Apartment prices in Hà Nội and HCM City, the two largest cities in Việt Nam, continue to rise due to high demand and limited supply.

A recent report by the Ministry of Construction revealed that the primary market in both cities has seen significant increases in price, with the most sought-after apartments priced between VNĐ2-4 billion.

Hà Nội has witnessed an average price increase of nearly 7 per cent over the previous quarter and 14 per cent from a year ago, reaching nearly VNĐ51 million per square metre.

The secondary market has also experienced price increases, with almost all districts reporting an increase compared to the previous quarter.

HCM City has also seen a 3 per cent rise in secondary market prices compared to the previous quarter, reaching VNĐ45 million per square metre.

Several market researchers have also found that apartment prices have continued to rise despite improvements in supply.

A Savills report showed that primary apartment prices in Hà Nội have increased for 19 consecutive quarters, rising by 77 per cent in the third quarter compared to the first quarter of 2019.

In the third quarter, the average apartment price in Hà Nội reached VNĐ52 million per square metre, up 13 per cent year-on-year.

Both cities have seen improvements in supply compared to the previous quarter, but it still falls short of meeting the high demand, said the ministry.

The ministry said it would review and resolve real estate projects facing obstacles.

It will also simplify procedures for project planning, evaluation, and approval, reducing the required time for these processes. 

Mobile apps becoming key tool for businesses

All kinds of businesses ranging from app developers to small traders are using mobile apps to develop their business since they offer multiple functions and solutions such as entertainment, online shopping, banking, and healthcare.

The apps have become tools for businesses to easily and conveniently approach customers, optimise operations and develop their brands and competitiveness.

Global data and business intelligence platform Statista reported that by 2025 the world mobile application market would be worth US$613 billion.

All companies want to get a piece of mobile advertising pie, it said.

But there are also other ways to monetise mobile apps besides advertising, it pointed out, the most popular being paid installs and in-app purchases.

In July this year 3 per cent of apps worldwide were monetised through paid installs, and 4 per cent through in-app purchases.

Advertising continued to lead by a large margin, with 35 per cent of app-developing companies relying on it, it reported.

The need to view advertising may be seen by users as a more tolerable alternative than the requirement to pay.

This greatly simplifies the task of attracting customers and reduces marketing costs per installation.

At the same time, advertising income could well cover the company’s financial needs and bring tangible profits.

In an interview with Việt Nam News, Valentina Petrova, head of in-app partnerships, Asia, Yandex, said the mobile app market is growing in Việt Nam, demonstrated by an impressive revenue of $982.1 million in 2023.

“Thanks to the high rate of smartphone and internet usage in Việt Nam, mobile applications have now become an important part of people's lives here.”

The majority of app users in Việt Nam are quite young and tech-savvy with more than 60 per cent of respondents aged under 30 saying they are willing to try new technologies, she said.

“This makes Việt Nam an attractive mobile application market.

“Việt Nam is a promising market for advertisers.”

A report from Rakuten Viber said Vietnamese spend 2.32 hours a day on social media and messaging apps, one minute more than the average global user, indicating that approaching customers through apps is an effective way for companies and small traders.

“Local businesses can reach their audiences through messaging as 73 per cent of Vietnamese customers also prefer to interact with brands through chat,” Viber said.

Its Viber for Business solution is used by more than 20,000 brands world-wide, it said.

Viber for Business offers advertising solutions like native ads, branded stickers and lenses, messaging solutions including business messages and chatbots, and forthcoming business calls and an OTP solution.

In another development, Viber recorded a growing interest in local brand-user interactions in the first half of 2023.

Average daily ad impressions reached 6.4 million with Vietnamese brands using ads to enhance their visibility and attract new users.

There is a 63 per cent year-on-year growth in delivered business messages, with brands increasingly using this tool to send personal 1-2-1 messages to their existing clientele base who gave consent to receive brand notifications, Viber added. 

ICT giant CMC sees profit exceed 40 per cent of plan for H1

CMC Corporation, the second largest Information and communications (ICT) group in Việt Nam, announced 6-month revenue at VNĐ3.9 trillion (US$158.6 million), completing 90 per cent of the plan set out for H1.

Pre-tax profit reached VNĐ245 billion, completing 140 per cent of H1's plan.

CMC said that these were positive results in the context that Việt Nam's economic situation was facing many difficulties due to the economic recession and inflation problems.

On the stock market, CMC stock, coded CMG, is priced at VNĐ47,700 per share, an increase of more than 19 per cent compared to the last trading session last year (December 31, 2022).

In 2023, CMC targets revenue of VNĐ10.2 trillion and pre-tax profit of VNĐ484.6 billion, an increase of 22 per cent and 21 per cent respectively compared to the previous year's results. 

Bad debt ratio of banking system surges to 3.56 per cent

The bad debt ratio of the banking system skyrocketed from 2 per cent at the beginning of this year to 3.56 per cent, or more than VNĐ440 trillion, at the end of July 2023, according to the latest data from the State Bank of Vietnam (SBV).

Including bad debts that commercial banks sold to the Vietnam Asset Management Company (VAMC) and have not yet been recovered, the bad debt ratio rose to 6.16 per cent.

This bad debt ratio includes the debts of five banks: SCB, Dong A Bank, CBBank, OceanBank, and GPBank, which are under the SBV’s special control. Excluding these five banks, the bad debt ratio stood at 1.92 per cent.

