These figures show that China continues to be the country’s second largest export market, behind only the United States.

Most notably, there were five export groups recording a turnover of US$1 billion or more, representing a rise of three categories compared to the same period from last year.

These product groups include cameras, camcorders and components with US$1.88 billion, up 102.8%; fruits and vegetables with US$1.16 billion, up 44.6%; and machinery, equipment, tools, and spare parts with more than US$1 billion, up 7%.

The remaining groups are computers, electronic products, and components with US$3.98 billion, up 23.5%; as well as phones and components with US$3.47 billion, down 14%.

Among the main export product groups, only phones and components endured a downward trajectory compared to the same period from last year.

According to a report released by the Ministry of Industry and Trade, due to the recovery of the world market, import and export activities during the four-month period has enjoyed robust growth with trade turnover reaching US$238.88 billion, up 15.2% on-year.

Of the figure, exports and imports soared by 15% and 15.4%, respectively, with trade surplus of US$8.4 billion.

Major Vietnamese exports markets and trading partners throughout the reviewed period have rebounded, with the United States remaining the largest export market, followed by China, the EU, the Republic of Korea, and Japan.

PM chairs meeting on fiscal, monetary policy management

Prime Minister Pham Minh Chinh chaired a meeting in Hanoi on May 16 with ministries and agencies to discuss the coordination of fiscal and monetary policies aimed at maintaining macroeconomic stability, controlling inflation and promoting growth.

Amid ongoing global uncertainties, PM Chinh emphasised the need for proactive and flexible management of fiscal and monetary policies. He called for a focused and prioritised approach, ensuring that fiscal policy tools are synchronised with monetary and other macroeconomic policies in a harmonious and suitable manner.

The PM stressed the need to prevent the exchange rate from affecting macroeconomy and inflation control, while requesting that the lending rates should be reduced by 1-2% to stimulate production and trade. He set a target for credit growth of 5-6% right in the second quarter.

Additionally, he urged efforts to increase State budget revenue and manage State budget expenditures strictly, thus improving the efficiency of budget management, allocation and use while tightening financial discipline and order.

The leader also directed the continued promotion of public investment, with a focus on key national infrastructure, inter-regional socio-economic development, and social housing projects. He suggested considering the issuance of bonds and pooling all social resources, with an initial aim of raising about 100 trillion VND (4.16 billion USD) for projects related to green transition, digital transformation, and social housing during the 2021-2025 period.

Regarding gold market management, he instructed the immediate adoption of various tools and measures to regulate and stabilise the gold market more effectively and in a timely manner./.

Real estate firms back on track

The real estate market is showing inspiring signs amid resumed transactions, with businesses in the sector about to embrace a new growth cycle.

Nguyen Duc Thinh, director of HT Holdings Real Estate Trading JSC, believes that the property market is showing upbeat signs, mirrored by the fact that developers are launching new products and real estate transaction centres are beginning to recruit brokers.

“These factors together indicate that the market is becoming increasingly open, and investors are gaining more trust. In the upcoming time, for marketing staff alone our company intends to employ about 100 personnel, then observe the market movement and possibly open new branches,” said Thinh.

Pham Danh Khoi, director of Dat Xanh Services Institute of Economic, Financial and Real Estate Research, said that in the first quarter of this year, the rate of real estate firms halting operations was much lower than one year ago.

“Currently, Dat Xanh Services system envisages recruiting about 2,000 marketing staff nationwide in the lead-up to the anticipated rebound cycle of the real estate market. Human resource in this field is one of the fields forecast to rebound strongly, including both brokers and professionals,” said Khoi.

Amid positive signs in the market in the first four months, several developers are mulling sales plans.

Nam Long Group, a developer of affordable housing in the south, said that during 2024-2026 the company would focus on developing more than 10,000 housing units, with 65 per cent of them being affordable Ehome and Ehome apartments with value at VND1 billion ($41,600) per unit; condominiums at $187,500 per unit; and villa and shop house units with a value below $625,000 per unit.

From next year, Nam Long will gradually raise the long-term land sources earmarked for medium range products through mergers and acquisitions.

Simultaneously, the company will dedicate budget to expand available land and develop new urban fund in the long term, setting plans to reach sales revenue reaching $398 million, and $277 million in net revenue in 2024, double 2023’s levels.

Dat Xanh Group, a major developer in southern region, is mulling over completing compensation and fulfilling five big projects embracing several hundred hectares in preparation for the 2025-2030 development cycle.

In addition, Dat Xanh will further buy projects to expand land for development.

Another southern developer An Gia Group has announced it is seeking M&A opportunities to expand its available land, with priority given to projects with an approved investment policy, which are affordable and ready for quick implementation.

According to Vietnam Association of Realtors, many real estate businesses have almost finalised restructuring to become ‘healthier’.

Most of the firms, particularly brokers, exhibit optimism and set forth higher development targets compared to 2023 results.

In the first four months of this year, more than 1,300 real estate firms had resumed operation, up 22.3 per cent on-year, according to the General Statistics Office.

Businesses allowed to decide their own petrol retail prices: draft decree

To create a competitive environment among petroleum enterprises and implement price stabilisation under the Price Law, a draft of a new decree regarding oil and petroleum business will stipulate that enterprises decide their retail prices of petrol and oil.

