Digital transformation, now a global trend, faces significant hurdles in Vietnam's agriculture sector, according to Dang Duy Hien, Deputy Director of the Centre for Digital Transformation and Agricultural Statistics under the Ministry of Agriculture and Rural Development.

Vietnam currently ranks 63rd out of 113 countries in digital transformation, with over 50% of its population holding electronic payment accounts and the digital economy contributing 20% to the GDP.

However, the agricultural sector is grappling with several bottlenecks that hinder its digital progress.

Key challenges include underdeveloped information technology infrastructure and fragmented data and information systems. Additionally, there is a lack of coordination and integration among agencies and organisations, as well as limited digital skills within the agricultural workforce. The high costs associated with digital transformation are further exacerbated by the absence of substantial support mechanisms and policies.

Le Thanh Tung, Deputy Director of the Department of Crop Production, said agriculture is one of the eight priority sectors for digital transformation in Vietnam. The goal is to have 80% of agricultural data developed and updated on a big data platform by 2025.

Since 2018, the crop production sector has been developing a digital transformation concept to monitor and report production activities. This initiative has involved piloting and refining various versions of the Rice Monitoring and Reporting System (RiceMoRe).

By the end of 2024, RiceMoRe is expected to be expanded to 28 cities and provinces and integrate into the ministry’s foundational database. This integration aims to facilitate data sharing with its departments, streamlining the monitoring and reporting processes./.

Vietnamese businesses honoured for contributions to Vietnam-Laos ties

The Vietnamese Business Association in Laos (AVILA) held a get-together in Vientiane on October 13 to mark the 20th anniversary of the Vietnam Entrepreneurs' Day and honour Vietnamese businesses’ contributions for the socio-economic development of Vietnam and Laos and cooperation between the two countries.

Addressing the event, Vietnamese Ambassador to Laos Nguyen Minh Tam said that Laos currently tops 80 countries and territories in which Vietnamese businesses have invested, with 256 projects worth about 5.5 billion USD, making Vietnam the third largest foreign investor in Laos.

Currently, Vietnamese-invested projects have been present in 17 out of 18 provinces of Laos across fields.

In the first six months of 2024, Vietnam invested 35.5 million USD in Laos, up 35% year on year, with 2.8 billion USD disbursed, he said, noting that many Vietnamese-funded projects have operated effectively, contributing to the host country’s socio-economic growth, creating jobs for local labourers and increasing State budget revenue of Laos.

Besides, Vietnamese investors have actively engaged in social welfare activities in Laos, showing their great efforts and growth, the ambassador said.

Tam underlined that Vietnamese businesses and entrepreneurs have become the front force in promoting trade and investment collaboration towards breakthroughs in economic ties between the two countries, making bilateral economic-trade cooperation on a par with their extremely sound relations in politics, diplomacy, defence and security.

The diplomat suggested that in the coming time, the AVILA should continue to promote the spirit of creativity and innovation in its operations, actively supporting guiding member enterprises to properly and fully implement the legal regulations of the two countries, acting as an important bridge between businesses and the Lao Government, building good image of Vietnamese enterprises, and supporting the Lao Government, localities and people in economic development, stabilising life and society.

On the occasion, the Ministry of Industry and Commerce and Council of Industry of Commerce of Laos presented certificates of merit to collectives and individuals with outstanding contributions to Laos’ economic development and the growth of the great friendship, special solidarity and comprehensive cooperation between Laos and Vietnam./.

Hanoi’s industrial production shows promising growth

The capital city of Hanoi has seen thriving industrial production, especially in the processing and manufacturing sector, with local businesses working to seize opportunities to accelerate growth toward the year end.

Nguyen Dinh Thang, Deputy Director of the municipal Department of Industry and Trade, reported that in the first nine months, the main industrial indicators continued to show a strong recovery, making substantial contributions to the city's overall economic growth.

In the period, the industrial production index grew by 5.4% year-on-year. The processing and manufacturing sector, in particular, saw a 4.8% increase, with its consumption index rising by 9.9%.

Thang attributed these positive outcomes to rising global demand and supportive measures from the Government, ministries, and the municipal authorities.

To further boost industrial production, Hanoi aims to ensure that 100% of key industrial enterprises benefit from its support policies.

