Tuna exports brought home 693 million USD during the first 10 months of 2023, falling 22% year on year and ranking third among aquatic products, reported the Vietnam Association of Seafood Exporters and Producers (VASEP).

During the period, total overseas shipments of aquatic products declined 21% to 7.4 billion USD, with all the products recording lower export revenue compared to the same period last year, VASEP said.

The biggest importers of Vietnamese tuna were the US, Israel, Thailand, Japan, Canada, and Germany. While exports to Israel, Thailand, and Germany posted good growth, shipments to the US, Japan, and Canada plunged.

Notably, tuna exports to the US, the largest market, dropped 41% from a year earlier during the first nine months of this year.

Meanwhile, the nine-month exports to Poland shot up 125% to top 4 million USD, statistics show.

Poland is the seventh largest EU market of tuna from Vietnam, VASEP noted, considering the continuous growth in this country’s tuna imports over the last five years as a good chance for Vietnamese products there.

Vietnam is currently the third largest non-EU supplier of tuna for Poland, after Ecuador and the Philippines. While the Philippines’ exports to this market have been decreasing, Vietnam’s are now on the rise, the association said.

Canned fish made up the biggest proportion, more than 83%, among tuna products shipped to Poland, with a surge of 211% in value.

Businesses attributed the soaring exports to Poland partly to impact of inflation. Higher prices in supply chains such as vegetable oil, can, and carton package prices have also boosted importers’ direct purchases.

Though exports to the UK have fallen in recent months, total tuna shipments there still climbed 48% during January - September to over 5.5 million USD. The export value of fresh and frozen tuna products rose sharply compared to the same period last year.

With a modest market share of 1%, Vietnam ranks 13th among the tuna suppliers for the UK at present, according to VASEP.

Vietnamese bird’s nest products enter China

The first batch of Vietnamese bird's nests has smoothly gone through customs at the Youyi Guan international border gate in Pingxiang city, the Guangxi Zhuang Autonomous Region of China, to enter China, according to Chinese media. 

The batch comprises 100kg of bird's nests worth 907,000 RMB (over 126,00 USD).

China is the world largest bird’s nest consuming market with a demand of more than 300 tonnes per year, accounting for about 80% of the global consumption.

Chinese data showed that China imported 220 tonnes of bird’s nests in 2020, more than 300 tonnes in 2021 and 425 tonnes in 2022, mostly from Indonesia, Malaysia, Thailand and now Vietnam.

In Vietnam, swift farming for nests for commercial purposes is a new industry, which started in 2004 in southern provinces and has since developed rapidly over the last decade.

Currently, 42 out of 63 provinces engage in bird's nest farming with over 22,000 bird's nest houses. Vietnam's annual bird's nest output is about 150 tonnes worth over 600 million USD. With the effectiveness of the protocol with China, the bird's nest industry has many opportunities for development.

Following durian and dragon fruit, the export of bird’s nests of Vietnam to China are expected to bring high export value for the country.

Hai Phong eyes stronger trade cooperation with India

A conference promoting business opportunities and connection between the northern port city of Hai Phong and Indian partners has been held in both face-to-face and online formats as part of the Red River Delta – Hai Phong Industry and Trade Fair hosted by the municipal People’s Committee.

Jointly organised by the municipal Department of Industry and Trade, the Asia-Africa Market Department under the Ministry of Industry and Trade (MoIT), and the Vietnam Trade Office in India, the event saw the participation of representatives from 100 businesses of India and Hai Phong city. 

Addressing the event, Vice Director of the municipal Department of Industry and Trade Nguyen Cong Han said the ASEAN-India Free Trade Agreement, which officially took effect in 2010, has helped boost trade relations between Vietnam and India in general, and between Hai Phong and India in particular.

However, the trade turnover between Hai Phong and India remains modest. The trade value between the two sides reached over 202.5 million USD in 2022, down 3.72% compared to 2021. Meanwhile, the figure in the first 10 months of 2023 was 160.86 million USD, up 6.26% year-on-year, he said.

With its advantages in terms of seaports, manufacturing, textiles, footwear, and aquaculture, Hai Phong's industries satisfy the demand and preferences of the Indian market. The event was expected to further boost trade connections between Hai Phong and India firms, contributing to promoting bilateral export-import activities.

