Container shipping firms are coming under great pressure from weak demand as maritime trade has begun to lose steam in recent months.

According to SSI Securities, exports to large trade partners, including the US and EU, continued to decline in September at Cai Mep Seaport and Lach Huyen Seaport. 

Experts forecast that maritime trade would not reach the figures seen in previous years even in peak seasons because of retailers' high inventory levels.

For container-shipping firms, the situation is expected to worsen in late months of the year due to falling freight rates, which have slipped by roughly 20% domestically since early 2022.

Analyst Pham Minh Quang, BIDV Securities, estimated that international freight rates would continue to drop by around 12% towards Q1/2023, caused by high inventory levels and high inflation. Domestic freight rates would follow suit with a drop of about 5% amid a slow recovery of vessel supply. 

Analyst Nguyen Quynh Hoa from MB Securities, shared this view, forecasting that maritime trade carried by containers would slow down in short term on grounds of weak demand.

However, the outlook for the industry would be optimistic in long term thanks to the improvement of global geopolitical conflicts, the easing of COVID-19 preventive measures, and the rebound of container supply.

Imports and exports are projected to pick up in the coming years as a result of the fully implementation of Free Trade Agreements and the lowering of trade barriers ensuing.

For the time being, many maritime transport firms are running at a profit.

Vietnam’s online exports grow strongly

Online exports have grown sharply this year, with the number of Vietnamese firms listing their products on Amazon skyrocketing by 80% over the same period last year. Online export is a form of cross-border trade using an e-commerce platform.

From 2020 to 2027, international e-commerce trade will grow over 28% per year, the news site vtv.vn reported, citing data from Zion Market Research.

From September last year to September 2022, Vietnamese firms sold 10 million products via the giant online retailer Amazon, with kitchenware, houseware, garments, health and personal care and home utility products being the best sellers. 

Amazon allowed Vietnamese online exporters to gain access to 21 markets worldwide, including Belgium, Sweden and the Middle East, with the U.S. being the biggest buyer, said Gijae Song, chief executive officer of Amazon Global Selling Vietnam.

Earlier, the e-Conomy SEA 2022 report by Google, Temasek and Bain & Company said the scale of Vietnam’s e-commerce this year reached US$14 billion, on par with Malaysia and the Philippines, after Indonesia and Thailand. However, the market will grow to US$32 billion by 2025, becoming the second-largest e-commerce market in South East Asia.

Rubber export to face difficulties toward year-end

Difficulties for Vietnam's rubber export remain in the fourth quarter as the US dollar has entered a bullish cycle as a haven against inflation, said the Ministry of Industry and Trade’s Department of Import-Export Management.

According to experts, latex prices tend to go down when the US dollar is appreciating. Moreover, prolonged heavy rains in the peak harvest time this year also impacted latex output.

The department quoted data from the General Departments of Customs as saying that Vietnam exported 609,170 tonnes of rubber worth US$930.86 million in the third quarter, up 6% in volume but down 1.8% in value on an annual basis due to falling prices.

China remained the biggest importer of Vietnamese rubber with 453,060 tonnes valued at US$669.14 million, up 10.4% in volume and 0.5% in value year-on-year. It accounted for 70.2% of Vietnam’s total rubber export value.

India came second with 42,040 tonnes worth US$69.64 million, marking an annual increase of 25.1% in volume and 18.3% in value.

OCOP must pay more attention to product packaging
     
Packaging played a large part in the success of One Commune One Product, a programme promoting rural communities to boost production of agricultural specialities with competitive advantages that started in 2015.

Dao Duc Huan, head of the programme, said that not enough attention to detail remained one of the many shortcomings and limitations of the programme. Product packages were often similar in design, colour and material used. Many also failed to follow current guidelines and regulations and missing important information.

The underlying causes were a lack of technical expertise and inadequate investment on producers’ part. He urged producers to focus on sending strong messages and creating distinctive designs for their products. The ideal package should be easy to produce and use while carrying a strong message for the products with clear branding and essential information.

In a survey by market research firm Nielsen, up to 67 per cent of consumers in Ha Noi, HCM City and Can Tho City said they placed great importance on a product’s package, saying it was the first thing that caught their attention.

