Recent positive developments in exchange rates and the price of oil have improved investor sentiment, with strong capital inflows into the domestic stock market driving benchmark indices higher, said insiders. 

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index closed last week at 1,273.1 points and the HNX-Index on the Hà Nội Stock Exchange (HNX) was last traded at 241.5 points. 

Over the week, the former was bullish, soaring 2.3 per cent while the latter climbed by 2.5 per cent. 

The liquidity was up slightly, with the trading value of the whole market reaching VNĐ20.1 trillion per session (US$790.3 million), marking a 1.9 per cent gain from the previous week. 

Foreign investors continued to be net sellers, with a total net selling value of nearly VNĐ2.5 trillion across the market. 

They sold to a net value of over VNĐ2.1 trillion on HOSE, but made a net purchase of VNĐ36 billion on HNX.

VNDirect Securities Corporation said that the market had been supported by positive news. 

After weaker-than-expected CPI results for April in the US, the US stock market reached new record levels. The US Dollar Index (DXY), pitting the greenback's strength against a basket of six major currencies and government bond yields also experienced corrections, boosting hopes that there might be a Federal Reserve rate cut at the September meeting. 

This development would help ease some pressure on domestic exchange rates.

The central exchange rate and USD buying/selling rates at commercial banks recently declined. Additionally, a significant drop in domestic pump prices, with a decline of over 8 per cent in one month, would help cool down inflationary pressures. 

All the positive news lifted the domestic benchmark indices, VNDirect said. 

According to experts from Mirae Asset Securities Company (Vietnam), the VN-Index's four consecutive days of growth last week indicated a prevailing upward trend. 

The securities firm believes this trend will continue for the next 1-2 sessions, potentially pushing the index towards the 1,280 point-level this week. 

However, it also warned that the range of 1,275-1,280 points represented a strong resistance level that investors needed to be mindful of over upcoming sessions.

Meanwhile, Viet Dragon Securities Corporation (VDSC) noted that despite profit-taking pressure in the last session of the week, the market had maintained its upward trajectory. Increased trading volume compared to the previous session suggested a rise in profit-taking activities. 

Nevertheless, there was still a strong inflow of capital, supporting and cushioning the selling pressure.

Given signs that it would overcome profit-taking pressures, the market would have the opportunity to surpass the resistance level at 1,277 points and extend its recovery in the coming sessions. 

However, the increase in supply and liquidity might lead to conflicts as the market reaches new highs, particularly within the challenging range of 1,280 - 1,300 points.

As a result, investors could expect the market's recovery momentum to gradually expand. 

Enhanced income tax management on stock dividends

The General Department of Taxation has recently issued a directive urging the Tax Departments of provinces and centrally-controlled cities to strengthen the management of personal income tax of existing shareholders receiving stock dividends and payments in the form of bonus shares.

The aim is to ensure that these shareholders fulfil their tax obligations.

Organisations responsible for tax declaration and payment on behalf of individuals must understand their obligation to disclose and pay personal income tax on profits from investment capital when individuals transfer shares of the same type, as per laws.

These organisations include securities companies, commercial banks engaged in securities depository activities, fund management companies and securities issuers.

Their obligations to declare and pay taxes on behalf of individuals commence on January 1, 2023, for income from investment capital resulting from the transfer of shares of the same type.

For individuals who have not yet declared or had taxes declared and paid on their behalf by organisations for shares recorded in securities accounts prior to December 31, 2022, the Tax Department will provide guidance on tax declaration. 

It also notes that the timelines for compliance will follow the provisions stated in the Tax Administration Law.

The General Department of Taxation suggests that tax authorities develop appropriate communication plans to inform individuals receiving stock dividends and organisations handling tax filing on their behalf. 

The department has provided guidelines on declaring and paying personal income tax on stock dividends, which should be shared with relevant organisations and individuals for compliance. 

Companies unveil M&A plans across multiple sectors at shareholders' meetings

The current General Meeting of Shareholders (AGM) season has revealed notable M&A plans by companies, encompassing various industries including agriculture, food, automobile design and real estate.

During The PAN Group Joint Stock Company's AGM at the end of April 2024, Nguyễn Duy Hưng, Chairman of the Board of Directors, shared the company's M&A plan for the next three years.

The PAN Group is seeking business tie ups that align with its three main segments: agriculture, packaged food and seafood. However, at present, no businesses fitting these criteria have been identified.

The PAN Group's transformation from an industrial cleaning services company to a major player in the agricultural-food industry has been facilitated by a series of M&A deals with industry leaders such as Vinaseed, Aquatex Ben Tre, Lafooco, Bibica and Shin Ca, among others.

At the recent 2024 AGM, Trương Gia Bình, Chairman of the Board of Directors of FPT Corporation, expressed ambitions to acquire all companies related to automobile design.