Do Quoc Hung, Deputy Director of the Asia-Africa Market Department, said this was a significant event in the context that there remains potential and opportunities for stronger cooperation between Vietnam and India.

The Indo-Vietnamese Chamber of Commerce & Industry (IVCCI), the Confederation of Indian Industry (CII), the Federation of Indian Chambers of Commerce and Industry (FICCI), and the Federation of Indian Export Organisations (FIEO), have consistently supported the MoIT and the Vietnam Trade Office in India in promoting economic, trade, and investment relations between the two countries, he added

Chairman of IVCCI in Hanoi Indronil Senguta highly evaluated the business and investment environment in Vietnam, saying that the Southeast Asian country has effectively leveraged the global trend of production chain diversification by major corporations in the world.

Numerous Indian investors are very interested in the Vietnamese market, especially in provinces and cities with convenient connectivity and transport like Hai Phong, which is considered Vietnam’s northern gateway, he said.

Hai Phong is one of the most important economic hubs in Vietnam, ranking third among the largest contributors to the national budget. Hai Phong is the largest import-export centre in the North, having trading relations with more than 40 countries and territories around the world.

By September 30, 2023, the port city attracted over 1,000 foreign direct investment (FDI) projects worth nearly 28 billion USD. In the first nine months of this year, FDI inflows in the city hit over 3 billion USD, up over 140% compared to the same period last year.

Vietnam’s vegetable export to surpass 1 bln USD by 2030

Vietnam’s vegetable export revenue is forecast to reach about 1-1.5 billion USD by 2030 under a project recently approved by the Ministry of Agriculture and Rural Development.

The nationwide vegetable production is estimated at 23-24 million tonnes, with around 1-1.3 million tonnes designated for processing.

Under the project, safe and concentrated vegetable growing areas with clear origin will be developed in order to meet domestic and export demand, contributing to national food security, food safety and hygiene, and improving community health.

By 2030, the national vegetable cultivation is projected to cover an area of some 1.2-1.3 million hectares. The area dedicated to safe and concentrated vegetable production will be around 360,000-400,000 ha, roughly 50,000-60,000 of which will be for processed vegetables, including various types of tomato, cucumber, chilli, potatoe, and leafy greens.

Provinces and centrally-run cities must draw investments in agriculture and rural areas and step up the formation of integrated production chains for vegetables, starting from cultivation zones to processing and consumption.

For exports, the strategy involves maintaining existing traditional markets for while actively expanding into new ones. Proactive negotiation to eliminate trade barriers is crucial, thus making it easier for Vietnamese vegetable products to be widely consumed in the global market.

Project benefits sustainable pepper production in Central Highlands

An event was held in the Central Highlands province of Dak Lak on November 20 to review a project on promoting sustainable production and trade of Vietnamese pepper.
The event was co-hosted by the Sustainable Trade Initiative (IDH), the European Union (EU) Delegation to Vietnam, the Ministry of Agriculture and Rural Development’s Plant Protection Department and the Vietnam Pepper Association.

In her opening statement, Director of the IDH Vietnam Programme Phan Thi Van said the Central Highlands accounts for around 60% of the country's pepper cultivation area with over 70,000 ha. In recent years, the Vietnamese pepper industry has struggled with global competitiveness in terms of quality and prices, impacting the livelihoods of local pepper farmers. It is attributable to the improper use of agricultural chemicals, unsustainable farming practices, and a lack of updates on trends and new market requirements.

Funded by the EU and the IDH, the project is carried out from 2021-2023 in the provinces of Dak Lak, Dak Nong and Gia Lai in order to help Vietnam reap the benefits of bilateral trade commitments and boost the export of quality products and services to the EU.

Through the project, nearly 8,000 farmers have improved their knowledge and green agricultural practices over an area of 8,500ha. Over the course of three years, the project has achieved several outcomes, such as a 60% increase in the volume of pepper seeds adhering to the residue requirements of the premium market; 50% of pesticide dealers committing to comply with pesticide management regulations; a 98% reduction in the use of banned pesticides, among others.

