The Đà Nẵng-Seoul Start-up Innovation Centre officially debuted in the central city’s Việt Nam Innovation Hub, promoting start-up projects of the city worldwide through training by the Korean Global Startup Immigration Centre and DCAMP – the largest start-up hub in Korea backed by financial institutions.

The introduction of the Đà Nẵng Start-up Innovation Centre, a collaboration signed between the city’s Department of Industry and Trade and the Việt Nam Innovation Network in Korea (VINK), will offer working spaces, partner links, support policies, and legal assistance for start-up entrepreneurs from Đà Nẵng.

Chairman of VINK, Nguyễn Quang Phước, stated that the network, which gathers Vietnamese experts and intellectuals living in Korea to promote co-operation between the two countries based on innovative exchanges from 2021, will aid start-up initiatives and projects in Đà Nẵng and Việt Nam by connecting them with investment funds and businesses in Korea.

It will assist local start-up projects in accessing programmes, policies, and partners in Korea, launching innovative initiatives.

Vice-chairman of the city’s people’s committee, Trần Chí Cường, said the annual Đà Nẵng Startup and Innovation Festival (SURF) is an opportunity for businesses and young individuals in the city to develop their initiatives and innovations, aiming to make Đà Nẵng a key innovation centre in Southeast Asia and a smart, liveable urban area in Asia from 2030-45.

The city had earlier begun supporting start-up projects for emerging and start-up ecosystems in the city, he noted at the opening ceremony of SURF 2023 on September 29.

A total fund of US$200,000 has been allocated to 27 innovative start-ups and 160 start-up models, of which 61 have been operational since 2020.

Đà Nẵng also showcased 10 potential start-up projects and five scientific and technological solutions at SURF 2023, connecting them with investment funds and investors for sustained co-operation.

Acronics Solutions Company has developed a locally-made cybersecurity firewall, V-pro, over a five-year process, incorporating five solutions for faster and more efficient protection of servers.

A group of students from the construction faculty of Đà Nẵng’s Đông Á University have been developing low-carbon and environmentally-friendly solutions for construction.

They have produced concrete using sea sand sediment instead of the over-exploited river sand in central Việt Nam and have made unbaked bricks from low-value plastic bottles.

Dương Trí Hoàng, 22, stated that each unbaked brick produced helps reduce 900 grams of plastic (about 200 plastic bottles) released into the environment. This also results in a 30 per cent reduction in both cost and emissions compared to burnt bricks.

Đặng Văn Dương, a member of the research team, explained that the concrete will comprise 30 per cent of sea sand and 20 per cent of river sand, reducing the cost of a cubic metre of concrete by 50 per cent.

Dương mentioned that the group is finalising procedures for intellectual property rights for the concrete and brick products for official use.

A range of skills practice solutions in medicine and healthcare education, digital trade transactions, global fashion chain digital management platforms, and VR360 ecological systems were introduced at SURF 2023.

In recent years, the Sông Hàn Incubator introduced the first-ever tourism start-up programme, initiated by the deputy head of the Đà Nẵng Entrepreneurship Support Co (DNES), Lý Đình Quân.

Quân emphasised that the programme aims to connect businesses operating in travel, hospitality, transport, craft villages, and information technology, thereby creating a value chain, reducing travel costs, and enhancing the quality and competitiveness of tourism enterprises in Việt Nam.

At SURF 2023, the city’s industry and trade department signed a co-operation agreement with the Institute for Scientific Technology and Innovations, focusing on transforming Đà Nẵng into an innovation city as part of UNESCO’s Creative Cities Network Project.

The department and the city’s Women’s Union also committed to promoting and supporting innovations and start-up projects among women.

Budget revenue from taxes hits 76% of yearly estimate

The tax sector collected more than 1,048 trillion VND (nearly 43 billion USD) for the State budget in the first nine months of 2023, equivalent to 76.3% of the estimate for the whole year and 94.9% compared to the figure in the same period last year, the General Department of Taxation reported on October 4.

Out of the 20 types of receipts and taxes, 13 achieved a relatively high level of collection (over 76%). Of which, revenue from the State-owned enterprise sector reached 80% while those from personal income tax and fees and charges were estimated at 78.4% and 82.4%, respectively.

Twenty-five out of the country’s 63 provinces and centrally-run cities have completed over 76% of their yearly estimates, the agency said.

To continue to support people and businesses to overcome difficulties and accelerate economic recovery in 2023, the National Assembly and the Government have issued policies to reduce, exempt and extend taxes for them with a total amount of 148.3 trillion VND.

General Director of the General Department of Taxation Mai Xuan Thanh said that it is expected that budget collection will still face many difficulties in the last quarter of the year, thus the tax sector will strive to fulfill the assigned targets.

It will synchronously and drastically implement solutions to strengthen tax revenue management and prevent tax losses while expediting value-added tax refunds for businesses in line with legal regulations, he said.

