The Thi Vai liquefied natural gas (LNG) warehouse and terminal complex, the first of its kind in Vietnam, of the Petrovietnam Gas Joint Stock Corporation (PV GAS), has passed a series of technical tests and is now ready to be put into commercial operation.

Work started on the Thi Vai LNG warehouse and terminal projects, based in the southern province of Ba Ria - Vung Tau, on October 28, 2019. Their trial operations began on July 10, 2023, and the test run of the main processes completed on July 30.

The Thi Vai system is currently the biggest LNG complex in the country. The LNG warehouse, the heart of the system, already had its first phase completed with the storage capacity of 180,000 cu.m., able to handle 1 million tonnes of LNG per year. Its second phase is currently under construction with a view to raising the annual handling capacity to 3 million tonnes.

Meanwhile, the LNG terminal is capable of serving vessels with deadweight tonnage (DWT) of up to 100,000.

The Thi Vai LNG complex will be an important link in the provision of deliquefied LNG and ensure the uninterrupted supply of gas for existing clients and new power plants under the Prime Minister-approved general plan on developing Vietnam’s gas industry until 2025 with orientations toward 2035.

It is expected to provide about 1.4 billion cub.m. for clients and make up for part of the domestic gas shortage after 2023.

A leader of PV GAS, an affiliate of the Vietnam Oil and Gas Group (Petrovietnam), said the trial operations showed the Thi Vai LNG warehouse has met all criteria and requirements, with absolute safety for people and equipment guaranteed, nearly three days ahead of schedule. The reception of LNG from the first vessel carrying imported LNG to Vietnam was also completed two days early.

The facilities have successfully imported the first batch of LNG and run on a trial basis, supplying 20 million cub.m. of LNG for the market as of July 31, 2023.

However, to secure success for the complex, it is necessary for policies to be issued to promote the distribution of LNG in the market, to not only industrial clients or future LNG-fired power plants but also existing gas-fired power plants amid the dropping domestic gas supply and slower-than-expected implementation of the plan on developing new gas sources.

Since 2015, the annual volume of gas provided for power generation is 8.8 billion cu.m. at the maximum, including 7.3 billion cu.m. for the southeastern region and 1.5 billion cu.m. for the southwest.

However, the domestic gas supply for electricity production is falling sharply, to about 4.3 billion cu.m. for the southeast and 1.4 billion cub.m. for the southwest in 2023. The supply for the regions is forecast to respectively decline to 1 billion cu.m. and 0.6 billion cu.m. by 2030.

According to the National Power Development Plan for 2021 - 2030, with a vision to 2045 (Plan VIII), the electricity generated by using domestic gas supply and LNG will reach 37,330MW by 2030, equivalent to 24.8% - the largest share - of the total, including 14,930MW from the use of domestic gas sources (9.9%) and 22,400MW from the use of LNG (14.9%).

With the goal of eradicating coal use in power generation by 2050, gas-fired power plants will play a crucial role in the national power system since they are not affected by weather compared to hydro, wind, or solar power. In addition, those plants also have high readiness, big capacity, quick response, and minimized emissions of greenhouse and polluting gases.

Therefore, the use of LNG is also in conformity with the Vietnamese Government’s commitments made at the 26th United Nations Climate Change Conference (COP26) and the trend of using low-emission fuels.

More efforts needed to achieve economic growth targets: official

The national economy still faces many challenges both at home and abroad, requiring greater efforts to achieve economic growth targets for 2023, said Deputy Minister of Planning and Investment Tran Quoc Phuong.

The Vietnamese economy has shown positive signs of recovery in August, with many economic indicators maintaining growth against previous months.

The GDP growth of 3.72% in the first half of the year is lower than the target set by the Government in Resolution 01/NQ-CP, so it is a challenging task to achieve the growth target in 2023, Phuong said.

If Vietnam does not reach the economic growth targets, that result will affect the implementation of the five-year socioeconomic development plan from 2021 to 2025, and also the 10-year development strategy from 2021 to 2030. It also puts at risk the goals set out in the Resolution of the 13th National Party Congress for 2030-2045, he added.

To achieve a GDP growth rate at 6.5% for 2023, Vietnam would need to attain a growth rate of approximately 9% for the second half of the year.

