The provincial Statistics Office assessed that in recent months, import and export activities in the province were still lower than the same period in previous years. They were higher than that of the first months of 2023 because businesses have adjusted production and marketing activities to seek more customers.

Meanwhile, the Government and the locality have synchronously deployed solutions to promote trade, remove difficulties, and support businesses.

Director of the provincial Statistics Office Tran Quoc Tuan said that the province’s economic bright spot is the increase in the export of key products such as wooden products, textiles, and footwear.

In the first months of 2023, due to lack of orders, businesses had to narrow production scale and cut workforce, especially in key industries.

However, in October alone, exports increased by nearly 3.5% compared to the previous month, of that, the exports of wooden products increased by more than 3%, textiles, garments, and footwear increased by 4%.

It is forecast that from now until the end of 2023, exports of textiles, garments, footwear and wooden furniture will continue to prosper due to increased year-end demand.

Although exports are flourishing, businesses in the province still face difficulties. Currently, the labour utilization index in Dong Nai is still low, the inventory index increases, especially items such as food processing, textiles, footwear and related products because orders are decreasing.

Quang Ninh province lures over 3.1 billion USD of FDI in 10 months

The northern province of Quang Ninh attracted over 3.1 billion USD to its industrial parks and economic zones in the first 10 months of this year, surpassing the FDI attraction target assigned by the provincial People's Committee by 158.57%.

According to Hoang Trung Kien, head of the Quang Ninh Economic Zone Authority, in the reviewed period, the province licenced 24 new projects in total.

In October alone, Quang Ninh granted an investment licence to Jinko Solar PV Vietnam photovoltaic cell technology project with total registered capital of over 34.65 trillion VND (1.5 billion USD), helping the province to surpass the 3 billion USD mark in FDI attraction, and outpace other localities like Hanoi, Hai Phong and Ho Chi Minh City.

Once operational, the project will generate revenue of over 100 million USD per year whilst simultaneously creating jobs for about 4,500 labourers with a monthly average salary of about 13 million VND per person.

Quang Ninh has drastically reformed administrative procedures in investment, land, construction, taxes, and customs, thus removing difficulties facing investors.

The locality has also quickly completed construction and land use plans, and urged investors to upgrade technical infrastructure at industrial and economic zones in order to lure quality FDI projects.

So far this year, the local authorities have welcomed over 100 delegations of foreign investors who came to explore investment opportunities, and seek to expand their investment in the locality, including big firms such as BP of the UK, JTA (Qatar), Jinko Solar and TCL of Hong Kong (China), Lite-On Technology, Tera and Neotek of Taiwan (China), and Mitsubishi, Yaskawa Electric of Japan.

Investment promotion programmes were held by the provincial Investment Promotion and Support Board in late August at Samsung Electronics Vietnam (the Republic of Korea), VSIP (Singapore), Unilever Vietnam (the UK); and GreatStar Industrial Vietnam Co., Ltd, and Deli Vietnam Co., Ltd of China.

The province has given priority to attracting projects using new and advanced technologies with modern management practices and high-added value, and those with ripple effects that connect to global production and supply chains.

Under the planning project approved by the Prime Minister for the 2021-2030 period, the province has 23 industrial parks (IP), the largest number among localities across the country. This is favourable conditions for the province to form a modern and specialised IP system.

Among the 23 planned IPs, seven have been built and hosted investment projects, namely Cai Lan, Viet Hung, Hai Yen, Dong Mai, Hai Ha Seaport IP, Song Khoai, Dam Nha Mac service IP. The remaining IPs are in the process of planning, approval, and selecting investors.

Quang Ninh aims to develop each IP according to different product chains and industries, gathering interconnected, supportive and dependent industries to create complete industrial products, especially a network of support industries with domestic enterprises participating in global production networks and value chains.

Kien Giang earns 1.2 billion USD from aquatic products export in 10 months

The southern province of Kien Giang estimated its export value of aquatic products at around 29.5 trillion VND (1.22 billion USD) in the first 10 months of this year, or 82.75% of the yearly plan, up 5.28% from the same period last year.

The provincial Statistics Office also reported that the total output of aquatic products from both farming and fishing exceeded 665,100 tonnes, achieving 79.19% of the plan, down 3.38% year on year.

Deputy Director of the provincial Department of Agriculture and Rural Development Le Huu Toan said the output from farming was 301,617 tonnes, up 15.81%.

However, total seafood catches dropped by over 15% year on year due to adverse weather conditions at sea, a decline in seafood resources and higher fuel and material costs. Many ship owners face issues such as insufficient working capital, labour shortage, and other reasons that force them to keep their ships grounded.

