The functional department previously imposed a fine of VND91 million (US$3,760) upon Thanh Buoi Copmany and revoked the transport business license for three months. (Photo: SGGP)

The enterprises were granted business licenses in April, such as AST Group, Cong Vang Tourist Company, Hong Cam Service Trading Company, The X Car Cooperative, Bao Long Chemical Company and transport companies likely HAT, Thanh Cong, Huynh Thien Phuc, Quoc Cuong and others.

Accordingly, these companies did not have any business activity for six months from the day of receiving the business license or stopped doing business for six consecutive months. The HCMC Transport Department required them to render their transport business licenses within seven days from the effective date of the decision.

On the same day, the HCMC Transport Department decided to revoke the auto transportation business license for an indefinite period of time of Thanh Buoi Passenger Coach Company due to the violation of providing copies of files that do not match the originals with different contents in the application for a business license

The functional department previously imposed a fine of VND91 million (US$3,760) upon Thanh Buoi Copmany and revoked the transport business license for three months.

Joint efforts required to develop semiconductor manpower

In Vietnam, the semiconductor industry is believed to hold huge potential for making breakthroughs to help with fast and sustainable economic development, but the shortage of manpower is posing a huge challenge.

SEMI SEA, a Southeast Asian association serving the manufacturing supply chains for the microelectronic, display and photovoltaic industries, estimated the global semiconductor industry’s revenue in 2022 at almost 600 billion USD. The global semiconductor market will see double-digit growth rate in the coming years to reach 1 trillion USD by 2030.

SEMI SEA President Linda Tan said the market in Vietnam is predicted to expand by 6.12% during 2022 - 2027, noting that together with increased investment in the semiconductor industry, Vietnam is likely to become a partner of many big countries in this field.

As the semiconductor industry, the basis for manufacturing electronic products, is currently one of the fastest growing areas, its manpower demand is also surging.

Minister of Information and Communications Nguyen Manh Hung said that each year, the country needs about 150,000 engineers for the information technology and digital sectors, but only 40 - 50% of the demand has been met. Notably, less than 20% of the semiconductor industry’s annual demand for 5,000 - 10,000 engineers has been satisfied.

The big manpower shortage, over 80%, is a major problem needing to be addressed as more than 50 FDI businesses have invested in this industry in Vietnam and they are in need of a large number of personnel.

Experts forecast the semiconductor industry in Vietnam requires about 20,000 personnel holding the bachelor’s or higher degrees in the next five years and about 50,000 engineers in the next 10 years.

Assoc. Prof. and Dr. Hoang Minh Son, Deputy Minister of Education and Training, said though the semiconductor area is not a new training branch, the number of students and graduates remains very low, leading to a manpower shortage in terms of both quantity and quality.

Facing that fact, the Ministry of Education and Training is building an action plan to step up training to increase the quantity and quality of human resources, particularly integrated circuit (IC) designers, for the sector.

Vietnam has more than 5,570 IC engineers at present, over 85% of whom are in Ho Chi Minh City, 8% in Hanoi and 7% in central Da Nang city. Every year, only about 500 - 600 students graduate from semiconductor training courses of domestic universities, according to data from the National Science and Technology Information Portal.

To quickly raise the number of semiconductor engineers, Son suggested training students who are enrolling in close branches such as electronics engineering, electrical engineering, automation, and mechatronics engineering into those specialised in semiconductor engineering in order to increase the graduates for this field to 3,000 - 4,000 each year.

In addition, many electronics and telecommunications graduates have experience in working for IC and semiconductor-related companies. If receiving more specialised training, they can become a source of high-quality manpower for the industry, he said.

The Deputy Minister also considered re-training the engineers of close branches as a measure for quickly increasing new semiconductor personnel to 5,000 - 6,000 each year.

In mid-October, the Posts and Telecommunications Institute of Technology, the Vietnam National University HCM City (VNUHCM), the Vietnam National University Hanoi, the Hanoi University of Science and Technology, and Da Nang University signed a deal on cooperation in developing high-quality human resources for the semiconductor industry. This is a basis for them to boost collaboration in scientific research, technology transfer, and innovation in the field, and enhance cooperation with semiconductor businesses.

