The northern province of Bac Giang is expected to export about 96,000 tonnes of lychee in this year’s crop. — Photo nongnghiep.vn

The northern province of Bac Giang is expected to export about 96,000 tonnes of lychee in this year’s crop, accounting for about 53 per cent of output and up 15.2 per cent compared to last year’s crop.

Its main export markets are China, EU, the US, Australia, Japan, Korea, some countries in Southeast Asia and the Middle East.

This year, 84,000 tonnes of lychee is expected to be sold in the domestic market, accounting for 46.7 per cent of total output.

The lychee consumption channel is through distribution traders, wholesale markets, traditional markets, commercial centres, supermarket systems, major domestic and international e-commerce platforms and social network platforms. 

Over 5,000 tonnes of fresh lychee shipped to China via Lao Cai border gate

As many as 5,400 tonnes of fresh lychees have been exported to China via Lao Cai province’s Kim Thanh II international border gate since the beginning of the harvesting season, according to Pham Van Phuc, deputy head of Customs Office at Lao Cai International Border Gate.

He said that all shipments of fresh lychee arriving at the border gate are given priority to be cleared before other types of goods, adding that the office strives to provide the best condition for exporters to speed up customs clearance.

To support the export of the fruit, the Management Board of Lao Cai Border Economic Zone has directed units at the border gate to arrange for staff to begin shifts early to ensure all procedures are completed within one day. Ahead of the lychee season, the board held discussions with the Chinese side to tackle obstacles to facilitate the export of Vietnamese agricultural products. 

Hoang Minh Du, deputy head of the border station based at Kim Thanh II Border Gate, said that said before the lychee season, the unit had devised a plan to regulate traffic and asked soldiers on duty at the border gate to give priority to trucks carrying lychee fruit. When vehicles arrived at the border area, they were guided to avoid traffic jams even during peak times. The unit also informed businesses about export-import-related procedures as required by the Chinese side so as to avoid affecting the progress of goods clearance.

According to the Lao Cai Economic Zone Management Board, nearly 29,000 tonnes of lychee from the northern province of Hai Duong and Bac Giang is anticipated to be exported to China this year.

The volume of the exported fruit will increase in the coming days as lychee enters its main season. It is expected that 50-70 trucks carrying lychee fruit will go through Lao Cai border gate to China each day from June 10.

Vietnamese firms participate in biggest food exhibition in RoK

More than 30 Vietnamese businesses are showcasing their products at a food exhibition in the Republic of Korea (RoK), which opened on May 30.

As the largest food exhibition in the East Asian nation, Seoul Food 2023 gathers 1,500 companies from 30 countries with up to 2,500 booths. The four-day event offers an opportunity for the food and beverage industry of the RoK and other participating countries to seek cooperation opportunities.  

The Vietnamese booth displays products of big brands like Masan, Vinamilk and Huu Nghi, attracting crowds of Korean importers, distributors and consumers.

Pham Hong Son, Deputy General Director of Masan Consumer Corporation, said Vietnamese cuisine has been favoured in the RoK, noting that the increasing number of businesses investing in products for the market has demonstrated the firm foothold of Vietnam’s big brands in the country.

The RoK is now Vietnam’s third biggest trade partner, after China and the US, with two-way trade reaching about 88 billion USD in 2022, which is expected to increase to 100 billion USD this year.

Vietnam mainly exports garment-textiles, agricultural and aquatic products, and food to the RoK.

Each year, the RoK imports some 40 billion USD worth of food, of which only 5% is from from the Southeast Asian nation. Therefore, ample room still remains for Vietnamese food exporters to the market.

Saigon Hi-Tech Park partners with US firm to improve IC design capability

The Saigon Hi-Tech Park (SHTP) in Ho Chi Minh City and Cadence Design Systems, a multinational computational software company of the US, on May 30 signed a memorandum of understanding on cooperation in developing electronic design manpower and promoting the semiconductor industry in Vietnam.

Under this partnership, Cadence, a world leading company in electronic design, can provide integrated circuit (IC) design software tools and related training programmes for universities in HCM City via its academic network.

Nguyen Anh Thi, head of the SHTP management board, said the cooperation with Cadence will give local students a chance to access the latest technologies and methodologies in IC and system design, and acquire practical experience that will help them succeed in the high-tech industry. It will also help strengthen the capability of the SHTP Chip Design Centre, thus contributing to the local semiconductor industry.

Michael Shih, Corporate Vice President of sales for Asia-Pacific and Japan of Cadence, said his company cooperates with the SHTP and universities to help develop electronic design manpower in Vietnam. By providing access to its software, the firm aims to equip the next generation of engineers with the skills they need to contribute to the growth of the high-tech industry in Vietnam.

