On November 7, the SGGP Newspaper reported that many lobster farms and export facilities in the Central region have either been unable to ship their tropical rock lobsters to China or have experienced an uptick in inspections and delays in the customs clearance process for green spiny lobsters (Panulirus homarus).

The Ministry of Agriculture and Rural Development (MARD) has disclosed that it recently received reports from several lobster export businesses located in provinces like Khanh Hoa, Phu Yen, and the Provincial Fisheries Association of Phu Yen on the temporary halt in tropical rock lobster imports by China. At present, the ministry's functional units have not received an official notification from the relevant Chinese authorities explaining the reasons behind the temporary suspension or the delayed customs clearance process.

Nonetheless, according to the lobster collection and export enterprises, the Chinese authorities have implemented stringent source control measures for lobsters imported from different nations, which includes the live tropical rock lobster exports from Vietnam.

According to a company in Cam Ranh (Khanh Hoa Province), their Chinese importing partner sent a letter stating, "Wild lobsters are an endangered species. Should a country desire to import cultured tropical rock lobsters, they are required to furnish the following documents before seeking an import permit: a certificate verifying the lobsters are farmed, a certificate evidencing the special management of wild aquatic animals in China, and a certificate authorizing the import of wild aquatic species originating from foreign countries."

Based on this information, it appears that Chinese authorities are increasing their efforts to control the origin of lobster imports into the Chinese market.

To align with this new Chinese policy, the Directorate of Fisheries under the MARD suggests that local authorities update their records with comprehensive information and keep relevant documents and records for easy source tracing as needed.

Over the past time, Vietnam's lobster market has mainly been dependent on exports to China through border trade. However, from September to the present, the export conditions have become extremely difficult, with the trade in live tropical rock lobsters coming to a halt. Additionally, other types of shrimp and seafood are experiencing heightened inspection rates, reaching as high as 50 percent.

With no export market available, lobster traders have ceased their collection activities, leading to distress among lobster farmers due to financial losses. Information from Khanh Hoa Province reveals that tropical rock lobsters are mainly cultivated in Van Phong Bay, Van Ninh District.

Out of a total of 35,000 lobster cages in use for lobster farming in Van Ninh District, almost 50 percent are dedicated to tropical rock lobster farming, primarily concentrated in Van Thanh Commune.

It is anticipated that approximately 400 tons of commercial tropical rock lobsters will need to be consumed from now until the year's end. Presently, prices have plummeted from VND1.6-2.1 million per kg to just around VND1.1 million.

The Department of Quality, Processing, and Market Development under the MARD has sent a dispatch to the Vietnamese Embassy and Trade Office in China, as well as the Nanning Customs Department of the General Administration of Customs of China, urging the resolution of this matter.

While waiting for the official response from the General Administration of Customs of China, the MARD has announced that, on November 15, a forum on the supply of breeding stock, source tracing, and sustainable marine farming solutions in Vietnam will be organized in Nha Trang City, Khanh Hoa Province.

The forum's agenda will focus on sustainable tropical rock lobster farming solutions, source tracing for lobsters, and marine farming products.

Four sectors at risk of losing export market share in Europe

Four manufacturing sectors, including aluminum, steel, cement, and fertilizer, are facing the risk of a decline in their export revenues to the European Union (EU).

On November 8, during the seminar titled "Carbon Border Adjustment Mechanism (CBAM): Opportunities and Challenges for Vietnamese Export Businesses," jointly organized by the Ho Chi Minh City Center of International Integration Support (CIIS) and the HCMC Center for Trade and Investment Promotion (ITPC), Ms. Cao Thi Phi Van, Deputy Director of ITPC, highlighted that four manufacturing sectors are facing the risk of a decline in their export revenues to the European Union (EU). These sectors encompass aluminum, steel, cement, and fertilizer, with steel products alone constituting nearly 80 percent of the total value of these four export categories.

The cause for this is the EU's adoption of the CBAM on October 1, 2023. CBAM is an EU policy instrument designed to impose carbon taxes on all imported goods entering the EU market, depending on their greenhouse gas emission intensity during production. It is estimated that with this mechanism, the production costs for Vietnam's steel, aluminum, and cement industries will rise by around US$36 billion annually when exporting to the EU market.

FLC’s VND334-billion high-tech agriculture project in Phu Yen terminated

The investment termination was prompted by the investor's inability to overcome the conditions for discontinuation as per the Investment Law.

On November 8, Mr. Nguyen Van Hung, Head of the Phu Yen High-Tech Application Agricultural Zone Management Board, made the decision to cease operations, revoke certifications, and modify the investment registration dating back to 2019 for the Fam - Phu Yen High-Tech Agriculture project of FLC Biscom Agriculture Company Limited. The investment termination was prompted by the investor's inability to overcome the conditions for discontinuation as per the Investment Law.

