In late September, the Hai Phong Economic Zone Authority (HEZA) granted licences to projects, with a total capital of nearly 1.4 billion USD.

According to HEZA Director Le Trung Kien, Hai Phong is highly expected to develop into a modern, smart, and sustainable industrial city in Southeast Asia.

To draw new investors, the city has pooled all possible resources to establish South Hai Phong Economic Zone and embarked on building new industrial zones as planned.

At the same time, it has further invested in transportation infrastructure, seaports, along with a system of standard and modern warehouses ready to meet the needs of investors.

The city is upgrading the power grids to stably supply electricity for industrial parks and investors, expediting the completion of social housing infrastructure to ensure stable accommodations for workers, and accelerating digital transformation in service of the public and businesses.

Towards the target of net zero greenhouse gas emissions by 2050, Hai Phong city has also rolled out various mechanisms and policies to encourage businesses to switch to the use of new and renewable energy, biodegradable materials, circular economy practices, and establish Deep C ecological industrial zones.

With concerted solutions and a commitment to create the best conditions for investors and businesses, Hai Phong always opens its door to welcome them and pledges to become an ideal destination with all possible support for their most efficient operations, Kien said.

To date, Hai Phong has attracted over 1,000 FDI projects valued at nearly 28 billion USD, including 708 projects in industrial and economic zones.

Green economy key for sustainable growth

Promoting green economic initiatives is a matter that Vietnam and many international organisations are focusing on with the aim of reducing greenhouse gas (GHG) emissions by at least 55% by 2025 and become carbon neutral by 2050.

At the Green Economy Forum (GEF) 2023 held in Hanoi recently, the Government welcomed and supported important strategies and initiatives of the European Union (EU) in strengthening cooperation among the business communities to achieve green agreements, as well as maritime economy and digital economy strategies.

Prime Minister Pham Minh Chinh underlined that Vietnam and the EU shared the new vision, new mindset, new determination and drastic actions for green growth and green development.

Vietnam is focusing on speeding up three strategic breakthroughs in institutions, infrastructure and human resources, promoting growth on the foundation of technology and innovation, he said.

Vietnam has been one of the four signatories of the political declaration on the establishment of the Just Energy Transition Partnership (JETP) with G7 countries and international partners, including the EU.

With its abundant natural resources of wind energy and solar power, Vietnam is ready to share its potential and strengths, and cooperate with EU partners in promoting green energy transition and developing renewable energy, and green hydrogen, said the PM.

Meanwhile, EU Ambassador to Vietnam Julien Guerrier said that thanks to policies and solutions to support green economy development and climate change response, last year, GHG emissions in the EU dropped about 2.5%, while the union’s economic growth increased by 3.5%. This is evidence that the successful reduction of greenhouse gas emissions is possible in parallel with maintaining global economic growth, he stated.

He said that Vietnam, with its net-zero emission commitment by 2050, shares the same interest with the EU in switching to a green and low-carbon economy, which helps shape the bilateral partnership.

Through the JETP mechanism, the EU will provide significant resources to Vietnam to accompany the country, he said.

Guerrier underlined that the pursuit of sustainable growth in the economy brings both opportunities and challenges. It will open new pathways for innovation, job creation and economic growth, enabling the building of a stronger and more inclusive society. On the other hand, it reassesses current systems and thinking to shift to sustainable production and consumption models.

By promoting collaboration between public authorities and the private sector, the EU and Vietnam can unlock the potential to create a greener, more prosperous future, he held.

The ambassador also stressed the need for the business communities of both sides to discuss measures to take full advantage of the EU-Vietnam Free Trade Agreement (EVFTA), thus strengthening the bilateral trade partnership.

He advised European businesses to consider increasing investment and establishing research centres in Vietnam in new fields such as renewable energy, digital transformation, smart agriculture, and low emission industry. This will help to contribute to turning Vietnam into an innovation centre and a regional research hub in the field of green transformation, and forming a green hydrogen value chain in Vietnam.

Companies must better study market, prepare for price surges

More should be done by rice exporters to understand the market and minimise risks, said industry insiders and experts.

Despite Vietnamese rice making history by reaching 638 USD per tonne of 5% broken rice, the highest level recorded, according to the Vietnam Food Association (VFA), rice exporters' profit margin has been getting ever thinner, with some reporting losses.