The reduction of global demand has affected import-export activities as well as the production and business of domestic enterprises. Most large enterprises in the fields of processing, manufacturing and electronics have heavily relied on the consumption of major economies, but with consumption decreasing, some markets are witnessing declines of up to 60%.

Deputy Minister Phuong said in such challenging circumstances, the agriculture sector continues to be an important pillar with stable growth, together with the strong recovery of the tourism and service sectors. Both have provided substantial support to the overall GDP growth structure, helping to alleviate challenges faced by the industrial sector.

He underlined the need to further promote the growth drivers, including consumption, investment, and export; maintain macro-economic stability, control inflation, and ensure social security and support labourers in the remaining months of the year.

It is also necessary to focus on drastically implementing solutions to promote the disbursement of public investment capital and the programmes of socioeconomic recovery and development, accelerate the progress of national key transportation infrastructure projects, and inter-regional and large urban infrastructure projects, Phuong said.

Ministries, sectors and localities need to solve legal problems in a prompt and effective manner, focusing on bottlenecks and obstacles in public investment disbursement, such as project preparation and site clearance, he added.

Vietnam needs to continue to closely monitor forecasts on the international economic and financial-monetary situation, thereby having a timely response plan and improving the effectiveness in coordination between monetary policy and other macro policies to maintain macro-economic stability, control inflation and support economic growth.

Another very important solution is institutional reform to create new policy room for economic development, he went on.

September CPI in HCM City picks up 0.56% month on month

The September CPI in Ho Chi Minh City increased by 0.56% from August, with rises seen in the prices of eight out of 11 groups of commodities used to calculate the index.

The highest increase, 1.4%, was seen in transport services, driven by higher prices of fuels and means of transport. The group of housing, utilities and construction materials posted a 1.11% hike.

Three groups of commodities with price reduction are post and telecom services (0.94%), beverage and tobacco (0.31%) and garment, headgear and footwear (0.14%).

The average CPI in the first nine months of the year went up 3.45% from the same period last year, with rises seen in nine groups of commodities except for transport services and post-telecom.

Vietnam seeks to secure sustainable development for dragon fruit sector

A conference was held in Ho Chi Minh City on September 29 to discuss ways for securing sustainable dragon fruit development in Vietnam amid uncertainties in global markets.

Vietnam now has nearly 55,000ha of dragon fruit farming and harvests about 1.3 million tonnes each year. The favourable soil and climate conditions have enabled the country to produce dragon fruit on a large scale all year round. As a result, it used to be the world’s leader in terms of the farming area, output, and export value, said Nguyen Quoc Manh, head of the fruit tree division of the Crop Production Department at the Ministry of Agriculture and Rural Development.

However, after conquering several markets for a certain period of time, the fruit from Vietnam is facing a number of challenges, he noted, pointing out the foreign markets’ increasingly stringent standards for quality, food safety, and look of fresh dragon fruits, the emergence of many pests and diseases caused by climate change impacts, soaring fertiliser prices, the unsustainable connectivity between businesses and farmers, the limited number of companies involved in value chains to meet requirements of major and demanding markets, and the shortage of advanced processing, packaging, and preservation facilities.

China, the main market of Vietnamese dragon fruit, has applied increasingly strict quality standards. Meanwhile, exports to such new markets as India and demanding ones like Japan, the Republic of Korea, the EU, and the Americas, as well as consumption in the domestic market and the processing industry haven’t recorded good growth.

Besides, the area of dragon fruit farming elsewhere in the world has been expanding fast. While the farming area and output in China have surpassed Vietnam’s, India – a big and potential market – is also working to raise the farming area from 3,000ha at present to 50,000ha in the next five years, Manh noted.

Therefore, dragon fruit export is forecast to encounter difficulties in the coming time if Vietnam enlarges the farming area and does not move to improve quality to meet importing markets’ standards, the official went on.

Echoing the view, Tran Thanh Binh, head of the agro-forestry-fishery export and import division of the Foreign Trade Agency at the Ministry of Industry and Trade, said dragon fruit is one of the key fruit exports. About 80 - 85% of the dragon fruit output is exported while the remainder sold in the domestic market.