The capital city is also focusing on providing preferential credit policies for prioritised sectors, improving the investment and business environment, and resolving existing bottlenecks. Additionally, it is supporting companies in modernising, improving their production capabilities and increasing their localisation rate.

The city is closely monitoring global economic trends to keep businesses updated, particularly about potential markets. Local associations and businesses are also assisted in leveraging traditional markets and exploring new, promising ones.

Moreover, Hanoi is actively promoting the popularisation of free trade agreements to help firms understand related opportunities available to step up investment, production and supply chain integration./.

Vietnam Expo 2024 HCMC to showcase modern lifestyle solutions

The 22nd Vietnam International Trade Fair in Ho Chi Minh City (Vietnam Expo 2024 HCMC), themed “Solutions for the Modern Lifestyle,” is set to run from December 5-7 at the Saigon Exhibition and Convention Center in District 7.

The event, considered the largest multi-industry exhibition series of the year, will feature more than 1,000 stalls operated by over 800 enterprises from 20 countries and territories, including the US, Germany, Japan, the Republic of Korea, India, and Taiwan (China). The expo is expected to create opportunities for participating businesses to expand their networks, form partnerships, and explore new markets.

The expo is expected to attract over 15,000 visitors, including producers, importers, exporters, distributors, experts and potential clients from across the globe.

A representative of its organiser Vinexad said that the theme draws inspiration from rapid changing demand in the contemporary life. Accelerating urbanisation, digitisation and a growing focus on sustainable living have prompted today’s consumers to seek products that enhance convenience, efficiency, and environmental friendliness in their daily lives.

To this end, the fair will offer business networking, cooperation and market development chances in the key areas of food and eco-living, home and garden, machinery and electronics, and hardware and hand tools.

Going beyond merely showcasing products, it positions itself as a hub for innovation, dialogue, and forward-looking solutions, with attendees treated to workshops, symposiums, and live product demonstrations offering insights into the latest trends shaping modern lifestyles./.

Vietnam’s distinctive agricultural exports to China exhibited in Hanoi

An exhibition showcasing Vietnam’s distinctive farm produce exported to China opened in Hanoi on October 13, featuring the participation of 16 local enterprises and introducing over 50 categories of high-quality products from across the three regions of the country.

The event is co-organised by the Ministry of Industry and Trade, Ministry of Agriculture and Rural Development and relevant ministries, agencies, and localities.

On display are a range of items particularly favoured by Chinese consumers, including coffee, tea, durian, bananas, dairy products, and swiftlet nests. Additionally, the expo introduced goods with significant potential for the Chinese market like fresh coconuts and frozen durians as well as other promising items with high demand in China such as various types of fruits.

Participating Vietnamese enterprises include PAN Group, TH Group, Khanh Hoa Salanganes Nest Company, Nutifood Binh Duong, AVANEST Vietnam Nutrition JSC, Phong Hai Lao Cai JSC, and Trung Nguyen Legend Group, among others.

The exhibition serves as an excellent opportunity for Vietnamese producers and suppliers to introduce and promote their agricultural brands and products while seeking customers, enhancing trade, and building sustainable partnerships with potential fruit importers from China.

In the first nine months, Vietnam’s export turnover of agro-forestry-fishery products to China reached 9.26 billion USD, with fruit and vegetable accounting for 3.4 billion USD, an annual increase of 36%.

To date, Vietnam has officially exported 14 agricultural products to the Chinese market, including durian, swiftlet nest, sweet potato, dragon fruit, longan, rambutan, mangoes, jackfruit, and watermelon. Meanwhile, most of the remaining products are exported through the border-trade channel./.

Cocoa prices surge, importers turn focus to Vietnam's growing regions

In recent months, the price of fresh cocoa has surged, reaching 12,000 VND (0.48 USD) per kg for fresh pods, three to four times higher than in previous years.

The price hike is attributed to a significant supply shortfall in West Africa and South America in 2024, largely due to climate change. Meanwhile, global demand for cocoa-based products continues to grow.

Farmers have benefited significantly from these market changes.

Chu Van Coon, a farmer with 1.6 hectares of cocoa in Phu Hoa commune, Dinh Quan district, the southern province of Dong Nai, said: "We are very excited that cocoa prices have multiplied. Income from cocoa is now far higher than many fruit crops that once topped the profitability charts."

