Ho Chi Minh City’s Index of Industrial Production (IIP) in August increased 6.6% over the same period last year, according to the municipal Department of Industry and Trade.

The city’s IIP in the January-August period was up by 2.8% year on year.

The city saw positive developments in many socio-economic aspects in the first eight months of this year, with a 7.6% hike in total retail sales of consumer goods and services and cargo throughput via through seaports up by 3.8% year-on-year, Le Thi Huynh Mai, Director of the municipal Department of Industry and Trade, said at an August 30 conference reviewing the city's socio-economic situation in the first eight months of 2023

In August alone, there were 25,523 new enterprises in the city, increasing by 11.3% over the last year’s corresponding period while export turnover rose by 7.3%.

Regarding its main activities in August, Mai said that the city continued to promote growth model transformation towards a green and circular economy as well as digital economy in piloting specific mechanisms and policies for the development of HCM City under Resolution No. 98/2023/QH15 of the National Assembly (NA).

It also promoted regional linkage activities and planning with a focus on developing surrounding areas and the Saigon River route as well as urban development, she said, adding that the successful organisation of the first Ho Chi Minh City river festival contributes to promoting the city as an urban area of rivers and rich culture.

Mai pointed out the challenges that the city is facing. The city’s export turnover in the first eight months of this year fell by 15.3% over the same period last year.

The number of newly-established enterprises increased but was down 12.4% in total registered capital while there were 22,387 businesses temporarily suspending operations, an increase of 28%. Notably, the disbursement of the city's public investment capital reached 19.1 billion VND, equivalent to 28% of the assigned plan, she said.

To deal with the above-mentioned issues, it is necessary for agencies to focus on speeding up the disbursement of public investment capital, carrying out policies to support exporters with inventory costs and enhancing consumer demand by extending the promotion month to three instead of one month, according to Mai.

Addressing the meeting, the Chairman of municipal People’s Committee Phan Van Mai requested departments and agencies to continue implementing the NA’s Resolution on piloting some specific mechanisms and policies for the development of HCM City.

It is necessary for the city to accelerate the progress of key traffic projects and remove obstacles to complete urban railway line No. 1 in line with the scheduled plan, he said.

Vietnam prioritises solar energy development in the north

The nation is introducing a revised pricing structure to boost solar energy projects in its northern regions, reflecting the area's lower solar radiation intensity compared to its central and southern counterparts.
 
The Electricity Regulatory Authority under Vietnam’s Ministry of Industry and Trade (MoIT) is looking to overhaul the pricing structure for solar and wind energy, with a focus on promoting development in the country's northern regions.

The revised proposal aims to better reflect the varying solar radiation intensities across different parts of the nation.

Under the draft circular, the pricing framework for new solar projects will now be predicated on the solar radiation intensity of each locality, providing an impetus to spur development in the North, where solar radiation is significantly lower compared to the central and southern parts of Vietnam.

As such, the pricing mechanism for the north will necessitate a higher rate, given the lower energy output expected. This proposed adjustment to the pricing mechanism aims to be in line with the stipulations set forth in the national Electricity Law, which uses data from consultative organisations as inputs for calculations.

The state-owned Vietnam Electricity (EVN) will be responsible for preparing the tariff framework, and the proposal will then be submitted to the MoIT for review and ratification by November 1 each year.

In instances where there is a surge in the number of solar and wind power plants negotiating tariffs, the MoIT will establish an advisory council to scrutinise the proposed pricing framework presented by EVN.

Moreover, an amendment in this circular revision specifies that the new pricing framework will not be applicable to existing transitional solar and wind power projects. Instead, it will only apply to renewable energy projects that are newly constructed and commissioned and have new power purchase agreements.

The Power Development Plan VIII highlights Vietnam’s substantial potential for solar energy, which is estimated at 963,000MW. Of this, a dominant 87 per cent is attributed to ground-based solar.

By 2030, the cumulative capacity of solar energy sources is projected to rise by an additional 4,100MW, before reaching between 168,600 and 189,300MW by 2050.

As for wind energy, the plan sets a target of 21,880MW for onshore and approximately 6,000MW for offshore by 2030. By 2050, this capacity is anticipated to lie between 70,000 and 91,500MW.