So far, the total area for aquaculture in the entire province has exceeded 291,000 ha, meeting the target and increasing by 18% annually.

The official said the province has strengthened the management of fishing vessels, with 100% operating vessels registered and licensed to fish. All local fishing vessels have also installed VMS (vessels monitoring system) equipment. 

Tien Giang also promoted communications activities and guidance to ship owners and captains to prevent violations of foreign waters, in implementing recommendations of the EU inspection teams to fight illegal, unreported and unregulated (IUU) fishing.

RoK’s SG group plans long-term investment in Vietnam

The SK Group, the second-largest conglomerate of the Republic of Korea (RoK), has confirmed it is discussing long-term business partnerships with the Vietnamese government and large local companies in a plan to make Vietnam its business hub in Southeast Asia.

According to Money Today newspaper, SK executives recently met with executives from local investment partners in Vietnam to discuss the new partnership. A senior leader of SK Group said that some modifications might be changed to its investment categories in Vietnam.

It considers Masan a key strategic partner, to whom it will continue to find ways to partner long-term, Money Today reported.

Since 2018 SK Group has invested around 2.5 billion USD in various sectors in Vietnam including retail, property development and healthcare. It has secured deals with Vietnam’s largest conglomerates Vingroup and Masan Group.

Masan Group is its biggest investment in Vietnam at 1.2 billion USD.

SK Group President Choi Tae Won has recently met with senior government leaders of Vietnam to discuss digital and green solutions for long-term partnerships. He affirmed that Vietnam was a key strategic partner.

The group also announced a 30 million USD investment in the National Innovation Center to support Vietnamese tech startups.

Vietjet to launch HCM City-Dien Bien air route next December

Vietjet will launch a direct route connecting Ho Chi Minh City and the northwestern province of Dien Bien from December 2, with three return flights on Tuesday, Thursday and Saturday every week.

Flights depart from Ho Chi Minh City at 7:10 and arrive in Dien Bien at 9:10, while the return flights depart from Dien Bien at 9:45, landing in Ho Chi Minh City at 12:00.

On the occasion of opening sales on the direct air route, Vietjet has offered millions of zero-VND tickets for its entire domestic and international flight network at the November 11 year-end promotional party. Promotional tickets are now available at www.vietjetair.com and Vietjet Air app.

By the end of the year, passengers will have chances to upgrade their experience with new routes in Vietnam and ones connecting Ho Chi Minh City with Perth, Adelaide (Australia), Tiruchirappalli (India), Shanghai (China), the routes connecting Hanoi with Hong Kong (China), Jakarta (Indonesia), Siem Reap (Cambodia) and other great destinations in Japan, the Republic of Korea, Taiwan (China), Singapore, Thailand, and so on.

The new-age carrier Vietjet has not only revolutionised the aviation industry in Vietnam but also been a pioneering airline across the region and around the world. With a focus on cost management ability, effective operations, and performance, applying the latest technology to all activities and leading the trend, Vietjet offers flying opportunities with cost-saving and flexible fares as well as diversified services to meet customers’ demands.

Vietjet is a fully-fledged member of International Air Transport Association (IATA) with the IATA Operational Safety Audit (IOSA) certificate. As Vietnam’s largest private carrier, the airline has been awarded the highest ranking for safety with 7 stars by the world’s only safety and product rating website airlineratings.com and listed as one of the world's 50 best airlines for healthy financing and operations by Airfinance Journal in many consecutive years. The airline has also been named as Best Low-Cost Carrier by renowned organizations such as Skytrax, CAPA, Airline Ratings, and many others.

Hanoi’s ten-month CPI increases by 1.51% y-o-y

Hanoi's consumer price index (CPI) in the first ten months of 2023 increased by 1.51% year on year, the municipal Statistics Department has reported.

According to the department, nine of the 11 groups of goods and services saw price hikes in the January-October period, including beverage and tobacco, up 3.45%; restaurant and catering services 3.23%; apparel, headwear and footwear 1.68%; culture, entertainment and tourism 1.55%; housing, electricity, water, and construction materials 1.37%; equipment and home appliances 0.94%; education 0.37%; medicine and health services 0.34%; and other goods and services 4.25%.

In the period, prices declined in two categories – transportation down 2.38%; and postal and telecommunications services down 0.62%.

In October alone, the city's CPI rose by 0.09% from the previous month and surged by 4.16% as compared to the figure in the same period last year.

Seven out of the 11 groups of goods and services witnessed price increases from the previous month, including the categories of housing, electricity, water, and construction materials; restaurant and catering services; culture, entertainment and tourism;  apparel, headwear and footwear; beverage and tobacco; medicine and health services; and other goods and services.