Assoc. Prof. and Dr. Tran Le Quan, Rector of the VNUHCM University of Science, perceived that the country needs to form some training and internship programmes on IC, micro-electromechanical systems engineering, and electronics engineering in which universities can coordinate with semiconductor firms to meet research and development demand.

Vietnam is drafting a strategy for developing the semiconductor industry by 2030 with a vision to 2035.

Deputy Minister of Information and Communications Nguyen Huy Dung expressed his hope that Vietnam will have the opportunity to participate more deeply in the global semiconductor supply chains by implementing national strategies and building trust during the international cooperation process to attract investment.

As the country wishes to become a centre of semiconductor human resources for not only itself but also the region and the world, he emphasised the need for joint actions by the Government, associations, organisations, businesses, and especially domestic and foreign universities.

The official said he hopes that with the Government’s attention and common efforts by training institutions and technology companies, the manpower shortage will be addressed so that the industry can develop and fuel the Vietnamese economy in the near future.

Vietnam has opportunity for foundational economic development

Vietnam has an opportunity for the development of a foundational economy as the Southeast Asian country is one of the first countries in the world to issue a national digital transformation program and strategy.

In addition to being one of the first countries in the world to issue a national digital transformation program and strategy, the number of monthly users on Vietnamese mobile applications in the first 6 months of 2023 exceeded 500 million, an increase of nearly 16 percent over the same period.

The Fourth Industrial Revolution (4.0) developed based on three basic pillars including biotechnology, physics and digital technology. The integration of all three areas will bring many opportunities for innovation, including economics.

The 4.0 Industrial Revolution not only created new resources, products and assets but also had a strong impact on social resources including institutions, political structures, society and especially an economic model.

The foundational economy - the part of our economy that creates and distributes goods and services that we rely on for everyday life - has become a new economic model in the twenty-first century and completely changed the way human beings conduct production and business. The model operates as a centralized platform linking diverse sellers and buyers, providing a variety of goods and services.

The foundational economy is a new form of industrial organization and new format that aims to improve efficiency and reduce costs based on digital technology, data drives and platform support, and business process changes, consolidating industry chains and combining multiple enterprises.

Especially in the new economic environment contributed by globalization, computerization and networking, it will serve as the basis for the development of online commerce, having a strong impact on the financial and banking system. goods due to the ability to dematerialize which replace certificates (= paper documents) by a system in which shares, etc. are bought, sold, and stored electronically and disintermediate which reduces or eliminates the use of intermediaries between producers and consumers.

In addition, the foundational economy also provides an opportunity to promote the transformation of traditional manufacturing development strategies; thereby, helping abandon the concept of mass production and scale production, and develop modular flexibility and personalization.

Manufacturing using the foundational economy can solve three strategic problems that the traditional manufacturing industry is facing including high inventory, high costs and insufficient innovation capacity.

Moreover, the transformation of the previous decentralized-oriented management mode to a flat management mode is driven by orders placed in the foundational economy. This kind of economic form will help to exchange information and communicate more effectively, decentralizing point-to-point information to make production and sales of the traditional manufacturing industry more efficient.

Last but not least, industrial transformation and upgrading using information systems and developing open, win-win supply chains with suppliers to become a value-added economy.

The emergence of the platform ecosystem has overshadowed the original industrial model and blurred the industrial boundaries because platform-based enterprises can continuously carry out cross-border operations based on products, core services and integration of business activities to promote industrial transformation and upgrade.

This also helps the traditional manufacturing industry better adapt to international competition in expanding from production links at the low end of the value chain to realize the transformation in strategies and upgrade of traditional manufacturing industries.

Statistics also show that this new model has important practical implications as 60 of the world's 100 largest companies also derive their main income from the foundational economy.