FPT aims to use M&A to expedite the implementation of large contracts, with a particular interest in businesses within the automobile industry.

Bình emphasised the importance of software expertise, understanding the auto industry, and knowledge of security in the current 'confused' state of the global auto industry.

FPT's existing workforce of 4,000 employees in this field provides a solid foundation, but M&A is seen as a means to accelerate progress. FPT's advantage lies in its access to the Japanese market, which is traditionally challenging for foreign companies.

Earlier this year, FPT successfully completed a deal with a Japanese company, Next Advanced Communications (NAC). FPT's future target markets include Korea, Singapore and Europe, expanding upon its previous focus on the US market.

In 2023, FPT executed four M&A deals and invested in technology companies in the US and France, such as Intertec International, Cardinal Peak, AOSIS and Landing AI.

With a people- and technology-centric approach, FPT aims to achieve steady growth, building on its current revenue of US$1 billion from IT services in foreign markets and setting sights on reaching $5-10 billion.

Gelex Group Joint Stock Company, led by Nguyễn Văn Tuấn, General Director, has shifted its focus from quick acquisitions to seeking suitable M&A opportunities. Gelex recognises the importance of building a solid management foundation to achieve long-term success.

The company aims to co-operate with larger partners and engage in M&A deals that align with its capacity, financial strength and human resource capital.

Gelex's business in 2023 saw a turning point as it emphasised collaboration with international partners. The establishment of a joint venture with Frasers to develop industrial parks in the North, with an initial investment of approximately VNĐ6 trillion, is a significant step.

Additionally, Gelex is working with Sembcorp to transfer a portion of its energy segment. The group is focusing on changing management practices, particularly within advantageous subsidiaries like Cadivi, to develop these units, seek opportunities for collaboration with foreign partners and transfer technology for higher-value production areas.

Gelex's strategy includes divesting from the wind power segment, but only partially, as the group seeks suitable partners for future projects. Currently, Gelex's energy investment portfolio comprises nearly 3,500 MW, including wind and solar power.

Thaiholdings Joint Stock Company's leaders view the present as an opportune time to focus on low-cost real estate projects through M&A deals. This year, the company's primary focus will be on financial and real estate investments.

Domestic firms urged review cold rolled stainless steel exports to RoK in case of investigation

The Trade Remedies Authority of Việt Nam under the Ministry of Industry and Trade has urged domestic manufacturers and exporters of cold rolled stainless steel to review their exports to the Republic of Korea (RoK) from 2020 in case of any an anti-dumping investigations.

The authority has learned that the Korean Trade Commission has received a filing requesting an anti-dumping investigation against cold rolled stainless steel originating or imported from Việt Nam.  

The South Korean investigation agency is currently in the process of verifying the request.

Domestic manufacturers and exporters should review their exports of cold rolled stainless steel to the RoK from 2020 to date to get prepared in case the lawsuit is initiated.

Local firms can contact the Trade Remedies Authority of Việt Nam for timely supports. 

Capital increase regulation proposed to ensure safety for credit institutions

Credit institutions, which have a bad debt ratio of the total outstanding loan of more than 3 per cent, will not be allowed to increase capital for their subsidiaries and affiliated companies to ensure the safety of the institutions.

The proposal is under a draft circular of the State Bank of Việt Nam (SBV) amending and supplementing Circular 51/2018/TT-NHNN on conditions and procedures for approval of capital contribution and share purchase of credit institutions.

The draft circular, which has been released for public comments, supplements regulations on conditions for increasing capital at subsidiaries and affiliated companies of credit institutions.

Under the draft circular, to be qualified for capital increase, both credit institutions and their subsidiaries and affiliated companies must meet a number of requirements.

Specifically, for credit institutions in addition to having a bad debt ratio below 3 per cent, they need to ensure the minimum capital adequacy ratio and the ratio of capital contribution and share purchase.

In addition, the actual value of charter capital at the time of capital increase and at the time of completion of the capital increase, must not be lower than the legal capital.

At the same time, credit institutions must be profitable according to the financial statements of the year immediately preceding the year of capital increase.

They should not have any sanctions for administrative violations regarding debt classification, provisioning and use of provisions to handle risks, capital contribution, or share purchase in the 12 months immediately preceding the month of capital increase.

Members and managers of credit institutions need to adhere to all legal regulations and the credit institutions may not have any administrative sanctions in terms of operating.

For subsidiaries and affiliated companies of credit institutions, to be qualified for capital increase, they need to be profitable for three years before increasing capital, or to be profitable from the time of establishment until the capital increase and there is no accumulated loss by the time the credit institutions increase capital.