SBV’s Governor Nguyễn Thị Hồng stated that as of September 21, 2023, the outstanding loans of the banking system totalled more than VNĐ12.62 quadrillion, an increase of 5.91 per cent compared to the end of 2022. Notably, the bad debt ratio in the real estate sector rose from 1.8 per cent in July 2022 to 2.58 per cent in July 2023.

The credit quality of many banks has shown signs of deterioration. Some banks listed on the stock exchange, such as NCB, ABBank, BVBank, VPBank, VietBank, OCB, and PGBank, had bad debt ratios exceeding 3 per cent by the end of June 2023.

Experts predict that the credit quality of the banking system may continue to face pressure. Some bank leaders believe the bad debt ratio will peak in the third quarter of this year and start to gradually decrease from the beginning of the next year.

The SBV has highlighted that the domestic and international economic situations are highly volatile due to the escalating Russia-Ukraine conflict, which disrupts the global supply chain. This leads to a rising risk of inflation and impacts the consumer spending of many economies. Việt Nam's major trading partners also face potential recession risks, especially following incidents involving several US banks.

At present, banks' management of bad debts encounters numerous challenges, especially with the rise in overdue debts and a sluggish real estate market, making the handling of real estate collateral even more challenging.

Furthermore, the SBV has noted that the debt trading market still presents many limitations. The legal framework related to restructuring credit institutions and managing bad debts remains incomplete, and there is a lack of favourable policies to encourage both domestic and foreign investors to participate in handling collateral and trading bad debt.

Specifically, the infrastructure of underperforming banks still lacks the resources and specific mechanisms for thorough management. Some State-owned groups and corporations do not have the resources required to manage losses and restructure non-bank credit institutions where they hold ownership or significant shares. 

Vietnam is third largest supplier of mango to RoK

Vietnam has become the third largest supplier of mango to the Republic of Korea (RoK), with its market share rising in the RoK’s total imports, according to the Import-Export Department of the Ministry of Industry and Trade (MoIT).

The Import-Export Department cited statistics from the Korea International Trade Association (KITA), saying the RoK imported 23,600 tonnes of mango worth US$95 million during the past nine months of the year, up 14.7% in volume and up 8.4% in value year-on-year.
  
The average price of imported mango reached US$4,026.7 per tonne, marking a drop of 5.4% compared to last year’s corresponding period.

Thailand and Peru represented the two major suppliers of the fruit to the RoK market with an export volume accounting for 80.3% of the RoK’s total imports.

Vietnam has become the third largest exporter of mango to the RoK, 1,700 tonnes worth US$7.2 million, up 19.6% in volume and up 18.1% in value year on year.

Industry insiders say with the Vietnamese fruit making up just 7.3% of the RoK’s mango imports, there remains plenty of room to boost exports to the market in the near future.

In addition, as the RoK is shifting its focus to tropical fruits, there are bright prospects ahead for Vietnamese mango and passion fruit in the market moving forward.

Time to seize opportunity for FIE growth in Vietnam

At last week’s conference on foreign-invested enterprises (FIEs) in Hanoi, a number of associations and businesses claimed that the approval process for investment initiatives was too complicated, hindering project progress and affecting the country’s competitiveness.

John Rockhold, chairman of the American Chamber of Commerce (AmCham) in Hanoi said, “Vietnam should focus on such priorities as removing bottlenecks in business; addressing energy development; ensuring access in the health industry; unlocking the digital economy; upgrading from frontier to emerging market status; and promoting sustainable investment and supply chain integration.”

“With the recent relationship upgrade, this is a critical time and wonderful opportunity to work on how to also upgrade the policy framework and economic environment to attract new players and help current investors and businesses grow,” he added.

Rockhold pointed out some ways to improve the business climate overall and appreciated Vietnam’s efforts to streamline administrative procedures.

“Our members – like most businesses here today – face regular delays in approval procedures and time-consuming administrative burdens which hinder or stall their projects and impact Vietnam’s competitiveness,” he said.

AmCham, according to Rockhold, will continue to work with the government to identify and remove these bottlenecks and help work towards a regulatory environment that meets global standards.

“We encourage the government to clarify those elements of Vietnamese law that obstruct the efficient deployment of foreign investment and that any additional administrative burdens in draft regulations be carefully considered and avoided whenever possible,” he said.

Gaur Dattatreya, managing director of Bosch Global Software Technologies, highlighted the importance of a stable, predictable, and favourable business environment.

“We appreciate the government’s persistent endeavours in improving the local business environment; notably in streamlining the administrative procedure and removing regulatory hurdles,” he said.

“Nevertheless, the evolving nature of regulatory regimes in Vietnam, combined with overlapping jurisdictions among government ministries, can, unfortunately, result in a lack of transparency, uniformity, and consistency in government policies and decisions,” he added.

As a long-term investor, Bosch is looking forward to working with the Vietnamese government to identify and tackle those issues thoroughly, Dattatreya said.

David Whitehead, vice chairman of the Australian Chamber of Commerce in Vietnam, agreed that to create a favourable business environment, Vietnam should make overall adjustments to licensing procedures.

“Regulations on land use, tax incentives, and work permit issuance need to be clearly stipulated, eliminating unnecessary procedures and conditions. This will mobilise large-scale foreign direct investment (FDI) into Vietnam, especially in industries like semiconductors,” he said.

Amid a complex global situation, the Vietnamese economy is maintaining stability and growth. In January-September 20, the country drew $20.21 billion of registered FDI, up 7.7 per cent on-year, while $15.91 billion was disbursed, representing an on-year rise of 2.2 per cent.

