Myriad of benefits already clear with UK-Vietnam pact

Vietnam and the UK are boosting ties in agri-food and drink sectors backed by slashed tariffs under free trade agreements.

Under the British Embassy to Vietnam’s study on cooperation in agriculture between Vietnam and the UK released last week, there are exciting grow opportunities from trade agreements, especially the UK-Vietnam Free Trade Agreement (UKVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), for both nations.

“The UKVFTA since 2021 has brought immense opportunities for the agriculture, and food and drink sectors. The majority of food and beverage (F&B) product categories now benefit from a phased reduction and eventual elimination of tariff rates by 2031 (subject to relevant tariff quotas),” stated the study.

Building upon this, the UK’s full accession to the CPTPP, scheduled to take place in 2024, will pave the way for even more exciting agri-food trade opportunities, according to the embassy.

For Vietnam, the benefits have already been clear. Exports of agro-forestry-fishery exports to CPTPP member countries increased 32 per cent in just three years, from $2.2 billion in 2019 to $2.9 billion in 2022.

The UK is also off to a strong start. In 2022, the UK exported $63.5 billion of goods and services to the CPTPP countries (7.5 per cent of the UK total) and imported $54 billion (5.8 per cent).

In Vietnam specifically and previously, UK exporters of F&B products post-Brexit were subject to Vietnam’s most-favoured nation tariff rates. These were up to 60 per cent.

Under the CPTPP, tariff rates for UK imports have already dropped. Tariff rates on pork have dropped from 22-25 to 8.1 per cent, while tariffs on seafood have largely disappeared. Long-term advantages will continue to develop. Vietnam is expected to benefit from increased exports of agricultural and seafood products, while the UK should see a boost to meat exports.

According to the study, as the trade relationship continues to flourish, a variety of renowned and sought-after food products from the UK have found their way into Vietnam. Whisky and gin are prevalent, featuring in the top five UK exports to Vietnam. Specific regions of the UK have also experienced success. The Scottish trade scene is particularly vibrant, collectively shipping $105.4 million of F&B goods to Vietnam in 2022; among which whisky and seafood stand out.

The UK is also feeding demand in Vietnam. Vietnam exported nearly $300 million of fish and shellfish to the UK last year, making seafood Vietnam’s fifth-biggest export product category for the UK.

Fruits have also witnessed export success. In January 2023, the inaugural shipment to the UK of seven tonnes of Cao Phong oranges, renowned for their distinctive fragrance, rich sweet taste, and abundant juice, was celebrated in a big ceremony attended by the People’s Committee of Cao Phong district and the Department of Agriculture and Rural Development of the northern province of Hoa Binh. This was followed in May 2023 with the first five-tonne shipment of iconic Ri6 Durian landing on British supermarket shelves nationwide.

The total F&B trade between the two countries in 2023 amounted to nearly $800 million, with further expected expansion following the November 2022 cooperation agreement signed between Vietnam’s Ministry of Agriculture and Rural Development and the UK’s Department of Environment, Food, and Rural Affairs. The agreement will streamline regulatory frameworks, ensure compliance with international standards, and reduce barriers to entry for agricultural and F&B produce.

Meat exports are also expected to benefit directly, following a simultaneous bilateral agreement on export health certificates that permits British pork and poultry product exports to Vietnam for the first time.

Vietnam is one of the world’s top meat importers, boasting an import surplus of over $1.4 billion in 2023. It already contributes 2.5 per cent of total global pork production and is ranked sixth in pork production globally.

Last month, the UK’s post-EU import requirements came into force. Vietnam is one of only 23 non-EU countries that have been specifically ‘risk assessed’.

“Due to Vietnam’s historical compliance, it can benefit from a lower frequency of checks, and simplified procedures, demonstrating the UK’s commitment to increasing bilateral agri-trade,” said UK trade commissioner for Asia-Pacific Martin Kent. “Whilst these requirements will be continuously reassessed and could go up as well as down, this presents an exciting new opportunity for Vietnamese exporters to utilise.”

“This relationship is poised to improve further, with our accession to the CPTPP which brings a wealth of new tariff and rule of origin benefits on top of our existing UKVFTA, particularly for the seafood and snacking sectors,” he added.

Green energy poses few barriers for some

The transition from conventional energy sources to renewables for production is not only bringing economic benefits but is also helping businesses enhance export competitiveness.

Vinamilk, the top dairy company in Vietnam, added another plant in the southern province of Binh Duong to its list of green factories at the end of last month, reaffirming the firm’s strong commitment on the journey towards achieving net-zero targets by 2050.

Vinamilk has made history as the first domestic dairy company to own three factories, and also boast one farm that has achieved international certification for carbon neutrality from the British Standards Institution.

