Vietnam earned 2.68 billion USD from forestry exports in the first two months of 2024, up 47.4% year-on-year, according to the Department of Forestry under the Ministry of Agriculture and Rural Development.

The sector enjoyed a trade surplus of about 2.46 billion USD in the period.

This year, the agriculture sector is striving for 15.2 billion USD in forestry exports, of which 14.2 billion USD will come from the export of wood and wood products, up 6% year-on-year.

To that end, the industry will strictly control and manage imported wood, ensure wood is of legal origin before processing, and encourage the use of raw wood sources from domestically grown forests.

In addition, it will promote trade promotion activities, develop markets in new potential regions, and organise international fairs, while encouraging wood processing and exporting enterprises to link with forest growers in production chains./.

Top 500 fastest growing enterprises 2024 announced

The 2024 list of the top 500 fastest growing enterprises in Vietnam (FAST500) has been released by the Vietnam Report JSC.

The top 10 businesses consist of Binh Thuan Plastic Group JSC, HD Securities Corporation, Orient Securities Corporation, Imedia Technology and Services JSC, SOL E&C Construction Investment JSC, Vietnam Vitadairy Milk JSC, Taseco Land Investment JSC, Stellapharm J.V. Co. Ltd, CNC Technology Solutions JSC, and Bee Logistics Corporation.

The rankings were based on several criteria, including compound annual growth rates, total assets, equity, pre-tax profits, and media reputation.

Aside from releasing the FAST500 rankings, the Vietnam Report JSC also announced the results of a business survey.

Accordingly, 51.7% and 46.7% of the interviewed companies said they failed to achieve last year’s revenue and profit targets, respectively. Both the rates of companies reaching and surpassing the two targets were lower than in 2021 - 2022. Notably, the rates of those with declined revenue and profits increased almost twice and 1.5-fold compared to the same period of 2021 - 2022.

General Director of the Vietnam Report JSC Vu Dang Vinh said after a trying period, it is not easy to shore up market confidence, as well as business confidence. In particular, as difficulties still linger on, even staying afloat becomes a considerable challenge to enterprises.

He cited statistics showing that the number of companies withdrawing from the market in the first two months of 2024 was higher than the figure of firms entering the market and resuming operations. Among them, the number of enterprises suspending operations topped 49,000, up 27.1% year on year.

Vinh noted that though grey still dominates the panorama, it is encouraging that business optimism has improved in part. In the survey, conducted in January - February, businesses rated the economic prospect 3.5 out of 5 – higher than in 2023, and their own prospect 3.8.

Enterprise optimism can create a positive cycle, he said, adding that it also reflects their readiness to face challenges and seek opportunities in all circumstances, along with their confidence and adaptability in a challenging business environment.

China approves 27 more durian growing area codes for export

The General Administration of Customs of China has just approved 27 more durian growing area codes for export in Vietnam’s southern Binh Phuoc province.

The licensed growing area covers 701.5ha of durian under cultivation with an estimated output of 14,030 tonnes.

Binh Phuoc now has 65 durian growing area codes licensed by China, ranking fourth in Vietnam in terms of the durian growing area codes.

The province strengthens the supervision and management of the codes for export every six months. The results will be reported to the Plant Protection Department under the Ministry of Agriculture and Rural Development to inform importers and maintain the codes of growing areas and packaging facilities.

About 95% of Binh Phuoc’s fresh durian output is exported to the Chinese market, while the rest is consumed in the domestic market, according to the provincial Department of Agriculture and Rural Development.

Currently, Vietnam has 876 durian growing area codes and durian packing facility codes eligible for export to China.

Vietnam exports durian to 23 markets worldwide, with China emerging as the biggest consumer. Last year alone saw China import more than US$2 billion worth of Vietnamese durian, accounting for 91% of the total export earnings from this fruit.

Petrovietnam partners with Danish firm to develop renewable energy

The Vietnam Oil and Gas Group (Petrovietnam) has recently signed a memorandum of understanding (MoU) on cooperation in renewable energy with Denmark’s Copenhagen Infrastructure Partners (CIP).

Under the document, the two companies will exchange knowledge and best practices on energy transition issues, including technology, supply chain, logistics, infrastructure, and skills development.

This will include support for training programmes in new renewable energy technologies such as Power-to-X (green hydrogen, green ammonia), battery storage, energy islands, and beyond.

They will also seek opportunities for collaboration in developing offshore wind power projects in Vietnam.

Danish Ambassador to Vietnam Nicolai Prytz affirmed that Vietnam and Denmark have had effective cooperation in the field of energy.

The embassy will continue acting as a bridge and encouraging potential Danish companies to invest in Vietnam, especially in green transition, he said, adding that Danish investors are also willing to invest in the country’s offshore wind power projects to provide electricity and reduce carbon emissions.