There have been precedents of OCOP products that became widely popular after changing their packages. Chu noodles, for example, experienced a surge in popularity after switching from nylon to paper bags with a new design.

Most OCOP products with a 4-star rating, with a 5-star rating being the highest, possess detailed packaging. OCOP products with a 2 and 3-star ratings, on the other hand, often lacked creativity and finesse or failed to focus on their brands.

Some 1-star products were said to offer no distinctive features while using generic packages, which was a missed opportunity for producers and hurt the products’ marketability.

Dung Quat oil refinery reports record capacity

Dung Quat oil refinery has raised its capacity to 112% to contribute to reducing pressure on domestic petrol and diesel oil supply.

This is the highest capacity of the plant since it was put into operation in 2009, Binh Son Refining and Petrochemical JSC (BSR), which manages and operates the plant, said on November 6.

Based on directions of the Government, the Ministry of Industry and Trade and the Vietnam Oil and Gas Group (Petrovietnam), the BSR has negotiated with oil field owners the possibility of increasing production output and adding more crude oil sources in November and December for the factory.

This is the second time this year the Dung Quat oil refinery has increased its operating capacity. Previously, on October 18, its capacity was raised from 107% to 109%.

Relevant agencies, firms asked to join hands to ease fuel shortage

The Ministry of Industry and Trade has written to the relevant ministries, agencies, firms and local authorities urging them to join hands to tackle the ongoing fuel shortfall.

In its recent dispatch, the ministry said that the number of gas stations suspending operations is on the rise, so it is necessary to strengthen support measures to ensure sufficient fuel supply for domestic consumption, the local media reported.

The ministry proposed the ministries of Public Security and Transport and the governments of provinces and cities create favorable conditions for vehicles transporting fuels to gas stations, especially during rush hours.

The nation’s two oil refineries, Nghi Son and Binh Son, were told to maximize their production, speed up delivery to fuel firms, and supply fuels to wholesalers, including those who have yet to sign a purchase contract, to ease the severe fuel shortage.

Besides, the Ministry of Industry and Trade asked the State-owned Vietnam Oil and Gas Group (PVN) to urge PVOil to actively import gasoline and maintain the operation of gas stations.

The ministry had earlier proposed the State Bank of Vietnam ask commercial banks to help fuel firms gain easier access to loans.

Shares to face downward trend on increased sell-off
     
Market analysts forecast that selling pressure will still increase during the decline of the market this week. Investor sentiment will remain easily exposed under the movements of interest rates, exchange rates and the bond market.

The VN-Index lost the 1,000-point landmark on Friday. It decreased 2.22 per cent to close at 997.15 points.

The index had declined 2.94 per cent last week.

Vietnam Foreign Trade Bank Securities Company Limited (VCBS) said that, following the European Central Bank (ECB) and the US Federal Reserve (Fed), on November 3, the Bank of England (BOE) announced its decision to raise interest rates by 0.75 percentage points to 3 per cent. This is a very strong increase in a short period of time.

This implies that the State Bank of Viet Nam will likely continue to raise the operating interest rate along with the exchange rate increase to ensure the balance between the two countries.

This trend is not only observed in Viet Nam but also in many other emerging economies. Rapidly and sharply rising interest rates for both lending and deposit rates in many countries in a short period of time have put pressure on net capital outflows in asset markets in emerging markets and led to risks in assets valuation, VCBS said.

Saigon - Hanoi Securities Joint Stock Company (SHS) said that the Vietnamese stock market is under selling pressure equivalent to the time of the COVID-19 pandemic in March 2020, together with macroeconomic factors related to interest rates, exchange rates, and the bond market, making it difficult to determine whether the market has formed a long-term bottom or not.

According to Bao Viet Securities Co (BVSC), the market may face downward pressure this week. It is recommended for investors to secure profit and reduce stock exposure. Investors should temporarily stop opening long positions. Buying should only be considered when VN-Index dips back to the 978-988-point and 930-950-point zones.