Currently, green energy sources such as solar power and compressed natural gas account for over 90 per cent of the energy consumption at the factory in Binh Duong. According to its greenhouse gas (GHG) inventory report, the plant’s emissions in 2023 reduced by 30 per cent compared to the previous year.

Practising green conversion and energy saving is one of Vinamilk’s efforts since the announcement of its Pathways to Dairy Net-Zero 2050 action plan in the middle of last year. All the company’s factories are implementing energy-saving solutions, such as investing in environmentally friendly technology systems, heat and water recovery systems, and utilising green and clean energy as alternatives to fossil fuels in the production process.

“Approximately 86 per cent of Vinamilk’s energy sources used in production are clean and renewable,” a representative stated. “The company plans to further increase this proportion, serving the goal of reducing GHG emissions by 15 per cent by 2027.”

The transition to green and clean energy in production is becoming a mandatory requirement for many other businesses and is part of the roadmap to obtain green certifications to access major export markets, such as the EU.

Its Carbon Border Adjustment Mechanism requires importers to report the carbon emissions associated with their goods. If the emissions exceed the established standards, businesses must purchase carbon certificates at the specified EU price.

Than Duc Viet, CEO of apparel group Garco 10, said, “90 per cent of our production is for export, so using renewable energy is a mandatory requirement to demonstrate that our manufacturing process meets green standards.”

For two years, Garco 10 has been implementing the use of green energy from rooftop solar systems for projects in the north-central province of Thanh Hoa. Since last December, the company has also been installing rooftop solar systems for other factories in Quang Binh and Thai Binh provinces after recognising its significant benefits.

“Those ventures, once completed, will provide around 1,000 and 640kWp a year respectively, contributing to a cost-saving of 15-20 per cent in electricity usage,” Viet said.

The transition to green and sustainable energy to contribute to emission reduction goals has been included in Vietnam’s green growth strategy for 2021-2030.

According to the national energy master plan announced last year, Vietnam prioritises the development of renewable energy sources for electricity generation, aiming for a contribution rate of around 31-39 per cent by 2030 and 67-71 per cent by 2050.

According to Le Xuan Nghia, a member of the National Financial and Monetary Policy Advisory Council, renewable energy sources such as solar, wind, hydro, and bioenergy help minimise environmental impact and create stable and sustainable energy sources for the future.

“The transition to renewable energy also promotes technological innovations such as energy storage, electric vehicles, and smart systems, reducing dependence on fossil fuels and pressure on the national electricity grid. However, one of the most difficult challenges in developing renewable energy is the limited infrastructure and high costs,” Nghia noted.

According to Pham Tuan Anh, sustainability director of animal feed company GREENFEED Vietnam, the investment costs and environmental benefits as well as economic advantages and brand value are the factors that businesses often consider when deciding to invest in green initiatives such as transitioning to renewable energy, green energy, and rooftop solar.

“Only when both objectives can be met - reducing emissions and bringing value to the business - can an initiative be considered feasible and applicable,” Anh said.

He emphasised that besides the efforts made by businesses, authorised agencies also need to issue specific guidelines to address policy gaps and funding difficulties in the renewable energy and green energy sectors, in order to encourage businesses to invest in their own factories.

“Accessing green finance and green incentives is still very challenging, and we do not have specific regulations to support or encourage businesses to participate more in the GHG emissions reduction process,” Anh noted.

The proportion of renewable energy, including biomass, biogas, and rooftop solar energy, currently accounts for approximately 17 per cent of GREENFEED’s energy production structure.

Over the next five years, the company aims to continue developing rooftop solar projects for self-consumption in manufacturing facilities that have not yet implemented the system. The farms will also continue to recover biogas to power generators for operation, with the expectation of contributing an additional 15-20 per cent of the company’s proportion of renewable energy.

Brand new mindset required for proper usage of electricity

Electricity in Vietnam is being used at inferior efficiency compared to other countries, which is providing a challenge to find solutions on effectively using and saving it.

At last week’s roundtable themed “Saving electricity - From policy to life,” organised by the Vietnam Government Portal, Vo Quang Lam, deputy general director of Vietnam Electricity (EVN), said that the country consumes 2-3 times more energy than other countries because of inefficient usage.

“For example, to generate $1,000 for the economy, we use about 376 tonnes of oil (in equivalent), while the global average is only 170 tonnes, Singapore is 99 tonnes, and Japan is 90 tonnes.”

Lam added that it was a challenge for Vietnam to improve energy usage efficiency and save electricity when the supply was struggling.

In the first four months of the year, commercial electricity reached 96.2 billion kWh, an increase of 12.4 per cent on year, while the growth of 2023 was 4.26 per cent compared to 2022. This is the highest growth rate in recent years.