Addressing the signing ceremony, Deputy Minister of Science and Technology Tran Van Tung said foreign businesses value Vietnam’s development potential, noting that the SHTP’s focus on training IC design manpower is the right direction for creating high-quality human resources for industries in the time ahead.

Duong Anh Duc, Vice Chairman of the HCM City People’s Committee, said the city is now a potential destination for foreign investors, including those in the electronics and IC industry. As global supply chains are shifting, the SHTP should ready high-quality human resources to attract investment in this sector.

US extends duties investigation into plywood from Vietnam

The US Department of Commerce (DoC) has announced that it will extend the deadline for issuing its final conclusion on an anti-dumping tax evasion investigation into plywood imported from Vietnam, according to the Ministry of Industry and Trade's Trade Remedies Authority. 

Accordingly, the DOC plans to issue the conclusion on July 14. This is the eighth time the DOC has extended the deadline.

Previously, the DOC announced the preliminary conclusion of the case on July 25 last year. It said that plywood imported from Vietnam into the US, which had a core using peeled board imported from China, would be subject to anti-dumping and anti-subsidy tax as applied to plywood imported from China.

Plywood from Vietnam which has a core using peeled boards manufactured domestically or in other countries would be exempt from the tax.

The DOC allows Vietnamese enterprises that cooperate in the investigation process to self-certify that they do not use Chinese materials so as not to be subject to measures.

According to calculations of the sector, the number of enterprises participating in self-certification accounts for about 80% of Vietnam's export turnover during the investigation period.

VN among world’s earliest in banking digital transformation: forum

Vietnamese banks are among the earliest in the world to make the digital transformation, experts have said.

Speaking at the Financial Services – Retail Banking Forum in HCM City last Friday, Vu Viet Ngoan, former chairman of the National Financial Supervisory Commission, said the habit of using digital products had become more prevalent than ever in Viet Nam.

More than 30 per cent of the population uses banking apps, second globally only after China (41 per cent), according to Ngoan.

Viet Nam’s banking and financial sectors would continue to play a key role in establishing a “fully digitised, human-centred system”.

He also pointed out that the digital transformation in the country would be an important process of how banks and financial institutions analyse, interact and satisfy their customers.

The government has set a target of increasing financial inclusion to cover more than 80 per cent of the adult population by 2025.

Phan Thanh Duc, dean of the management information system faculty at the State Bank of Viet Nam’s (SBV) Banking Academy, said Viet Nam had recorded a surge in digital payment everywhere from online marketplaces to small convenience stores and even vegetable and fruit vendors.

Le Duc Anh, director of the Ministry of Industry and Trade’s Centre for Information and Digital Technology, pointed out that technologies such as blockchain, AI, cloud computing, machine learning, and customer data collection, management and analysis were being adopted.

The banking sector had invested over VND15 trillion (US$639.22 million) in digital transformation as of the end of last year, according to a report by the SBV.

Digital payments have been growing at 40 per cent for the last four years, one of the world’s fastest digital transformation rates.

According to the report, more than 95 per cent of Vietnamese banks have a digital transformation strategy.

Around 90 per cent of banking transactions are handled through digital channels with 74.6 per cent of adults having a bank account.

As of March around 3.71 million mobile money (or mobile payment) accounts had been opened, over 70 per cent in rural, remote and disadvantaged regions across the country.

Non-cash payments have also seen significant growth, with 82 credit institutions offering internet-based payment services and 51 offering mobile payment services as of the end of last year.

There are 48 licensed intermediary payment organisations.

Digital transformation has helped banks bring down the cost-to-income ratio to 30 per cent, on par with regional and international standards.

But experts say the legal framework for digital financial services is inadequate.

It is vital to improve institutional frameworks and upgrading infrastructure, they say.

The lack of human resources with up-to-date skills is another major challenge to digital transformation, they warn.

Organised along with the forum was a fair introducing the advancements needed for the financial industry’s digital transformation.

The event was hosted by the Vietnam Association of Securities Business, the Vietnam Digital Communications Association, and the International Data Group.

HDBank, IFC tie up to expand supply chain financing activities

HDBank and the International Finance Corporation have signed an agreement under which the latter will provide consultancy for the lender to expand its supply chain financing, which will serve as a basis for upgrading and expanding its value chain financing platform.

This is one of the key projects in HDBank's development strategy for 2021-25.

Under the agreement, IFC, a member of the World Bank Group, will help HDBank analyse its potential portfolio and orient specialised financing product lines to improve its existing supply chain financing (SCF), grow its financing scale and train a team of experts in the field.