According to the SBV, the revision of the draft circular will meet existing legal regulations on capital contribution and share purchase and ensure the safety of credit institutions, avoiding cases in which credit institutions increase capital when their subsidiaries and affiliated companies are operating inefficiently. 

Paint and printing ink firms advised to draw up effective business strategies

Paint and ink firms need to draw up effective business strategies to cope with harsh competition in prices and quality from foreign rival companies, trade experts have suggested. 

Vương Bắc Đẩu, deputy chairman of the Việt Nam Paint and Printing Ink Association, said that Việt Nam is one of the potential locations that foreign investors are targeting to move their manufacturing facilities from China, including those in paint and printing ink industries. 

This will not only open up opportunities and challenges for domestic businesses as enterprises in some neighbouring countries such as China will also shift their production bases to Việt Nam, the vice chairman told vnbusiness.vn.

He said that Việt Nam's printing ink firms, especially in the offset printing sector, have been encountering many difficulties due to their dependence on imported raw materials and competitive pressure from other enterprises in the region. 

Competitive pressure comes not only from technology but also from output as foreign competitors have strong financial capacities so domestic enterprises cannot compete, he said. 

Meanwhile, the biggest challenge that enterprises in the wood paint segment are facing is that their scale and production output can not be compared with that of Chinese manufacturers, resulting in their failure to hold a large market share, Đẩu said. 

Phạm Trung Hiếu, Chairman of HF Group JSC in Hà Nội, said that amid fierce competition in the local market, if enterprises increase product prices, they will lose their market share.

Meanwhile, input raw materials are directly affected by the unstable situation in the world. For example, the price of Titanium Dioxide - a white pigment used in over 90 per cent of paint products - has surged from 10-15 per cent while that of acrylic resin - a common ingredient in latex paint - has also increased. 

At the same time, the policy stage should also be more open to help remove difficulties for domestic enterprises in this industry from problems of accessing loans, creating market advantages for key sectors related to the paint and printing ink industry.

In this context, besides the firms' efforts, support from the Government is also necessary, trade experts said.

State's policies should also be more open to help remove difficulties for domestic enterprises in this industry from accessing loans, creating market advantages for key segments related to the paint and printing ink industries.

The painting industry recorded negative growth last year, with output decreasing by 10-35 per cent due to a stagnant property market. The printing ink industry also witnessed a decrease of 10-15 per cent in output last year, Đẩu said.

This year the painting industry has shown signs of recovery thanks to the Government’s efforts to mitigate difficulties in terms of funding and boost the property market, he said, adding that wood paints and industrial paints are expected to grow by 20 per cent. 

Decorative paints, electrostatic powder paints and coil paints will see a modest recovery of around 10 per cent. The printing ink industry is showing signs of recovery and is expected to grow by 10 per cent.

HRC import from China soars, weighing on domestic producers

The import of hot rolled coil (HRC) from China has soared significantly in recent months, weighing on the domestic industry.

Statistics of the General Department of Customs showed that HRC import amounted 890,000 tonnes in April, 1.5 times higher the domestic total output with China accounting for 71 per cent.

In the first four months of this year, Việt Nam imported a total of 3.93 million tonnes of HRC Steel, up 32 per cent against the same period last year. Import from China totalled 2.9 million tonnes, twice as much as last year.

HRC import prices from China is much lower other markets, averaging US$578 per tonne in the first four months of this year. HRC imported from the Republic of Korea is $132 per tonne higher.

Two big domestic steel manufactures, Hoà Phát and Hưng Nghiệp Formosa, in March submitted a file to the Ministry of Industry and Trade requesting the initiation of an anti-dumping investigation on imported HRC mainly from China and India.

China’s overcapacity is triggering a global concern.

The US recently announced an increase in tariffs on Chinese electric vehicles to more than 100 per cent, designed to stop cheap subsidised Chinese goods flooding the US market.

The tariffs will also be raised for lithium batteries, critical minerals, solar cells and semiconductors.

Thailand is considering expansion of anti-dumping measures on HRC steel imported from China over a concern that numerous Thai steel manufacturers might have to shut down this year because of being unable to compete with the dumping of China. 

Northern provinces need greater cooperation across industrial and trade sectors

The 10th industry and trade conference of the 28 northern provinces and cities opened in Hà Nội on Friday, proposing a series of mechanisms and solutions to increase ties and cooperation among the local areas as soon as possible. 

Speaking at the opening of the conference, Deputy Minister of Industry and Trade Nguyễn Sinh Nhật Tân emphasised that 2024 is an important year for the localities to complete economic development goals for the 2021-2025 period. 

The ministry has issued many policies to promote developments in industry and trade between the regions, following on the success of closer cooperation developed at their 2023 conference.

Lê Hồng Sơn, vice chairman of Hà Nội People's Committee, said that coordination among localities in the Northern region still had many limitations. 