HCM City, Yellow River localities of China to foster economic links

Ho Chi Minh City and the Chinese localities on the banks of the Yellow River boast much room for economic, trade, and investment cooperation thanks to cultural similarities and complementary goods structures, heard a conference held in the Vietnamese city on March 11.

Giving a brief introduction of his province, Vice Governor Song Junji said Shandong is an economically large province on the eastern coast of China and home to rich resources. Its economic size ranks third in China while its industrial production value is over 1 trillion CNY (nearly 139.2 billion USD) to top the country. It is the fifth biggest destination of foreign investment, accounting for 11% of the total in China.

Meanwhile, he noted, HCM City is the largest economic hub of Vietnam that posts fast-growing trade, information technology, culture, and tourism and holds considerable potential for extensive economic partnerships with the provinces in the Yellow River basin and China at large.

The goods structures of Vietnam and China are highly complementary to each other. For the past many years, China has continually been the biggest trading partner of Vietnam, which in turn respectively ranks fourth and first among trading partners of China in the world and ASEAN, according to Song.

He added that the conference, held by the People’s Government of Shandong, aimed to form a foundation for boosting trade ties between the Yellow River localities (including Shandong, Shanxi, and Qinghai) and HCM City to expand bilateral trade in farm produce, garment, footwear, and electronic products, among others.

Vice Chairman of the HCM City People’s Committee Nguyen Van Dung said his city attaches importance to the cooperation with Chinese localities.

China is currently one of the biggest trading partners of HCM City, and has invested over 303 million USD in 590 projects to rank 17th among the 122 countries and territories directly investing here, he said.

HCM City welcomes and wishes to enhance cooperation with Shandong and those on the banks of the Yellow River in the fields matching strength and demand of the two countries, such as construction, healthcare, education, culture, tourism, digital economy, and green economy, the official stated.

In addition, Dung went on, HCM City is working to become a smart city and build a regional logistics hub. During this process, apart from its own efforts, it hopes Shandong and the others will increase importing the goods HCM City is strong at, and encourage their businesses boasting science - technology and innovation advantages to invest in HCM City.

HCM City pledges to continue improving the local investment climate to provide the best possible conditions for foreign firms, including those from Shandong and those located besides the Yellow River, to make investment, the Vice Chairman remarked.

Wei Huaxiang, Chinese Consul General in HCM City, said Shandong has long maintained sound cooperation with southern localities of Vietnam, including HCM City.

Many renowned businesses of Shandong have invested in HCM City while the number of direct flights between the city and the Yellow River localities has almost doubled, showing their huge cooperation potential expected to be expanded and benefit both sides, he added./.

Vung Tau-Con Dao high-speed ferry launched

A high-speed ferry service connecting Vung Tau city (in the southern province of Ba Ria-Vung Tau), Ho Chi Minh City and Con Dao island (in Ba Ria-Vung Tau province) has been launched by Phu Quoc Express JSC. 

The three-storied high-speed boat, named Thang Long, which is 77.46m in length and 9.5m in wide, will better serve the travelling demand between Con Dao island and the mainland.
 
Vu Van Khuong, director general of Phu Quoc Express JSC, said as the biggest express boat in Vietnam, Thang Long can carry up to 1,017 passengers.

The ferry will set out on its first trip from Cau Da port in Vung Tau city on March 9 and return the next day, he continued, adding that all tickets have been sold out.

Con Dao is an island located 180km from Vung Tau city, and about 230km southeast of Ho Chi Minh City. It is well known for beaches with white sand, deep blue water and colorful coral reefs. French colonialists and the Americans turned the island into a prison to jail Vietnamese revolutionary soldiers in wartime. The island has attracted many local and foreign visitors in recent years.

Leather, footwear sector takes step in right direction to increase exports

2024 will continue to be a challenging year for the leather and footwear industry but there are still many prospects to increase exports this year, according to Vice President and General Secretary of the Vietnam Leather, Footwear and Handbag Association (Lefaso) Phan Thi Thanh Xuan.

She noted that Vietnam has signed 16 trade agreements with large markets, and has a contingent of skilled workers with more than 30 years of experience in production of footwear for export.

Xuan said that last year, Vietnam earned nearly 24 billion USD from leather and footwear exports, down 15% year-on-year. However, it was still a satisfactory result amidst common difficulties of enterprises over the past time.

Vietnamese footwear and handbags are currently available in 150 markets, of which the US accounts for 35% of the market share, the EU 26%, and China 9%.

In 2023, while the main export markets reported decreases, exports to China tended to increase, she stated, adding that this market is expected to create growth potential for the industry in 2024.

