment of 5.5 million USD from Thai and Australian investors is the first foreign-invested one that has been implemented in the province this year.

Doan Ngoc Tu from the company said the project, aiming to produce and import kinds of grease used for industrial machines, is expected to go operational by the end of this year.

Head of the Management Board of Industrial Parks of Ninh Thuan province Su Dinh Vinh said that the project is hoped to bring great benefits to investors, and positively contribute to improving industrial production value and commodity export revenue of the province.

Moreover, it will create more jobs for local workers, increase revenue for the provincial state budget, and contribute to the socio-economic development of Ninh Thuan province in the coming years.

He urged investors to focus resources to implement the project and comply with the laws on planning, land, investment, construction, environmental protection, and other relevant laws.

The investors, consulting units, and contractors were also asked to strictly comply with construction standards and regulations, and ensure work safety and environmental sanitation.

Conference promotes business connectivity between Vietnam, India

The India – Vietnam Business Conference 2024 was held in Ho Chi Minh City on March 8, creating business cooperation opportunities for enterprises of both sides.

Jointly held by the Vietnam Chamber of Commerce and Industry’s HCM City branch (VCCI HCM) and India’s Rourkela Chamber of Commerce and Industry (RCCI), the event drew the participation of leading Indian firms who are operating in steel, coal, IT, electronics, industrial machines, building materials, transportation, tourism, among others.

The businesses were updated with information on business climate as well as policies to develop economic and trade ties of Vietnam and India.

According to VCCI HCM Director Tran Ngoc Liem, India is one of Vietnam’s top ten trading partners while Vietnam is an important country in India’s Act East Policy, and is among four ASEAN member states having trade relations with India.

Two-way trade in 2023 was 14.36 billion USD, with Vietnam’s export rising 6.8% year-on-year to 8.5 billion USD and import falling 17.2% to 5.86 billion USD.

Statistics from the VCCI showed that most of Vietnam’s exports are computers, mobile phones and parts, steel, chemical, wood and wooden products, footwear, and coffee. In the meantime, India is an important supplier of raw materials and finished products for Vietnam regarding steel, chemicals, pharmaceuticals, garment and textiles and animal food.

India has registered some 1 billion USD in more than 400 projects in Vietnam, making it the 26th largest investors among 141 countries and territories with investments in the country.

Liem said as the two countries target 20 billion USD in two-way trade revenue in the coming time, they should bolster collaboration in the fields that they hold strengths and competitive edge such as mining, chemicals, healthcare-pharmaceuticals, supporting industry and IT.

For his part, RCCI President Sunil Kaya said that Vietnam and India boast huge potential to cooperate, given the signed the Double Taxation Avoidance Agreement, the agreement on encouragement and protection of investments, and the one on trade and economic cooperation.  

On the basis of the positive development in the bilateral trade and investment ties, the conference was organised to help business communities of both sides to enhance business relations in the time ahead.

Experts at the event held that along with studying Indian market, Vietnamese enterprises should understand Indian culture so as to set up sustainable relations with their partners.

Additionally, they should adjust marketing strategies to suit the Indian market's taste and trends, the experts stressed./.

Wood, furniture firms advised to utilise e-commerce to boost exports

Wood, furniture, and handicrafts  businesses should fully tap e-commerce channels to reach more customers, and increase sales and revenue, said insiders at a workshop in Ho Chi Minh City on March 8.

Themed “Cross-border e-commerce – global growth opportunity for Vietnam's furniture export,” the event was organised by the board of the Ho Chi Minh City Export Furniture Fair 2024 (HawaExpo 2024) in collaboration with Amazon and Wayfair.

According to Vice Chairwoman of the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA) Duong Minh Tue, with its position as one of the leading wood exporting countries globally, Vietnam's wood industry has expanded its export market, penetrating deeper into key markets such as the US, the European Union (EU), the Republic of Korea (RoK), and Japan, and increased its presence in emerging markets such as the UAE and India.

With strengths in forestry development, supportive policies for businesses, and free trade agreements signed with foreign partners, Vietnam's wood and wooden product exports have recorded great success in the international market.

