In a recent report by the ministry, the Japanese market had a GDP of US$4.1 trillion in 2022 with a population of 125 million and an annual import demand of $900 million. South Korea's GDP was over $1.73 trillion, and an annual import demand of $731 million.

Despite numerous free trade agreements signed between Viet Nam and the two countries, Vietnamese products only accounted for a modest 2.7 per cent in the Japanese market and 3.3 per cent in the South Korean market. There was still a lot of room for improvement in Vietnamese exports, especially given the strong economic ties between the three countries in recent years. 

Do Quoc Hung, deputy head of the Asia-Africa market department under the MoIT, said both Japan and South Korea have strong demand for products that are Viet Nam's strengths. 

For example, Japan imports over $24 billion worth of textile products annually but Vietnamese exporters have only managed to account for just over 12 per cent market share. Viet Nam does better with leather and footwear products with 18 per cent market share, or $4.5 billion.

The Southeast Asian economy tends to do worse with agricultural products in Japan despite being a world-class exporter. Every year, Japan imported nearly $1 billion worth of bananas, mainly from the Philippines at $844 million. Meanwhile, Vietnamese banana accounts for just over $6 million.

Vietnamese coffee and seafood fare a little bit better at 14 per cent and 11-22 per cent market share, respectively. 

It's the same story for South Korea where Vietnamese agricultural and seafood products exported to South Korea only account for about 3 per cent market share with bananas taking just 1.3 per cent and coffee 12 per cent in their respective markets. 

Hung said the challenges no longer have to do with customs duties and trade barriers but rather a difficulty in meeting the high standards set by the two markets including quality, sustainability and environment. 

In addition, Vietnamese exporters have yet to establish a strong connection with local distribution channels and lack the management capacity to oversee operations in foreign markets. 

"We are sitting on major advantages thanks to numerous trade agreements signed with Japan in the form of reduced tariffs, in many cases to 0 per cent such as textile, garment and seafood," he said.

Similarly, a vast majority of Vietnamese products (97.2 per cent) exported to South Korea enjoy a 0 per cent tariff with Vietnamese fruits going to be tariff-free from 2024. Meanwhile, several ASEAN countries still face as high as 36 per cent tariffs in Japan and South Korea.

A major reason was a shift in consumer's attitude towards more environmentally friendly and increased demand for highly specialised products in said markets.

Both countries have, in recent years, impose stricter standards on imported agricultural products. Those who cannot adapt will likely face great difficulty in gaining access in the future. 

"Take banana for example, while there is great demand Japanese and South Korean consumers have specific preferences for varieties, packaging and weight," he said. 

It requires a deep understanding of consumer behaviour and preference to produce the right products. 

In addition, there have been numerous incidents in the last five years in which Vietnamese products were found to contain residue of harmful ingredients or additives. 

According to Hung, due to the limited ability to meet quality standards, there have been numerous cases of violations of import standards. Statistics over the past 5 years have shown dozens of violations, mostly related to exceeding permissible levels of harmful ingredients or using unlicensed additives, which did not help improve Vietnamese products' reputation. 

Vietnamese exporters have also been struggling with meeting product origin rules set by the two countries, which require exporters to be fully transparent when it comes to input material and product origin.

Experts have long called for greater incentive programmes for businesses to engage in more sustainable production and awareness of high-quality standards to help Vietnamese products compete in international markets including Japan and South Korea. 

PM: Hai Phong needs breakthroughs to match position

Prime Minister Pham Minh Chinh has instructed the northern port city of Hai Phong to create breakthroughs to match its position and role in the Red River Delta and Vietnam as a whole.

He made the request while visiting key projects in the city on May 13.

He said that developing socio-economic infrastructure, especially roads, seaports, industrial parks, and non-tariff zones, is one of three strategic breakthroughs targeted by the Party and State, which have issued many resolutions, directives, mechanisms, and policies to promote their development.