For sustainable development, these localities' industry and trade departments needed to further strengthen the coordination to contribute to improving efficiency in production and business activities, Sơn said. 

Quách Tấn Liêm, vice chairman of Hoà Bình Provincial People's Committee, proposed the Ministry of Industry and Trade (MoIT) create links based on the strengths of each locality.

Ngô Quang Trung, director of MoIT's Department of Local Industry and Trade, said he expected delegates and departments to focus on solutions to improve connections among local industry and trade sectors.

Phạm Văn Hóa, director of the Department of Industry and Trade of Nghệ An Province, said that the ministry could increase support for trade promotion programmes and expand production and business in mountainous and border areas. 

Nghệ An also suggested that regional connectivity could be strengthened by the inclusion of large centres such as Hà Nội, Nghệ An and Quảng Ninh.

Also at the conference, Hoàng Chí Hiền, director of Lào Cai Province's Department of Industry and Trade, said a review needed to be undertaken of logistical development mechanisms and policies, which contributed to perfecting the legal framework for logistics services.

Conference participants also discussed other issues such as improving the business environment and competitiveness and developing industrial production, especially in priority industries. They also talked about management and development of industrial clusters, work on developing night-time economies and exploiting the advantages of existing signed free trade agreements. 

VNDirect pursues acquisition of culinary chains, including King BBQ and ThaiExpress, to expand portfolio

VNDirect is planning on buying shares in a company operating a string of famous culinary chains including King BBQ, ThaiExpress and Seoul Garden.

According to HoSE, the VNDirect Securities Joint Stock Company (VND) will buy shares in Goldsun Food Joint Stock Company and, following the successful acquisition, the company will become an affiliated company of VNDirect.

Details of the transaction regarding the number of shares being bought and the price, have not been revealed.

The Goldsun Food Joint Stock Company (Goldsun Food) was converted from Redsun-ITI, and currently operates food chains which also include Capricciosa, Tasaki BBQ, Meiwei and Khao Lao.

At the end of 2023, VNDirect only has one affiliated company, Postal Insurance Joint Stock Company, with a 20 per cent ownership rate. According to the financial report for the first quarter of 2024, the investment is worth VNĐ836 billion.

At the end of the first quarter of 2024, VNDirect's total assets were at VNĐ41.3 trillion - flat compared to the beginning of the year. Of which, cash and equivalents recorded VNĐ3.36 trillion, down 31 per cent, while term deposits are nearly VNĐ7.8 trillion, up 5 per cent.

The outstanding loan balance for margin activities at the end of March 2024 is VNĐ9.93 trillion, a slight increase compared to the beginning of the year. The company no longer records advances from sales (VNĐ374 billion at the beginning of the year).

The company's balance of shares and listed fund certificates was recorded as VNĐ1.53 trillion, an increase of VNĐ421 billion compared to the beginning of the year. The company also has more than VNĐ1.1 trillion invested in unlisted stocks and fund certificates.

In the first quarter, the securities company achieved operating revenue of VNĐ1.39 trillion, an increase of 7 per cent over the same period last year; profit after tax VNĐ617 billion, 4.4 times higher than Q1 in 2023. However, compared to Q4, the final of 2023, VNDirect's revenue and profit both decreased. 

E-commerce frauds require utmost in attention from regulators

Great efforts have been made to combat counterfeit goods and trade fraud products on e-commerce channels as online shopping has become increasingly popular for many people amid booming e-commerce activities.

According to insiders, proactively monitoring market trends, adhering to consumer preferences, and overcoming challenges through digital technology adoption is essential for business development.

Online shopping contributes to increasing sales and reducing intermediary costs, preventing financial loses for businesses in the Vietnam market. However, taking advantage of loopholes, many individuals have impersonated trading platforms, and large brands, which apply policies that do not allow customers to inspect goods upon online delivery, causing losses to consumers.

Experts said stronger sanctions are necessary to punish those responsible for e-commerce frauds.

According to statistics from the Ministry of Industry and Trade (MoIT), e-commerce continues to be one of the bright spots in Vietnam's digital economy development, with revenue reaching 20.5 billion USD in 2023, up 25% year-on-year.

A comprehensive report on the online retail market in 2023 and the forecast for 2024 by the e-commerce data platform Metric also show that revenue from business-to-consumer (B2C) e-commerce reached nearly 500 trillion VND (over 19.64 billion USD) in 2023, and is predicted to hit around 650 trillion VND in 2024.

Sales revenue on online platforms is projected to reach over 310 trillion VND in 2024, 35% higher than that reported in the previous year.

Sales through live-streaming can be 10 times more effective than traditional e-commerce, experts said, but noting that along with the benefits and profits brought by e-commerce, there are also downsides.