Tran Dinh Thien, former director of the Vietnam Institute of Economics, said that Directive No.20/CT-TTg issued in 2023 on electricity saving provided a new approach, as a national action programme with specific targets, which is being deployed across the country at all levels.

Thien emphasised that to use electricity effectively, supply was critical. “We can see the huge room for saving electricity. In the coming years, the government should improve education to raise awareness that electricity is a valuable resource. Electricity saving should become a cultural feature for every person,” he said.

Ha Dang Son, director of the Centre for Energy and Green Growth Research, said that in developed countries, training and education on saving electricity and natural resources were carried out very early in the education system. He highlighted sanctions that were used for traffic violations and to prevent drink-driving as an effective approach that could be replicated.

“Saving electricity and natural resources needs such heavy sanctions instead of the current regulations, which are mostly encouraging and educational,” Son said.

Tran Anh Tuan from Panasonic Vietnam said the company had been implementing practical solutions to save electricity, but still had to ensure safe production.

“We ask employees to turn off electrical equipment not in use; maintain and renovate equipment to improve electricity efficiency; and encourage and propose electricity saving ideas in every department and division,” Tuan said.

Moreover, Panasonic Vietnam has replaced all lighting in the company with energy-saving LED lights, renovated the air conditioners in the workshop, and installed automatic power off sensors, as well as reviewed and optimised the use of compressed air in production,

Nguyen Viet Son, deputy director of Vinh Phuc Department of Industry and Trade, said that to effectively save electricity, there must be good coordination and implementation among state management agencies, electricity distribution, and electricity customers.

“For customers in residential areas, Vinh Phuc has introduced electricity saving solutions through the local radio system, while the business sector focuses on large customers and businesses in numerous industries that consume a lot of energy,” Son said.

EVN has been focused on applying technologies to save electricity, like modernising the metering system. About 92 per cent of electricity meters across the country are now electronic.

Currently, EVN is interested in implementing further electricity-saving solutions in industrial production customers, which account for a high proportion of electricity usage. This energy customer group used 107 billion kWh out of 253 billion kWh of commercial electricity in 2023.

“Of the 30.86 million electricity purchase contracts signed with EVN, the number of key energy-using businesses (using over one million kWh per year) was nearly 19,700, but their electricity consumption accounts for more than 40 per cent of total commercial electricity. If we do a good job of using electricity economically and effectively in the business sector, there will be opportunities to save a lot of electricity,” Lam of EVN said.

This year, EVN has set a target of saving 5.5 billion kWh, but will strive to save about six billion.

Building contractors eye rosier prospects after tough 2023

Many building contractors returned to a profit in the first quarter of this year and have a bright outlook for the rest of 2024.

Statistics compiled by Hanoi-based Guotai Junan Vietnam Securities show that both the revenue and net profit of construction firms and building material makers shed 12 per cent and 26 per cent, respectively, last year compared to the previous year.

Leading contractors such as Hoa Binh Construction Corporation (HBC), Fecon JSC (FCN), and Construction Corporation No 1 (CC1) saw a sharp drop in profits.

Le Viet Hai, chairman of HBC, revealed that last year may have been the hardest in the company's 36-year history.

The company counted more than $46 million in losses due to lack of work, tough competition, and unscrupulous behaviour displayed by competitors to seize contracts, among others.

As a result of strong restructuring and concerted efforts to sign new contracts, in the first quarter (Q1) of this year, HBC bagged $68.8 million in consolidated revenue and $2.35 million in consolidated profit.

Fecon also suffered in 2023, posting $1.75 million in losses.

Pham Viet Khoa, the company’s chairman, said that Fecon failed to achieve last year’s projections due to a combination of factors, including the stormy economy, tough competition, low unit prices from signed contracts leading to almost no profit, and escalating financial expenses eating up all accrued profit.

In Q1 of this year, Fecon posted $4.03 million in consolidated revenue and nearly $26,500 in consolidated profit, a drop of 20.6 per cent and 77.4 per cent, respectively, on-year.

Khoa, however, revealed that the company had signed a raft of big contracts, such as the second phase of the Lach Huyen international deepwater port’s terminals 5 and 6, Phoenix Vung Ang port, and infrastructure at Vship Can Tho.

“Our full-year target of counting $166.6 million in consolidated revenue is looking feasible,” said Khoa.

This year, Fecon aims to reach $166.6 million in consolidated revenue and $2.5 million in consolidated post-tax profit, rising 39 per cent and 243 per cent on-year.

At Coteccons Construction JSC (CTD), in Q3 of the fiscal year running from July 1, 2023, to June 30, 2024, the company counted $194.4 million in net revenue, up 49 per cent on-year, and $4.3 million in post-tax profit, equal to a 4.7-fold increase from the year before and setting a record for the previous 15 quarters.