Tue said in recent times, the traditional export market segment has been facing numerous challenges due to weak global consumption demand, increasing protectionist barriers, and countries continuing to maintain tight monetary policies.

However, the sales of furniture and handicrafts through e-commerce have continued to experience remarkable growth, she said, noting that participating in e-commerce platforms is a new direction for Vietnamese wood businesses.

To increase brand recognition and access more customers, businesses need to consider and invest systematically in online sales activities, diversifying sales channels in their business strategies, Tue said.

Although global trade has not fully recovered, global e-commerce continues to grow steadily, Senior Account Manager of Amazon Global Selling Vietnam Nguyen Thanh Yen My said, adding that cross-border e-commerce is a trend and a new form of export, which helps small- and medium-sized enterprises achieve strong growth.

According to My, in the US - Vietnam's largest export market, e-commerce in the furniture industry is projected to grow strongly over the next four years and could reach 118.6 billion USD by 2027.

If Vietnamese businesses can utilise advantages, the efficiency of Vietnam's wood and furniture exports will increases significantly, she said.

Sharing the same viewpoint, Wayfair Supplier Acquisition Senior Manager Jimmy Wangnoted that through e-commerce platforms, Vietnamese businesses can directly access a wide range of customers from all over the world.

SunRice Australia plans to expand investment in Vietnam

SunRice, Australia’s largest rice production and distribution group, wants to expand its operations in Vietnam, CEO Paul Serra told Vietnamese Prime Minister Pham Minh Chinh during a meeting in Canberra on March 8.

SunRice CEO Paul Serra (L) and Vietnamese Prime Minister Pham Minh Chinh during their meeting in Canberra on March 8. (Photo: VGP)
He said in 2008, the group acquired a controlling stake at the Lap Vo rice processing factory in the Mekong Delta province of Dong Thap with a processing capacity of about 260,000 tonnes/year.

The group has since 2022 been collaborating with the Australian Center for International Agricultural Research (ACIAR) to implement a project on developing a high-quality rice supply chain in the Mekong Delta, aiming to develop high-yield and high-quality varieties for the international market.

Serra briefed the Vietnamese PM on the group’s expansion plan and at the same time spoke highly of Vietnam’s implementation of the 1 million hectares of low-emission, high-quality rice project in the Mekong Delta.

For his part PM Pham Minh Chinh highly appreciated SunRice’s effective operations globally and in Vietnam, and expected that the group would connect businesses of the two countries to increase agricultural cooperation in the light of the recently upgraded comprehensive strategic partnership between the two countries.

He proposed that the group help with developing rice supply chains in Vietnam, enhancing technology transfer, and bringing Vietnamese products deeper into the global supply chain, especially in the Hala food industry.

The PM asked the group to work closely with the Ministry of Agriculture and Rural Development to deploy specific investment projects, and at the same time expand its operation with other major Vietnamese agricultural products such as fruits and seafood.

Domestic gold prices hit record-breaking VND82.2 million per tael

The domestic SJC gold price on March 9 morning continued its upward trajectory, reaching VND82.2 million per tael to surpass its all-time records.

Saigon Gold and Jewelry Company listed each tael of SJC gold at VND82.2 million, up VND300,000 for the buying price, and VND79.7 million, down VND200,000 for the selling price, compared to previous transactions on the same day.

Also in the morning, Doji Group rated the yellow metal at VND82.15 million, up VND300,000 per tael for the buying price, and VND79.65 million, down VND200,000 for the selling price, against the day before.

Meanwhile, Bao Tin Minh Chau Company bought and sold gold rings at VND69.98 million to VND68.78 million per tael for buying and selling prices, respectively, a VND600,000 increase over the previous trading session. So far, gold rings have set a new record of VND69.98 million per tael.

Currently, banking deposit interest rates are too low as people have rushed out to buy gold instead of putting their savings in the bank.

Consumers’ demand has therefore increased sharply, resulting in gold prices setting consecutive records.

In the global gold market, spot gold on the Kitco exchange was trading at US$2,178.6 per ounce at 11:15 a.m. on March 9, indicating an increase of US$9.1 per ounce compared to the previous session.

It was equivalent to approximately VND65.2 million per tael, or VND17 million per tael less than the domestic SJC gold price. 