Domestic investors open nearly 173,000 new securities accounts in September

Domestic investors registered 172,695 new securities trading accounts in September, marking the second-highest number in over a year, according to the Vietnam Securities Depository and Clearing Corporation (VSDC).

In the month, domestic organisations opened 90 new accounts, VSDC said.

As of September, the total number of accounts of domestic individual investors surpassed 7.76 million, equivalent to more than 8% of the population.

In September, foreign individual investors and organisations registered 225 and 28 new accounts, respectively, lifting the total number of foreign accounts to 42,711.

The Vietnamese stock market has recorded a bullish third quarter, with consecutive billion–USD trading sessions.

The average trading value in September increased by 11.2% compared to the previous month, and up 85.4% over the same period last year to 28.62 trillion VND per session.

The average trading value on the Ho Chi Minh Stock Exchange (HoSE) and the Hanoi Stock Exchange (HNX) reached 25.13 trillion VND and 2.38 trillion VND per session in September, up 12.7% and 9.0% month-on-month, respectively. Meanwhile, the value of each session on the Unlisted Public Company Market (UPCoM) reached 1.10 trillion VND, down 11.3%.

The stock market continued to lure capital inflows in the context that interest rates are declining rapidly, and other investment channels such as real estate and corporate bonds remain subdued.

HoSE is exerting every effort to put a trading system developed by the Korea Exchange (KRX) into operation at the end of 2023 in a bid to ensure the smooth operation of the market continuously and effectively.

Signed by HoSE and KRX in 2012, the project is expected to bring new products, trading, and payment solutions to the Vietnamese stock market, such as T 0 settlement, short selling, and option contracts. This will create a premise to solve the bottlenecks and move towards upgrading the market from frontier to emerging.

Binh Phuoc reports nine-month trade surplus of nearly 1 billion USD

The southern province of Binh Phuoc enjoyed a trade surplus of nearly 1 billion USD in the first nine months of this year thanks to the recovery of export orders, reported the provincial Statistics Office.

According to the office, in the January-September period, the province exported nearly 2.95 billion USD worth of products, up 4.6% year on year, and completing 71% of the target for the whole year. Meanwhile, its imports were 2 billion USD, a rise of 34.9% over the same period last year.

In September alone, Binh Phuoc’s export revenue reached 409 million USD, while exports were 290 million USD.

A survey by the office, an increase was seen in the number of new export orders that local businesses received in the third quarter of 2023 compared to the second quarter.

According to the survey, 41.1% of businesses reported a rise in order numbers, while 14.7% said that they suffered a decrease and 44.1% of businesses showed unchanged numbers compared to the previous quarter.

In the fourth quarter, 37.8% expected a rise in export orders, while 8.1% predicted a decline, and 38.3% held that the order numbers will remain stable.

HNX raises nearly 792.79 million USD from G-bonds in September

The State Treasury mobilised 19.37 trillion VND (792.79 million USD) via 18 auctions of G-bonds on the Hanoi Stock Exchange (HNX) in September.

This marked a fall of 11.07% compared with the previous month.

The coupon rates of five-year term bonds slightly decreased in the transactions in the month. Meanwhile, those of 10-year, 15-year and 30-year bonds remained stable in recent two months.

Specifically, the average yield rates of the five-year, 10-year, 15-year and 30-year bonds were 1.63%, 2.36%, 2.59% and 3.05%, respectively.

On the secondary market, the total value of G-bonds sold by the outright method topped 109.67 trillion VND, while trading value of repurchase agreements (repos) was nearly 31.63 trillion VND in September.

In the month, foreign investors’ purchases totalled 3.46 trillion VND, declining 10.26% from August.

As of September 30, the total value of listed G-bonds on HNX was estimated at more than 1.9 quadrillion VND, up 12.63% as compared to the end of 2022.

VietShrimp 2024 slated for March in Ca Mau

The VietShrimp Aquaculture International Fair 2024, themed “In company with shrimp farmers”, will take place in the southernmost province of Ca Mau from March 20-22, heard a local press conference held on October 4.

Co-hosted by the provincial People’s Committee, the Vietnam Fisheries Society (VINAFIS), the Vietnam Directorate of Fisheries and the Vietnam Fisheries magazine, the event is expected to feature about 250 stalls from over 150 exhibitors at home and abroad, and thematic seminars to continue bringing Vietnamese shrimps to new markets and affirm their brand on the global shrimp industry map.

VINAFIS Chairman Nguyen Viet Thang said  over the past two decades, the shrimp industry has played a crucial role in Vietnam's export of aquatic products to the world. Each year, the shrimp export turnover accounts for around 40-45% of the total seafood export, equivalent to 3.5-4 billion USD. The figure reached all-high over 4.3 billion USD last year.

So far, the Vietnamese shrimp has been exported to 100 countries, with Europe, the US, Japan, China and the Republic of Korea being the biggest importers. Vietnam has become the world's second largest shrimp supplier, with export turnover making up 13-14% of the total global shrimp export value.