A major contributor, according to a spokesperson from the VFA, is how exporters leave themselves vulnerable to price fluctuations.

Many exporters choose to sign contracts with foreign buyers first and look for supply later. Once prices surge in the domestic market, they either have to negotiate or accept the losses. Another factor was how quickly domestic prices react to global prices, which has left exporters unprepared and unable to respond.

Renegotiation often takes time and adds extra costs, further hurting exporters, especially those with limited financial capacity.

As of mid-November, the asking price for rice in the Mekong Delta has reached 13,200-14,400 VND per kilogramme, forcing exporters to compete with each other to fulfil their contractual obligations.

Experts said at this price level, they must sell at 700 USD per tonne to make a profit, significantly higher than what the global market is offering to buy. At these elevated prices, exporters also find it difficult to engage in new contracts.

Dinh Minh Tam, Director of Co May Co., a rice export company based in the Mekong Delta province of Dong Thap, said exporters must better position themselves operationally and financially to minimise the potential damage of price surges.

He said a large factor leading to the current situation was a lack of quality market information and failure to closely observe price fluctuations.

To make matters worse, some cornered companies resorted to unfair business practices that caused market disorder, price manipulation, commercial fraud, contractual non-compliance and a decrease in quality. It often resulted in higher losses across the entire industry and damaged the reputation of Vietnamese products in foreign markets, hindering the industry's development in the long run.

Weakening demand and oversupply have also thinned the industry's profit margin as the market is approaching saturation point. According to a recent report by FiinGroup, a market company based in Vietnam, the industry's profit margin has decreased from 17% in 2021 to 13.5% in 2022. Rising input costs for fertilizers, seeds and machinery also cut into profit.

It has resulted in a significant number of companies withdrawing from the market and weaker appeal for the agriculture industry as a whole. Based on a scoring model by the company, it's predicted that an increasing number of companies will face high to very high levels of risk, 13% in 2023 in comparison to 10% in 2022.

Data from the Ministry of Agriculture and Rural Development (MARD) showed in the first 10 months of 2023, the export price reached 558 USD per tonne, a 15.3% increase compared to the same period last year. Rice export turnover reached 4 billion USD, a 35% increase in value compared to the same period in 2022.

Vietnamese, Chinese provinces beef up cross-border trade

A conference on trade exchange between Lao Cai province of Vietnam and Yunnan province of China was held in Lao Cai city on November 10 as part of the 2023 Vietnam-China International Fair.

The event gathered representatives from 167 Vietnamese firms, including 62 enterprises of Lao Cai, and 80 Chinese businesses.

In his opening remarks, Director of the Lao Cai Department of Industry and Trade Nguyen Truong Giang described Lao Cai as as a "bridge" and a "gateway" for Vietnam and ASEAN countries to get access to the markets of Yunnan province and the southwestern region of China. He also highlighted Lao Cai's advantages as the province boasts a diverse system of border gates and a convenient network of logistics centres.

He said imports and exports via the two provinces’ border gates posted an average annual growth rate of over 20% between 2010 and 2019. During the 2020-2023 period, due to the impact of the COVID-19 pandemic, the import-export activities have slowed down. However, customs clearance operations at the two sides’ border gates have been well maintained, with their annual trade value averaging around 3.5 billion USD.

Giang affirmed Lao Cai’s commitments to tackle hurdles facing enterprises, ensure order and security, and create a favourable business climate towards becoming an attractive destination for import-export firms and investors in Vietnam and from abroad.

Deputy Director of Yunnan’s Department of Commerce Hao Yishan stated that the province is ready to collaborate with Vietnamese authorities and business community to implement the important consensus reached by Vietnamese and Chinese leaders, strengthen bilateral economic, trade, and industrial exchanges, and create a large market and development opportunities for firms from both sides.

Hao proposed the two sides encourage business cooperation in industrial and supply chain development, and the expansion of industrial clusters.

Data showed that trade between Vietnam and Yunnan reached only 3.2 billion USD last year, representing a modest proportion in the overall Vietnam-China trade volume, meaning that there is tremendous room for further growth.