Dragon fruit used to generate up to 1 billion USD in exports for Vietnam, but the value has declined over the last three years. It stood at 450 million USD during the first eight months of 2023, down 4.4% year on year, data show.

Manh said that as many countries are increasing their dragon fruit farming area and output, the agricultural sector does not advocate the cultivation area expansion, especially in the areas with unfavourable land and climate conditions. The area and output should be maintained at 60,000 - 65,000ha and 1.3 - 1.5 million tonnes.

Localities need to apply advanced production processes, ensure productivity, improve the look, quality, food safety, and origin traceability of the fruit, cultivate the varieties matching different markets’ demand, form production zones appropriate to export markets, boost the connectivity between farming zones and processing and exporting businesses, maintain traditional market and develop new ones, and upgrade processing and preservation facilities, according to Manh.

Binh perceived that apart from challenges, there remain opportunities for dragon fruit export thanks to the free trade agreements Vietnam has joined, the recovering global demand for farm produce, and falling sea transport expenses.

She recommended ministries and sectors assist localities to sell the fruit in the domestic market, facilitate the export via northern border gates and official channels, improve quality to diversify markets, and capitalise on trade promotion and business matching programmes.

Patrick Haverman, Deputy Resident Representative of the UN Development Programme (UNDP) in Vietnam, suggested the country focus on quality instead of quantity and maintain concentrated production in such provinces as Binh Thuan, Long An, and Tien Giang to apply Good Agricultural Practice (GAP) standards and the ones on quality, safety, environmental protection, and climate change adaptation.

To do so, farmers and the parties involved in the dragon fruit value chain should adopt a market-oriented production mindset, form specialised farming zones appropriate to main markets, and upgrade the connections within the value chain from producers, processors to the logistics system.

Besides, he added, consumers now tend to prioritise low-emission agricultural products, so Vietnam’s dragon fruit sector should build and expand green production models, and minimise emissions and inputs to promote the fruit’s value and competitiveness.

Hanoi's CPI increases in September

Hanoi’s consumer price index (CPI) in September rose 3.06% from the previous month, and 3.3% from a year earlier, the municipal Statistics Department announced on September 29.

The nine-month CPI inched up 1.22% from the same period last year, it added.

In September, eight of the 11 categories of goods and services saw price hikes, namely education (33.84%), housing, electricity, water, fire fuel and construction materials (1.81%), transportation (1.18%), restaurant and catering services (0.64%), dining-out services (0.18%), garment, headwear and footwear (0.46%), beverages and cigarettes (0.22%), medicine and health services (0.03%), and other goods and services (0.27%).

Prices declined in three categories – postal and telecommunications services (0.15%), culture, entertainment and tourism (0.11%), and family equipment and appliances (0.01%).

The city’s CPI in the third quarter of 2023 increased by 1.21% compared to the average of the same period last year.

In the January-September period, Hanoi accommodated nearly 3.5 million tourists, 2.1 times higher than the same period last year.

Vietravel Airlines operates first flight connecting Nha Trang, RoK’s Muan

Vietravel Airlines, a subsidiary of tour operator Viettravel, has operated its first direct flight from Nha Trang city in the central province of Khanh Hoa to Muan of the Republic of Korea (RoK).

The charter flight VU1331 took off from Muan International Airport and landed at Cam Ranh International Airport at September 29 noon, carrying 208 passengers.

This is the airline's second route to tourism cities in the RoK, following the Nha Trang - Daegu route launched in March this year.

As of August 2023, Vietravel Airlines had successfully operated charter flights connecting Nha Trang - Daegu, Nha Trang - Macau (China), and Hanoi - Sanya (China), Those are markets that contribute a large number of visitors to Vietnam and vice versa.

Vietnam targets about 8 million international visitors in 2023. As of August 2023, it attracted more than 7.8 million foreigners, according to the General Statistics Office.

During the eight-month period, the RoK continued to be the largest market sending visitors to Vietnam with 2.2 million.

On September 28, the Vietnam Tourism Association and its Korean counterpart signed a cooperation agreement, aiming to increase tourists between the two countries.

HCM City requires 75,500-81,500 jobs in Q4

Ho Chi Minh City’s labour market will need 75,500-81,500 more jobs in the fourth quarter of this year, according to the municipal Department of Labour, Invalids and Social Affairs.