World gold prices increased by more than 3% during the week, representing the strongest increase since mid-October 2023.

World gold prices soared after the United States released its February employment report. Accordingly, the unemployment rate increased and the growth of wages slowed down.

Corio Generation to develop offshore wind power in Vietnam

The leadership of Corio Generation that mainly operates in the field of offshore wind power expressed the desire to pilot projects in Vietnam during their meeting with Vietnamese Prime Minister Pham Minh Chinh in Canberra on March 8.

Yi-Hua Lu, head of Corio Generation’s Asia-Pacific region (APAC), briefed the Vietnamese leader on the firm’s profile, saying Corio, a subsidiary of Macquarie, operates in the field of offshore wind power and renewable energy. The firm is managing the world’s largest offshore wind power portfolio, with a capacity of more than 30 GWs in the UK, Norway, and Sweden.

Corio has engaged in research and development of a number of renewable energy projects in Vietnam since 2019. As a member of the Glasgow Financial Alliance for Net Zero (GFANZ), it is currently coordinating with partners to mobilize resources for energy conversion projects in Vietnam.

The firm on March 5, 2024 signed a memorandum of understanding on cooperation in developing offshore wind power projects in Vietnam with Power Generation Corporation 3 under Electricity of Vietnam Group (EVN).

Yi-Hua Lu said the firm plans to expand investment in Vietnam in the field of renewable energy, and it desires to pilot offshore wind power projects in the country.

For his part, PM Pham Minh Chinh, who is paying an official visit to Australia, highly appreciated the effective business and investment activities of Macquarie in general and Corio Generation in particular in recent times.

He asked the firm to coordinate with relevant Vietnamese ministries and agencies to examine and deploy specific projects, so as to bring practical benefits to both sides. Problems that may arise during the implementation process will be handled by a Deputy Prime Minister.

The PM also suggested that Corio diversify its partners in Vietnam, including Electricity of Vietnam Group (EVN) or Vietnam National Petroleum Group (PVN), which have also acquired experience in wind power development.

As Vietnam wants to develop the wind power industry, he asked the firm to focus on technical support and technology transfer, in addition to investment.

Vietnam is committed to creating favourable conditions and protecting legal and legitimate rights and interests of investors to help them operate and do business effectively and sustainably in the country, he said.

Conference seeks to expand export markets for Vietnamese pepper and spices

The Vietnam International Pepper and Spice Outlook 2024 (VIPO 2024) was held in Hanoi on March 8 in an effort to explore cooperation opportunities, foster business networking, and expand export markets for Vietnamese products.

Addressing the gathering, Huynh Tan Dat, director of the Ministry of Agriculture and Rural Development’s Plant Protection Department, noted that Vietnam has a high level of biodiversity with many valuable crops. Of this pepper and spices have contributed significantly to national GDP, improving farmer livelihoods and positioning Vietnamese brand in the world market.

Vietnam has been the world leader in pepper production and export for more than 20 years. It has also ranked first in the world for cinnamon export and third in anise export since 2022. Its pepper and spices are currently exported to more than 125 countries and territories worldwide, ranking third in global spice export, thereby gaining a firm foothold in many important markets.

However, he admitted that the local spice industry still has significant untapped potential. Scattered production is hindering the application of technologies, while encouraging large-scale investment in agriculture remains a major challenge.

It is imperative to strive to increase cooperation and establish sustainable supply chains towards the goal of promoting the sustainable and comprehensive development of the spice industry, said the official.

Meanwhile, Le Hoang Tai, deputy director of the Ministry of Industry and Trade’s Trade Promotion Agency, shared that despite maintaining its position as the largest pepper exporter in the world, the local spice industry still faces a number of difficulties and challenges sparked by unpredictable market developments, political instabilities, prolonged trade conflicts causing supply chain disruptions, along with rising inflation and falling demand.

Major importers such as the United States, the EU, and markets in the Middle East are increasing requirements about sustainability of products, which in turn brings not only challenges but also opportunities for producers like Vietnam to change and develop.

The Ministry of Industry and Trade will move to increase trade promotions in a bid to develop markets and build brands sustainably for Vietnamese pepper and spices, through supporting businesses to participate in major fairs and exhibitions both domestically and internationally, he said.