With more than 3,600 firms involved in the supply chain of 50 "core" enterprises in seven potential financing fields at HDBank, expanding the value chain is one of the most important strategic initiatives in the bank’s overall strategy in 2021-25, which also includes digitising customer journeys through a transaction banking/fintech platform, improving the consulting capacity of the leadership team and adopting the best domestic and international best practices.

Its SCF reached nearly VNĐ20 trillion (US$854.36 million) by the end of last year, with an annual growth rate of more than 35 per cent , and has been linked with many global value chains.

In May last year, in Washington DC, HDBank and IFC signed a memorandum of understanding to help Vietnamese small and medium businesses access innovative funding, enabling them to better take part in global supply chains.

Ulsan businesses seek cooperation with Vietnamese firms

The Korea Trade and Investment Promotion Agency (KOTRA Hanoi) has successfully arranged a direct trade event (1:1) between a business delegation from Ulsan City and Vietnamese importers in Ha Noi this week.

The event showcased the products of Ulsan City, with manufacturers/suppliers presenting their strong offerings, including cosmetics, agricultural goods, and industrial chemicals and supplies.

According to the organiser, given the ongoing recovery period after the COVID-19 pandemic, the Korean business delegation has garnered significant attention from Vietnamese importers seeking to explore new import opportunities from Korea.

"This is our third visit to Viet Nam in search of collaboration opportunities. Viet Nam, with its high growth rate in Southeast Asia, possesses strengths in agricultural production and export. We believe that Evergreen Plus' organic fertiliser products have great potential in the Vietnamese market to meet the stringent quality requirements of the discerning Vietnamese consumers," said Park Jeong Ok, Director of Evergreen Plus Company.

During the event, more than 20 Vietnamese enterprises engaged in nearly 40 trade deals, successfully identifying suitable Korean suppliers.

Dang Thanh Thuy, Director of LITANHA Vietnam Pharmaceutical Joint Stock Company, said: "Viet Nam and Korea have established a reputable trade partnership over the years, and Korean products are gaining popularity among Vietnamese consumers. This is my third trade show with Korean businesses and within the framework of this event, I have encountered numerous Korean manufacturers who offer immense potential for cooperation."

In the first five months of 2023, KOTRA Hanoi has organised 25 direct and online trade events between Korean business delegations and potential Vietnamese importers.

Tran Thi Hai Yen, Head of KOTRA, emphasised the importance of strengthening trade promotion as a key activity to contribute to achieving the target of US$100 billion in Viet Nam-Korea trade turnover by 2023. 

Ample room remains for Vietnamese exports to Africa

There remains an ample room for Vietnamese exports to Africa, according to the Ministry of Industry and Trade, given opportunities brought about by the African Continental Free Trade Area (AfCFTA) agreement.

There remains an ample room for Vietnamese exports to Africa, as the country accounts for only 0.6 percent of the continent's total import of US$600 billion per year, according to the Ministry of Industry and Trade, given opportunities brought about by the African Continental Free Trade Area (AfCFTA) agreement.

The Asian-African Market Department said that trade between Vietnam and Africa increased from $2.52 billion in 2010 to $5.5 billion in 2022. Of the total, Vietnam’s exports were valued at more than $2.8 billion, resulting in a trade surplus of $226.3 million.

Vietnam mainly shipped rice ($568.6 million ), phones and component parts ($355.6 million), computers and electronic products ($210.4 million ), and footwear ($141.8 million ) to Africa. Meanwhile, it bought cashew nuts ($1.1 billion ), metals ($484.1 million), and wood and wood products ($114.3 million) from this continent.

In the coming time, to facilitate intra-bloc trade, African nations will pour more capital into infrastructure facilities, thus opening up more opportunities for Vietnamese goods to access more markets, including 15 landlocked countries, in Africa. At present, Vietnam’s main export markets in the region are major economies with seaports such as South Africa, Egypt and Nigeria.

Countries around the world are planning to study, negotiate and sign international trade agreements, especially free trade agreements (FTAs), with the African Continental Free Trade Area. This will help them save time negotiating with individual countries or regions (Africa currently has 55 countries divided into eight economic regions). In fact, African countries have quite similar production structures, mainly primary products such as crude oil, raw agricultural products, minerals, and precious metals, according to the ministry.

Even if the AfCFTA agreement takes effect across the region, the continent still cannot guarantee the supply of machinery, equipment, rice, textiles, footwear, and processed aquatic products; and still has to depend on imports from foreign countries. Therefore, there remains huge potential for Vietnam to export its key commodities such as rice, coffee, garment and textiles, footwear, and aquatic products to Africa.

Vietnam can increase its exports of textile, leather and footwear products to Africa by promoting competitive advantages such as low labor costs, good sewing techniques, and high quality products, if the nation or the Association of Southeast Asian Nations (ASEAN) negotiates a trade agreement with the AfCFTA, the ministry said.

