With Vietnamese Women’s Day (October 20) approaching, stores in Ho Chi Minh City are stocking up on a wide range of products and offering promotions to attract customers.

Saigon Co.op is offering discounts of 20-46% on more than 1,000 cosmetic, personal care and fashion products at its Co.opmart, Co.opXtra, Co.op Food, Co.op Smile, Cheers, Finelife, and Co.oponline outlets until October 25.

The supermarket chain has also launched more than 200 kinds of gift boxes containing beauty brands and fruit hampers and others made to order from customers.

Nguyen Ngoc Thang, marketing director of Saigon Co.op and director of Co.opmart’s operations division, said: “In addition to the target customer group, Saigon Co.op also prioritises Gen Z customers - the most tech-savvy generation.”

LOTTE Mart has launched a promotion programme on products such as skin, hair and body care, make-up and cosmetics, health products, and others with big discounts.

Other retailers, fashion and cosmetics shops and jewellery companies in the city are also offering attractive discounts.

PNJ is offering discounts of up to 25% on gold jewellery and 50% on silver for customers shopping on its online channel until October 22.

Customers at its stores will get promotions and gifts.

Many fashion, cosmetic and footwear shops can be seen decked out with promotion banners.

Forum seeks cooperation opportunities for Vietnamese, Japanese startups

The Vietnam-Japan Association of Entrepreneurship (E-Future) held a startup summit in Tokyo, Japan, on October 14, aiming to introduce potential business opportunities for startups of both nations.

The Vietnam Startup Summit in Japan 2023 saw the participation of Japan’s big investment funds like RainMaking and WASEN Holdings, GMO Aozora bank,and startups from the two countries, among others.

Addressing the forum, Can Thanh Huyen, CEO of SHB Japan and Chairman of E-Future, briefed the participants on the operation of E-Future, which was established in April with the aim of providing information and advice on the startup process, financial support, and training and education programmes, as well as creating opportunities for connectivity and exchange between startups and investors, business partners and experts from Vietnam and Japan. 

As Vietnamese startups have found it hard to access capital, the event is set to provide them with cooperation and development opportunities in Japan, she continued.

A highlight of the forum was the introduction by nine Vietnamese and Japanese startups, comprising Ecofa, DH Holding, EM&AI, Mmenu, furuCRM Inc, Deep Signature, V-Quantum, WENet and Notessen, which operate in technology and sustainable environment, artificial intelligence (AI), cloud computing, and advanced technology in construction.

Talking to the Vietnam News Agency (VNA)’s correspondents in Tokyo, Yuzo Hosaka from Japanese bank GMO Aozora, said he was impressed by English language skills, confidence and ideas of the Vietnamese entrepreneurs at the event.

GMO Aozora stands ready to invest in Vietnamese startups, as well as provide other favourable conditions for them, he said, noting that it is not easy to access Japanese investments and it requires their great efforts.  

Within the framework of the forum, joint venture HANABI-SATO Electrical Engineering of Japan and Do Hoang Holding, a Vietnamese startup, signed a memorandum of understanding on cooperation in establishing a joint venture to exploit the Japanese market.

Canadian firms look into opportunities in Vietnam

A workshop discussing opportunities for Canadian industrial and technological businesses in the Vietnamese market has been held recently in British Columbia, Cambodia.

The event, hosted by the Vietnamese Embassy in Canada in collaboration with the Ministry of Jobs, Economic Development and Innovation of British Columbia and the Canada-ASEAN Business Council (CABC), is part of a series of event to celebrate the 50th founding anniversary of the Vietnam - Canada diplomatic ties, and the 30th establishing anniversary of the Vietnam Trade Office in Canada.

The workshop attracted crowds of representative from Canadian businesses in the western region, Vietnamese businesses operating in the North American nation, and those from ministries and sectors of British Columbia.

In his opening speech, British Columbia Minister of Trade Jagrup Brar emphasized the importance for the locality to strengthen relationships with global partners like Vietnam.

Vietnam is the top destination for Canadian goods and services among ASEAN countries thanks to its average economic growth rate of 7% over the past 30 years, he said.

Vietnam is seen as a gateway for Canadian businesses that want to access the 660-million-people ASEAN market, which is one of the regions with the fastest economic growth in the world, he said.  

According to Brar, trade relations between Vietnam and British Columbia have begun to regain momentum, with a growth rate of 63% in 2022.  The Canadian province is also the top destination for Vietnamese businesses in Canada with 6 projects worth more than 300 million CAD (over 219.48 million USD).

Vietnamese Consul General in British Columbia Nguyen Quang Trung said the CPTPP, a trade bloc with 500 million people and total GDP of about 13.5 billion CAD, has brought new opportunities for Vietnam and Canada to strengthen economic, trade and investment cooperation.