The Politburo issued a resolution on the development of the Red River Delta and another on Hai Phong city by 2030 with a vision to 2045, to firmly bolster the Hanoi - Hai Phong - Quang Ninh development triangle.

Among Red River Delta localities, Hai Phong has received the largest investment from the State but its contribution to the country remains modest. It therefore needs to create breakthroughs to deserve such levels of investment, Prime Minister Chinh said.

VCCI Can Tho Japan Desk debuts

The Vietnam Chamber of Commerce and Industry (VCCI)’s branch in Can Tho opened the VCCI Can Tho Japan Desk in the Japanese city of Kobe of Hyōgo prefecture on May 15.      

The Japan Desk is set to serve as a co-ordinator between Japanese investors and local authorities regarding information updates and investment facilitation for Japanese investors in the Mekong Delta region.

Vietnamese businesses will also be able to make use of the office free for conferences involving Japanese partners in order to promote further trade and investment ties between the two countries.

According to VCCI’s branch in Can Tho, a Mekong Delta-Japan business forum is scheduled to take place in September and around 200 Japanese investors will join the direct flight from Tokyo to Can Tho in order to attend the forum.

The VCCI Can Tho Japan Desk has been tasked with both guiding and supporting Japanese financiers and helping them to address difficulties, thus helping lure more foreign direct investment (FDI) from Japan to the Mekong Delta region.

Major banks lower deposit interest rates

Deposit interest rates at many major banks in Vietnam have been lowered by 0.1 to 1.1 percentage points compared to those in early May, making it possible to offer lower lending rates, according to the local media.

Vietcombank has recently lowered its deposit rates for tenors of one to two, three, and six to nine months to 4.6%, 5.1% and 5.8% per year, respectively.

The deposit rates for the 12-month term or longer remain at 7.2% per year.

Vietinbank and Agribank have also slashed their deposit rates by 30 basis points per year for different tenors, similar to those offered by Vietcombank.

VPBank’s deposit rates for terms over 12 months have been reduced by 20 basis points per year. The highest rate is now 8% for the 12-13 month term while the rates for the 15-36 month term have been cut to 7.2% per year.

TPBank has also revised down its deposit rates by 20 basis points for tenors of six months or longer. Currently, the highest deposit rate at this bank is 7.8% per year for online savings accounts with a 12-month term.

The deposit rates at OCB have also been adjusted down by 0.1-1.1 percentage points per year. Similarly, Techcombank now applies deposit interest rates of 5.5% for tenors of less than six months and 7.6% for tenors of over six months.

Collective economy, cooperatives need to promote innovation for economic efficiency

The collective economy and cooperatives have made new developments, overcoming prolonged weaknesses and helping connect farmers, businesses, and build a rural ecosystem.

However, there is a need for changes in the operation and management of the collective economy to fully tap its potential, experts have said.

The collective economy and cooperatives have been present in Việt Nam for a long time. During the period from 1955-1985, cooperatives were formed to gather small producers in a trade and each member was assigned a specific job.

After the transition from a subsidy economy to a market-oriented economy between 1986-1996, the collective economy and cooperatives faced many difficulties and many cooperatives were ineffective.

In 2012, the Law on Cooperatives was introduced, helping to establish a clear and specific direction for cooperatives, especially agricultural cooperatives. Ten years since the Law on Cooperatives came into effect, cooperative units and clusters have been established, forming a collective entity with legal status, production and consumption plans, and specific quality criteria to negotiate with domestic and even international buyers.

The Central Institute for Economic Management reported that since the Law on Cooperatives was born, the cooperative economy has directly contributed an average of 48 per cent to the country's GDP.

By the end of 2022, there were nearly 30,000 cooperatives, 125 cooperative federations, and 71,000 cooperative clusters nationwide. Of that, there are 35,000 agricultural cooperative clusters, 19,500 agricultural cooperatives, and 91 agricultural cooperative federations, attracting 3.8 million members and providing 1.5 million jobs.