According to statistics from the Wall Street Journal (USA), in just May 2023, Vietnam was among the 5 countries with the largest trading volume on Binance, reaching US$20 billion. It can be seen that the foundational economy has appeared through cross-border platforms such as Google, and Facebook, along with technology ride-hailing applications such as Grab, and GoViet which has completely changed the domestic market.

Vietnamese businesses also have a number of applications such as Zalo, MoMo, Be contributing to the development of the special economy.

In the process of developing the fundamental economy, in order to implement the Government's programs and orientations, it is necessary to build sustainable economic institutions and structures to regulate the effective operation of Government entities, suppliers and developers of foundational economy as well as customers in important areas.

First, a legal framework for the special economic model must be built including recognizing products, assets and intangible resources as new socio-economic resources of the 4.0 era, in addition to the development of appropriate tax policies, plans and strategies for effective and comprehensive socio-economic development of the country in the era of the foundational economy.

Additionally, data privacy and commercialization must be paid attention to as customer data drives the platform economy, so the impact of privacy laws is inevitable.

Third, intellectual property must be protected by registration and use of trademarks, licenses, copyrights, patents as well as appropriate non-disclosure/non-fraud considerations.

Finally, competition and anti-monopoly must be under consideration to ensure healthy competition between supplier businesses and businesses developing the special economy as well as protect consumer rights.

Hung Yen calls for US investment in diverse areas

The northern province of Hung Yen has held an investment promotion conference in San Francisco city to call for local firms’ investment to areas of green growth, high technology, emission reduction, and farm produce sale.

The event drew Vietnamese Foreign Minister Bui Thanh Son and leaders of Ho Chi Minh City, Hai Phong city and Bac Giang province, as well as representatives from nearly 70 US firms.

Secretary of the Hung Yen Party Committee Nguyen Huu Nghia, who accompanied President Vo Van Thuong in his trip there for APEC Leaders’ Week and bilateral activities in the US, highlighted potential and advantages of Hung Yen, including favourable location, rich cultural and historical values, dynamic economic development, strong infrastructure system, smooth transportation systems, and abundant and young human resources.

The provincial leader said that Hung Yen's growth strategy is based on three key pillars - industrial development with high, clean, low-carbon and resource efficient technologies; trade-service development with high added values; and urban economic development based on speeding up urbanisation and infrastructure completion.

Meanwhile, Chairman of the provincial People's Committee Tran Quoc Van also introduced Hung Yen's strengths in attracting investment.
 
Speaking to the Vietnam News Agency there, Van said that Hung Yen takes US investors as a great potential for the local socio-economic development.

US enterprises showed their interest in investment attraction policies of Hung Yen, and raised many questions for local leaders.

During this US trip, Hung Yen signed cooperation agreements with four US partners in the fields of semiconductor, high-tech industry, farm produce sale, and waste treatment.

Earlier, at a roundtable connecting Vietnamese and US businesses and localities held in San Francisco on November 15, President Thuong and participants witnessed the exchange of cooperation agreement among the People’s Committee of Hung Yen, SaigonTel, and Allotrope Parts on supporting Hung Yen in reducing net emissions.

Navigating the headwinds, exports resume growth pace

Managing to navigate headwinds from global economic fluctuations, Vietnam has enjoyed positive gains in exports, with the upward trend forecast to continue in the time to come.

Data shows that Vietnam’s export revenue has improved through the first quarters of this year. Specifically, a year on year drop of 11.9% was recorded in the first quarter, which was reduced to 11.8% in the second and to only 1.2% in the third quarter.

From these positive signs, experts are upbeat about the recovery of the world demand and a high growth in Vietnam’s exports in Q4.

Agricultural products such as rice and fruit have recorded strong growth. Meanwhile, Vietnam has shown strong performance in diversifying export markets and optimising major markets such as the US, the EU, Africa, and Western Asia.

At the same time, Vietnam has efficiently exploited border trade to increase exports to neighbouring countries, especially China.

Recovery signs have also seen in garment and textiles. Recently, partners from Europe, Northeast Asia, and Southeast Asia have shown increasing interest in Vietnam. Exports to the US and EU markets have also showed signs of improvement.