Phan Văn Chinh, director of the Domestic Market Department, Ministry of Industry and Trade (MoIT), spoke at a meeting collecting opinions on this draft held in Hà Nội on May 14 by MoIT and the Việt Nam Chamber of Commerce and Industry (VCCI).

Chinh said that the oil and petroleum business decrees have been amended and supplemented many times, so they need to be merged into a new decree to make it easier for businesses, people and State management agencies to research and implement.

The new decree will replace the existing decrees relating to oil and petroleum business such as Decree No. 83/2014/NĐ-CP, Decree No 95/2021/NĐ-CP, and Decree No 80/2023/NĐ-CP.

The draft is built on the principle of ensuring harmony of benefits for consumers and petroleum businesses, and ensuring petroleum supply for domestic consumption. At the same time, it reduces the State's intervention in the oil and petroleum business activities of the enterprises.

Chinh emphasised four main contents in the draft including oil and petrol supply system, oil and petrol selling prices, the price stabilisation fund for those products, and the rights of businesses.

According to current regulations, the oil and petrol prices are managed by MoIT and the Ministry of Finance. The petrol and oil traders fix retail prices of petrol and oil in their distribution system based on the basic prices announced by the two ministries.

With the current price management mechanism, the oil and petrol traders are not proactive in deciding the retail prices of the products in their distribution system.

Trịnh Quang Khanh, permanent deputy chairman of the Việt Nam Petroleum Association (VINPA), believes that businesses should have rights to decide their retail prices.

"When the enterprises decide the retail prices, the domestic market will have competitive petrol and oil prices, so consumers will have many choices when buying the fuels," Khanh emphasised.

He also proposed that the ministry remove non-specific conditions in the petroleum business to create favourable conditions for the enterprises.

In this draft, MoIT also proposed that distributors could only buy goods from major wholesalers and not from other distributors to avoid illegal trading.

Hoàng Trung Dũng, deputy general director of Additivies and Petroleum Products JSC, said that regulation will limit the enterprises' business rights.

On the other hand, Dũng said, the main traders are permitted to import from many sources and also each other, but the distributors do not.

"This makes it difficult for the distributors, like in 2022, when there was a shortage of gasoline supply from major traders, we could not find alternative sources," he said.

Sharing the same opinion, Văn Tấn Phụng, chairman of Đồng Nai Petroleum Company, also said that not allowing distributors to buy from each other is not appropriate. This regulation does not encourage businesses to develop.

At the conference, economic expert Ngô Trí Long said that the petroleum price stabilisation fund is no longer necessary like in the previous period, so it is necessary to study the abolition of this fund.

The abolition of this fund also received the approval of many experts and businesses.

As the domestic petrol prices are also going parallel with the world market, the removal of the petrol price stabilisation fund should be considered, he said, adding that in recent times, the fund has proved not to work as efficiently as it should.

Major Ninh Binh hotel project stagnant

Progress on a five-star hotel and resort project in the northern province of Ninh Binh has been slow for the past 15 years.

The Tam Coc- Bich Dong Hotel and Resort project in the northern province of Ninh Binh has been slow for the past 15 years.

The Tam Coc-Bich Dong Hotel and Resort project started construction in 2009, becoming the first built in the famous Tam Coc-Bich Dong tourism site area.

However, the project's 20 construction works, including the hotel and resort buildings and a commercial centre designed to serve up to two million visitors annually, still need to be completed.

Yet despite the lack of progress, the investor, the Quang Trung Mechanical Engineering Company, has been approved to expand the project scale from 65,000 square metres to 80,000 square metres, with total investment of over VND3.80 trillion.

The Ninh Binh Provincial Department of Planning and Investment has agreed to complete the project by 2025.

Many residents have complained about their lives being badly affected by the slow pace of construction.

VietFood & Beverage – ProPack Vietnam 2024 to be held in August

The 28th International VietFood, Beverage and Professional Packing Machines Expo (VietFood & Beverage – ProPack Vietnam 2024) will take place in HCM City from August 8-10.

Covering an area of 36,000sq.m, this year’s exhibition is 40 per cent bigger compared to previous years with 1,200 booths and space for 900 businesses from 20 nations and territories, according to a representative from organiser Vinexad.

A wide range of products will be on display, including food, beverages, nutritional supplements, seafood, as well as machinery and equipment for food production, packaging and preservation. The exhibition is expected to welcome more than 25,000 visitors.

Notably, renowned Vietnamese chefs, including Luke Nguyễn, Trần Vĩnh, and Liêu Phi Yến will bring eye-watering culinary performances, paying hommage to the unique taste of Việt Nam.

Last year, the exhibition was attended by more than 17,000 commercial visitors, most of whom were owners of domestic food and beverage production businesses, importers, distributors and retailers and restaurant/hotel owners, along with 8,000 shoppers.

According to iPOS.vn, a company specialising in manufacturing and trading professional and modern software and hardware solutions in the F&B industry, the market value of this industry in Việt Nam this year is expected to increase by 10.92 per cent from 2023 to surpass VNĐ655 trillion (US$25.7 billion). 

Rooftop solar power in production: an important solution towards net zero

Rooftop solar power is an important solution for manufacturers to 'greenise' production, earn competitive advantages and optimise efficiency towards meeting net zero goals, experts have said.