Cumulatively as of the end of last month, 144 countries and territories had invested in Vietnam and pumped in over $455 billion, generating jobs for millions of workers, according to the Ministry of Planning and Investment (MPI).

Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc said that Vietnam had become the third-largest economy in ASEAN with a GDP of over $400 billion. “The business community appreciates the nation’s growth prospect, investment environment, and position. Many foreign economic groups believe that Vietnam has opportunities to become a key destination in global supply chains,” Ngoc said.

The cooperation and companion of FIEs with the government, ministries, relevant state management agencies, localities, and businesses are needed to realise opportunities. “Vietnamese authorities will continue accompanying enterprises to access markets, boost exports and local sales, reform administrative procedures, and improve the investment environment to draw in FDI,” she said.

Minister of Labour, Invalids, and Social Affairs Dao Ngoc Dung said the country would amend the decree on management and use of foreign human resources in Vietnam. Some new content has been set out, such as loosening conditions and criteria for experts, managers, and technical workers to enter Vietnam as much as possible.

“Work permits for CEOs, heads of departments, and divisions will be granted effortlessly and quickly. If they were granted previously, and then moved from an expert to a technical worker, there is no need to reissue. The time for submitting a statement of need is also being reduced from 30 to a maximum of 15 days, and most procedures are carried out online,” Dung said.

Deputy Minister of Natural Resources and Environment Le Minh Ngan highlighted some reforms to create better conditions for investors in leasing and using the land.

“For example, in the revised draft Land Law, when the land use term expires, investors can continue to use it in line with the planning purposes. This will reinforce the trust and confidence of investors to make long-term investments in the country,” Ngan said.

Nakajima Takeo, chief representative of the Japan External Trade Organization in Hanoi, said that Vietnam was an attractive destination for global FDI inflows.

“Vietnam has been Japan’s second-largest FDI destination for six consecutive years. Some economists predict that the economic year 2024 will continue to decline. However, I think that Vietnam will continue to grow strongly,” Takeo said.

Vietnam should focus on manufacturing and innovation to become more prosperous and deal with some difficult situations, Takeo said, and the IT industry will lead the development of the Vietnamese economy.

“We would like to cooperate more closely with the MPI and the Ministry of Industry and Trade to make stronger changes in education, healthcare, and finance, cutting legal barriers to create a stronger and more favourable framework for investors,” he added. “This is not an easy task for any country, but I believe Vietnam will become one of the most attractive countries in the digital space.”

Josh Williams, chief representative of the UK-based private multinational Swire Group in Vietnam, said Vietnam is among its priority markets in the region thanks to its impressive track record of economic development and government policies that support business and foreign investment in Vietnam, among other things.

“We appreciate the support for our business activities from the Vietnamese government in general. We are optimistic about Vietnam’s future development, and we are actively exploring opportunities to expand our investments in Vietnam in our core business lines. We look forward to receiving the government’s continuing support in the years ahead,” Williams said.

Earlier this year, Swire Group completed its acquisition of the Coca-Cola bottling subsidiary in Vietnam, significantly expanding Swire’s presence up and down the country.

Work starts on Tuyen Quang-Ha Giang Expressway project

Work has begun on phase one of an expressway connecting Tuyen Quang and Ha Giang provinces, reported the local media.

The Tuyen Quang-Ha Giang Expressway will form a corridor connecting the provinces in the Red River Delta and those in the northern upland region via the Noi Bai-Lao Cai, Tuyen Quang-Phu Tho, and Tuyen Quang-Ha Giang expressways.

Upon completion, this expressway will alleviate inter-regional traffic congestion, providing a direct route from Hanoi through Tuyen Quang Province to the Thanh Thuy international border gate in Ha Giang.

The first phase of the Tuyen Quang-Ha Giang Expressway spans 104.5 kilometers across Tuyen Quang and Ha Giang provinces, requiring an investment of VND6,800 billion. The Government will fund VND4,500 billion, with the remainder sourced from the local budget.

As of now, the transportation sector reports that 1,822 kilometers of expressway has been opened to traffic across the country. With the commencement of construction on five more expressway projects by the end of this year, Vietnam anticipates having 3,000 kilometers of expressway by 2025.

Manufacturers, exporters moan about barriers in applying for BIS certification

Iron, steel, and footwear manufacturers and exporters moaned about difficulties in applying for BIS certification.

For export to India, manufacturers need BIS certification (ISI) under the Foreign Manufacturers Certification Scheme (FMCS), or BIS registration (CRS) for certain products.

Recently, many Vietnamese iron, steel, and footwear manufacturing and exporting enterprises have reported difficulties in applying for a new license or extension of India's BIS certification. Some businesses have completed submitting required documents, but still have not received certification to continue exporting to this market.

The Office of the Ministry of Industry and Trade announced this yesterday afternoon. BIS Certification India or BIS Registration issued by the Bureau of Indian Standards (BIS) ensures the quality, safety and reliability of products in accordance with Indian Standards (IS). Local and foreign manufacturers must have the mandatory certification to have their products distributed and consumed in this country's market.

After receiving feedbacks from businesses, the Ministry of Industry and Trade of Vietnam has sent a note to the Ministry of Industry and Trade of India, requesting to quickly resolve BIS certification for Vietnamese businesses to avoid disruptions in the supply chain of goods, affecting bilateral trade between the two countries.