Hanoi has introduced numerous programmes to bolster tourism development and stimulate consumption in order to contribute to the capital city’s socio-economic development.

HCM City: Industrial production sees high consumption index over 10 months

Ho Chi Minh City’s industrial production has been trending upward between January and October, with high consumption indexes on some of its major products, and in some industrial sectors.

The municipal Department of Industry and Trade report indicates that a number of key industrial product groups experienced significant year-on-year growth in the period. They include plastic packaging materials with a 36.1% increase, mineral or chemical fertilizers 26.2%, condensed milk/cream with or without sugar 12.7%, and TVs 10.8%, among many others.

The ten-month industrial production index of the city's four key industrial sectors grew by 6.3% year on year.

In October alone, the consumption index of the local processing and manufacturing industry climbed by 2.3% compared to the previous month and by 19.9% against the same period last year, signaling its recovery in the remaining months of the year.

Meanwhile, the industrial labour index inched up 0.5% month-on-month and declined 3.2% year-on-year.

Experts have assessed that the southern economic hub possesses strengths in terms of good logistics infrastructure and regional and international transport connectivity. Additionally, it continues to take the lead regarding geographical advantages, local brand, and high-quality workforce.

However, the industrial business community in the city and their peers nationwide are facing challenges related to the increasing cost of production. Currently, labor costs, space rental costs, and land leasing fees at export-processing zones and industrial parks are issues that require direct solutions from the municipal authorities.

15th Vietnam - China int’l trade, tourism fair to open in late November

The 15th Vietnam - China International Trade and Tourism Fair is scheduled to open in Mong Cai city, the northeastern province of Quang Ninh, on November 30, according to the Mong Cai People’s Committee.

The event will include an exhibition of the two countries’ socioeconomic achievements, a display and introduction of Vietnamese and Chinese goods, a forum on cross-border tourism via the international border gate pair of Mong Cai and Dongxing (China), and a forum on the export of agro-forestry-fisheries products to China.

Tourism and business cooperation deals between the countries' enterprises are expected to be signed on this occasion.

In addition, cultural and sport activities will also be held, including singing on the border river, a cultural exchange between the youth of Mong Cai and Dongxing, an international golf tourism tournament, and a friendship running race, according to the municipal administration.

Over the past years, Quang Ninh has been working to gradually establish itself as a “gateway” for cross-border trade between Vietnam and China. It shares more than 118km of land border, and 191km of sea border with China.

Agro-forestry-fisheries sector enjoys trade surplus of 9.3 billion USD

Vietnam ran a surplus of 9.3 billion USD in agro-forestry-fishery trade during January – October, up 26.2% from the same time last year, according to the Ministry of Agriculture and Rural Development (MARD).

During the period, exports of the products totalled 43.08 billion USD, falling 4.2% year-on-year due to a decrease in the export value of key products such as seafood (7.45 billion USD, down 20.5%) and forestry (11.65 billion USD, down 19.3%).

Agricultural exports accounted nearly half of the total, at 21.94 billion USD, rising 17%. Key earners were fruits and vegetables (4.91 billion USD), rice (3.97 billion USD), and cashew nuts (2.92 billion USD).

Over the past ten months, agro-forestry-fishery exports to Asian and African markets increased 5.7% and 21.6%, while those to American, European and Oceanian ones went down 20.6%, 11.8% and 17.2%, respectively.

China, the US and Japan remained the top three buyers of the Vietnamese products, with export value to China accounting for 22.8%, the US 20.6% and Japan 7.5%.

The MARD said it will direct competent authorities to guide localities to adjust their production plans and bolster exports, and at the same time accelerate negotiations to remove technical barriers to expand markets for agro-forestry-fisher products.

Besides, it will work to support brand and geographical indication protection for Vietnamese products in foreign countries.

Vietnam aims to promote agricultural exports to Africa

Africa has remained a silver lining in trade between Vietnam and the world, Deputy Minister of Foreign Affairs Ha Kim Ngoc affirmed at a seminar held by the foreign ministry on November 1.

The official elaborated that in the first nine months of this year, trade between the two sides went up 4.7% to 4.35 billion USD, while that between Vietnam and the world dropped nearly 11% year-on-year.

Vietnam has many favourable conditions to promote the export of agricultural products to Africa, he said, stressing Vietnamese Party and State high-ranking leaders are also interested in enhancing economic cooperation with the region.

With a population of some 1 billion, Sub-Sahara Africa would be a promising market for Vietnamese agricultural exports, he said, suggesting Vietnamese managers and firms to take appropriate measures to promote products in the market effectively, apart from raising competitiveness in terms price and quality.