One of the big challenges for Vietnam's leather and footwear industry is requirements of import markets regarding sustainable production, Xuan said, adding that domestic companies for a long time have voluntarily developed sustainable production models to meet customer requirements. However, this has become a mandatory requirement from countries, as a series of new policies will be issued in the near future.

For example, the EU market has introduced a series of new policies on ecological products, or expanded responsibility for manufacturers, and supply chain traceability. The policies require all countries exporting to the EU market to comply with, and this is a big challenge for manufacturers, including those from Vietnam.

If enterprises want to participate in the supply chain, there is no other way than to comply with customer regulations, Xuan said, adding that to comply with these regulations, Vietnamese businesses must significantly upgrade to strengthen their internal capabilities. The upgrading starts with technology and management, and focuses on training to improve skills for workers.

The Lefaso will act as a bridge to help businesses access financial resources to have capital for production and trade, and also assist businesses in their technological innovation efforts and help them access support from international organisations to improve management and technical skills to meet the growing requirements of export markets, affirmed Xuan.

Hà Nội accelerates progress on 49 investment projects

The capital city is gearing up to scrutinise and assess 49 investment projects in 2024 to boost the efficiency of investment in various programmes to secure Hà Nội's socio-economic development goals and strategies.

This includes a mix of 30 public investment projects and 19 others funded outside of the state budget.

Through this comprehensive review process, entrenched issues and roadblocks will be unearthed, paving the way for swift solutions and recommendations to propel implementation forward.

Vice Chairman of the Hà Nội People's Committee Hà Minh Hải underscored the need for these assessments to focus on critical areas, aligning with the practical situation and strictly adhering to the legal regulations.

Leading the charge in organising these evaluations for the 49 new projects is the Hà Nội Department of Planning and Investment.

Among these, there are 15 transportation projects, nine agricultural and rural development initiatives, five cultural and social projects and one resettlement project.

In addition, there are 19 projects financed independently, including five commercial service and hotel projects, seven technical infrastructure developments, three education and training initiatives and four urban and housing projects.

The city's plan to improve public schools, upgrade healthcare facilities and preserve historical sites in 18 districts and towns over the 2022-25 period involves budget-funded projects.

To ensure their success, the city suggests inspecting one to two projects per supported area in each sector under consideration.

In 2023, the city's disbursement results showed significant positive signs, with the highest disbursement value ever recorded, the Hà Nội vice chairman said.

As of January 15, 2024, the total disbursement for the city soared to VNĐ50.69 trillion, surpassing expectations by achieving 88.5 per cent of the city's plan and outpacing the Prime Minister's early-year allocation by an impressive 108 per cent.

Despite strides made, the city People's Committee acknowledges persistent hurdles in various projects, notably in land clearance.

Some ODA-funded projects grapple with prolonged procedures due to loan extensions and contractor limitations.

Challenges in heritage projects persist, with a sluggish completion rate for transferred procedures.

Furthermore, low land revenue in certain areas strains district-level budget balancing.

In 2024, Prime Minister Phạm Minh Chính has assigned a substantial public investment plan for Hà Nội, totalling VNĐ81.033 trillion, a significant increase from the previous year.

In which, VNĐ36.1 trillion is expected to be sourced from land use revenue, signalling a 2.24-fold surge compared to the 2023 allocation.

It is forecast that 2024 will still pose many challenges and difficulties, particularly in disbursement rates, capital mobilisation, and project transfer issues.

The Hà Nội People's Committee urges proactive measures from relevant departments, localities, and units to ensure the efficient utilisation of allocated funds from the beginning of the year. 

Distributors join hands to prevent unsafe food from entering supermarkets

Six leading distribution systems - Saigon Co.op, Satra, AEON, Central Retail, MM Mega Market, and Bách Hóa Xanh - signed an agreement to deploy a cooperation programme on goods quality control in HCM City on March 8.

The agreement was signed at a conference on building a sustainable supply chain for Vietnamese goods and improving their quality, which was held by the HCM City Steering Committee for the campaign “Vietnamese people give priority using Vietnamese products.”

Under the agreement, following the direction of the city Department of Industry and Trade, Department of Agriculture and Rural Development and Department of Food Safety, the six distributors will set out specific quality parameters to detect and prevent unsafe products from entering their stores to protect consumer health.

In the initial stage, the programme will pilot three product groups, including fruits (chu mango, king orange, green-skinned grapefruit, white flesh dragon fruit, and cantaloupe), vegetables (lollo lettuce, bok choy, white cabbage, and regular tomatoes and cucumbers), and meat (pork and chicken).

Trần Thị Kim Yến, chairwoman of the Việt Nam Fatherland Front Committee of HCM City cum deputy head of the steering committee, emphasised that the cooperation in controlling product quality will be one of the first steps in building a truly sustainable supply chain of Vietnamese goods to serve Vietnamese consumers and promote the export of the products to demanding markets.