However, it poses challenges for cocoa processing businesses. Dang Tuong Khanh, General Director of Trong Duc Cocoa Company, said that the rapid rise in raw material costs creates more difficulties than advantages for processors.

Although input prices have spiked, selling prices cannot rise as dramatically or quickly. Additionally, the market is experiencing unfair competition in cocoa procurement due to the raw material shortage.

"This price increase has been a boon for farmers, but processors and consumers are facing difficulties. We're striving to balance costs to offer the best prices to consumers," Khanh said.

Amid a global raw material shortage for chocolate production, many manufacturers in the world are seeking to source cocoa from Vietnam. Several large chocolate brands have set up factories in the country, prioritising local cocoa processing for export.

Director General of the Malaysian Cocoa Board, Datuk Dr. Ramle Kasin, praised Vietnam's cocoa for its rich, authentic flavour, which is free from the hybrid characteristics found in some other countries' products.

With global demand for cocoa-based products, particularly chocolate, steadily increasing, the market potential for cocoa remains vast. Vietnam has the potential to become a major player in meeting market demands. However, to fully capitalise on this opportunity, the country needs to increase its cocoa production.

The ASEAN Cocoa Club, which includes leading industry experts, researchers and cocoa businesses from ASEAN nations, selected Vietnam to host its 24th conference. The goal is to connect global producers and traders with Vietnam’s businesses, fostering cooperation and expanding the reach of Vietnamese cocoa products, especially to high-demand markets./.

Vietnam, Romania strengthen cooperation in trade, automotive manufacturing

Deputy Minister of Industry and Trade Nguyen Hoang Long met with President of Romania's Prahova Chamber of Commerce and Industry Aurelian Nicolae Gogulescu in Hanoi on October 14, during which they discussed strengthening economic and trade cooperation.

Gogulescu highlighted the chamber's long-term collaboration with Vietnam, dating back to 2001, particularly in the oil and gas sector, and education-training.

They acknowledged positive developments in the bilateral trade on the basis of the EU-Vietnam Free Trade Agreement (EVFTA). However, they said, the outcomes have yet to match the potential of both sides.

The two sides agreed to step up cooperation in the areas where they have strengths, such as automobile manufacturing, education-training in the oil and gas sector, high-tech agriculture, and IT.

Vietnam and Romania planned to organise the 18th meeting of their Joint Commission on Economic Cooperation in Romania in 2025 as part of activities celebrating the 75th anniversary of the bilateral diplomatic relations.

Trade between the two countries grew by 37.5% in the first eight months of 2024 to over 350 million USD, according to the Vietnamese Ministry of Industry and Trade.

From 2019 to 2023, the bilateral trade rose more than 1.65-fold, but it represented only 0.06% of Vietnam’s total trade and 0.2% of Romania’s./.

Vietnam eyes electronics industry expansion at Hong Kong int’l trade fair

Vietnam is participating in the Hong Kong Electronics Fair and International Exhibition on Electronic Components and Production Technology at the Hong Kong (China) Convention and Exhibition Centre.

The October 13-16 event features around 3,200 exhibitors from 19 countries and territories, including Vietnam, Japan, the Republic of Korea, and the US. The Vietnamese booth introduces the country’s potential, strengths, and cooperation demand in this sphere. Vietnam Post and Telecommunications Group and the Nam Dinh Vu Industrial Park, and some others are represented through catalogs.

Vu Thi Thuy, head of the Vietnam Trade Office in Hong Kong and Macau, emphasised Vietnam's focus on expanding its electronics industry, and expressed her hope that Vietnamese products will soon enter the Hong Kong market.

On this occasion, over 90 startups, including those from Vietnam, are also showcasing innovative solutions in sectors like big data, eHealth, and IoT at a startup zone.

This event highlights the latest trends in the electronics industry and fosters collaboration in this field./.

Vietnam fares better in Asia Power Index 2024

Vietnam ranks 12th among the 27 countries and territories in the Asia Power Index 2024, recently launched by the Australia-based Lowy Institute, with its overall score gaining 1.2 points compared to last year.

This year, the country gained an overall score of 18.7 out of 100, up 1.2 points or 7% from the 2023 rankings.