Cumulatively, in the first three quarters of the ongoing fiscal year, CTD saw a 16 per cent hike in its net revenue, reaching $602 million, and $10.04 million in post-tax profit, equal to a 6.4-fold increase on-year.

Meanwhile, in Q1 of this year, Deo Ca Traffic Infrastructure Investment JSC (HHV) counted $28.7 million in net revenue and $4.75 million in post-tax profit, up 37 per cent and 28 per cent on-year.

Its revenue from construction activities approximated $8.2 million, showing a 43 per cent jump on-year.

The rebound of the realty market in 2024 and the government’s proven commitment to accelerate public investment are expected to bolster infrastructure construction throughout the year.

Vĩnh Long Province keen on developing OCOP products

Vĩnh Long Province is developing more products under the national “One Commune - One Product” programme.

The Cửu Long (Mekong) Delta province now has 159 of them, 100 with three-star products and 59 with four, after five years of implementing the programme, according to its Department of Agriculture and Rural Development.

The highest rating has five stars.

On May 6 the province recognised 36 new four-star products.

Its OCOP products include food and beverages, handicrafts, herbal products, and rural tourism services.

The programme has helped improve the value of products and rural incomes, and promoted the role of the community in preserving and developing traditional products, according to the department.

It has helped develop many farming areas for producing clean materials and using technologies.

It has helped OCOP producers sell more and get higher prices.

Nguyễn Thị Trúc Linh, director of the Thuận Duyên Food Company Limited in Tam Bình District’s Tân Phú Commune, said she had been in the programme since its inception and had developed her production establishment into the current company.

In 2020 it registered for recognition for five products (tamarind fish sauce, chilli-garlic-vinegar-sugar sauce, chilli sauce with sesame, seasoned fermented fish, and Thai hot pot sauce) and they were recognised as three-star OCOP products.

She has since improved the quality of her products and packaging and developed a logo and brand name and more new products.

It now has nine three-star and four-star products, according to the director.

Trương Thành Dãnh, director of the department, said the programme promoted many provinces’ products, improved the community’s role, boosted production under value chains, developed start-ups, and promoted the household and rural economy.

OCOP producers should research to improve quality and develop brand names, he said.

Relevant authorities should strengthen advocacy about the programme and its implementation, he added.

According to Nguyễn Thị Diệu Hiền of the Somo Farm Cửu Long Joint Stock Company in Măng Thít District the programme is very meaningful and offers many benefits to participating companies.

It offers them support for trade promotion and advertisement, and is important for them to sell their products.

The Phước Hậu Safe Vegetable Co-operative in Long Hồ District has 35 members and cultivates various kinds of vegetables, mostly herbs, to Vietnamese good agricultural practices standards on 15.5ha, and harvests about 850 tonnes a year.

It grows three herbs recognised as three-star OCOP products.

Trần Văn Hiền, its director, said the recognition would enable the co-operative to introduce its products to consumers in the province and elsewhere.

The co-operative would maintain and improve its product quality to develop sustainably, he promised.

But the achievements notwithstanding, there are also shortcomings such as the small production scale and low management capacity of most OCOP producers and their lack of knowledge of the market economy and value chains, according to the department.

Most co-operatives, co-operative groups and households produce and sell their OCOP products through traders, but the province has many support policies.

Last year it created sites for displaying and selling OCOP products at the provincial coach station in Vĩnh Long City, the monument of late Prime Minister Võ Văn Kiệt in Vũng Liêm District and Coco Home Vĩnh Long tourism house in Long Hồ District.

Vietnamese businesses bring ginseng closer to consumers

The market for food products made from ginseng is growing as the ability of Vietnamese consumers to pay for health-supporting products is increasing.

Đặng Trần Cẩm Vân, an owner of a restaurant specialising in serving dishes containing ginseng in HCM City, said that Vietnamese people today not only want to eat delicious food but also eat to serve their health.

Therefore, her restaurant has developed a series of products combining the use of ginseng such as phở, coconut candy, coffee and drinks with the expectation of sales increasing by 10-15 per cent per year.

Dr. Hà Thị Loan, deputy director of HCM City Biotechnology Centre, said cooking ginseng into dishes does not cause them to lose nutrients, as diners can completely absorb the nutrients in the ginseng.

"Việt Nam's Ngọc Linh Ginseng is classified as one of the four leading rare ginseng species in the world with high saponin content. Ngọc Linh Ginseng has been proven to increase vitality, prevent cancer, stress and depression. Therefore, it is necessary to invest in technology to increase output, lower costs as well as process more products suitable for the majority of consumers."

Localities with suitable natural conditions for cultivating and developing ginseng are Quảng Nam, Kon Tum, Gia Lai, Lâm Đồng, Thừa Thiên - Huế, Nghệ An, Lào Cai, Lai Châu and Điện Biên.