The programme will connect distribution systems towards cooperation in controlling product quality based on voluntary spirit, while jointly developing a code of conduct and acting together to say no to suppliers that violate quality standards, thereby creating a comprehensive deterrent to contribute to developing a healthy, safe and responsible supply chain, she expressed.

Speaking on the sidelines of the conference, retailers highly appreciated the initiative to connect and build a sustainable supply chain and improve the quality of Vietnamese goods.

Suppliers’ information as well as their products’ quality inspection results will be shared among participating distribution systems, they said, adding that products that violate quality commitments and do not ensure food safety will be removed from their stores.

The conference also witnessed a signing ceremony between Saigon Co.op and six companies and cooperatives that supply livestock and poultry meat, fruits and vegetables of about 500 tonnes to Saigon Co.op's distribution systems.

Accordingly, the two sides are committed to building a sustainable green supply chain to serve consumers, and ensure benefits for consumer health, production and business efficiency.

This cooperation also aimed to support domestically produced goods and unique products of HCM City to expand their presence in the domestic market as well as reach out to international markets through Saigon Co.op's strategic partner, NTUC FairPrice (Singapore).

Saigon Co.op’s exports of agricultural and fisheries products via NTUC FairPrice fetched VNĐ90 billion (over US$3.6 million) last year, up 32 per cent from 2022. 

Car rental service in high demand after Tết

Car rental services are in high demand despite climbing price due to the increasing demand for spring travel after the Lunar New Year (Tết).

According to a survey among car rental units in Hà Nội, car rental services with drivers in Hà Nội have risen from the first days of March.

Phạm Minh, an owner of a car rental agency in Hà Nội, told the Vietnam News Agency that all of his cars had been running on a full schedule, without day-offs after Tết.

"The demand for renting cars from people going out, going to pagodas, and travelling in Spring has increased, especially on weekends. Although the price has surged by VNĐ300,000 (US$12.5) one way compared to normal days, the number of passengers booking trips is still very high," said Minh.

Not only are small five-seat and seven-seat cars popular, but 16-seat, 30-seat and 45-seat vehicles to serve corporate and family groups are also chosen by many people.

Currently in Hà Nội, car rental prices for four-seat cars such as VinFast Fadil, Hyundai i10, Toyota Vios, Mazda3 on weekdays range from VNĐ600,000 - 800,000 per day, and can increase to VNĐ900,000 - 1 million per day on weekends.

Seven-seat cars such as Mitsubishi Xpander, XL7, Toyota Innova, Fortuner cost more, from VNĐ1.2-1.5 million. For cars with 16 seats or more, the lowest price is about VNĐ2 million per day for self-driving, or the price will be negotiable if rented with drivers.

As for 45-seat vehicles, many rental businesses are fully booked until the end of the first lunar month. Therefore, if there is a place that still has these vehicles for rent, the price is doubled, up to VNĐ7 - 8 million per day.

Previously, renting self-driving cars was a trend to be comfortable and avoid depending on the driver, but now renting cars with drivers is chosen by most families and groups.

“Previously, we would choose to rent self-driving cars for comfort and to reduce costs. But nowadays, when alcohol concentration control is very strict, we switch to rent cars with drivers,” said Nguyễn Anh Tú, a customer in Hà Nội. 

Việt Nam automobile market remains stagnant in early 2024

 Domestic automobile market is currently facing a situation of high supply and low demand. This has resulted in a decline in sales and an excess of inventory for carmakers.

In response, these car manufacturers have resorted to offering big discounts and promotions to attract customers and stimulate demand.

The decline in sales can be attributed to several factors, including the expiration of a government incentive programme that offered a 50 per cent registration fee reduction, as well as the recent Tết holiday. As a result, car manufacturers have been actively reducing prices since the Lunar New Year to entice buyers.

The General Statistics Office's report indicates a significant drop in the output of domestically produced and assembled cars in February 2024 compared to previous months and the same period in the previous year. Similarly, the number of imported cars has also seen a decline.

In February 2024, a total of 21,900 new cars, including domestically produced and imported cars, were added to the market. This figure represents a decrease of 23.3 per cent compared to January 2024 and a decrease of 38.8 per cent compared to February 2023.

The output of domestically produced and assembled cars in February 2024 was estimated to be 15,900 units, which was a decline of 26.4 per cent compared to January 2024. It was also a decrease of 25.3 per cent compared to February 2023, making it the month with the lowest output in recent years.

Cumulatively, in the first two months of 2024, the output of domestically produced and assembled cars was estimated to reach 37,500 units, down 9.8 per cent compared to the same period in 2023.

