Vietnam's aquatic product exports saw a strong start to the year, recording a 60.8% annual increase to reach 730 million USD in January, reported the Ministry of Agriculture and Rural Development.

Tra fish emerged as the star performer, showcasing a remarkable 97% year-on-year growth, with export revenue hitting 165 million USD.

Communication Director of the Vietnam Association of Seafood Exporters and Producers (VASEP) Le Hang anticipated a moderate 10% rise in tra fish exports this year, potentially reaching 2 billion USD, with China and the US being major importers.

To achieve this projected growth, VASEP Secretary General Truong Dinh Hoe emphasised the importance of diversification. He encouraged the Vietnamese firms to explore new markets and develop innovative consumer products beyond just frozen fillets.

While Vietnam faces a slight decline in market share within some major markets, smaller destinations like Mexico, Canada, Brazil, and the UK offer promising growth opportunities, he added. 

According to the International Trade Centre (ITC), Vietnam remains the leading supplier of whitefish to Brazil, creating a solid foundation to expand the export of more value-added products in this market.

VASEP also identified Germany as another lucrative market for Vietnamese tra fish. Last year, Germany imported 38 million USD worth of Vietnamese tra fish, representing a 31% rise from the previous year. Notably, frozen fillets dominated these imports, accounting for nearly 37 million USD and up 34% year on year.

Vietnam is now the sixth largest supplier of whitefish to Germany, behind China, Russia, Norway, the US and Poland, indicating room for further expansion if the Vietnamese exporters could deliver clean products that cater to German preferences at competitive prices.

Fruit, vegetable exports see green shoots, targeting 7 billion USD

Vietnam’s fruit and vegetable exports in the first two months of this year surged 38% to about 749.7 million USD, which is expected to peak at nearly 7 billion USD this year.

The sector is hoped to remain a bright spot in 2024 as many businesses reported that order books are full until the end of the first quarter, according to Lao dong (Labour) Newspaper.

Durian alone would will bring in 3.5 billion USD after the Vietnamese Ministry of Agriculture and Rural Development and the General Administration of Customs of China signed a protocol on phytosanitary requirements for the Vietnamese fruit exported to the neighbouring country last year, said Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association (Vinafruit).

Although shipments to Europe and the US are forecast to be hindered by the Red Sea tension in the time ahead, exports to China will be boosted, driven by durian, dragon fruit, jackfruit, banana, and mango, he added.

Deputy Minister of Agriculture and Rural Development Phung Duc Tien said four more Vietnamese products will be shipped to China via the official channel in the time ahead, comprising medicinal herb, coconut, frozen fruit, and watermelon, thus contributing greatly to Vietnam’s agricultural export revenue.

According to statistics from the General Department of Customs, Vietnam’s fruit and vegetable export turnover hit an estimated 5.6 billion USD last year, up 66% year-on-year. Surpassing dragon fruit, durian recorded the highest export value.

The largest importers of Vietnamese fruits and vegetables included China, the US, the Republic of Korea, Japan, Thailand, the Netherlands, Taiwan (China), Australia, the United Arab Emirates, and Russia.

China remained the biggest buyer, with the import turnover reaching 3.7 billion USD in the year, up nearly 250% in value and 65% in market share compared to 2022.

Bình Thuận to focus on developing renewable energy

The central coastal province of Bình Thuận must take advantage of its huge potential in sun and wind to develop renewable energy combined with the pumped-storage hydropower model to create a green, stable and balanced source for the power system.

Deputy Prime Minister Trần Hồng Hà made the remark yesterday at the Announcement Ceremony of Bình Thuận Province Master Plan for the period 2021 - 2030, with a vision to 2050.

This is a breakthrough advantage for the province to attract investors in the global green transformation trend, Hà said.

According to the Deputy PM, Bình Thuận which is located on the North - South economic corridor, connecting the South and Central Coastal sub-region, Southeast and Central Highlands regions, has outstanding advantages in geographical location and geo-strategic position in the era of integration and opening up, in seas and oceans, and in the global green transition trend.

The scale of its economy increased more than 25 times compared to 1992, and gross regional domestic product (GRDP) in 2023 increases by 8.1 per cent over 2022, ranking 14th among 63 provinces and cities nationwide.