According to Hoàng Quang Phòng, Vice Chairman of the Việt Nam Chamber of Commerce and Industry (VCCI), rooftop solar power systems could help businesses maintain a stable source of power for production, as well as reduce production costs.

Việt Nam has participated in 19 bilateral and multilateral free trade agreements (FTAs), providing significant opportunities for the country to participate in global supply chains.

So rooftop solar power is a clear trend in the international integration progress towards green production, Phòng added.

However, the installment and use of rooftop solar power in industrial zones remains sluggish due to the lack of detailed regulations and incentives which could encourage investments.

Nguyễn Anh Thu, Vice Principal of University of Economics and Business - Vietnam National University, said that the eighth national power development plan (PDP8) currently only encourages the development of rooftop solar for households and offices, while the installation of this type of energy is not being encouraged for large electricity users like manufacturers.

Rooftop solar power is a proven way of reducing production costs, Thu said, adding that the sector needs a policy rethink to promote the development of rooftop solar power. The focus should be on improving the legal framework, as well as policies to encourage investments.

Trương Văn Cẩm, Deputy Chairman of the Vietnam Textile and Apparel Association, said rooftop solar power would be a good fit for industrial parks, would help reduce greenhouse gas emissions, save energy and promote the transition towards sustainability.

However, there is a lack of mechanisms for installing rooftop solar power at industrial parks is deterring investments. 

Construction and real estate businesses seek capital from shareholders to settle debts

Construction and real estate businesses are seeking capital from existing shareholders to settle debts, as part of their strategies.

During this year's shareholders' meeting season, numerous construction and real estate companies are planning to raise capital by issuing additional shares.

They are considering share issuance as a means to raise funds for debt restructuring and debt repayment. In addition to private offerings, the majority of these businesses aim to mobilise capital from existing shareholders.

Manufacturing enterprises are also calling upon shareholders to contribute capital for production expansion and project investment.

For instance, Construction Joint Stock Company 47 (C47) plans to offer 30 million shares to its existing shareholders at a ratio of 100:82.5, with each share priced at VNĐ10,000. The expected proceeds of VNĐ300 billion will be utilised by the company to settle debts.

In 2023, slow disbursement by investors in some C47 projects necessitated borrowing from banks to invest in machinery and equipment. As of the end of 2023, C47's liabilities amounted to VNĐ1.3 trillion, three times its equity (VNĐ437 billion), including over VNĐ706 billion in debt. The company's loan interest expenses reached nearly VNĐ67 billion, representing a 32 per cent increase compared to 2022.

Similarly, Bà Rịa-Vũng Tàu Housing Development Joint Stock Company (HDC) announced its plan to offer nearly 20 million shares to existing shareholders at VNĐ15,000 per share. The entire expected amount of VNĐ300 billion from the offering will be used by HDC to repay the principal and interest of eight credit contracts, including payments to BIDV (VNĐ75 billion), PG Bank (VNĐ91 billion), TPBank (VNĐ54 billion), and Vietcombank (VNĐ80 billion).

Vietnam Construction and Import-Export Joint Stock Corporation (Vinaconex - VCG) is also planning to offer a maximum of 119.7 million shares, equivalent to 20 per cent of outstanding shares, to existing shareholders at VNĐ10,500 per share. The anticipated proceeds of VNĐ1.2 trillion will be used by Vinaconex to settle outstanding debts, including those owed to banks, credit institutions, contractors, and suppliers in 2024 and 2025.

By the end of 2023, Vinaconex's total liabilities amounted to VNĐ20.45 trillion, accounting for 67 per cent of its total capital. Among these liabilities, the total loan balance was VNĐ11.1 trillion, including VNĐ4.96 trillion in long-term loans, primarily from banks, and a portion of bond balance due in June 2024 (VNĐ1.6 trillion).

Hải Phát Investment Joint Stock Company (HPX) aims to mobilise VNĐ3 trillion to restructure loans and settle outstanding debts. The company plans to offer 159.69 million shares to existing shareholders and 140.3 million shares to strategic investors, both priced at VNĐ10,000 per share.

As of December 31, 2023, Hải Phát Invest had total debts amounting to VNĐ2.46 trillion, equivalent to 68.7 per cent of its equity. Of this amount, short-term debt stood at VNĐ1.8 trillion, while long-term debt was VNĐ637 billion.

Additionally, Siba High-Tech Mechanical Group Joint Stock Company (SBG), a newcomer on the HOSE, announced its plan to offer 11.5 million shares to existing shareholders at a ratio of 100:46, priced at VNĐ10,000 per share. The intended capital of VNĐ115 billion will be used to settle debts owed to its supplier – BIVC International Agricultural Products Joint Stock Company.

Raising equity capital will assist businesses in fulfilling payment obligations, improving financial health, and reducing interest costs. However, investors should carefully evaluate the long-term growth potential of these businesses after debt repayment, as well as their capacity to provide cash dividends.

In the aforementioned cases, C47 and Siba Group do not plan to pay dividends in 2023. On the other hand, Hải Phát Invest and HDC intend to pay dividends in the form of shares at rates of 5 per cent and 15 per cent, respectively (with Hải Phát Invest offering shares after dividend payment).