Trade Counselor Tran Thu Quynh at the Vietnamese Embassy briefed participants on Vietnam's policies in attracting investment in industry, and the country’s advantages in infrastructure for energy, telecommunications, e-commerce, seaports and especially Vietnam's strategic position in the trans-Pacific transport corridor.

According to Quynh, British Columbia and Vietnam have great potential for cooperation in the industrial sector, especially in clean energy, electric vehicles and automobile industry, artificial intelligence (AI) and semiconductors.

Hoang Ngoc Dinh who is in charge of science and technology cooperation at the Vietnamese Embassy noted that Vietnam has great demand in new technology fields such as renewable energy, semiconductor technology, essential metal mining and processing, which Canada can meet. He added that investing in those fields will help Canadian investors not only take advantage of the Vietnamese market but also fully tap the Canadian Government's support policies.

Vietnam promotes products in Czech Republic

The Vietnamese Embassy in the Czech Republic has recently organised a programme to foster connectivity between Vietnamese and Czech businesses, and introduce Vietnamese products to local residents.

Speaking at the event in Ústí nad Labem region on October 13, Ambassador Thai Xuan Dung stressed that since the EU-Vietnam Free Trade Agreement (EVFTA) came into force on August 1, 2020, economic relations between Vietnam and the Czech Republic have made significant progress.

Since the beginning of this year, the two countries have maintained high-level delegation exchanges to enhance cooperation in all fields, he said, highlighting the official visit to Vietnam by Czech Prime Minister Petr Fiala in April. 
 
The diplomat expressed his belief that in the near future, Czech importers, businesses and people, and Vietnamese in the host country will use more products from Vietnam.  
  
He affirmed that the Czech Republic is currently an important partner of Vietnam in Eastern and Central Europe, noting that the Czech side also considers Vietnam a friend and important partner.

However, the bilateral economic and trade cooperation has yet to match the potential of each country, as the turnover accounts for only a small proportion of the total foreign trade revenue of both countries.

Vietnam mainly exports footwear, garment-textiles, seafood, machinery and spare parts, and electronics to the Czech Republic, while importing machinery, equipment, tools, other spare parts, and iron and steel products from the country.

Vietnam – Cambodia trade hits nearly US$5 billion over nine months

Two-way trade turnover between Vietnam and Cambodia rose 3% in the first nine months of this year to reach US$4.77 billion, according to statistics unveiled by the Cambodian Ministry of Economy and Finance.

Of the total, Cambodian exports to Vietnam fetched US$2.028 billion, up 30.7% year on year, while its imports dropped 11% to US$2.736 billion.
  
September 2023 alone saw Cambodia rake in more than US$185.2 million from exports to Vietnam, an increase of 104.5% year on year. The market also imported US$286.1 million worth of goods from Vietnam, down 4.3% over the same period last year.

Currently, Vietnam is Cambodia’s third largest trading partner globally after China and the US, the largest trade partner in ASEAN and the second largest export market globally after the US.

Economic, trade and investment cooperation is a bright spot in bilateral relations. Trade exchanges between the two countries have grown strongly over the years, reaching more than US$10.57 billion last year, up nearly 11% compared to 2021.

The Vietnam Trade Office in Cambodia reports that the structure of Vietnam’s export products to Cambodia is diverse, thanks to regular industry and business connections.

Some major products that Vietnam exports to Cambodia include iron and steel, fertilizer, petroleum, machinery and equipment. Vietnamese consumer goods are increasingly present in Cambodia’s sales chains.

With regard to investment, currently Vietnam has 205 valid investment projects in Cambodia with a total registered capital of US$2.94 billion, ranking first in ASEAN and in the top 5 foreign investors in the country. Notably, Cambodia is the second largest Vietnamese investment recipient abroad.

Gold prices keep rising on global market fluctuations

Domestic gold prices hit a new record high of VND71 million per tael on October 14 as prices of the yellow metal shot up in the global market.

At 2:30 p.m. on October 14, Saigon Gold and Jewelry Company listed each tael of SJC gold at VND69.80 million and VND71 million for buying and selling, up VND0.7 million for both buying and selling prices from the previous trading session.
  
Simultaneously, Doji Group rated the yellow metal at VND69.60 million and 71 million for buying and selling, up VND0.85 million compared to the October 13 trading.

Bao Tin Minh Chau, another gem stones firm in Hanoi, increased rates by VND0.36 million per tael to VND56.98 million and VND57.98 million for buying and selling compared to the previous day.

Meanwhile, the global gold market is experiencing an upward trend, hitting US$1,932 per ounce on October 14, an additional increase of US$55 per tael compared to transactions on October 13.

Notably, the price of the precious yellow metal is still about VND13.7 million per tael lower than the domestic SJC brand.

According to the news website CNBC of the United States, gold prices jumped more than 3% on October 13 and were poised for their best week in seven months as the intensifying conflict in the Middle East sent investors scurrying for safe-haven assets.

Investors kept close tabs on developments in the Middle East conflict, which has unnerved markets since the start of the week.