The province's socio-economic infrastructure system continues to be invested and built in the direction of synchronisation, connection and sharing.

Its GRDP per capita is estimated at VNĐ87 million (US$3,565) per year, tending to increase rapidly in recent years.

The Politburo’s Resolution 26-NQ/TW set the goal of making coastal provinces a dynamic, fast and sustainable development region focusing on the marine economy with a synchronous and modern socio-economic infrastructure that is highly resilient to natural disasters and effectively adapts to climate change.

With unique conditions and advantages, Bình Thuận is identified as one of the industrial centres for clean energy, marine and eco-tourism, and one of the destinations of the Central Heritage Road, as well as to become a province with sea-based dynamic, rapid and sustainable development, the Deputy PM said.

By 2030, the province aims to achieve a GRDP per capita of about $7,800 - 8,000 and reach an urbanisation rate of over 50.8 per cent with smart satellite cities.

Its economy will be based on main pillars of industry; tourism services, training and research, science and technology application and innovation; and high-tech agriculture.

The province will complete investment in the infrastructure system framework of airports, seaports, freeways and high-speed railway.

However, the Deputy PM said that this master plan only guides the development space in the connection between provinces in the South-central Coast, the Southeast and Central Highlands regions.

Hà said that the Law on Urban and Rural Planning is being developed and completed to create a legal corridor and methodology for urban and rural planning, but "right now, Bình Thuận should proactively choose reputable consulting organisations to concretise the orientations and goals in the province's master plan into detailed plans and functional sub-divisions with roadmaps and a hundred-year vision."

"Bình Thuận needs to learn lessons and overcome the current problems of urban areas such as surface water and underground water pollution, traffic congestion and population density management," he said.

He also requested the province to pay attention to completing mechanisms and policies for synchronous infrastructure development with smart, multi-target urban areas while preserving and promoting cultural heritages that have become a valuable tourism resource.

Regarding tourism, the province should continue to innovate in designing and building tourism products based on promoting the potential of the sea and islands associated with exploration, sports, health care and entertainment services.

Hà highly appreciated the province’s viewpoint of ‘not placing the interests of minerals above the interests of the environment and culture and nature preservation’.

The Deputy PM noted that the province continues to restructure and develop agriculture towards deep production, and processing areas associated with irrigation infrastructure.

Hà affirmed that the Government and Prime Minister always accompany Bình Thuận Province in implementing the planning, but the province itself proactively prepares on planning, mechanisms and special policies, and economic, social and energy infrastructure. 

Two-month coffee exports likely to exceed US$1 billion

The recent continuous rising coffee prices have helped local coffee exports to achieve the target of US$1 billion in the first two months of the year, representing an increase of 50% against the same period from last year, according to figures given by the General Department of Vietnam Customs.    

At the end of the trading session on February 28, coffee prices had increased by VND1,500 to nearly VND84,000 per kilo, the highest figure recorded so far. The increase in prices have therefore helped several export businesses secure orders until August.

Statistics indicate that by mid-February, the country exported nearly 295,000 tonnes worth US$911 million, up 67% against the same period from last year.

On average, each tonne of coffee is traded at about US$3,100, posting a 43% year-on-year rise.

According to business representatives, exports have gained momentum following the Lunar New Year, thereby helping the product to earn more than US$1 billion during the two-month period.

Europe makes up the largest importer of Vietnamese coffee, duly accounting for 29% of total export turnover, followed by the United States, China, Russia, and Indonesia.

According to details given by the Vietnam Coffee and Cocoa Association (VICOFA), the shortage of supply source in the market has helped domestic exporters to enjoy a range of advantages.

Furthermore, the EU's inclusion of coffee in the category of having to meet the EU Deforestation-free Regulation (EUDR) as of mid-2023 will has also affected the price of the agricultural product.

Vu Duc Con, deputy director of the Dak Lak Department of Agriculture and Rural Development, assessed that coffee exports will continue to enjoy a number of benefits moving forward due to rising global demand.