Explore 400 handicraft models at Hanoi's specialized exhibition

Visitors can explore a space showcasing handicrafts, One Commune One Product (OCOP) products, and exemplary rural industrial manufactures, ceramics, and lacquerware at the specialized exhibition held in Hanoi in May.

This is the first event in a series of specialized exhibitions highlighting handicraft products, OCOP, and exemplary rural industrial goods in 2024.

The exhibition will be held in May at the city's OCOP products, display and sales showroom at 176 Quang Trung Street, Ha Dong District.

In an area of about 500m2, the exhibition displays over 400 models of handicraft products and others from craft villages.

At the exhibition, artisans and traders have the opportunity to learn, share production and distribution experiences, design and promote outstanding products.

Speaking at the opening ceremony on May 13, Hoang Minh Lam, Director of the Industrial Development Consultancy and Development Center, said that the exhibition will offer enterprises and rural industrial production units in the city's handicraft sector an opportunity to acquire design knowledge and translate it into tangible product creations.

From these designs, local businesses can develop new products that meet market demands, he added.

Businesses urged to go green, participate in carbon credit market

Businesses need to have solutions and roadmaps to improve their competitiveness and innovate technology for green and sustainable production, thereby creating carbon credits, according to experts.

Global carbon credit market has been vibrant in the past few years and many businesses and organisations in Việt Nam are interested in buying and selling carbon credits, said Dr. Nguyễn Phương Nam, a UN’s greenhouse gas inventories review expert and general director of KLINOVA Climate Innovation Consulting and Services JSC, at an Entrepreneurs' Café event organised by the HCM City Union of Business Associations in HCM City late last week.

However, the country does not have specific greenhouse gas emission quotas for enterprises, who therefore do not know whether they are required to buy or could sell carbon credits, Nam said.

Under its roadmap for developing the carbon market, Việt Nam will trial a carbon credit exchange from 2025 and officially operate it from 2028, linking it with the regional and global markets.

Nam said that while waiting for the legal framework to be completed, businesses must prepare now to create carbon credits and be ready to enter in the market.

The world has recognised that Việt Nam has great potential in generating carbon credits, especially from forests, agriculture and energy. Many Vietnamese businesses also have the potential to reduce greenhouse gas emissions, but to be able to create carbon credits, they are required to have a vision for sustainability, invest in clean technology and prepare for the shift to green and sustainable supply chains, he said.

The results of carbon credits could not be achieved overnight and could take at least three years and need great determination from business chiefs, Nam warned.

First of all, businesses are required to register their projects with environmental authorities. They must conduct assessments of their current emission status and make a greenhouse gas inventory as accurately and transparently as possible, and, on that basis, government and specialised agencies would allocate emissions quotas for them.

From that, businesses would know whether they have surplus carbon credits to sell or need to buy to cover their shortfall, he said.

According to speakers at the event, 1,912 businesses in the country with significant emissions are required to conduct greenhouse gas inventories and will soon be subject to emission reduction quotas.

In HCM City, Cao Tung Sơn, head of the Department of Hydrometeorology and Climate Change under the city's Department of Natural Resources and Environment, said there are 140 enterprises in the city required to conduct emission inventories.

He disclosed that following instructions from the Ministry of Natural Resources and Environment, the city has conducted a review and identified an additional 131 enterprises that are required to inventory their emissions.

His department would provide training to businesses on greenhouse gas inventorying, as well as organise seminars, meeting with businesses and invite experts to provide them with the latest information on legal regulations related to the carbon credit market, he said.

Nguyễn Ngọc Hòa, chairman of the HCM City Union of Business Associations, said the city's businesses have the potential, advantages and opportunities to participate in the carbon credit market, but they first need to improve competitiveness and technology for green and sustainable production. 

Data collected on more than 300 companies that own e-commerce platforms

The Hà Nội Tax Department has built a database of over 320 companies that own e-commerce platforms.

The trend of converting from traditional business to digital platforms is becoming increasingly popular and is considered an effective solution to help organisations and individuals expand and develop production and business activities, said Vũ Mạnh Cường, director of the Hà Nội Tax Department.

The municipal tax department has proactively implemented tax management solutions for this activity and is one of the leading units nationwide in successfully implementing the Government's Project 06 on developing applications for data on population, identification and electronic authentication.

To date, the data matching rate with the Ministry of Public Security (MPS) has reached over 92 per cent, Cường said.

The tax authority has focused on tax management for e-commerce activities towards digitalisation from the end of last year and early this year.

Identification and positioning of organisations and individuals, data information about transactions and e-commerce business objects are updated regularly and continuously.

The tax department is the first unit to match information between citizen identification cards of individuals doing business on e-commerce platforms with tax codes and has built a database of information on bank accounts, revenues, tax rates and cash flows of organisations and individuals that generate income from e-commerce business activities, correctly determining the taxpayer's obligations.

To prevent budget revenue loss from e-commerce business activities, right from the beginning of the year, the Hà Nội Tax Department has developed an inspection plan for e-commerce topics in 2024 for a total of 2,342 organisations and individuals.

Initial results, the tax department has reviewed and made decisions and notified 1,749 organisations and individuals according to the inspection process.

More than 900 organisations and individuals have been handled. As a result, revenue increased by VNĐ104 billion (US$4.25 million), deductions reduced by VNĐ43 billion, and losses decreased by VNĐ59 billion. 