Israel stated that its infantry and tanks had carried out raids inside the Gaza Strip, its first announcement of a shift from an air war to ground operations aimed at rooting out Hamas fighters a week after their deadly rampage in southern Israel.

This has fueled increased inflows into assets which are considered to be safe havens, such as gold.

“Investors are fleeing to safe havens as the risks of Middle East tensions grow,” said Edward Moya, senior market analyst.

“If the geopolitical situation gets gloomier, there is a good chance that gold prices could go to the US$2,000 levels this year. We have come from mid-US$1,800s to mid-US$1,900s, US$2,000 is just a fraction of that,” Moya concluded.

Over 10,000 expected to attend FPT Techday

FPT Corporation is gearing up for FPT Techday, an international technology event scheduled for October 24-25 with the participation of up to 10,000 people.

This marks the 11th edition of FPT Techday, a platform where prominent technology experts and executives from global enterprises gather to explore the latest business and technology trends, FPT representatives said during a press briefing held on October 12.

FPT Techday anticipates welcoming 2,500 businesses, including 600 foreign ones, and many of which are listed in the prestigious Fortune 500. Participants will delve into various topics, especially artificial intelligence (AI) and digital transformation.

In addition to Truong Gia Binh, chairman of FPT Corp, the event will feature several notable figures in the industry. Among them are Andrew Ng, a globally recognized leader in AI and a professor at Stanford University, and Christopher Cuong T. Nguyen, CEO and co-founder of Aitomatic, Inc.

The event will showcase technology exhibitions within the FPT ecosystem, featuring advancements such as holograms and three-dimensional visual mapping.

FPT Techday 2023 will be held under the theme “35 Years of Creating Happiness,” which aims to celebrate FPT’s 35-year development in providing technology-telecommunications services and implementing digital transformation solutions.

FPT is currently active in 29 countries, serving a vast customer base and working with numerous partners worldwide.

Recently, the firm announced its strategic program, Digital Conglomerate 5.0, or DC5, for 2023 onwards. This strategy aims to leverage cutting-edge technologies in digital transformation as the cornerstone for the creation of intelligent solutions across various sectors.

Vietnam, South Korea businesses partner in semiconductor industry

Vietnamese and South Korean business associations have inked a memorandum of understanding to enhance cooperation in the semiconductor sector and other industries.

The Hanoi Supporting Industries Business Association (HANSIBA) and the Cheongju Entrepreneurs Community (CEC) in South Korea announced their deal during a ceremony on October 11 in Hanoi. The goals of the cooperation include advancing trade relations, facilitating technology transfers, and encouraging joint investments in semiconductor manufacturing.

While semiconductor manufacturing is at the core of this partnership, it also encompasses other areas. Both parties will cooperate in developing printed circuit boards for various industries, including aerospace, maritime economics and agriculture. Moreover, the agreement extends to producing consumer goods using these technologies.

As part of the pact, Vietnamese and South Korean firms will join forces to promote human resource development, entailing high-level technical training and managerial expertise to support the cooperation.

The CEC has significant experience in high-tech production, with its member companies having a track record of manufacturing advanced technological products, including semiconductor components.

HANSIBA and the CEC share a common interest in integrating businesses into global supply chains. Their plan is to offer a range of goods and services to help Vietnamese and South Korean firms expand their market presence.

N&G Group, a stakeholder in the project, has outlined plans to develop state-of-the-art infrastructure in various industrial zones to support this collaboration. These facilities will include worker housing, healthcare centers, commercial service areas, and specialized training centers.

Vietnam provides an attractive environment for semiconductor sector investors, bolstered by a young, skilled labor force and favorable government policies. The partnership aims to leverage these advantages to boost the semiconductor industry in both countries.

Companies extend maturity of VND95 trillion bonds

Around 50 businesses are in talks with creditors to extend the maturity of bonds worth VND95 trillion due to tough business conditions.

In September, Novaland and its affiliated companies extended the maturity of three bond series by two years, setting new deadlines for June or August 2025, with a total value of VND1,145 billion.

Similarly, Hung Thinh Corporation negotiated the postponement of debt payments for seven bond series valued at VND9,200 billion last month.

Other companies, including Bamboo Capital and Sovico, are also having similar difficulties, with most extending bond debt payments by two years, to a period spanning from 2025 to 2026.

The shortage of capital and business challenges faced by these businesses necessitated negotiations with creditors to reschedule debt payments.

Data from the Vietnam Bond Market Association (VBMA) indicated that last month, businesses redeemed just over VND9,200 billion worth of bonds, representing nearly one-fourth of the total corporate bonds due for payment. This figure marks the lowest level since 2022 and is a 50% decrease compared to the same period in the previous year.

By October 3, more than 50 bond-issuing organizations had successfully negotiated extensions of bond maturity with bondholders, with the total value of bonds having extended maturity surpassing VND95,200 billion, according to VNDirect.