VICOFA forecasts that coffee exports could reach between US$4.5 billion and US$5 billion this year. Last year, the nation exported more than 1.62 million tonnes of coffee, worth over US$4.2 billion. ​

Nearly 8,600 new firms established in February

Approximately 8,600 enterprises were set up in February, marking a monthly decrease of 36.5% and an annual decline of 2.8%, according to the General Statistics Office (GSO).

Specifically, over 5,300 companies returned to operation across the whole country during the reviewed period, while 5,146 others registered for a temporary suspension of operations.

Meanwhile, 2,153 enterprises ceased operations while waiting to complete dissolution procedures and 1,506 businesses were dissolved.

In total, there were 41,100 new enterprises either established or returning to operation during the first two months of this year, up 8.5% compared to the same period from last year. On average, there were more than 20,500 new businesses being founded or returning to operations each month.

As many as 63,000 enterprises withdrew from the market during the reviewed period, an increase of 22.5% on year. On average, nearly 31,500 businesses stopped working each month.

Breakthroughs needed in implementing co-operation agreements in CLV Development Triangle

The senior officials’ meeting (SOM) on the Cambodia-Laos-Vietnam (CLV) Development Triangle Area was held on February 29 in Laos’s southern province of Attapeu, featuring the participation of numerous representatives of leaders of relevant ministries and sectors of the three countries, administrations, departments, and branches of 13 provinces in the Development Triangle Area.

The event is being held within the framework of the 13th Joint Coordination Committee Conference of the CLV Development Triangle Area and is taking place in Attapeu province from February 26 to March 1.

At the conference, delegates listened to updates on the meeting results of the four subcommittees for economics, security-foreign affairs, social affairs, the environment, localities, and activities related to the Joint Coordination Committee of the CLV Development Triangle Area.

They were also briefed on the results of the 13th Trade, Investment and Tourism Promotion Conference, as well as the ninth CLV Youth Forum.

The meeting also reviewed and approved the proposed programme and agenda of the 13th conference of the Joint Coordination Committee of the CLV Development Triangle Area and the SOM Report and proposals, along with discussing the draft report of this conference.

​Speaking at the conference, Deputy Minister Tran Quoc Phuong highlighted the results of co-operation recorded in recent years of the CLV Development Triangle Area and affirmed that over the past 25 years, the three countries have co-ordinated to launch a wide range of common schemes and activities as a contribution to building local economies within the region.

As a result, poverty reduction has achieved plenty of positive results, people's material and spiritual lives are constantly improving, while national defence and security have een maintained, thereby contributing to building a border of peace, stability, friendship, and mutual development of the three countries.

However, besides positive achievements, the implementation of co-operation in the region still faces many limitations and has failed to meet expectations.

Economic growth has not achieved a major breakthrough to boost local socio-economic development or shorten the development gap compared to the national average.

The development and implementation of specific policies, programmes, and co-operation plans in various fields also remains slow.

This requires the three countries to make combined efforts, strengthen ties, and devise more comprehensive solutions to create breakthroughs in implementing co-operation agreements in the CLV Development Triangle Area.

​The results of the meeting will be reported to the 13th Conference of the Joint Coordination Committee of the CLV Development Triangle Area which is set to take place on March 1.

Exporters must actively engage and adapt to EU's CBAM

To stay competitive in the European Union (EU) market, Vietnamese producers must adapt to the Carbon Border Adjustment Mechanism (CBAM), a carbon tariff on carbon-intensive products imported to the EU, which has been set to take effect in 2026, said industry experts and policymakers. 

According to a report by the General Department of Vietnam Customs, in January 2024, Việt Nam exported over 1.16 million tonnes of steel, worth US$822.65 million, an increase of 7.1 per cent in quantity and 7.4 per cent in value compared to the previous month. Vietnamese steel was exported to more than 30 countries and territories, including Canada, South Korea, Japan, Singapore, Australia and Sri Lanka.

Việt Nam exported 180,221 tonnes of fertiliser, equivalent to $72.9 million, during the same period, a 10.6 per cent increase in quantity and a 7.7 per cent decrease in value compared to the previous month. However, the overall year-on-year figures showed a 41.7 per cent increase in quantity, a 14 per cent increase in export turnover, but a 14.5 per cent decrease in value.