The AfCFTA is the world’s largest free trade area bringing together the 55 countries of the African Union (AU) and eight Regional Economic Communities (RECs).

The overall mandate of the AfCFTA is to create a single continental market with a population of about 1.3 billion people and a combined GDP of approximately $3.4 trillion.

Gov't approves strategy on Viet Nam's rice export market development

Deputy Prime Minister Le Minh Khai has signed a decision approving a strategy on Viet Nam's rice export market development until 2030.

The strategy aims to develop and diversify rice export markets with a reasonable, stable, and effective scale, market and product structure; consolidate traditional and key export markets; and develop new and potential export markets, including FTA markets.

It targets to increase market share of Vietnamese rice in export markets, especially developed countries.

Accordingly, the structure of Viet Nam's rice exports is continuing to shift from quantity to quality, focusing on high-quality rice with higher selling price and added value.

Specifically, Viet Nam will only export around 4 million tons of rice by 2030, gaining US$2.62 billion. The average export growth rate will decrease by about 2.4 percent in 2023-2025 and 3.6 percent in 2026-2030.

The proportion of rice exports with brand names will be increased to over 20 percent during 2023-2025 and over 40 percent in the 2026-2030 period.

Besides, Viet Nam targets to increase the rate of rice directly exported to markets and rice distribution systems of countries to 60 percent.

About 25 percent of exported rice is expected to bear the brand name of Viet Nam rice by 2030.

It is expected that, by 2030, the export of rice in the Asian market will account for 55 percent of total export turnover, 23 percent in the African market, 5 percent in the Middle-Eastern market, 5 percent in the European market, 8 percent in the American market and 4 percent in the Oceanian market.

According to the General Statistics Office, in 2022, Viet Nam's rice export turnover reached 7.1 million tons with a value of US$3.46 billion, an increase of 13.8 percent in volume and an increase of 5.1 percent in turnover compared to the same period in 2021.

The nation earned US$1.56 billion from shipping 2.95 million tons of rice abroad in the first four months of this year, increases of 54.5 percent and 43.6 percent, respectively, year-on-year.

Viet Nam is the world's third-largest rice exporter, after India and Thailand.

FDI inflow bounces back thanks to investors’ growing confidence

As of May 20, Viet Nam attracted US$10.86 billion in foreign direct investment, reported Foreign Investment Agency (FIA), under the Ministry of Planning and Investment.

During January-May, the total registered capital was worth over US$5.26 billion, up 27.8 percent year-on-year while the total additional registered capital was estimated at US$2.28 billion, down 59.4 percent.

Meanwhile, the capital contributions and share purchases by foreign investors reached nearly US$3.32 billion, up 67.2 percent.

The FIA said that the achievements are thanks to foreign investors' growing confidence in Viet Nam's investment environment.

In five months, the disbursement of FDI hit US$7.56 billion, down 0.8 percent.

During the reviewed period, foreign investors poured funds into 18 industries out of a total of 21 national economic sectors.

Of which, the processing and manufacturing industry continued to lead with a total investment of nearly US$6.64 billion, accounting for nearly 61.2 percent of the total registered investment capital.

The finance and banking sector ranked second with total investment capital of more than US$1.53 billion, accounting for 14.1 percent of total registered investment capital.

It was followed by real estate and science-technology with US$1.16 billion and US$481 million, respectively.

Regarding investment partners, 82 countries and territories invested in Viet Nam in the first five months of this year. Among which, Singapore led with a total investment capital of more than US$2.53 billion, accounting for 23.3 percent of total investment capital in Viet Nam. Japan was the runner-up with nearly US$2.1 billion, accounting for nearly 19.1 percent.

By investment location, the capital city of Ha Noi was Viet Nam's top locality for FDI attraction in the first five months of 2023 with US$1.87 billion, making up 17.2 percent, followed by Bac Giang Province, Ho Chi Minh City, Binh Duong Province and Dong Nai Province.

Measures suggested to guarantee corporate bond market’s stability

Several measures have been suggested at an online seminar held by the Government Portal on May 28 to help the corporate bond market maintain its stability and operate in line with law to aid economic growth.

The corporate bond market is a big source of capital for the economy. In the latter half of 2022, a “psychological” shock was recorded in the private placement segment following many violations uncovered by authorities.

The Government, the Prime Minister and management agencies have made many important decisions to stabilise the market, ensure its compliance with law, and enhance people’s trust to support the economy.

Speaking via videoconference, Assoc. Prof. Dr Vu Minh Khuong, a lecturer at the Singapore-based Lee Kuan Yew School of Public Policy, said to help enterprises avoid committing violations, their leaders should gain a thorough understanding of corporate governance, ensure legal issues and rescue response, and conduct annual audits.