According to the Import-Export Department under the Ministry of Industry and Trade, inventories in markets where Vietnam has strong advantages have decreased. For example, in the US, inventory dropped from 20% in the first six months of the year to 10% in August, which is forecast to reach 0% by the end of 2023. This is an opportunity to export more goods to the US, Vietnam's largest export market.

The department underlined that thanks to their efforts to seek new markets and optimise a new generation free trade agreements (FTA), Vietnamese exporters have effectively navigated the global headwinds.

However, experts advised domestic firms to promote production while seeking material supply sources serving production to avoid dependence on particular markets.

They also stressed the need for stronger connectivity among businesses to enhance their capacity to respond to unpredictable developments in the world economy, along with the renovation of production technologies and the building of trademarks to increase competitiveness and attract more investors.

Minister of Industry and Trade Nguyen Hong Dien said that the ministry will enhance their forecast capacity. It will speed negotiations and signing of new bilateral and multilateral cooperation mechanisms with promising countries, while optimising the role of the Vietnamese trade office system abroad in providing international market information and policies, he said.

The minister pledged that along with giving alerts on trade barriers and trade defense cases, the ministry will assist businesses in effectively taking advantage of FTAs, and untangle knots in capital access and administrative procedure, thus helping them recover and develop production to increase exports.

Dien said that the MoIT will support exporters to enter emerging, niche, and potential markets, and diversifying export markets through official channels.

Public-private partnership needed for sustainable rice farming

Attracting investment and public-private partnership (PPP) plays an important role in implementing the project of sustainable development of 1 million ha of low-emission high-quality rice production in the Mekong Delta to 2030, said insiders.

The project will promote added value throughout the entire rice production chain, raising farmers' incomes, ensuring sustainable development amid worsening climate change, and contributing to green growth.

According to Deputy Minister of Agriculture and Rural Development Tran Thanh Nam, the project will focus on measures to reduce production costs for farmers and expand carbon-certified rice production.

Le Thanh Tung, Deputy Director of the Crop Production Department under the Ministry of Agriculture and Rural Development (MARD), said mobilising components in the value chain through public-private partnership programmes is a top priority in implementing the project.

Promoting the application of technical advances in farming will help solve difficulties for farmers, on the pathway to developing a sustainable rice production chain, he added.

The establishment of the PPP task force on rice aims to boost linkages in sustainable rice production and leverage agricultural technology to support the activities of the rice industry.

Le Quoc Thanh, Director of the National Agricultural Extension Centre, said the project will offer an opportunity to re-position Vietnam’s rice sector. He called for joint engagement of private areas, businesses, and producers in the project.

Head of Sustainable Value Chains of Grow Asia Misha Rabat said Grow Asia wants to connect public and private sector partners and mobilise resources from funds in order to support food system innovation, thus improving the rice industry's adaptation to climate change and increasing incomes for rice farmers.

Many Vietnamese businesses have also expressed their interest and willingness to join in this project.

According to Chairman of Loc Troi Group Huynh Van Thon, the firm has organised chain and cooperative model-based production and applied technologies in production activities.

Vietnam's rice sector has so far ensured food security and created jobs and income for 9.3 million households in rural areas, making it a decisive factor in hunger eradication and poverty reduction.

The nation currently ships rice products to more than 150 countries and territories, accounting for more than 15% of the world’s total rice exports.

Vietnam works on sustainable development of marine aquaculture

Reducing the exploitation of natural seafood and increasing offshore aquaculture are considered solutions to balance human demand with the conservation and sustainable development of marine resources.

Insiders said that developing marine aquaculture and expanding large-scale aquaculture towards exports will increase the quality and value of Vietnam's seafood.

The Prime Minister recently issued Decision No. 1664/QD-TTg approving a project on marine aquaculture development to 2030, with a vision to 2045.

According to Tran Cong Khoi, deputy head of the Directorate of Fisheries’ aquaculture department under the Ministry of Agriculture and Rural Development (MARD), Vietnam is plagued by improper planning, underdeveloped infrastructure, diseases, and natural disasters.