Việt Nam will focus on developing large-scale Vietnamese ginseng raw material areas in Quảng Nam, Kon Tum and Lai Châu provinces.

Nguyễn Tấn Liêm, chairman of Kom Tum Province's Department of Agriculture and Rural Development, said that the province has an area of about 2,400 hectares of Ngọc Linh Ginseng growing.

The province is focusing on implementing solutions to protect brands and manage product quality, as well as preventing intellectual property infringement and trading of fake Ngọc Linh Ginseng.

"We are connecting with scientists and research centres to process many high-value products from Ngọc Linh Ginseng to improve economic efficiency for farmers, co-operatives and businesses."

Lương Trọng Khoa, Founder of Vinapanax Việt Nam Ginseng Joint Stock Company (Vinapanax), said that the current processing and usage of Ngọc Linh Ginseng mainly follows the traditional method of slicing, using directly or mixing in drinks. Not many businesses have applied high technology to the processing of Ngọc Linh ginseng.

Vinapanax has cooperated with the Institute of Medicinal Technopreneurship and Advanced Training (IMTAT) to develop products from Ngọc Linh Ginseng.

The company uses ultrasonic technology to extract all the precious essence of ginseng, with an average recovery rate of 1kg of essence from 10kg of fresh Ngọc Linh Ginseng raw materials grown for six years or more.

The resulting extract will be brought into the factory to be mixed with other ingredients such as cordyceps, lotus seeds, and bird's nest to produce many different products, Khoa said.

To promote ginseng and ginseng products, from May 24 to 26, the City will organise the first International Ginseng and Fragrance and Medicinal Herbs Festival.

The event will have many delicious dishes made from ginseng and medicinal herbs will be introduced. Among them, the most unique dish is bánh xèo mixed with ginseng.

Permanent deputy director of the city Department of Foreign Affairs Lê Trường Duy said Việt Nam is still weak in positioning its ginseng in the international market. This festival aims to provide opportunities for domestic businesses for international co-operation and learning about ginseng farming, processing and exporting.

Southern localities promoting sea-based economic development

Southern localities have made numerous strategies toward stable and sustainable marine economic development so as to make the most of their advantages related to aquaculture, tourism, seaport and oil and gas exploitation.

Recently, the Prime Minister approved a decision on the planning of Kien Giang province in the 2021-2030 period, with a vision to 2050, in which Kien Giang will strive to become a strong marine economic centre of the country.

According to Vice Chairman of the provincial People's Committee Le Quoc Anh, the province, which boasts over 140 islands, and a fishing area of more than 63,200 sq.km, holds a key position for fisheries in the Mekong Delta and the whole country, and has great potential to develop the marine economy.

With numerous high-value aquatic species, Kien Giang determined that the marine economy will be the main development orientation, with focus on effective and sustainable development of marine aquaculture in an industrial, modern direction, said Anh.

Like Kien Giang, the southernmost province of Ca Mau is also aiming to be a key marine economic development locality.

Le Van Su, Vice Chairman of the provincial People's Committee, said that the province strives to build modern and smart fisheries, agriculture and forestry, and develop production links following the organic eco-agricultural value chain.

Attention will be paid to developing high-tech, effective and sustainable marine farming, applying science, technology and innovation in post-harvest preservation and deep processing to increase the added value of seafood.

In addition, Ca Mau has a strategy to protect resources and the ecological environment, and firmly ensure national defence, security and sovereignty over the country’s sea and islands. It is also focused on sustainable development and management of the marine economy in an integrated and interdisciplinary manner with the engagement of the residential and business communities.

Meanwhile, the southern province of Ba Ria-Vung Tau has formed a seaport system classified as special national ports. The locality boasts Cai Mep Thi Vai - one of the 20 deep-water ports with the biggest exploitation potential in the world. The port is capable of receiving ships of more than 200,000 tonnes, making it convenient for Ba Ria-Vung Tau to develop maritime transport in the region in particular and Vietnamese logistics in general.

According to the provincial People's Committee, to take advantage of and promote efficiency of the seaport system, the province has also planned and built a system of industrial parks linked with seaports. To date, it has 15 industrial parks with a total area of about 8,510 hectares.

Secretary of Kien Giang’s Party Committee Do Thanh Binh said that the province currently has favourable policies to develop the province’s waters, islands and coastal areas so as to become a key economic zone with seaports of international scale to facilitate trade with regional and international partners.

At the same time, it will apply preferential mechanisms and policies related to foreign and domestic investments in Phu Quoc – its most famous island.

To date, Phu Quoc has attracted 286 investment projects worth over 375 trillion VND (14.7 billion USD) in total. Of them, 47 have been put into operation, and construction is underway on 78 others./.