Le Hoang Tai, Deputy Director of the Trade Promotion Agency under the Vietnamese Ministry of Industry and Trade, recommended coordinating the implementation of a memorandum of understanding signed between the Yunnan Department of Commerce and the agency and the industry and trade departments of 12 Vietnamese localities by developing specific plans and organising trade promotion activities.

Risk provision costs erode bank profits in Q3 2023

Increasing costs for credit risk provisions made many commercial banks’ profits decline in the third quarter of 2023. 

The ratio of bad debt to total outstanding loans of ABBank as of the end of September 2023 was at 3.51%, a sharp increase compared to 2.88% at the beginning of this year. In particular, outstanding loans in Group 3 (substandard debts) and Group 4 (doubtful debts) both doubled over the past nine months.

ABBank's credit risk provision costs therefore also increased by more than 99% over the same period last year, reaching nearly 1.05 trillion VND (43,000 USD). The rise eroded ABBank's profits, bringing the bank’s total pre-tax profits down to just more than 708 billion VND, down 59% compared to the first nine months of 2022.

It is the same at Techcombank, where the ratio of bad debts to total outstanding loans was 1.4% against 0.9% by the end of 2022.

Techcombank in Q3 2023 set aside some 2.28 trillion VND for credit risk provision, an increase of nearly 84% compared to the same period in 2022. The bank’s pre-tax profits therefore decreased by 17.8% over the same period to more than 17.11 trillion VND.

Meanwhile, TPBank aggressively spent nearly 2 trillion VND on risk provisions in the past nine months, an increase of 14% over the same period last year. Of which, in the third quarter of 2023 alone, TPBank set aside up to 1.29 trillion VND, four times higher than the same period in 2022. TPBank's post-tax profit in Q3 2023 decreased by 26.3% over the same period to more than 1.57 trillion VND. Accumulated for the first nine months of 2023, the bank’s pre-tax profit decreased by 16.3% to 4.96 trillion VND.

The reason why TPBank made such a strong credit risk provision is that the bank's bad debt in the past nine months increased dramatically to more than 5.35 trillion VND, four times higher than at the beginning of the year, of which the sharpest debt increase was in Group 3 and 4 (8.5 times and 3 times, respectively) compared to the beginning of the year. Therefore, the bad debt ratio at TPBank increased from 0.84% at the beginning of this year to 2.97% at the end of September 2023.

Viet Capital Bank is no exception, as its pre-tax profit in the third quarter of 2023 reached more than 21 billion, down 69.3% over the same period last year. Accumulated for the first nine months of 2023, Viet Capital Bank recorded a post-tax profit of only 61 billion VND, down 85.6% over the same period last year.

Besides a decline in main revenue sources, an increase in credit risk provision also contributed to dragging down Viet Capital Bank's profits. By the end of the third quarter of 2023, the bank spent more than 141 billion VND on credit risk provision, an increase of 15% over the same period last year. The bank's bad debt ratio increased from 2.79% at the beginning of this year to 3.56%, exceeding the 3% regulatory cap set by the State Bank of Vietnam.

The increase in provision costs of banks in recent quarters was forecast previously as the sharp increase in bad debt of firms, especially in the real estate and export sectors.

Tran Thi Khanh Hien, director of MB Securities Company (MBS)’s research division, forecast that banks' provision costs will continue to increase in the fourth quarter of 2023 as banks are trying to write off bad debts and reduce the bad debt ratio to below 3% by the end of 2023. This will continue to put pressure on banks' profits.

Forecasting bank profits for the last quarter of this year, Tran Ngoc Bau, general director of financial data and technology firm WiGroup, believed the operating costs of banks will increase sharply in Q4 2023 due to seasonal factors. This, along with the possibility that provision costs may continue to increase, will cause banks' profits in Q4 2023 to be lower than in Q3 2023. However, compared to the same period last year, profits of the banking industry will likely stay flat or inch down.

Furthermore, credit growth, one of the important factors affecting banks' profits, is still quite far from the central bank’s target. According to data from the SBV, as of October 27, 2023, credit growth only reached 7.1%, much lower than the target of 14-15% set for the whole year.

Besides, low capital demands of firms and people amid the unclear recovery outlook of consumer production industries, Hiền attributed the low credit growth to the reason that banks have to be more cautious with their lending decisions and tighten credit standards to maintain credit quality as the bad debt ratio has exceeded 3%.