The Southeast Asian economy reported a total export turnover of $33.57 billion, a 6.7 per cent increase from the previous month and a significant 42 per cent increase compared to last year.

Exporters have long voiced their concerns over the CBAM's potential effects on Vietnamese exports, saying CBAM's implementation will likely increase the prices of exported goods, reducing Vietnamese exports' competitiveness and affecting demand in the EU market.

However, the impact is likely minor in a broader context as the covered industries are not Việt Nam's major exports. Nevertheless, the carbon tax regulations will still reduce export values, increasing pressure on businesses, according to the Asian Development Bank (ADB).

Specifically, the steel sector may experience a 4 per cent decrease in export value, leading to a 0.8 per cent reduction in demand and adverse effects on market competitiveness. Aluminium export value may decrease by over 4 per cent, resulting in a 0.4 per cent reduction in production. The impacts on the cement and fertiliser are negligible.

However, as the new regulations directly impact export activities Việt Nam must start proactively engaging with the CBAM framework to avoid being at a disadvantage in the export competition.

Industry experts have called for policymakers and businesses to establish carbon pricing mechanisms and a carbon credit market in Việt Nam, which will allow exporters to work with EU buyers and serve as a platform for trade negotiations related to CBAM.

At the same time, dialogues should be held with EU regulatory bodies to provide additional information and incentives to exporters in support of transitioning to green production. To minimise the adverse effects on production and exports, businesses must closely monitor CBAM developments and proactively prepare response plans.

They stressed the importance of thoroughly studying greenhouse gas emission reporting requirements, developing internal processes and implementing calculation systems to comply with CBAM reporting. In the long run, the global shift to a greener economy, the development of green energy and sustainable production will bring opportunities for Vietnamese businesses to enhance product quality, meet international standards and achieve sustainable development. 

Bình Phước seeks ways to attract investors

Thanks to the efforts of Bình Phước Province to improve its investment environment, the private sector is growing in number and quality and increasing its share of the economy.

By the end of last year, Bình Phước has nearly 11,700 businesses, exceeding the planned target of 2,700 businesses, with a registered capital of about VNĐ 200 trillion (US$8.78 billion).

To attract investors, it has prioritised administrative reform, improving transport infrastructure and developing human resources.

Every year it organises a conference to evaluate administrative reform indicators such as the Provincial Competitiveness Index (PCI) and Public Administration Performance Index (PAPI) to improve its business environment.

It organises meetings and keeps in contact with businesses to help them overcome difficulties.

Infrastructure works related to transport, irrigation, power supply, industrial parks, shopping, and social housing are included in its investment promotion programmes.

The province also offers investors access to capital.

Trần Tuệ Hiền, Chairman of the province People's Committee, said the locality would focus on developing infrastructure to create a favourable business environment, especially transportation.

The HCM - Chơn Thành (Bình Phước Province) Expressway and the North - South Expressway section between Gia Nghĩa (Đắk Nông Province) and Chơn Thành (Bình Phước) are under construction and would provide an alternative to National Highway No.14 when opened.

When the projects completed, they will reduce the travel time between Đắk Nông, Bình Phước and HCM City and provide easy access to Long Thành international Airport in Đồng Nai Province and Cái Mép – Thị Vải Port in Bà Rịa–Vũng Tàu Province.

Bình Phước has prioritised training the workforce to meet investors' requirements.

The province also encourages and has policies to support conversion of the workforce from agriculture to other occupations in line with its economic restructuring.

The locality will also continue to arrange the apparatus and staffing in a streamlined and efficient direction, coupled with strong reform of administrative procedures, shortening settlement time, and making transparent procedures related to investment, production and business.

The chairman of the Bình Phước People's Committee assured that the province would promptly detect and crack down on violations of the law and create a healthy and fair business and investment environment.

Auto market expected to make a breakthrough in H2

The Vietnamese automobile market has witnessed a deep decline the first month of this year, however, businesses and experts forecast that the market might make a breakthrough in the second half of the year.