EVN to have limited role in direct power purchase agreement mechanism

The government would set up a marketplace for direct electricity transactions between sellers and buyers, with the Vietnam Electricity (EVN) solely responsible for operating the system and ensuring the safety of the power grid.

EVN’s Chairman of the Board Dang Hoang An made the comments during a meeting with Deputy Prime Minister Tran Hong Ha on May 14 to discuss the draft direct power purchase agreement (DPPA).

In the draft decree on the DPPA mechanism, the Ministry of Industry and Trade (MoIT) has developed this model through two options: using private transmission lines or the national grid (i.e., through EVN). The supply source includes renewable energy plants (wind, solar) with a capacity above 10 MW if connected to the grid, or with no capacity limit if using private transmission lines.

The draft specifies that buyers in both scenarios must be organizations or individuals using electricity for production at a voltage level of 22 kV or higher, with an average monthly consumption of 500,000 kWh. Smaller users, such as small manufacturing enterprises or households, are not yet eligible for direct purchase.

At the meeting, EVN Chairman Dang Hoang An said that direct transmission of electricity from sellers to buyers is possible, with both operating and transmission costs being paid to EVN, the grid operator.

Deputy Prime Minister Tran Hong Ha noted that the DPPA has been identified in the Electricity Law as a foundation for developing a competitive electricity market. However, progress has been slow due to inconsistent legal frameworks and specific organizational and implementation conditions. State-owned enterprises have played a dominant role in providing energy for economic and social development, making it difficult for other parties to participate in the commercialization of electricity.

"Government management should be separated from the production, business, transmission, and distribution of electricity," said Ha, adding that the State should only invest in areas that ensure national energy security, while enterprises should compete on an equal footing, regardless of whether they are state-owned or private.

He also tasked the regulatory body with developing a specific and feasible roadmap for power sector development, including the DPPA mechanism.

Foreign-invested enterprises have repeatedly requested that Vietnam pilot the DPPA mechanism soon, as they believe it will have a positive impact on competition in the energy sector. Major corporations such as Samsung, Heineken, and Nike, which have an average monthly electricity consumption exceeding 1,000,000 kWh, have shown interest in participating.

A survey by the MoITt at the end of last year indicated that about 20 large companies want to buy electricity directly, with a total demand of nearly 1,000 MW. Additionally, 24 renewable energy projects with a capacity of 1,773 MW want to sell electricity through the DPPA mechanism, and 17 projects with a capacity of 2,836 MW are considering participating in the mechanism.

At the meeting, representatives from associations and foreign businesses expressed their desire for the decree to be issued soon, with policies in line with the Power Development Plan VIII (PDP8) on renewable energy development. They suggested removing consumption limits for customers using private transmission lines and clarifying the costs of direct electricity purchases from the national grid.

In conclusion, Deputy Prime Minister Ha emphasized that there could be no capacity limit for direct power purchases using private transmission lines or additional energy storage systems, regardless of planning. These projects would only need to comply with tax, environmental, fire, and construction safety regulations.

For direct purchases through the national grid, all infrastructure operating and transmission costs must be accurately accounted for to ensure system safety and alignment with power planning, Ha noted.

He called for the DPPA decree to clearly define stakeholders, their rights, and responsibilities in terms of economic benefits and grid safety. Policies should prioritize and encourage enterprises using green, renewable energy to obtain green credits.

The MoIT and EVN are instructed to calculate and publish the capacity of renewable energy that can be purchased and transmitted according to the baseline power capacity, which will serve as the basis for adjusting the reduction of coal and gas power sources in the planning.

"The PDP VIII does not limit renewable energy if it meets the criteria for replacing other energy sources at a reasonable cost," he said. Furthermore, the decree should establish a protocol for the publication of the types of energy sources used by companies to facilitate the monitoring and granting of green credits by regulatory bodies.

Vietnam to step up effort against gold smuggling

Vietnam’s tax and customs authorities have been instructed to step up surveillance to crack down on gold smuggling and illegal gold shipments into Vietnam.

Finance Minister Ho Duc Phoc issued an urgent directive to the tax and customs sectors on May 14.

Since the beginning of the year, the government has issued several instructions to strengthen the management of the gold market, but the price of this commodity has continued to rise, with significant discrepancies compared to global prices.

Gold smuggling has become increasingly complex, according to a report by the National Assembly’s Economic Committee. There are even indications that a large, complex, and difficult-to-control underground market for gold and foreign exchange transactions has long existed outside the State's control and statistics.

The smuggling of precious metals also contributes to an increase in crime and public order instability and affects monetary security, according to the Ministry of Public Security.

In the directive, Phoc urged the tax and customs sectors to intensify management to curb gold smuggling and illegal trading. He instructed customs authorities to work with police, border guards, and market surveillance to investigate and tackle major smuggling cases involving gold and foreign exchange.

The General Department of Taxation and local authorities are also to step up inspections of electronic invoicing at gold stores. Cases with signs of criminal violations are to be referred to the police by the tax and customs authorities.

Last week, the price of SJC gold bars reached a record high of VND92 million ($3,614) per tael but cooled down to below VND90 million ($3,535) following regulatory directives. However, the price spread over the global market remains high, around VND17 million ($668) per tael.

On the same day, Deputy Prime Minister Le Minh Khai issued an order calling for an immediate inspection of gold trading activities this week.