HCMC aims to collect VND19 trillion for city’s budget

The HCMC Department of Natural Resources and Environment is working with the HCMC Department of Finance and the Land Price Appraisal Council to boost land-based revenue, with the goal of generating VND19 trillion in revenue from land projects.

Nguyen Toan Thang, director of the department, announced this information during a meeting that reviewed HCMC’s socioeconomic performance in the first eight months and outlined missions for September, held on August 30.

While several projects with approved land use rights generated VND2.3 trillion in revenue from January to August, falling short of the anticipated VND5.3 trillion, projections for the remaining months indicate a potential revenue surge to nearly VND19 trillion, according to Thang.

“The figures will be equal to or even higher than in 2022, and various departments and sectors are coordinating to maximize land-based revenue, contributing to the city’s budget,” he noted.

However, complexities surrounding property rights persist. More than 81,000 commercial residential units lack home ownership certificates, with only 6,000 cases resolved. About 40,000 of the remaining cases seem solvable, while the rest present complications that may extend beyond the current year’s scope.

Income tax and registration tax remain the city’s major sources of budget revenue. However, income tax from the real estate sector has sharply decreased. The city’s administrative system, which previously handled 40,000 to 45,000 procedures monthly, now manages only 18,000, impacting revenue collection.

Regarding public investment disbursement, the city has 153 projects with an allocated budget of VND27 trillion, but has disbursed only VND6.3 trillion, constituting 35% of the funds.

Bank deposits rise for sixth straight month

Bank deposits had continued to surge by the end of June amid falling deposit interest rates and a rebounding stock market, showed recent statistics from the State Bank of Vietnam (SBV).

Total deposits made by individuals and businesses into banks have surpassed VND12.3 trillion, reaching a record high, according to an announcement by the SBV on August 30.

Specifically, deposits made by local residents as of June amounted to VND6.38 trillion, an 8.82% increase compared to the end of 2022. This signifies consecutive increases since October of the previous year.

Deposits in June edged up by VND35.34 billion from the previous month. In comparison to late last year, the amount has increased by VND429 billion.

Business deposits in June have returned to the level recorded at the end of last year after experiencing declines in the previous five months. According to the SBV, by the end of June, business deposits reached over VND5.98 trillion.

In contrast, deposit interest rates are trending downward. Currently, no commercial banks are offering a deposit rate of 7% per year for a 12-month tenor. Commercial banks have lowered deposit rates for tenors from six to 12 months to 6-6.5% per year.

Regarding lending activities, the SBV stated that the banking system’s outstanding loans have increased slightly. As of July, outstanding loans had expanded by 4.56% compared to the end of the previous year.

The continuous surge in deposits made by individuals and businesses into banks, along with sluggish lending activities and debt prepayments, pose a significant challenge for the banking system, according to a representative of a State-owned commercial bank.

Ca Mau strives to export over 30 percent of its crab production

Crab is a renowned delicacy of Ca Mau Province and is mainly exported to China. To exploit its potential and advantages, Ca Mau has initiated a Sustainable Crab Industry Development Project, aiming to export 30 - 35 percent of the total production.

On August 30, the Department of Agriculture and Rural Development of Ca Mau Province announced that the Provincial People's Committee has approved the Sustainable Crab Industry Development Project until 2030.

The objective of the project is to tap into the province's potential and strengths by leveraging science and technology to elevate value and ensure the crab industry's sustainable growth. This initiative entails implementing production techniques adaptable to climate change and tailored to specific ecological zones. It also includes fostering cooperative value chains, establishing brands, broadening consumption markets, as well as mobilizing all accessible resources and diverse economic elements for product investment and development. Within this framework, businesses play a key role in bridging different production regions.

According to the plan, the goal until 2030 is to maintain a consistent crab farming area of approximately 265,000 hectares, yielding around 29,150 tons of production. The objective is to work towards exporting 30 - 35 percent of the province's cultivated crab production and simultaneously establish and develop a consumption product supply chain for crabs, aiming for a 30 percent accomplishment.

When discussing Ca Mau's renowned sea crab delicacy, the Nam Can crab often comes to mind. The Nam Can crab is acclaimed as the best in Ca Mau and was granted a collective trademark registration certificate "Nam Can Crab - Ca Mau" by the Intellectual Property Office of Vietnam under the Ministry of Science and Technology in 2015.