Only a few enterprises invest in industrial marine aquaculture models since they require a lot of resources, he said.

The fisheries sector is working with organisations, units, and individuals to help coastal fishermen develop aquaculture at sea, he said, stressing that it is necessary to develop large-scale standardised farming areas to turn out products meeting standards for export.

Khoi said many community-based aquaculture models have been developed and proven effective. He added that the sector is collaborating with several companies to implement such models in Phu Yen, Binh Dinh, Ca Mau, and Kien Giang provinces.

Nguyen Thi Hai Binh, general director of STP Group JSC, said the agricultural sector should build planning for offshore aquaculture linked with tourism development to maximise the potential.

According to Minister of Agriculture and Rural Development Le Minh Hoan, marine aquaculture is one of the solutions to reduce exploitation and conflicts in the process of protecting fisheries resources to develop a sustainable fisheries industry.

Businesses, cooperatives, and farmers need to join hands in promoting sustainable marine exploitation and conservation, aiming to effectively and sustainably exploit resources for the marine farming industry, he stressed.

Binh Duong leaders hold dialogue with Korean enterprises

The People's Committee of the southern province of Binh Duong on November 17 held a dialogue with representatives of Korean businesses in the locality. 

The dialogue was co-chaired by the Secretary of the provincial Party Committee Nguyen Van Loi, Consul General of the Republic of Korea (RoK) in Ho Chi Minh City Shin Choong Il, and Chairman of the RoK Business Association in Binh Duong Kim Jin Woo and other provincial leaders.

At the event, representatives of Korean businesses raised ideas about issues, including power supply for production, tax refund procedures, customs, environmental inspection, fire prevention and fighting, and construction permits.

They also complained that many administrative procedures and processes are causing difficulties for businesses, for example, immigration procedures and direct fee payment.

Representatives from provincial departments and agencies cleared up issues raised by the Korean businesses.

On this occasion, Nguyen Van Loi, Secretary of the provincial Party Committee, thanked Korean businesses for coming to Vietnam and Binh Duong and contributing greatly to the province's economic development.

Through the dialogue, the provincial leaders and investors can better understand each other, build trust, and solve problems to support businesses in promoting production and business, he said.

The official requested the provincial People's Committee and relevant departments to increase guidance and support for businesses to complete legal procedures and resolve pending issues. 

In the first 10 months of this year, Binh Duong province attracted nearly 1.35 billion USD poured into 108 new projects, 36 projects increasing capital, and 116 projects with capital contributions and share purchases. 

By the end of October 2023, the province had lured 4,192 valid investment projects from 65 countries and territories with total registered capital of more than 40 billion USD. Among them, the RoK ranks second in the number of projects with 769 projects and total investment capital of 3.3 billion USD.

“Meet Bac Ninh – Japan” programme held

A programme entitled “Meet Bac Ninh – Japan” was organised in the northern province of Bac Ninh on November 17, on the occasion of the 50th founding anniversary of Vietnam-Japan diplomatic ties.

Speaking at the event, Secretary of the provincial Party Committee Nguyen Anh Tuan said among 39 countries and territories investing in the province, Japan has invested in 100 FDI projects, mostly in the fields of electronic component manufacturing and mechanical engineering, with combined registered capital of over 1.67 billion USD, or nearly 7% of the total.

Japan has strengths in high-tech industries, especially in information and communication technology, digital technology, nanotechnology, biotechnology, new materials, and more, which are the fields Bac Ninh are calling for investment to develop itself into a hub for industrial and hi-tech development, he said.

Tuan expressed his wish that the Japanese Embassy in Vietnam and the Japan External Trade Organisation (JETRO) would continue providing Japanese firms with information about the local business environment. He also suggested participating Japanese firms introduce more domestic investors to Bac Ninh province.

At the event, leaders and representatives from departments and agencies introduced the province's potential, strengths and future investment directions. They also talked about the current operations of enterprises in industrial zones and those from Japan in particular, and answered questions regarding electricity supply for production, support for Japanese small firms and high-quality workforce.