Vietnam, Russia step up cooperation in oil and gas exploration, exploitation

A delegation from the Petrovietnam Exploration Production Corporation (PVEP), led by Chairman of the PVEP Members Council Tran Quoc Viet, on May 24 held a working session with their colleagues of Russia's Zarubezhneft JSC in Russia to discuss potential cooperation areas.

The Vietnamese side praised the technical capabilities of Zarubezhneft and its affiliated petroleum research exploration institute VNIINeft.

PVEP and VNIINeft have significant potential for future joint projects, given the latter’s history of supplying products to Vietnam, Viet said.

In response, Vyacheslav Terentyev, Deputy Director General for Business Development at Zarubezhneft, introduced the company’s new development directions, including geothermal energy, import substitution, and digital transformation.

At the event, a memorandum of understanding was signed between VNIINeft and PVEP’s technical centre (PVEP - ITC) to concretise their cooperation opportunities.

On the same day, the delegation met with leaders of RusVietPetro, the most successful overseas oil and gas joint venture of the Vietnam Oil and Gas Group (Petrovietnam). RusVietPetro exploits about 3 million tonnes of oil annually, contributing substantial foreign exchange earnings of Vietnam./.

VinFast recalls more than 2,000 cars for error correction

Vietnam’s leading electric vehicle manufacturer VinFast has announced a recall of 2,097 cars in the country to check and replace components for free.

The recall is applicable to VFe34, VF5 Plus, VF6 Plus, VF8 and VF9 models, VinFast said in an announcement.

Among the 2,097 affected cars, 23 of the VFe34 and 131 VF5 Plus models were manufactured from September 9, 2023 to April 11, 2024. Their bolts securing the cover plate above the high-voltage battery may become loose, leading to the risk of reducing water resistance.

The recall programme lasts from May 24 to July 10, and it will take the engineers nearly four hours to fix the error.

For 47 VF6 Plus cars, produced from March 18 to April 9, the brake fluid pipe connector may crack, causing brake fluid leakage.

When the brake fluid level drops below the minimum threshold, a warning will appear on the control screen and this will reduce the effectiveness of the braking system.

The error is expected to be fixed in two hours.

Meanwhile, 1,134 vehicles of the VF8 and VF9 (Eco and Plus models) manufactured from August 2022 to March 2024, may be equipped with airbags of the wrong type in certain locations. After the vehicle runs for about 10,000 km, an airbag error warning will appear on the screen, requiring an inspection.

Currently, VinFast has reported the recall programme to the Vietnam Register and it will notify each affected vehicle owner.

Hà Nội sees recovery in low-rise property prices but apartment prices fall

Low-rise real estate prices in the suburbs are expected to show strong growth, especially after the Land Law is effective from July 1.

According to a survey conducted by PropertyGuru Vietnam Company, from the second half of April, the liquidity of the Hà Nội apartment market showed signs of slowing down.

For some projects, the number of apartment transactions in April was only about half compared to last month. Meanwhile, apartment prices also slowed compared to March with the main reason being that buyers are afraid of too high prices.

According to experts, apartment prices in Hà Nội are now at a level which the market is struggling to absorb. The price of apartments in the suburban areas has been pushed up to VNĐ80-100 million per sqm.

That leads to buyers and investors turning away from top priced apartments, so the prices should be forced lower.

It has also led to real estate buyers and investors focusing on the lower rise properties in the suburbs, places where prices have not been pushed so high in Q1.

According to Lê Thị Bích Ngọc, deputy general director of Trường Sơn Real Estate Joint Stock Company (Trường Sơn Land), sharp price rises in villas and townhouses on the outskirts of Hà Nội have been pushed up by a large number of real estate investors focusing on this market.

Investors now are gradually coming back Hà Nội to look for investment opportunities.

The increasing demand for these kind of areas is expected to carry on until the end of the year.

Ngọc said the low-rise property segment in the future will have sharp increase in input costs of investment projects. The cost of land prices will be closer to the market price after the Land Law 2024 takes effect from July 1, pushing up the cost of land use fees for businesses.

The real estate prices in suburban districts of the capital, such as Gia Lâm, Đông Anh and Hoài Đức have risen significantly over the past four years as many large projects have begun in the same area.

This has been matched by price rises in many other suburban districts like Đan Phượng, Mê Linh and Thanh Trì which have also attracted investors.

The districts of Hà Nội, Thường Tín and Phú Xuyên suburban districts are particularly attractive after the city finalised the nearby second airport plan.

Along with that, the industrial real estate wave in those districts is also attracting investment from large businesses.

Before having those plans, Thường Tín real estate prices only increased slightly each year with rises modest.

For example the sale price of apartments at the Him Lam Thường Tín project, those with the most beautiful location are only around VNĐ100 million per sq.m, while similar projects in Gia Lâm, Đông Anh and Hoài Đức suburban districts are priced at between VNĐ150-170 million per sq.m.