It said that the trade and service sector has the biggest demand, accounting for 70.13% of total human resources needs. The industrial-construction sector makes up 29.69% and the agro-forestry-fishery sector for 0.18%.

Human resources demand in four key industries constitutes 18.55% of the total, with the mechanical industry accounting for 4.99%, electronics - information technology 5.53%, food processing 4.07%, and pharmaceutical chemicals - rubber 3.96%.

The demand for trained workers makes up 85.6% of the total, said Nguyen Hoang Hieu, Director of the Centre of Forecasting Manpower Needs and Labour Market Information (FALMI) under the municipal Department of Labour, Invalids and Social Affairs.

Some businesses will continue to face many difficulties in production and business in the remaining months of 2023, especially those in labour-intensive fields. However, an increase in the number of newly established enterprises and those resuming operations will open up employment opportunities for workers, she said.

The labour market will gradually recover as public investment and export activities have been promoted and enterprises have increased production and business to serve consumer demand during the Calendrer and Lunar New Year holidays, Hieu added.

Freeze-dried instant coffee factory inaugurated in Binh Duong

The ILD Coffee Vietnam Ltd Company on September 29 inaugurated its freeze-dried instant coffee factory with an annual production capacity of 5,600 tonnes in the southern province of Binh Duong.

The factory with a total investment of more than 84 million USD is located in the Protrade International Industrial Park in An Tay commune, Ben Cat town.

It using modern extraction and freeze-drying technology is installed production equipment designed to minimise impacts on the environment.

Coffee is one of Vietnam's key industrial crops. Every year, Vietnam exports over 1.1 million tonnes of coffee bean, mainly Robusta, to nearly 100 markets. Most of Vietnam’s exported coffee is raw, unprocessed so its added value is modest.

The instant coffee factory is expected to increase the added value of the products and incomes for coffee growers.

Speaking at the inauguration ceremony, Nguyen Van Danh, Vice Chairman of the Binh Duong provincial People's Committee, affirmed the province will create favourable conditions and promptly resolve difficulties for investors in Binh Duong and ILD Coffee Vietnam in particular so that they can operate effectively.

As of September 15, the province attracted 4,166 investment projects from 65 countries and territories with a total registered capital of more than 40.2 billion USD. It currently ranks 2nd in the country in attracting foreign direct investment (FDI), after Ho Chi Minh City.

In the first nine months of 2023, the province attracted a total investment of nearly 1.3 trillion USD.

Hanoi still tops FDI destinations during nine months

Hanoi recorded nearly 2.53 billion USD in foreign direct investment (FDI) registered during the first nine months of 2023, maintaining its top position in FDI attraction in Vietnam, said the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.

The FDI in Hanoi accounted for nearly 12.5% of the registered sum nationwide and increased 2.46-fold year on year.

During the period, foreign investors poured money into 54 of the 63 provinces and centrally-run cities.

The northern city of Hai Phong came second with nearly 2.21 billion USD, equivalent to 10.9% of the total and up 82.4% from a year earlier. It was followed by Ho Chi Minh City, Bac Giang province, and Binh Duong province.

Meanwhile, HCM City took the lead in the number of new FDI projects, the ones receiving additional capital, as well as foreign investors’ deals to contribute capital to and purchase shares of domestic companies, which respectively expanded 38.2%, 23%, and 66.3%.

Among the 102 countries and territories investing in Vietnam during the nine months, Singapore was the biggest investor with more than 3.98 billion USD, or over 19.7% of the total but down 15.2% year on year.

It was followed by China (2.92 billion USD, 14.5% of the total, and up 94.9%) and Japan (nearly 2.9 billion USD, 14.3% of the total, and up 51%).

China had the biggest number of new projects (21.2% of the total) while the Republic of Korea led in terms of the projects added with more investment (26.7%) and the number of capital contribution and share purchase deals (28.5%), statistics show.

The FIA said that between January and September, the disbursed capital of FDI projects rose 2.2% year on year and 0.5 percentage point from the eight-month figure, proving the effectiveness of the Government’s strong measures for tackling difficulties facing businesses.