According to the records, the project was initially granted an investment registration certificate on February 20, 2019, and the first amendment certificate was issued on August 16, 2019. The project had an area of 93.99 hectares and a total capital of VND334 billion, divided into two phases. The project's primary goal was to cultivate and produce clean, safe, high-quality vegetables and fruits, along with the preservation, processing, and enhancement of agricultural products using advanced and modern technology. On September 14, 2022, FLC Biscom Agriculture Company Limited requested a reduction in the project's scale from 93.99 hectares to 26.65 hectares. However, when requested to provide financial capacity reports for the past two years, this company was unable to do so and only submitted financial statements from the owner company, FLC Homes Real Estate Development and Investment Joint Stock Company. As a result, after more than four years since its inception, the project still remains undeveloped land.

HCMC needs around 81,000 seasonal workers during Tet

HCMC has a rising demand for around 81,000 part-time and seasonal workers as the upcoming Lunar New Year (Tet) Holiday approaches, according to Deputy Director of the HCMC Department of Labor, Invalids and Social Affairs Huynh Le Nhu Trang.

Seasonal jobs cover the sectors of trade and services accounting for 77.13 percent, industry and construction taking 29.69 percent, and agriculture, forestry and fishing with a percentage of 0.18 percent.

In the last months of 2023, the HCMC Department of Labor, Invalids and Social Affairs will organize ten job transaction sessions to connect employers and job seekers.

The department will closely coordinate with relevant units and organizations to monitor the employment situation and labor relations between employees and employers to solve problems to manage conflicts and minimize disruptions caused by strikes or labor disputes.

Rice exporters need to maintain stable supply to curb manipulation by traders

Rice exporters need to maintain a stable supply to curb market manipulation by deceptive traders, according to experts.

While farmers in the Mekong Delta are delighted as prices of rice are high raising their income, domestic businesses and consumers are worried as rice prices continue to be high.

Soon after farmers harvest the autumn-winter crop, traders proposed to buy it at the field at the price of VND9,000 a kg, said farmer Le The Hung in Hau Giang Province’s Long My town. According to the farmer, this is the first time he has sold rice at such a high price.

Farmer Hung also revealed that he achieved a profit of over 50 percent at such a high price because the production cost fluctuates around VND4,000 per kg.

Currently, farmers in Hau Giang Province have already harvested 25,000 hectares out of 27,000 hectares of the autumn-winter crop with a yield of nearly 6 tons a ha. The whole Mekong Delta region harvested 350,000 hectares out of 686,000 hectares of the fall-winter crop.

At the same time, farmers in the region have also sowed 204,000 hectares on 1.4 million hectares of the winter-spring crop. Farmers in several coastal areas that are affected by drought and salinity are taking advantage of the winter-spring crop to avoid the late-crop salinity and drought in the dry season of 2024.

Presently, the rice price in the Mekong Delta is fluctuating from VND8,800 - VND9,800 a kg - the highest level ever.

Vietnam has made an impression in rice exports. Specifically, in just 10 months of 2023, the country exported over 7 million tons of rice. By the end of 2023, the rice export output will reach 8 million tons, bringing about US$4-4.5 billion. This is a successful year for Vietnamese rice exports, said Mr. Pham Thai Binh, General Director of Trung An High-tech Agriculture Company.

According to many businesses in the Mekong Delta, farmers have not called for the government’s assistance in consuming rice this year. According to the Ministry of Agriculture and Rural Development, in 2023, the Mekong Delta will produce rice over 3.8 million hectares, an increase of 13,180 hectares with an output of nearly 24 million tons, an increase of 416,000 tons over the same period in 2022.

Meanwhile, Vietnam Food Association (VFA) reported that Vietnam's export rice price is currently at a high level. Five percent broken rice fetches $653 a ton.

Nevertheless, Mr. Do Ha Nam, Vice President of VFA, said that Vietnam's rice prices rising too high is not necessarily an advantage. As per his analysis, when prices are high, customers will look for other markets with better prices and similar quality to Vietnamese rice, like Thailand, leading to the risk of losing the fragrant rice market share because the price of this country's fragrant rice is very competitive with the price of Vietnamese same kind.

Forecasting the rice export market in 2024, Mr. Pham Quang Dieu, Chief Economist of Vietnam Market Analysis and Forecasting Joint Stock Company (Agro Monitor), said it is likely to reach 8 million tons. Inventories will be very low, so businesses must be very cautious about signing many contracts if they are impossible to control the supply to avoid difficulties when prices keep increasing.

Currently, the price of Mekong Delta rice is increasing by VND2,000 per kg, reaching VND18,000 - VND20,000 per kg compared to 2 months ago. Many experts in the field believe that businesses should not be so concentrated on the rice export market but they should keep caution in rice export necessarily.

Above all, according to experts, exporting businesses should maintain a stable supply for the domestic market, and stabilize rice prices to avoid manipulation of rice prices.

Development of green enterprise brand based on three-legged stool: Chairman

The solution for the development of a green enterprise brand based on a three-legged stool, said Chairman of the Ho Chi Minh City Business Association (HUBA) Nguyen Ngoc Hoa.

The HUBA Chairman made the statement at the program on brand development solutions for businesses achieving the title of ‘Green Enterprise’ in Ho Chi Minh City in 2023 organized by SGGP Newspaper and HUBA today.

Speaking at the meeting, Mr. Pham Van Truong, Deputy Editor-in-Chief of SGGP Newspaper, said that green growth is an inevitable trend and is also a sustainable future for businesses. Businesses are required to transform green if they want to survive, develop and integrate into the global market.

