The Mekong Delta region, the country’s rice and fruit granary, holds huge potential for further investment in agriculture, Deputy Minister of Agriculture and Rural Development Tran Thanh Nam said on October 30.

At a conference held in Can Tho city to promote agriculture investment in the region, Nam highlighted that as an important agricultural economic hub in the country, it makes  up more than 33% of the nation’s GDP from agriculture, and has lured investment to areas of its strengths, namely fruit, rice and aquatic products.

However, Nam suggested domestic and foreign firms consider injecting capital in the region’s maritime cultivation and agricultural services such as plant protection products and animal feed, and agricultural by-products.

Calling on enterprises to step up investment in logistics for agricultural products, Nam said that his ministry is submitting to the Prime Minister a project on developing the logistics system to improve the quality and competitive edge of Vietnamese farm produce by 2030 with a vision to 2050, with a focus given to development of three kinds of logistics centres – in material areas that features a warehouse and provides technical consultancy for farmers, one big cities for deep processing, and in border gates for goods storage for export.

The logistics centres are expected to help reduce production costs and improve income for both businesses and farmers, Nam added.
The Ministry of Agriculture and Rural Development (MARD) is giving priority to investments that help enhance the values of agricultural products as well as develop green economy and digital economy, he said, asking localities and businesses to focus on branching out human resources and improving production capacity to ensure that they are able to join the international market.

Nam also expressed his hope that enterprises will join hands with the State to build a professional workforce, invest in international-standard agricultural processing, and develop an agricultural value chain to create high-value products and form a strong linkage with farmers.

At the event, businesses discussed mechanisms and incentives when they land investments in the Mekong Delta region’s agricultural sector.

AusCham Vice President David Whitehead said he hopes local authorities will understand investors’ need and create the best condition for them to operate there, suggesting them give detailed instruction on investment registration process, land-use registration process and timeline for investment plans, as well as remove bottlenecks in a timely fashion.

Meanwhile, General Director of BODE Group Nguyen Thi Hang recommended the MARD, competent ministries and localities publicise planning, land use plans, prioritised investment projects, and special incentives in the long term.

Autodesk aims to assist MoT in accelerating digital transformation

The Ministry of Transport (MoT) has actively promoted digital transformation to enhance project efficiency and reduce costs.

With advanced technologies and cooperation experience with various governments and enterprises worldwide, Autodesk desires to support and is willing to accompany the Ministry of Transport in applying BIM effectively.

Digital transformation in transportation and logistics is among the eight sectors prioritised by the Government. According to Minister of Transport, Nguyễn Văn Thắng, the ministry recently brought its activities to the digital environment, aiming at data-based management and administration in three primary areas: traffic infrastructure, transportation, and traffic safety.

“The transport ministry is speeding up the digital transformation, which leads to the chance for applying new software and technologies into the activities of transportation area," said Thắng. He also said that the ministry is always willing to welcome foreign investors that own highly applicable technologies to participate in all stages and processes of project implementation to ensure traffic safety for participants and the project life.

Earlier had a meeting with Haresh Khoobchandani, Vice President, Asia Pacific and Japan Sales, Autodesk - a global leader in the design and make platform category. At the meeting, in response to the desire to apply technology in project management of the MoT, Haresh has introduced the application of Building Information Modeling (BIM) - the solution that Autodesk has provided to support various governments around the world for building infrastructure such as the Bangalore International Airport project in India and the tunnel construction project in Norway.

Autodesk BIM will accelerate infrastructure construction and meet the project’s strategic goals, such as capital planning for a flexible transport system, modernising transport infrastructure system through digital project delivery, project cost optimisation, or operational efficiency and productivity.

“It was an honour to be able to discuss with the minister how Autodesk can play a part in Việt Nam’s growth journey, from equipping public servants and students in digital skills to sharing our insights with government agencies on how they can best leverage data and BIM for safer and more efficient infrastructure projects," said Haresh.

Việt Nam is one of Autodesk’s core markets, with many partners using Autodesk solutions to design projects. 

Green production now inevitable for Vietnamese exporters

Business transition in adaptation to a low-carbon consumption trend is inevitable for Vietnamese exporters who, in turn, should consider it a great opportunity to form relevant long-term visions and investments.