The State Bank of Vietnam (SBV) reported as of July 2023, the bad debt ratio on banks’ balance sheet was at 3.56%, higher than 2% at the end of 2022. If including debts that banks sold to the Vietnam Asset Management Company (VAMC) and have not yet processed and recovered, the total bad debt ratio of the banking system was at 6.16%.

According to SBV Governor Nguyen Thi Hong, bad debt handling is still facing many difficulties because firms are suffering from negative impacts due to global uncertainties, which has caused a reduction in their solvency.

The legal framework related to restructuring credit institutions and handling bad debts has not been completed. The country is also lacking preferential policies to encourage domestic and foreign investors to participate in settling mortgaged assets and trading bad debts.

Nguyen Huu Huan, head of HCM City Economics University’s Financial Markets Department, proposed that to reduce bad debt pressure and to clear the flow of capital in the economy, the Government needs to focus on promoting more fiscal policy, as the disbursement of public investment capital has not been as expected to date.

Forum updates SPS standards in foreign markets

Sanitary and phytosanitary (SPS) measures in foreign markets were introduced to businesses and local authorities at a forum held by the Coordination Office for Agriculture and Rural Affairs in the Mekong Delta and Vietnam Sanitary and Phytosaniary Notification Authority and Enquiry Point (Vietnam SPS) in the Mekong Delta city of Can Tho on November 9.

To date, Vietnam has engaged in 19 free trade agreements, many of which lay stringent SPS requirements, as well as other commitments on harmonisation of standards and regulations among the signatories, requiring businesses to adapt to bolster exports.

At the event, experts highlighted Vietnam’s commitments under the UK-Vietnam Free Trade Agreement, updates on SPS measures, integrated pest management (IPM) for fruit trees and measures to prevent diseases, and the UK’s regulations on products of plant origin imported from Vietnam.

A Phytosanitary Certificate (PC) is required for almost all trees and their parts, including seedlings. Meanwhile, other products such as processed fruits and vegetables, bread and frozen materials can enter the UK market without the PC.

Competent authorities also provided information on import regulations of several key markets, including China, the EU and the US, while introducing measures to improve the quality of plantation areas, and updating businesses and cooperatives with information on the highest level of a pesticide residue that is legally tolerated in food in the import markets.

Vietnam craft villages festival opens

The Vietnam Craft Villages Festival 2023 opened in Hanoi on November 9, with the participation of National Assembly Chairman Vuong Dinh Hue and more than 300 delegates.

The 4-day event aims at preserving and promoting values of traditional craft villages, and boosting consumption, improving handicraft product value and developing tourism in craft villages.

Minister of Agriculture and Rural Development Le Minh Hoan highlighted that while urban areas illustrate the nation’s vibrant socio-economic development, rural areas are the place where cultural identity and values have been kept for years.

As traditional handicraft products have made significant contributions to the economy and society, the Ministry of Agriculture and Rural Development (MARD) will continue working closely with competent ministries, sectors and localities to create favourable conditions for handicraft artisans and designers to preserve the traditional values, giving a helping hand to build new-style rural areas, and improve rural livelihoods.  

Meanwhile, Chairman of the Hanoi People’s Committee of Hanoi Tran Sy Thanh said the capital has been prioritising the development of craft villages and carrying out a wide range of mechanisms and policies to preserve them, striving to form an innovative centre for the introduction of OCOP products and branch out nine centres for design and introduction of OCOP products in districts and towns by 2025.

Hanoi will further its coordination with the MARD to effectively carry out the preservation work for traditional craft villages, Thanh said.

NA Chairman Hue visited booths displaying OCOP products and handicraft products from Laos, Indonesia, and Thailand.

As many as 300 booths are displaying traditional creations at the festival, including Bat Trang ceramic, My Duc silk, Phu Vinh bamboo and rattan, Ha Thai lacquer, Chuon Ngo mother-of-pearl inlaid, Chu Dau pottery and many more.

Alongside handicraft products, it also introduces high-quality OCOP agricultural specialties such as Dien Bien rice, Tu Le sticky rice, and Vi Thuy organic rice.