Therefore, under the direction of the Ho Chi Minh City People's Committee, SGGP Newspaper and HUBA organized an event to award the title to 90 businesses citywide.

The Green Business Awards has achieved the initial set goal which is to honor, reward and encourage businesses to comply with regulations on waste treatment generated during the production process.

Additionally, the award organizer encouraged businesses to carry out scientific studies for the production of environmentally friendly products. Moreover, businesses can see their environmental responsibilities for their sustainable growth and competitiveness improvement for businesses.

However, to help green-branded businesses to spread strongly in the community and become valuable brands in the market, SGGP Newspaper coordinated with HUBA to convene the meeting with these enterprises for the development of a green enterprise brand development project.

Mr. Nguyen Ngoc Hoa, Chairman of HUBA, said that in order to support green businesses to develop sustainably and spread their brands widely in the community and market, it is necessary to synchronously implement the three-legged stool solution. Of these, the organizing committee should build a closed green ecosystem from the supply of environmentally friendly input and priority will be given to the consumption of green products for implementing the green brand development strategy.

In addition, Mr. Hoa also emphasized the role of the Ho Chi Minh City Financial and Investment State-Own Company (HFIC). HFCI has submitted and received approval from the city for a capital support program for businesses to convert green production. Accordingly, businesses will have access to loans with preferential interest rates or zero percent for green development.

Mr. Nguyen The Sy Quy, Marketing Director of Vietnam Animal Industry Joint Stock Company (Vissan) emphasized that in addition to diverse forms of communication including producing video clips, talk shows, and articles, the award organizers need to link with other media outlets to widely popularize the green-brand businesses.

EVN announces to raise electricity prices by 4.5 percent

The national utility Vietnam Electricity (EVN) announced to increase electricity prices by 4.5 percent at a meeting on November 9 in Hanoi.

EVN has decided to adjust the average retail electricity price by 4.5 percent from November 9. Specifically, the average retail electricity price increased to VND 2,006.79 per kilowatt-hour excluding VAT. Before adjustment, the average retail electricity price was VND 1,920.3732 per kilowatt-hour adjusted from May 4, 2023 according to decision No. 377 of EVN.

Thus, the average retail electricity price increased by more than VND 86.41 per kilowatt-hour compared to the old level. Since the beginning of the year, EVN has adjusted electricity prices twice with increases of 3 percent and 4.5 percent. After two adjustments this year, electricity prices have increased by more than VND142.35 per kilowatt-hour.

According to EVN's calculations, 547,000 customers are service businesses which will pay an additional VND 230,000 a month on average while 1.9 million are manufacturing companies which will pay an additional VND 423,000 a month on average. The remaining 681,000 administrative organizations will pay an additional VND 90,000 a month.

Lao Cai hosts 23rd Vietnam - China international trade fair

The 23rd Vietnam - China international trade fair is being held in the northern mountainous province of Lao Cai from November 10-15.

With the theme of promoting the bridging role of Lao Cai and Yunnan, the fair comprises of 529 standard booths and 88 exhibition areas of nearly 300 enterprises from 50 Vietnamese provinces and cities, eight Chinese localities and eight other countries.

Diverse goods are being showcased such as agricultural, forestry and aquatic products, food, medicinal herbs, machinery and equipment, raw materials, chemicals, construction materials, electrical appliances, household appliances, consumer goods, furniture, and handicrafts.

Speaking at the opening ceremony, Deputy Minister of Industry and Trade Phan Thi Thang affirmed that the fair is of great significance to promote economic, investment, tourism and service cooperation and development between Lao Cai and Vietnamese localities with Yunnan province and other Chinese localities, thus contributing to enhancing trade exchanges between the two sides and increasing import-export growth.

Events introducing investment attraction mechanisms and policies of Lao Cai and Yunnan, and those to develop two-way trade and logistics between Vietnam and China are expected to take place during the trade fair.

The annual trade fair is held alternatively by Lao Cai and Yunnan, according to an agreement between the Vietnamese Ministry of Industry and Trade and Yunnan authorities.

Prime Minister requests strict management on auctions for granting mineral mining rights

Prime Minister Phạm Minh Chính on Saturday asked organisations to strengthen management of auctions for granting mineral exploitation rights.

In the Official Dispatch No 1087/CĐ-TTg sent to the Ministers of Public Security, Natural Resources and Environment, Finance, and Construction; and provincial and municipal People’s Committees, the PM clearly stated that in recent times, many localities have organised transparent auctions to grant mineral exploitation rights and minerals as common construction materials.

They have achieved many positive results, supplementing a large source of revenue for local budgets.

However, in Hà Nội recently, the auction results for granting exploitation rights to three sand mines including Liên Mạc, Châu Sơn, and Tây Đằng-Minh Châu were many times higher than the starting price.

The results have unusual signs, leaving special public concerns, which can affect socio-economic development and the construction materials market.

To keep management of mineral exploitation, especially minerals used as common construction materials, strict and in accordance with the laws, PM Chính gives further instructions in the official dispatch.