It is a highly urgent need to build a foundation for a healthy financial system, he said, expressing his belief that the Government of the current tenure can manage to do that and view current challenges as a chance to make strategic determination to create a good foundation for the time ahead.

Prof. Dr Hoang Van Cuong, Vice Rector of the Hanoi-based National Economics University, held that it’s now the time for increasing resources for businesses, noting companies are sourcing capital mainly from the corporate bond market and bank loans, and enterprises’ stable operations will help maintain macro-economic balance.

He added the bond market requires both capable stakeholders and a legal environment for an ecosystem. Facing the recent “bond crisis”, the Government has taken relatively timely and methodological moves to early prevent the situation from getting worse.

Suggesting ways for shoring up the market, Deputy Minister of Finance Nguyen Duc Chi said it is necessary to issue legal regulations on the bond market and make flexible and effective response to changes in reality.

Recently, the Government issued Decree 65/2022/ND-CP and Decree 08/2023/ND-CP, helping bond issuers and investors to have legal tools and time to settle immediate difficulties in terms of money, liquidity, and collateral, among others basing on the consistent principle of harmonising interests and sharing risks.

Chi said bond issuers must be responsible for their obligations and commitments towards investors. State agencies need to monitor enterprises and the market to ensure that obligations are fulfilled in accordance with law. Meanwhile, investors themselves should also adhere to legal rules so that the State can guarantee the market’s transparency as well as the rights and interests of all stakeholders.

Facing difficulties in the real estate market, the Government has taken many measures to assist bond issuers such as extending debt and tax payment deadlines and reducing lending interest rates. The moves have helped the corporate bond market regain stability, the official went on.

At the seminar, participants also shared views on the stabilisation of macro-balances and the results obtained so far. They perceived that the combination of policies on macro-economic governance, especially the harmonious use of fiscal and monetary policies and an expanded fiscal policy like extending tax payment deadlines, cutting down taxes, and reducing land rents, is critical to macro-economic stability.

Measures suggested to guarantee corporate bond market’s stability

Several measures have been suggested at an online seminar held by the Government Portal on May 28 to help the corporate bond market maintain its stability and operate in line with law to aid economic growth.

The corporate bond market is a big source of capital for the economy. In the latter half of 2022, a “psychological” shock was recorded in the private placement segment following many violations uncovered by authorities.

The Government, the Prime Minister and management agencies have made many important decisions to stabilise the market, ensure its compliance with law, and enhance people’s trust to support the economy.

Speaking via videoconference, Assoc. Prof. Dr Vu Minh Khuong, a lecturer at the Singapore-based Lee Kuan Yew School of Public Policy, said to help enterprises avoid committing violations, their leaders should gain a thorough understanding of corporate governance, ensure legal issues and rescue response, and conduct annual audits.

It is a highly urgent need to build a foundation for a healthy financial system, he said, expressing his belief that the Government of the current tenure can manage to do that and view current challenges as a chance to make strategic determination to create a good foundation for the time ahead.

Prof. Dr Hoang Van Cuong, Vice Rector of the Hanoi-based National Economics University, held that it’s now the time for increasing resources for businesses, noting companies are sourcing capital mainly from the corporate bond market and bank loans, and enterprises’ stable operations will help maintain macro-economic balance.

He added the bond market requires both capable stakeholders and a legal environment for an ecosystem. Facing the recent “bond crisis”, the Government has taken relatively timely and methodological moves to early prevent the situation from getting worse.

Suggesting ways for shoring up the market, Deputy Minister of Finance Nguyen Duc Chi said it is necessary to issue legal regulations on the bond market and make flexible and effective response to changes in reality.

Recently, the Government issued Decree 65/2022/ND-CP and Decree 08/2023/ND-CP, helping bond issuers and investors to have legal tools and time to settle immediate difficulties in terms of money, liquidity, and collateral, among others basing on the consistent principle of harmonising interests and sharing risks.

Chi said bond issuers must be responsible for their obligations and commitments towards investors. State agencies need to monitor enterprises and the market to ensure that obligations are fulfilled in accordance with law. Meanwhile, investors themselves should also adhere to legal rules so that the State can guarantee the market’s transparency as well as the rights and interests of all stakeholders.

Facing difficulties in the real estate market, the Government has taken many measures to assist bond issuers such as extending debt and tax payment deadlines and reducing lending interest rates. The moves have helped the corporate bond market regain stability, the official went on.

At the seminar, participants also shared views on the stabilisation of macro-balances and the results obtained so far. They perceived that the combination of policies on macro-economic governance, especially the harmonious use of fiscal and monetary policies and an expanded fiscal policy like extending tax payment deadlines, cutting down taxes, and reducing land rents, is critical to macro-economic stability.