The trend refers to a production process that causes little negative impact on the environment and nature. Given that, enterprises earning or losing business opportunities result from their own business and production strategies, said Hoang Van Tam, deputy chief of the office for climate change and green growth at the Ministry of Industry and Trade (MoIT).

At a recent workshop on firms’ tapping climate-induced chances, Tam advised firms to invest in green and clean production meeting requirements from big markets such as the EU and the US.

According to him, many global textile and garment conglomerates target net zero by 2050, requiring their supply chains across countries, including Vietnam, to follow suit. It means that related businesses must report their carbon emissions and calculate the carbon footprint of their production and supply chains.

Ta Hoang Linh, Director General of the MoIT’s European-American Market Department, said Vietnamese firms face competition in terms of orders from not only other markets but also importers’ technical barriers involving green criteria.

The environmental friendliness requirements are made by both foreign and domestic clients, he added, considering the path toward sustainability a must for businesses to boost competitiveness, sustain operations, and grow.

In September, about 300 groups and buyers worldwide, including Walmart from the US, Aeon and Uniqlo from Japan, Central Group from Thailand, and IKEA from Sweden, gathered in Vietnam to seek suppliers.

They highlighted Vietnam’s potential and noted a need for green production and fast delivery in addition to the traditional criteria on product quality and competitive prices.

The Swiss Import Promotion Programme (SIPPO) in Vietnam, which supports Vietnamese businesses in exporting goods worldwide, said global retailers are under pressure from sustainability declarations in the EU and US markets. Therefore, they are looking for Vietnamese suppliers who can prove their sustainability factors with clear standards.

Science, technology enable agriculture to make breakthrough

Vietnam is currently a major producer of agricultural products, an achievement greatly attributable to science and technology, according to the Ministry of Agriculture and Rural Development (MARD).

The MARD said agro-forestry-fishery products of Vietnam have been exported to 200 countries and territories, including demanding markets like the US, the EU, and Japan.

Among them, the EU is a potential buyer of many key farm produce, and opportunities have become even bigger since the EU - Vietnam Free Trade Agreement (EVFTA) was signed.

More than 10 groups of commodities have posted over 1 billion USD in annual export revenue, including fruits and vegetables, rice, coffee, cashew nut, peppercorn, and wood products, statistics show.

The MARD attributed such achievements to science and technology, which have contributed to over 35% of the country’s agricultural production.

During 2020 - 2023, Vietnamese scientists have created 148 crop varieties and 36 technical advances recognised by the MARD, helping increase productivity and quality to serve domestic consumption and export.

In particular, the effective application of science and technology to crop cultivation has helped step up crop restructuring, improve varieties, and prevent pests and diseases, thereby raising the productivity and quality of many plants such as orange, tangerine, and pomelo. The expanding use of high-quality rice varieties has also gradually promoted the value of the Vietnamese rice brand in the international market.

The Cong Thuong (Industry & Trade) newspaper cited Deputy Minister Phung Duc Tien as saying that thanks to science and technology application, Vietnam has recorded higher productivity in the farming of some animals and crops compared to other countries in the region and the world. For example, it currently ranks first among ASEAN members in the productivity of unmilled rice, second in the world in coffee, and first globally in peppercorn.

Meanwhile, Nguyen Huu Minh, Deputy Director of the MARD’s Science, Technology and Environment Department, held that science and technology application to agriculture has proved fruitful, but remains small and fragmented.

The private sector’s engagement in scientific research and development is still limited while the quantity and quality of human resources in this field remain modest. Research units also lack connectivity with businesses, he pointed out.

Tran Thi Lan Anh, Secretary General of the Vietnam Chamber of Commerce and Industry (VCCI), said the country’s agro-forestry-fishery exports have been growing continually, making substantial contributions to total overseas shipments and national economic development.

However, she noted, if the reform of processing technology is slow, it will be hard for agricultural products to increase export value and expand markets.

To strengthen the agricultural sector’s export capacity, it is necessary to take comprehensive measures to boost development under value chains and especially, assist agricultural companies to apply science - technology, carry out innovation, and digitalise production and processing to meet quality standards, according to Anh.