Accordingly, chairman of the Hà Nội People's Committee is directed to immediately review the entire process of surveying, evaluating mine reserves, preparing documents, and organising auctions to grant mining rights to the three above-mentioned sand mines.

All of the process must strictly ensure compliance with the laws, absolutely not allowing organisations and individuals to take advantage of loopholes in management to make personal profits, leaving loss and waste.

The city authorities must promptly detect and strictly tackle violations in the auctions, prevent people from taking advantage of the auctions to push up prices, causing market disturbance.

The work should be reported to the PM before next Monday.

The Ministry of Natural Resources and Environment presides and coordinates with the ministries of Finance, Construction, Justice, and local people's committees to urgently review and inspect the auction organisation.

Every violation must be punished based on present laws.

They should also detect inadequacies in legal regulations to advise and propose competent authorities to amend, adjust, supplement, and prevent profiteering.

They are responsible for strictly handling acts of taking advantage of auctions, and propose solutions to limit negative impacts (if any).

The Ministry of Public Security is assigned to direct local police to strengthen their administration of the situation, prevent, and strictly deal with violations.

The Government Office will monitor and urge the task implementation assigned by the PM in the official telegram. 

Continued tax and fee cuts to promote economic growth

In the spirit of accompanying businesses and people to overcome difficulties to recover and develop the economy, this year the Ministry of Finance (MoF) has continued to submit to competent authorities and promulgate according to its authority policies on exemption, reduction and extension of taxes, fees and charges.

In accordance to its authority, the MoF has issued a circular regulating the reduction of 35 fees and charges in the fields of securities, healthcare, citizen identification and appraisal of construction investment projects.

The application period is from July 1 to December 31 this year with the amount in question expected to reduce State budget revenue by about VNĐ700 billion (US$29.2 million).

Recently, in order to promptly remove difficulties and obstacles, promote resources, improve the economy's ability to access and absorb credit capital, promote growth associated with maintaining macroeconomic stability, striving to achieve the highest goals and targets of the socio-economic development plan and State budget as set out this year, Prime Minister Phạm Minh Chính has issued Official Telegram 990/CĐ -TTg dated October 21 on continuing to drastically implement solutions to increase access to credit capital, remove difficulties for production and business activities, and perform state budget collection tasks this year.

Accordingly, the Prime Minister requested the MoF to proactively propose solutions for exemption, reduction and extension of taxes, fees and charges next year, and submit them to competent authorities for timely consideration and decision.

In addition, drastic solutions are needed to help State budget revenue this year exceed the estimate assigned by the National Assembly.

The MoF has proposed financial policy solutions to promote aggregate domestic consumption demand.

Specifically, the MoF has researched and proposed a number of solutions to reduce taxes, fees and charges for next year, such as continuing the 2 per cent reduction in value added tax and considering reducing the environmental protection tax rate for gasoline and oil as applied this year.

At the same time, it will continue to review and reduce export and import tax rates to support domestic production and business; and reduce the collection of some fees and charges.

Regarding budget revenue this year, the ministry said that budget revenue had reached 85 per cent by October 30, equivalent to VNĐ1.36 quadrillion.

In the last months of the year, the MoF will continue to implement solutions, from electronic invoice issues to building tax data centres and cross-border electronic information portals.

Việt Nam's pepper inventory for 2024 is estimated the lowest level

Việt Nam's pepper output of the 2022-2023 crop has all been exported, so the amount of pepper inventory for 2024 will be the lowest level in recent years, according to Việt Nam Pepper Association.

Việt Nam's pepper export volume in 2023 is expected to reach 250,000 tonnes, including volume from import and inventory from the previous year.

Hoàng Thị Liên, chairwoman of the Việt Nam Pepper Association, said that despite difficult market conditions, the industry has achieved good export performance in the first 10 months of this year.

In the last months of the year, the exports could depend on the amount of inventory carried over from previous years.

The association forecasts that global pepper output in the 2023-2024 crop is estimated to decrease because output from pepper-producing countries is estimated to decrease.

However, the reduction in volume is still lower than the decrease in global consumption demand, so it is forecast that pepper price is unlikely to increase continuously in the long term, according to the association.

The domestic businesses also estimate that Việt Nam's output in the 2023-2024 pepper crop will decrease by about 10-15 per cent to 160,000-165,000 tonnes.

Excluding China, the upcoming consumption demand of countries around the world may decline due to the impact of the economic crisis resulting from the Russia-Ukraine and Israel-Palestine conflicts. The world economic recession decreases purchasing power in the future.

Besides that, consumption of major markets, including the US and EU - key export markets of Việt Nam, are unlikely to recover in the short term.

Analysts estimate that next year's output is expected to decrease in India by 20 per cent, Indonesia by 20-30 per cent, Việt Nam by 15 per cent, and Brazil by 15 per cent.

Meanwhile, the Ministry of Industry and Trade's Import-Export Department, forecasts that Việt Nam's pepper exports will remain at a low level because the domestic supply is no longer abundant and consumption demand in the US and EU markets has not really improved.

At present, the amount of exported pepper originating from Việt Nam has run out. The total amount of inventory and import is about 80,000 tonnes, including the inventory of about 30,000 tonnes.

In the last months of this year, the enterprises will export the imported and pre-existing inventory pepper with a volume of about 50,000 tonnes.