The Ministry of Industry and Trade of Vietnam has also directed the Vietnam Trade Office in India to work with the Bureau of Indian Standards to solve the problem. On October 16, the Ministry of Industry and Trade discussed with the Indian side the difficulties of Vietnamese enterprises when applying for BIS certification and proposed the Indian side to urgently remove barriers for Vietnamese businesses.

Moreover, representatives of the Asia-Africa Market Department also worked directly with the Commercial Counselor at the Indian Embassy in Vietnam on October 18, requesting the Indian Embassy to discuss with relevant agencies of India to solve difficulties for Vietnamese businesses.

According to the Asia-Africa Market Department, the Indian Trade Counselor in Vietnam replied that it has noticed this matter and will coordinate closely to promote the resolution of problems and difficulties for Vietnamese businesses.

The Indian Trade Counselor in Vietnam said that the list of items required to have BIS certification is increasingly expanding to include many goods such as chemicals, toys, tires, and synthetic fibers which are all items that Vietnam is exporting to India.

Businesses that are having problems with BIS certification should continue to contact the Asia-Africa Market Department so that the Ministry of Industry and Trade can compile a list of requests from the Indian side to handle problems.

Normally, BIS certificates are valid between 1-2 years. The renewal of the license may be considered for a period of less than one year and up to 5 years depending upon whether the annual license fee and advance minimum marking fee have been paid for, the Asia-Africa Market Department informed.

Korean airlines to launch Phu Quoc flights

Two South Korean airlines have planned to open flights to Phu Quoc Island in the southern province of Kien Giang by the year-end.

Korean Air has announced direct flights on the Seoul-Phu Quoc route from late November. Jin Air will start flights from Seoul to Phu Quoc on December 24.

Meanwhile, Jeju Air will resume the Seoul-Phu Quoc air route from October 29.

On Monday, a charter flight transporting 210 tourists from Kazakhstan’s Almaty landed at Phu Quoc.  

According to Bui Quoc Thai, director of the Kien Giang Department of Tourism, Phu Quoc is also expected to welcome a group of Russian travellers on October 24 and 25.

Thai said these are signs of the local tourism sector’s recovery amid a fall in visitor numbers.

Thai added that the province will focus on tourism promotion activities inside and outside the country and call on travel firms to build new and attractive tourism products.

So far this year, visitors to Phu Quoc have decreased by 40-50 percent on-year. This has been partially due to the high airfares.

140 foreign businesses to attend Food & Hotel Hanoi 2023

As many as 140 foreign exhibitors from more than 17 countries around the world are due to gather at the International Food & drinks, hotel, restaurant, bakery & foodservice equipment, supplies & services exhibition (Food & Hotel Hanoi 2023) which is slated to run from November 21 to 23, heard a press conference held in Hanoi on October 24.

On display across 12 booths will be a wide range of food products, modern equipment and services of exhibitors from the United States, Switzerland, Italy, Germany, Spain, Canada, Australia, Japan, the Republic of Korea, China, Singapore, Thailand, and many other Vietnamese brands.
  
Addressing the press briefing, BT Tee, general director of Informa Markets Vietnam, emphasised that the exhibition is anticipated to provide an ideal platform for local and foreign businesses in the culinary, restaurant, and catering industries to introduce their products, share experience, stay updated on the latest trends, and explore cooperation opportunities.

Through the event, Informa Markets will actively support foreign brands seeking to promote their products and further reach out to Vietnamese businesses and consumers, he said.

A number of contests, seminars, and business matching sessions will be held during the expo.

According to forecasts given by Statista, a German company specialising in market and consumer data, the Vietnamese food market is anticipated to reach US$96.47 billion this year, representing an increase of 9% compared to 2022.

Vietnam remains an attractive destination for FDI flows globally

Vietnam is viewed by international organisations as one of the most successful countries in attracting foreign direct investment (FDI) thanks to its streamlined investment environment and investment incentives, reported Dau Tu (Investment) newspaper.

In mid-October, Amkor Technology Inc, one of the world’s largest providers of outsourced semiconductor packaging, design, and test services, inaugurated the Amkor Technology Vietnam factory at Yen Phong II-C Industrial Park in Bac Ninh province after nearly two years of construction. The group poured US$530 million into the first phase of the project, whilst it has also committed to raising its capital investment to US$1.6 billion by 2035.
  
Susan Kim, executive vice chairman of Amkor Technology, said that the Bac Ninh project is part of the group’s wider strategic business plan as part of its operational network and sustainable development of the semiconductor field globally over the coming years.

The project is expected to facilitate the formation and development of the semiconductor ecosystem in the Vietnamese market, said Kim.

Alongside Amkor Technology, many other multinational corporations have been choosing Vietnam as a new investment destination. According to a recent survey released by the Japan External Trade Organisation (JETRO), the country is an attractive destination for global FDI. Takeo Nakajima, head of the JETRO Representative Office in Hanoi, pointed out that the Vietnamese market has been Japan’s second largest FDI destination over the past six consecutive years.

Statistics recently unveiled by the Ministry of Planning and Investment highlight that the country attracted US$20.2 billion in registered FDI over the past nine months, representing an annual rise of 7.7%. As of September, a total of 144 countries and territories had poured over US$455 billion into more than 38,300 projects nationwide.

“Currently, Vietnam has become the third largest economy in ASEAN, with its GDP hitting more than US$400 billion. Simultaneously, it is also evaluated by international organizations as one of the successful countries in FDI attraction,” said Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc.