Bamboo Airway adjusts flight network from November

Bamboo Airways has revised its plan to operate domestic and international flights until March 30 next year to mobilise resources for stable operation during the peak season of the year's end and traditional Lunar New Year 2024.

As for the domestic routes, the airline maintains stable operation of flights connecting major cities such as Hanoi – Ho Chi Minh City, Hanoi – Da Nang and Ho Chi Minh City – Da Nang, and others linking such localities as Hai Phong, Vinh, Thanh Hoa, Dong Hoi, Hue, Nha Trang Da Lat, Quy Nhon, and Con Dao.

It also announced the suspension of several international routes to prioritise operation efficiency, including Ho Chi Minh City – Sydney/Melbourne (Australia), Ho Chi Minh City/Hanoi – Frankfurt (Germany), and Ho Chi Minh City – Singapore from November 4, Hanoi – Bangkok/Narita (Japan)/Taipei (China’s Taiwan) from November 8, and Ho Chi Minh City – Bangkok from November 21.

Earlier, the service on the Hanoi – London Gatwich (the UK)/Incheon (the Republic of Korea) routes were halted from October.

Bamboo Airways committed itself to ensuring legitimate rights of passengers affected by flight disruptions by strengthening its personnel to handle requests like flight rescheduling or fare refunds as soon as possible.

The routes that are not subject to adjustment will continue to operate as usual. Tickets can be purchased online through the airline’s website, mobile app or directly from ticket offices and sales agents.

Representative from the airline said along with stabilising flight schedules, it is working to train its employees and ensure maintenance of its equipment and facilities to deliver the best services to customers during peak periods.

Tuna exports to Canada pick up in September

Vietnam’s tuna exports to Canada in September rebounded and increased by 44% to reach more than US$3 million against the same period from last year, according to statistics from the General Department of Vietnam Customs. 

This comes amid the export turnover of Vietnamese tuna to the Canadian market experiencing a downward trajectory since the beginning of the year due to high inflation in the market.

During the course of the nine-month period, tuna exports to this market dropped by 47% to nearly US$23 million compared to the same period from last year.

Canada was the 12th largest tuna import market in the world last year with import turnover exceeding US$272 million, representing a rise of 40% compared to 2021.

With this growth, the North American country can be considered a potentially lucrative market for Vietnamese tuna, especially after the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) takes effect.

According to industry insiders, tuna exports to the Canadian market have yet to fully recover, especially amid the Canadian people’s consumer credit debt having increased and citizens moving to tighten their spending.

Hanoi modernises logistics industry

The capital city of Hanoi has been carrying out measures to become a logistic hub in Vietnam and Southeast Asia.

Located in the heart of the northern key economic region, having quite systematic transport connectivity with road, sea, waterway, railway and air transportation, Hanoi has great potential to develop logistic services.

Deputy Director of the city’s Department of Industry and Trade Nguyen The Hiep said that about 25,000 local logistic enterprises are operating in the city. However, they just meet 25% of the domestic demand and handle 18% of import-export goods. The remaining shares belong to those with foreign investment.

Currently, the system of warehouses and logistics yards in Hanoi is still small, lacking connections and types of specific goods storage such as cool and cold storage, or document warehouse. The number of inland container depots (ICD) is modest and they are just connected to roads, not other forms of transport like railways or waterways.

For 2023, the city set a target to develop logistics infrastructure harmonious with transport infrastructure, turning Hanoi into an important logistics hub of the region, the country and Southeast Asia.

However, the city faces difficulties in achieving the target including incomplete infrastructure, traffic congestion, air pollution plus bottlenecks in mechanisms, policies, human resources, and technologies, said Do Phan Anh, deputy head of the Transport Management Desk under the city’s Transport Department.

Director of the city’s Science and Technology Department Nguyen Hong Son said that to support the development of logistic activities, the city needs to implement digital solutions and to boost investment promotion in logistics service infrastructure projects.

Suggestions were raised to study and build logistics centres of appropriate scale on ring roads, connecting goods transiting hubs, warehouses, and distribution areas in production, agricultural, industrial, and industrial zones. Another solution is to develop smart transportation systems and digital platforms that connect good owners, transporters and customers.