In the long term, Việt Nam's pepper supply is forecast to be in short supply due to fierce competition from other crops such as durian and passion fruit, according to the association.

Liên said that if the cutting of pepper trees for growing fruit trees is prolonged, Việt Nam may face a pepper supply shortage in three years. That may cause farmers to miss out on trading at high prices.

China was Việt Nam's largest pepper export market with a volume of 57,723 tonnes in the first 10 months of 2023, accounting for 25.8 per cent of the total export, according to preliminary statistics of the Việt Nam Pepper Association.

The volume rose by 265.3 per cent over the same period of last year.

However, China's import volume in recent months tended to decrease after purchasing enough pepper volume in the first two quarters of the year.

The US was Việt Nam's second largest pepper export market with 42,600 tonnes, accounting for 19.1 per cent of the total and declining by 6.3 per cent over the same period.

Meanwhile, Europe occupied 19 per cent of the total exports, decreasing by 4.8 per cent over the same period.

The pepper exports also declined by 8.5 per cent to 10,538 tonnes to India, and 29.8 per cent to 10,025 tonnes to UAE market over the same period.

However, the two markets of Turkey and France recorded a sharp increase in pepper exports of 69.7 per cent and 31.1 per cent, reaching 3,900 tonnes and 3,097 tonnes, respectively.

Other markets had high growth in pepper exports included the African market (up 9.9 per cent), Egypt (30.1 per cent), South Africa (10.5 per cent) and Senegal (35.6 per cent).

The association reported that in October 2023, Việt Nam exported 19,193 tonnes of pepper, earning $72.7 million. The figures rose by 15.4 per cent in volume and 17.3 per cent in value.

The average export price in October 2023 reached $3,664 per tonne of black pepper, and $5,211 per tonne of white pepper.

In the first 10 months, Việt Nam exported 223,578 tonnes of pepper, including 200,571 tonnes of black pepper and 23,007 tonnes of white pepper.

Total export turnover reached $750.8 million, including $640.2 million of black pepper and $110.6 million of white pepper.

Việt Nam gained an increase of 14.6 per cent in volume but a reduction of 11.7 per cent in value compared to the same period last year.

The average export price in the 10 months of 2023 reached $3,553 per tonne of black pepper, and $5,082 per tonne of white pepper. They declined by 17.6 per cent for black pepper and 15.6 per cent for white pepper compared to the same period last year.

Nedspice was the largest pepper export enterprise in 10 months with a volume of 15,462 tonnes, an increase of 8.5 per cent over the same period in 2022.

Some other leading export enterprises under the Việt Nam Pepper Association, included Olam Việt Nam (15,326 tonnes); Pearl (14,144 tonnes); Phúc Sinh (12,720 tonnes) and Haprosimex JSC (9,015 tonnes). 

UKVFTA spreads the presence of Vietnamese coffee in the UK market

The UK-Việt Nam Free Trade Agreement and the UK's participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership have been creating additional competitive advantages for Vietnamese coffee in the market, said Nguyễn Cảnh Cường, trade counsellor at Việt Nam's Embassy to the UK.

In May, the UK imported coffee from over 60 countries and territories. There were five markets with import volumes reaching over 1,000 tonnes. Of which, Việt Nam took the lead, followed by Brazil, the Netherlands, Honduras, and Spain.

Over the past five months of 2023, the UK imported nearly 20,000 tonnes of coffee from Việt Nam. The export price of Vietnamese coffee to the UK was 13.7 per cent higher than the general export price of Vietnamese coffee in the period.

Later in June, Việt Nam's coffee export price to the UK market reached US$2,802 per tonne, up 21.21 per cent over the previous month and up 35.24 per cent over the same month last year.

Other trade experts said the UK market was very competitive with imports from many countries. To keep stability in coffee exports to the UK, the Vietnamese coffee industry needed to meet increasingly stringent requirements as well as the consumer tastes of the British people.

Besides that, Vietnamese coffee enterprises should offer products that use modern processing technology to increase product quality, they said.

Experts suggested local enterprises invest in producing high-quality Arabica coffee from small-scale growing regions. The firms should also have governance abilities, traceability, and more sustainable development, they noted.

In addition, businesses needed to invest in marketing activities to access the UK market more conveniently, experts have advised.

According to the Ministry of Agriculture and Rural Development, Việt Nam exported nearly 1.2 million tonnes of coffee over the past eight months of this year, earning nearly $3 billion, down 5.7 per cent in volume but up 32.3 per cent in value thanks to increased selling prices.

Việt Nam's largest coffee export markets included Germany, Italy, the US, and Japan.

Thanks to a trend of hiking in coffee prices, experts predicted that this year’s export revenue of this product might exceed last year’s record of $4 billion.

VKBIA promotes Vietnam – Korea business connectivity

A delegation of the Vietnam - Korea Entrepreneurs & Investment Association (VKBIA) recently made a fact-finding trip to the Central Highland province of Lam Dong to explore cooperation opportunities between Vietnamese and Korean localities in the fields of trade, investment, tourism, infrastructure construction, and human resources development.