The number of imported cars in February 2024 was estimated to be 6,000 units, with a value of US$117 million. This represents a decrease of 13.7 per cent in volume and 19.3 per cent in value compared to January 2024.

The total number of imported cars in the first two months of 2024 was estimated to reach 12,955 units, with a value of $262 million. This represents a significant decrease of 51.6 per cent in volume and 54.3 per cent in value compared to the same period last year. This is the lowest number in the past few years.

In total, in the first two months of 2024, there were 50,455 vehicles, including domestically produced, assembled, and imported cars, supplied to the market. However, car sales in the entire market during the same period were estimated to be more than 40,000 vehicles of all types. This indicates that supply exceeded demand by nearly 10,000 cars.

As a result, it was estimated that the car inventory by the end of February 2024 was be around 70,000 vehicles of all types, primarily consisting of cars manufactured in 2023.

To address this situation, businesses have been implementing large-scale promotions and discounts across various car segments.

In the A-class SUV segment, models such as Toyota Raize, Hyundai Venue and Kia Sonnet have seen price reductions of VNĐ20-30 million. In the B-class SUV segment, Hyundai Thanh Cong has announced a price reduction for the Creta model, while Mitsubishi Vietnam has reduced the price of the Xforce model.

Toyota dealers are offering discounts on the Yaris Cross model, while Honda Vietnam is supporting 50 per cent of the registration fee for the HR-V model and providing accessory packages as gifts to buyers.

In the B-class sedan segment, models such as Hyundai Accent, Toyota Vios, Honda City, Mitsubishi Attrage and Suzuki Ciaz are being offered promotional discounts ranging from VNĐ40-86 million. Similar price reductions can be observed in other segments such as C-class SUV, D-class SUV, C-class sedan, and D-class.

Given the current state of the local auto market, it is projected that many car models will continue to experience deep discounts in the coming months to stimulate demand and reduce inventory levels. This is indicative of the challenges faced by the Việt Nam auto industry, which is currently grappling with a recession.

Key southern economic region attractive to foreign investors

The key southern economic region remains an attractive destination for foreign investors with a series of foreign-invested projects licensed in the past two months of this year.

Among localities in the region, Đồng Nai Province recorded the most impressive results in foreign investment attraction.

The province lured US$439 million worth of foreign investment into its industrial zones in the two months, fulfilling nearly 63 per cent of the target set for the year, head of Đồng Nai Industrial Zones Authority (Diza) Nguyễn Trí Phương told baodautu.vn.

Phương said it was likely that by the end of March, Diza would complete the investment attraction goal for 2024.

He added that his locality would focus on attracting large-scale projects, using advanced technology and skilled workers instead of projects that use a lot of unskilled workers and outdated technology affecting the environment, to ensure compliance with the province's investment attraction orientation.

HCM City, Bình Dương and Bà Rịa-Vũng Tàu were also among the top provinces and cities in the region in terms of foreign investment attraction in the reviewed period.

HCM City ranked eighth among the 10 leading localities with $195 million worth of foreign investment. In terms of the number of new projects, however, the city ranked first with 144 projects, accounting for 35.6 per cent of the total.

Besides these mentioned localities, Bình Phước was also emerging as a new investment destination for foreign businesses. It lured over $8.64 million in foreign investment in the two months. The latest addition brought the foreign investment registered in the locality total up to nearly $4.3 billion.

According to Bình Phước People’s Committee, the province will host a business forum to showcase its potential and investment initiatives, especially in high-tech agriculture, on March 12.

The upcoming event will be the largest international investment connection forum in the agricultural sector ever organised in Bình Phước. It will bring business executives and investors in high-tech agriculture together with local authorities and help promote sustainable agricultural development.

Trần Tuệ Hiền, chairman of the provincial People's Committee, said the forum would be an opportunity for Bình Phước to promote its strengths and incentive policies for both domestic and international investors.

"The forum also serves as a chance for Bình Phước to invite reputable domestic and foreign businesses and investors with financial strength and technology to invest in high-tech agriculture and share information with the business community," she said.

Baodautu.vn cited Gabor Fluit, chairman of EuroCham, as saying that European businesses attending the event specialised in sectors including agriculture, high technology, construction, tourism, finance and banking, and renewable energy.

This showed that European businesses were directing investment capital into high-tech industries that many southern localities wanted to attract investment in," he said.

​The key southern economic region comprises of HCM City, Bình Phước, Tây Ninh, Bình Dương, Đồng Nai, Bà Rịa-Vũng Tàu, Long An and Tiền Giang provinces.

Motorbike sales continue slump after Tết holiday

Domestic motorbike market after the Tết holiday has seen a decrease in sales. As a result, motorbike dealers are offering significant discounts on popular models to attract buyers and stimulate sales.