Many bad actors have exploited consumer trust and policy loopholes to sell low-quality products, counterfeiting the trademarks of well-known brands that are protected in Vietnam and worldwide, they said.

According to Tran Huu Linh, Director General of the MoIT’s Vietnam Directorate of Market Surveillance, said his agency frequently receives reports from branded companies about counterfeit products on e-commerce platforms like Lazada, Shopee, and recently TikTok, and social networks such as Facebook and Zalo.

He also provided a comparison that in 2020, retail sales on the Internet in Vietnam reached 13 billion USD, but by 2022 this figure surged to 35 billion USD.

Vietnam has the highest online shopping population ratio in Southeast Asia, with 49.3 million or 41% of its population shopping online, he added.

To prevent e-commerce fraud, it is necessary to have resources, especially tools, methods, and appropriate sanctions. Linh stressed.

In addition to efforts by law enforcement agencies, individuals and organisations need to enhance awareness of legal compliance in preventing counterfeit goods, smuggling, and trade fraud, especially through e-commerce platforms, he said./.

Sustainability plays significant role in choices of travellers

Sustainability plays a significant role in the decision-making process of Vietnamese travellers when selecting destinations for their upcoming vacations, experts said.

In the recently released Sustainable Travel Report 2024 by Booking.com, it was revealed that a staggering 96 per cent of Vietnamese travellers consider sustainable travel as a crucial aspect of their journeys.

This comprehensive report, gathered from 31,000 travellers across 34 countries and territories, delves into the latest consumer sentiments, preferences, and influencers concerning sustainable travel.

Looking ahead, a promising 94% of Vietnamese travelers expressed their intention to prioritize sustainable travel in the coming year. Notably, 56% admit to feeling guilt when their travel choices are less sustainable, while 21% aspire to travel more conscientiously due to their firm belief in doing the right thing.

A noteworthy finding is that 54% of travelers are drawn to accommodations that are recognised as more sustainable, underscoring the growing appeal of eco-friendly options.

The report emphasises the pivotal role of consistent certification standards, with a significant 71% of travelers concurring that all travel booking platforms should adhere to the same sustainable certifications or labels.

To encourage sustainable travel habits, the travel industry can promote adherence to uniform certification standards and labels, fostering a collective commitment to sustainability among travelers.

Travelers are seeking destinations that align with their values of supporting local businesses, embracing diverse cultures, and offering opportunities for eco-conscious modes of transportation like walking, cycling, or public transit.

One such idyllic destination recommended by Booking.com is the serene Song Cau in the south-central province of Phu Yen.

Nestled amidst picturesque beaches and quaint fishing villages, Song Cau provides a genuine glimpse into local life. Visitors can explore historic lighthouses, embark on breathtaking treks to Mui Dien cape for panoramic vistas, or leisurely stroll through the village to observe the traditional practices of shrimp farmers.

Noteworthy sustainability initiatives in Song Cau include community-based tourism models, marine reserve development, and mangrove restoration efforts that bolster local communities.

Additionally, Ha Giang province, situated in the northeastern mountainous region, is spotlighted for its striking karst landscapes, rugged passes, and mist-clad villages.

Home to diverse ethnic minorities upholding their traditional cultures, Ha Giang is celebrated for its resilience and natural beauty. The region places a strong emphasis on cultural preservation and responsible tourism to ensure that travellers positively impact local communities.

Among other distinguished destinations featured on Booking.com’s list are Quy Nhon city in Binh Dinh province, Hoi An ancient city in Quang Nam province, Da Nang city, and HCM City.

These destinations were handpicked from the top 500 locales based on the volume of properties with third-party sustainability certification, arranged according to the highest percentage of properties holding such certifications, inviting travellers to embark on rewarding, sustainable journeys./.

Hanoi to host Vietnam AutoExpo 2024 in June

The 17th International Exhibition on Automobile, Transportation and Supporting Industries (Vietnam AutoExpo 2024) will be held from June 13 to June 16 at the Hanoi International Center for Exhibition.

The expo is co-organised by the Vietnam Institute of Industrial and Trade Policy and Strategy, the Vietnam Association for Supporting Industries (VASI), the Vietnam Society of Automotive Engineers (VSAE), and the CIS Vietnam Advertising & Exhibition JSC.

Covering an area spanning 8,000 sq.m, the event will feature 350 booths of 250 top local and foreign brands in commercial cars, passenger cars, special-purpose vehicles, motorcycles, and electric bikes.

The four-day expo will also showcase spare parts and components for the automobile manufacturing process. 

On the sidelines of the expo, there will be an international seminar on the development of the global supply chain of the automobile industry amid climate change adaptation.

This event will involve the participation of the Vietnam Automobile Manufacturers’ Association (VAMA), VASI, the UN Industrial Development Organization (UNIDO), alongside domestic and foreign enterprises.