At a session of the National Assembly's Standing Committee on May 13, government members expressed their deep concerns about the gold market issue. A major challenge in managing the market is that people do not usually ask for invoices when purchasing gold, and businesses often neglect to issue invoices for each transaction.

Deputy Prime Minister Khai emphasized the need for a comprehensive approach involving several ministries and agencies and stressed the importance of carefully assessing and addressing the root of the problem.

Huge capital currently out of reach for steel transition

The domestic steel industry may find it very hard to transition towards climate-friendly production due to capital shortages, energy-related issues, and struggles to meet the EU’s new technical requirements.

Le Quan, deputy general director of a state-owned steel making company, told a discussion on decarbonising the Vietnamese steel industry held last week by the German Embassy to Vietnam that it would be “impossible” for the industry to become decarbonised at least within a decade.

“I would say that we can never decarbonise steel making plants now due to so many obstructions,” Quan said. “The obstructions are about capital, high technologies, and especially the difficult shift to other types of energy used for heating furnaces.”

According to Cécile Seguineaud, an industry policy analyst at Clean Energy Finance and Investment Mobilisation under the Organisation for Economic Co-operation and Development, 90 per cent of steel produced globally comes from nations that have made commitments on net-zero emissions by 2050. About 30 per cent of global steelmakers have also committed to achieve net-zero emissions.

“However, the volume of steel really produced by high technologies under net-zero commitments in the global market accounts for only 1 per cent,” Seguineaud said. “Now it may need about $1.5 trillion to decarbonise the global steel industry – quite a huge volume of capital.”

Meanwhile in Vietnam, there is no specific strategy on steel industry development available, not to mention the total capital needed for the domestic steel industry to decarbonise itself.

“It is now quite difficult to manage steel projects in terms of emissions and outputs,” said Chu Hoang Duc Anh, a representative from the Vietnam Industry Agency under the Ministry of Industry and Trade (MoIT). “Almost all steel projects in Vietnam now don’t use modern technologies, with coal used as input for heating the plants, causing environmental pollution.”

According to the MoIT, as the steel industry is of great importance to a wide range of other industrial sectors including construction, manufacturing, mobility, and infrastructure, steel production is projected to grow, continuing to be of great economic and developmental significance, particularly in emerging economies. Last year, the industry produced 19.2 million tonnes of raw steel and 27.76 million tonnes of fished products.

As Vietnam ranks 13th among the largest crude steel producers and leads ASEAN in both production and consumption of steel products, the industry remains one of the main contributors to the country’s carbon emissions.

It is estimated that the industry will emit about 122.5 million tonnes of CO2 by 2025 from an estimated 120 million last year, and 132.9 million by 2030, accounting for about 17 per cent of the country’s total emissions.

“The biggest impediments now for the industry is to change heating materials, meaning changing from coal to other types of environmental-friendly energy such as hydrogen,” said Prof. Dr. Bui Anh Hoa, head of the School of Materials Science and Engineering under the Hanoi University of Science and Technology. “Meanwhile, production of hydrogen energy remains limited in Vietnam due to high costs and high technologies used. Thus it is almost impossible for the industry to become carbon-neutral over the next decades.”

Jennifer Pham, regional advisor on sustainable value chains at the Danish Embassy to Vietnam, underlined that if the Vietnamese steel industry fails to become decarbonised, it would be hard to boost export steel products in the long term to the EU, which is now applying the Carbon Border Adjustment Mechanism (CBAM).

“The CBAM will impact on goods prices and may reduce the competitiveness of products,” Pham said. “That’s why exporters must have full understanding about it.”

Figures from the General Department of Vietnam Customs showed that last year, Vietnam exported more than 2.5 million tonnes of assorted steel products to the EU, doubling 2022, and accounting for 23 per cent of the country’s total export volume.

However, from mid-2023, exports to the EU market faced two major barriers: safeguard measures and the CBAM.

The CBAM aims to levy a carbon tax on all goods imported into EU markets, based on the intensity of greenhouse gas emissions in the host country’s production process.

Currently, this mechanism is in phase 1 when exporters, including steel ones, have to declare emission levels. Nevertheless, when the mechanism embarks upon the next stage, steel firms in Vietnam will have to buy CBAM emission certificates from 2026.

“This will drive production costs up and reduce competitiveness if manufacturers fail to cut down emissions during production activities,” said Pham Cong Thao, deputy general director of Vietnam Steel Corporation (VNSteel).

VNSteel reported that in Q1, its consumption of finished steel products reached over 724,500 tonnes, up 9 per cent on-year. In March alone, the figure hit more than 243,100 tonnes, including long shaft steel standing at 143,700 tonnes, cold-rolled steel sitting at 70,700 tonnes, and coated sheets at 28,600 tonnes.

According to the MoIT’s Vietnam Institute of Strategy and Policy for Industry and Trade, under the impact of the CBAM, the Vietnamese steel industry is anticipating a roughly 4 per cent reduction in its export value, leading to a decrease in output of around 0.8 per cent, coupled with the adverse effects of reduced competitiveness.

The Vietnam Steel Association forecasted that the steel industry is likely to recover weakly in 2024 due to outstanding difficulties in the real estate market. Steel consumption is forecast to increase by 7 per cent to 21.7 million tonnes, and output could reach nearly 29 million tonnes, up 7 per cent from 2023.