Though the nine-month registered FDI, nearly 20.21 billion USD, fell slightly from the eight months (by 0.5 percentage point), it was still 7.7% higher than in the same period last year.

Additionally, the additional capital in recent months has been on the rise in recent months compared to the first months of the year. The number of existing projects added with more funding has also gone up, demonstrating investors’ trust in Vietnam’s investment climate, according to the FIA.

Agro-forestry-fisheries sector posts 22.5% rise in trade surplus

The agro-forestry-fisheries sector posted a trade surplus of 8.04 billion USD in the first nine months of this year, up 22.5% annually, reported the Ministry of Agriculture and Rural Development.
 
During the period, the total export-import turnover of agro-forestry-aquatic products hit 6.9 billion USD, down 7.5% year-on-year. Of which, nearly 38.5 billion USD was from exports.

In September alone, the export revenue of agro-forestry-aquatic products reached 4.8 billion USD, down 2.7% monthly and up 22% annually.

China, the US and Japan remained the top three export markets of Vietnamese farming products.

The ministry said, it will continue developing both domestic and export markets, while dealing with market-related issues to create favorable conditions for the export of agro-aquatic products to China, the US, the European Union and the Eurasian Economic Union.

It will also help exporters make full use of free trade agreements as well as help firms secure new export contracts, protect trademarks and provide geographical indication for Vietnam's potential export products in foreign markets.

Foreign media upbeat about Vietnam’s economy

Many foreign press agencies have run articles featuring Vietnam’s economic growth, pointing to rosy signs in its recovery.    

French wire service AFP cited statistics by the General Statistics Office (GSO) showing the economy grew 5.33% in the July-September period from a year earlier, and that loan interest rate reductions, an extension of tax payments and increased public investment had a positive impact.  

Nikkei Asia also said the growth was accelerated thanks to tourism, noting “the services sector helped boost economic output during the three months through September, driven mainly by retail and tourism. The sector is estimated to account for about 40% of Vietnam's GDP.”

“Travelers returned to popular destinations like the central city of Da Nang, with the number of foreign visitors entering the country from July to August reaching 2.25 million, already exceeding 1.27 million in July-September last year.”

Recent official economic data shows that the manufacturing sector is recovering, it said, adding that the monthly industrial production index turned positive in May and marked the fifth consecutive month of expansion in September.

China’s Xinhua News Agency also cited official data showing Vietnam attracted nearly 20.21 billion USD in foreign direct investment (FDI) from the start of this year to September 20, a year-on-year growth of 7.7%.

The Asian Development Bank (ADB) said in its Asian Development Outlook (ADO) September 2023 that Vietnam’s economic growth is expected to slow down to 5.8% in 2023 mainly due to “the weak external environment.”

However, its Country Director for Vietnam Shantanu Chakraborty said the economy remains resilient, and recovery is expected to pick up in the near term, driven by strong domestic consumption, which is supported by moderate inflation, an acceleration of public investment, and improved trade activities.

Nine-month CPI increases by 3.16% year on year

The average consumer price index (CPI) in the first nine months of this year increases by 3.16% from the same period last year, the General Statistics Office (GSO) reported on September 29.   

According to the GSO, nine of the 11 categories of goods and services saw price hikes, particularly transport services with airfare surging 71.56% year on year, train services 31.26% and coach 8.33%.

Besides, the prices of education services picked up 7.28%, housing and construction materials 6.73%, food 4.85%, and drinks and tobacco 3.48%.

In the period, prices declined in two categories – petrol and oil 15.26%, and postal and telecommunications services 0.62%

Meanwhile, the core inflation in the period rose 4.49% year on year, as petrol and oil, which recorded significant prices reduction, are not included in the goods basket for calculating inflation. 

The September CPI increased 1.08% compared to August and went up 3.66% from the same month last year. Core inflation in the month rose 0.26% compared to the previous month and climbed 3.8% compared to the same period last year.

Vietnam’s nine-month GDP increases by 4.24%

Vietnam’s gross domestic product (GDP) in the first nine months of this year rose by 4.24% from the same period last year, the General Statistics Office (GSO) announced on September 29.

In the third quarter, the country's economic growth rate was estimated at 5.33% compared to the same quarter of 2022.