Vietnam - China border trade activities see rapid recovery

As a major international border gate connecting China with Vietnam, trade activities at Dong Hung (Dongxing) border gate have rapidly recovered over recent times.      

According to the forecast given by local officials, this year’s trade turnover at the border gate may exceed pre-pandemic levels.

Border trade activities going through the Mong Cai international border gate in Vietnam and Dongxing in China has become increasingly brisk once up again.

Cross-border trade and the number of people entering and exiting through Dong Hung border gate is constantly increasing, showing hugely positive signs of recovery after the negative impacts of COVID-19, said Chen Xiao, director of the Dong Hung City Border Gate Service Center in Guangxi, in a recent interview with a VOV reporter based in China.

Goods imported through Dong Hung border market are primarily agricultural and aquatic products, with an average transaction turnover of 80 million yuan, equal to VND 266 billion per day. In particular, January 15 alone saw cross-border trade surpass 110 million yuan, equivalent to nearly 367 billion yuan, for the first time.

Explaining this level of growth, Chen Xiao said that, after China moved to adjust its own anti-pandemic measures, the cost of transporting and exporting goods through Dongxing border gate decreased significantly. In addition, Chinese consumer demand decreased significantly, while the consumer demand of the Vietnamese side also increased sharply.

Furthermore, the Chinese Government is carrying out many policies aimed at reviving rural areas and boosting the development of border areas. These are favourable conditions for both nations as they seek to promote border trade activities with rapid development in the post-pandemic era.

Moreover, according to the Vietnam Ministry of Industry and Trade, in early March Chinese Customs published an updated list of locations eligible to import food according to their regulations.

In particular, Dongxing border gate of China and Vietnam’s Mong Cai border gate in Quang Ninh province officially became eligible for food imports.

Thus, along with the Thuy Khau-Ta Lung border gate pair, the Dongxing-Mong Cai border gate pair has become one of two road border gates with Vietnam that are allowed to import food from Guangxi, with the capacity of monitoring and managing food imported through this area reaching a maximum of 200,000 tonnes per year.

After being put into operation, this will become one of the food import border gates from the country and other ASEAN member states into China to serve the food processing and aquaculture fields of Guangxi and other neighbouring localities.

Five-month CPI up 3.55% on rising electricity retail price

The nation’s consumer price index (CPI) during the first five months of the year edged up by 3.55% on-year, while core inflation rose by 4.83%, according to figures given by the General Statistics Office (GSO).

The CPI in May increased by 0.01% compared with April, marking a year-on-year increase of 2.43%.

Among the 11 main groups of consumer goods and services, eight groups witnessed a rise in price compared to the previous month, while three groups endured a downward trajectory.

The GSO attributed the CPI hike in the January to May period to an 8.39% increase in education services and a pickup of 6.62% in terms of housing and construction material prices.

The rise of electricity retail price was also a factor behind the rise, which contributed 2.59% to the overall growth.

The GSO said that the May core inflation had increased by 0.27% against April and 4.54% over the same period compared to 2022.

In the first five months of the year, the average core inflation increased by 4.83% compared to the same period from last year.

Imports and exports in May enjoy strong growth

Despite the total import export turnover standing at an estimated US$262.54 billion, still down 14.7% over the same period from last year, the import and export turnover in May showed signs of improvement, according to figures released by the General Statistics Office (GSO).

Specifically, the export turnover in May stood at US$29.05 billion, up 4.3% over the previous month. Of the figure, the domestic economic sector reached US$7.79 billion, up 1%, whilst the foreign-invested sector (including crude oil) hit USS21.26 billion, up 5.5% on-year.

Generally, the first five months of the year saw export turnover stand at US$136.17 billion, down 11.6% over the same period from last year.

Rice is one of the export items that has shown many positive signs in the market.

At the end of May, Vietnamese 5% broken rice was offered for sale at US$490 to US$495 per tonne, higher than the figure of US$485 to US$495 per tonne last week.

The main competitor of Vietnamese rice is Thailand's 5% broken rice, which this week is listed at a price of US$5 per tonne higher than Vietnamese rice.

Preliminary data compiled by the General Department of Customs indicates that in May, 213,000 tonnes of rice was unloaded at the Ho Chi Minh City port, with the majority of the rice being shipped to the Philippines, Indonesia, and Africa.

Tran Thanh Hai, deputy director of the Import-Export Department under the Vietnam Ministry of Industry and Trade, emphasised that Vietnamese rice exports have made strong progress over recent times, increasing both in volume and value.

This is especially true over recent months when the export price of rice has always been at a high level, surpassing even that of Thailand and India.