From November 19-20, representatives from the EU Delegation to Vietnam, the IDH and other partners visited the project area in Cu M'Gar district and a pepper processing plant in Dak Lak.

Binh Duong to host high-level forum on green growth in 2024

A high-level forum on green growth is expected to be held in the southern province of Binh Duong next year as its organisation plan was discussed at a meeting between the European Chamber of Commerce in Vietnam (Eurocham) and local leaders on November 20.

Eurocham, which represents more than 1,400 European businesses in the country, is committed to supporting Vietnam, especially its southern province of Binh Duong, in green economy development, EuroCharm Vietnam Vice Chairman Dominik Meichle said, noting his hope that with the close cooperation, the forum, together with an exhibition to be held on this occasion, will be a success.

Vice Chairman of the provincial People's Committee Nguyen Loc Ha highlighted Binh Duong’s achievements in foreign investment attraction, saying the locality now ranks second nationwide in this regard with more than 40 billion USD.

The official also briefed the Eurocham side on Binh Duong’s priorities in investment attraction that are high-tech, environmentally friendly and less labour-intensive fields, in order to create high economic values and meet the requirements of the green economy.

Notably, Binh Duong is striving to build a smart city with green industry and urban areas, he said, adding that the province has lured investments from 65 countries and territories with nearly 4,200 valid projects.

Ample room remains for Vietnam, Hong Kong trade cooperation

There remains room for Vietnam and Hong Kong (China) to cooperate in a range of fields from trade and investment to services, finance and logistics, heard the Vietnam-Hong Kong Business & Investment Matching held in Ho Chi Minh City on November 20.

The event was jointly organised by the Institute for Economics and Trade Development (IETD) in collaboration with the Young Executives Club of the Hong Kong General Committee of Commerce (HKGCC) and the Vietnam Trade Office in Hong Kong.

Nguyen Van Quan, Chairman of the IETD’s Board of Management, said that trade exchange between Vietnam and Hong Kong is growing over 10% a year. Vietnam exported goods worth 10 billion USD to Hong Kong last year and imported commodities worth 1.78 billion USD from Hong Kong, an year-on-year increase of 19.8%.

Regarding investment, Hong Kong is currently the 5th largest foreign investor in Vietnam, with 2,164 projects capitalised at nearly 29.5 billion USD, focusing on processing and manufacturing industry, real estate, and electricity, gas and water production and distribution.

According to Quan, Hong Kong is also a trade and tourism hub and a major regional transit centre, and it is considered a very potential market for Vietnamese food, so opportunities for cooperation and business investment of Vietnamese enterprises in Hong Kong are huge.

Bui Dang Dung, former Deputy Chairman of the National Assembly's Finance-Budget Committee, said Vietnam is a developing open economy and one of the most actively integrating economies in the region. It is fully converging the factors that international investors in general and Hong Kong in particular are interested in, such as politic stability, wide market and abundant human resources. Meanwhile, Hong Kong, with its strength as a financial and banking centre of the region, can connect Vietnam with the region and with major European and American countries, especially in the development of science-technology, innovation, investment cooperation, finance, trade and logistics.

Edmond Yue, a HKGCC member, said the connection of Vietnam and Hong Kong creates good opportunities for prosperous development, adding Hong Kong investors consider Vietnam an attractive and vibrant market in the region.

Hong Kong businesses are increasingly interested in investment and trade cooperation with Vietnam, Yue said, elaborating that at the forum, they want to discuss and visit Vietnamese manufacturing plants and projects that are calling for investment to promote cooperation opportunities.

Sport Show and Cycle Expo unite to present a synergistic showcase

The highly anticipated Vietnam Sport Show 2023, organised by VINEXAD, will feature 250 exhibitors showcasing a wide range of cutting-edge sports products and innovative solutions, captivating both visitors and participants.

Taking place from December 7 to 9 at the Saigon Exhibition & Convention Center in HCM City, the event will present 350 booths from 12 countries and territories.
With a focus on Sportswear, Outdoor & Leisure, Health & Fitness, and Sporting Goods & Facilities, attendees can explore the latest trends, innovations, and business opportunities in these key categories.The event is anticipated to welcome over 10,000 visitors over the course of three days.