Hanoi needs to strengthen logistic linkage with localities in the Capital Region to facilitate the transportation and distribution of goods from Hanoi to other provinces and cities; create conditions to promote the role of professional associations related to logistics services; encourage and attract major international and domestic logistics service providers to set up headquarters, branches and transaction offices in the city.

Anh said that to overcome difficulties relating to urban transportation, it’s a must to apply science and technology and implement smart transport projects effectively.

He suggested developing a trading floor for modes of transport to optimise two-way goods transportation.

Thanh Hoa promotes rice brands for export

Rice varieties grown in the central province of Thanh Hoa are favoured by domestic consumers and can be found on the shelves in the supermarkets of most cities and provinces nationwide.

The Tam Phu Hung High-Tech Food Company Limited in Thieu Hoa township has upgraded technologies and set up links with local farmers and cooperatives to form rice production chains.

Apart from more than 100 hectares in Thieu Hoa, the company has expanded rice cultivation in 20 districts and some cities and provinces with a total area of up to 1,500 hectares.  

Deputy Director Nguyen Duy Cuong said all of Tam Phu Hung’s rice fields satisfy VietGap standards, adding three of its rice products have been ranked four star under the “One Commune-One Product” programme in 2021.

Notably, its Japonica rice has been shipped to Japan through northern exporters, about 10-15 tonnes each year, and the company expects that it will directly deliver the gain to the market in the time ahead, he said.

Apart from Tam Phu Hung, six others in Thanh Hoa have also set up such production connectivity, and successfully built their own rice brands.

Thanh Hoa is now home to about 230,000 hectares of rice, with an annual output of 1.5 million tonnes.

To promote the value and economic efficiency of rice products, toward exports, the local agricultural sector, authorities and businesses are focused on brand building.

The provincial Department of Agriculture and Rural Development has encouraged the cultivation of new, high-yield, high-quality rice varieties to serve exports, and optimise technical advances.

The department suggested the provincial People's Committee submit a proposal to the Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade to add Thanh Hoa to the planning scheme of rice production areas for exports.

The province has also encouraged localities, businesses, and cooperatives to promote local rice products through the media, and join trade promotion programmes at home and abroad.  

As of October 2023, Thanh Hoa had 19 rice products ranked at least three star under the OCOP programme. 

EVNNPT prepares plans to implement 500kV projects

The approval of the 500kV line for the Nam Dinh I-Thanh Hoa thermal power plant will help accelerate the construction of Circuit 3's Quang Trach-Pho Noi 500kV line project.

Deputy Prime Minister Tran Hong Ha approved the policy for the Nam Dinh I-Thanh Hoa thermal power plant's 500kV line on October 23, with the National Power Transmission Corporation (EVNNPT) assigned as the investor.

This project is one of four components for the 500kV Circuit 3 line, which combines Quang Trach-Quynh Luu, Quynh Luu-Thanh Hoa, Nam Dinh 1-Thanh Hoa, and Nam Dinh 1-Pho Noi.

According to Vu Tran Nguyen, deputy general director of EVNNPT, the 500kV line for Circuit 3 plays a vital role, so it needs to be implemented promptly and put into operation as soon as possible to contribute to ensuring power supply for the North.

“The approval is an important legal procedure, which now forms the basis for EVNNPT to implement the next steps. This positive result comes thanks to Prime Minister Pham Minh Chinh, the Ministry of Planning and Investment, the Ministry of Industry and Trade, the Committee for the Management of State Capital at Enterprises, and the localities accelerating the procedures for the project,” Nguyen said.

Currently, the locations where the Circuit 3 500kV line passes through are closely coordinating with ministries and central agencies to complete additional procedures and clarify dossiers on policies to change land use rights for forest areas, ensuring the compatibility of projects with local planning.

Along with that, EVNNPT is completing documents to ensure the approval of the Environmental Impact Assessment Report (EIA) as soon as the Prime Minister green-lights the investment policy. Feasibility study reports will be completed and submitted to the authorities for appraisal immediately after the investment policy and EIA are approved.