Furthermore, a trade connection programme with the participation of more than 100 foreign businesses from China, the Republic of Korea, Japan, India, and Taiwan (China) is set to take place under the framework of the expo with the aim of intensifying trade exchanges and consumption, while helping investors seek greater business opportunities.

The auto expo is the largest annual event of the automobile industry in northern Vietnam, with the latest version projected to attract 20,000 visitors.

Government fast-tracks enforcement of housing, real estate business laws

The Government on May 17 issued a Resolution approving the proposal to draft amendments to the Housing Law and the Real Estate Business Law, specifically Clause 1 of Article 197 and Clause 1 of Article 82, respectively.

Both laws were ratified by the National Assembly in November 2023, with their effective date set for January 1, 2025. However, the Government put forth a proposal for these laws to take effect from July 1, 2024, six months earlier.

This proactive step aims to promptly institutionalise the Party's guidelines, as well as the State's policies and laws governing the development and strict management of the real estate market. It seeks to refine mechanisms and policies to ensure the healthy and sustainable development of this market.

Furthermore, this decision ensures that these laws will come into effect concurrently with the Land Law 2024.

Dong Nai remains magnet for foreign investors

Industrial parks in the southern province of Dong Nai continued to see a strong influx of foreign direct investment (FDI) in the first months of this year, which has surpassed the yearly target by nearly 20%.

The Dong Nai Industrial Zones Authority (DIZA) said the parks have lured 40 FDI projects worth 519 million USD so far this year, while 39 others have adjusted their capital up by 315 million USD.

The new projects, mainly in the manufacturing of semiconductors, and electronics and components, mechanical engineering, and garment-textile, satisfy requirements in terms of environment, labour, and technology set by Dong Nai.

Singapore was the biggest investor with nine projects valued at 231.73 million USD, the DIZA said.

During the viewed period, the industrial parks saw six domestic projects increase their capital by 1.05 trillion VND (41.25 million USD), and a new project worth 998 billion VND.

Dong Nai, a neighbouring province of the southern largest economic hub of Ho Chi Minh City, houses 33 industrial zones covering more than 10,500 hectares, of them 32 already operational. It is home to nearly 1,600 valid FDI projects with a total capital of over 34 billion USD by 44 countries and territories./.

25 out of 28 northern localities report positive industrial production

As many as 25 out of 28 northern localities reported positive annual growth in industrial production in the first four months of 2024, heard the 10th meeting of industry and trade sectors from 28 northern cities and provinces in Hanoi on May 17.

Among them, 11 achieved a growth rate of 10% or higher. Industrial hubs like Thai Nguyen, Quang Ninh, Bac Giang, Hai Phong, and Hanoi regained strong industrial growth momentum.

In the period, the total retail sales of goods and services in the region reached over 1.4 trillion VND (58.3 million USD), reflecting a 12.3% year-on-year increase. Additionally, the region's export turnover jumped by 18.3% annually, reaching an impressive figure of 120.7 billion USD.

Among the standout performers in export growth, Hai Phong reported 16 billion USD, marking a 21% rise. Thai Nguyen saw a 14.7% expansion to 17.8 billion USD, and Bac Giang 16.5 billion USD, up 22%. In total, 24 out of 28 localities reported positive export growth.

Delegates at the event discussed various policies and solutions aimed at further enhancing the economic landscape. Key topics included improving business environment, competitiveness, and regional connectivity through effective State management, planning and zoning.

The focus was on developing industrial production, particularly in priority industries that capitalise on local advantages. There was a call for pooling public investment in industrial and trade infrastructure, increasing training on global economic integration, and maximising the benefits of signed free trade agreements.

Mechanisms, solutions, and strategic orientations for industry development among the localities were also put on table./.

Coal exports hit $29.4 million in April

Việt Nam's coal exports hit a record in April with 109,219 tonnes worth US$29.4 million, a more than hundred-fold increase in both volume and in value compared to the previous month, according to data from the General Department of Vietnam Customs.

Over the first four months of the year, coal exports reached 112,112 tonnes, worth nearly $30.3 million, up over 30 times in volume and nearly 23 per cent in value over the same period in 2023. The average export price reached $270 per tonne, down 24.3 per cent from the same period last year.

Many countries have been increasing coal imports due to the increasing demand particularly for thermal power, while hydropower is facing difficulties. This is attributed to the influence of the El Niño phenomenon, which has caused record-high temperatures.

Japan remained the largest importer of Vietnamese coal in the first four months of the year with 53,404 tonnes worth $12.43 million, a sharp increase of 146 times in volume and 96 times in value over the same period last year. Japan's imports accounted for 47.6 per cent in volume and 41.1 per cent in turnover of Việt Nam's total exports.