The low sales are attributed to demand for motorbikes being concentrated before Tết; there is usually a decline in sales after the holiday, according to industry insiders.

In addition, the simultaneous discounts offered by motorbike manufacturers aim to overcome the difficult economic situation, as people are cutting down on expenses. Fluctuating gasoline prices are also mentioned as a factor contributing to the low consumption of motorcycles. To address this, dealers have to reduce prices to incentivise consumers and boost sales.

For example, Trung Đức, the owner of a Yamaha dealer, mentioned that the market is typically gloomy after Tết, with very few customers visiting the dealership. In order to attract customers and increase sales, dealers are offering discounts, sometimes even lower than the manufacturer's suggested prices.

The discounted prices mentioned include a special version of the Yamaha Grande priced at VNĐ46-47 million, which is VNĐ2 million lower than the proposed price. The Yamaha Janus model is priced between VNĐ30-33 million, about VNĐ500,000 lower than the previous month, depending on the dealer.

Similarly, Honda dealers are also offering competitive prices for their motorbikes.

According to the salesperson at a Honda dealer in Nguyễn Khánh Toàn Street, Hà Nội, the standard Honda Vision model is priced around VNĐ30 million, which is more than VNĐ1 million below the proposed price. The high-end and sporty versions are priced between VNĐ33-37 million, depending on the model.

The Honda Air Blade is being sold at a price lower than the company's proposal, with a discount of VNĐ1-2 million per unit. The standard version of the Honda SH scooter is priced at over VNĐ70 million.

Chairman of the Association of Vietnamese Motorcycle Manufacturers (VAMM) Koji Sugita explains that the difficult economy is leading people to tighten their spending. This economic situation, combined with constantly fluctuating gasoline prices, has resulted in low motorcycle consumption. In response to these factors, motorcycle manufacturers are offering discounts on their products to attract customers and stimulate sales.

According to the Vietnam Motorcycle Manufacturers Association (VAMM), motorbike sales in the fourth quarter of 2023 increased compared to the previous quarter, but were down by 18.03 per cent compared to the same period in 2022.

The total annual sales of 2023 were 2,516,212 vehicles, a decrease of 16.21 per cent compared to 2022 and the lowest in the past six years, even lower than the years affected by the COVID-19 pandemic in 2019 and 2020. 

Construction of $163m Sông Công II Industrial Park phase 2 project approved

Deputy Prime Minister Lê Minh Khái on March 7 signed a decision approving the investment policy for the phase 2 construction of infrastructure in Sông Công II Industrial Park in Thái Nguyên Province.

The investor is Viglacera Thái Nguyên Joint Stock Company.

Located in Bá Xuyên and Tân Quang communes, Sông Công City, the project is divided into two zones, of which zone 1 spans 152.52ha and the zone 2 has an area of 120.72ha.

Having a total investment capital of nearly VNĐ4 trillion (US$163.3 million), with nearly VNĐ598 billion being contributed from the State budget, the project is required to be completed within 36 months from the date of land handover.

The Ministry of Planning and Investment is tasked with appraising the project and overseeing State management concerning industrial parks in accordance with State investment regulations, while other ministries and agencies are responsible for evaluating the project within their jurisdiction.

The Thái Nguyên People's Committee is responsible for verifying the project’s information and directing the provincial Management Board of Industrial Parks to facilitate and supervise its implementation, including land allocation and compensation and resettlement support.

Viglacera Thái Nguyên is required to obtain approval from the relevant authority to change the land use purpose for the project in accordance with land laws. They must also comply with regulations regarding protection and development of rice land and have an approved replacement afforestation plan from a competent state agency. 

According to Thái Nguyên Province's development plan during the 2021-23 period, with a vision to 2050, the province aims to establish a total of 11 industrial parks. Presently, five are operational, with two having approved the general planning and zoning plans, actively attracting and selecting potential investors. Additionally, four industrial parks have been tasked with general planning. 

Conference promotes business connectivity between Việt Nam, India

The India – Vietnam Business Conference 2024 was held in HCM 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 Trần Ngọc Liêm, India is one of Việt Nam’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 Việt Nam’s export rising 6.8% year-on-year to US$8.5 billion and import falling 17.2% to $5.86 billion.

Statistics from the VCCI showed that most of Việt Nam’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 Việt Nam regarding steel, chemicals, pharmaceuticals, garment and textiles and animal food.

India has registered some $1 billion in more than 400 projects in Việt Nam, 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 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 Việt Nam 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. 

Steel sector set to recover later this year

According to a Vietnam Steel Association (VSA) report, released late January, the country's steel production is expected to grow by 10 per cent this year and 8 per cent in 2025 as the domestic demand for steel recovers amid expectations of an increase in demand globally.