Participants pointed to obstacles to the promotion of Vietnamese farm produce in Sub-Sahara Africa, including the lack of information about the market, partners and legal regulations, high transportation costs, complicated customs procedures, and technical barriers.

They suggested sending trade promotion delegations to the region, and discussed the establishment of showrooms for agricultural products at Vietnamese representative offices there.

Vietnam’s agricultural export to Africa exceeded 950 million USD last year, accounting for 26.5% of the country’s total export revenue to the region, driven by rice and coffee.  

Following the seminar, the ministry is scheduled to organise another on promoting Vietnamese agricultural products in the Middle East and North Africa later this month.

New record set in fruit, vegetable exports

Vietnam’s export revenue of vegetables and rice in the first 10 months of this year surpassed the figure reported in the whole 2022 by 2 billion USD, reaching a record amount of 8.9 billion USD.

In the January-October period, vegetable exports hit 4.92 billion USD, up 79% year on year, while that of rice reached 4 billion USD, a rise of 35%.

The result considerably contributed to the export revenue of 40 billion USD of the agricultural sector and 291 billion USD of the whole economy in the first 10 months of 2023.

Affected by the Chinese market, Vietnam suffered a drop of 5.1% in vegetable exports in 2022. However, since the beginning of this year, Vietnam has received a large number of orders, especially for high-value products of durians, mangos, and jackfruits.

According to the Vietnam Fruit and Vegetable Association (Vinafruit), the re-opening of the Chinese market as well as protocols signed with the largest market of Vietnamese fruits and vegetables were among motivations for growth of fruit and vegetable exports.

Meanwhile, rice sector also reaped good results in exports in the period thanks to increase in prices.

According to Nguyen Van Don, Director of the Viet Hung JSC in the Mekong Delta province of Tien Giang, India’s ban and restriction of rice exporting has created a chance for other exporters like Vietnam, the third largest rice supplier in the world.

With an expected output of over 43 million tonnes this year, the Ministry of Agriculture and Rural Development estimates that after ensuring supply for domestic demand, Vietnam can ship abroad 7.5-8 million tonnes of rice in 2023. The ministry held that in the last two months of this year, Vietnam is likely to earn additional 850-900 million USD from rice exports, raising the total figure for this year to 4.7-4.8 billion USD.

Experts held that in the rest of the year when the festive season comes, demands for fruits and vegetables will continue to surge, especially in the Chinese market.

Vinafruit General Secretary Dang Phuc Nguyen said that in the last two months of 2023, Vietnam can earn about 1.2 billion USD, or at least 600 million USD each month from fruit and vegetable exports. In a higher scenario, the figure may reach 1.5 billion USD thanks to increase in orders from the Chinese market, especially for Vietnam’s strong products such as dragon fruits, bananas, jackfruits, passion fruits and durians, he predicted.

Vietnam sees ebullient growth in digital banking, payment channel: UOB report

There is an increasing preference for digital banking and new payment modes such as mobile banking apps, e-wallets, QR code-based payments, e-commerce payment platforms and mobile wallet debit or credit cards among Vietnamese consumers, the United Overseas Bank (UOB) said in its report “ASEAN Consumer Sentiment Study" (ACSS) which was launched on November 1.

Paul Kim, Head of Personal Financial Services at the bank, stressed that as the Vietnamese consumers become more digitally proficient, there is a surge in the use of mobile apps; however, when it comes to complicated transactions such as high-value transactions, restructuring of bank loans and insurance purchase, they prefer offline channels.

Every four among five consumers use e-wallet at least once a week and introduce the wallet to others. Momo was the most used e-wallet by Vietnamese, followed by ZaloPay and VNPay.

 There is an increasing preference for digital banking and new payment modes such as mobile banking apps, e-wallets and QR code-based payments among Vietnamese consumers. (Photo: VNA)
Regarding the sentiment of the Vietnamese consumers, Paul Kim said strong economic growth has made them feel more upbeat about the current and future economic situation in the country.

Although rising inflation and increased expenses have fueled fears of an economic downturn across ASEAN, consumers in the region have given a warm welcome for a new era of digitalisation.

The UOB expert said Vietnamese consumers are more upbeat about the financial future than those in other countries. Some 76% of the respondents expect to be better off in June next year, while the figures in Indonesia and Thailand are 74% and 68%.

The report also said that eight out of 10 Vietnamese consumers are concerned about their finances. They are most worried about not being able to save, afford essential items, maintain their current lifestyle, and take care of their parents’ financial and healthcare needs. Therefore, they are more cautious about their investment.