During the festival, artisans and craftsmen also demonstrate how they create delicate embroidery pieces, weave silk, and make conical hats, pottery objects or copper bas relief.

Warburg Pincus acts as bridge to attract foreign investors to Vietnam

Warburg Pincus will continue to serve as a bridge to attract more foreign investment to Vietnam, said Deputy Prime Minister Le Minh Khai at a reception for Charles R. Kaye, CEO of the US’ Warburg Pincus LLC, in Hanoi on November 10.

At the function, Deputy PM Khai congratulated Warburg Pincus on 10 years of successful operations in Vietnam, adding that Warburg Pincus is one of the leading investment funds in the United States.
  
Khai emphasised that the country always views the US as one of its most important partners. After 28 years since the normalisation of diplomatic relations, both sides have ramped up co-operative activities in multiple fields and upgraded ties to that of a comprehensive strategic partnership.

Last year saw two-way trade turnover grow strongly, reaching more than US$123 billion and representing a rise of 11% against the same period from 2021.

As of August 20, the US had more than 1,300 valid foreign-invested projects capitalised at US$11.8 billion, ranking 11th among countries and territories injecting money into the Vietnam market.

Deputy PM Khai pointed out that the country’s economic achievements can be linked to Warburg Pincus’ significant contributions, noting that after a decade of operation in Vietnam it has affirmed itself as one of the leading investment funds with a total capital of more than US$2 billion, with this aimed at developing many large enterprises in the country.

For his part, Kaye stated he was impressed by Vietnam's economic achievements in  macroeconomic stabilization.

He also unveiled the fund’s plans to continue expanding investment in the Vietnamese market moving forward, adding that many large US businesses are keen to invest in the country.

Sharing Vietnamese economic development goals moving forward, Deputy PM Khai said the nation is carrying out the socio-economic development strategy for the 2021 to 2030 period with the ultimate goal of becoming a developing country with a modern industry and high average income, as well as a developed and high-income country by 2045.

He underlined the need to fine tune the legal system and to remove obstacle, thereby creating the optimal conditions possible for foreign businesses to operate sustainably in the country.

Khai hailed Warburg Pincus’s successful co-operation with many reputable Vietnamese enterprises, adding that the fund will continue to expand partnerships with local firms and invest successfully in new projects.

He expressed his hope that boasting a large network of customers around the world, Warburg Pincus will continue to serve as a bridge to bring US financiers in particular and foreign investors in general to inject capital into the nation.

Standard Chartered hosts first Treasury Leadership Forum in Vietnam

Standard Chartered Bank Vietnam on November 8 hosted its inaugural Treasury Leadership Forum in Vietnam, focusing on digital trends in the country and the ASEAN region that have a significant impact on treasury management.

The forum, themed “The Blueprint for Tomorrow’s Treasury”, brought together treasury professionals from various industries, thought leaders and financial experts to discuss, network, and exchange ideas on the evolution of treasury.
  
The event was aimed at exploring how digital transformation and technological advancements are enabling treasurers to embrace new and sustainable business models for the future.

It also featured digital booths introduced by Standard Chartered, offering interactive product demonstrations and opportunities for participants to engage with the bank’s digital solutions.

There were six digital booths for cash management solutions, trade finance and working capital solutions, financial markets, financing and securities services, payroll solutions and distributor financing solutions to address different banking needs of corporate customers.

Michele Wee, CEO of Standard Chartered Bank Vietnam, said, “We are proud to host this event for the first time in Vietnam, showcasing our commitment to promoting excellence in the financial sector, driving innovation in treasury practices, and supporting the Vietnamese Government’s initiatives for national development. Sustainability and technology are among Standard Chartered’s strategic priorities, and these are aligned with the Vietnamese Government’s focus on sustainability with their commitment to achieving Net Zero by 2050, and digital transformation with the National Digital Transformation programme by 2025 with a vision to 2030.”

She highlighted the forum’s significance as a unique opportunity for corporate professionals and industry experts to gather and exchange ideas, particularly in the ever-evolving economic landscape, with a specific focus on the importance of business liquidity. 

Emily Hamblin, the British Consul General in HCM City, said, “Today’s event is an excellent example of how the UK and Vietnam are working together to build for the future. Digital transformation is redefining how companies operate. Standard Chartered is ensuring that more companies can capitalise on these advances in technology, which will also empower them to more successfully integrate sustainability into their business models.”