Meanwhile, 69 businesses delayed payments of bond coupons and principal, totaling VND176,100 billion or 18% of the total debt, reported the Hanoi Stock Exchange (HNX).

VNDirect estimated that in the fourth quarter of this year, nearly VND53,800 billion worth of bonds will fall due, with real estate businesses accounting for the majority at 44%, followed by businesses in the finance and banking sector at nearly 40%.

SBV withdraws VND146 trillion via bond sales

The State Bank of Vietnam (SBV), the central bank, has drained nearly VND146 trillion from the banking system through 13 recent short-term bond auctions.

In an auction conducted on October 9, the SBV sold 28-day G-bonds worth VND5,000 billion to four out of 10 bidders with a coupon rate of 1%, reported the Vietnam News Agency.

The volume of G-bonds successfully offered at this auction is lower than that of previous auctions in terms of winning bidders and coupon rates.

The SBV’s G-bond issues are believed to cope with the huge amounts of idle cash in the banking system in the short term and ease pressure on foreign exchange rates between the Vietnam dong and the U.S. dollar.

Following the recent back-to-back short-term bond issues by the SBV, the pressure on exchange rates has eased slightly. The central exchange rate between the dong and the dollar quoted by the SBV on October 10 was VND24,069 per dollar, down VND5 compared to the end of last week.

An Giang to supply sand for two expressways in Mekong Delta

An Giang Province has committed to supplying seven million cubic meters of sand for two expressway projects in the Mekong Delta, aiming to alleviate the sand shortage faced by expressway developers.

The People’s Committee of An Giang said in a meeting with Minister of Natural Resources and Environment Dang Quoc Khanh over sand mining that the province will provide sand for the Chau Doc-Can Tho-Soc Trang and Can Tho-Ca Mau expressways.

Sand for these projects will be sourced from four sand mines covering a total area of 155.98 hectares in the province. The annual mining capacity is estimated at 2.37 million cubic meters.

An Giang Province is set to supply about 5.2 million cubic meters of sand for the section of the Chau Doc-Can Tho-Soc Trang expressway that passes through the province, as well as nearly 1.9 million cubic meters of sand for the Can Tho-Ca Mau Expressway.

Local authorities are also mobilizing additional resources by dredging the Vam Nao River and the Tien River to ensure a sufficient sand supply for the Chau Doc-Can Tho-Soc Trang Expressway.

Sand shortage affects HCMC Beltway 3 project

The HCMC Beltway No. 3 project is facing a shortage of construction material due to sand supply disruptions for a 6.84-kilometer section of the beltway in the Mekong Delta province of Long An.

Contractors have reported that the sand mines designated for the project have ceased operations.

In particular, mines such as Dong Phu in Vinh Long Province, Binh Thanh in Dong Thap Province, Vom Cai Thia, Hoa Khanh 1, and Nam Con Da in Tien Giang Province have seen their exploitation permits expire. The sand mine on the Co Chien River in Tra Vinh Province remains unlicensed.

Sand mining in An Giang Province on the Tien and Hau rivers has been temporarily closed for inspection. Authorities have also sought out sand mines in Ben Tre Province, but none have received permits.

The only sand mine with an extended permit, valid until December 31, is located along the Tien River in Dong Thap Province. However, it can only be used for projects within the province.

HCMC Beltway No. 3, which is 76 kilometers long and costs VND75.4 trillion, will pass through HCMC and three neighboring provinces — Dong Nai, Binh Duong and Long An.

In Long An Province, construction began on June 30, and about VND138 billion out of the VND309 billion investment plan for the project has been disbursed, accounting for 44.7% of the total.

Dang Hoang Tuan, director of the Long An Department of Transport, said the total investment capital is expected to be distributed by the end of 2023.

Nikkei Asia: US President's Vietnam visit generates new investment wave

US President Joe Biden's visit to Vietnam last month seems to have ushered in a new era of expanded economic links between the two countries, said Japan’s Nikkei Asia, adding that a fourth boom of foreign investment in Vietnam may be in the making.

The journal said the high-profile talks between the two leaders were accompanied by some big business deals. Vietnam Airlines, the national flag carrier, signed an initial agreement to buy 50 Boeing 737 Max jets in a deal valued at about 10 billion USD.

Vietnam's leading tech firm, FPT Software, has announced a strategic partnership with the American startup Landing AI. Synopsys, a leading semiconductor design company, has signed a memorandum of understanding to help the Vietnamese semiconductor industry cultivate its chip-design workforce.

It recalled that historically, Vietnam has witnessed three significant booms in foreign direct investment. The first occurred when Honda Motor began local two-wheeler production in 1997. The second wave spanned the period from the early 2000s up to 2008. Notably, Samsung Electronics of the Republic of Korea launched a mobile phone production base in the northern Bac Ninh province in 2009. 