Meanwhile, II Dong Kwon, the Vietnam lead at Boston Consulting Group, highlighted that with the boom of the Internet, Vietnam has posted a dramatic increase in online shopping and e-commerce which experience an annual growth of 41% in the past three years.

Online payment has surged as a result, he said, adding the trend will maintain and grow stronger in the time ahead.

Meat exports rebound in third quarter

Vietnam exported 5,780 tonnes of meat and meat products worth US$28.37 million in the third quarter of the year, up 27.4% in volume and 19% in value compared to the second quarter, according to the Ministry of Industry and Trade.      

These figures represent a rise of 45% in volume and 33.9% in value compared to the same period from last year.
  
Vietnamese meat and meat products are mainly exported to Asian countries, with exports to the Hong Kong (China) market accounting for 40.48% in volume and 49.88% in value of the country's total exports.

By the end of the third quarter of the year the nation had exported 16,160 tonnes of meat and meat products worth US$77.85 million, representing a rise of 28.4% in volume and an increase of 39.3% in value compared to the same period from 2022.

The main types of meat and meat exports such as fresh, chilled, or frozen pork are exported to the Hong Kong (China) market, while other meat and edible meat by-products such as fresh, chilled, or frozen meat are shipped mainly to Belgium, the United States, France, and Canada.

Recently, the US Department of Commerce forecast that the nation’s pork output ahead in 2024 will increase by 5% to 3.7 million tonnes compared to this year thanks to the recovery of domestic demand and a rebound in terms of economic activities.

Ten-month cement and clinker exports rake in US$1.125 billion

Vietnam’s cement and clinker exports grossed US$1.125 billion from exporting more than 26 million tonnes during the past 10 months of the year, down 2.4% in value against the same period from last year, according to the General Statistics Office.

October alone witnessed the country export 2.6 million tonnes of cement and clinker exports worth US$103 million, up 22.8% in volume and 14.8% in value compared to October, 2022.
  
The Philippines continues to be the nation’s largest export market for the product with more than 6.17 million tonnes exported worth over US$277 million in nine months, up 3% in volume but a slight decrease of 1.4% on-year.

The average export price reached US$45 per tonne, down US$1 per tonne compared to the same period from last year.

Bangladesh ranked second with turnover reaching over US$167 million, up 80% in volume and 67% in value on-year. The average export price decreased slightly by US$3 per tonne to reach US$37 per tonne against the same period last year.

Furthermore, cement and clinker exports to Taiwan (China) reached more than 1,292 million tonnes with an export value exceeding US$50.5 million, up 4.5% in volume but down 2.5% in value on-year with the export price reaching US$42 per tonne.

Khanh Hoa to welcome more direct flights from Kazakhstan

Several companies have announced plans to increase direct flights connecting the major Kazakh cities of Almaty and Astana with Khanh Hoa province in southcentral Vietnam as part of efforts to meet the travel demand needs of tourists for the winter vacation season. 
 
This comes amid Amega Co. Ltd. on November 2 resuming two flights per week on the Cam Ranh-Almaty air route.

The flights will run on every Monday and Thursday and will be conducted by Scat Airlines of Kazakhstan, carrying around 200 passengers each.

Furthermore, Anex Vietnam Travel and Trading Co., Ltd. plans to increase flights from Kazakhstan to Khanh Hoa starting from late December.

As planned, the company will operate five flights per week between Almaty and Astana, two large cities in Kazakhstan, and Cam Ranh city of Khanh Hoa province, transporting some 377 passengers via an Airbus A-330.

Kazakhstan represents one of the major international tourist markets of the Vietnamese locality.

According to a report from Khanh Hoa’s Department of Tourism, as of September the locality has welcomed more than 130,000 Kazakh visitors.

Moreover, Amega Co. Ltd. and Anex Vietnam Travel and Trading Co., Ltd. have sought measures to attract more tourists from other markets such as Russia, Kyrgyzstan, and Tajikistan via flights from Kazakhstan.

During the January to October period, Khanh Hoa province welcomed 1.67 million foreign arrivals, a figure 8.9 times higher than the same period last year. Indeed, its tourism revenue reached more than VND29 trillion, a year-on-year rise of 152.7%.

Two major wood expos to get underway in Ho Chi Minh City

The 15th Vietnam International Furniture and Home Accessories Fair (VIFA EXPO 2024) and the Vietnam ASEAN International Furniture and Home Accessories Fair (VIFA ASEAN 2024) are scheduled to take place in Ho Chi Minh City in February and August next year, respectively.

This information was unveiled on November 1 at a press conference in Ho Chi Minh City, which was co-hosted by the Vietnam Chamber of Commerce and Industry (VCCI) and the Lien Minh Wooden Handicraft Joint Stock Company.