Representatives of Anyang city of Gyeonggido province and Hampyeong city of Jeollanamdo province of the Republic of Korea also joined the delegation during the November 8-10 trip.

Cooperation between Lam Dong and Korean localities has been enhanced in recent times through visit exchanges partly coordinated by VKBIA. The RoK side has launched direct flights to Lam Dong, helping to boost tourism development between the two sides. Statistics show approximately 360,000 Korean nationals travelled to the Vietnamese locality between Jan. – Oct. 2023, a year on year rise of 54%.

Meanwhile, some of Lam Dong’s specialties such as coffee, artichokes and macadamia have made inroads into the Korean market, winning local consumers’ hearts.

At a reception for the VKBIA delegation on November 8, vice chairman of the Lam Dong provincial administration Pham S briefed his guests on the locality’s development potential and suggested closer cooperation, especially in the fields of their strength, between the two sides.

The VKBIA delegation also held a working session with the Lam Dong Business Association on the same day. The two sides signed a memorandum of understanding on cooperation rto provide support for their businesses in future.

VKBIA launched the Vietnam - Korea Cooperation Support Center office in Da Lat city of Lam Dong province, to support and connect businesses of the two countries.

The VKBIA delegation also called at several economic establishments in Lam Dong that specialize in tourism services and specialties, to gain an insight into local development potential.

The delegation later travelled to Ho Chi Minh City where they had a working session with the management of the Association of Small and Medium Enterprises in the Southern Region (ASMES), and signed a strategic cooperation agreement with ASMES.

The two sides agreed to create links between Vietnamese and Korean businesses to help them engage in the supply chain and strengthen their capacity to prioritize the use of services and consumption of goods between the parties. They also consented to conduct training programs and expertise exchanges, and to promote cultural exchange activities between Vietnam and the Republic of Korea.

The VBKIA delegation also visited several farm product processors and tour operators in Ho Chi Minh City.

Foreign businesses seek to invest in Vietnamese mergers and acquisitions market

Many businesses from the United States and Europe are looking to pour investments into the mergers and acquisitions (M&A) market in Vietnam next year, a conference of the Global M&A Partners (GMAP) in Ho Chi Minh City heard on November 13.

Vietnam is one of the most attractive destinations for foreign direct investment (FDI) in the world thanks to boasting a young population, impressive economic growth, and a rapidly growing number of middle-income consumers, said Ivan Alver, co-founder of GMAP.

In his view, the Southeast Asian country has succeeded over the years in attracting FDI to M&A deals from different Asian markets, including Japan, the Republic of Korea, Singapore, Thailand, Taiwan (China), and China. However, investments from Europe and both North America and South America remain limited.

There is currently a wave of fresh investment from the UK, the US, and Europe looking for opportunities in the Vietnamese market that possesses abundant human resources, helping businesses to build a large production capacity, said Alver.

He added that economic difficulties coupled with rising inflation in Europe have forced investors to urgently seek fresh markets in order to preserve their assets, with impressive Vietnamese economic growth receiving great attention.

The executive outlined the situation in several Asian countries, noting that Myanmar also has low labour costs, although this competitive advantage is decreasing. Meanwhile, China, which is the largest manufacturing market, has high labour costs which has prompted investors to shift their investments to other regional markets, including Vietnam.

The GMAP co-founder revealed that two Swiss investors have planned to move their manufacturing bases from China to Vietnam following recent field trips to explore the country’s infrastructure and labour force quality.

Sam Yoshida, managing director of RECOF Vietnam, an advisory firm for M&A deals between Japanese and Vietnamese businesses, said that his firm is looking for potential sellers for international investors, many of whom are currently paying a lot of attention to the Vietnamese market, although they lack information.

According to the Japanese executive, international M&A financiers have not changed their tastes too much since the outbreak of the COVID-19 pandemic, with their investments typically being injected into potential fields such as fast-moving consumer goods, retails, food production and processing, logistics, and financial services.

However, the pandemic has turned logistics services, including the cold storage supply chain, into a major concern for investors. 

M&A business executives from 50 countries from Europe, the Americas, and the Asia-Pacific region attended the GMAP conference in Ho Chi Minh City to examine M&A investment trends around the world and Vietnam in particular in 2024.

Discussions also focused on helping investors to gain more understanding of the Vietnamese investment landscape, legal framework, and emerging fields.

The fields that tend to attract the attention of investors looking for M&A opportunities at the GMAP conference this time include manufacturing, retail, semiconductor chips, food, warehouse production, and fintech.

FinGroup reported that the M&A market in Vietnam was valued at nearly US$2.7 billion in the first half of the year, down 54% over the same period from last year. The number of successful transactions also decreased by nearly half in the same period.

Vietnamese, Chinese localities discuss economic corridor cooperation

Discussions on investment and trade, culture, tourism, health care, education, transportation and logistics, as part of the 10th conference on  economic corridor cooperation involving Lao Cai, Hanoi, Hai Phong, Quang Ninh of Vietnam and China’s Yunnan province, took place in Hanoi on November 13.

The organising board received 40 presentations from management agencies, businesses, business associations, universities, research institutes, and experts on the above issues.