Vietnam automaker VinFast receives 27,649 VF3 reservations

VinFast has created quite a stir with its VF 3 model, garnering an astounding 27,649 registration applications within just 66 hours of opening early deposits.

This unprecedented feat not only sets a new record in the automotive market but also reflects the incredible appeal of the VF 3, which is being hailed as a potential "national car model" in Việt Nam.

One of the key factors driving this immense interest is the competitive pricing offered by VinFast. With prices starting at only VNĐ235 million (with battery rental) or VNĐ315 million (battery included), the VF 3 presents an attractive option for consumers. This pricing strategy, coupled with the inability to refund or transfer orders, has solidified the VF 3's status as a highly sought-after vehicle.

Furthermore, VinFast's commitment to quality is evident in its warranty policy, which offers an impressive 7-year or 160,000 km warranty for the vehicle (whichever comes first) and an 8-year warranty with unlimited kilometers for the battery. Such assurances undoubtedly add to the appeal of the VF 3 for prospective buyers.

With the first deliveries expected to commence in August 2024 and a minimum of 20,000 cars slated for delivery this year, VinFast seems poised for continued success with its VF 3 model. 

HCM City to complete 183km of metro routes by 2035

HCM City is striving to complete about 183 kilometres of six metro routes by 2035.

The municipal People's Committee Chairman Phan Văn Mãi chaired a meeting to listen to a report on the city’s urban railway system development project.

The meeting collected opinions from experts of relevant departments and units in accordance with the Politburo's Conclusion No. 49-KL/TW on the development orientation of Việt Nam's railway transport by 2030 with a vision to 2045.

Speaking at the event, Director of the city’s Department of Transport Trần Quang Lâm said the department, in coordination with relevant departments, has created a project to develop the urban railway network in the city by 2035.

Accordingly, the city will complete an additional 168.4km, raising the total length of the six metro routes to more than 351km by 2045.

New routes will be added to the city's master plan to 2040 with a vision to 2060.

By 2060, the city will finish metro lines No. 8, 9, and 10, raising the total length of metro routes to more than 510km. The estimated total investment will be VNĐ824.5 trillion (US$32.3 billion).

Most experts said that the projects need to focus on clarifying investment forms and funding sources, and mobilising financial resources, breakthrough mechanisms and new special policies. Resolution No. 98 is designed to empower the city's development and mechanisms for land recovery, especially financial mechanisms to achieve the project's highest goals, while defining transit-oriented development (TOD) model.

The Department of Transport was asked to collect opinions and send them to the municipal People's Committee on May 15 before submitting them to the Ministry of Transport.

The city’s Department of Planning and Investment is responsible for reviewing and updating the plans synchronously in accordance with the city's general planning.

Meanwhile, the city’s Department of Natural Resources and Environment is assigned to provide specific documents on mechanisms and plans for land recovery and site clearance.

The Department of Finance will conduct detailed research on mechanisms for funding sources and issues related to funding sources.

The city will propose the Government and the National Assembly issue decrees and resolutions to grant authority to the city to carry out the projects. 

Long Son Petrochemicals expected to start commercial operations in August

The Long Son Petrochemicals (LSP) complex, which is wholly owned by SCG Chemicals Public Company Limited (SCGC) under SCG, is expected to commence commercial operations in August.

According to SCG’s first quarter performance review, the LSP complex safely and successfully had its first test run from January to February 2024. However, due to technical difficulties, the complex was shut down from March-June.

The complex has undergone maintenance and modification, and operating standards and practices have been strengthened. LSP is expected to restart in July, with the final test run and commercial operation date in August.

On March 22, SCG also announced that LSP’s downstream plants (high-density polyethylene, linear low-density polyethylene, and polypropylene) and utilities had passed their test run inspections in December 2023. Following this, the complex-wide test run, which includes the Olefins downstream and upstream plants, was implemented.

After the unexpected technical difficulty was identified, it was estimated that LSP would resume the test run in June 2024. Furthermore, Rayong Olefins Co., Ltd.'s plant resumed operations after maintenance at the end of March 2024, which minimised the impact on clients.

The total project cost of LSP is approximately $5.4 billion. As the first integrated petrochemicals project in Vietnam, the LSP project has an area of about 464 hectares and an additional 194ha of waterfront for a deep-water sea port.

When put into operation, the complex is anticipated to annually produce about 1.4 million tonnes of plastic pellets, an input material used to produce a range of plastic products used in everyday life.

According to LSP leaders, nearly 1,000 Vietnamese employees are expected to work at the petrochemical complex, which will generate about $1.5 billion in revenue next year.

Consumer confidence in economic recovery reaches five-quarter high

Fuelled by a positive economic outlook, consumer confidence in Vietnam's economic progress has rebounded to its highest level in over a year, according to a report by Kantar Worldpanel Vietnam.

Vietnam's GDP expanded by a healthy 5.66 per cent in the first quarter of 2024, marking the strongest first-quarter growth since 2020. While slower than the previous quarter's 6.7 per cent growth, this momentum indicates the country is on track to achieve its 2024 economic targets.

The report also reveals that as the underlying economic outlook remains positive, consumer confidence in an economic recovery has reached a five-quarter high. While concerns about household incomes have eased, worries about rising living costs, particularly due to the proposed electricity price increases, have emerged.