The third boom is believed to have come into full swing in the mid-2010s. With its purchasing power increasing, Vietnam became a lucrative target for foreign consumer businesses. Japanese shopping behemoth Aeon, for instance, inaugurated its first Vietnamese store, Aeon Mall Tan Phu Celadon, in the country's largest city, Ho Chi Minh, in 2014.

Now Biden's visit may trigger a surge in US investment in Vietnam, the journal said. US investments in Vietnam have been modest compared to those by Asian economic powers like Japan or the RoK. As of the end of 2022, the total US direct investment in Vietnam was 11.4 billion USD, trailing behind the figures for countries like the RoK with 80.9 billion USD, Singapore 70.8 billion USD and Japan 68.8 billion USD.

During his visit to the headquarters of chip-making giant Nvidia in San Francisco on September 19, Vietnamese Prime Minister Pham Minh Chinh called on Nvidia CEO Jensen Huang to establish a production base in Vietnam and capitalise on it as its manufacturing hub in Southeast Asia.

PM Chinh also met with other prominent figures in the American tech sector, including Microsoft founder Bill Gates and senior executives from Meta, formerly known as Facebook, and Elon Musk's SpaceX.

According to the article, Vietnam is keen to pivot from its traditional labour-intensive industries, such as garment manufacturing and electronics assembly, toward more value-added high-tech sectors. Collaborations with US tech companies, especially those dominant in the areas of semiconductors and AI, will be crucial for the transformation of the country's industrial structure.

Petrol and oil imports up 23% over nine months

Vietnam spent US$6.65 billion buying eight million cubic metres of petrol and oil over the past nine months of the year, up 23.1% in volume but down 2.4% in value compared to the same period from 2022.

According to the latest statistics unveiled by the General Department of Vietnam Customs, the price of fuel imports throughout the reviewed period reached US$829 per cubic metre, an annual decrease of 20.7%.

The Republic of Korea (RoK), Singapore, and Malaysia were the largest fuel suppliers to Vietnam, accounting for more than 81% of the country’s overall petroleum imports.

September alone witnessed Vietnam purchase  826,319 cubic metres of petroleum of all types worth US$783 million, down 24.7% and 21% in volume and value, respectively, from the previous month.

Compared to the same period from 2022, there was a 31.5% rise in volume and 27% increase in value.

The price of fuel imports in September reached US$948 per cubic metre, up 4.8% compared to the figure in August but down 2.4% compared to the same period in 2022.

This marks the fourth consecutive month that imported petroleum prices have increased, reaching its record high since the beginning of the year.

Ministry forecasts CPI to grow 3.2-3.6% this year

Vietnam’s consumer price index (CPI) is projected to grow between 3.2% and 3.6% this year, the Ministry of Finance said at a meeting of the Steering Committee on Price Management in Hanoi on October 11.

Meanwhile, the General Statistics Office (GSO) forecast that the index, a main gauge of inflation, will expand from 3.3-3.6%. The State Bank of Vietnam said inflation is expected to rise about 3.4%.

The finance ministry held that from now until the end of 2023, price management should be flexible to tame inflation for the whole year in line with the Government's target, and reduce pressure, thus facilitating inflation control in 2024.

It also stressed the need to further roll out the monetary policy proactively, flexibly and effectively in combination with the fiscal policy and other macro policies, manage exchange rates based on the situation, and control credit growth.

Ministries, agencies and localities should proactively review plans to adjust prices of State-managed goods, and public services, the ministry said, noting that there needs to be a plan to minimise negative impacts of price adjustments on the poor and vulnerable groups.

The ministry highlighted ensuring goods for the end of the year and the Lunar New Year, and stabilising their prices, especially essential goods like oil and gas and food.

Expert Vu Vinh Phu proposed the State pay attention to adjusting the prices of goods such as oil and gas, electricity and coal and have a roadmap announced in advance.

Google Cloud aims to elevate Vietnam’s global gaming industry

Google Cloud is unveiling cutting-edge technology trends and innovations to assist Vietnamese gaming companies in reaching global audiences, in line with the Ministry of Information and Communications’ goal of boosting the gaming industry’s revenue from US$600 million to US$1 billion in five years.

At the Games Industry Showcase event hosted by Google Cloud on October 11, Nguyen Duc Toan, country manager for Vietnam at Google Cloud, highlighted four key factors propelling Vietnam’s gaming industry toward future growth: the country’s mobile-first consumer economy, its pool of human resources, investments in a full-fiber network, and a willingness to embrace new technology.

Toan pointed out that nearly half of the world’s population plays games on mobile devices, and the global gaming market is projected to generate over US$187 billion in revenue in 2023, which is five times over the estimated global revenue from movie ticket sales. With over 72% of the population in Vietnam using mobile phones for daily activities, the country presents a significant growth opportunity for gaming businesses.

Representatives from VNGGames, Amanotes, and Wolffun Game attested to the positive impact of Google Cloud’s modern technology on their game production and publication.