According to the VINAFISH, the total shrimp farming area in Vietnam reached 747,000ha last year, yielding over 1 million tonnes in output, up 8.5% annually. The shrimp export revenue went up 11.2% year-on-year to 4.3 billion USD. This year, the shrimp farming area is expected to increase to 750,000ha, with the Mekong Delta accounting for 90%. The production goal is set at over 1 million tonnes while the export revenue is to be equivalent to that in previous year.

Deputy Director of the provincial Department of Agriculture and Rural Development Chau Cong Bang said the province is home to around 280,000ha of shrimp farming area, producing over 200,000 tonnes and earning over 1 billion USD from exports annually. This year, the province targeted yielding more than 220,000 tonnes and bringing home 1.1 billion USD.

VietShrimp was held in 2016 and 2018 in the Mekong Delta province of Bac Lieu, and in 2021 and 2023 in Can Tho city, becoming a major event in Vietnam's seafood industry and a regional and Asian-level shrimp expo.

Shop owners warned about scam QR code payments

Many shop owners in Hanoi have had to pay attention to their QR code payment systems following warnings that codes can be replaced and used to steal money when customers make a payment. 

Nguyen Le Ai, owner of a bakery on Nguyen Chi Thanh Street, Hanoi, had to take her mobile phone and scan the QR code at the cashier right after opening the shop every morning. Her shop would be very crowded in the early morning and many customers pay through QR code scanning.

"I printed my bank's QR code on three papers and pasted them at the cashier desk as more customers want to pay with it," Ai said. "However, I've been warned that someone may paste their codes on it to take the money. So I'm having to check the code every day."

Pham Duy Ha, who owns a bookstore on Lang Street also has to confirm with his customers the name of the bank account holder every time they make transactions through QR code.

"I have to check my bank balance right after they complete transactions," Ha said. "I've heard that some busy shops have lost money after their QR codes were replaced by other codes."

A representative from the Ministry of Information and Communications, Nguyen Duy Khiem, said that the use of QR codes for payments sharply increased after the Covid-19 pandemic.

“Scams relating to QR code transactions have appeared in Vietnam and local banks issued a warning about this in August," Khiem said. "People are advised to carefully check information when conducting transactions via QR codes, especially those shared on the internet."

Statistics from the State Bank of Vietnam showed that QR code transactions rose by 225 percent in volume and 243 percent in value in 2022 compared to 2021.

Vietnam’s economy shows encouraging signs: AMRO

The ASEAN+3 Macroeconomic Research Office (AMRO) has revised Vietnam’s GDP growth forecast for 2023 to 4.7% from the previous 4.4% in its October quarterly update.

“The recent numbers have shown more strength than we initially expected in July,” said AMRO Chief Economist Hoe Ee Khor during a press briefing held online today [October 4].

However, it's essential to note that this is still a significant decline from last year's 8% growth rate, which was among the highest in the world, he noted.

According to Khor, growth for the ASEAN+3 region (including China, Japan, and South Korea) is expected to be significantly impacted this year with an average rate of 4.3%, down from July’s projection of 4.6%, primarily due to challenges in the export sector.

“Most countries in the region rely heavily on manufacturing exports, and when external demand weakens, it can have a severe impact on their economies. Vietnam is no exception to this,” he said.

The expert suggested the Vietnamese economy is also facing challenges in its real estate sector, which is currently undergoing a correction phase.

“The real estate sector was booming until last year, but due to the pandemic, some segments have experienced a downturn, further affecting Vietnam's overall growth,” he noted.

Meanwhile, the inflation rate is expected to rise by 3.3%, well within the country’s 4% target.

Given the downward pressure on growth is expected to be mainly cyclical, driven by export challenges, Khor expects the situation to improve next year. “There are already signs of a rebound in exports. We expect Vietnam to grow by 6%   next year,” he continued.

According to the economist, the Vietnamese Government has taken several measures to support the economy during the unfavorable context, including measures to reduce interest rates, increase credit facilities, and make significant rate cuts for small and medium-sized enterprises (SMEs), amounting to a 150-basis point reduction.

On the fiscal side, the Government has provided relief to enterprises by deferring tax payments. In the real estate sector, measures have been taken to assist developers in restructuring their loans.

“While the real estate sector's recovery may take more time, we believe the challenges facing the export sector are cyclical and (the situation) should improve next year. As a result, we do not see the need for the Vietnamese government to implement a large-scale stimulus approach, and we expect the economy to regain momentum as demand picks up,” he noted.

AMRO’s update for the region expects the average growth to expand by 4.5% in 2024, supported by the expected turnaround in manufacturing exports and improving growth momentum in China.

This, along with the gradual pick-up in durable goods consumption in the US and an expected rebound in the global technology cycle, should boost regional exports next year amid the expected weakness in the global economy.

“Despite the gloomy headlines surrounding China’s economic performance, we must view things in perspective,” added Khor. “Beyond the real estate sector, manufacturing investment is holding up and consumer spending is starting to get back on track—these should have positive spillover effects across the rest of ASEAN+3.”