Due to these positive gains, many international organisations have expressed great appreciation for the country’s economic development results and have upgraded its credit ratings.

David Whitehead, vice president of the Australia-Vietnam Chamber of Commerce (AusCham), expressed his belief that the Government would continue to implement solutions aimed at stabilising the macroeconomy, controlling inflation, and ensuring major economic balances, all of which would help to create a stable environment for business activities whilst turning the country into an attractive investment destination.
      
Foxconn that manufactures iPhones for Apple has committed US$300 million into a project in Bac Giang province
As part of efforts to create a conducive business environment, Whitehead suggested that the Government continue to revise policies regarding licensing procedures, land use, tax incentives, and work permit issuance, while simultaneously removing unnecessary procedures and regulations on business conditions. This will help the country to attract large-scale FDI capital, especially in new industries such as semiconductor and chip manufacturing, he said.

Meanwhile, Gaur Dattatreya, CEO of Bosch Global Software Technologies Co. Ltd., said that constant changes in policy introduction and management mechanisms, coupled with an overlap between the responsibility and authorisation of competent agencies, could result in a lack of transparency and consistency in terms of the Government’s policies and decisions.

During a meeting held alongside representatives of the FDI community in Hanoi on October 16, Prime Minister Pham Minh Chinh affirmed that the Government always seeks to protect the legal and legitimate rights and interests of investors in any case.

He offered assurances that the Government would always accompany businesses to overcome difficulties and take advantage of opportunities to maintain long-term and efficient operations locally on the basis on interest harmony and risk sharing.

He also insisted that the Government would not criminalise economic and civil relations, but instead handle any violations of the law to create a fair, healthy, and transparent production and business environment for all economic sectors to operate on an equal footing.

Vietnam will continue to create favourable conditions and build a safe, transparent, and highly competitive business and investment environment so that investors, including foreign investors, are able to feel secure to make a long-term investment in the Vietnamese market, said the PM.

Vietnam is third largest supplier of mango to RoK

Vietnam has become the third largest supplier of mango to the Republic of Korea (RoK), with its market share rising in the RoK’s total imports, according to the Import-Export Department of the Ministry of Industry and Trade (MoIT).

The Import-Export Department cited statistics from the Korea International Trade Association (KITA), saying the RoK imported 23,600 tonnes of mango worth US$95 million during the past nine months of the year, up 14.7% in volume and up 8.4% in value year-on-year.
  
The average price of imported mango reached US$4,026.7 per tonne, marking a drop of 5.4% compared to last year’s corresponding period.

Thailand and Peru represented the two major suppliers of the fruit to the RoK market with an export volume accounting for 80.3% of the RoK’s total imports.

Vietnam has become the third largest exporter of mango to the RoK, 1,700 tonnes worth US$7.2 million, up 19.6% in volume and up 18.1% in value year on year.

Industry insiders say with the Vietnamese fruit making up just 7.3% of the RoK’s mango imports, there remains plenty of room to boost exports to the market in the near future.

In addition, as the RoK is shifting its focus to tropical fruits, there are bright prospects ahead for Vietnamese mango and passion fruit in the market moving forward.

Quang Ninh targets 1 billion USD of FDI to industrial parks

The northern province of Quang Ninh has implemented a series of investment attraction solutions towards luring over 1 billion USD of foreign direct investment (FDI) to industrial parks and economic zones this year.

Attention has been paid to improving investment management and promotion efficiency; ensuring the rights and interests of investors; strengthening the leadership of Party committees at all levels and the management of authorities, and the engagement of political and social organisations in investment activities.

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

It has also concentrated on developing hi-tech and support industrial zones, specialised industrial parks, and industries in anticipation of the 4th industrial revolution.

So far this year, the local authorities have worked with over 100 delegations of foreign investors who come to explore investment opportunities, and seek to expand their investment in the locality, including big firms such as BP of the UK; JTA (Quatar); Jinko Solar and TCL of Hong Kong (China); Lite-On Technology; Tera and Neotek of Taiwan (China); Mitsubishi, Yaskawa Electric, Tamagawa Seiki, and Sojitz (Japan) and China's Pacific Construction Group Ltd (CPCG), and China First Highway Engineering Co., Ltd (CFHEC).

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

In the first nine months of 2023, the provincial authorities granted new investment licenses to 19 FDI projects worth 826.54 million USD; and approved capital addition for 36 others, lifting total FDI capital poured into the locality to 853.93 million USD, equivalent to 71.2% of the yearly plan.

Quang Ninh now ranks ninth among localities nationwide in attracting FDI.

HCM City seeks stronger cooperation with Japanese firms

Ho Chi Minh City wants to enhance cooperation with Japanese businesses by optimising potential and advantages, thus benefiting both sides, Vice Chairman of the municipal People’s Committee Duong Anh Duc said on October 24.

At a reception for a visiting delegation of Japanese enterprises, Duc stressed that HCM City always wishes to be a trusted destination for Japanese businesses and it is interested in fostering relations with Japanese localities and partners through delegation exchanges, agreements, and projects.

He described the trip by the Japanese delegation as joint efforts in strengthening the Vietnam-Japan cooperation and friendship intensively and effectively.

HCM City needs to learn experience of foreign partners, especially traditional ones like Japan, and wants to cooperate with and receive investments from them during its development, he said.