Cooperatives, particularly agricultural ones, have connected small and individual farming households into a larger group, and helped determine their production and consumption amid intense competition.

Ngô Minh Long, Chairman of the Hậu Giang Cooperative Alliance, said that the Mekong Delta is an area with strong potential for agriculture. Without the model of cooperatives, most farmers in this region would struggle and compete with each other to find outlets for their products. With cooperatives, each farmer only needs to perform their duties well and produce high-quality products according to the requirements of customers, leading to success for the entire group of farmers.

Nguyễn Quốc Bảo, Chairman of the Board of Directors of the Bến Tre Green Grapefruit Cooperative, shared that since its establishment, the cooperative had only 69 members, but now has attracted more than 310 members.

Cooperative members have many opportunities to collaborate with agricultural cooperatives in Canada, exchange experience in producing green grapefruits and find customers, he added.

However, the efficiency of the collective economy in the past 20 years has been modest.

Minister of Planning and Investment Nguyễn Chí Dũng said the growth rate of the collective economy was only 50 per cent of the overall economic growth rate.

To develop the collective economy and cooperatives, Dũng said that it is necessary to improve the institutional framework and technical infrastructure of rural and mountainous areas.

At the same time, the workforce should be improved to manage cooperatives along the value chain. In particular, the cooperatives need to promote the advantages of member scale, and attract more members for further development.

Minister of Agriculture and Rural Development Lê Minh Hoan said in addition to the management of human resources of each cooperative, the role of local authorities is very important. The more attention local leaders pay to the collective economy, the more quality cooperatives are active in that area.

All levels and sectors need to support cooperatives with resources already linked to sustainable rural development strategies. In order to effectively develop the collective economy, the National Assembly has recently undertaken a project to revise the 2012 Cooperative Law, creating opportunities for cooperatives to access resources for development, he added.

Nguyễn Tiến Định, representative of the Cooperative and Rural Development Economics Division under the Ministry of Agriculture and Rural Development said among more than 18,700 agricultural cooperatives, only about 3.7 per cent have access to credit annually.

This difficulty in accessing preferential loans from the commercial banking system has caused the cooperatives to lack the economic resources to invest in processing, leading to a focus on harvesting with low productivity, limiting the formation and development of supply chains.

In mid-June 2022, the Government issued Decision No799/QD-TTg to develop a revised Cooperative Law project.

The development of the collective economy has become a crucial task to promote the country's economy. A resolution on continuing to innovate, develop and improve the efficiency of the collective economy in the new period was passed at the fifth plenum of the 13th Party Central Committee.

It targets that by 2030, the country will have approximately 140,000 cooperative groups with two million members, 45,000 cooperatives with eight million members, and 340 cooperative federations with 1,700 member cooperatives.

More than 60 per cent of collectives are expected to reach a good or fair development level, with at least 50 per cent participating in value chain linkages.

Additionally, the country aims to have over 5,000 cooperatives applying high technology to agricultural production and consumption, developing agricultural value chains linked to production, providing processing services and product consumption, and promoting participation in supply chains for export.

To achieve these goals, many initiatives have been implemented. The application of high technology and digital transformation in the production and consumption of agricultural products is a big step forward for the cooperatives.

Nguyễn Đức Phương, Chairman of Cần Thơ City's Cooperative Alliance said that the group has supported more than 40 cooperatives to exchange information, buy and sell goods on social networks.

They have also supported the introduction of products with food safety certificates or VietGAP certificates, and products that have been certified under the One Commune One Product (OCOP) programme on e-commerce trading floors such as Posmart.vn, Voso.vn, and chonongsancantho.vn.

This has gradually helped cooperatives transform their business methods and increase their competitiveness in the market.