Inflation in the ASEAN+3 region—excluding Lao and Myanmar—is forecast to moderate to 2.6% in 2024, down from this year’s estimate of 2.9%. However, the resurgence of global food and energy prices in recent months is sparking concerns of another commodity price spike, with the risk of higher inflation becoming more pronounced. “El Niño is the wild card for inflation, especially if it leads to additional restrictive trade policies on key agricultural imports such as rice,” Khor cautioned. “The impact of commodity prices on ASEAN+3 inflation will be sharper if the strength of the US dollar relative to the region’s currencies continues.”

AMRO also warns against fully discounting the risk of a recession in the US and the eurozone, especially in an environment where global interest rates could stay higher for longer. Should recession in both economies materialize, growth in the ASEAN+3 region could slide below 3%—the lowest since 1998, barring the pandemic-induced slowdown of 2020.

OV firms help promote Vietnam-Europe trade ties

The Vietnamese business community in Europe has an important role to play in promoting trade ties between Vietnam and Europe, heard the 12th European Overseas Vietnamese Business Conference in Budapest, Hungary from September 29 to October 2.

As the largest annual event of the business community in Europe, the conference drew the participation of more than 400 delegates, including leaders from Hungarian ministries, sectors, business association and trade promotion organisation; representatives from Vietnamese embassies and trade offices in Europe; overseas Vietnamese enterprises from 19 European countries, and many Vietnam national-branded firms.

Over the past time, the overseas Vietnamese firms have served as a bridge to bring a large volume of Vietnamese goods to the European market, they said, adding more efforts should be exerted to capitalise on the potential of the two markets.

Transforming business activities in the digital technology era and promoting Vietnamese exports, especially those from the central localities, to the European market were tabled for discussion.

At the event, the Vietnam Trade Promotion Agency arranged an exhibition to introduce Vietnamese brands as well as connect the national-branded firms with overseas Vietnamese businesses in Europe and many other importers.

This was an opportunity for Vietnam’s quality products to get closer to the overseas Vietnamese, and for European enterprises to update information and seek investment opportunities in the Vietnamese market.

A business-matching event between the Vietnamese and Hungarian firms were held on October 2 on the sidelines of the conferene.

EU's carbon tax regime enters transitional phase

The EU's effort to cut carbon emissions globally is going into high gear as the bloc's Carbon Border Adjustment Mechanism entered its transitional phase on Sunday.

As of October 1, the EU's trading partners will have to report greenhouse gas (GHG) emissions embedded in six carbon-intensive exports, which consist of steel, cement, aluminium, fertiliser, hydrogen, and electricity.

From 2026, they will also be required to purchase CBAM certificates to cover the GHG footprint, and the prices of CBAM certificates will be calculated based on the weekly average auction price of EU ETS allowances.

Nguyễn Hoa Cương, Vice President of the Central Institute for Economic Management, said Bangladesh's staggering growth in apparel exports over the past few years speaks volumes about how "going green" has paid off commercially.

He urged Việt Nam to take action to keep its industries well-prepared for the tax regime. He said meeting CBAM requirements would serve Vietnamese producers well by allowing their products to be sold at a higher price in the EU markets.

"It's all about not being left behind in the global green supply chains," said Cương.

Nguyễn Văn Hội, General Director of the Vietnam Institute of Strategy and Policy for Industry and Trade, said reports on GHG emissions had become compulsory for Vietnamese steel producers, whose exports to the EU had doubled in volume in the first eight months of 2023.

He also said CBAM would initially apply to certain carbon-intensive exports but would expand in scope in the long term to cover products in other sectors, including food and energy.

He called for financial packages to support Vietnamese enterprises in capability-building and transition to greener technologies. He also urged enterprises to improve their energy efficiency and cut back on carbon emissions to get the go-ahead to the EU markets.

Economic expert Vũ Đình Ánh said carbon certificates were under development in Việt Nam and would come into force in the near future. He also said the EU's green regulations would incentivise Vietnamese enterprises to go green and promote legal changes that work in favour of the environment.

A team of researchers from the University of Economics and Business was concerned that CBAM would incur huge carbon-emission-linked costs to Vietnamese enterprises on the horizon.

The team called for measures to help them cut back on carbon emissions, thereby improving the competitive advantages of their products in the EU markets. It also urged policymakers to bring them up to speed on the tax regime and called for a mechanism for carbon pricing in Việt Nam. 

Int’l Federation of Freight Forwarders Associations appreciates Vietnam’s logistics sector

The Vietnam Logistics Business Association (VLA) is sending a delegation to attend the International Federation of Freight Forwarders Associations (FIATA) World Congress (FWC) 2023 in Brussels, Belgium from October 4-6.

Themed “The Changing Climate of Logistics”, this year’s FWC is scheduled to discuss the latest challenges, innovations and development in a changing global market, with focus on new trends in global logistics, as well as the education, compliance, diversity and responsibility of the logistics industry in adapting to climate change.