Construction materials stocks fell the most in the past week with a decrease of 8.5 per cent in market capitalisation. The main reason for this came from the sharp drop in the steel industry with representatives of losers such as Nam Kim Group (NKG) down 17.5 per cent, Hoa Phat Group (HPG) down 12.8 per cent, Hoa Sen Group (HSG) down 9.4 per cent. Besides, chemical stocks also fell sharply, specifically PetroVietnam Ca Mau Fertiliser JSC (DCM) decreased by 8.9 per cent, Duc Giang Chemical (DGC) decreased by 8.3 per cent, and Phu My Fertiliser (DPM) lost 8.1 per cent.

The consumer service industry also dropped strongly with 8.5 per cent of market capitalisation, mainly due to the strong drop in retail stocks such as Mobile World Group (MWG) down 13.4 per cent, Digiworld (DGW) and FPT Retail (FRT) both down 11.3 per cent.

Real estate stocks also performed poorly. Development Investment Construction JSC (DIG) was down 12.6 per cent, Kinh Bac Corporation (KBC) down 7.3 per cent, Dat Xanh Group (DXG) down 6.3 per cent. Insurance stocks like Bao Minh Insurance Corporation (BMI) down 11 per cent, Bao Viet Holdings (BVH) down 4.8 per cent and PVI Insurance Corporation (PVI) down 2.5 per cent.

The rest of the sectors all decreased such as information technology down 3.9 per cent of market capitalisation, industry down 3.1 per cent, oil and gas down 2.6 per cent, pharmaceutical and medical down 2.5 per cent, consumer goods down 2.5 per cent, banking and community utilities both decreased by 0.5 per cent.

HCMC needs steady, balanced economic stance for sustainable growth

Chairman of Ho Chi Minh City People’s Committee Phan Van Mai stressed in the meeting about the city’s socio-economic status in the last 2 months of 2022 that completing the budget revenue target for 2023 is a challenging mission for HCMC now that the economic health of this quarter is on the wane. This has asked for more precise evaluation of the current status to devise suitable measures to fulfill that mission.

By now, the total budget revenue of HCMC has come to nearly VND393 trillion (US$15.8 billion), accounting for 101 percent of the 2022’s goal and a rise of over 22 percent compared to this time last year.

However, with developments related to the fuel market as well as the financial-banking state right now, the socio-economic picture of HCMC is rather gloomy, asking for more efforts to overcome. The general economic health of the city from the third to the fourth quarter is not positive as the industry sector is witnessing a decrease except for only the rubber, plastic, and food processing industries.

Meanwhile, the quantity of foreign tourists being served is lower than expected (only at 2 million as opposed to 8.5 million before the pandemic). Consumption only slightly increases by 1 percent. The credit rate and FDI remained almost unchanged.

Therefore, it is extremely tough to prepare suitable goals, scenarios, measures, and policies for the following year when the global economy is still enduring long-term crises, high inflation, and inevitable recession. To have a stable macroeconomy, HCMC is facing various challenges, coming as a result of two tiring years fighting the Covid-19 pandemic and hot situations in the world.

Among those challenges is the development of a solution to cope with the interest rate increase from the central banks of other countries, forcing the Government to promote the policy to support the exchange rate since the foreign exchange reserves are dropping significantly. Adding to that is the need to manage pressure from the repayment of corporate bonds, especially those from real estate enterprises, at the end of 2022 and beginning of 2023.

Ample room to boost golf tourism development in Vietnam

Featuring hilly terrain, a long coastline, and plenty of beautiful scenery, the nation boasts several advantages to develop modern and world-class golf courses moving forward, according to insiders.

This information was released during a recent meeting held between Nguyen Trung Khanh, director general of the Vietnam National Administration of Tourism (VNAT), and Paul Stringer, President of Nicklaus Design, the world's leading golf course design company with the aim of seeking solutions aimed at promoting the golf tourism industry in Vietnam.

Vietnam is one of the few countries that reopened to international tourism early by removing numerous barriers placed on tourists, said insiders, adding that the Vietnamese tourism industry has made great efforts to revive the market and build fresh tourism products to meet demand in the post-pandemic period.

Khanh assessed that one of the main tourism types that Vietnam has attached great importance to develop is golf tourism, adding that the country is currently home to about 100 golf courses and is hoping to have 200 golf courses by 2025.

Last year saw the country also receive the "Best Golf Destination in the World and Asia" award for the second time and has since been recognized as the Best Golf Destination in the world for the fifth consecutive year, he added.