The total car sales of member units only reached 19,243 vehicles in January, down 50 per cent compared to the previous month, according to the Việt Nam Automobile Manufacturers Association (VAMA).

The passenger car and commercial vehicle segments both saw a significant decline, 54 per cent and 31.5 per cent, respectively.

Even the specialised vehicle segment could not avoid the decline, down 46 per cent compared to the previous month.

In this context, the deep downward trend also clearly reflected the vehicle's origin. The number of domestically-assembled cars sold was only 9,783 cars, down 59 per cent, while imported CBU cars also fell 36 per cent month-on-month, reaching 9,460 cars.

Experts said that in addition to economic difficulties, people were tightening their spending, and customers had bought cars before the Government's 50 per-cent registration fee reduction policy expired in December last year.

The last month of applying the registration fee reduction policy helped car sales in the entire market increase by 39 per cent compared to the previous month.

The TC GROUP said that January was the time near the Lunar New Year, and consumers' cash flow was oriented to holiday needs rather than focusing on buying cars, leading to Hyundai's sales in particular also being low as well as the whole market declining.

It is predicted that after this time passes, the market will gradually stabilise, with expectations for higher sales growth in the following months.

The Vietnam News Agency quoted Toyota Việt Nam’s assessment that the market situation was expected to still face many difficulties and challenges this year.

In that context, it and its dealer system would continue to make efforts to improve product and service quality to attract customers, said the company’s representative.

More broadly, Ford Việt Nam assessed that the general difficulties of the auto industry are becoming more and more apparent as demand decreased while the burden of inventory increased.

However, Ford Việt Nam believed that the difficulties were only short-term. The Vietnamese automobile market was still considered a potential and attractive market in the eyes of automobile manufacturers, it said.

Economic experts forecast that the Vietnamese automobile market would grow 10 per cent this year compared to last year due to the recovery of the economy and the preferential support from the Government.

According to assessments from the Analysis Centre of SSI Securities Corporation, the country's automobile market will continue to face difficulties in the first half of this year because consumer demand remains weak and buyers have the mentality of waiting for new car models.

However, in general, the market would see a recovery in both quantity and value in the year, it said. SSI also forecast this year’s auto sales growth to be about 9 per cent year-on-year. 

Thai bank acquires Vietnamese finance company

Home Credit Group on February 28 announced the transfer of its entire shareholding in Home Credit Vietnam Financial Company to the Siam Commercial Bank Public Company (SCB), a member of SCBX Public Company (SCBX). The transfer agreement is valued at around EUR800 million (US$865 million).

The transfer process is expected to be completed in the first half of 2025, following approval by the relevant authorities in Vietnam and Thailand.

Home Credit Vietnam, a subsidiary of the international investment group PPF, started operations in 2009. The company holds a 14% market share of the consumer credit market, ranking second in Vietnam (after FE Credit).

Home Credit's core services include installment loans for consumer goods (motorcycles, appliances, electronics, furniture), cash loans, and credit cards.

The acquirer, SCB, is the oldest bank in Thailand and the fourth largest in total assets. SCB's parent company, SCBX, is a financial technology conglomerate with 12 subsidiaries operating in three sectors: banking, consumer finance, digital technology, and connectivity platforms.

The sale of Vietnam's second-largest finance company came when the consumer finance market was facing several headwinds. Low-income customers have been hit hard by economic difficulties, leading to a surge in non-performing loans for finance companies. New lending has also slowed down due to increased risks and reduced demand.

In the first half of the previous year, the profits of financial companies saw significant declines, with some reporting substantial losses ranging from hundreds of billions to trillions of Vietnamese dong (VND). In this challenging environment, Home Credit reported a profit of over VND210 billion ($8.5 million) in the first half of 2023, ranking second after MCredit.

VND258 trillion of corporate bonds to fall due by year-end

The Vietnam Bond Market Association (VBMA) has reported that more than VND258.2 trillion of corporate bonds will fall due between February 23 and the end of the year.

The real estate sector takes the lead in terms of the value of the bonds that will reach maturity, at VND99,234 billion, which accounts for 38% of the total. The banking sector follows, at nearly VND54,496 billion, making up 21% of the total.