This potential recovery is also largely thanks to the government's various economic stimulus programmes for the real estate sector, the interest rate subsidy, and the acceleration of public investment.

In addition, steel consumption this year might exceed 21 million tonnes, up over 6 per cent on-year, of which the export of finished and semifinished steel items could see a 12 per cent jump, reaching about 13 million tonnes.

Nguyen Viet Thang, CEO of steel giant Hoa Phat Group, believes the steel sector will jumpstart production in 2024 after falling last year, before continuing its momentum into next year.

"The real estate market is expected to rebound in the second half of the year, which will be instrumental to the recovery of the steel industry. So far this year, Hoa Phat has increased its production output by more than 10 per cent," said Thang.

VDSC has suggested that the expected growth in the steel industry is dependent on a potential recovery in domestic demand for construction steel
Viet Dragon Securities JSC (VDSC) estimates that Hoa Phat could post a 22.5 per cent jump in revenue to approximately $6 billion for the year, while its post-tax profit could jump by over 90 per cent to $454 million.

Similarly, VDSC forecasts Hoa Sen Group, another top steelmaker, to see a 16 per cent hike in revenue to reach $1.53 billion with post-tax profits of around $35 million for the fiscal year, exceeding the expectations of the company's own business plans.

Galvanised steel sheet manufacturer Nam Kim Steel JSC should see a return of around $1.2 billion in revenue and $11.3 million in post-tax profit, up 14 per cent and more than 85 per cent on-year respectively, according to VDSC.

VDSC has suggested that the expected growth in the steel industry is dependent on a potential recovery in domestic demand for construction steel, with the possibility that the subsequent high prices would contribute to the improvement in the accrued profit margins of firms in the industry.

The securities firm agrees with the VSA that the steel industry is set for double-digit growth in output, as after a period of restructuring and legal moves, a wide range of real estate projects are set to resume construction, aided by an accelerated implementation of public ventures.

Nguyen Duc Hoang, senior analyst at Bao Viet Securities JSC, suggests the Chinese government is taking determined measures to aid a rebound of its domestic real estate market, such as lowering interest rates and reducing the compulsory reserve ratio for banks.

“We expect that China’s anticipated property market rebound in the second half of this year will help boost steel consumption. This will reduce oversupply and soften the export pressure in the steel industry. As such, we expect improvement in steel consumption and prices in Southeast Asia, which should boost the profit margins of Vietnamese steel firms for the year,” said Hoang.

Progress underway for exporting wind power from Vietnam to Singapore

The Singaporean government continues to facilitate the project to export 1.2GW of offshore wind power from Vietnam to Singapore.
 
The commitment was made by the Singaporean government delegation during a visit to PetroVietnam Technical Services Corporation's (PTSC) facilities in the southern province of Ba Ria-Vung Tau on March 4.

Representatives from the Singaporean Embassy in Hanoi, the Singapore Consulate in Ho Chi Minh City, the Ministry of Trade and Industry, the Energy Market Authority, and PTSC's partner Sembcorp Utilities all joined the delegation.

PTSC and Sembcorp Utilities were awarded the Survey Permit and Conditional Approval to import clean electricity from Vietnam to Singapore by the authorities of the two countries at the end of 2023. The two sides are pushing implementation of additional work to successfully implement the project.

During the working visit, the Singapore government authorities witnessed modern synchronous infrastructure, facilities, and equipment in the Asia-Pacific region, invested by PTSC to serve offshore renewable energy projects around the world, including this transnational project.

This has improved Singapore authorities' confidence in the Vietnam offshore wind project jointly developed by Sembcorp Utilities and PTSC, as part of the objective to import 4GW of renewable electricity to Singapore by 2035.

PTSC and its partner Sembcorp Utilities also presented the project's implementation strategy, as well as proposed mechanisms. With the goal of commercial power generation by 2033, PTSC and its partners have laid out a specific roadmap that includes a survey, an investment plan, and the development of offshore wind farms in Vietnam to produce and export approximately 1.2GW of clean electricity from Vietnam to Singapore via high-voltage submarine cable.

Through the meeting, the authorities of the Singapore affirmed that they would continue to support PTSC and its partners during the implementation of the project, which will help Singapore soon achieve its goal of bringing net emissions to zero by 2050.

The progress made on this project is also a positive development arising from the MoU on Energy Cooperation between Vietnam and Singapore, signed in October 2022, which reaffirmed both countries' commitment to support and facilitate clean energy transition efforts and regional decarbonisation, including greater cross-border electricity trading.

Hundreds participate in ETS and carbon-market training

Hundreds of representatives from businesses and associations participated in a two-day training course starting on February 29 in Hanoi on the Emission Trading System (ETS) and carbon markets with the help of simulation tools.
 
