Vietnam’s coffee export turnover is forecast to hit 4 billion USD in 2022, according the Ministry of Agriculture and Rural Development (MARD).

The country raked in 3.1 billion USD from exporting coffee in the first three quarters of 2022, surging by 37.6% compared to the same period last year. 

The ministry attributed the growth to the nearly-22-percent increase in export price. 

The EU remained the largest importer of Vietnamese coffee in the first eight months, with nearly 490,700 tonnes worth 1.1 billion USD, accounting for 39% of the total export volume, and representing year-on-year increases of 27% and over 54% in volume and value, respectively. 

According to the Institute of Policy and Strategy for Agriculture and Rural Development, coffee exports to the European Union countries such as Belgium, Spain, the Netherlands, France, and Portugal increased sharply compared to the same period last year.  

In addition, the export to other markets also recorded impressive growth, including India (up 116%), the UK (57.9%) and Russia (17.3%). Notably, the export volume to Mexico spiked 52 times year-on-year.

The UK is the fifth biggest importer of Vietnamese coffee in Europe, reaching 34.86 million tonnes worth 70.68 million USD in the January-August period, up 57.9% in volume and 84.2% in value year-on-year. 

Shrimp, tra fish exports soar in Jan-Oct

Vietnam’s shrimp and tra fish exports had soared in the year to October, accounting for nearly two-thirds of the country’s seafood exports, the Vietnam Association of Seafood Exporters and Producers (VASEP) reported.

From January to October, Vietnam earned US$9.5 billion from seafood exports, up 34% year-on-year. Of the amount, shrimp exports reached US$3.8 billion, increasing 19% over the same period last year, while tra fish grew 80%, bringing in US$2.2 billion. 

This year, shrimp exports are expected to top US$4.4 billion, an increase of 14% versus 2021, with whiteleg shrimps remaining the chief exports, accounting for 75% of the total, and black tiger shrimps making up 13%.

Meanwhile, tra fish is estimated at US$2.5 billion for the whole year, shooting up to 58% over 2021. The surge resulted from the Ukraine-Russia military conflict, pushing whitefish exports such as Vietnamese tra fish up 40-200%, exporters said.

Tuna exports in the year to October had expanded 50% year-on-year to US$890 million. Squid and octopus exports were up 32% to US$625 million.

With such positive results, VASEP forecast the nation’s seafood exports would surpass US$10 million, a 20-year high.

By the end of 2022, seafood will account for some 3% of the country’s all exports and contribute 12% of total export revenue. This shows that fisheries play a leading role in Vietnam’s GDP growth, especially in agro-forestry-fishery exports, said Le Hang, deputy director of VASEP.

Currently, Vietnam is the third largest seafood exporter, after China and Norway. Vietnamese seafood is forecast to make up over 7% of the world’s seafood market this year.

TSG fined VND310m over illegal share issues

The State Securities Commission of Vietnam (SSC) has imposed an administrative fine of VND310 million on TSG Investment and Construction JSC for repeatedly offering and issuing shares illegally to raise its charter capital.

The SSC on October 27 issued Decision 797 on tackling administrative violations in the securities sector. Under the decision, TSG was fined VND60 million for missing deadlines to submit a number of its financial reports, corporate governance reports, resolutions made in its annual general meetings in the last three years, news site congthuong.vn reported.

The Hanoi-based company was also fined VND250 million for offering and issuing shares via private placement without registering the offering or issues with the SSC. TSG was found to have illegally issued and offered shares via private placement last year to hike its charter capital from VND120 billion to VND300 billion.

Hence, TSG was asked to seek remedies for its wrongdoings by recalling the offered, issued shares and refunding investors their money plus interest.

Besides, the SSC issued Decision 798 asking TSG to take remedial measures for its illegal share issues for shareholders.

TSG launched two share issues for its shareholders. One of them was made in 2017 to increase its capital from VND12 billion to VND100 billion. The other was carried out in 2019 to raise capital from VND100 billion to VND200 billion. The firm did not register both of the issues to the SSC.