Le Trong Giap, head of the Game Publishing Platform at VNGGames, said that utilizing the same infrastructure that serves Google Search and YouTube has enabled VNGGames to deliver a seamless in-game experience to players in various markets.

Wolffun Game is currently using Agones, a game service orchestrator developed by Google Cloud and Ubisoft, to enhance specific functions for their upcoming game, Thetan Rivals.

Vo Tuan Binh, CEO and Co-founder of Amanotes, explained how the company leverages data analytics services and Google Cloud AI to create and maintain its products. Amanotes sees AI as a powerful tool for modern technology innovation and is actively incorporating AI to redefine game development.

Google Cloud also introduced various new training programs, sample models, tools, and Google programs tailored for AI startups. These programs include the generative AI learning path and The Arcade, a gamified learning experience.

HCM City targets sustainable urban agricultural production

Ho Chi Minh City aims to develop sustainable urban agricultural production with high technologies to be applied in cultivation on at least 70% of its agricultural land by 2030, said the director of the city’s Department of Agriculture and Rural Development.

The city’s agricultural land area continues shrinking during the rapid urbanisation process. In the 2010-2015 period, the city lost 700 ha of agricultural land each year. In the 2015-2020 period, it lost 1,000 ha every year.

In 2015, a ha of agricultural land generated 375 million VND (15,300 USD) each year. Between 2015 and 2020, each hectare generated 500 million VND. The city strives to raise the agricultural production value to 900 million VND -1 billion VND per ha per year by 2030.

According to experts, the city’s achievements in agriculture shows that it has been on the right track in promoting high-tech agriculture.

Dr. Pham Dinh Dung, head of the Management Board of the Hi-tech Agriculture Park of HCM City (AHTP) said that the city has set a strategic vision for this field based on applying science and technology to both agricultural production and eco-tourism development.

In recent years, Ho Chi Minh City has focused on building facilities and establishing pioneering units in the field of smart agriculture. Some of such facilities are the High-tech Agricultural Park, the Biotechnology Centre and the Trai Trinh Demonstration and Experimentation of High-tech Dairy Farming. The municipal People’s Committee also approved a programme on developing plant and animal varieties and hi-tech agriculture for 2020-2030, with a focus on research and development.

However, difficulties and challenges remain, particularly in human resources and linkage between retailers and suppliers. The city lacks big value chains for key commodities and products.

Regulations and requirements on agricultural product quality standards, origin, and technical barriers in export markets have created great challenges and higher competitive pressure for local agriculture.

Meanwhile, policy systems and solutions for agricultural development in general and hi-tech agriculture in particular are still inadequate and have not been as effective as expected.

Farmers have difficulties in accessing credit support, investing in mechanisation, and developing a cooperative economy.

Experts urged a clear and adequate legal framework for the management and development of hi-tech agriculture, more investment in human resources training and incentives for R&D and public-private partnership in the field.

Public investment crucial for Vietnam’s economic growth: ADB director

Vietnam’s maintaining the momentum of public investment will be crucial because it will rejuvenate economic activities, generate employment, and enhance domestic consumption, said ADB Country Director for Vietnam Shantanu Chakraborty.

The bank's September report forecast that Vietnam's economic recovery would pick up in the near term on the back of strong domestic consumption, moderate inflation, acceleration of public investment, and improved trade activities.

The ADB remains very confident that Vietnam will be able to achieve an overall annual growth of 5.8% for 2023, Chakraborty said in an interview with the Vietnam News Agency about the economic outlook and the premises for the projections.

“This is premised upon early signs of upticks in the services industry and in the construction industry. We are also seeing growth in the agricultural sector, given the robust stability that has been shown in agricultural prices. So, there are some drivers of the economy that we believe will contribute towards Vietnam achieving its 5.8% economic growth, despite sluggish growth in the first couple of quarters.”

“I believe maintaining the momentum of public investment will be crucial because that is what is going to rejuvenate economic activities, generate employment, and put more money in the hands of people to enhance domestic consumption.”

He went on noting that the monetary and fiscal policies adopted by the government up until now have really facilitated keeping inflation under control.

The ADB’s current projection of inflation in Vietnam is 3.8% for 2023, and 4% for 2024, he unveiled, stressing certain challenges in terms of the global increasing interest rates, the disruptions caused by certain geopolitical events, and the monetary tightening in some countries.

“But overall, given the stability of agricultural production in the country so far, and the fact that oil and gas prices are expected to remain stable for the rest of the year, I strongly believe that, based on the low inflation rates that were experienced by Vietnam in the first half of the year, overall inflation of 3.8% is very much achievable.”

Regarding the key growth drivers of the economy in 2024, the Country Director put public investment as number one. By some estimates, there is about 30 billion USD of public investment that has been planned, so a concerted effort needs to be made to expedite spending the money. That will really boost demand in the market, lead to employment generation, and foster overall economic activities.