The official pledged that the city will coordinate and create favourable conditions for Japanese firms to run long-term business there, especially in such priority areas as high-tech, and knowledge-intensive and high value-added products and services.

Tran Van Minh, CEO of Hybrid Technologies - a Japanese-Vietnamese joint venture, who led the delegation, emphasised that Japanese enterprises always highly value the development potential of Vietnam, particularly HCM City.

The working trip, which is made on the occasion of the 50th anniversary of the bilateral diplomatic ties, aims to seek investment promotion opportunities for Japanese businesses that have never operated in the Southeast Asian nation, expand the operations of others.  

The 13 participating Japanese firms, specialising in real estate, hotel, education-training, software, digital transformation consultation, internet services, IT, and energy transition, called on local authorities to facilitate their investment and cooperation in the city.

Australia helps Vietnam upskill logistics workforce

An international forum on vocational education and training (VET) themed “Upskilling the Logistics Workforce and Promoting Industry Linkages in the Digital Era” took place in Hanoi on October 24 as part of activities in the Vietnam - Australia Human Resource Development Programme (Aus4Skills).

The event was jointly organised by the Ministry of Labour, Invalids and Social Affairs (MoLISA)’s General Department of Vocational  Training and the Australian Embassy in Vietnam.

Speaking at the event, Deputy Minister of Labour, Invalids and Social Affairs Le Tan Dung affirmed logistics is a crucial service sector in the national economy as it supports economic connectivity and development.

 Deputy Minister of Labour, Invalids and Social Affairs Le Tan Dung speaks at the forum (Photo: VNA)
According to Dung, with an average growth of 14-16% per year, logistics is one of the fastest-growing and most stable sectors in Vietnam. The country has set a target to increase the contribution of the logistics industry to gross domestic product (GDP) to 8 - 10% by 2025.

To realise this objective, the development of human resources is of utmost importance, he stressed.

The official recognised the cooperation and support provided by the Australian government for Vietnam in developing human resources, especially in building policies related to vocational education.

Australian Ambassador Andrew Goledzinoski underlined the necessity to develop logistics workforce skills for countries with large supply systems like Vietnam, affirming that Australia will help Vietnam with the vocational training necessary to make it happen.

The collaboration between the two governments will ensure that Vietnam has an effective and sustainable vocational education system to equip its workforce with the knowledge and skills needed for the future, he went on.

At the forum, participants shared models and experiences to ensure that learners are equipped with the necessary skills to adapt to the digital age.

They proposed policies to improve the quality of vocational education in Vietnam, and also discussed challenges to the development of the logistics industry in the country.

Aus4Skills aims to support Vietnam's socioeconomic development and stability through implementing Australia Awards Scholarships (AAS) and alumni programmes, and improving vocational establishment governance and performance standards. These moves will help strengthen Vietnam's VET sector, and support the development of a capable public service, including advancing women in leadership, through the Vietnam Australia Centre (VAC).

Over 110 domestic, foreign firms to join Food & Hotel Hanoi 2023

More than 110 exhibitors from 13 countries and territories will gather at the second International Food & Hotel Hanoi 2023 exhibition, which includes drink, restaurant, bakery and food service equipment, supplies & services. The event is slated to run from November 21 to 23, according to the event’s organisers.

A range of activities will be held within the exhibition, including the Hanoi Salon Culinaire, the Vietnam Barista Competition, and the Vietnam Aromaster Championship.

Speaking at a press briefing on October 24, BT Tee, General Director of Informa Markets Vietnam said that the exhibition is expected to promote business opportunities, connecting foreign manufacturers and exporters with importers, distributors and retailers in Vietnam.

Through the event, Informa Markets will actively support foreign brands seeking to reach out to Vietnamese businesses and consumers, he said.

According to forecasts given by Statista, a German online platform specialising in providing market and consumer data, the Vietnamese food market is to reach 96.47 billion USD this year, representing an increase of 9% compared to 2022.

Vietnam's GDP growth to rebound to 6.5% in 2024: VinaCapital

The investment fund VinaCapital expects Vietnam’s GDP growth to rebound to 6.5% next year, driven by a recovery in exports, which will in turn be closely accompanied by a rebound in the local manufacturing sector output.

Michael Kokalari, Chief Economist at VinaCapital, wrote in his freshly released note that the optimism for a manufacturing-driven recovery of Vietnam’s GDP growth next year stems from an analysis of the cause of the sector’s problem in 2023, which was an over-accumulation of inventories by US retailers and other consumer firms in 2022. Inventories surged by more than 20% year on year in late 2022, because firms over-ordered during the COVID-19 supply-chain disruption of 2021, and because expectations of a post-COVID spending boom did not materialize as retailers and other consumer companies had expected.

Consequently, US firms have been working through this excess inventory throughout 2023 with inventory depletion at the fastest pace in almost ten years; this has been the main factor weighing on Vietnam’s exports and manufacturing output this year. However, a series of economic data indicates that this phenomenon is now coming to an end, which is the basis for the belief that orders and output from factories in Vietnam are now recovering.

Additionally, the expert also mentioned that Vietnam's growth could potentially benefit from an increase in foreign direct investment (FDI) inflows, driven by the elevation of the Vietnam-US diplomatic relations to a comprehensive strategic partnership. The partnership is expected to prompt an enormous inflow of new investment from the US into Vietnam (the US currently only represents around 3% of Vietnam’s FDI inflows).