Participating in this event, the Vietnamese delegation hopes to widely promote FWC 2025 that will be hosted by the country to attract companies' participation; and approach logistics businesses in Belgium which hold strength in this field, as well as those from around the world.

Talking to the Vietnam News Agency’s reporters in Brussels, VLA General Secretary Nguyen Duy Minh said he hopes Vietnamese export service companies can enter into joint ventures with Belgian partners to establish a Vietnamese logistics centre in Belgium, which, he believes, will be a very good opportunity to reduce transportation costs, contributing to introducing Vietnamese goods to Europe as well as transshipping them to Africa.

Assessing the prospects of the logistics field in Vietnam, FIATA Director General Stéphane Graber said he had just had a survey trip to this country last summer to prepare for the FIATA World Congress to be held there in the next two years.

According to him, Vietnam is applying the best practices in logistics development, and has a real need for development, expertise and internal training.

FIATA will coordinate with VLA to provide logistics training, he added.

Potential of Vietnamese logistics industry earns international appreciation

As an increasing number of manufacturing activities are being carried out in Vietnam, the nation boasts plenty of opportunities to develop its logistics industry, according to Stéphane Graber, director general of FIATA.

A delegation of the Vietnam Logistics Business Association (VLA) led by Nguyen Duy Minh, general secretary of the VLA, attended the 2023 World Congress of the Federation of International Freight Forwarders Associations (FIATA) which opened at the Brussels Convention Centre in Belgium on October 4.

The event featured the participation of nearly 1,000 delegates from the forwarding, transportation and cargo industries, as well as observers from various other fields.

FIATA World Congress 2023 (FWC 2023) represents an international event which provides business, social, and networking opportunities, as well as interaction with both government and non-government organisations.

During the three-day conference, from October 4 to October 6, famous speakers gave presentations, as well as holding discussions on current issues and policies.

Opening with the theme of "The Changing Climate of Logistics", the FIATA World Congress 2023 covers some of the latest challenges, innovations, and developments in a changing global market.

FWC 2023 focuses on new trends in global logistics, education, compliance, diversity, and the logistics industry's responsibility in adapting to climate change.

Participating in this event, the Vietnamese delegation hopes to widely promote FWC 2025 which will take place in the nation, attract companies to register to engage in the event, as well as approaching Belgian logistics businesses, a strong country in this field.

Minh said that the association’s hopes for this conference is to promote FWC 2025 and attract customers, thereby helping members gain access to all logistics companies globally.

Through the event, the VLA have tried to contact the Belgian Logistics Association, as well as the Flanders regional government in order to exchange and discuss solutions aimed at helping both Vietnamese and Belgian businesses closely co-operate with each other as Belgium is the centre of Europe and also a commercial hub of Europe and Africa.

Minh expressed hope that Vietnamese export service companies can form joint ventures alongside Belgian partners in order to establish a Vietnamese logistics centre in the Central European country.

This represents an excellent opportunity to reduce transportation costs as a contribution to promoting Vietnamese goods into Europe, as well as transshipment to Africa.

Anis Khan, CEO of Intrapass GmbH, headquartered in Switzerland, said that last year he went to Vietnam and saw the great potential of the logistics industry.

In particular, logistics activities receive support from the Government, with these advantages helping to strongly develop the logistics service industry in the near future.

Assessing the prospects of this field, Stéphane Graber, director general of FIATA, said he had recently conducted a survey trip to Vietnam last summer to prepare for FWC to be held in the nation in 2025.

Following the COVID-19 pandemic, certain activities are being reallocated in Asia and one of the destinations for logistics activities is Vietnam. In addition, the country not only benefits from all modes of air, sea, and rail transport but also river transport, all of which are advantages for building a regional logistics centre, he went on.

The nation is applying the best practices in logistics development, whilst having a real need for development, expertise, and internal training, Graber said, adding that FIAT will co-ordinate efforts with VLA to provide logistics training.

As a means of developing the logistics industry, Le Duy Minh, secretary general of the VLA, said that the Government should pay attention to the social impact regarding the importance of logistics services.

The VLA in particular has made great efforts with its socialisation resources to proactively campaign with its members since 2019 in Capetown, South Africa, and in 2022 in Busan in the Republic of Korea, to successfully win the right to host FWC 2025.

Amid the current global context, the trend of shifting international production and many factories moving production to the country has created favourable conditions for the logistics industry.

Moreover, trade agreements implemented with 16 countries, along with potential of trade with the US, can be viewed as major advantages which indicate the country’s logistics service industry will certainly have great opportunities to further develop in the time ahead.

Trade with China passes US$120 billion mark in nine months

Vietnam’s trading relationship with China has continued to prosper, going on to exceed the US$120 billion mark during the nine-month period, according to figures given by the Ministry of Industry and Trade.

China remained as the country’s second largest export market in the reviewed period, with turnover reaching US$42.2 billion, up 2.1% on-year. This represented the only market among major Vietnamese export markets that recorded positive growth, up 2.1%, while other major markets experienced a downward trend.  