Leaders of the Japanese firms affirmed that with its favourable location and attractive business environment, Bac Ninh is their priority manufacturing destination.

On this occasion, IOZ Company, a subsidiary of Moriga Company, donated 500 software accounts for management of drivers with alcohol concentration and 20 alcohol concentration measuring devices to Bac Ninh.

A Memorandum of Understanding (MoU) on cooperation was also signed between the provincial People's Committee and Nihon Toyo Group of Japan.

An interim executive board of the Vietnam-Japan Friendship Association of Bac Ninh province made its debut, and an MoU on cooperation between the Vietnamese Association in the Kansai region and the provincial Vietnam-Japan Friendship Association was also inked.

HCM City, European partners further promote economic cooperation

Ho Chi Minh City and European partners will continue to study and implement cooperation in the fields of economy, commerce, and investment effectively.

Leaders of the municipal People’s Committee and Ambassadors of European Union (EU) member nations to Vietnam reached the agreement at their meeting in HCM City on November 17.

Vice Chairman of the HCM City People’s Committee Vo Van Hoan emphasised that the EU is one of the most important partners of the city. HCM City treasures and highly evaluated the EU member states’ support to the city's construction and development process, particularly in green transition.

He expressed his wish that the EU will continue to support development projects in Vietnam, particularly HCM City.

It hopes to strengthen cooperation with European partners in areas in which they have strengths and the city has demand for such as green transition, digital transformation, climate change adaptation, innovation, and startup.

Hoan pledged that the city will do its best to ensure a stable socio-political environment, ensure legitimate rights and interests of investors, and create favourable conditions for foreign businesses, including European enterprises, to operate stably, effectively and for the long-term in the city.

For his part, Ambassador Julien Guerrier, Head of the EU Delegation to Vietnam, affirmed that the EU always attaches importance to its relations with Vietnam, especially in cooperation and assistance to transport infrastructure development, healthcare, education, and climate change response.

The EU member states appreciated HCM City’s economic potential and want to strengthen cooperation with the city across the fields of economy, commerce, and investment, he said.

Sustainable development opens up many opportunities for businesses, investors

Implementing green growth and sustainable development goals is a challenge but also an opportunity for the business community and investors in Vietnam, participants heard at a conference on November 16.

With the theme "Taking Responsibility, Taking Action", the sustainable development conference was organised by the Investment Review. It aims to bring multi-dimensional perspectives on responsibility and action for Vietnam to build a green economy, realising the net zero goal by 2050.

The event took place two years after the UN Climate Change Conference (COP26), where 197 countries participating in the United Nations Framework Convention on Climate Change adopted a historic agreement. The agreement reaffirmed maintaining the goal of limiting global temperature rise to 1.5 degrees Celsius above pre-industrial levels and countries including Vietnam have committed to bringing net emissions to zero by 2050.

Speaking at the event, Deputy Minister of the Ministry of Planning and Investment Tran Quoc Phuong said that sustainable development had become an overarching trend in the world.

“Green growth and sustainable development have a close relationship with each other, being both a viewpoint and a goal throughout the socio-economic development policies of the Party and State, as shown in the 10-year socio-economic development strategy and 5-year socio-economic development plans of Vietnam, in which green growth is an important method to implement sustainable development,” said Phuong.

He said that Vietnam faced a number of difficulties and challenges due to the rapid urbanisation process, creating great pressure on the need for infrastructure development and environmental pollution treatment. In addition, there are challenges of natural disasters, climate change and the effective and sustainable exploitation and use of water, natural resources and land.

“Implementing green growth and sustainable development goals will be both a challenge and an opportunity for the business community and investors,” he stressed.

Phuong also proposed a number of key solutions to promote and transform the implementation of sustainable development goals in the coming time.

“It is necessary to perfect and improve the quality of socialist-oriented market economy institutions; Enhance the efficiency and effectiveness of policy implementation through public administration reform and continue to promote the participation of disadvantaged groups in the decision-making process,” he stated.