Based on the prevailing regulations, TSG has to recall the illegally-issued shares and refund its shareholders their money along with interest.

Viet Nam’s strong economic recovery in 2022 lays foundation for growth in 2023

The Vietnamese economy is recovering swiftly in the final months of 2022, with GDP growth for the entire year forecast to reach 8 percent, laying a solid foundation for a growth rate of 6.5 percent in 2023.

According to Deputy Minister of Planning and Investment Tran Quoc Phuong, the target of 6.5 percent GDP growth for next year is based on the assessment that the Vietnamese economy is maintaining its recovery momentum and has a low risk of external shocks.

The growth drivers come from various factors such as domestic consumption, public investment, exports, and especially the continued strong recovery of the services sector.

On the basis of maintaining macroeconomic stability as the top priority, the Government proposed an inflation target of 4.5 percent for 2023.

However, there are some grey areas in the bright economic picture of 2022, as seen in the rate of productivity growth and disbursement. Specifically, labor productivity was the only target Viet Nam failed to meet in 2022, while public investment bottlenecked to socio-economic development.

According to economic experts, Viet Nam's productivity has improved but remains low compared to many countries in the region and risks falling behind.

To shorten the gap with developed countries in the region and the world, enterprises must innovate incessantly, employ advanced technology, and have an appropriate policy for the effective use of labor and capital.

Concerning public investment, the Ministry of Finance's updated data shows that disbursement in the first nine months of the year is estimated to have reached VND253.148 trillion (nearly US$10.2 billion).

This figure is equivalent to 46.7 percent of the target assigned by the Government and slightly lower than the 47.38 percent recorded during the same period last year.

The Ministry of Planning and Investment has compiled a list of 25 obstacles related to public investment and proposed eight groups of solutions to be implemented to accelerate public investment disbursement.

These include making thorough preparations for projects, enhancing the capacity of contractors and fine-tuning the laws on public investment activities.

Local airlines to operate 33,700 flights during Tet holiday

Vietnamese carriers are planning to offer almost 33,700 flights before, during and after the upcoming Lunar New Year holiday, or Tet, to satisfy the strong travel demand.

According to the Civil Aviation Authority of Vietnam, the local airlines have already arranged 25,613 flights and will add an extra 8,079 between January 6 and February 5, 2023 (between the 15th day of the 12th lunar month and the 15th day of the 1st lunar month).

They will raise the number of daily flights during the above period from 826 to 1,087, up to 260 flights per day. The number of seats will increase by 1.6 million, from 5.1 million to 6.7 million.

The carriers will mostly increase the flight frequency on the busy domestic routes linking HCMC, Hanoi with Danang, Dong Hoi, Vinh and Thanh Hoa and on international routes between Vietnam and Southeast Asia, Northeast Asia and Australia.

Since mid-August this year, three carriers under the Vietnam Airlines Group, namely Vietnam Airlines, Pacific Airlines and VASCO, have offered millions of air tickets for international and domestic flights on the occasion of Tet.

The total number of international flights operated by Vietnam Airlines during the upcoming holiday has almost doubled, as many countries and territories have eased travel restrictions.

As for Vietravel Airlines, another local carrier, on October 4, it started offering 70,000 tickets for the Tet holiday. As of October 20, the occupancy rate of flights during the period had reached 75%, said a Vietravel Airlines representative.

New opportunities for banana exports to China

The Protocol recently signed by the Vietnamese Ministry of Agriculture and Rural Development (MARD) and the General Administration of Customs China (GACC) will bring opportunities and benefits to Vietnamese banana growers and exporters, said MARD Minister Le Minh Hoan.

Accordingly, the Protocol on plant quarantine for Vietnamese fresh bananas exported to China is one of the 13 agreements inked by the Vietnamese and Chinese ministries, agencies and localities during Party General Secretary Nguyen Phu Trong’s visit to China from October 30 to November 1.

Under the document, all banana farming areas and packaging facilities for export to China must be approved by both the MARD and the GACC. Banana farms must follow Good Agricultural Practices (GAP) standards while packaging facilities are required to build a origin tracing system to ensure food safety standards before export to China.