The Southeast Asia Energy Transition Partnership (ETP) organised the training course to improve the awareness of state management agencies and the business community.

The course was a part of an ETS piloting and simulation scheme in Vietnam supporting the Department of Climate Change and the Ministry of Natural Resources and Environment. The aim is to promote the development of the carbon market in Vietnam before setting up a domestic carbon market and a carbon exchange, which will be piloted in 2025 and operational in 2028. Participants included ministries and agencies related to the establishment and management of carbon exchange platforms and carbon markets in Vietnam, as well as research institutes, universities, financial institutions, media representatives, and large emitters that will be covered under Vietnam's ETS in the future.

During the course, experts clarified a roadmap for the development of the national carbon market, the working principles and key design elements of the ETS, market oversight, and what enterprises should prepare to participate in the carbon markets. Participants were granted certificates upon completion of the course.

In addition, domestic and international experts introduced 'carbonsim' and guided participants to run a demo simulation using the CarbonSim tool.

“If we want to pilot ETS in 2025 as the government plans, we need more training for relevant stakeholders so they can develop and implement emissions trading as a cost-effective policy to reduce greenhouse gas (GHG) emissions and enable the establishment of trading systems,” said Josh Margolis, an environmental markets expert and carbonsim administrator.

“There are various forms of training and capacity building that can provide comprehensive, in-depth knowledge of the design and implementation of the ETS, such as the carbon market simulations which are useful tools to assist policymakers and businesses to understand the system's mechanics,” Margolis said.

"The lectures are designed and presented by international experts in climate change mitigation and carbon pricing. This training initiative takes place at a critical period for Vietnam as it is committed to reducing GHG emissions in accordance with its obligations in the Paris Agreement," said Dang Hong Hanh, co-founder of Energy and Environment Consultancy.

Fritzie Vergel, a representative of the ETP, said this was the first ETS and carbon market training course ever held in Vietnam with the full participation of stakeholders from the public and private sectors.

"Building an effective emissions quota trading system in Vietnam will play a key role in achieving emissions' reduction targets. By placing a cap on total emissions and allowing businesses to trade emissions quotas, the ETS creates economic incentives for businesses to find solutions to reduce GHG emissions. In addition, revenue from quota auctions can be reinvested in climate-related projects, further supporting the country's efforts to reduce emissions," said Vergel.

9999 gold rings skyrocket, surpassing VND71 million per tael

The price of domestic gold rings experienced a significant surge at the beginning of the week on March 11.
 
Some businesses raised their prices by up to VND2.45 million per tael, causing the price of gold rings to soar beyond VND71 million per tael. Meanwhile, SJC gold still hovered around the peak price of VND82 million per tael.

Around 9:30 a.m., Bao Tin Minh Chau Company increased the price of 9999 gold rings by an additional VND1.25 million for buying and VND2.45 million for selling compared to last weekend, sending the buying price to VND69.98 million per tael and the selling price to VND71.28 million per tael.

This enterprise currently leads the market in trading 9999 gold rings at the highest prices. Its rates surpass those of other businesses by up to VND1.3 million per tael and exceed the global gold price by VND6.1 million per tael, up from the gap of VND4.6 million last weekend. This company has now established the highest price for 9999 gold rings, up to now.

SJC Company also raised the price of 9999 gold rings by an additional VND400,000 for both buying and selling rates compared to last weekend, reaching VND68.8 million per tael for purchases and VND70.05 million per tael for sales.

Although the price of SJC gold remained relatively stable, it continued to hover around VND82 million per tael. Specifically, SJC Company listed SJC gold at VND80 million per tael for buying and VND82 million per tael for selling, an increase of VND500,000 in the buying rate. PNJ Company bought gold at VND80 million per tael and sold it at VND82 million per tael, unchanged from the previous weekend.

In the global gold market, the spot gold price on the Kitco exchange stood at US$1,278.2 an ounce on the morning of March 11 (Vietnam time), marking a decrease of approximately $1 compared to the previous weekend's closing price. This translates to roughly VND65.2 million per tael after conversion, which is lower than the price of SJC gold by about VND16.8 million per tael and lower than that of 9999 gold rings by about VND4.9 - 6.1 million per tael.

Throughout the past week, the global gold price has sustained its upward trajectory, consistently reaching new peaks. This surge has been buoyed by several key factors, including negative economic indicators from the US, a rise in US unemployment rates, and remarks from Federal Reserve Chairman Jerome Powell during his testimony before the US Congress.

Investors are increasingly hopeful that the Fed might initiate monetary policy changes sooner than expected. Analysts suggest that gold has witnessed significant gains over the week and may continue its upward trend as central banks and investors alike turn to gold as a safe haven asset.

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