The GSO assessed that although the nine-month growth rate is only higher than those in the same period of 2020 and 2021 in the past 12 years, it showed a positive trend of increasing gradually over the quarters: 3.28% in the first quarter, 4.05% in the second quarter and 5.33% in the third quarter.

In the January-September period, the agro-forestry-fishery sector expanded by 3.72%, contributing 8.03% to the total added value of the entire economy. The growth rates of the industrial and construction sector and the service industry were 5.19% and 6.24% with contribution proportions of 38.63% and 53.34%, respectively.

Amidst common difficulties and challenges of the world economy, most international organisations have revised down their forecasts of Vietnam’s growth rate for 2023 based on results and forecasts of domestic production and business activities and the impact of the world economy.

The Vietnamese Government and Prime Minister Pham Minh Chinh have directed ministries, sectors and localities to implement drastic measures to solve difficulties, promote growth, and maintain macro-economic stability and major balances of the economy.

Borrowers struggle to benefit from new lending policy

Borrowers are finding it challenging to obtain new loans from banks to settle their existing debts at a different bank, despite the recent implementation of a regulation permitting debt transfer.

The State Bank of Vietnam's Circular No 06/2023/TT-NHNN, effective from September 1 this year, enables borrowers to secure loans from alternative banks to settle their outstanding loans at their original bank.

Since the introduction of this lending policy, banks have offered appealing interest rates, as low as 6-7% per annum, to entice new clients. Nonetheless, borrowers have reported difficulties in moving their current debts to a different bank to benefit from reduced interest rates.

A borrower said he was especially interested in this new lending policy as he had borrowed nearly 2 billion VND from a bank three years ago to buy an apartment and the interest rate of the loan is currently more than 14% per year. He therefore hoped to get a new loan from another bank that is introducing a low interest rate of 6-7%.

However, after working with the new bank, he discovered the low rate is only applied during the preferential period of 24 months at most. Since he borrowed three years ago, the preferential period had expired. Therefore, even if he transfers the debt to the new bank, they will apply a floating interest rate of around more than 10% per year. If calculated carefully, the total amount he would have to pay is almost the same at both banks. Besides the interest rate, he would also need to pay other fees such as an early repayment fine and appraisal fee to transfer the loan to the new bank.

Another borrower also learned about the new lending policy and found it was infeasible for her family to benefit from the policy. She explained that if she wants to transfer her loan to a new bank to enjoy the lower interest rate, she would need to pay off the loan at the old bank, satisfy the mortgage, and then remortgage the asset to secure a loan at the new bank. Alternatively, she could use another asset as collateral for a loan at the new bank. However, the borrower said both measures are not feasible for her family because she cannot borrow enough to pay off the old debt and release the collateral, nor remortgage with a new asset.

Finance expert Dinh Trong Thinh said that in theory, the new lending policy provides borrowers with more flexible options. For instance, if they find another bank offering better incentives or lower interest rates for loans, they can opt to borrow from that bank to repay their current loan at the original bank. This forces banks to compete fairly, equitably and healthily in the loan market. However, most large loans at banks require collateral. Thus, it is challenging for borrowers to prepay their debts at one bank and have collateral to borrow from another.

Thinh proposed that the State Bank of Vietnam allow commercial banks to lend based on the existing collateral. He explained that as information about loans and collateral is available at the information centre of the banking system, banks can facilitate conditions for borrowers to transfer debts from one bank to another without having to satisfy the mortgage from the old bank.

The new bank can use the available information about collateral at the old bank to re-evaluate and approve loan applications, instead of requiring customers to remortgage another asset or satisfy the mortgage at the old bank. This would make it easier for borrowers to access new loan sources, and banks would also become more competitive, Thinh said.

Vietnam-US Comprehensive Strategic Partnership heralds new waves of trade

On the back of the newly-signed Comprehensive Strategic Partnership between Vietnam and the US, American exporters are setting their sights on delivering a wider range of agricultural products to Vietnamese consumers.

US Ambassador to Vietnam Marc Knapper said bilateral trade was growing steadily over the past decade, reaching 130 billion USD in 2022, of which 10 billion USD went to agriculture.

Following the elevation of the relationship to a Comprehensive Strategic Partnership, there's no doubt that bilateral trade, particularly in the agricultural sector, would continue to thrive.