Vietnamese fresh bananas will be exported via all Chinese border gates approved by the GACC, Hoan said.

As of 2019, Vietnam was home to 129,550ha of bananas, nearly 35,300ha of which was in the Mekong Delta with an output of over 478,800 tonnes.

Over 430,000 tonnes of Vietnamese bananas under quarantine were shipped to China in 2020. The volume increased to 574,000 tonnes in 2021 and 591,000 tonnes in the first nine months of this year.

Vietnamese, German coffee firms advised to fully tap EVFTA

A seminar linking Vietnamese coffee exporters and German importers, recently held in Hamburg city, has been a success.

As part of the national trade promotion programme 2022, the event was co-hosted by the Trade Office of the Vietnamese Embassy in Germany, the Vietnam Coffee Cocoa Association (VCCA), the German Coffee Association (DKV) and Neumann Kaffee Group from October 29 to November 1.

Speaking at the event, Vietnamese Commercial Counsellor Bui Vuong Anh suggested firms make the most of advantages from the Vietnam-Germany Joint Committee on Economic Cooperation and the EU-Vietnam Free Trade Agreement (EVFTA) to boost coffee export to Germany and the EU.

CEO of the DKV Holger Preibisch said Germany imported 1.1 million tonnes of green coffee beans in 2021 and Vietnam is the second biggest coffee exporter to Germany, behind Brazil with a 18.63% market share.

Each German consumes 169 litres of coffee each year, higher than beer with 90 litres, he added.

On the occasion, Nguyen Thi Thu Thuy from VCCA invited German firms to the Vietnam Coffee Day 2022 that is to be held in Hanoi from December 9-11 to connect with Vietnamese partners.

Office to persuade EU to ease EO residual control on instant noodles

The Ministry of Industry and Trade (MoIT) has asked the Vietnam Sanitary and Phytosanitary Notification Authority and Enquiry Point (Vietnam SPS Office) to give opinions to tackle difficulties caused by Vietnamese instant noodles subject to ethylene oxide (EO) residual control by the EU.

The MoIT made the request in a document recently sent to the office to prepare for the 84th meeting of the WTO’s SPS Committee.

In February 2022, the EU listed instant noodles from Vietnam as a product subject the regulations on EO residual control.

Since then, the granting of certificates to each batch of export instant noodles has been causing a substantial burden in terms of administrative procedures and commercial expenses on Vietnam, the MoIT said.

Therefore, it asked the Vietnam SPS Office, which is under the Ministry of Agriculture and Rural Development, to discuss with relevant agencies and express concerns about differences in the application of rules on EO residual control for food in different countries and territories.

The office should also request the EU provide statistics and assessment about the control of EO residues in instant noodles from Vietnam since February 2022; clarify the basis for applying, maintaining and reducing EO check measures and the requirement for EO residue certificates; and build a plan to gradually remove these measures, according to the MoIT.

Int’l exhibition on industrial products, technology opens in HCM City

The International Exhibition on Industrial Machinery, Equipment, Technology and Products in Ho Chi Minh City (VINAMAC EXPO 2022) kicked off on November 2.

The four-day event features more than 300 booths of about 200 domestic and foreign enterprises, mainly showcasing advanced technologies, equipment and products in mechanical engineering – automation, rubber – plastic, and food processing.

According to Deputy Director of the department Nguyen Thi Kim Ngoc, VINAMAC EXPO 2022 offers a good chance for Vietnamese enterprises to popularise technological products, machine and equipment.

In the framework of the event, a workshop, an online business matching event will be held, providing venues for local and foreign investors and businesses to seek cooperation opportunities and set up partnerships.  

Nguyen Quang Huy, Deputy General Director of the Agency for Southern Affairs of the Ministry of Industry and Trade, said VINAMAC EXPO 2022 is an important trade promotion activity, contributing to speeding up the industrial production recovery after the COVID-19 pandemic is put under controll.