Underscoring the importance of consumption, he said given that inflation is now low and there is liquidity in the hands of people, domestic consumption needs to remain strong to offset the adverse impact of export-related activities.

Concerning high interest rates in Vietnam's key trading partners that have depressed the demand for Vietnamese exports, he suggested the country continue to look for new niches where it can provide more value-added services, and try to diversify its export commodity base to more sectors so it can maintain its competitive edge in the international market. More importantly, Vietnam should improve its competitiveness by streamlining its cost structure. And for that, the government plays a big role in terms of ensuring certainty for export-oriented private sector investors to come to the nation and have access to a stable enabling environment and strong infrastructure.

“Those are some of the steps that Vietnam can take to diversify this product base and move up the value chain to actually offer more value-added services to the international market, alleviating the challenges that will be faced by the export sector.”

Pointing to current public debt to GDP of about 38% and the stipulated target that the government has set for itself within a 60% range, Chakraborty noted there is a significant amount of fiscal headroom that the government can deploy, by borrowing more and spending on public investment.

“I see this as a strong opportunity to really push the agenda to spending on infrastructure and the social sector, including providing benefits for unemployment and initiating VAT cuts. I would suggest the government expedite the rollout of VAT cuts, and also extend their tenor to the end of 2024 to reinvigorate domestic consumption.”

Some sugar producers see less positive outlook despite soaring prices

After experiencing “sweet” results in the 2022-23 crop, many enterprises in the sugar industry set more cautious targets this fiscal year that started on July 1. However, the industry is still expected to have a promising year after sugar prices continuously set new highs.

At the 2023 Annual General Meeting of Shareholders, Sơn La Sugar JSC passed the total net revenue plan of over VNĐ1 trillion (US$43 million), a decline of more than 39 per cent from last year’s performance. Its profit after tax is also set to fall nearly 74 per cent year-on-year to VNĐ137 billion, despite the record profit hit in 2022-23.

Cao Bằng Sugar JSC (Cabusa) has also announced a less optimistic picture of business results. In particular, its total revenue from producing sugar and profit after tax is set to fall 15 per cent and 49 per cent on-year over last year to VNĐ252 billion and VNĐ18 billion.

Similarly, Kon Tum Sugar JSC plans a net revenue of nearly VNĐ518 billion and profit after tax of nearly VNĐ28 billion, a decline of 5 per cent and 27 per cent, respectively.

Along with relatively safe business goals for the new year's crop, the leadership boards of these sugar producers made some cautious comments.

For instance, Sơn La Sugarcane predicts that the market may face difficulties in raw material prices and the impact of climate change that will reduce sugarcane output.

The company said that entering 2023, the sugar industry continues to face many challenges, especially climate change, and the El Nino phenomenon is quite serious, causing drought and heat in Sơn La and other Northwest provinces. This has a profound impact on sugarcane raw material areas, many of which have been recorded as dead or affected by drought.

As a result, there is a risk that productivity and output of the next crop will decrease sharply.

Moreover, prices of agricultural materials remain high, reducing the incomes of sugarcane growers; its raw material areas are facing fiercer competition from other peers.

Cao Bằng Sugar also believes that, besides favourable conditions, risks such as the Government's decision to increase the sugar import quota and the lack of strict control over illicit sugar trade exist. These factors can create opportunities for smuggled sugar to dominate the domestic market.

Additionally, the company's source of raw materials is affected by competitive purchasing, leading to a shortage of raw materials, and a reduced scale of production will impact business efficiency.

On the other hand, Kon Tum Sugar's Board of Directors said that the global economy still faces many uncertainties. Illicit activities and trade fraud in the sugar industry, including export production and temporary import for re-export, have not been thoroughly controlled.

Climate change also significantly affects the productivity and quality of many sugarcane cultivation areas, while prices of agricultural materials such as fertilisers and plant protection chemicals, as well as industrial chemicals, have risen sharply.

However, new highs in sugar prices are seen as an advantage of the industry this year.

Since the end of 2022, international sugar prices have continuously risen due to unfavourable weather conditions, causing supplies in major markets such as Brazil, India, and China to diminish. Sugar is traded at 26.74 cents/pound, its peak in 12 years.

Meanwhile, India has only permitted the export of 6 million tonnes of sugar in the 2022-23 crop year, a significant decrease from the record level of nearly 12 million tonnes in the previous crop year, to ensure domestic supply.

The Indian government is also expected to officially ban factories from exporting sugar in the next crop year, starting from October. This move to suspend India's exports occurs for the first time in seven years as a lack of rain reduces sugarcane productivity.

Many sugar organisations predict that the sugar supply will continue to tighten in 2023-24 due to dry weather affecting sugarcane output and rising crude prices. Part of the sugarcane output is converted into raw materials for ethanol production.

According to the Vietnam Sugarcane and Sugar Association (VSSA), domestic sugar output is expected to reach 87,000 tonnes in the current crop year, a gain of 16.6 per cent year-on-year.