Vietnam Sport Show 2023 offers unparalleled networking opportunities, connecting industry leaders, suppliers, and professionals from around the world.

It serves as the ultimate platform for forging valuable connections and partnerships within the sports and outdoor sector. Furthermore, the B2B matchmaking sessions at the expo is designed to facilitate meaningful connections, allowing participants to explore potential collaborations, source products, and stay updated on industry trends.

The Vietnam Sport Show 2023 will be held concurrently with the Vietnam Cycle Expo, creating an extraordinary synergy between the two events. The Vietnam Cycle Expo is an exciting exhibition dedicated to bicycles and accessories, attracting cycling enthusiasts and industry professionals alike.

The convergence of the Vietnam Sport Show and Vietnam Cycle Expo promises attendees a comprehensive experience, where they can explore a myriad of sports and fitness-related products alongside the latest trends and innovations in the cycling industry. This unique combination offers a diverse range of offerings, catering to the interests of sports enthusiasts, fitness professionals, and cycling enthusiasts.

30 Vietnamese processed food firms seek export opportunities in Canada

As many as 30 local processed food firms gathered at a trade exchange event held on November 20 in Ho Chi Minh City to seek export opportunities in Canada.

The three-day event takes place as part of activities held within the framework of the Memorandum of Cooperation Agreement signed between the Vietnam Trade Promotion (Vietrade) and the Canada's Trade and Investment Promotion Agency, with the ultimate aim of improving the export capacity of Vietnamese small and medium-sized enterprises (SMEs), especially SMEs owned by women.
  
Tran Thu Quynh, Vietnamese Trade Counselor in Canada, said that through participation in the programme, local SMEs were given the opportunity to join training courses and enhance linkages with Canadian buyers as a way of gaining greater insights into market information and customer tastes, thereby developing their products, improving their competitiveness, and gaining access to import markets.

The function also helped businesses to learn more about standards, quality, and new market requirements for demanding markets like Canada.

The organisation of direct business match sessions are expected to support Vietnamese SMEs as they develop sustainably towards fully tapping into fastidious export markets such as Canada and those based in the North American region, she noted.

Vietnamese rice makes inroad into European market

Local rice has been consumed in the European market without any rice shipments exported to the highly lucrative market being warned during the past two years.

This information was released at a recent conference on regulations and commitments on sanitary and phytosanitary measure (SPS) in the EU-Vietnam Free Trade Agreement (EVFTA).
  
Ngo Xuan Nam, deputy director of SPS Vietnam Office, said that at present the nation joined the World Trade Organization (WTO) more than 16 years ago, alongside 19 free trade agreements (FTAs) and officially signing 16 agreements. Among them, many are considered to be new generation trade agreements.

After these agreements were signed, Vietnamese agro-forestry-fishery exports to EU member states were promoted.

For many years, the country’s export value has always reached several high milestones, especially over the past two years when export value hit more than US$ 50 billion, with this figure expected to rake in over US$54 billion this year.

In particular, in August, 2020, the EVFTA helped to promote two-way agricultural exports between Vietnam and EU countries.

Most notably, major commodity industries such as seafood, rice, fruit, and some food products are also bolstered for exports to the EU market. In contrast, the Vietnamese side has also imported a number of products originating from animals and plants from the EU market.

According to Nam, for Vietnamese rice products being exported to the EU market in recent years, under the direction of the Ministry of Agriculture and Rural Development and through the direction of local authorities, no Vietnamese rice shipments exported to the EU market have been warned.

​“Thus, the quality of Vietnamese rice fully meets the requirements of this demanding market. In particular, the EU market is one of the markets that requires a lot of very high standards but we can still meet them," Nam added.

According to statistics released by the General Department of Customs, Vietnamese rice export turnover reached 7.1 million tonnes with a value of US$3.46 billion last year, marking an increase of 13.8% in volume and a rise of 5.1% in turnover compared to 2021.

The average export price stood at US$486.2 per tonne, down 7.7% compared to the average level recorded in 2021.