Taking the floor, Hoang Thi Lien, president of the Vietnam Pepper and Spice Association (VPSA), pointed out that VIPO 2024 serves as a platform for exporters, suppliers, cooperatives, farmers, and various government bodies to foster networking and explore cooperation opportunities.

Besides establishing business connections with potential markets such as the EU, the US, the Middle East, China, and India, the conference is expected to help local players understand ongoing market trends and demands as a way of better shaping their production and export strategies, stressed Lien.

Through the conference, she said experts and businesses could propose sustainable development solutions to maintain natural sources, as well as to meet environmental and social factors.

Businesses need to seek to enhance their role in ensuring people’s livelihoods, bringing farmers into the production chains to improve product quality, and meeting relevant market requirements, she said. 

Vietnam, RoK hold huge economic cooperation potential: Minister

Vietnam and the Republic of Korea (RoK) boast huge potential for economic and trade cooperation, especially after their ties were upgraded to a Comprehensive Strategic Partnership, Vietnamese Minister of Finance Ho Duc Phoc said on March 8.

At a working session with Korean Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok in Seoul, Phoc stressed that Vietnam is a top priority partner in the RoK’s official development assistance (ODA) supply while the RoK’s loans for Vietnam through the Economic Development Cooperation Fund (EDCF) and Economic Development Promotion Facility (EDPF) have been constantly expanded.

As both sides inked several framework agreements with total committed fund of up to 4 billion USD from the RoK, Phoc recommended the Korean side to join hands with the Vietnamese finance ministry and competent agencies to accelerate the implementation of new projects using the fund, especially the EDPF capital.

He expressed his wish to foster cooperation with the RoK, adding his ministry has worked to amend, supplement and issue new policies on finance and tax, particularly measures for the exemption and payment extension of taxes and fees, helping facilitate production and business, promote growth and carry out global integration commitments.

Vietnam has imposed the global minimum tax rate since the beginning of 2024 and the RoK may enact the new tax rule this year. Therefore, the Southeast Asian country hopes that both sides will share and discuss the building and implementation of the policy, he added.

Choi, for his part, stressed that Vietnam and the RoK are leading trade partners of each other, saying both nations should expand cooperation in the areas of trade, investment, development of supply chain, IT and human resources.

The RoK wants to step up the realisation of an agreement of capital support through the EDCF and EDPF, he said, highlighting the two nations need to boost collaboration in the fields of Vietnam’s interests and the RoK’s strengths.

He recommended Vietnam create a favourable business climate for Korean enterprises so that they can run effective, successful and sustainable business in the country.

The same day, Phoc had a meeting with Chairman of the Financial Services Commission Kim Joo-hyun, during which both sides discussed trends in the financial sector as well as measures to enhance cooperation in the field, including capital market.

While in the RoK, Phoc also had working sessions with the Financial Supervisory Service, Korea Exchange, Hana Financial Group and Export-Import Bank of Korea.

Vietnamese pepper & spice sector targets sustainability, comprehensiveness

Participants at an ongoing conference in Hanoi share views on how to develop the domestic pepper and spice sector sustainably and comprehensively in the time ahead.

Pepper and spices have significantly contributed to the national gross domestic product (GDP), improving the livelihoods of farmers, and positioning the Vietnamese brand in the world market, Huynh Tan Dat, Director of the Plant Protection Department under the Ministry of Agriculture and Rural Development, said at the Vietnam International Pepper and Spice Outlook 2024 (VIPO).

Vietnam has taken the lead globally in pepper production and export over the past more than 20 years, he said, adding that the country has been also the biggest cinnamon exporter since 2022 and ranked third in anise export.

Vietnamese pepper and spices have been shipped to more than 125 countries worldwide. The country has been the world’s third largest spice supplier and dominated many important markets.

Dat pointed to limitations and challenges in Vietnamese agriculture and the sector in particular such as small-scale production that has hindered science-technology access and application, and the requirement of big investments in the context that small-and medium-sized enterprises make up the majority.

Therefore, attracting investments to high-tech agriculture is not an easy task, the official said.  