RoK – Hai Phong’s biggest foreign investor

The Republic of Korea (RoK) ranks first among the 42 nations and territories pouring capital into the northern port city of Hai Phong, with 105 projects totaling 11 billion USD, according to the Hai Phong Economic Zone Authority.

A highlight in Hai Phong’s attraction for Korean investment in the first 10 months of this year is that on June 26, municipal authorities handed over a licence to LG Innotek Vietnam Hai Phong Co., Ltd. to add 1 billion USD to its project in the city, raising its total investment to over 2.05 billion USD.

On September 29, an investment registration certificate was handed over to Ecovance high-tech biodegradable material factory project worth 500 million USD by SK – the second largest corporation in the RoK.

Secretary of the municipal Party Committee Le Tien Chau affirmed that Hai Phong is committed to always accompanying and creating good conditions for investors to implement their projects.

In the coming time, the city will continue to improve its business and investment environment, and focus on developing infrastructure, especially regionally linked transportation infrastructure projects, and concertedly implement solutions to improve the efficiency of attracting high-quality workforce, and ensure labour resources for investors when they implement projects here, Chau added.

Head of the Hai Phong Economic Zone Authority (HEZA) Le Trung Kien said it will continue attracting investment in high and green technologies and in participating in the global production chain and applying the circular economic model.

Durian export brings home 1.63 billion USD in 9 months

The value of Vietnam’s durian export in the first nine months of 2023 reached 1.63 billion USD, 14 times higher than the figure of same period last year, according to statistic of the General Department of Customs.

In the reviewed period, fruit and vegetable exports totalled 4.21 billion USD, a surge of 72.5% equivalent to 1.77 billion USD year on year.

Durian has surpassed jackfruit, dragon fruit, watermelon, banana and lychee to become the biggest foreign currency earner in Vietnam’s fruit and vegetable industry, accounting for 38.7% of the industry's total export value.

China is the largest importer of Vietnam’s fruit and vegetables with a turnover hitting 2.75 billion USD, skyrocketing 160% compared to the same period last year.

Currently, Vietnamese durian is exported mainly to China. Vietnam has 422 growing areas and 153 packaging facilities eligible to export the fruit to China.

Sixty four other growing areas and 15 packaging facilities are completing procedures to have Chinese authorities to grant codes for the export. In addition, more than 600 growing area codes and 50 packaging facilities will apply for codes for the export of durian to China.

Local business exports 32,000 Banh Chung cakes to the US

Ba Ba Hoi food processing cooperative of Tam Ky City in the central province of Quang Nam has inked a deal with a business partner to export 32,000 Banh Chung (square glutinous rice) cakes to the US market.

On October 24 the 10-tonne shipment was transported to Ho Chi Minh City to complete customs clearance procedures before being exported to the US by sea.
  
As scheduled the cakes will hit supermarket shelves in the US in December in order to serve Vietnamese overseas community in the lead up to the New Year holiday.

The cooperative has applied modern technology to its food production and processing operations to ensure their products meet food safety and hygiene regulations by the US Food and Drug Administration, said Huynh Thi Thu Thuy, head of the cooperative.  

Ba Ba Hoi‘s Chung cake is favoured among overseas Vietnamese thanks to its nice appearance coupled with its good quality, she added.

Chung cake is a traditional local dish that is an integral part of celebrations for the Vietnamese Lunar New Year. It is made from glutinous rice, pork meat, and green bean paste and is wrapped in a square of “Dong” leaves, giving the rice a green colour after being boiled for 10 hours.

Every Vietnamese family must have at least a Chung cake among their offerings to be placed on the ancestors’ altars during the New Year holiday.

HCM City to host international Textile and Garment Industry Exhibition 2023

More than 200 Vietnamese and foreign businesses from 15 countries and territories worldwide are expected to participate in the 21st Vietnam International Textile and Garment Industry Exhibition (VTG) 2023 in Ho Chi Minh City from October 25 to 28, according to details given by the organisers.

The four-day event, one of the leading exhibitions throughout Southeast Asia in the textile and garment industry, will showcase a wide range of products in textile machinery, apparel, fibers, filaments, yarn fabrics, footwear machinery, and materials.

VTG is held by Vinexad National Trade Fair & Advertising J.S.C (VINEXAD) under the Ministry of Industry and Trade in co-ordination with Yorkers Trade and Marketing Service Co. Ltd.

Judy Wang, president of Yorkers Trade and Marketing Service Co. Ltd, said the exhibition would help local textile and garment manufacturers to gain access to advanced technologies and the latest market information, as well as connecting with leading enterprises globally.

A series of VTEX-TECH seminars will be held on October 26 and 27 to look at the latest trends and changes occurring in the Vietnamese textile and garment industry.

Furthermore, the Vietnam International Dyeing & Chemical Industry Exhibition (Vietnam DYECHEM) will also take place concurrently with VTG 2023 in Ho Chi Minh City from October 25 to 28.

Vietnam DYECHEM is an exclusively professional and international exhibition which showcases a variety of high-end dyestuff and specialty chemicals in Vietnam. It is the one and only meeting hub in the country for the dyestuff and chemical industry to get connected.

Vietnam-US Comprehensive Strategic Partnership to serve husbandry sector well

The upgrade of Vietnam-US relations to a Comprehensive Strategic Partnership will usher in a new era of possibilities, including improved access to cheap feedstock for Vietnam's husbandry sector.

Vietnam has never been self-sufficient in terms of feedstock. The country every year has to import 70% of its husbandry sector's demand, mostly from Brazil, Argentina, and India. The import dependency has put farmers at the mercy of global price volatility for quite a while.
  