The index is based on eight criteria, namely economic capability, military capability, resilience, future resources, economic relationships, defence networks, diplomatic influence, and cultural influence.

Susannah Patton, Director of the Southeast Asia Programme at the Lowy Institute and the Project Lead for the Asia Power Index, said the rankings aim to compare countries’ comprehensive power. As a middle power in Asia, Vietnam sees the biggest improvements in diplomatic influence and cultural influence.

It performs best in terms of diplomatic influence, up 3.3 points to place 8th, the result of its proactive diplomatic outreach with a diverse set of partners. Its ranking for this measure improved by one place in 2024, according to the report.

In 2023, Vietnam was the only in the region to welcome the top leaders of both the US and China, Patton noted.

As of the end of August, Vietnam had established diplomatic ties with 194 countries, formed economic partnerships with over 230 countries and territories, and signed 16 free trade agreements, including many new-generation ones.

Besides, its scores for cultural influence, future resources, economic relationships, military capability, and economic capability have recorded respective gains of 1.9, 1.8, 1.6, 1.5, and 0.8.

The list is topped by the US and China with respective scores of 81.7 and 72.7, followed by India and Japan./.

Corporate bond issuance drops by 60% in September

The total value of corporate bond issuances in September dropped significantly, by 60% from August, to the lowest figure recorded since May, a recent report showed.

There were 24 private placements of corporate bonds totalling over 22.3 trillion VND (898.6 million USD) and one public issuance amounting to nearly 1.5 trillion VND in September, according to data compiled by the Vietnam Bond Market Association (VBMA) from the Hanoi Stock Exchange (HNX) and the Securities Commission of Vietnam (SSC).

Consequently, the total value of corporate bond issuances in September was only 40% of the previous month (August saw issuances surpassing 60 trillion VND), marking a five-month low.

For the first nine months of the year, there were 268 private placements totalling 250.4 trillion VND and 15 public bond issuances amounting to more than 27 trillion VND.

Notably, commercial banks represented 72% of the total bond issuance value, while real estate enterprises accounted for 18.54%.

In September, businesses repurchased nearly 11.75 trillion VND in maturing bonds, up 2% from 2023.

For the rest of 2024, an estimated 79.86 trillion VND worth of bonds are expected to mature, with real estate bonds accounting for 35.13 trillion VND (44 %). Additionally, 26 new instances of defaulted interest bonds worth 239.4 billion VND and two defaulted principal bonds worth 550.4 billion VND were reported.

On the secondary market, corporate bond transactions totalled nearly 87.8 trillion VND in September, with an average of over 4.6 trillion VND per session, a 40.2% increase from August.

Last month, the State Treasury held 18 government bond auctions totalling 50.15 trillion VND, with a 66.5% bidding success rate.

The Treasury auctioned bonds with maturities ranging from 5 to 30 years. Notably, 10-year and 15-year terms received the majority of bids, totalling 22.15 trillion VND (66%) and 8.55 trillion VND (26%), respectively.

Government bond issuances through auctions in the first nine months reached 271.6 trillion VND, 67.9% of the annual plan. The average term issued in September was 12.09 years, with an average winning bid interest rate of 2.73% per annum.

The Ministry of Finance will not provide guarantees for bonds issued by the Vietnam Social Policy Bank and Vietnam Development Bank in 2024, as per documents 6139/BTC-QLN and 6140/BTC-QLN./.

Quang Tri develops infrastructure for coal transport from Laos

The central province of Quang Tri is developing its infrastructure to facilitate coal transport from Laos via La Lay International Border Gate in A Ngo commune of Dakrong district.

In June, the provincial People’s Committee granted in-principle approval for a project to build a cross-border coal conveyor belt that spans over 23 hectares in A Ngo commune.

The six-kilometre conveyor belt, expected to cost over nearly 1.49 trillion VND (59.98 million USD), has a designed capacity of 30 million tonnes of coal a year.

Meanwhile, procedures are being completed to get the local administration’s nod for an over-12-hectare warehouse in A Deng village of A Ngo commune. The project is estimated to cost more than 715 billion VND and has a capacity of 30 million tonnes of coal a year.