VIFA EXPO 2024, is due to take place from February 26 to February 29, 2024, and is expected to attract more than 600 local and foreign firms from around the globe.

On display across over 2,000 booths will be an array of furniture, fine arts, decorative products, handicrafts, machinery, and accessories from many suppliers and manufacturers.

Furthermore, the second VIFA ASEAN Fair will also be held at the Saigon Exhibition and Convention Center (SECC) from August 27-30, 2024.

The event is anticipated to draw over 400 businesses who will come together to showcase their products at over 1,200 pavilions, especially the participation of two “giants” in the global e-commerce field, including Alibaba and Amazon with the aim of supporting businesses in seizing opportunities to integrate into the international market through cross-border e-commerce exports.

According to details given by organisers, these expos will contribute to further promoting the export of Vietnamese wood products and handicrafts to developed countries, while simultaneously helping businesses find new customers, expand markets, and learn practical experiences from manufacturers and traders around the world.

Agriculture remains only bright spot in Vietnamese exports: HSBC

Despite accounting for only a small share of overall exports, Vietnam’s agriculture exports have boomed with both rice and durians outperforming other items this year, according to HSBC’s latest report “Vietnam at a glance”.

According to details given in the report themed “Agriculture exports holding the fort”, Vietnam has long been praised as a poster child in terms of its development as it moves away from an agriculture-based economy to become a rising star as part of the global manufacturing supply chain.

However, with 90% of its exports being negatively affected by the downturn in trade this year, the remaining 10% of agriculture exports have surprisingly defied gravity.

Most notably, the country enjoys the benefits of being a traditional exporter as well as an emerging one. As the world’s third largest exporter of rice, Vietnamese rice exports have risen on the back of soaring demand from regional peers and the recent rally which has occurred in global rice prices.

Meanwhile, local durian farmers have enjoyed skyrocketing growth, representing an annual rise of 1,400% in the third quarter of the year for exports, with this primarily being due to Chinese consumers’ new preference for the fruits, along with the implementation of the Regional Comprehensive Economic Partnerships (RCEP).

Despite some nascent green shoots in the global trade cycle, the country has suffered from a 7% decline in exports since the beginning of the year. However, agriculture exports have emerged as the only bright spot, defying a trade downturn.

Unlike other sectors that recorded double-digit declines, agriculture exports have weathered the storm well, rising almost 20% on-year on a three-month moving average basis.

Given its abundant resources, the nation enjoys a diverse agricultural base, with seafood making up almost 40% of its agriculture export mix, followed by Robusta coffee at 14%, rice at 12%, and fruits and vegetables at 11%.

While China makes up an important buyer of Vietnamese rice and seafood products, it holds a dominant share of 65% in its fruits/vegetable products, with this being a key reason why the share has increased threefold over the past decade.

After the northern neighbour’s re-opening, Vietnamese tropical fruit exports have increased significantly, partly in response to the signing of the fruit protocols in 2022. Currently, 80% of the country’s dragon fruits and 90% of its lychees are being shipped to the Chinese market. In particular, Chinese consumers’ new preference for durians has benefitted durian exports in ASEAN significantly.

Vietnam has enjoyed a record high level of durian exports to China, up 1,400% on-year, as of the third quarter of the year, a factor which has ensured that this category of fruit now takes top spot in its overall fruit exports with a share of close to 40%.

However, the nation is facing increasing competition from regional peers, particularly from Thailand who make up 95% of China’s durian exports. While Thailand has long remained in a dominant position, it has encroached even further on Vietnam’s share in just five years

Moreover, the country is also facing competition from China’s home-grown durian market. In fact, competition is not limited to durians, with the Vietnamese agricultural sector also experiencing competition from China’s home-grown markets for items such as coconuts, dragon fruits, and mangoes.

According to think tanks, it is not only fruit exports that are booming. As the world’s third largest rice exporter, just after India at 40% and Thailand at 15%, Vietnam, with a share of 13%, has benefitted significantly from a recent rally in the global rice market.

Since July, the benchmark Thai rice export price saw a 40% rise on-year to reach a 15-year high, in part due to India’s export bans on certain rice products and weather disruptions. Since then, this has quickly translated into impressive annual growth of 50% in relation to Vietnam’s rice exports.

Currently, three ASEAN countries are among the top six buyers of Vietnamese rice, with the Philippines alone accounting for 45%, followed by Malaysia and Singapore. The Vietnamese authorities have assured their ASEAN counterparts that it is committed to ensuring a stable rice supply moving forward.

“Going forward, it will be key for Vietnam to take advantage of free trade agreements (FTA) and focus on matching its export products to international standards to further improve its market potential,” HSBC economists stressed. 