Along with rice, there were 23 products which had an export turnover of over US$1 billion during the five-month period, thereby accounting for 87.4% of the total export turnover, whilst seven export items featured export turnover of more than US$5 billion, thereby accounting for 65.4% of the figure.

Also according to the GSO, the import turnover throughout the reviewed period reached US$26.81 billion, up 6.4% over the previous month. In which, the domestic economic sector hit US$9.31 billion, up 3.8%, with the FDI sector reaching US$17.5 billion, up 7.8% compared to the corresponding period from last year. Meanwhile, the import turnover of goods in May dropped by 18.4%, of which the domestic economic sector fell by 24.6% and the FDI sector went up by 14.7%.

During the first five months of the year, import turnover was estimated to be at US$126.37 billion, a drop of 17.9% over the same period from last year, of which the domestic economic sector reached US$43.95 billion, a decline of 18.5%, whilst the foreign-invested sector hit US$82.42 billion, down 17.5%.

Regarding the export and import market, during the five-month period, the United States maintained its position as the largest export market of Vietnam with an estimated turnover of US$37.2 billion, while China made up the country’s largest import market with an estimated turnover of US$43.4 billion.

The high export turnover of May shows that trade promotion solutions have already had an impact.

Moving forward, to further improve the efficiency of import and export activities, the Ministry of Industry and Trade will focus on implementing a number of tasks, such as promoting innovation and trade promotion activities towards new and potential markets such as India, Africa, the Middle East, Latin America, and Eastern Europe, as well as markets less affected by inflation, with positive growth such as ASEAN.

The Ministry will make forays into new markets with an emerging middle class such as the E7 emerging markets of China, India, Turkey, Russia, Mexico, and Indonesia, as well as the Halal market of the Middle East, Malaysia, and Brunei.

Moreover, the Ministry will effectively exploit Free Trade Agreements (FTAs), facilitate and enhance digital transformation in granting preferential C/O certificates of origin, thereby helping businesses to take advantage of commitments in FTAs.

CPI increases by 0.01% in May

The General Statistics Office (GSO) on May 29 announced that the May consumer price index (CPI) increased by 0.01% month-on-month mostly due to increases in prices of food, electricity, and water.

The May CPI increased by 0.4% compared to December 2022 and 2.43% from the same period last year.

The average CPI of the first five months of this year rose by 3.55% over the same period last year.

The year-on-year rise in CPI from the beginning of this year tends to slow down gradually with 4.89% in January, 4.31% in February, 3.35% in March, 2.81% in April 2.43% in May, the GSO pointed out.

Factors that pushed the CPI up in the first five months of this year include the increased prices of education, housing and construction materials, culture/entertainment, and tourism because of increasing demand after the COVID-19 pandemic was put under control.

In addition, prices of food items hiked by 3.8%, mainly due to higher consumer demand during holidays and festivals.

Meanwhile, factors that pulled the CPI down during the period included the falling prices of fuels and postal and telecommunications products.

According to the General Statistics Office, core inflation in May increased by 0.27% over the previous month and by 4.54% over the same period last year. The average core inflation of the first five months of this year rose by 4.83% year-on-year, higher than the CPI growth rate (3.55%).

Vietnam, Mozambique eye stronger agriculture ties

Deputy Minister of Agriculture and Rural Development Nguyen Quoc Tri has freshly had a working session with his Mozambican counterpart Olegário dos Anjos Banze in Maputo, discussing bilateral farming cooperation projects and prospects for the sides’ teamworks in the time to come.

At the May 29 meeting, Tri told his host that the two countries have coordinated to research and develop food crops, with Vietnam sending many experts and technicians to support Mozambique. He said he hopes such joint work will be expanded based on each nation’s agricultural strength for mutual growth.

Thanking Vietnam’s help for Mozambique in not only farming but also education, health and telecommunications, Banze lauded the effective support of Vietnamese experts and wished to learn more from the Southeast Asian nation’s agricultural experiences, particularly in processing cashew products, building and managing irrigation and drainage systems, and making use of available food crops to produce animal feed and develop the dairy industry.

Tri affirmed that Vietnam is willing to assist and share experiences with Mozambique in terms of farming, processing, production, commercial product development, and the improvement of product quality based on the three important factors of irrigation, varieties and farming methods.

The Vietnamese deputy minister, who is visiting Mozambique to attend and chair the fourth meeting of the Vietnam-Mozambique Intergovernmental Committee, noted that farming cooperation is an important topic of the event.

Investment increase for Tuyen Quang – Phu Tho Expressway approved

Deputy Prime Minister Tran Hong Ha has approved an investment increase for the Tuyen Quang- Phu Tho Expressway connecting with the Noi Bai – Lao Cai Expressway project.