Phạm Ngọc Đá, Director of the Giọt Phù Sa Agriculture Technology Cooperative in Phong Điền District in Cần Thơ City shared that the cooperative uses QR codes to trace the origin of products and also sells products on e-commerce trading floors. This has not only increased customers’ trust but also helped the cooperative improve business efficiency.

Currently, their products are widely sold in provinces in the Mekong Delta region and HCM City. The products are also sold through e-commerce platforms such as Tiki, Lazada, and Posmart.vn.

This has brought high economic efficiency to the cooperative, contributing to stable income for more than 20 labourers with a monthly income of VNĐ5-8 million per person.

Phương said the group has proposed to continue to coordinate with relevant departments and branches of the city to organise training courses to help the cooperatives apply information technology in production and consumption.

This will help the cooperatives access and effectively apply digital solutions to their production and business activities, developing sustainably and adapting to the market, he said. 

Toyota Vietnam tops passenger car market in April

Toyota Vietnam sold 4,415 passenger cars, including the luxury brand of Lexus, in April, topping the passenger car market, the joint venture reported.

It delivered 4,247 vehicles of Toyota models to buyers, comprising 1,876 domestically assembled cars and 2,371 imported completely built-up units.

Corolla Cross and Vios were among the 10 best sellers in the market with respectively sales of 1,310 and 695 units.

Meanwhile, 168 Lexus-branded cars were sold, raising the number of those vehicles in Vietnam so far to 10,960, the firm added.

Last month, members of the Vietnam Automobile Manufacturers’ Association (VAMA) sold 22,409 automobiles of all kinds, a month-on-month decrease of 25%.

Of the total, there were 15,748 passenger cars, 6,487 commercial vehicles and 174 special-purpose ones, down 27%, 19%, and 51% from March, respectively.

The sales of domestically-assembled cars decreased by 18% while that of imported ones dropped by 34% compared to the previous month.

During January - April, VAMA members sold a total of 92,801 vehicles, falling 30% year on year.

Construction of $114 million tower in Hanoi to resume

The Ministry of Construction has proposed that the Prime Minister permit the Vietnam Cement Industrial Corporation (Vicem) to resume work on a project building an office and transaction center in Hanoi’s Cau Giay district that has been idle for years.

Construction began in 2010 with estimated investment of over VND2.7 trillion ($114 million) and was to take three years.

It was then delayed.

In August 2016, Vicem was permitted to transfer the project in 2017 but the process met legal difficulties and obstacles.

The project has not moved forward since. The company therefore sought the Prime Minister’s permission to resume construction.

Long An calls for investors to build urban area

The Long An Provincial Department of Planning and Investment in the Mekong Delta is calling for investors to build the Thanh Phu - Tan Buu residential area in Ben Luc district.

Total investment is estimated at over VND6.16 trillion ($260 million).

The project will cover an area of 143.79 ha and house around 25,000 people.

It includes 240 adjacent houses, 170 commercial houses, and 244 villas.

More than 11,700 sq m will be used to build resettlement housing while around 20 per cent of land will be allocated to build social housing.

The province has also called for investment in building an ecological, commercial, and tourism urban area in Ben Luc district with estimated investment of more than VND13.9 trillion ($586 million).

Over $500mln to be invested in transport projects in Long An

The Ministry of Transport will focus resources on investing in the construction of three priority transport projects in the Mekong Delta’s Long An province with total estimated investment of over VND12.5 trillion ($527 million).

One of the project is to upgrade National Highway No. 62 and Road N2, at an estimated cost of more than VND2 trillion ($84 million). It is listed as one of the projects to use financial support from partner donations to reach sustainable development goals in the Mekong Delta region in climate change adaptation.

Another will build a section of Ring Road No. 3 in Ho Chi Minh City passing through Long An province. Investment in the 7-km section is over VND8.3 trillion ($350 million).

The first phase of the Ring Road No. 3 project began in 2022 and is expected to be completed by 2025 and open to traffic in 2026.