At the panel discussion with industry leaders on improving business liquidity through digitization of cash management processes, panelists provided well-rounded perspectives on implementing strategies and leveraging digital tools to optimize cash management processes, cash flow forecasting, centralized treasury management, and automated payment processes.

These strategies help boost business liquidity and provide greater financial stability, enabling businesses to respond effectively to opportunities and challenges.

Standard Chartered Bank Vietnam was awarded Best Overall Bank for Cash Management in Global Finance’s Best Treasury and Cash Management Award 2023 and Best Payments and Collections Solution in The Asset Treasurise Awards 2023. 

Vietnamese, Chinese provinces beef up cross-border trade

A conference on trade exchange between Lao Cai province of Vietnam and Yunnan province of China was held in Lao Cai city on November 10 as part of the 2023 Vietnam-China International Fair.

The conference takes place in Lao Cao on November 10, gathering representatives from 167 Vietnamese firms and 80 Chinese businesses.

In his opening remarks, Director of the Lao Cai Department of Industry and Trade Nguyen Truong Giang described Lao Cai as as a "bridge" and a "gateway" for Vietnam and ASEAN countries to get access to the markets of Yunnan province and the southwestern region of China. He also highlighted Lao Cai's advantages as the province boasts a diverse system of border gates and a convenient network of logistics centres.

He said imports and exports via the two provinces’ border gates posted an average annual growth rate of over 20% between 2010 and 2019. During the 2020-2023 period, due to the impact of the COVID-19 pandemic, the import-export activities have slowed down. However, customs clearance operations at the two sides’ border gates have been well maintained, with their annual trade value averaging around US$3.5 billion.

Giang affirmed Lao Cai’s commitments to tackle hurdles facing enterprises, ensure order and security, and create a favourable business climate towards becoming an attractive destination for import-export firms and investors in Vietnam and from abroad.

Deputy Director of Yunnan’s Department of Commerce Hao Yishan stated that the province is ready to collaborate with Vietnamese authorities and business community to implement the important consensus reached by Vietnamese and Chinese leaders, strengthen bilateral economic, trade, and industrial exchanges, and create a large market and development opportunities for firms from both sides.

Hao proposed the two sides encourage business cooperation in industrial and supply chain development, and the expansion of industrial clusters.

Data showed that trade between Vietnam and Yunnan reached only US$3.2 billion last year, representing a modest proportion in the overall Vietnam-China trade volume, meaning that there is tremendous room for further growth.

Le Hoang Tai, Deputy Director of the Trade Promotion Agency under the Vietnamese Ministry of Industry and Trade, recommended coordinating the implementation of a memorandum of understanding signed between the Yunnan Department of Commerce and the agency and the industry and trade departments of 12 Vietnamese localities by developing specific plans and organising trade promotion activities.

Pre-Tet purchasing power in HCM City anticipated to surge by 11% to 13%

Purchasing power may increase by about 11% to 13% compared to last year's Lunar New Year festival (Tet), according to forecasts made by the Ho Chi Minh City Department of Industry and Trade.

Purchasing power will primarily focus on food products, essential foods, confectionery, beverages, clothing, footwear, and home appliances.

In order to prepare Tet goods, right from the beginning of the year the southern city devised a plan and assigned the Department of Industry and Trade to supervise the implementation process.

According to the details of this move, the amount of stable goods accounts for 25% to 43% of overall market demand. On average, each month sees the expected amount of goods supplied to the market stand at about 5,000 tonnes of rice, 70 million poultry eggs, 2,000 tonnes of sugar, 1,000 tonnes of processed food, 2,000 tonnes of cooking oil.

Nguyen Phuong Duy, deputy head of the Energy Management Department under the municipal Department of Industry and Trade, said that local enterprises are ready to increase production capacity in emergency situations by selling mobile goods to places with local shortages.

"We are determined not to let scarcity of goods or imbalance of supply and demand occur in any situation," he stressed.

Recently, the municipal Department of Industry and Trade conducted an inspection of rice sources in several Mekong Delta provinces.

Amid global rice prices recording an upward trend and being difficult to predict, the department is closely monitoring developments as international rice prices will directly affect domestic food production ahead in the last months of the year and around the Lunar New Year.