At the same time, the Deputy Minister also emphasised the need to continue to prioritise investment in human resource development, science and technology, innovation and improvement of the economic infrastructure system to improve productivity and promote sustainable economic growth.

Solutions also need to focus on effective management and use of resources, strengthen environmental protection and response to climate change, prevent, combat and mitigate natural disasters; and promote the development of green economy and circular economy.

Le Trong Minh, editor-in-chief of Investment Review, highlighted sustainable development as an important task for Vietnam, a developing economy, and also one of the five countries most heavily affected by climate change.

As a developing country, Minh said, there were still many difficulties but Vietnam had made commitments to respond to climate change like developed countries. Therefore, Vietnam would need appropriate steps and roadmaps as well as support and assistance from developed countries and partners in terms of capital, human resource training, institution building, technology, and governance.

At the same time, Vietnam also needed a business community with a high awareness of responsibility and proactive action, even when facing great difficulties and challenges in terms of financial and human resources. That’s the goal that the newspaper organised the conference, with discussions on responsibilities and actions from relevant parties to realise sustainable development goals, according to Minh.

The event was an opportunity for policymakers, representatives of management agencies, international organisations, economic experts and the business community to discuss multi-dimensional perspectives on responsibility and action for Vietnam to build a green economy and realise the net zero goal by 2050.

The conference also heard economic experts and business leaders sharing their efforts in implementing sustainable development and responding to climate change and proposed recommendations on sustainable development and perfecting the green transformation strategy of businesses in Vietnam.

Vietnam attends Taiwan Food, Coffee, Tea & Wine Expo 2023

As many as 20 Vietnamese enterprises are showcasing their range of products at the Taiwan Food, Coffee, Tea & Wine Expo 2023, according to a representative of the Vietnam Trade Promotion Agency (VIETTRADE).

The presence of several renowned Vietnamese brands in the expo is part of the programme on building brand strategies for the food industry in general, as well as the local tea and coffee industry in particular, said the VIETTRADE representative.

The main goal of the scheme is to build and promote a common and unified image for the Vietnamese food industry within the international market, increase awareness and recognition of Vietnamese food, build a reputation for quality and value of Vietnamese food, with a specific focus on tea and coffee.

It also aims to optimise added value for food production and processing in Vietnam, along with promoting the export of Vietnamese food products.

According to the VIETTRADE representative, on display at the expo are potential products which Vietnam boasts strengths in to promote exports to Asian markets.

This year’s expo has attracted the participation of 1,500 booths from 800 international enterprises. It is scheduled to last until November 20.

Vietnamese agriculture items become premium consumer products in US

Journalist Douglas Yu of US business magazine Forbes recently published an article affirming that Vietnamese agriculture has become a new frontier for premium consumer products in the US.

According to the journalist, a favourable tropical climate all year round, an abundance of natural resources, and local authorities’ prioritisation of sustainable farming practices are factors helping Vietnam to become an increasingly popular destination for US manufacturers to source high-quality agricultural produce, ranging from rice, green coffee, cashew to walnuts.
  
He quoted statistics released by the Ministry of Agriculture and Rural Development (MARD) as saying that the domestic agricultural sector has experienced its highest growth, reaching 3.36% in 2022, compared to the past three years, thanks in part due to local government funding and incentives.

“According to Census Bureau, the U.S. is one of the top trading partners with the Southeast Asian country, and has recently surpassed China and Cambodia to become Vietnam’s largest business associate in the agricultural industry with an export turnover of US$10.8 billion,” he wrote.

To understand how Vietnamese products have become the new premium for US consumers, the journalist mentioned the recent rise of Vietnamese coffee as exemplified by Nguyen Coffee Supply, as well as the expansion of the nation’s Trung Nguyen Legend as it opened its first US location in the heart of Little Saigon in Westminster of California.

He also quoted Nguyen Nam Hai, chairman of the Vietnamese Coffee and Cocoa Association, as saying that sustainability plays a major role in driving interest in growing more robusta beans, with the country accounting for more than half of the global robusta supply.