Although it only accounts for a small proportion of 2.45% of total exports, the European market has enjoyed strong growth of up to 90.7% compared to 2021, duly reaching 172,200 tonnes.

According to the Ministry of Agriculture and Rural Development, rice exports in the first half of the year to several markets in the EU grew at three-digit rates such as Poland which increased by 117%, Belgium up by 165%, and Spain up by 308%.

Regarding export rice prices, the average price throughout the reviewed period reached an estimated US$539 per tonne, up 10% over the same period from last year. However, rice exports to the EU often saw prices many times higher than this average number.

The EU is a potential export market for many types of Vietnamese agro- forestry- fishery products moving forward thanks to the market size of more than 500 million people and the growing consumer demand for agricultural and food products, along with the commitment to reduce most of tariffs in the short roadmap under the EVFTA, Nam continued.

However, this is also one of the most fastidious markets with very high animal and plant quarantine regulations and strict control, especially with agro- forestry- fishery products.

According to many experts, the trend of the EU market is to increase technical barriers when reducing tariff barriers.

Along with government regulations, the EU market also offers numerous standards and certifications from consumer associations, non-governmental organisations, and retailers in which businesses that want to export must comply with as global standards on food safety requirements.

Import-export target of 700 billion USD tough to complete

The target of 700 billion USD in import-export revenue for this year is a tough one amid current difficulties in the global market, said insiders.

According to the Ministry of Industry and Trade (MoIT), in the first 10 months of this year, Vietnam’s import-export revenue reached 558 billion USD, down 9.6% year on year, with exports dropping 7.1% and imports falling 12.3%.

The results make it challenging to fulfil the goal for the whole year, as from now to the end of the year, the revenue must reach 71 billion USD which is hard in the context of fierce strategic competition among world powers, increasing uncertainty and slow global economic recovery, the ministry said.

In this context, the MoIT is rolling out various measures to support businesses in promoting exports.

Do Ngoc Hung, head of the Vietnam Trade Office in the US, said that the agency is working to strengthen the connections between local buyers with Vietnamese suppliers, while assisting the selling of Vietnamese products in the distribution system of the US.

Meanwhile, Mac Quoc Anh, Vice President and General Secretary of the Hanoi Association of Small and Medium-Sized Enterprises said that businesses hope that the State Bank of Vietnam and commercial banks consider the reduction of conditions for loan borrowing by 50% and only apply basic conditions, thus enabling enterprises to access loans more easily with larger amount.

Anh held that the most important thing at the moment is to “warm up” the overall demands, helping business clear their inventories and get more cash flow for production and business activities.

He advised companies to actively engage in connections and promotion programmes in localities across the country, especially far-flung areas to stimulate people's consumption.

Domestic investors outpace foreign peers in southeastern region

Domestic investors outperformed their foreign counterparts in the southeastern region, as many localities have paid heed to luring capital flows at home to ensure sustainable growth.

The Ho Chi Minh City Export Processing and Industrial Zones Authority (HEPZA) reported that in the first 10 months of this year, domestic investors poured 17.95 trillion VND (764 million USD) into industrial parks in the metropolis, while foreign direct investment (FDI) stood at only 184 million USD.

Binh Duong province, an industrial hub, attracted 71.44 trillion VND and 1.3 billion USD in the reviewed period. The trend was also seen in its neighbour Dong Nai province with 50.75 trillion VND and over 1 billion USD, respectively.

Over the past time, the localities have been selective in investment attraction, prioritising high-tech, less labour-intensive and environmentally friendly projects, experts explained. 

Moreover, the industrial land fund in many cities and provinces in the region have narrowed, while new industrial parks have yet to be formed, making them unable to house FDI projects. 

Investors have seen great opportunities in the region whose infrastructure is expected to be completed by 2026 with Belt Road No. 3 in HCM City, Bien Hoa-Vung Tau and Ben Luc-Long Thanh Expressways, and Long Thanh International Airport.

Therefore, those from the US and Japan, and domestic firms have continuously proposed urban area, industrial park and high-tech agriculture projects in Dong Nai and Binh Duong.

Many have suggested the localities further improve their investment environment, upgrade infrastructure, and pay more attention to personnel training.