Vietnamese products showcased at Cuban expo, popular

A wide range of Vietnamese products are on display at separate pavilion at the 39th Havana International Fair, running from November 6 to 13 in the Cuban capital and the biggest annual trade event in Latin America and the Caribbean.

The Vietnam National Pavilion covers an area of 400sq.m and has 16 booths showcasing agricultural products, processed foods, household appliances, construction materials, interior and exterior decorative items, vaccines, and biological products.

Among its highlights is the HCM City booth cluster showcasing products such as rice, spices, coffee, dried fruits, confectionery, wooden furniture, essential oils, traditional handicrafts, functional foods, and agricultural machinery and equipment of more than 50 companies.

According to the Vietnam Trade Promotion Agency (Vietrade), which has organised the Vietnamese delegation to participate in the fair as part of the national trade promotion programme, Vietnamese products have received positive reviews for their quality and taste that match the requirements of the Cuban and Latin American markets.

 Inauguration of the Vietnam National Pavilion at the 39th Havana International Fair (FIHAV 2023) being held in Cuba until November 13. — Photo courtesy of Vietrade
The country’s pavilion was honoured to welcome Cuban President Miguel Díaz-Canel, it added.

Speaking at the opening of the pavilion on November 8, Hoàng Minh Chiến, deputy director of Vietrade, said Việt Nam is Cuba's second largest trading partner in Asia with their trade reaching US$181.8 million last year.

Participating in exhibitions like this would help strengthen co-operation between Vietnamese and Cuban firms, helping boost exports further, he said.

Cuba and other Caribbean and Latin American countries are potential markets for Việt Nam since they have large demand for goods in which the country has strengths, and entering the Cuban market would enable entry into the rest, he added.

On the sidelines of the fair, the Vietnam - Cuba Business Forum was held by the Vietnamese embassy in Cuba and the Cuban Chamber of Commerce with the participation of over 100 Vietnamese and Cuban companies in agriculture, F&B, household appliances, handicrafts, agricultural machinery, construction and construction materials, and healthcare.

It was meant to help Vietnamese businesses get a better understanding of Cuba’s economic policies, trade incentives and promising investment areas, and ministries, agencies and localities to orient their promotions.

Hà Nội to hasten reforms, enhance competitiveness to facilitate exports

Hà Nội would continue to hasten administrative reforms and apply measures to improve competitiveness of local enterprises and producers to expand exports.  The point was highlighted in Plan 257/KH-UBND on strengthening exports of the capital city in 2024 issued in late October.

Accordingly, the capital city aims for 2024 exports to grow by 5 per cent over 2023.

In the plan, the city pointed out challenges for exports from rising global uncertainties.

“The economic recession risk together with high inflation pressure are causing consumer demand to decline sharply around the world, including Europe and America which are major trade partners of Việt Nam,” the plan said.

Energy and food crises as well as disruptions in supply chains and rising material prices were still ongoing. Besides, green economy development was bringing both opportunities and challenges to Việt Nam’s exports as developed economies may erect technical barriers.

However, addressing advantages from Việt Nam’s stable macro-economy and the Government’s firm solutions to promote production and business, Hà Nội said it would focus on devising measures to enhance competitiveness of local enterprises and producers, to be able to best adapt to the new circumstances.

Under the plan, the capital city would strengthen administrative reforms with the focus on promoting the application of information and technology in processing administrative procedures, including tax, customs and certification of origin, to facilitate exports.

 Production at Đức Giang Garment Company Limited in Long Biên, Hà Nội. Hà Nội set its 2024 export growth target at 5 per cent. — VNA/VNS Photo
In addition, mechanisms and policies would be raised to promote production and exports, especially credit policies, together with solutions to improve the quality of human resources meeting demand of enterprises.

The city would increase the investment attraction in infrastructure and logistics services to facilitate exports, and improve the efficiency of trade promotion programmes.

A recent study on promoting goods export of enterprises in Hà Nội by Bùi Thị Hoàng Lan from the National Economics University suggested the capital city restructure the industrial sector in association with digital transformation to create a new driver for breakthrough export growth.

The capital city should hasten the transition of export goods structure towards increasing added value and quality and establish value chains.