Data from the Hanoi Stock Exchange (HNX) showed a series of bond batches worth billions of Vietnamese dong that will become due this year. Some of these bonds are of high value and were issued by newly-established or unlisted real estate companies.

Of note, a bond batch worth VND6,574 billion issued by SDI Corp will fall due on December 15, 2024, the highest value this year. Golden Hill and Nam An will have to redeem two bond batches, worth VND5,760 billion and VND4,700 billion, respectively.

According to the VBMA, businesses redeemed VND1,595 billion worth of bonds in February alone. So far this year, the total value of corporate bonds bought back before maturity has amounted to VND9,130 billion, down by 43% versus last year.

Binh Phuoc seeks investments from EU businesses

Representatives of more than 100 enterprises from 27 European countries and the European Chamber of Commerce in Vietnam (EuroCham) will attend the “Business Connection Forum – Industry, Trade, and High-tech Agriculture EuroCham – Binh Phuoc province in 2024” that is slated to take place in Dong Xoai city in the southern province on March 12.

Speaking at the press conference to announce the event on February 29, Vice Chairman of the provincial People’s Committee Huynh Anh Minh said that big European corporations such as Heineken, De Heus, Big Dutchman, Phileo by Lesaffre, Kilimo, Logwin Air, and Ocean, Stolz Asia, The Fruit Republic, Biodevas, Lallemand, Hung Nhon Aust Expor and businesses from EuroCham) will come to explore investment opportunities in the locality.

“Binh Phuoc wishes to attract businesses and strategic investors with reputation and financial and technological strength to invest in the fields of industry, commerce, high-tech agriculture, and areas that are in line with the local socio-economic development plan,” he said.

Binh Phuoc has a strategic geographical location, plays an important role in Vietnam’s new economic corridor, and is the gateway for economic, cultural, and social exchanges between the Southeast region, the Mekong Delta and the Central Highlands as well as with Cambodia, Laos, and Thailand.

It has a large land fund and a good transportation infrastructure system that smoothly connects it with the Central Highlands, the Southeast, and the seaport and airport system.

Currently, Binh Phuoc has 13 industrial parks with a total area of more than 6,000 ha. The province is planning eight new industrial parks in Dong Phu district with a total area of 4,200 ha, bordering Binh Duong, Ho Chi Minh City, and Dong Nai.

Vu Manh Hung, deputy chairman of the Vietnam Digital Agriculture Association (VIDA) said that besides activities at the forum, participants can also have field trips to the province's industrial zones/clusters, learn about local typical products and sign cooperation documents on digitalisation of hi-tech agricultural products between the provincial People's Committee, VIDA and EuroCham.

Vietnam Airlines to ground 12 aircraft for maintenance

Vietnam Airlines has said that it will suspend operating 12 A321 aircraft, which represents 20% of its primary fleet for domestic services, for engine maintenance, the local media reported.

The CEO of the national flag carrier, Le Hong Ha, speaking on the sidelines of the International Aviation Summit (IAS) held on February 28, said that supply chain disruptions and labor shortages are among the biggest challenges facing the civil aviation industry.

He said engines, spare parts and aircraft maintenance facilities were not enough for aircraft maintenance. The maintenance duration of an Airbus A350 aircraft engine has risen from 100-120 days to 250-300 days.

Concerns surrounding Pratt & Whitney engines have impacted over 3,500 aircraft globally, including the Vietnam Airlines fleet. With 12 Airbus A321s in need of maintenance, the airline will see a 20% reduction in operational capacity for its narrow-body fleet, which consists of 60 aircraft.

Vietnam Airlines is intensifying efforts to ensure stable and efficient operations of its current aircraft.

Vietnam’s coal imports soar in January

Vietnam imported 5.07 million tons of coal worth US$670 million in January this year, up by 216% in volume and 150% in value against the same period last year, according to the General Department of Vietnam Customs.

Australia was the largest coal exporter to Vietnam, with 1.91 million tons within just one month, followed by Indonesia with 1.65 million tons.

Statistics from Vietnam Customs also showed that the imports of crude oil and liquified gas in the fuel group both surged against the same period last year.