These positive results can be attributed to drastic solutions relating to customs clearance procedures which has helped to facilitate the export of farm produce to countries sharing a common border.

Most notably, thanks to favourable customs clearance, durian has risen to become the group of export goods recording the largest turnover at Lao Cai International Border Gate Customs Branch.

In a recent meeting held with Chinese Commerce Minister Wang Wentao, Minister of Industry and Trade Nguyen Hong Dien proposed expanding bilateral trade and economic ties with Chinese localities as a means of facilitating the export of Vietnamese goods into the market.

Furthermore, Minister Dien proposed setting up a Vietnam Trade Promotion Office in Haikou this year to create favourable conditions for Vietnamese export goods to transit Chinese railways to third countries.

Local businesses are advised to improve product quality as China currently applies high-quality management standards for imported products while co-operating with large Chinese distribution chains to make further inroads into the market.

Meanwhile, the northern neighbour remains the country’s largest import market with an estimated turnover of US$79 billion, down 13.6% on-year.

Vietnam grosses over US$5.1 billion from phone and component exports

Vietnam’s phones and component exports in August enjoyed a surge of 15.7% to reach more than US$5.1 billion compared to the previous month, according to the latest statistics compiled by the General Department of Vietnam Customs.      

During the eight-month period, phone and component exports reached more than US$33.8 billion, marking a drop of 15.5% against the same period from last year.

China, the United States, the Republic of Korea (RoK), the UAE, and Austria are the countries which recorded an export value exceeding US$1 billion.

In line with this, China remained the largest export market for Vietnamese phones and components with a market share making up 26.2%.

Specifically, the northern neighbour spent US$1.68 billion importing the product from Vietnam in August, representing a sharp increase of 111% compared to the previous month and up 7.4% compared to August last year.

Throughout the eight-month period, the country earned US$8.8 billion from exporting phones and components to China, a slight fall of 1% compared to the same period from last year.

The US made up the country’s second largest export market over the course of eight months, with the export value reaching more than US$5.6 billion, down 39% on-year, followed by the RoK with US$2.4 billion, down 37.4% and the UAE with nearly US$1.41 billion, down 19.2% on-year.

Elsewhere, Austria also made up a major export market for Vietnamese phones and components with turnover reaching US$1.34 billion, up 3.75%.

Hanoi’s Jan-Sept industrial production rises 3.5% y-o-y

The index of industrial production (IIP) of Hanoi in September rose by a slight 0.7% versus August and 3.5% year-on-year.

The manufacturing and processing sector in the month expanded by 1.2% against August and 3.1% over last September. In contrast, electricity production and distribution declined by 4.4% month-on-month but increased by 6.5% year-on-year.

The water supply and waste management sectors reported growth of 2.1% month-on-month and 5.7% year-on-year. Mining decreased by 3.6% versus the previous month and 7.6% over September 2022.

The IIP in the third quarter showed a 3% increase compared to the same period last year. Notable sectors include beverage production, which rose by 13.9%, and machinery repair and maintenance inched up by 12.9%. However, machinery and equipment manufacturing declined by 13.6%, and the production of leather-related products fell by 12.5%.

In the first nine months of 2023, the IIP grew by 2.6% year-on-year. Beverage production increased by 19.6%, machinery repair and maintenance by 17.2%, and pharmaceuticals by 14.2%. On the downside, machinery and equipment manufacturing dropped by 26.2%, and the textile industry declined by 4.8%.

The labor force at industrial enterprises increased by 0.1% at the end of September compared to the previous month but decreased by 2.8% year-on-year. Overall, labor utilization in industrial enterprises declined by 3.6% compared to the same period in 2022.

Faced with global trade slowdowns and rising input costs, Hanoi is taking steps to mitigate the impact on its industrial sector. The city is streamlining administrative procedures and focusing on attracting clean industries.

First e-commerce platform on Vietnamese crafts launched

The first e-commerce platform exclusively dedicated to Vietnamese crafts has been unveiled.

The e-commerce platform, Chus, features over 500 brands and a diverse range of Vietnamese products with around 6,000 items, ranging from crafts, specialties to limited-production consumer goods.

It provides a convenient platform for customers to discover high-quality products with attractive packaging including hair and skincare products, coconut candy, lacquerware jewelry, and traditional-flavored chili sauces from different parts of the country.

For handicraft products, customers can directly engage with artisans, even requesting additional product details to align with their unique preferences.

Injoon Song, Chus’s founder and managing director, emphasized the importance of not confining these valuable Vietnamese craft products to small geographic areas. He believes that these products deserve attention, usage, and the pride of both local residents and expatriates who hold Vietnam in high regard.

China seen switching to Vietnam suppliers after Japan seafood ban

China’s recent ban on seafood imports from Japan has led to a significant drop in trade, creating a potential export opportunity for Vietnamese seafood suppliers, according to the Ministry of Industry and Trade.