The province is also working on a 85-kilometre conveyor belt from the La Lay International Border Gate to My Thuy seaport in Hai Lang district and a warehouse project in Cam Hieu commune of Cam Lo district.

Coal imports and transport from have been seen as a key sector for economic development in Quang Tri province.

Over the past time, Vietnam has imported a large amount of coal from Laos via the La Lay International Border Gate, with the daily volume of up to 12,000 tonnes. Coal imports through the border gate could fetch 500 million tonnes in the next 50 years.

Quang Tri is investing in upgrading the border gate’s infrastructure to handle traffic congestion and ensure traffic safety there./.

Vietnam Expo 2024 HCMC to showcase modern lifestyle solutions

The 22nd Vietnam International Trade Fair in Ho Chi Minh City (Vietnam Expo 2024 HCMC), themed “Solutions for the Modern Lifestyle,” is set to run from December 5-7 at the Saigon Exhibition and Convention Center in District 7.

The event, considered the largest multi-industry exhibition series of the year, will feature more than 1,000 stalls operated by over 800 enterprises from 20 countries and territories, including the US, Germany, Japan, the Republic of Korea, India, and Taiwan (China). The expo is expected to create opportunities for participating businesses to expand their networks, form partnerships, and explore new markets.

The expo is expected to attract over 15,000 visitors, including producers, importers, exporters, distributors, experts and potential clients from across the globe.

A representative of its organiser Vinexad said that the theme draws inspiration from rapid changing demand in the contemporary life. Accelerating urbanisation, digitisation and a growing focus on sustainable living have prompted today’s consumers to seek products that enhance convenience, efficiency, and environmental friendliness in their daily lives.

To this end, the fair will offer business networking, cooperation and market development chances in the key areas of food and eco-living, home and garden, machinery and electronics, and hardware and hand tools.

Going beyond merely showcasing products, it positions itself as a hub for innovation, dialogue, and forward-looking solutions, with attendees treated to workshops, symposiums, and live product demonstrations offering insights into the latest trends shaping modern lifestyles./.

Vietnam’s distinctive agricultural exports to China exhibited in Hanoi

An exhibition showcasing Vietnam’s distinctive farm produce exported to China opened in Hanoi on October 13, featuring the participation of 16 local enterprises and introducing over 50 categories of high-quality products from across the three regions of the country.

The event is co-organised by the Ministry of Industry and Trade, Ministry of Agriculture and Rural Development and relevant ministries, agencies, and localities.

On display are a range of items particularly favoured by Chinese consumers, including coffee, tea, durian, bananas, dairy products, and swiftlet nests. Additionally, the expo introduced goods with significant potential for the Chinese market like fresh coconuts and frozen durians as well as other promising items with high demand in China such as various types of fruits.

Participating Vietnamese enterprises include PAN Group, TH Group, Khanh Hoa Salanganes Nest Company, Nutifood Binh Duong, AVANEST Vietnam Nutrition JSC, Phong Hai Lao Cai JSC, and Trung Nguyen Legend Group, among others.

The exhibition serves as an excellent opportunity for Vietnamese producers and suppliers to introduce and promote their agricultural brands and products while seeking customers, enhancing trade, and building sustainable partnerships with potential fruit importers from China.

In the first nine months, Vietnam’s export turnover of agro-forestry-fishery products to China reached 9.26 billion USD, with fruit and vegetable accounting for 3.4 billion USD, an annual increase of 36%.

To date, Vietnam has officially exported 14 agricultural products to the Chinese market, including durian, swiftlet nest, sweet potato, dragon fruit, longan, rambutan, mangoes, jackfruit, and watermelon. Meanwhile, most of the remaining products are exported through the border-trade channel./.

Vietnam urged to build comprehensive national green transition strategy

Vietnamese businesses are facing three major challenges in green transition, namely capital, skilled workforce, and technical solutions, according to the Private Sector Development Research Board (Board IV), under the Prime Minister’s Advisory Council for Administrative Procedure Reform.

Pham Thi Ngoc Thuy, Director of the Office of Board IV, reported that the board had submitted a report to the Prime Minister, assessing the readiness and challenges of Vietnamese businesses in green transition. This report was based on a broad survey of 2,734 businesses, consultations with leaders from nearly 50 associations and key enterprises, on-site visits to factories, and discussions with international and local experts.