In other words, a wider range of American agricultural products would make their way into Vietnam in the short term and so would Vietnamese products into the US.

Francis Lee, a representative of the Washington Apple Commission, said American apples were in high demand in Vietnam with about 2 million baskets being consumed annually. Other products such as grapes and cherries were also gaining popularity among Vietnamese consumers.

He expected that the upgraded relationship would facilitate the entry of more American fruits into Vietnam in the years to come. He said Vietnam and the US could consider reducing import tariffs to make each country's fruits more competitive in the other country.

Currently, American apples and grapes are subject to import tariffs of approximately 8%, while other fruits ranging from 10-15%. If the tariffs are reduced or cut down to 0%, it would be a significant opportunity for American fruits to enter the Vietnamese market.

Vu Ngan Giang, a representative of the US Grains Council, said the US remained the largest producer and exporter of sorghum in the world, producing over 11.5 million tonnes and exporting 7.4 million tonnes in 2021.

Vietnamese consumers purchase sorghum mostly in the form of mixed ingredients. There is no data about sorghum import as a single ingredient, but what is known is that sorghum products were gaining favour in the country.

"Sorghum is what Vietnamese consumers need for their healthy eating pattern," said Giang.

Le Van Anh Tu, a representative of the US Meat Export Federation, said Vietnamese consumers had a great appetite for American tri-tip beef. However, current import tariffs of between 14-20 % have made the product less affordable to them.

He hoped that the upgraded relationship would pave the way for some tariff cuts on agricultural products in the future, making American beef more competitive when entering the country.

In the fruit sector, seven types of fruits from the US have been permitted to be exported to Vietnam. Peach is expected to make the eighth on the horizon.

Veggie, fruit exports to China enjoy double-digit growth

Vietnam’s vegetable and fruit exports to China have experienced remarkable double-digit growth, solidifying China’s position as the largest importer of these products.
 
According to the Ministry of Agriculture and Rural Development, in the first eight months of this year, Vietnam’s revenue from vegetable and fruit exports reached 3.45 billion USD, up nearly 60% year-on-year.

China continues to be Vietnam’s primary destination for vegetable and fruit exports, accounting for 65% of the total revenue.

The Vietnam Fruit and Vegetable Association highlights the significant potential for Vietnamese fruits, such as durian and jackfruit, to enter the Chinese market, as these tropical fruits cannot be cultivated to the same quality standards within China.

The Ministry of Agriculture and Rural Development projects that if the current growth trajectory is sustained, Vietnam’s fruit and vegetable exports could reach a remarkable 5 billion USD in 2023, surpassing the target two years ahead of schedule.

Developing sea-based aquaculture in Ninh Thuan

Ninh Thuan province has a coastline of over 100 km and boasts a diverse system of lagoons and bays. Taking advantage of its topography, local fishermen are investing in aquaculture with high economic value and doing so in a sustainable manner.
 
In Ninh Hai district’s Nai Lagoon, which covers more than 1,200 hectares, local fishermen are developing a model for Pacific oyster farming. There are currently a total of 840 cages raising oysters in the lagoon.

Mr. Nguyen Thanh Duy’s family has 15 oyster cages, each of 60 square metres. After deducting investment costs, each cage brings his family more than 1,200 USD in profit on average.

Meanwhile, fisherman Nguyen Ba Ngoc in Thanh Hai commune in Ninh Hai district chose to raise squid. He invested in building two modern cages of 2,400 square metres each to raise adult squid for eggs and also commercial squid.

The large cages are surrounded by a net while their bottom rests on the seabed, so the squid can still find natural food sources, reducing the cost of feed. On average, a squid cage of 1,000 square metres produces about 7 tons per 5 to 6-month crop, bringing handsome profits to fishermen.

Besides oysters and squid, local farmers also raise fish, lobsters, molluscs, and seaweed, and models are being replicated in other coastal districts of Ninh Thuan. With current selling prices, these types of seafood bring high profits for most farmers.

To improve the efficiency of local aquaculture, researchers in the district are working to produce sufficient young fish of high quality. District authorities are also closely directing and inspecting farming models to ensure fishermen’s compliance with local development plans and to protect the diversity and sustainability of local ecosystems.

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