The third project will build a section of the Ho Chi Minh Highway passing through Long An province. It is 21 km in length and will cost an estimated VND2.2 trillion ($92 million).

Construction of Aeon Mall Thanh Hoa expected to begin in Q4

Construction of the Aeon Mall project in Thanh Hoa city, north-central Thanh Hoa province, is expected to kick off in the fourth quarter of this year, according to provincial authorities.

The mall has total investment of around $170 million.

It is scheduled for completion by the fourth quarter of 2024.

Legal procedures and site clearance have been basically completed.

The Thanh Hoa Provincial People’s Committee and Japan’s Aeon Mall Group signed an MoU on speeding up construction on November 5, 2021.

It was scheduled to begin in the first quarter of 2022 and be put into operation in early 2023. Construction was delayed, however, as a result of many factors, in particular the Covid-19 pandemic.

HCMC focusing resources on speeding up key transport projects

Chairwoman of the Ho Chi Minh City People’s Council Nguyen Thi Le has requested that the city’s Management Board for Transport Works Construction and Investment focus resources on implementing key transport projects to prevent delays that will affect investment efficiency and the city’s public investment plan.

At a recent working session with the Management Board on public investment tasks for the 2021-2025 period, she also asked it to clearly identify capital demand in transport projects and the feasibility and disbursement plans for public investment capital, to ensure the efficiency of public capital.

Director of the Management Board Luong Minh Phuc said that it will manage 162 projects during the period with total investment of over VND74.7 trillion ($3.15 billion).

All projects were allocated capital for mid-term investment during the 2021-2025 period, totaling more than VND26.6 trillion ($1.12 billion).

Hanoi uncovers 1,400 cases of smuggling and trade fraud

Smuggling, the sale of counterfeit products, and trade fraud remain common in Hanoi, with 1,400 cases being detected in April, according to the city’s Market Watch Forces.

Trafficked goods were primarily products with high consumer demand, such as tobacco, functional food, confectionery, cosmetics, and household appliances.

The production and trade of low-quality or counterfeit garments, textiles, and electronics take place with different tricks and methods being used.

A representative from the Hanoi Market Watch Department, Tran Viet Hung, said authorized forces in the capital have enhanced supervision and inspections to prevent smuggling, trade fraud, and the illegal transport of products via international airports or along border areas, and to prevent trade fraud and fake products in e-commerce activities.

Hung Yen enters early-ripening hybrid litchi harvesting season

Phu Cu district in the northern province of Hung Yen, the “capital” of early-ripening hybrid litchi, is finalising preparations to ensure the smooth selling of the tropical fruit as it is entering harvesting season in two weeks.

Phu Cu is home to 1,100 hectares of litchi, including 850 hectares of early-ripening hybrid litchi, mostly in Tam Da, Minh Tien and Tien Tien communes.

The district has three litchi regions that have been certified to meet requirements to export to Japan, the Republic of Korea and Europe.

Vu Xuan Quy, Vice Chairman of the district People’s Committee said that the harvesting season of the local early-ripening hybrid litchi often falls in late May, 2-3 weeks earlier than other kinds of litchi. This year, the district expects an output of 12,000-15,000 tonnes.

According to local farmers, Phu Cu early-ripening hybrid litchi has special and outstanding delicious taste, becoming a specialty that is loved by consumers.

Nguyen Kha Phuc, Chairman of the district People’s Committee said that the locality has create favourable conditions for local farmers and traders to sell and buy early-ripening hybrid litchi products.

It has focused on directing and guiding local farmers to grow litchi towards VietGAP standards, while registering the four-star OCOP (One Commune-One Product) title for the product, he said.

Nguyen Van Tho, Director of the Hung Yen Department of Industry and Trade said that the department is preparing for a series of trade promotion events starting with the Hung Yen litchi market at Ecopark in Van Giang district.

Tho asked relevant agencies to review information of distributors and traders that have signed contracts with local farmers and introduce this year’s products to them.