Accordingly, investment capital will be increased from 3.2 trillion VND (136 million USD) to 3.753 trillion VND to create a breakthrough in economic development for the two northern provinces.

The expressway, which is funded with the central and local budgets, stretches 40.2km, including 11km to be built in Tuyen Quang province and the rest in Phu Tho province.

In the first phase from 2020 to 2023, the expressway has four lanes, allowing vehicles to travel at a maximum speed of 80km per hour. It will be expanded in the second phase until 2025.

Tuyen Quang and Phu Tho provinces are required to coordinate together to adjust the investment policy of the project to ensure the expressway has at least four complete lanes, allowing vehicles to travel at 120km per hour. 

Once completed, it will help ease congestion on National Highway 2 and shorten travel time between Ha Giang, Tuyen Quang and Phu Tho provinces with the northern key economic region and Hanoi, while enhancing the efficiency of the Noi Bai- Lao Cai expressway.

The first phase of the project is scheduled to be completed by the end of this year.

Hanoi ready for official construction of Ring Road No.4

Hanoi is urgently speeding up the progress of sub-projects of the Ring Road 4 - Hanoi Capital Region project so that it can start the official construction of the important road in June, according to the Hanoi Management Board for Traffic Infrastructure Investment and Construction Projects.

The board reported that over 5.85 trillion VND (over 249.36 million USD) has been so far allocated for the project, of which more than 3.97 trillion VND has been disbursed.

The municipal People’s Committee has so far approved three sub-projects and completed the appraisal of the feasibility study report of specialised construction agencies. The local authorities have also allocated hundreds of billions of VND for the sub-projects.

The management board and consulting units completed the feasibility study report and submitted it to the municipal Department of Transport on May 29. The report is expected to be sent to the municipal People's Committee for consideration and then submitted to the Ministry of Planning and Investment and the State Appraisal Council before June 10, 2023.

The land clearance, compensation, and resettlement work in districts related to the project have recorded positive results.

The management board has completed the selection of consulting contractors for surveying and making technical design as well as cost estimation for the construction of high-voltage power transmission lines from 110kV to 500kV.

The surveying and technical design are scheduled to be completed before June 15, 2023, and submitted to the municipal Department of Industry and Trade for appraisal and approval in June and July 2023.

The Ring Road No.4 in the Hanoi Capital Region is about 112.8km long, with around 58.2km in Hanoi, nearly 19.3km in neighbouring Hung Yen and some 35.3km in Bac Ninh provinces.

The project has total investment of over 85.8 trillion VND (3.73 billion USD), more than 28.1 trillion VND of which will come from the State budget, over 28.19 trillion VND from the local budget and the remainder from build-operate-transfer (BOT) venture.

Vietnam, RoK step up trade, locality-to-locality cooperation

A Vietnam-Republic of Korea (RoK) forum for locality-to-locality cooperation and trade promotion took place in Seoul on May 29, attracting more than 100 participants from large Korean investment funds, conglomerates, and small- and medium-sized enterprises.

The event was co-organised by the Vietnamese Ministry of Foreign Affairs, Vietnam-Korea Businessmen and Investment Association (VKBIA), and People’s Committees of Can Tho city, and Bac Lieu, Kom Tum and Thua Thien-Hue provinces from Vietnam.

Trinh Thi Mai Phuong, deputy head of the ministry’s Consular Department, said the forum is a highlight of the programme to promote Vietnamese localities in the RoK lasting from May 29 to June 1.

VKBIA President Tran Hai Linh stated the collaboration between the nations and their localities has been sustained and strongly recovered after a long time of hiatus due to the COVID-19 pandemic.

Linh, who is also a member of the Vietnam Fatherland Front Central Committee, highlighted economy-trade-investment cooperation as a pillar and growth driver of the countries’ relationship, which was upgraded to comprehensive strategic partnership last year.

Leaders of Can Tho, Bac Lieu, Kon Tum, and Thua Thien-Hue informed the forum on their localities’ potential, strength, socio-economic development orientations, and Korean investment attraction so far.

They hoped the RoK business community will make more diverse and suitable investments in Vietnam and looked forward to increasing their localities’ cooperation with the East Asian nation.

Two RoK corporations, SoluM and Hancom, who specialise in green industry, 4th industrial revolution, smart city and high-tech education and training, expressed their desire to promote cooperation with Vietnam via the VKBIA.

Participating businessmen also voiced their investment directions in such areas of the Vietnamese localities' strength and demand as green energy, green industry, smart city, high-tech farming, and high-quality human resources development.

On the occasion the localities of Vietnam and the VKBIA signed a cooperation pact focusing on the promotion of investment and locality-to-locality collaboration.

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