In response, leaders from such provinces as Binh Duong and Dong Nai have regularly met domestic associations and businesses to seek ways to remove their obstacles given declining orders, and support small- and medium-sized enterprises in digital transformation.

Vietnamese business helps develop blockchain technology in Cambodia

Vietnam’s Unicorn Ultra (U2U) ecosystem, an All-in-One platform for potential builders, opened its representative office in Cambodia to introduce, build and develop products applying blockchain, artificial intelligence (AI), and Big Data.

Tran Duc Vinh, co-founder of Unicorn Ultra, said this is a milestone marking U2U's presence and commitment to customers and partners in Cambodia as well as the region, and emphasised that the opening of the office in Cambodia is prompted by not only its strong economic development potential, but also the friendliness of the local community.

He shared that to date, 30 countries around the world have joined and accompanied U2U.

Unicorn Ultra is a Layer-1 blockchain platform designed based on the venture builder model that enables creators and developers to build any potential projects to serve for a decentralised future. U2U is governed by a decentralised council that aims to take advantage of community power to create global blockchain unicorns.

Heavy workload for public investment disbursement to the year-end

Minister of Planning and Investment Nguyễn Chí Dũng has sent an Official Dispatch to relevant ministries and agencies asking for hastened efforts to speed up the disbursement of public investment in the remaining months of this year amid disappointing results in January – October.

Updated statistics showed that more than VNĐ401.8 trillion (nearly US$17 billion) worth of public investment was disbursed as of October 21, or 56.75 per cent of the Government’s plan.

Forty-one ministries and central level agencies together with 24 localities had disbursement rates below the country’s average.

There are only two months left until the end of this year while the public investment sum to be disbursed amounts around VNĐ300 trillion.

The workload is heavy in the last two months this year to fulfil the target of public investment, Deputy Director of the Investment Department Lê Tuấn Anh under the Ministry of Finance said.

“The Government’s goal of disbursing at least 95 per cent of allocated public investment this year seems to be beyond reach,” he said.

To speed up the public disbursement, the finance ministry said that drastic measures must be raised to remove bottlenecks in the implementation of public-invested projects, especially in site clearance, investment procedures and shortage of building materials for several products in the Cửu Long (Mekong) River Delta.

Especially, the lack of accountability is one of the major causes for the stagnation in the implementation of public-invested projects, he said.

He said that the transfer of capital from projects with slow disbursement to projects with good disbursement rates must be completed quickly.

The reasons and responsibilities in projects proposed to extend implementation and disbursement into the following year must be clarified in order to increase the efficiency of state budget capital use, he said.

Localities are accelerating public investment disbursement, but the target of 95 per cent disbursement rate is challenging to many.

The finance ministry’s statistics showed that 15 ministries and central level agencies report disbursement rates below 10 per cent, and 4 localities below 30 per cent.

HCM City, for example, reported a disbursement rate of 35 per cent in the first 10 months of this year.

Still, the southern city is determined to meet the target of 95 per cent disbursement rate this year.

Lê Thị Huỳnh Mai, Director of HCM City Department of Planning and Investment, said that the city must disburse nearly VNĐ44 trillion by the end of December, a huge pressure in the last two months of this year.

Earlier this month, the municipal People’s Committee launched a 60-day emulation to push the effort to fulfil the public investment disbursement goal.

“The municipal authorities will drastically implement solutions in the remaining months of 2023 to achieve the disbursement target,” Phan Văn Mãi, Chairman of HCM City People’s Committee, said. “If the disbursement rate of 95 per cent cannot be achieved, it cannot be lower than 80 per cent,” he said.

The city’s statistics showed that 79 projects are in stagnation due to problems in site clearance, which blocked the disbursement around VNĐ10.8 trillion. To date, only VNĐ2 trillion has been disbursed and another VNĐ3 trillion is expected to be disbursed by the year end, leaving around VNĐ5.6 trillion unspent.

Another 28 projects are under slow implementation with the fault in investors, expecting a disbursed sum of VNĐ1.6 trillion by the year end, while the allocated sum was more than VNĐ2.4 trillion.