Domestic sugar prices are also projected to remain high and align with global sugar prices in 2023 because imported sugar makes up 2/3 of the country's sugar supply.

In a recent report, SSI Research anticipates that the Ministry of Industry and Trade will increase the maximum import volume of sugar according to the tariff quota for 2023 to supplement the domestic sugar supply. This will benefit domestic refined sugar mills that import raw sugar. SSI also expects that rising domestic sugar prices will encourage farmers to return to sugarcane cultivation.

Anti-subsidy and anti-dumping policies applied to Thai sugar to protect domestic production enterprises are factors that contribute to long-term improvements in domestic sugar output and prices.

On the stock market, sugar stocks have not performed positively recently due to strong corrections of the market's benchmarks. However, the level of fluctuation wasn't as significant as those in the securities, real estate, and banking industries, Lê Xuân, a HCM-based independent trader, told Việt Nam News.

"However, in the medium and long term, I believe the sugar industry also has advantages such as the persistent El Nino phenomenon, causing sugar prices to rise recently, export suspensions from major suppliers like India, and reduced production output from Thailand," Xuân said.

"In addition, the increase in the exchange rate for the US dollar against the đồng benefits sugar enterprises with export activities that account for a significant proportion of their revenue."

However, she noted the importance of monitoring the sugar smuggling situation and the trade defence measures of countries when analysing the industry.

Last week, the market declined by more than 2 per cent, but SLS shares of Sơn La Sugar rose 1.4 per cent, and KTS of Kon Tum Sugar increased by 1.1 per cent. In contrast, CBS of Cao Bằng Sugar dropped by 3.1 per cent. 

Pioneering enterprises drive changes in different sectors of the economy

Pioneering enterprises are the core group that drives changes in different sectors of the economy now and in the future.

They will be champions of change, inspiring the pioneering spirit and promoting the pride of Vietnamese people in the path of bringing “Made by Vietnam” products to the international market, said Trần Duy Đông, deputy minister of Planning and Investment (MPI).

Deputy PM Đông made his statement at a business forum themed “Pioneering the Entrepreneurial Spirit, Fostering a Sustainable Vietnam,” co-hosted in Hà Nội on Friday by the MPI and the United States Agency for International Development (USAID) on the occasion of Việt Nam’s Entrepreneur Day (October 13).

The event, with the participation of more than 150 delegates, aimed to help Vietnamese enterprises, including SMEs, to compete in international markets and strengthen the Vietnamese economy towards inclusive and sustainable development.

The event also acknowledged the joint efforts by MPI and USAID to promote “Made by Vietnam” products, improve competitiveness, and promote business sustainability. The result of these efforts will inspire the business community to promote innovation and self-reliance and create spillover effects for the economy.

The organising committee awarded a Memorandum of Cooperation Agreement of the Department of Enterprise Development, the Ministry of Planning and Investment, and the USAID Improving Private Sector Competitiveness project with representatives of 22 pioneering enterprises. In addition, 10 businesses were also awarded for their ESG (Environment-Society-Governance) initiatives in Việt Nam in 2023.

As an advisory agency on socio-economic development strategies, the Ministry of Planning and Investment (MPI) plays a crucial role in providing guidance and recommendations to the Government and the Prime Minister. By actively and proactively advising on mechanisms and policies, the MPI aims to promote and support businesses in various ways, said Đông.

Delivering a speech at the event, Director of USAID/Vietnam Mission, Aler Grubbs, said USAID is committed to improving Việt Nam’s economic growth and competitiveness. Their joint efforts with MPI to accelerate corporate sustainability and the adoption of ESG practices will help companies in Việt Nam improve competitiveness, achieve long-term growth, rise to international standards, and facilitate entering and moving up in global value chains, which ultimately supports Việt Nam’s prosperous and sustainable development.

To compete in the global economy, Việt Nam must adapt to the new standards and move towards sustainability and inclusiveness. Over the last two years, USAID’s IPSC project has collaborated with MPI to support pioneering enterprises in adopting ESG standards.

More than 600 pioneering enterprises submitted applications to receive technical assistance, of which 22 were selected to receive a support package valued at US$150,000, depending on the size, needs, capacity, and commitment of each enterprise. The support will focus on developing business strategies, penetrating target markets, promoting Vietnamese products, and accelerating enterprises’ digital transformation.

MPI and USAID launched the 2003 Vietnam ESG Initiative in November 2022 to promote the adoption of ESG standards. The ESG Initiative attracted almost 150 applications from enterprises, cooperatives, and household businesses.

The top 10 finalists with the best initiatives were selected and provided with one-on-one intensive capacity building to improve their understanding and adoption of ESG practices and other sustainable business models, helping them develop their ESG action plans.

The top three winners announced at the event on Friday will receive in-depth consultation and technical support valued up to VNĐ2 billion to pilot and scale up their sustainable business practices. 

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