The Netherlands, South Africa, Thailand, the Philippines and Malaysia are also major import markets for Việt Nam's coal.

Việt Nam is one of the five largest coal-consuming economies in Southeast Asia. According to the General Department of Vietnam Customs, the country has coal reserves of approximately 50 billion tonnes.

Quảng Ninh is the most important coal mine in Việt Nam; it was first worked in 1839 and has reserves of up to 8.7 billion tonnes. With a convenient location near the sea for transportation to the international market, it has become the leading coal mining area in the country.

According to the Ministry of Industry and Trade, the coal market is expected to increase from now until 2030, reaching 43-47 million tonnes of commercial coal per year. After that, it is projected to gradually decrease between 2035 and 2045.

Demand for coal is expected to peak at around 94-127 million tonnes per year during 2030-35, mainly due to rising demand for power generation and economic sectors such as cement, metallurgy and chemicals. It will then gradually decrease to 73-76 million tonnes per year by 2045.

Domestically produced commercial coal will be around 45-47 million tonnes per year in the period of 2025-35 and gradually decrease to 42-44 million tonnes per year by 2045. To match demand, Việt Nam is expected to import about 50-83 million tonnes during 2025-35, gradually falling to about 32-35 million tonnes in 2045. 

Vietnam benefits from Lotte-KOBC global logistics partnership deal

Vietnam will benefit from a partnership deal on global logistics between Lotte Global Logistics of the Republic of Korea and Korea Ocean Business Corporation (KOBC).

Lotte Global Logistics and Korea Ocean Business Corporation recently signed a memorandum of understanding to boost global logistics supply chains and introduce eco-friendly shipping solutions.

The MOU was signed in Ho Chi Minh City on May 10 by Lotte Global Logistics CEO Kang Byong-ku and KOBC CEO Kim Yang-soo.

To improve its global logistics capabilities, Lotte Global Logistics plans to invest approximately KRW500 billion (US$364 million) in various projects over the coming years.

The funds will be injected into constructing a cold chain logistics center in Vietnam, setting up logistics hubs in Hungary and other Eastern European locations, deploying ammonia-fueled ships for sustainable maritime transport, and investing in specialized containers.

LOTTE Global Logistics will support Korean businesses to enhance their competitiveness in the field of import and export through improving global logistics infrastructure, said Kang.

LOTTE Global Logistics Vietnam, a subsidiary of Lotte, the RoK’s largest food business group, has operated cold storage for rent with a capacity of 25,000 pallets at Long Hau industrial park in Long An province, southern Vietnam, since 2008. LOTTE Global Logistics has planned to expand its operations to other provinces in the Mekong Delta region, including Vinh Long and Dong Nai provinces.

Industrial real estate market stable in year's first months

The industrial real estate market, particularly in the southern region, held steady in the first months of this year, which experts said was mainly thanks to rebounding imports and exports, and increasing influx of foreign investment.

The average land rent price in the tier-1 market in the southern region was 189 USD per sq.m, up 2.4% year-on-year, according to property consulting firm CBRE Vietnam.

Experts said apart from electronics, automobile and spare part manufacturers, tenants from new industries in the high-tech field such as electric vehicle manufacturing, semiconductors, and green materials have expressed their interest in Vietnam.

Localities' orientation for new business and increasing interest in high-tech industries are expected to create a boom in this sector in the future.

Pham Thi Mien, deputy head of Market Research and Investment Promotion Consulting from the Vietnam Association of Realtors (VARS), forecast that the industrial real estate segment will maintain the pace throughout the year, noting many investment projects in this regard have received in-principle approval and kept moving.

Experts explained that along with the stable socioeconomic situation, the improved investment environment, and incentives to foreign investors, Vietnam has paid attention to infrastructure construction.

Assoc. Professor, Dr. Dinh Trong Thinh, from the Academy of Finance, stressed the need for Vietnam to have a clean land fund, and sketch out a national master plan, and schemes for localities and sectors in order to roll out appropriate incentives.

The VARS said Vietnam plans to zone off an additional 115,000 hectares of land for industrial parks in the next decade, with about 558 IPs across the country, nearly 1.5 times the current number.

VARS Chairman Nguyen Van Dinh said that Vietnam will continue attracting many foreign investors, adding the FDI influx in industrial parks and economic zones will account for about 45% of the total additional registered FDI in the country this year./.

Market diversification key for enterprises to expand exports

Vietnamese enterprises need to meet quality requirements and rules of origin, increase value-added content, and diversify markets, as production and business activities are forecast to face many challenges due to the unpredictable global economy and climate change, despite positive export results in the early months of this year.