According to the development planning of the 2021-2030 period, with a vision to 2050, the urban area in the south of Hà Nội will become a centre of hi-tech and smart agriculture and a major logistics hub connecting the southern region of Việt Nam. This area has the suburban districts of Thường Tín, Phú Xuyên, Ứng Hòa, Thanh Oai and Mỹ Đức.

According to investors, once Thường Tín becomes an industrial centre and also a major logistics hub to the south of Hà Nội, this district will lead the price rises.

The prices of low-rise housing is forecast to double compared to current prices in this district, especially in projects that are well-planned and developed by reputable investors. 

Cities, industrial areas need more social housing available for rent

More support is needed to attract investors into the development of social housing to rent to low-income workers.

Currently, demand for social housing is very high, especially in urban areas, big cities and provinces with high industrialisation rates. But some projects are unoccupied despite the shortage of social housing, due to workers' lack of financial ability and the fact that many do not need to buy their own home.

Most workers rent instead of owning their houses, as they either can't afford to — or do not need to — purchase properties.

According to a survey conducted by the HCM City Labour Confederation, about 60 per cent of surveyed workers only require rental housing, paying around VNĐ1.5 million per month.

The workers also said that they plan to work for 10 to 15 years in localities before returning to their homes outside of urban centres.

Experts said that low-income workers need to rent social housing instead of owning houses for the long term. One proposed solution is to build more social housing projects for rent. This requires more supportive policies to attract more investors into the rental housing segment.

A project to construct 244 rental apartments in Hà Nam province is currently drawing interest from workers looking to rent homes.

Economic expert Đinh Trọng Thịnh said that social housing projects like the one in Hà Nam are promising.

Property developers could learn lessons from this project to build more social housing to meet the needs of workers, he said.

However, investors are not interested in building rental housing for workers and low-income people, because even developing social housing projects for sale is unattractive for them, according to Thịnh.

Trần Khánh Quang, General Director of Việt An Hòa Real Estate Company, said that there are not many businesses developing social housing projects because of problems in administrative procedures or low profits.

Therefore, according to Quang, new policies are necessary to incentivise developing social housing both for rent and for sale.

Lê Hữu Nghĩa, General Director of Lê Thành Production and Trading Company Ltd., said that for social housing — and particularly in the rental segment — incentives from the State play a decisive role.

Low profits from developing social housing do not encourage businesses to invest in this segment. Administrative procedures are also big problems for the businesses, Nghĩa said. 

Vietjet opens two new routes to Taiwan

Vietjet opens two new routes connecting Taichung and Kaohsiung (Taiwan, China) with the Pearl Island of Phú Quốc in Việt Nam, responding to the travel, discovery, and experience demands of the people and tourists.

The Phú Quốc-Taichung route will serve passengers from June 13, 2024, with three return flights per week every Tuesday, Thursday, and Saturday.

Meanwhile, the Phú Quốc-Kaohsiung route will be inaugurated on June 14, 2024, operating four return flights per week on Monday, Wednesday, Friday, and Sunday every week.

Tickets for flights on the two routes are available for sale on all of Vietjet’s official booking channels, according to Vietjet.

It added that passengers can easily book tickets priced from only zero đồng every Friday with the flight time from now until December 31, 2024. These discounted tickets are applied for all international routes on www.vietjetair.com and Vietjet Air mobile app.

The Pearl Island of Phú Quốc is the top tourist destination in Việt Nam with its stunning long beaches including Sao Beach, Rạch Vẹm, as well as famous attractions such as Hòn Thơm Nature Park, Kiss Bridge Phú Quốc, and Hàm Ninh fishing village.

Meanwhile, Taiwan (China) is a wonderful choice for tourists who love discovery, with Taichung - a place of beautiful scenery, or Kaohsiung - a peaceful coastal city with a strong Southern Taiwanese cultural identity. 

Visa partners with e-wallets in Việt Nam

Digital payments provider Visa on Friday announced a new partnership with three of the most popular e-wallets in Việt Nam - MoMo, VNPAY and ZaloPay - to provide a more convenient payment experience for Visa cardholders at participating small and medium enterprises (SMEs).

With this new partnership, Visa cardholders will be able to use their Visa cards as a source of funds when making purchases at merchants currently offering payments via the three e-wallets’ QR.

This collaboration is poised to drive Việt Nam's transition to a cashless society, by offering innovative, contactless, and cashless digital payment solutions benefiting both businesses and consumers, the company said.

Đặng Tuyết Dung, Visa Country Manager of Việt Nam and Laos, said: “Visa is thrilled to be partnering with the top e-wallets in Việt Nam to make secure and efficient payment methods available to anyone, anywhere in the country."