The official pledged to continue supporting local farmers in seeking new distributors and markets to promote litchi consumption.

Tho also advised the farmers to ensure stable quality of their products and keep close contacts with buyers, thus ensuring stable selling activities.

Proper investment policy needed to attract high-quality FDI flows

Vietnam requires a proper and attractive investment policy and a friendly business climate in order to attract new foreign direct investment (FDI), especially high-quality FDI flows, heard a seminar held on May 15 in Hanoi. 
      
At the seminar running with the theme of “Stronger investment partnership for a thriving Vietnam”, experts pointed out that Vietnam has been highlighted by the international community as one of the leading countries that has obtained major important achievements in relation to attracting foreign investment.

According to the Ministry of Planning and Investment, the nation has attracted US$446 billion in FDI by the end of April, of which nearly US$280 billion has been disbursed. Most notably, several leading multinational corporations are in the process of expanding their investment locally.

Upon addressing the event, Le Trong Minh, editor-in-chief of Dau Tu (Investment) Newspaper, emphasized that the event provided an ideal venue for both domestic and international experts to come together to evaluate the effectiveness of the FDI capital in the nation, achievements and lessons learnt in attracting FDI, as well as investment trends in the new context.

Philipp Munzinger, director of GIZ Energy Support Program (ESP), revealed that the country has impressed the international community over the years due to its fast economic growth and rapid expansion of renewable energy, along with its energy efficiency measures.

He underscored the importance of maintaining the growth momentum whilst simultaneously accelerating the energy transition in a fair and sustainable way moving forward.

Sharing this perspective, Furusawa Yasuyuki, general director of AEON Vietnam, pointed out that the country’s investment climate has undergone changes, but huge opportunities still outweigh the challenges.

Furusawa stressed that with rapid population growth, especially its fast growing middle class, the nation boasts great potential for economic development, with its growth rate being much higher than other Asian countries such as Japan.

He revealed that AEON Group has identified Vietnam as its second key market next to Japan in order to accelerate investment activities. 

Furthermore, he expressed his hope that that country will continue to simplify administrative procedures in order to facilitate Japanese investors’ operations in the country.

Bui Trung Kien, vice president of CME Solar Investment Company, said rooftop solar power has become one of the areas attracting plenty of attention from investors around the world in recent times, adding that the Vietnamese Government must create the optimal conditions possible for investors in this field.

Kien suggested that the Government fine-tune the legal regulations in order to protect the interests of investors whilst minimizing risks occurring in the investment process.

VietJet Air receives three new aircraft A321 Neo ACF from Airbus

Domestic low-cost carrier VietJet Air has recently acquired three new-generation A321 Neo ACF aircraft which will join its modern fleet.     

Boasting an array of outstanding features in terms of fuel efficiency, emission reduction, and environmental protection, the A321 Neo ACF aircraft is expected to contribute to improve operational efficiency, whilst simultaneously providing the airline’s customers with the best flying experience possible this summer.

With a strong rebound in the post-COVID period, the firm is constantly expanding its flight network to new destinations in Australia, India, Kazakhstan, Japan, and the Republic of Korea.

It has also received more modern planes such as the A330 and the A321 which meet passengers’ demands both across the country and abroad.

According to the plan, VietJet will continue receiving additional new aircraft, especially the large A330 aircraft, and stands ready to launch its scheme to expand its global network, thereby connecting Vietnam to five continents.

To keep up with the latest travel trends, the airline has prepared its workforce and applied advanced technologies in an effort to bring the best travel experience possible to customers during the peak season.

It has also launched additional air routes to several popular summer destinations such as Phuket in Thailand, Brisbane in Australia, and even new destinations like Hiroshima in Japan.

At an earlier recent general meeting of shareholders, VietJet approved a plan to increase its fleet to 87 aircraft, including the new generation A321 Neo ACF aircraft, with the aim of operating 139,513 flights and transporting 25.7 million passengers.