Pointing out that Hà Nội lacked foreign capital influx, which was large enough to create breakthroughs to production and export, Lan said that the capital city needed to raise policies to attract more foreign capital.

Besides, improving the competitiveness of enterprises and producers in the city played a very important role in expanding exports. The focus would be on implementing regular training courses to enhance knowledge and skills in product design, brand building, international integration, technical barriers in international trade, new policies, and market updates.

Lan also said that it was important to develop centres of raw materials for the production of export goods, and improve infrastructure of industrial parks to attract more investments in production.

Addressing problems from poor infrastructure, which caused rising logistics costs and undermined the competitiveness of enterprises, Lan suggested Hà Nội increase the attraction of investment in logistics infrastructure with the priorities in the systems to connect with other provinces in the Northern key economic region.

Incentives in land policies should be given to the development of logistics centres towards the formation of a logistics market, which would help increase budget revenue, reduce inner-city traffic congestion and remove barriers to goods circulation and exports.

She also proposed policies be raised to attract investment in the development of large-scale “logistics villages” – a completely new business model to facilitate exports.

The latest updates of the municipal Department of Statistics showed that the city reported a trade value of more than US$5 billion in October, representing a rise of 2.1 per cent against the previous month and 10.1 per cent against the same period last year.

Of the figure, export revenue was estimated at $1.45 billion, a year-on-year increase of 7.6 per cent.

For January – October, the city’s total export value reached $13.8 billion, a slight drop of 1.4 per cent against the same period of 2022 on falling global consumption demand.

Hà Nội reported a total export value of $17.1 billion in 2022, a year-on-year increase of 10.6 per cent exceeding the target of 5 per cent, ranking the capital city 8th out of 63 provinces and cities in terms of export revenues.

The export value of the domestic economic sector was $9.181 billion, higher than the export value of the foreign–invested sector which was at $7.9 billion. This was a spotlight of Hà Nội’s export in the context that the country’s export remained dependent of foreign–invested enterprises.

Major export products of Hà Nội included garments, computers and electronic components, machinery and components, timber and wooden products, and agricultural products.

In the 2017-23 period, the city’s export revenue expanded on average 8.2 per cent per year, except for 2020, which saw a drop of 3.4 per cent due to the impact of the COVID-19 pandemic.

According to Hà Nội Statistics Department, there were more than 2,500 enterprises in the capital city involved in exporting in 2022. 

Hà Nội Fruit Festival opens

The Hà Nội Department of Industry and Trade held the opening ceremony of the 2023 Hà Nội Fruit Festival at Thống Nhất Park on Friday.

The festival spans 6,000 square metres, featuring seven open space areas and over 100 booths from Hà Nội and other provinces and cities.

The 2023 Hà Nội Fruit Festival serves as a hub to gather, introduce, advertise, link, and promote the consumption of typical fruits and agricultural products from Hà Nội and six regions across the country. These include the Red River Delta and Northern Coastal Region, Northern Midlands and Mountainous Region, Central Coastal Delta Region, Central Highlands Region, Southeast Region, and Mekong Delta Region.

The festival offers Hà Nội distribution units opportunities to meet, exchange with businesses and cooperatives from various provinces and cities, and expand their consumption markets for fruits and agricultural products.

Trần Thị Phương Lan, acting director of the Hà Nội Department of Industry and Trade, highlighted the festival's role in stabilising the market and promoting quality and clearly originated fruit and agricultural products. This is particularly significant in preparation for the upcoming Lunar New Year. The city has engaged in several activities to link regions and connect supply and demand with other provinces and cities.

Aiming to ensure the safety and quality of consumer products, Hà Nội coordinates with localities to promote, introduce, and connect supply and demand. This includes consuming safe fruits, agricultural products, and specialties with geographic indications from various provinces and cities in its distribution system.

With the second largest population in the country, Hà Nội has a substantial demand for safe agricultural and food products, particularly domestic fruits. The city's monthly fruit product demand is approximately 52,000 tonnes. The diverse fruit distribution system includes 28 commercial centres, 117 general supermarkets, 453 markets, 1,389 fruit stores in streets and residential areas, and 93 stores introducing OCOP products.

The festival will continue until Sunday, November 12. 

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