Sixteen projects faced problems in coordination among relevant departments and agencies, expecting a disbursed sum of VNĐ358 billion till the year end, while the plan was VNĐ666 billion.

Đinh Trọng Thịnh from the Academy of Finance said that accelerating the disbursement of public investment requires drastic effort and coordination of the Government, ministries and localities, together with determination for synchronous and comprehensive measures. 

Vietnamese firms urged to foster raw material imports from the UK

Vietnamese firms should foster their imports of raw materials from the United Kingdom (UK) to enjoy preferential tariffs brought by the UK-Việt Nam Free Trade Agreement (UKVFTA), trade experts have suggested.

According to experts, the UK can be a source of quality raw materials for Việt Nam especially because raw materials that Việt Nam needs to import for export production or domestic consumption are items that Việt Nam offers preferential tariffs to the UK.

Under the trade deal, Việt Nam commits to eliminate 48.5 per cent of tariff lines from January 1, 2021; 91.8 per cent of tariff lines from January 1, 2027 and 98.3 per cent of tariff lines from January 1, 2029.

The remaining 1.7 per cent of tariff lines are partially liberalised through tariff rate quotas (the quota volumes are consistent with Việt Nam’s WTO commitments and duties within quotas will be removed by 2031) or not entitled to preferential treatment.

Typically, 61 per cent of tariff lines for machinery and appliances imported from the UK have been removed since January 1, 2021, while import tariffs for all other products will be eliminated after nine years.

For pharmaceutical products, Việt Nam has eliminated 71 per cent of tariff lines from January 1, 2021. All other products will have import taxes eliminated after four to six years.

Meanwhile, the Southeast Asian nation has lifted 80 per cent of tariff lines imposed on raw materials for textiles, garments and footwear from January 1, 2021, while that of all other products will be eliminated after four to six years.

Statistics from the General Department of Customs revealed that Việt Nam imported nearly US$373 million worth of goods from the UK, equivalent to the same period in 2022.

Among staples recording high growth rate included seafood raw materials (233 per cent); iron and steel products (95 per cent); fabrics (72 per cent); plastic products (15 per cent) and machinery, equipment, tools and spare parts (6.4 per cent).

According to the department, items that accounted for a large proportion of Việt Nam's import turnover from the UK in H1 included machinery, equipment, tools, and spare parts (24 per cent); pharmaceuticals (11.8 per cent); chemicals (6.4 per cent); textile, garment, leather, and shoe raw materials (5.2 per cent); seafood and seafood materials 4.6 per cent.

These above-mentioned goods are what Việt Nam needs to import for export production and domestic consumption.

A recent survey by Vietnam Report, a market research company in Việt Nam, showed that a top priority among Vietnamese businesses is to diversify their supply sources, especially for imported raw materials.

According to the report, 72.7 per cent of all participants said they want to seek out new suppliers at lower prices and they want to do so in the near future. 

Shipping firms report disappointing third-quarter business results

Enterprises in the shipping industry reported disappointing third-quarter business results with several companies facing losses.

The lacklustre corporate profits can be attributed, in part, to the recovery of exports and imports in the third quarter of this year, which although improved, still declined in comparison to the same period last year.

Việt Nam Sea Shipping Joint Stock Company (VOS) recently disclosed its business results with a substantial loss, reflecting the challenging conditions prevailing in the shipping market.

In the third quarter, VOS's net revenue experienced a slight increase of nearly VNĐ8 billion (nearly $322,000) compared to the same period last year, reaching VNĐ710 billion ($29.4 million). However, despite the revenue growth, the surge in the cost of goods, which rose by nearly 160 per cent to VNĐ715 billion, resulted in VOS incurring a loss of nearly VNĐ25 billion. This is in stark contrast to the profit of nearly VNĐ152 billion recorded during the same period last year. Consequently, this marks the first quarter where the company reported a loss since the second quarter of 2021.

In the first nine months of 2023, VOS's accumulated profit stood at approximately VNĐ48 billion, a significant decline of nearly 10 times compared to the same period last year.