From January to April, Vietnam posted a total import-export revenue of 238.88 billion USD, an increase of 15.2% over the same period last year. Of which, overseas shipments reached more than 123 billion USD, up 15% year-on-year while the import turnover was reported at over 115 billion USD, up 15.4% year-on-year. In particular, the country had 21 items with export turnover of more than 1 billion USD, accounting for 86.4% of the total export turnover.

It is noteworthy that shipments to major markets such as the US, the EU, and China recorded double-digit growth. The US is Vietnam's largest export market with an estimated turnover of 34.1 billion USD, up 19.1% compared to the same period last year. Exports to China reached 18 billion USD, a year-on-year rise of 14.4% while those to the EU and the Republic of Korea hit 16.4 billion USD and 8.4 billion USD, up 15% and 10.2%, respectively.

General Director of Garment 10 Joint Stock Company (Garco 10) Than Duc Viet said that the company has received more orders in the first quarter of 2024 than last year’s corresponding period. Notably, positive signs have been recorded in order volume for the second quarter and the first half of the third quarter, he added.

Gia Dinh Group Joint Stock Company is in the same situation. The number of orders that it received have increased by over 30%, ensuring employment for workers until September or October. Along with tapping traditional markets like the US and EU, Gia Dinh Group has expanded its coverage to Japan and the Republic of Korea, and explored niche markets such as South Africa and Mexico.

Vegetable and fruit export businesses like Ameii Vietnam Joint Stock Company, which used to focus on traditional markets such as the EU, the US and China, have shifted to seeking orders from the Middle East and South Asia.

Despite rosy prospects, businesses are also facing significant challenges in their export activities. For instance, a series of regulations regarding eco-friendly products, expanded responsibilities of manufacturers, supply chain traceability, and requirements for reducing carbon emissions for products have been enforced in the EU market. Countries exporting to this market must comply with them.

Experts recommend that businesses should maximise the potential of markets where Vietnam has signed Free Trade Agreements (FTAs). New markets such as Africa, the Middle East, and South America should be tapped, they noted.

According to economic expert Dinh Trong Thinh, Vietnam has participated in 19 bilateral and multilateral FTAs with most economies in the world, of which 16 have been effective with over 60 partners, covering the five continents, which account for nearly 90% of global GDP.

To achieve the export growth target for 2024, the Ministry of Industry and Trade (MoIT) is striving to implement solutions, including efforts to expand FTA negotiations, realise incentives of signed agreements and innovate trade promotion activities, said Tran Thanh Hai, Deputy Director of Foreign Trade Agency under the ministry./.

Vietnamese products impress visitors to Foodservice Australia 2024

Vietnamese products are being showcased at Foodservice Australia 2024 – the leading food industry event being held in Sydney from May 19-21.

They include dried vermicelli and noodle, cashew nuts, coffee, pepper, dried nuts, spices, chili sauce, soy sauce, nutritional powder, cordyceps, black garlic, and herbal teas.

This is an activity to support Hanoi businesses to display and introduce their goods and services, promote trade and increase the presence of Hanoi and Vietnamese brands and products in Australia, thus increasing opportunities to bring agricultural products, food, and OCOP (one commune one product) products to distribution channels in this market.

Nguyen Phu Hoa, head of the Vietnam Trade Office in Australia, said that through practical trade promotion activities, Vietnamese agricultural products have increased its presence in Australia in recent times. In April alone, the volume of Vietnamese products available in the country increased by nearly 80% compared to the same period last year, with some posting outstanding growth such as coffee (nearly 300%), and cashew nuts (42%).

On the sidelines of the fair, Hanoi businesses also attended forums, conferences, and seminars, getting updated on international branding ways to promote products, and current food and beverage trends in Australia and around the world.

On May 18, a conference on trade and investment promotion between Hanoi and Australian enterprises was also held.

At the event, representatives of several Vietnamese and Australian firms signed memoranda of understanding (MoUs) on cooperation./.

Domestic airfares cooling down

Domestic airfares have been cooling down, with the prices on many routes even halving as compared with those during the National Reunification (April 30) and May Day holidays.

Vietnamese airlines are rolling out discounts for the peak summer season on domestic routes, including zero-dong tickets, showing that the domestic aviation market has maintained its competitiveness, said the Civil Aviation Authority of Vietnam (CAA).

Specifically, one-way tickets for the Hanoi-Ho Chi Minh City route cost 1.5 million VND (58.93 USD). The fares for one-way tickets from the two big cities to other tourist destinations like Da Nang, Nha Trang, and Phu Quoc have also decreased, ranging between more than 1.1 million and 1.6 million VND.

According to the authority, the airfare surge in the first month of this year was due to rising fuel prices and widening forex rate gap, among others, which have exerted pressure on the operation of carriers.

Over the past time, it has supervised ticket sales by Vietnamese airlines on domestic routes./.

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