Data from China’s Customs Department showed that China’s seafood imports from Japan totaled US$29 million in August, a staggering 63.1% decrease compared to the same period in 2022. The decline follows China’s decision to tighten restrictions on Japanese seafood after Japan began releasing treated wastewater from its Fukushima nuclear plant into the ocean.

China’s total seafood imports declined by 21% to US$1.4 billion in the month versus last August. However, its seafood imports for the first eight months of 2023 increased by 9.4% year-on-year to US$12.8 billion.

Vietnam, the seventh-largest seafood supplier to China, experienced a 35.5% decline in exports in August, amounting to US$69.02 million. The total exports in the first eight months of this year reached US$533.2 million, down a significant 51.7% over the same period in 2022.

The decline in seafood imports was not limited to Vietnam or Japan. Major suppliers such as Ecuador, Russia, India, the U.S., and Norway also reported decreases in August. Only Peru, Chile, and Argentina saw an increase in exports to China.

Le Hang, director of communications at the Vietnam Association of Seafood Exporters and Producers, said that despite the overall decline, there was positive growth in China’s imports of Vietnamese seafood in August and September. Key products like shrimp and pangasius fish are showing signs of recovery.

In 2022, China was Japan’s largest seafood export market, with key products including scallops, tuna, and sea urchins. The sharp decline in Japanese exports to China could present an opportunity for Vietnamese suppliers to fill the gap in the coming months.

Forum boosts trade collaboration between Vietnam, Indonesia

A business forum on expanding trade cooperation between Indonesia and Vietnam, introducing the 38th Trade Exhibition Indonesia (TEI) 2023, and learning about the Halal market was held in Ho Chi Minh City on October 5.

In his opening remarks, Ho Xuan Lam, Vice President and General Secretary of the HCM City Union of Friendship Organisations (HUFO), said that since Vietnam and Indonesia set up diplomatic ties in 1955, their relations have developed strongly in all fields, with two-way trade enjoying positive growth to hit 14.1 billion USD in 2022, a threefold increase compared to the figure 10 years ago.

The forum was a chance for the two sides’ enterprises to meet and seek opportunities to boost trade cooperation and nurture close friendship between the Vietnamese and Indonesian people.

Cao Thi Phi Van, Deputy Director of the Ho Chi Minh City Investment and Trade Promotion Centre, said that Indonesia, which has the largest Muslim population in the world with more than 267 million people, has the biggest demand for Halal-certified products, which is a potential market for Vietnamese businesses.

Export businesses should proactively learn about and apply for Halal certification to access this market, Van advised.

Indonesian Consul General in HCM City Agustaviano Sofjan said that the forum provided detailed information about Halal products that have the potential to become an important economic growth driver for Indonesia with a contribution of about 5.1 billion USD per year.

It also helped the city’s businesses better understand the concepts of Halal and the Halal market, therefore contributing to increasing opportunities for cooperation between firms of the two countries in the coming time.

VinFast unveils plans to enter India’s EV market

Leaders of VinFast, Vietnam’s first electric vehicle (EV) maker, recently met with 25 auto retailers in India as they consider the establishment of a manufacturing unit in the world's third largest auto market, according to the Economic Times on October 3.

According to details of the plan, VinFast will enter the Indian automobile market with three electric car models. This may include a compact SUV crossover in April 2024, followed by a full-size sedan and more models subsequently.

The first model will be the VF e-34 which is a compact SUV crossover and will be fully exported, while the VF e-36, VF6, and VF7 EV models will be assembled in India in the first phase before starting the domestic production process.

The media outlet revealed that the two states of Tamil Nadu in the south and Gujarat in the west are being considered to be the company’s production factory in India.

Meanwhile, the central state of Maharashtra is also in the process of lobbying VinFast to invest there in the near future.

The company expects that the EV factory is capable of producing 50,000 units per year in its initial phase and then between 200,000 and 300,000 moving forward.

Vietnamese pangasius exports to US sees plunge in price

The average export price of Vietnamese pangasius to the United States in August plummeted by 44% to US$2.92 per kilo, representing the steepest fall since the beginning of the year, reported the General Department of Vietnam Customs.

Specifically, Vietnamese pangasius exports to the market hit more than US$25 million, marking a drop of 24% year on year, but up 38% month on month.

The country’s pangasius exports to the US by mid-September dropped by 55% to more than US$195 million compared to the same period from last year, accounting for 16% of total pangasius exports to foreign markets.

According to statistics from the International Trade Center (ITC), the US imported white-fleshed fish worth more than US$1 billion during the initial seven months of the year, of which imports from Vietnam reached over US$199 million. In fact, Vietnam accounts for 18% of the US’ total import value of white-fleshed fish products.

Insiders point out that despite experiencing a downward trend, there remains plenty of room for Vietnamese pangasius exports to the US market moving forward.

At the recent conference held as part of the Vietnam Fisheries International Exhibition (VietFish 2023), Arno Willemink, operation director of De Heus Vietnam, said that pangasius has gradually replaced other traditional white-fleshed fish due to their reasonable prices.