"After the prime minister approves the investment planning for the 500kV line project for the Nam Dinh I-Pho Noi thermal power plant, EVNNPT will immediately implement the project to ensure its goals are met. In addition, we will continue to coordinate with ministries and branches to complete legal procedures to implement the remaining three projects according to the prime minister's directions," Nguyen said.

EVNNPT has arranged the simultaneous implementation of the project’s work and allocated adequate capital. It has coordinated closely with localities on site clearance work, and is gathering human resources, machinery, and materials to start construction immediately, contributing to ensuring the electricity supply for the North into the future.

Australia supports Vietnam in developing its potential

The logistics industry will receive an extra push in Vietnam thanks to a fruitful cooperative relationship with Australia.

Details on Australia’s role in Vietnam’s growing logistics industry were discussed at the VET International Forum last week in Hanoi. For the past six years, Australia has supported Vietnam with developing the Logistics Industry Reference Council, making forecasts on vocational skills, providing skills standards, and contributing to the development of new training courses for lecturers and students of vocational schools.

Australia, through the Aus4Skills human resource cooperation development programme, is also supporting Vietnam to promote labour training for the logistics industry, to ensure that vocational school graduates meet both the current and future skills requirements.

The skills developed in the logistics industry are essential for countries with large supply systems like Vietnam. According to Australian Ambassador to Vietnam Andrew Goledzinowski, Australia has a well-developed vocational education system and the two countries will continue to work together to ensure that Vietnam has an effective and sustainable system, allowing the workforce to be fully equipped with the knowledge for the future.

“We have helped Vietnam connect businesses, governments, and vocational education institutions together to allow students to develop the necessary skills,” he said.

Vietnam is ranked 11th in a group of 50 global emerging logistics markets, according to Agility 2022 rankings. With an average growth rate of 14-16 per cent and a scale of $40-42 billion per year, the country is aiming to increase the growth rate of logistics services to 15-20 per cent and increase the industry’s contribution to GDP to 8-10 per cent by 2025.

Australia is also a major partner of Vietnam in the field of innovation. The Australian government has been investing in the development of an innovation ecosystem in Vietnam since 2018 through its flagship Aus4Innovation programme.

In June this year, Australia announced additional funding of more than $10.7 million to support Vietnam in building an innovation ecosystem towards 2028, making it a 10-year commitment with a total budget of nearly $22.5 million.

The scheme has explored emerging areas of technology and digital transformation, trialled new models for partnerships between public and private sector institutions, and strengthened Vietnamese capability in digital foresight, scenario planning, science commercialisation, and innovation policy.

Jonathan Law, executive director of growth of the Commonwealth Scientific and Industrial Research Organisation, Australia’s national science agency, explained that the next phase of the Aus4Innovation initiative would build upon the solid foundations already established.

“Over the next five years, it will put a stronger focus on areas of Vietnam’s priorities, such as resilient agriculture and food, as well as introducing appropriate interventions for the digital era, including responsible AI,” he said.

Vietnam is an essential economic partner for Australia. Two-way trade reached $16 billion in 2022, making Vietnam the 10th largest trade partner of Australia, while and Australia became Vietnam’s seventh-largest trade partner.

In terms of bilateral investment, Australian investors are operating almost 600 projects in Vietnam with total registered capital of approximately $2 billion, ranking 20th out of 143 countries and territories investing here. Ventures mostly focus on the processing industry, manufacturing, accommodation and catering services, and agro-forestry-fisheries.

Australian businesses are investing in Vietnam and teaming up with domestic business partners in resources and energy, with a focus on renewables, batteries for electric vehicles, and energy storage solutions, to contribute to Vietnam’s net-zero commitments.

Meanwhile, Vietnamese businesses have invested around $500 million in Australia. Recent investments from top Vietnamese firms such as TH Group, Hoa Phat Group, TTC AgriS, and Vitadairy demonstrate the many opportunities that Australia has offered to Vietnamese investors, as well as the complementarity and diversification potential between the two countries’ supply chains.

Logistics talent needs foot up

Despite Vietnam’s rapid logistics expansion, the sector is at a critical juncture in talent development to sustain its significant expansion and global competitiveness.

At a seminar held last week in Ho Chi Minh City, experts and business leaders agreed that the logistics sector offers a substantial number of employment opportunities.