The total fuel import volume in January this year reached 7.51 million tons valued at a total of US$2.28 billion, up by 90% in volume and 11.7% in value against the same period last year.

Sentiment robust from foreign real estate investors

According to the Foreign Investment Agency under the Ministry of Planning and Investment, in January, the registered capital of foreign direct investment (FDI) increased sharply and the disbursement of FDI also surged.

The total capital registered in Vietnam in January reached $2.36 billion, an increase of more than 40 per cent on-year.

Up to $1.27 billion of such capital was poured into the real estate sector, accounting for 53.9 per cent of total registered capital and doubling compared to January 2023.

The increase in FDI into Vietnam and the breakthrough in the real estate sector are opening up many promising opportunities, especially in the manufacturing sector. Improvements in infrastructure development, administrative procedure reform, and investment in innovation centres in Vietnam are also contributing to making the market attractive to international financiers.

Fitch Ratings has also recently upgraded Vietnam’s long-term national credit rating to BB+ with a “stable” outlook.

Meanwhile, the retail market also recorded vibrant activities from foreign investors. In September 2023, Lotte Group opened its new mall in Hanoi’s Tay Ho district, while THISO opened its third Emart hypermarket in Ho Chi Minh City and plans to put money in the north after purchasing a 2.4 hectare land plot in the capital.

In the last months of 2023, many large developers launched new housing products, including The Privia project in Ho Chi Minh City, and Canopy Residences and Lumière Evergreen projects in Hanoi. The next phases of the Akari City and Glory Heights projects have also been launched in Ho Chi Minh City.

Meanwhile, Gamuda Land from Malaysia is proceeding with three new projects: Eaton Park and Elysian in Ho Chi Minh City, and Artisan in Binh Duong province.

Singaporean giant CapitaLand is moving forward with its mega project called Lumi in Hanoi and is also slated to start its first project in Binh Duong, Sycamore, imminently.

Matthew Powell, director of Savills Hanoi, commented that upcoming new laws on land, housing, and real estate have given a boost to the property landscape.

“The adoption of these laws can be seen as a positive signal for the investment market in the next year, boosting confidence. The Vietnamese market with real demand for housing as well as confidence in the office and industrial real estate sectors will be the key to the start of a new cycle this year. However, we still need to wait for the legal documents to be able to observe clearer changes,” Powell said.

Meanwhile, CBRE carried out a survey on Asia-Pacific investor intentions, conducted in November and December, involving more than 500 people answering a range of questions related to their buying intentions, perceived challenges, and preferred strategies for the coming year.

According to the survey, Vietnam secured second position among the most sought-after emerging markets for added value and opportunistic strategies. This ranking places Vietnam just behind India in terms of attractiveness.

“Vietnam’s market presents a unique landscape where portfolios consisting of income-producing assets are scarce and typically not available for sale. As a result, most investors in Vietnam focus their attention on industrial and office assets, aligning with the prevailing trend observed across the Asia-Pacific region,” read the survey.

Duy Nguyen, investment properties director at CBRE Vietnam, commented that Vietnam’s robust economy and export-oriented strategy have propelled trade activities, thereby underscoring the critical importance of efficient logistics and supply chain management.

“Investors recognise the potential in supporting and capitalising on these requirements, further driving the demand for industrial assets,” Duy said.

Additionally, residential development sites in Vietnam continue to generate strong interest from foreign developers.

“Many are actively exploring opportunities in distressed assets or properties owned by landlords facing legal challenges or limited access to funding sources,” he added. “Investors with a long-term view on the potential of Vietnam’s economy and ready to deploy capital are most likely to reap the benefits of the repricing and decompression of asset yields. This is particularly true when sellers are seeking to exit at the conclusion of their investment window.”

Binh Duong industrial production increases sharply

The index of industrial production (IIP) of the southern industrial hub of Binh Duong in January rose by 27.77% against the same period last year and increased by 99.29% compared to that of the previous month.

Chief of Office of the provincial People's Committee Vo Anh Tuan said that in the first two months of this year, the province’s industrial production and exports have created positive momentum for the province's economy.

By the end of February, its export turnover reached more than 7.3 billion USD, an increase of 6.17% over the same period last year.