Despite improved consumer confidence, the first quarter of 2024 witnessed a subdued performance in take-home fast-moving consumer goods (FMCG) despite a boost from the Tet 2024 (Lunar New Year) holiday. Both urban and rural areas experienced a decline in FMCG volume during the first quarter of 2024, leading to an overall value setback in total FMCG despite slowing grocery inflation. This decline was primarily driven by the food and beverage sectors, with stricter enforcement of legislation on driving under the influence significantly impacting alcoholic purchases.

The decline in alcoholic beverage sales accounted for 30 per cent of FMCG loss, followed by dairy and packaged foods. Conversely, personal care and cooking aids witnessed growth in the festive season.

In addition, online gained significant short-term retail value share in the first quarter of 2024, and is steadily growing in the long term, positioning itself to be the future driver of FMCG expansion. In rural areas, large provisions stores and specialty stores have been growing in prominence over the years.

While FMCG value during the eight-week period around Tet 2024 declined compared to the previous year, it still surpassed the peak of the 2019-2022 period. Notably, a significant portion of this decline can be attributed to reduced beer value in both urban and rural markets during the festive season.

Việt Nam promotes agricultural cooperation with partners, countries

Technical barriers, support to promote export markets and attracting green investment were the main discussion topics at a working session on May 13 organised by the Ministry of Agriculture and Rural Development with the participation of 12 agricultural counsellors from various countries and national groups.

Nguyễn Hoài Nam, Deputy Secretary General of the Vietnam Association of Seafood Exporters and Producers (VASEP), affirmed that promoting export trade was a top priority to boost the domestic market. In recent times, VASEP has made many efforts to increase trade with businesses in other countries by improving co-operation and trade connections between the two sides.

According to Nam, in recent times, Việt Nam in general and the seafood industry business community in particular have made great efforts in building quality management teams to meet market requirements. Việt Nam’s export products are present in more than 160 countries and territories worldwide.

“The fact that we maintain regular export activities into very demanding markets such as the EU or the United States proves the quality of Vietnamese seafood. We do what is necessary to obtain sustainability and environmental responsibility certifications from markets,” said the VASEP representative.

“However, many markets are currently concerned about controlling antibiotic use in aquaculture. Therefore, Việt Nam’s seafood business community calls for technical support from countries in addition to the requirements set out by partners,” stressed Nam.

Nam cited that Việt Nam has imported a lot of tuna from New Zealand. Recently, Việt Nam has made great efforts to meet New Zealand's new requirements. However, New Zealand has a separate agreement with the EU on food safety. This causes Vietnamese seafood businesses to have problems with Health Certificates, so Việt Nam needs additional support from New Zealand to be able to discuss with the EU and the Ministry of Agriculture and Rural Development so that these product lines no longer have problems related to regulations.

“Timely technical support will greatly support seafood trade issues,” stressed Nam.

Regarding the issue of removing the IUU "yellow card", Nam said that the Government, ministries, and business community have made great efforts in this, and look forward to the EU's recognition.

Regarding the coffee industry, a representative of the Vietnam Coffee and Cocoa Association said that the Regulation on Deforestation Free Products (EUDR) caused difficulties for Vietnamese coffee export businesses, in the context of strongly fluctuating coffee prices. The association proposed to provide guidance and support to create favourable conditions for exporting coffee to the EU market.

Meanwhile, with the wood industry, Vice President and General Secretary of the Vietnam Wood and Forest Products Association Ngô Sỹ Hoài said that Việt Nam's wood processing and wood export industry has many advantages. Accordingly, along with highly skilled labour, Việt Nam uses legally imported wood and an abundant supply of domestically grown wood to produce traceable products.

On the other hand, Vietnamese product designs are also integrated, meeting the needs of the world. Therefore, Hoài said, the wood industry community wants and is ready to cooperate with partners to expand the market for this product line.

According to Director of the Department of International Cooperation under the Ministry of Agriculture and Rural Development Nguyễn Đỗ Anh Tuấn, Việt Nam's agricultural industry recorded export turnover of more than US$53 million in 2023. Việt Nam also is a large exporter of agricultural, forestry and fishery products with steady growth. With the export scale doubling over the past 10 years, in the coming time, Việt Nam will promote agricultural exports in many markets around the world.

Speaking at the event, Agricultural Attaché of the Brazilian Embassy Juliano Vieira said that Brazil shared common difficulties with Việt Nam in the context of a growing population, changing habits, and changing consumer needs.

“Therefore, Việt Nam and Brazil can share solutions to overcome challenges together. We do not copy solutions but find directions suitable to the characteristics of each country to reduce emissions, reaching the goal of net zero emissions in the near future,” said Vieira.

Vieira suggested that countries cannot alone find solutions for sustainable development but need to support and co-operate with each other.

“No matter what industry, what field, or what country, today the common denominator for all is green, sustainable growth with requirements such as food safety, traceability and geographical indications,” said Minister of Agriculture and Rural Development Lê Minh Hoan at the event.

Hoan also suggested prioritising the development of smallholder farmers, especially in countries with similar conditions to Việt Nam.

“Việt Nam needs technical advice and resource support from other countries to realise the potential and opportunities for agricultural co-operation in the coming time,” added Hoan. 

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