Vietnam-China international trade fair opens in Lang Son

The Vietnam – China international trade fair opened in the northern border province of Lang Son on November 2 – an annual event held alternatively between Lang Son (Vietnam) and Pingxiang (China).

Addressing the fair, Vietnamese Deputy Minister of Industry and Trade Dang Hoang An noted despite global complications in recent times Vietnam and China have always maintained and developed economic activities.

He expressed his belief the trade fair creates an opportunity for Vietnam to bring quality products to the Chinese market, and at the same time serves to promote trade ties between Vietnam and China in general, Lang Son and Guangxi in particular.

Hu Suojin, commercial counselor of the Chinese Embassy in Vietnam, said Lang Son plays an important role in deploying major economic cooperation activities between Vietnam and China.

The 2022 fair has attracted more than 100 businesses from both Vietnam and China to showcase their products across 260 pavilions. Economic contracts are expected to be signed at the event that is scheduled to last through to November 9.

Newly established firms up in 10 months
     
Vietnam saw over 13,000 new enterprises formed with a total registered capital of VND106.9 trillion in October, up 13.6 per cent in number of firms but down 21.4 per cent in capital over the previous month.

The country counted 125,800 new firms in the first ten months of this year with combined investments of over VND1.37 quadrillion and 835,000 labourers, according to the General Statistics Office (GSO).

The figures represented increases of 34 per cent in the number of firms, 6 per cent in capital and 18 per cent in workforce compared with the same period last year, the GSO said, adding that the average capital of new enterprises in the period was VND11 billion.

Meanwhile, 42,600 operating enterprises registered an increase of above VND2.79 quadrillion. Therefore, the total registered capital of the economy in the first ten months topped more than VND4.16 quadrillion, up 31 per cent year-on-year.

The GSO reported that the number of enterprises returning to business was 52,700 during the period, a yearly hike of 49 per cent.

On the opposite side, 66,400 enterprises temporarily ceased operation, up 37 per cent against the last year's same period. Another 40,300 were in the dissolution process, a year-on-year rise of 13.4 per cent and 12,200 completed dissolution procedures.

HCM City to reinvest collected port infrastructure fees in connectivity projects
     
Nearly VND1.5 trillion (US$60.3 million) has been collected via the automatic fee collecting system for the use of infrastructure and public services at ports in HCM City since April, according to the city’s Port Authority of Inland Waterway.

The authority said the system has collected an average of VND250 billion ($10 million) per month since it was officially launched in April.

The rates are from VND15,000 ($0.6) per tonne for liquid and bulk cargo to VND4.4 million ($177) for a 40-foot container.

The fees for international goods transported by inland waterways in and out of HCM City were cut by half from August 1.

The move aims to help businesses dealing with challenges, such as rising fuel prices, and promote the city’s economic recovery programme after the COVID-19 pandemic.

The reduction in fees also seeks to encourage businesses to increase use of waterways and reduce pressure on road transport.

About VND16 trillion ($643.2 million) is expected to be collected by 2025 for reinvesting in port infrastructure and improving connectivity, including new roads and upgrades to existing ones near ports, as well as improving waterways and inland ports.

Vietnamese firms told to tap Muslim market with halal products
     
With nearly two billion Muslims in the world and rising demand for halal products, there is potentially a huge market for Vietnamese companies to exploit, experts said.

Nguyen Tuan, deputy director of the HCM City Investment and Trade Promotion Centre (ITPC) told a conference on Tuesday that Vietnamese businesses should understand halal requirements to step up exports to one of the world’s fastest growing markets.

Demand for them is increasing among both Muslim and non-Muslim consumers, especially for consumer products, he said.

Large Muslim countries include the UAE, Malaysia, Indonesia, Brunei, Pakistan, and others in the Middle East.

The demand for halal products is also increasing in the domestic market as more and more foreign Muslims come to Vietnam to travel, work and study.

Halal refers to any action or behaviour that is permissible in Islam, and includes things like slaughtering animals for meat in a strictly specified manner.

But the Vietnamese share of the halal market remains modest though it does not have technical or tariff barriers like in the US or EU.