Nguyen Thanh Nha, CEO of Tan Cang STC, a joint venture of Saigon Newport Corporation (SNP), detailed the strategic expansion of Vietnam’s seaports through 2021-2030, which is split into five clusters stretching from the northern port group to the Mekong Delta region.

“Vietnam currently stands as the third-strongest in Southeast Asia’s logistics sector, only trailing behind Malaysia and Singapore,” Nha said.

He highlighted SNP’s dominance in Vietnam with 18 functional centres and branches, including 16 wharfs, six inland container depots, and 29 subsidiaries.

SNP’s workforce includes 7,200 port staff and over 10,000 contract workers, but the ever-expanding logistics industry necessitates a continual influx of new talent.

“By 2025, we anticipate a need for nearly 1,500 new employees, primarily in operations, container driving, dispatch, technical roles, river shipping, freight handling, business transactions, and client communications,” Nha said. “This surging demand underscores the critical necessity for skilled staff, integral to the ongoing development and success of SNP.”

Meanwhile, Nguyen Nam Hai, deputy general director of Nam Van Logistics, concurred, noting that the current workforce only fulfils about 40 per cent of the industry’s requirements. Leading up to 2030 and beyond, the demand for skilled logistics personnel is expected to grow substantially.

“More than 4,000 businesses operate within the logistics sector in Vietnam, yet professional expertise is concentrated in over half of businesses based in Ho Chi Minh City. Therefore, logistics students should not worry about unemployment,” Hai said, emphasising the critical need for high-quality human resources.

Despite abundant employment opportunities, meeting job requirements and adapting to market changes demand a workforce equipped with extensive knowledge and skills. At SNP, potential candidates are expected to be proficient in foreign languages, understand logistics jargon, be IT-savvy, and be adept in logistics software and management across various domains.

“Logistics is globally oriented and rapidly developing, necessitating fluency in English, along with specific industry knowledge and a passion for continual learning,” Nha added.

Pham Anh Tuan, director of Air and Maritime Transportation at U&I Logistics, pointed out that logistics employees must possess a broad range of knowledge and skills. For example, a legal staff member needs not only expertise in law, but also a profound understanding of the industry’s operations to handle and pre-empt legal disputes.

“Beyond professional skills and dedication, health is also crucial, considering the industry’s unique time constraints. For instance, communicating with clients in the US might require working until 2-3am local time. Thus, maintaining good health is paramount for logistics professionals,” Tuan said.

Tran Ba Tung, director of manufacturing company Fine Scandinavia, outlined the hierarchical and functional layers within a logistics factory. He highlighted the importance of clear role demarcation, from the CEO to departmental directors and specialised staff. “Each position demands distinct skills. For instance, those in supply positions must master the intricacies of imports and exports, while procurement staff need to be adept in inventory forecasting models,” Tung said.

Thomas Harris, CEO of Harris Global, a recruitment consultancy in IT and business change, added, “The deficit in skilled labour is not only stymieing the potential of Vietnam’s logistics sector but also results in higher operational costs compared to neighbouring countries.”

Data from Mordor Intelligence reveals that Vietnam’s freight and logistics market size is estimated at $45.19 billion in 2023, and is expected to reach $65.34 billion by 2029, growing at a compound annual growth rate of 6.34 per cent between now and 2029.

According to the Vietnam Institute of Logistics Research and Development, the sector is projected to require an additional 2.2 million workers by 2030.

Steel primed for rising 2024 prospects

Escaping the gloom since early in the year, the construction materials market – and especially steel production – has experienced several positive signs.

According to the Vietnam Steel Association (VSA), steel consumption increased in September, with sales volume of construction steel at almost 959,000 tonnes, up 9 per cent on-month and 4 per cent on-year.

This marked the first month of the year to report positive growth. In the third quarter, steel consumption was about 6.5 million tonnes, up 6 per cent on-year, and two million tonnes of this was exported, up 70 per cent.

Improvement of market demand also reflects in the business status of producers. Steel giant Hoa Phat Group recorded the highest sales output since the beginning of the year. Sales of construction steel products, hot-rolled coil, and steel billets reached 596,000 tonnes, an increase of 7 per cent on-month.