In investment and trade, delegates reviewed the progress of investment in infrastructure to strengthen inter-provincial and inter-regional transportation connectivity, and shared experience in promoting trade connectivity, trade infrastructure development and e-commerce.

In culture, they agreed to enhance the sharing of experience in culture management, preservation and promotion of values of cultural heritage, museums, libraries and cinematography while exploring opportunities in cultural industry.

As for tourism, they encouraged the establishment of demand-stimulating alliances between travel businesses from both sides to create tourism packages along the economic corridor, with emphasis on providing stronger support for travel agencies in terms of immigration mechanisms, policies and procedures while building destination surveying and marketing events.

Participants also underscored the need to adopt information technology and digital transformation in transportation industry in combination with the development of logistics services.

Petrol prices down in latest adjustment

Retail prices of petrol were revised down on November 13 in the latest adjustment by the Ministry of Industry and Trade and the Ministry of Finance.

Those of RON 95-III and E5 RON 92 were cut by 390 VND and 340 VND to 23,530 VND (0.97 USD) and 22,270 VND per litre, respectively.

This is the first reduction after two increases in a row in late October and early November.

Meanwhile, the prices of diesel, kerosene and mazut were reduced to between 15,620 and 21,510 per litre or kilogram.

The ministries decided not to use the petrol and oil price stabilisation fund.

Since the beginning of this year, petrol prices have undergone 32 adjustments, with 18 up, 10 down, and four unchanged.

The price adjustment is intended to ensure that the fluctuation of petrol and gas prices in the country is in line with changes in prices in the world while encouraging the use of biofuel as well as minimising negative impact on socio-economic development, production and business activities, among others.

Conference looks to promote sustainable tourism in Central Highlands

Orientations and measures to branch out cultural and eco-tourism in the Central Highlands region in a sustainable fashion were highlighted at a workshop in Gia Lai province on November 12.

The event was organised by the Ho Chi Minh National Academy of Politics in collaboration with the Gia Lai provincial Party Committee.

Endowed with a trove of cultural and historical heritage, an array of specialties, and standout ethnic festivals, the Central Highlands boast huge potential to develop cultural and eco-tourism. However, experts said the region’s tourism is facing formidable challenges due to its underdeveloped infrastructure, poor human resources quality and ineffective tourism promotion as well as shortage of attractive tourism offerings.

According to Director of the Ho Chi Minh National Academy of Politics Region III Doan Trieu Long, the State, competent sectors, localities, businesses and people should enhance cooperation and work to raise public awareness of the significance of the preservation of the region’s cultural values and ecosystem.

Experts and scientists proposed completing policies to promote tourism development, including support in terms of finance, tax, land, credit, insurance, and public investment, and mobilising resources for tourism infrastructure development.

Besides, it is necessary to step up training to improve the quality of tourism human resources, create diverse products and enhance communications work to popularise local destinations to visitors from far and wide.

They stressed that the region must bolster tourism connectivity in tandem with environmental protection, and stop activities that cause harm to the local environment.

Dinh A Ngui, Chairman of A Ngui tourism service company limited in Gia Lai province said that with a view to capitalising on the local heritage potential, authorities at all levels should outline orientations and plans on tourism development, invest in infrastructure at tourism sites and traditional craft villages, and give priority to developing entertainment zones, traditional cuisines and souvenir gifts.

Regarding community-based tourism, he suggested the province’s tourism sector pay due heed to improving tourism services at ethnic villages and spiritual sites, and promoting cultural, agricultural and natural tourism at Kon Ka Kinh National Park and Kon Chu Rang Nature Reserve.

Vietnam advances financial cooperation with Australia, Japan, Singapore

Vietnamese Finance Minister Ho Duc Phoc met bilaterally with Treasurer of Australia Jim Chalmers, Japanese State Minister of Finance Katsuo Yakura, and Singaporean Second Minister for Finance Indranee Rajah on November 12, on the occasion of their attendance at the 2023 APEC Finance Ministers’ Meeting in San Francisco.

The Vietnamese and Australian officials discussed Australia's Southeast Asia economic strategy until 2040 and cooperation in climate change response and sustainable finance, and explored the possibility of signing a memorandum of understanding on financial cooperation between the Vietnamese Ministry of Finance (MoF) and the Department of Treasury of Australia.

The MoF expects Australia to always value strategic partnership with Vietnam, Phoc said, adding that Vietnam treasures Australia’s priorities and support for climate change adaptation in the Mekong Delta during the 2023-2034 period; improvement of the MoF officials’ capacity regarding policy systems to establish a carbon market and a legal framework for carbon projects, carbon offsetting, and carbon credit trading; as well as bilateral energy ties.

Phoc expressed his hope that both sides will continue strengthening collaboration in financial areas related to climate change, energy transition, carbon markets, and green bonds in the near future.

Both pledged to further consolidate bilateral ties to improve capacity and share experience in financial and budget management, including taxation, customs, securities and capital markets, through the signing of an MoU for the new period.

At a reception for Minister Katsuo Yakura, Phoc suggested that said based on the new-generation Official Development Assistance (ODA) framework agreed upon during Prime Minister Pham Minh Chinh’s Japan visit in May 2022, the Japanese Government should support the implementation of the new ODA programne proposed by the MoF, focusing on transportation infrastructure, agriculture, and health care.