But the price vulnerability will soon be no more. After US President Joe Biden's visit to Vietnam, the Vietnamese Ministry of Agriculture and Rural Development and the US Grains Council had a meeting to discuss promoting bilateral trade in agriculture. 

The meeting has paved the way for potential future agreements, which will facilitate the import of American corn to Vietnam. With another source of corn unlocked, Vietnamese animal feed producers will be able to expand their pool of suppliers and get more competitive offers. 

"Animal feed factories in Vietnam will benefit greatly from the Comprehensive Strategic Partnership thanks to the improved access to the US's raw materials," said Pham Quang Anh, director of the Vietnam Commodity News Center.

According to the Department of Livestock Production, Vietnam imported 8.2 million tonnes of feedstock in the first six months of 2023, worth US$3.4 billion. The US remained Vietnam's second-largest exporter of soybeans but was never among the major exports of corn to the country.  

There are 269 factories of animal feed in Vietnam to date, with a total capacity of 43.2 million tonnes per year. However, the factories are running under capacity, producing just 20.8 million tonnes annually.

Nguyen Xuan Duong, chairman of the Animal Husbandry Association of Vietnam, cited supply-demand imbalance as the main cause behind the factories not meeting their designed output.

He called on the Government to not incentivise the construction of new factories until 2030 to avoid overcapacity. He said if such factories are built, they should be located in areas where the potential of livestock farming has not been fully unlocked. 

He also called for measures to encourage the use of alternative materials, such as seaweeds, in animal feed production to be less reliant on corn and soybean imports. He also suggested a rise in tariffs on several types of imported feedstock, such as mineral powder, to foster self-sufficiency.

HCM City to develop advanced technology for agricultural production

HCM City plans to develop sustainable urban agricultural production with high technology to be applied in cultivation on at least 70 per cent of its agricultural land by 2030.

According to the city's Department of Agriculture and Rural Development, the agricultural land area in the city keeps decreasing every year.

In 2010-2015, 700 hectares of agricultural land was lost each year, while in the 2015-2020 period, it lost 1,000 ha every year.

However, the good news is that the production value per hectare of agricultural land in HCM City has been increasing steadily. 

In 2015, one hectare of agricultural land generated VNĐ375 million (US$15,300) each year while in the period of 2015-2020 one hectare of agriculture land brought VNĐ500 million of revenue.

The department strives for revenue of VNĐ900 million to VNĐ1 billion per hectare by 2030.

Phạm Đình Dũng, head of the HCM City Hi-tech Agricultural Zone Management Board, said developing agriculture with high technology would be the major trend of the agriculture sector.

HCM City set up the country’s first high-technology agricultural zone in 2004 in the suburban district of Củ Chi and a biotechnology centre in District 12, both of which are highly efficient.

Dũng said the city would develop agricultural production with high technology, accompanied by an eco-tourism space, thereby enhancing value and contributing to economic and social development.

The HCM City Hi-tech Agricultural Zone has been expanding its production scale in farming, animal husbandry and aquaculture.

In recent years, the city has focused on building facilities and establishing pioneering units in the field of smart agriculture.

Some of these facilities are the High-tech Agricultural Park, the Biotechnology Centre and the Demonstration and Experimentation of High-Tech Dairy Farming.

The municipal People’s Committee also approved a programme to develop plant and animal varieties and high-tech agriculture for 2020-2030, with a focus on research and development.

In addition, experts urge a clear and adequate legal framework for the management and development of high-tech agriculture, more investment in human resources training and incentives for R&D and public-private partnership in the field. 

Int’l garment-textile fairs open in HCM City

A series of international trade fairs in the garment-textile and footwear sectors kicked off at the Saigon Exhibition and Convention Centre in Ho Chi Minh City on October 25.

The events include the 21st Vietnam International Textile & Garment Industry Exhibition (VTG-2023), the 21st Vietnam International Textile Fabrics and Accessories Exhibition 2023 (VITATEX 2023), the Vietnam International Dyeing & Chemical Industry Exhibition 2023 (DYECHEM 2023) and the Vietnam International Footwear Machinery and Material Exhibition (VFM 2023).

The events are jointly held by the Vietnam National Trade Fair & Advertising Company (VINEXAD), the Yorkers Exhibition Service Vietnam, among others, with support of the Vietnam Cotton and Spinning Association (VCOSA), the Vietnam Association of Mechanical Industry (VAMI), the Shoes and Leather Association of Ho Chi Minh City (SLA) and the Ho Chi Minh City Association of Garments, Textiles, Embroidery and Knitting (Agtek).

The series of fairs gather 830 booths of more than 500 exhibitors from 12 countries and territories, including India, Bangladesh, Taiwan (China), the Republic of Korea, Japan, Singapore, Thailand, Switzerland and Italy. The theme of the fairs focuses on factory digitalisation, aiming to promote modernisation and digitalisation of Vietnam's textile and garment industry.

Cutting edge technologies, products and creative solutions in garment and textile, and footwear will be presented during the events.

Judy Wang, General Director of Yorkers Exhibition Service Vietnam, said that the series of events are prestigious destination for enterprises to seek and optimise digital appliances to improve overall efficiency and reduce costs, turning crisis into opportunities for growth.

Running until October 28, several seminars and conferences on sustainable garment and textile supply chain, green transition and digitalisation in the sector will also be held within the framework of the events.

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