This marks a general trend which has affected the consumption potential of the pangasius industry, including in the US market, he added.

Meanwhile, the positive results from recent review by the United States Food Safety and Inspection Service (FSIS) and the 19th anti-dumping duty administrative review (POR19) by the US Department of Commerce on Vietnamese frozen pangasius fillets are anticipated to offer fresh impetus for local export businesses in the future.

Most notably, the elevation of the bilateral relationship to that of a Comprehensive Strategic Partnership during US President Joe Biden’s Vietnam visit on September 10-11 will open up a wealth of opportunities for Vietnamese seafood, including pangasius exports to this lucrative market.

Vietnam and Myanmar seek to boost trade-investment cooperation

A Myanmar-Vietnam trade fair is scheduled to take place in Yangon, Myanmar on November 1 to attract 22 booths displaying a range of Vietnamese products.

Simultaneously, a Vietnam-Myanmar trade workshop will be held to draw the participation of various representatives of craft associations and businesses of the two countries.
  
The events to be co-organised by the Vietnam Trade Office in Myanmar and the Myanmar Entrepreneurs' Association aim to boost trade and investment cooperation between the two countries.

According to General Department of Vietnam Customs, two-way trade between Vietnam and Myanmar fetched US$489 million between Jan. and Aug, 2023, marking a reduction by 17% compared to the same period last year.

Of the total value, Vietnam exported over US$311 million worth of goods to the market, down by 15%, while its imports were valued at US$178 million, down 20% year on year.

The fall in Vietnamese exports to Myanmar is mainly due to the recent increase in import restrictions by the Myanmar side.

Moreover, the majority of goods exported to Myanmar require licenses, except for some agricultural machinery and equipment. The time to apply for a license to import goods by sea takes about three and a half months, whilst by road it is about four to six days.

The Vietnam Trade Office in Myanmar says that it will continue to work closely with Myanmar's associations, distributors, contractors, supermarkets, and other businesses to push connection between the two countries’ business communities.

It will also organise trade exchanges, encourage Vietnamese business delegations to Myanmar to seek trade and investment opportunities, and hold trade fairs there.

HCM City conference to look at prospects for logistics services in Vietnam

About 300 foreign and Vietnamese delegates will attend a conference in Ho Chi Minh City on October 5 to examine prospects for the logistics industry in Vietnam amid the global shift of production bases into Southeast Asian nations, including Vietnam.

Delegates will analyze and discuss the growth drivers for the logistics industry, supply and demand issues and changes to freight-forwarding services, development trends of modern logistics services, and green logistics towards sustainable development.

They will also evaluate opportunities for logistics businesses in the context of diversification of the supply chain to minimize risks, and optimize cost-benefit problems to create competitive advantages.

Vietnam has been ranked among the top 10 countries in the 2023 Agility Emerging Markets Logistics Index compiled by Agility, one of the world’s top freight forwarding and contract logistics providers.

It is in 10th place, up one spot compared to the previous year. Among Southeast Asian countries, Vietnam finishes fourth together with the Philippines, behind Malaysia, Indonesia, and Thailand.

Currently, about 90% of businesses getting involved in logistics services are small and medium-sized, and the application of smart logistics is still limited. To maximize the growth potential of the logistics industry, SEA Logistic Partners, a company that operates and develops industrial infrastructure, says Vietnam should pay attention to developing infrastructure, speeding up technology application, and offering certain incentives to attract investment.

With regard to infrastructure, SEA Logistic Partners suggests that Vietnam focus on strengthening the infrastructure of the logistics industry, including road, rail, air and sea transport networks. Investing in smart warehouse systems, distribution centers and modern intermodal facilities will streamline operations and enable more efficient transshipment of goods.

Steady recovery amid global headwinds

The Vietnamese economy has recovered positively from quarter to quarter despite weak global demand for major exports and high inflation.

Official data released by the General Statistics Office showed Viet Nam's GDP growth in the third quarter accelerated to 5.33 percent, bringing the GDP growth rate to 4.24 percent in the first nine months this year.

The Q3 GDP growth indicates that Viet Nam has maintained steady recovery as the economy only expanded 3.28 percent and 4.05 percent in January-March and April-June period.

The Q3 GDP growth was mainly driven by strong expansion of the service sector which rose by 5.61 percent compared to -0.49 percent in the first quarter and 0.6 percent in the second quarter.

In addition, exports grew 4.6 percent against the same period last year while imports increased by 2.6 percent year-on-year following a period of 10-month decrease.

The disbursed volume of foreign direct investment picked up 2.2 percent year-on-year in September and 17.2 percent from January to September.

The Ministry of Planning and Investment predicted that in the "best case" scenario, the Vietnamese economy may expand 6 percent in 2023.

In July, the Asian Development Bank (ADB) revised down Viet Nam's 2023 GDP growth to 5.8 percent from 6.5 percent given the fact that weak external demand continues to put pressure on manufacturing and industrial production, while domestic conditions are expected to improve.

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