Experts said there are nearly two billion Muslims world-wide and the demand for Halal products is worth around $2.3 trillion annually.

Increasing disposable incomes in leading Islamic nations like the UAE, Malaysia, Indonesia, and Brunei is expected to expand the market, they said.

HCM City economic growth forecasts to 9.4 per cent for 2022
     
HCM City’s economy continued to recover this year, with its gross regional domestic product (GRDP) forecast to expand 9.4 per cent in 2022, surpassing its target of 6-6.5 per cent, according to the municipal People’s Committee.

The city’s GRDP grew 9.9 per cent in the first ten months of the year compared to the same period last year.

As of October 20, the city’s total public investment disbursement reached VND11 trillion (US$443 million) or 29 per cent of the year’s target.

The city will also make efforts to supply the economy with capital amid tightening monetary policy, he added.

The city’s retail sales of goods and services were estimated at VND899 trillion ($36.2 billion) in the first ten months of the year, up 29.9 year-on-year, according to the city’s Department of Planning and Investment.

Hanoi, Belgium’s Wallonia develop 3B bull breed

A working delegation led by Vice Chairman of the Hanoi People’s Committee Nguyen Manh Quyen visited and held a working session with Belgimex, supplier of Blanc Blue Belgium (3B) bulls, known as “double-muscling” breed, in Wallonia region of Belgium on November 2.

On the occasion, the Hanoi Livestock Breeding JSC (HLBC) and Belgimex signed a deal to continue completing the process of transferring 3B breed and bovine semen to Vietnam to continue

BKAV unveils core module for entry-level IoT devices

BHS, the hardware division of Vietnamese technology company BKAV, has released a system on module (SOM) designed to develop entry-level artificial Internet of Things (AIoT) devices to popularise the application of artificial intelligence.

The module, known as SOM-G350, is expected to help popularise the application of artificial intelligence (AI) and realise the goal of creating billions of AIoT devices to help enhance productivity and the quality of life.

SOM-G350 is jointly developed with MediaTek and Smart-Core (SMC), based on the MediaTek Genio 350 chipset.

The module can be applied in a wide variety of fields, such as car infotainment systems, automobile monitoring systems, smart kiosks, public access points, AI cameras in smart cities, and so on.

Int’l tourist arrivals in Vietnam surge in Jan-Oct

Over 2.35 million international tourists traveled to Vietnam between January and October, a year-on-year surge of 18.8-fold, according to statistics from the General Statistics Office of Vietnam.

Of the total international arrivals during the 10-month period, air passengers made up 88.8%, or 2.09 million, while foreign arrivals by road totaled 262,000 and the number of sea visitors was 745.

During the period, South Korea was Vietnam’s biggest source market, with 130,185 arrivals, followed by the United States with 41,570 tourists.

The statistics also showed that revenue from lodging and catering services between January and October was estimated at VND467.1 trillion, up 51.8% year-on-year. Can Tho and HCMC also saw their revenue surge by over 110% during the period.

Besides, tourism revenue recorded a year-on-year increase of 3.9-fold at VND19.7 trillion.

Banks report handsome profits in Q3

Many local banks have released their business results, which indicate huge third-quarter profits.

Asia Commercial Bank (ACB) recorded a pretax profit of nearly VND4.5 trillion between July and September, surging by 71% year-on-year.

VPBank put its pretax profit at over VND4.5 trillion in quarter three, up 67% against the year-ago period.

Similarly, TPBank’s pretax profit was VND2.1 trillion in the third quarter, soaring by 54% year-on-year, while the pretax profit of LienVietPostBank picked up 61% year-on-year at VND1.2 trillion.

Vietnam International Bank (VIB) estimated its July-September pretax profit at VND2.8 trillion, double the year-ago figure.

The pretax profits of SeABank and Techcombank were estimated at over VND4 trillion, up 59% year-on-year, and VND6.7 trillion, up 21%, respectively.

Other banks, such as Vietnam Maritime Commercial Joint Stock Bank, VietBank and PGBank, earned more than last year as well.

The good performance of banks was attributed to their business expansion and an upsurge in outstanding loans.