"As Việt Nam continues its journey in becoming a cashless society, this success will be driven by SMEs being able to embrace innovation and provide consumers with the latest digital payment solutions. SMEs form a large part of Vietnam’s economy, and this collaboration is key in the push for digital and financial inclusion in Việt Nam.”

Integrating Visa as a source of funds in three of the most popular e-wallets in Viet Nam will benefit both businesses and consumers. For SMEs, this will likely fuel sales, help them expand their customer base, and provide a better customer experience as consumers now have more digital payment options to choose from.

Meanwhile, Visa cardholders can also enjoy existing promotions and benefits offered by their banks, such as cashback, discounts, or accruing miles.

According to a FiinGroup’s report, Việt Nam is set to reach 50 million active e-wallets by the end of 2024, a 40 per cent increase from 2023.

This growth is driven by the momentum observed in recent years where consumers are drawn to the ease of use, seamless experiences, multi-services offered, and the security and speed of the transactions. This is in line with recent trends where consumers are increasingly embracing cashless forms of payments in Việt Nam.

According to Visa’s Consumer Payment Attitudes study 2023, 88 per cent of respondents have attempted to use cashless payments and 62 per cent of Vietnamese consumers use QR to pay, up from 35 per cent in 2021.

Through collaboration, Visa reaffirms its commitment and efforts to drive digital payment adoption and digital transformation towards an inclusive financial future in Việt Nam.

Aligned with the Government's shared vision and common objectives towards a cashless society, Visa is set to continue its partnership with the annual "Cashless Day" event for the sixth consecutive year. 

Sơn La Plum and Agricultural Product Festival opens in HCM City

The Sơn La Plum and Agricultural Product Festival opened on Saturday at Co.opmart Huỳnh Tấn Phát in HCM City’s District 7, marking the start of a series of activities to promote consumption of the province’s specialties at Saigon Co.op's 800 points of sale nationwide from May 24 to June 1.

This is the first time Saigon Co.op has made trade connections with the Northwest province.

Saigon Co.op is expected to sell 100 tonnes of Sơn La plums which are grown in Mộc Châu and Yên Châu districts during the festival.

The plums, which meet food hygiene, safety and VietGAP standards, and have origin certification, are being discounted to only VNĐ29,900 per kilogramme at Co.opmart and Co.opXtra supermarkets.

In addition to reserving prime places for displaying Sơn La agricultural products, Co.opmart and Co.opXtra have also organised samplings of fresh plums and products processed from plums such as jams, syrups and soft dried and dried plums.

On the first day of the programme (May 24), Co.opmart, Co.opXtra, and Co.op Food sold more than 10 tonnes of the fruits. Customers appreciate the plums for their sweetness, crunchiness, and flavour, and eye-catching bright red colour.

Saigon Co.op has carefully prepared, from warehouses, transportation, preservation to distribution, Vietnamese agricultural products in general and Sơn La plums in particular to ensure their freshness and quality when they enter into its distribution system.

Besides that, a range of Sơn La agricultural products and items made under the national “One Commune, One Product” programme such as longan, yellow passion fruit, coffee, tea, dried longan, black garlic, arrowroot vermicelli, smoked buffalo meat and pork, dried bamboo shoots, lingzhi mushrooms and chẩm chéo (a special salt made by the Thái people) are on display and available for sale at Co.opmart and Co.opXtra.

Expanding the supply of the Northwest provinces’ products helps Saigon Co.op diversify its goods portfolios and ensure a sustainable supply and competitive prices so that mountainous specialties can reach many customers.

Speaking at the opening ceremony, Nguyễn Thành Công, vice chairman of the provincial People's Committee, highlighted the significance of the event, stating that, “Bringing Sơn La plums into Saigon Co.op’s distribution system nationwide is a significant channel for the product to reach consumers nationwide, raising the Son La Plum brand’s value and positioning. This is also the most concrete activity under the co-operation between Sơn La Province and Saigon Co.op."

Nguyễn Anh Đức, Saigon Co.op’s general director, said: "More than 90 per cent of goods being sold at Saigon Co.op's distribution systems are Vietnamese goods, including more than 1,000 OCOP products from businesses and co-operatives nationwide. We always support and are ready to co-operate with agricultural, industrial and handicraft production establishments to create opportunities for brand promotion, market expansion and business development .”

Saigon Co.op is always a pioneer in market stabilisation, and serves as a bridge to promote consumption of high-quality Vietnamese goods, OCOP products, and local specialties to consumers nationwide.

Bringing Sơn La plums into Saigon Co.op’s distribution system nationwide is a result of a close co-operation between distributors, manufacturers and local authorities, Đức said.

The retailer will continue to organise similar festivals to promote consumption of Vietnamese agricultural products, and increase the customer experience when visiting and shopping at Co.opmart, Co.opXtra, he added. 

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