For his part, Stringer hailed the numerous achievements of the Vietnamese tourism industry over recent years, especially golf tourism, noting that the country needs to build high-class golf courses in order to develop golf tourism in the future.

With the advantage of being one of the world's leading golf course design companies, Stringer affirmed that the company will provide support in promoting Vietnamese golf tourism products via its media channels, hoping that the VNAT will serve as a bridge to introduce potential golf projects for the company to formulate investment plans.

Khanh responded by noting that the VNAT will organise promotional tourism schemes in the time ahead in a bid to elevate the Vietnamese golf tourism industry among international friends.

Currently, the VNAT is also working alongside Vietnam Golf Magazine to survey and evaluate golf courses according to a list of 20 criteria and will present the awards to golf courses that meet these standards.

As part of the occasion Khanh also invited Stringer to join the Advisory Board in reviewing this award in 2023 in the hope that the meeting will create a wealth of opportunities for future co-operation in developing golf tourism in the country.

Real estate market must be digitalised

Digital transformation is no longer an option but a mandatory trend for real estate enterprises to overcome difficulties and contribute to promoting the formation of a healthy, transparent, and sustainable market.

Nguyen Manh Ha, Vice President of the Vietnam Real Estate Association, said the digital transformation in the real estate market of Vietnam was taking place slowly because not all market participants were fully aware of the importance of technology. In construction, for example, the digital transformation was mainly used for energy saving and using green materials while the application of high technologies in development and operation remained modest, he said.

Hoang Mai Chung, Chairman of Meey Land Group, said that many technology platforms were developed and helped solve several social problems. However, the real estate market had not yet seen such technology platforms. He said that property technology (protech) was born to meet the three basic real estate market requirements, including providing information, supporting transactions and managing processes. However, protech in Vietnam had not managed to develop user data which was big enough.

Nguyen Tran Linh, general director of SSLAND Joint Stock Company, said technologies were comprehensively changing the operation of real estate businesses. Linh expected that the digital transformation would help improve productivity, efficiency and value for customers with a more transparent market.

Bui Van Luat, General Director of Gold Star Holding Asset Development Joint Stock Company, digital transformation was not an easy journey for businesses. He added that it would take time to change the habit and gain the customers' confidence.

The Government played a critical role in the success of digital transformation, said Bui Van Doanh, Director of the Vietnam Real Estate Research Institute. The digital transformation for the real estate market was a long process, Doanh said, adding that developing an ecosystem was vital for the real estate market to follow the sustainable development trend.

Nguyen Cong Chinh, who was in charge of digital transformation at Dat Xanh Mien Bac Real Estate Service Joint Stock Company, said that there was no definite template for digital transformation. Digital transformation was a lengthy process, and the leaders' mindset was a significant factor.

Vo Tri Thanh, Director of the Institute of Branding and Competition Strategy, highlighted four keys towards successful digital transformation in the real estate market. The first was the vision and determination of leaders. The second was that the digital transformation strategy must be closely linked with the enterprises' business strategy. Third, digital transformation should be started from the very beginning and implemented in the best way. Finally, enterprises should not try to handle everything alone. They should cooperate for mutual development, Thành stressed.

Wood processors eye record high export surplus this year

Vietnam exported approximately US$14.4 billion of wood and wooden products over the past 10 months, up 10.7% year on year, according to the Ministry of Agriculture and Rural Development.

The products posted a record-high export surplus of US$11.7 billion, the highest in the agricultural sector.

Meanwhile, Vietnamese wood pellet exports have recorded rapid increases over recent years. Statistics indicate that wood pellet exports brought in US$542.3 million in 10 months, up 81%, making Vietnam the second largest exporter of pellets in the world.

The first nine months of the year saw the country primarily focus on exporting wood and wooden products to the United States, with export turnover reaching US$6.8 billion, accounting for 55.5% of the total export value of the product group.

Vietnam’s other major consumers of the products were China, Japan, and the Republic of Korea, that made up 10.1%, 9.3%, and 5.9% of the market share, respectively.

Wood exports have shown signs of slowing down in recent times, but experts anticipate that export turnover is likely to hit US$1.5 billion each month in the last quarter that helps raise this year’s export turnover to US$16.9 billion, up 14% year on year.

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