At ACB and TPBank, their outstanding loans in the third quarter totaled over VND402 trillion and VND156 trillion, respectively, up 11% against early 2022.

Techcombank saw its outstanding loans growing 18% against the beginning of the year at over VND410 trillion.

In addition, soaring non-interest income and effective bad debt settlement plans spurred banks’ profits before tax in the third quarter.

Furthermore, banks no longer face the pressure of slashing interest rates and sharing their earnings to support Covid-hit customers. In 2021, many banks spent thousands of billions of Vietnamese dong reducing lending rates and exempting bank service fees.

FPT supports Danish firm to build first smart jewelry manufacturing factory in Hanoi

Hanoi-based IT service provider FPT Software, a subsidiary of Hanoi-based FPT Corporation, will support Julie Sandlau, a Danish jewelry producer, in building its first smart jewelry manufacturing factory in the city's Hoa Lac high-tech park.

The strategic partnership signing ceremony took place on November 1, within the framework of the Vietnam-Denmark Business Summit Forum 2022, which was organized by the Embassy of Denmark in Vietnam, the Vietnam Government Office, and the Ministry of Foreign Affairs.

Through this alliance, FPT Software provides the foreign company with a complete roadmap to build their first Smart factory and transform the traditional jewelry manufacturing process with digital technologies like Robotic Process Automation and Artificial Intelligence (Al).

The newly established partnership also transforms the Danish company’s operations and work processes, from human resources and operational management to accounting. 

Hanoi has one new service center

A logistics center launched in Hanoi by DHL Express, the world’s international express service provider, will enable local businesses to access global markets through good services.

The Hanoi West Service Center, which costs an investment of approximately EUR2 million (US$1.98 million), is expected to contribute to Hanoi's logistics sector amid increasing investment inflows.

According to the General Statistics Office of Vietnam, Vietnam recorded double-digit cumulative export growth in the first nine months of 2022, with electronics and garments among the top export commodities.

From the latest DHL Trade Growth Atlas, Vietnam, among the other ASEAN countries, is also forecasted to lead the world in export growth over the next five years. The IMF also estimates that Vietnam will see an increase in trade volume.

The latest center is also the 100th facility in the Asia Pacific region (excluding China) to achieve TAPA "A" certification by the Transported Asset Protection Association.

North-South expressway project falls behind schedule due to compensation plan

The Ministry of Transport (MoT) has just reported that the progress of site clearance of the North-South expressway in the period of 2021-2025 through two provinces of Khanh Hoa and Phu Yen fell behind the schedule, affecting the progress of the entire project.

Specifically, all three component projects of Van Phong - Nha Trang, Quy Nhon - Chi Thanh and Chi Thanh - Van Phong have not yet made a plan for compensation and resettlement support. 

The main reason is that the People's Committees of Khanh Hoa and Phu Yen have not yet issued the compensation prices for recovered land areas and crops . 

Besides, another reason is that several recovered areas are not listed in the land use plan until 2030 and the land use plan in 2022; meanwhile, the Ministry of Transport requested to hand over 70 percent of the site for construction and install bidding packages before November 20 and hand over the entire remaining sites in the second quarter of 2023.

Ministry plans for one million social housing projects

Minister of Construction Nguyen Thanh Nghi has just submitted to the Government an investment project to build one million social houses for low-income people and workers in industrial parks and export processing zones in the 2021-2030 period. For the feasibility of this plan, many solutions are needed.

Ho Chi Minh City has just officially approved the plan to develop social housing in the city from 2021 through 2025 with the target of developing 2.5 million square meters of construction floor, equivalent to 35,000 apartments including worker accommodation and student dormitories.

According to the report of the Department of Construction, 12 social housing projects and worker accommodations in the southern largest city are under construction. Currently, one project Binh Trung Dong project in Thu Duc City with a scale of 260 apartments has been put into use. Hoang Quan Real Estate Service Trading Consulting Company invested in the project.

In addition, nine other social housing projects with a total of more than 6,000 apartments are also under construction and construction investment procedures.

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