VIPO 2024 is set to bring together domestic and foreign enterprises, and promote cooperation between insiders for the sustainable, comprehensive development of the pepper and spice sector, he stressed.

Apart from market connection and expansion, the conference is also expected to provide updates on foreign markets for Vietnamese businesses, thus helping them sketch out production plans, said Hoang Thi Lien, Chairwoman of the Vietnam Pepper and Spice Association (VPSA).

The conference, the fourth of its kind held by the VPSA, runs from March 8-10.

Conference promotes business connectivity between Vietnam, India

The India – Vietnam Business Conference 2024 was held in Ho Chi Minh City on March 8, creating business cooperation opportunities for enterprises of both sides.

Jointly held by the Vietnam Chamber of Commerce and Industry’s HCM City branch (VCCI HCM) and India’s Rourkela Chamber of Commerce and Industry (RCCI), the event drew the participation of leading Indian firms who are operating in steel, coal, IT, electronics, industrial machines, building materials, transportation, tourism, among others.

The businesses were updated with information on business climate as well as policies to develop economic and trade ties of Vietnam and India.

According to VCCI HCM Director Tran Ngoc Liem, India is one of Vietnam’s top ten trading partners while Vietnam is an important country in India’s Act East Policy, and is among four ASEAN member states having trade relations with India.

Two-way trade in 2023 was 14.36 billion USD, with Vietnam’s export rising 6.8% year-on-year to 8.5 billion USD and import falling 17.2% to 5.86 billion USD.

Statistics from the VCCI showed that most of Vietnam’s exports are computers, mobile phones and parts, steel, chemical, wood and wooden products, footwear, and coffee. In the meantime, India is an important supplier of raw materials and finished products for Vietnam regarding steel, chemicals, pharmaceuticals, garment and textiles and animal food.

India has registered some 1 billion USD in more than 400 projects in Vietnam, making it the 26th largest investors among 141 countries and territories with investments in the country.

Liem said as the two countries target 20 billion USD in two-way trade revenue in the coming time, they should bolster collaboration in the fields that they hold strengths and competitive edge such as mining, chemicals, healthcare-pharmaceuticals, supporting industry and IT.

For his part, RCCI President Sunil Kaya said that Vietnam and India boast huge potential to cooperate, given the signed the Double Taxation Avoidance Agreement, the agreement on encouragement and protection of investments, and the one on trade and economic cooperation.  

On the basis of the positive development in the bilateral trade and investment ties, the conference was organised to help business communities of both sides to enhance business relations in the time ahead.

Experts at the event held that along with studying Indian market, Vietnamese enterprises should understand Indian culture so as to set up sustainable relations with their partners.

Additionally, they should adjust marketing strategies to suit the Indian market's taste and trends, the experts stressed.

Vietnamese businesses join vegetarian food fair in Hong Kong

Vietnamese businesses joined some 300 exhibitors at the 10th Vegetarian Food Asia (VFA) that took place in China’s Hong Kong from March 8-10 to promote vegetarian and green lifestyles in Asia.

A wide range of Vietnamese organic products were on the showcase at the fair for the first time.

According to Deputy Director of Cau Ke Tra Vinh Wax Coconut Processing Company Limited (VICOSAP) Lam Ngoc Tu, she brought to the fair 10 lines of wax coconut products, which were exported to the US, the UK, Japan, and China’s Taiwan and Hong Kong, so as to seek more vegetarian consumers.

Other Vietnamese products such as coffee, cashew nut, noodle and dried fruits also won the interest of Hong Kong customers.

Chief Representative of Guangdong Import-Export Association in Vietnam Kelvin Chau said that he took Vietnamese firms to the fair so that they could have opportunities to access the Hong Kong market, and through which to enter the Chinese market.

Organised for the first time in 2015, the VFA has become the largest and most comprehensive showcase of vegetarian and eco-friendly living in Hong Kong. It has drawn the participation of companies from many countries worldwide, including China, China’s Taiwan, Thailand, Turkey and Vietnam.

At this year event, vegetarian, vegan and plant-friendly guests had the chance to explore the latest vegetarian movements in Asia with various seminars and workshops. It also offered an opportunity for producers and businesses to promote connectivity so as to launch naturally organic products to the market to meet increasing demand of the consumers.

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