Of these, construction steel contributed 352,000 tonnes, the highest in the year and a rise of 15 per cent on-month.

Hoa Phat general director Nguyen Viet Thang said, “Market demand for steel products is still weak and has not improved too much. Nevertheless, our construction steel performance is still slightly better than August, partly thanks to transportation projects such as the North-South Expressway and new airport projects that are being carried out with accelerated progress.”

Thang also highlighted that construction steel and high-quality steel exports reached 90,000 tonnes.

Similarly, Vietnam Steel Corporation (VNSteel) also reported the highest output since the beginning of the year. Over 268,000 tonnes of steel were consumed in Septmeber, up 8 per cent on-month and 9 per cent on-year.

However, finished steel consumption in the first nine months still decreased sharply on-year due to low demand.

“Even in the construction season, factories’ consumption does not increase as usual. Most factories have to implement solutions to minimise costs and operate production alternately to maintain operations,” said Pham Cong Thao, deputy director general of VNSteel.

In the first nine months of 2023, the company’s consumption of finished steel products reached over two million tonnes, down 23 per cent on-year.

According to retailers, steady steel prices are also supporting consumer demand. After 18 consecutive reductions since April, steel prices have been stable for more than a month at around $565-580 per tonne.

“We believe that construction steel sales have increased partly thanks to transportation projects in the country in terms of roads and airports,” confirmed a representative of the VSA. “However, market demand for steel products in general is still weaker than anticipated.”

According to the VSA, in September, construction steel production reached over 876,000 tonnes, down 6 per cent on-month and 9 per cent on-year.

In the first nine months of 2023, construction steel production reached 7.7 million tonnes, down 21.6 per cent on-year; sales reached 7.738 million tonnes, down 20 per cent on-year. Of which, exports reached 344,676 tonnes, down 12.9 per cent on-year.

KB Securities Vietnam (KBSC) forecast that steel prices may continue to maintain at low levels until the end of the year. However, selling prices are unlikely to fall further because steel inventories in China and Vietnamese businesses have been at nearly their lowest level since the end of 2020.

According to a report from BIDV, the country’s economic GDP growth forecast for the whole year could reach 5-5.2 per cent in the base scenario or 5.3-5.5 per cent in a positive scenario. Thanks to solid consumption growth, Vietnam’s public investment continues to expand, while private investment and difficult sectors such as export, industrial production, and real estate market will be improved. The domestic steel market outlook in the fourth quarter of 2023 will be better than in previous quarters.

Although there has not been a significant improvement on-year, developments in the domestic steel market are revealing positive signs. KBSC expects that domestic steel demand may remain positive from the beginning of 2024.

Therefore, businesses and analysts expect the construction materials production and consumption in the last months of the year will get better. SSI Research said that steel demand may be improved in the fourth quarter or into 2024 following the recovery of the real estate market.

Dao Minh Chau, deputy director at SSI Research, said the profit of steel producers at the end of 2023 and in 2024 will grow rapidly.

“The growth of the steel industry is cyclical and had a low base at the end of last year. In 2022, most steel businesses reported negative profits due to falling sales and prices,” Chau said. “Therefore, profits of steel producers in the second half of this year will be enhanced much on-year. Because sales volume has improved, especially export volume, they no longer have large inventories like in the second half of last year.”

In 2024, the profits of steel enterprises will be in the group of the strongest growth in addition to retail, fertiliser, and seafood, Chau added.

“Steel prices have been at a low level for many years, so in the coming time, it will be able to rise. On average, the profit growth rate of steel enterprises in 2024 is about 70-80 per cent,” he said.

The World Steel Association forecasts that global steel demand will increase by 1.8 per cent in 2023 and reach more than 1.8 billion tonnes after decreasing by 3.3 per cent in 2022. In 2024, steel demand will rise by 1.9 per cent to 1.85 billion tonnes.

Particularly, it emphasised that the main driver of steel demand growth comes from emerging markets in Asia. After decreasing by 0.6 per cent in 2022, steel demand in emerging and developing economies in this region will grow by 4.1 per cent in 2023 and 4.8 per cent in 2024. Currently, Asia is Vietnam’s largest steel export market, accounting for nearly half.