The report highlights that green transition is becoming a global race, with major countries investing substantial resources and establishing legal frameworks to promote it, both domestically and internationally. Vietnam must act decisively to align with the government’s commitments at COP26 and COP27, ensuring the country takes advantage of international resources available for green transition.

Green transition requires more than isolated policies, it involves a system of policies and programmes, covering investment, trade, and economic development, while fostering green initiatives and reducing emissions. Vietnam needs a comprehensive national green transition strategy led by the government, with close coordination between ministries, local administrations, the private sector, and the public. This strategy must have clear timelines, responsibilities, targets, and measures for monitoring progress.

According to the survey, 48.7% of businesses recognised the importance of emission reduction and green transition, with 16.9% considering it crucial. However, 17.4% viewed it as unnecessary, and 33.9% only saw it as moderately important. Interestingly, both domestic and export-focused businesses showed similar levels of awareness about the need for green transition.

The agriculture and industrial sectors were more attuned to the importance of emission reduction than construction and services, with 59.6% of agricultural businesses and 54.1% of industrial firms acknowledging the necessity of green transition. Foreign-invested enterprises were slightly more ready for green transition than domestic companies.

However, 64% of surveyed businesses had made no preparations for green transition. Only 5.5% had taken steps to reduce emissions in key activities, and a mere 3.8% had tracked and reported annual emission reduction results. This lack of readiness could create significant pressure in the future as more stringent international regulations come into effect.

The survey identified the three biggest challenges facing businesses in green transition such as access to capital, skilled workforce, and technical solutions. Green transition requires significant capital investment.

According to the World Bank, Vietnam needs an additional 368 billion USD for resilience building and emission reduction between 2022 and 2040, with the private sector's contributions expected to cover nearly 50% of the funding.

Currently, green finance in Vietnam remains underdeveloped. As of the end of 2023, green credit only accounted for 4.5% of total outstanding loans, and green bonds were scarce.

Although the government and international partners are working to support green projects, businesses are still struggling to access the necessary funds due to regulatory and administrative barriers. Vietnam must address these challenges to ensure a successful green transition that is essential for the country’s sustainable growth and international competitiveness./.

Top 100 most valuable Vietnamese brands 2024 announced

The 100 most valuable Vietnamese brands in 2024 were honoured at a ceremony held by Consultancy Vietnam Brand Purpose and global consultancy Brand Finance in Ho Chi Minh City on October 11.

Viettel, for the 9th consecutive year, has retained its title as the most valuable local brand with a value of 8.9 billion USD, followed by Vinamilk and VNPT, both at 2.6 billion USD.

Other valuable brands include GELEX, Vietjet, VPBank, Vietinbank, PNJ, and Vinhomes.

Within the framework of the event, this year’s Brand Finance Vietnam 100 Report was also released to provide a comprehensive picture of the valuations.

Vietnam was the fastest-growing brand in the world, with its value surging 102% during 2019-2023 to 498.13 billion USD last year. It currently ranks 33rd out of 121 in terms of strongest national brand.

Nguyen Thanh Giang, CEO of Vietnam Brand Purpose, said with the economy facing numerous challenges, global uncertainties and tough competition from international brands, this report could help businesses improve their investment attraction and reinforce their competitive advantages.

Tran Thi Kim Phuong, director of FPT Software Ho Chi Minh, said that a brand not only contributes to increasing the value of a business but also helps the company capture international markets. Specifically, one of the key factors that has enabled FPT to assert its capabilities, position, and brand value in both the domestic and foreign is its pioneer role in technology trends, its continuous expansion in scale and market presence, and its effective communication of the brand message to consumers.

Alex Haigh, managing director of Brand Finance Asia-Pacific, said brand story communication played an increasingly important role in enhancing a business’s brand value and market share but it must be done regularly to ensure familiarity among customers and gain the trust of buyers and other business partners through consistent and transparent messages.

If brand story building is linked with local culture or resources, businesses can contribute to positioning the country’s national brand on the global map, and this could encourage other domestic brands to grow, according to Haigh.

Vietnam Brand Purpose and Brand Finance are working together to deploy measures that elevate Vietnamese brands in both the domestic and foreign markets, he added./.

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