Recently, the VietJet Aviation Academy (VJAA), the airline’s leading international standard training institution, signed a co-operation agreement with F Air flight school of the Czech Republic in a bid to develop basic pilot training programmes and train pilots for both VietJet and the regional aviation industry.

Breakthroughs sought in order to curb drop in export figures

After a year of record sales, exports of agro-forestry-fishery products are decreasing sharply, and numerous businesses are stunned by the situation changing so quickly, from having too many orders to waiting for them to come in.

Tran Van Linh, CEO of Thuan Phuoc Seafoods and Trading Corporation, said that the business was working overtime through the night this time last year, and refusing orders because of limited time and supplies. But since the beginning of the year, they have only signed a few of small orders. Some employees have even taken a break from work because production is so minimal.

A representative of Son Tra Seafood Processing Co., Ltd. said that at this time last year, they had exported more than 30 tonnes of goods, but such exports are down 30 per cent so far this year.

Wood exporters are also falling into a gloomy production cycle. Do Thi Kim Loan, general director of Sao Nam Co., Ltd., a furniture producer, said that the US was the major export market, accounting for about 90 per cent of the company’s exports, but orders were now only at about 65 per cent of last year.

Export turnover in April was $27.54 billion, down 7.3 per cent on-month, and 17 per cent on-year. In the first four months of the year, export value was estimated at $108.57 billion, down 11.8 per cent on-year. The Ministry of Industry and Trade (MoIT) forecasted that total export and import turnover in the whole year will be around $600 billion, much lower than the $775-800 billion target.

The General Statistics Office reported total export and import values in the first four months at $210.78 billion, including $102.22 billion of imports. Despite a high trade surplus of $6.35 billion, much higher than the same period last year at $2.35 billion, the two-digit decline in both exports and imports confirms serious difficulties in production and business.

Looking at the structure of export goods so far this year, export of processed industrial products is estimated at $96.1 billion, accounting for 88.5 per cent, but the sector is facing difficulties due to the general decline in demand worldwide.

Export of such products as textiles, footwear, electronic and computers, and furniture decreased by up to 20 per cent, while industries like rubber and seafood reduced by more than 25 per cent. The total export turnover of textiles and garments in the first quarter of the year only reached $8.7 billion, down 18.63 per cent on-year, which is a sharp decrease compared to the same period many years ago.

According to the MoIT, there are many reasons why the production and export of all commodities has decreased sharply in 2023. In particular, the export markets are struggling with challenges due to high inflation and the decline of purchasing power, especially non-essential consumer goods. Industries such as textiles and garments, leather and footwear, timber, and seafood, whose main export markets are the US and EU, witnessed the biggest decline.

Besides this, the costs of raw materials, input materials, labour, and transportation costs have soared while the selling export prices have not, reducing competitiveness.

Numerous solutions for export have been considered by the MoIT. Nguyen Ngoc Thanh, deputy director general of the MoIT’s Agency for Industry, suggested utilising opportunities in public projects to consume items as steel, construction materials, vehicles, construction and manufacturing mechanics.

For major export industries, Thanh emphasised that products should meet green standards of exporting markets, in addition to looking for new opportunities.

Both developing traditional markets and diversifying export markets are solutions implemented by departments and sectors. Nguyen Dinh Dai, director general of northern Lang Son province’s Department of Industry and Trade, said cooperation with the Chinese market was key.

The government also requires the MoIT to find solutions to increase exports and closely control imports, and take advantages of commitments in signed free trade agreements (FTAs). The MoIT is now working with Vietnam’s trade offices overseas to seek more information from markets to provide timely consultancy for the government and the prime minister on how to boost exports.

At last month’s conference on trade promotion, MoIT Minister Nguyen Hong Dien said the country needed to boost negotiations, take advantage of FTAs, and enhance trade promotion to connect directly with foreign trade agencies to learn about their markets.

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