Sharing the view that the two finance ministries have been working closely and effectively in the fields of taxation, customs, securities, insurance, debt financing and aid, they promised to support each other at multilateral and regional cooperation forums.

In their meeting, Phoc and the Singaporean minister commended the cooperation between the two economies, with a focus on financial collaboration in modernising customs, electronic customs, and managing securities markets. They also acknowledged Singapore's assistance in enhancing Vietnam's capacity in these priority areas.

Vietnam and Singapore are both active members of regional financial cooperation, such as within ASEAN and ASEAN+3. Relevant agencies of both countries have been closely partnering in ASEAN working committees groups on cooperation in taxation, customs, insurance, financial services liberalisation, capital market development while collaborating on ASEAN+3 initiatives, including the multilateralisation of the Chiang Mai Initiative (CMIM), the ASEAN+3 Asian Bond Markets Initiative (ABMI), and the ASEAN+ 3 Macroeconomic Research Office (AMRO).

Recognising the increasing role of ASEAN in global and regional trade and investment, both ministers committed to stepping up the implementation of free trade agreements between ASEAN and its partners, thus facilitating their trade and investment and active involvement in global supply chains.

Vietnam boosts finance cooperation with Australia, Japan, Singapore

Minister of Finance Ho Duc Phoc expressed Vietnam’s desires to enhance finance cooperation with Australia, Japan and Singapore during his separate meetings with financial leaders of the three countries on the sidelines of the APEC Finance Ministers’ Meeting 2023 in San Francisco, USA, on November 12.

At the meeting with Jim Chalmers, Treasurer of Australia, the two sides discussed Australia’s Southeast Asia Economic Strategy to 2040, and bilateral cooperation on climate change and sustainable finance. They also worked on measures to promote a memorandum of understanding on financial cooperation between the Ministry of Finance of Vietnam and the Treasury of Australia.

Phoc affirmed that Vietnam attaches importance to the strategic partnership with Australia. He highly appreciated the Australian Government’s prioritized support for climate change adaptation in the Mekong Delta during the 2023-2034 period, as well as its enhanced capacity building for Vietnamese financial officials on policy making to establish carbon markets in Vietnam.

Phoc expressed hope that the two sides would continue to strengthen cooperation in the fields of climate finance, energy transition finance, carbon markets and green bonds in the coming time.

The two sides agreed to further strengthen bilateral cooperation to improve capacity and share experience in financial and budget management such as taxes, customs, securities, and capital markets through the signing of a memorandum of understanding for the new period.

Meeting with Japanese State Minister of Finance Katsuo Yakura, Minister Ho Duc Phoc affirmed that the extensive strategic partnership between Vietnam and Japan has been developing substantially in recent times. He proposed that the Japanese Government support the implementation of the new generation ODA program, with a primary focus on three key areas of transport infrastructure, agriculture, and health.

The two officials agreed that the Ministry of Finance of Vietnam and the Ministry of Finance of Japan have increased cooperation in the fields of taxation, customs, securities, insurance, and aid provision. The annual bilateral dialogue between the two ministries, launched in 2021, has achieved good results. The two sides pledged to further support each other at multilateral and regional cooperation forums.

At the meeting with Indranee Rajah, Singapore’s Minister for Finance, the two sides highly appreciated bilateral cooperation between the two economies, in which financial cooperation is a major pillar, focusing on customs modernization, e-customs, and stock market management.

They shared the view that Vietnam and Singapore are both active members in regional financial cooperation mechanisms such as ASEAN and ASEAN+3. The two countries’ leaders also coordinate closely in working committees and working groups regarding cooperation in taxation, customs, insurance, financial service liberalization, and capital market development. They also coordinate in ASEAN+3 cooperation initiatives such as the Chiang Mai Initiative Multilateralization (CMIM); Asian bond markets initiative (ABMI); and ASEAN+3 Macroeconomic Research Office (AMRO), along with other new initiatives.

The two sides pledged to promote the implementation of free trade agreements between ASEAN and its partners, facilitate trade and investment, and actively participate in the global supply chain.

Trina Solar to invest additional $420 million in Thai Nguyen

Trina Solar, a Chinese enterprise in photovoltaic module and smart energy solutions, decided to inject an additional $420 million into its ongoing projects in the northern province of Thai Nguyen.

Jifan Gao, chairman and general manager of Trina Solar, announced the move at a meeting with Deputy Prime Minister Tran Luu Quang on November 6.

According to Jifan Gao, the expansion in Thai Nguyen remarks Vietnam as the group's largest investment destination abroad in the photovoltaic field. To date, Trina Solar has also poured $478 million into two factories in Yen Binh Industrial Park.

This move is aimed at boosting its exports to the United States following the imposition of US tariffs on its products manufactured in Thailand.

DPM Tran Luu Quang said, “Renewable energy development is part of Vietnam's efforts to realise its commitment to net-zero gas emissions by 2050. Vietnam is building and promulgating specific mechanisms to spur the development of renewable energy, including solar energy. Thus, the group's investment helps local businesses to engage in the global supply chain in general as well as its supply chain in particular.”

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