Cái Lân Port Investment Joint Stock Company (CPI) faced a decline in net revenue, reaching only VNĐ8 billion, down by 46 per cent compared to the same period last year. The company's gross profit plummeted by 91 per cent during this period, amounting to slightly over VNĐ250 million. Additionally, financial revenue experienced a sharp decrease of 92 per cent to VNĐ3 billion, while business management costs rose by over VNĐ1.2 billion. Consequently, Cái Lân Port reported an after-tax loss of VNĐ770 million in the third quarter of 2023, compared to a profit of nearly VNĐ3 billion in the same period last year.

In the first nine months, Cái Lân Port's revenue amounted to VNĐ23 billion, down by 49 per cent compared to the same period last year. The company incurred an after-tax loss of nearly VNĐ1.7 billion during this period, while it had a profit of VNĐ5.5 billion in the corresponding period last year. As of the end of the third quarter, Cái Lân Port's accumulated loss exceeded VNĐ404 billion.

Similarly, Phước An Port Investment and Exploitation Petroleum Joint Stock Company (PAP) also reported a loss in the third quarter. With no recorded revenue during this period, the company solely incurred business management costs, resulting in an after-tax loss of nearly VNĐ1.7 billion. In comparison, it incurred a loss of VNĐ4.6 billion during the same period last year.

In the first nine months of 2023, Phước An Port recorded a loss of nearly VNĐ5 billion, whereas it reported a loss of VNĐ6 billion in the corresponding period last year.

Despite a decrease in net revenue, certain businesses have managed to achieve profit growth by capitalising on revenue from other sources.

Cần Thơ Port Joint Stock Company (CCT) experienced a net revenue decline of over 4 per cent in the same period, amounting to VNĐ34 billion. Simultaneously, the cost price rose by nearly 9 per cent to over VNĐ28 billion, resulting in a 31 per cent decrease in gross profit to VNĐ6 billion. Net profit from business activities also declined by more than half in the same period, reaching VNĐ675 million.

However, with the inclusion of income from the liquidation of fixed assets and after deducting expenses, the company reported a profit after tax of VNĐ3.3 billion, nearly 2.5 times higher than the same period last year.

In the accumulated nine months, Cần Thơ Port's revenue reached VNĐ108 billion, reflecting a 14 per cent increase compared to the same period last year, and the profit after tax surged by 20 times to VNĐ4.5 billion.

Among the various reasons hindering positive profits in the shipping industry, a significant factor is the decline in import and export activities compared to the same period last year, despite a recovery taking place.

According to the General Department of Customs, export turnover in the third quarter of 2023 is estimated to reach US$94.6 billion, displaying a 10.3 per cent increase compared to the second quarter of 2023. However, it still represents a 1.2 per cent decline compared to the same period last year. Import turnover is estimated at $86 billion, which is a 4.5 per cent decrease compared to the same period last year but an 11 per cent increase compared to the second quarter of 2023.

Significantly, after four consecutive months of growth, exports exhibited signs of decline in September, dropping by 4.1 per cent compared to August.

Freight prices are currently rebounding, according to Yuanta Vietnam Securities Limited Company (YSVN).

Analysts also assert that the shipping, seaports and logistics sectors are poised to benefit from the recently upgraded comprehensive strategic partnership between Việt Nam and the US.

The US remains Việt Nam’s largest export market, with turnover to the US increasing by 13.6 per cent in 2022. In the first nine months of 2023, Việt Nam recorded a trade surplus of $60.7 billion with the US.

Mirae Asset Securities Joint Stock Company (Việt Nam) predicts that Việt Nam’s seaport and logistics industry will be among the sectors that benefit the most from the improved Việt Nam - US relations, considering the US as the largest consumer of Vietnamese goods.

Ministry proposes continued tax and fee cuts to promote economic growth

The Ministry of Finance (MoF) has continued to submit proposals to competent authorities and implement policies within its authority to grant exemptions, reductions and extensions on taxes, fees and charges.

This reflects the ministry's dedication to supporting businesses and individuals, aiding them in overcoming challenges and fostering economic recovery and development.

In line with its authority, MoF has released a circular that governs the reduction of 35 fees and charges across sectors such as securities, healthcare, citizen identification, and the assessment 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, and 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 the 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 for next year to reduce taxes, fees and charges, 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. 

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