RoK’s SG group plans long-term investment in Vietnam

The SK Group, the second-largest conglomerate of the Republic of Korea (RoK), has confirmed it is discussing long-term business partnerships with the Vietnamese government and large local companies in a plan to make Vietnam its business hub in Southeast Asia.

According to Money Today newspaper, SK executives recently met with executives from local investment partners in Vietnam to discuss the new partnership. A senior leader of SK Group said that some modifications might be changed to its investment categories in Vietnam.

It considers Masan a key strategic partner, to whom it will continue to find ways to partner long-term, Money Today reported.

Since 2018 SK Group has invested around 2.5 billion USD in various sectors in Vietnam including retail, property development and healthcare. It has secured deals with Vietnam’s largest conglomerates Vingroup and Masan Group.

Masan Group is its biggest investment in Vietnam at 1.2 billion USD.

SK Group President Choi Tae Won has recently met with senior government leaders of Vietnam to discuss digital and green solutions for long-term partnerships. He affirmed that Vietnam was a key strategic partner.

The group also announced a 30 million USD investment in the National Innovation Center to support Vietnamese tech startups.

Conference looks to promote innovation in marketing technology

The development of the artificial intelligence (AI), global marketing technology (MarTech) landscape, innovation trends in MarTech and application in the public sector were discussed by domestic and foreign experts at the Vietnam MarTech Innovation 2023 which was held in Hanoi on November 1.

Themed “From Mindset to Mastery – The Rise & Shine of MarTech in Vietnam”, the event drew the participation of banks, investment funds, Vietnamese small and medium-sized enterprises, and innovation corporations from all over the world.

The global MarTech market was valued at 329 billion USD in 2022, and is expected to reach 1.7 trillion USD by 2032. In Vietnam, the sector has experienced a development process, and carved out significant results.

According to Meta country director for Vietnam Khoi Le, MarTech has accelerated the revolution of marketing and advertising activities in Vietnam, while opening up opportunities for enterprises to capitalise on MarTech through data analysis, and improve advertising performance.

Pointing his finger to several challenges that businesses are facing, including fierce competition, and compliance to cyberspace security regulations, Khoi said it is necessary to form a stable MarTech ecosystem in Vietnam to give further support to the companies.

An array of discussions were also presented at the conference, highlighting marketing strategies based on data, and ways to better business performance and maximise customers’ satisfaction.

The Vietnam MarTech network was launched in the framework of the conference to honour businesses with great contributions to the sector, and organise forums and exhibitions to promote exchanges between governmental organisations, producers, researchers and international organisations.

Besides, the MarTech exhibition was also arranged with 80 standout technologies, and prestigious brands of tech giants such as Meta, MarTech, Tribe, KPMG and Goldsun Media on display.

Hà Nội advised deploy solutions to become national and regional logistics hub

In order to become a key national and regional logistics hub, Hà Nội is advised to implement solutions applying science, technology and digital technology in the sector.

Nguyễn Hồng Sơn, director of the city’s Science and Technology Department, was quoted by the Hà Nội Mới (New Hà Nội) online newspaper as saying that Hà Nội needed to specify planning for logistics centres and infrastructure to strengthen logistics services in the city.

It had to strive to complete investment procedures, start construction and put into operation important logistics service infrastructure projects such as two Inland Container Depots in Cổ Bi Commune, Gia Lâm District and Đức Thượng Commune, Hoài Đức District; an international container port in Cổ Bi Commune, Gia Lâm District; a postal and delivery centre in Kim Hoa Commune, Mê Linh District; and a number of logistics centre projects in the city during the period of 2021-25, he said.

The city must enhance investment promotion in logistics service infrastructure projects; research and build logistics centres with appropriate scale on belt roads, connecting goods consolidation hubs, warehouses and distribution areas in production, agricultural and industrial zones, he said.

The city was told to concentrate on developing warehouse and specialised warehouse systems, building smart transportation systems transforming logistics infrastructure, and developing a digital platform connecting goods producers, shippers and customers, he said.

Besides, it had to promote logistics linking the Capital Region to other provinces and cities; support professional associations related to logistics services; and attract major global and domestic logistics service providers and enterprises to set up facilities in Hà Nội to make capital a logistics operating centre of the northern region, he said.

Đỗ Phan Anh, deputy head of Transport Management Office under the city’s Department of Transport said that the city was recommended to strengthen the application of modern science, technology and digital technology to overcome the shortcomings of urban traffic.

It was necessary to effectively deploy the Smart Traffic project, build a control mechanism for freight transport units and policies to encourage innovation and improve the quality of goods transport vehicles, and switch to environmentally-friendly transportation methods, he said.