Since the beginning of this year, the province has attracted a total investment of nearly 11.32 trillion VND (459.2 million USD), an increase of 109.1% year on year, including over 5.28 trillion VND from 947 newly registered businesses, and nearly 6.9 trillion VND from 130 businesses that increased their capital. Meanwhile, 17 enterprises registered to reduce their capital investment of 274.3 billion VND.

To date, the province has attracted 66,947 domestic enterprises with a total registered capital of 738 trillion VND.

HCM City export furniture fair to take place from March 6-9

Ho Chi Minh City's export furniture fair (HawaExpo 2024) will take place in the southern largest economic hub from March 6-9 with most of the exhibition space and trade promotion activities prioritised for domestic businesses, the organiser Viforest Fair has announced.

Speaking at a press briefing on February 29, Viforest Fair Chairman Nguyen Quoc Khanh said that the fair will be held at the Saigon Exhibition and Convention Centre in district 7 and the White Palace Convention Centre - Pham Van Dong in Thu Duc city.

The fair is expected to attract more than 500 exhibitors, 80% of whom are domestic producers while the remainders include prominent wooden furniture and handicraft manufacturers from ASEAN countries as well as local and foreign design units, raw material suppliers, and accessory providers.

The organiser also actively coordinates with businesses to select the most outstanding products and latest collections to promote besides products that Vietnamese businesses can make. The move is expected to help show international buyers the capacity and potential of Vietnam's wood, furniture, and handicraft industry.

After HawaExpo 2024, Viforest Fair will organise the international outdoor style fair (Q-Fair) 2024 from March 9 -12 in Quy Nhon city in the south-central province of Binh Dinh. The event is expected to have more than 1,000 booths from over 100 businesses.

Packaging among sectors with highest growth in Vietnam: insiders

The packaging industry, which is projected to expand 15-20% in the next few years, is among sectors posting highest growth rate in the country, experts said at a press conference held in Ho Chi Minh City on February 29 to introduce the 17th International Processing and Packaging Exhibition and Conference for Vietnam (ProPak Vietnam 2024.)

Vietnam is now home to 900 packaging enterprises, with some 70% operating in the south, mostly in HCM City, Binh Duong and Dong Nai, they said, adding demand for carton packaging is rising on the back of e-commerce development.

More than half of the 96 million Vietnamese population will shop online by 2025 and in the digital technology world, packaging is also considered a foundation for interaction between consumers and brands, they elaborated, highlighting rapid growth of the retail market, cosmetics industry and exports of electronics products also contributes to the surge in demand for carton packaging. 

Mordor Intelligence Inc revealed in its report that the Vietnam’s paper packaging market size is estimated at 2.6 billion USD in 2024 and 4.14 billion USD in 2029, growing at a compound annual growth rate (CAGR) of 9.73% during the 2024-2029 period. Other market surveys estimated the metal packaging market in Vietnam at 2.11 billion USD in 2024 and 2.45 billion USD in 2029, growing at 3.07% in the period.

At the pre-show press conference, Jeffrey Au, Director of the Informa Markets Asia – the operator of the ProPak Vietnam 2024 said that since the “Race to Net Zero” campaign was launched by the Vietnamese Government, the concept of the circular economy and sustainable requirements have critical impacts on packaging designs.

Recycling packaging has become important for the food and beverage sector, he said, adding the Vietnamese consumers are more conscious of their health and willing to spend more on products that are believed to have high quality and be manufactured in accordance with safety standards.

Against this backdrop, the food and beverage sector has paid due attention to developing automation process to standardise products’ quality, improve production efficiency and ensure sustainability in recent years, he said.

He added that there is an increasing number of businesses embracing the circular economy as they are shifting to circular production to provide the market with recyclable materials, designs and packaging.

ProPak Vietnam will make a comeback in HCM City on April 3-5, drawing the participation of more than 450 exhibitors across the globe. This annual event is dedicated to technology suppliers involving in the food, drink and pharmaceutical processing and packaging, plus the printing and labelling industries, bringing together thousands of industry leaders and professionals from all segments of the supply chain under one roof.

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