Yu outlined that robusta coffee serves as a quintessential part of Vietnamese culture and social life to a degree that international coffee behemoths are scrambling to compete domestically.

According to the journalist, typical US consumer interest in Vietnamese coffee is also heating up, as evidenced in Nguyen Coffee Supply’s 1,100% annual growth in retail distribution across Whole Foods Market (WFM) and other regional independent stores, as well as several new entries to the market such as Sang and Nam Coffee.

He stressed that a cost-efficient labour market and close ties with the US are also serving to lure American CPG operators to increasingly capitalise on the benefits of the Vietnamese market.

“When we went to Vietnam and spoke to the local people, they seem to really love the idea of working with Americans, and it was such a two-way street of gratitude,” the article quoted Dominic Purpura, founder and CEO of Mela, a rapidly growing premium watermelon juice brand.

Yu went on to reveal that Anthony Cadieux II, who cofounded ultra-premium coconut water company CoAqua with Justin Bruckel, said that the waterways of the Mekong Delta in Vietnam are exactly what his company needs.

“In my opinion, Vietnam has become a source of premium ingredients due to the country’s emphasis on sustainable farming practices,” Cadieux said.

“What also stands out is the pride the Vietnamese people take in producing the highest quality fruits, vegetables, and other agricultural products,” he added.

Ho Chi Minh City forum seeks to develop green logistics for trade boost

Green logistics is considered one of the inevitable trends and needs to form sustainable agricultural and pharmaceutical supply chains, contributing to reducing greenhouse gas emissions.
 
The view was shared by Vietnamese and Australian experts at a green logistics forum held in Ho Chi Minh City on November 17.
      
Optimizing environmentally friendly transportation services is needed in an attempt to complete a green supply chain from production to consumption.

Addressing the forum, Le Duy Hiep, president of the Vietnam Logistics Business Association (VLA), noted that Vietnam and Australia were among nearly 150 countries that committed to bringing greenhouse gas emissions to zero by 2050 at the 26th UN Conference on Climate Change (COP26) in Scotland in 2021.

This requires both countries to promote green transformation in the logistics industry to support trade, especially for importing and exporting agricultural products and pharmaceuticals, which bring in large turnover in two-way trade between Vietnam and Australia, he said.

According to the VLA president, the development of the logistics system helps not only to ensure safety and efficiency in transportation but also to promote the growth of agricultural and pharmaceutical products in the markets of both countries.

Taking the floor, Cherie Anne Russell, development counselor at the Australian Embassy in Vietnam, said that Australia is keen to boost cooperation with Vietnam in agriculture and the pharmaceuticals industry that are developing strongly thanks to people’s increasing income and high economic growth.

Logistics, therefore, plays an important role in forming the import-export supply chain to promote trade and investment between Vietnam and Australia, said Russell, stressing green logistics is considered a future trend that reflects the positive responsibility of businesses and improves competitiveness.

Meanwhile, Assoc. Prof. Dr. Ho Thi Thu Hoa, director of the Vietnam Logistics Research and Development Institute (VLI), pointed out Vietnamese agricultural exports to Australia recorded an average growth rate of 11% per annum in the 2018 – 2022 period. Some fruits such as mango, dragon fruit and longan have gained a firm foothold in the Australian market. In 2022 alone, a large amount of agricultural products including rice, pepper, coffee and cashew nuts were exported to this market, with the average export growth rate reaching 6.8%.

However, Hoa stated that businesses also encounter difficulties in shipping products to Australia, including high transport costs and strict delivery policies.

To improve export performance, she suggested that businesses strengthen quality control, and promote digital transformation in agriculture. In addition, she said it is imperative to improve logistics infrastructure, and enhance environmentally friendly transportation and connections between organizations to promote the development of green logistics for agricultural products in Vietnam.

Experts pointed out challenges to the shift to green logistics, including huge investment in infrastructure and technology, but stressed green logistics is an indispensable requirement to complete the green supply chain from production to consumption. They suggested that Vietnam optimize performance and production, consider the use of green energy vehicles, and build a roadmap for a greener future, taking into account the country’s actual conditions.

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