It also needed to form a common trading floor for transport modes, promote the development of logistics services, and help connect freight transport modes to optimise two-way freight transport, he said.

The city holds the central position of the Northern Key Economic Region, with a synchronous transportation system including road, sea, river, aviation and rail networks.

However, the city’s logistics service development has not yet risen to fulfil its potential.

Deputy director of the city’s Department of Industry and Trade Nguyễn Thế Hiệp said Hà Nội currently had about 25,000 logistics businesses but they only met 25 per cent of domestic demand.

The system of warehouses and logistics centres in the city was still small, lacking connection and specialised goods storage (cool storage, cold storage, document warehouse), he said.

The number of Inland Container Depots was low and only connected by road, lacking other transport links such as railways or waterways, he said.

Plan 332/KH-UBND of the capital People's Committee on developing logistics services in the city this year sets the goal of "Developing logistics infrastructure synchronously with transport infrastructure, civilised and modern commercial infrastructure, making Hà Nội an important logistics hub of the country and the region".

However, Đỗ Phan Anh, deputy head of Transport Management Office, said the implementation of the plan encountered a number of difficulties and challenges, including incomplete infrastructure and traffic jams, as well as an increasing number of transportation vehicles.

All of these affect the quality of delivery services and customer experience, he said.

Bottlenecks in mechanisms, policies, infrastructure, human resources, technology, and especially problems of connection and linkage among logistics services in the city, had led to increasing logistics costs, affecting product prices, export, import and circulation of goods, he said. 

Go Global Franchise Fund inaugurated in Vietnam

Go Global Franchise Fund (GGFF), a private investment fund, was inaugurated in Vietnam on November 2 to support the operation of potential startup businesses.

Go Global Franchise Fund is committed to supporting and accompanying startup businesses to achieve success and spur development, according to Trustpay JSC that manages GGFF.
  
Besides capital investment, GGFF also provides consulting services, training and financial support for businesses. It is willing to cooperate with organizations and businesses that share the same goals and vision to help businesses develop strongly and sustainably.

Nguyen Tuan Quynh, co-founder and CEO of GGFF, notes this investment fund is dedicated to start-ups, small and medium-sized enterprises in the franchising and licensing industry in Vietnam and Southeast Asia.

GGFF prioritizes investing in businesses, especially innovative startups, within the ecosystem of Go Global Holdings, he says.

Experts say franchising is the most optimal investment method amid difficulties in the real estate market at present.

Vietnam is an attractive franchise market in Southeast Asia with many potential fields such as food and beverage, cosmetics retail, consumer goods, and fashion. Businesses still encounter difficulties in undertaking this form of business due to their limited knowledge of professional franchising.

Vietnamese businesses in Japan contribute to bilateral relations

The number of Vietnamese businesses in Japan has been on the rise, and many of them have been listed on the Tokyo Stock Exchange, Yoichiro Aoyagi, member of the Japanese House of Representatives, said at the Vietnam-Japan Business Day in Tokyo on November 2.

The event was part of exchange and cooperation activities between the two countries to celebrate the 50th founding anniversary of the diplomatic relations, and mark the 10-year development milestone of the Vietnam Business Association in Japan (VJBA) in Japan.

Yoichiro said the VJBA’s robust development is a vivid testament to the cooperation between Vietnam and Japan over the past decade.

Addressing the event, VJBA President Tong Kim Giao highlighted the association’s practical contributions to the Vietnam-Japan friendship and cooperation, saying that the event marked the sustainable development of the Vietnamese community in Japan, where the Vietnamese business community has continuously worked hard to achieve successes today.

Vietnamese Ambassador to Japan Pham Quang Hieu expressed his hope that the Vietnamese business/entrepreneur community abroad in general and in Japan in particular will make more contributions to the economic development of both countries, as well as the development of the Vietnamese community in Japan.

According to the diplomat, businesses and entrepreneurs are increasingly asserting their significance and role in Vietnam’s economic development. Vietnam is home to nearly 900,000 operating businesses, contributing more than 60% of the national GDP.

Peter Hong, Vice Chairman and Secretary-General of the Business Association of Overseas Vietnamese (BAOOV) stressed that the VJBA should play an even more significant role in enhancing connectivity among businesses and between enterprises and the community.

BAOOV is willing to work as a bridge between the Vietnamese business community in Japan with overseas Vietnamese entrepreneurs in other countries around the world, he said.

On the occasion, the VJBA signed a number of cooperation agreements with partners.

Established in September 2013, the VJBA is a non-profit organisation representing Vietnamese businesses in Japan and connecting Vietnamese and Japanese firms.

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