Vietnam has over 15,000 new market entrants in Oct

October saw 15,435 companies being established with total pledged capital of VND126 trillion, showed data of the General Statistics Office (GSO).
In comparison to the same period last year, the number of new businesses set up in October this year was 18.5% higher and their capital increased by 17.7%. Their employment rose 71.2% year-on-year.

The number of businesses that suspended operations in October was 5,500, a 33% increase against the previous month and a nearly 36% rise versus 2022.

From January to October, Vietnam had 131,800 new companies established with total pledged capital of VND1.2 quadrillion. While this reflects a 4.7% increase in the number of businesses, it also shows a 12% decrease in pledged capital. These businesses have collectively created 880,000 jobs, up 5.4% year-on-year.

According to the GSO, nearly 18,400 businesses were established and resumed operations each month in the nine-month period.

In the first 10 months of this year, the number of businesses temporarily suspending operations reached 81,000, a 22% year-on-year increase. On average, 14,700 businesses exited the market per month.

Italian organic food for Hanoi consumers

The "Italian Organic Week in Vietnam", which runs from October 23 to November 1 in Hanoi, provides consumers and retailers in the city with access to high-quality products that meet European organic standards.

According to Ricardo Cozzo, President of the Italian Bioagricoop organization, this event helps to promote the development of green and sustainable consumption in Hanoi, thus creating favorable conditions for the boosting of organic production in the Vietnamese capital.

The event promises to bring a new experience to Hanoi consumers interested in organic products and green lifestyles, as well as to the retail community. High-quality products that meet European organic standards help improve health quality and lead to a green consumption lifestyle and sustainable consumption for human health and for the environment, said Ricardo Cozzo.

He emphasized that Italian organic agricultural goods have been recognized by the European international organic certification system and that they all adhere to stringent production, processing, and transportation criteria.

The Vietnamese Government and non-governmental organizations are currently working to raise public awareness of the benefits of organic agriculture in terms of preserving the environment and increasing farmers' incomes, Ricardo Cozzo said, adding that the expansion of organic brands and stores is making it easier for customers to purchase these goods.

The "Italian Organic Week in Vietnam" showcases more than 100 different organic food products at major outlets, specializing in organic products that meet international standards.

HCMC seen facing VND20 trillion budget shortfall in late 2023

HCMC is grappling with the prospect of a budget revenue shortfall in the range of 4-5%, equivalent to nearly VND20 trillion, in November and December this year.

Le Duy Minh, director of the HCMC Department of Finance, was warning about this issue at a meeting held on October 30 to discuss socioeconomic conditions and year-end tasks.

According to data from the city’s Statistics Office, total budget revenue in the first 10 months was VND372 trillion, meeting 79.3% of the full-year target and falling 8.1% against the same period last year.

Budget spending is projected to rise by over 37% year-on-year, with investment costs increasing by 31.7% and recurring expenses by 9.4%.

Minh predicted that budget revenue could fall short in the final two months of this year.

“This situation is quite challenging. December normally sees an improvement of 9-10% in budget revenue, while the other months usually achieve 6-7%. Therefore, we are forecasting a revenue deficit of 4-5%, which translates to roughly VND20 trillion, from now until the year-end,” said Minh.

To address these financial challenges and boost revenue, Minh proposed focusing on collecting tax arrears in November and December, which amount to over VND40 trillion.

He suggested that tax and customs authorities intensify efforts to collect these outstanding taxes.

In a bid to support businesses, the city has extended and deferred tax payments since March. By September, these extensions and deferrals amounted to around VND10 trillion, and the city is now striving to recover this amount before the year concludes.

Minh also emphasized that despite difficulties faced by some businesses, there are promising sectors, particularly in e-commerce. Therefore, increased oversight and strict tax management are necessary to prevent tax revenue losses.

The director of the HCMC Department of Planning and Investment, Le Thi Huynh Mai, said measures needed to be taken to improve revenue management, and ensure timely, accurate, and complete tax collection. She recommended that the HCMC Department of Natural Resources and Environment enhance revenue collections from land use.

This year, the city has been assigned a budget revenue target of nearly VND469.7 trillion.

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