Ministry directs unscheduled visits to businesses to prevent hoarding

The Ministry of Industry and Trade asked authorized agencies to pay unscheduled visits to businesses to prevent speculation and hoards of goods.

In an effort to prevent speculation and the recurrence of hoarding goods to push prices during the holiday, the Minister of Industry and Trade has just instructed the market surveillance force in localities across the country to suddenly inspect businesses and throw the book at facilities that have been hoarding goods to push prices for enormous profits.

According to regulations, gasoline prices will be adjusted periodically every 10 days on September 2. However, September 2 is the national holiday, so the gasoline price adjustment will be postponed until after the holiday.

The Ministry of Industry and Trade reported that domestic gasoline prices have increased 5 times within the past 2 months while the world petroleum market is still developing unpredictably. This can affect the retail price of gasoline and the supply of gasoline to the domestic market.

The European Union's ban on Russian refined oil products and the decision by OPEC+ to keep production restrictions in place can have an impact on gasoline prices. Plus, high inflation prompted many major economies to continue to pursue tight monetary policies and apply high interest rates to cope with inflationary pressures. The US’s fuel reserves have dropped sharply.

To avoid the recurrence of speculation for increased prices as in previous years, the Ministry of Industry and Trade issued a directive to strengthen and improve the efficiency of the state management of petroleum and ensure the supply of gasoline.

Accordingly, the Minister of Industry and Trade requested the Domestic Market Department to monitor the implementation of the minimum total petroleum source in 2023 for wholesale petrol and oil traders.

If necessary, the Ministry of Industry and Trade will adjust the allocation of the minimum total petroleum source, specify the schedule for importing or purchasing domestic gasoline, and assign additional import quotas to some traders to ensure supply in all situations.

The Oil, Gas and Coal Department was assigned to closely monitor the production of two domestic oil refineries, ensuring adequate supply of petroleum to the market according to the registered plan. The Department must report to the Ministry for timely measures when the two plants stop operating for maintenance that can affect their output.

The Vietnam Directorate of Market Surveillance continues to strictly implement instructions on strengthening inspection and issue harsh penalties for violating petroleum business.

The Ministry of Industry and Trade required key petroleum traders to be responsible for fully implementing the minimum petroleum resources assigned in 2023.

The Ministry ordered not to let the supply of petroleum from wholesalers, distributors to retail businesses interrupt. There must be enough supply for retail stores by all means to maintain regular sales activities, as per the Ministry’s directive.

To avoid supply interruptions from manufacturers, the Ministry of Industry and Trade recommended that distributing businesses have close commitments with domestic petroleum producers in contracts between the parties. The commitment will include sanctions if one of the parties violates.

The Ministry of Industry and Trade also assigned the Department of Science and Technology to coordinate with relevant units to review and evaluate the overall implementation of Circular No. 43/2015/TT-BCT regulating gasoline wastage rates in petroleum business activities. Moreover, the Department should evaluate the implementation of Decision No. 49/2011/QD-TTg stipulating the roadmap for applying emission standards to newly manufactured, assembled and imported cars and two-wheeled motorbikes.

Workshop on carbon tax to mitigate CBAM for exported goods held

A consultation workshop titled “The Recommendations for a Carbon Tax to Mitigate the Impact of the EU’s Carbon Border Adjustment Mechanism (CBAM) on Vietnam” was held in Hanoi on August 30.

In the opening speech, Mai Kim Lien, Deputy Director of the Department of Climate Change under the Ministry of Natural Resources and Environment, said that climate change had become the biggest challenge for humanity, and has been affecting all aspects of economics, politics, diplomacy, and global security.

In addition to proactive adaptation, each country must be responsible for reducing greenhouse gas emissions according to its nationally determined contributions (NDC) to implement the Paris Agreement on climate change from 2021.

In order to reduce greenhouse gas emissions, in addition to applying advanced technology, many countries apply carbon pricing tools.

"Commonly-applied carbon pricing tools are carbon taxes, greenhouse gas emission quota trading systems, and carbon credit mechanisms," emphasised Lien.

In parallel with the roadmap to establish and operate the domestic carbon market, the Prime Minister has also assigned relevant ministries and branches to research and propose regulations and roadmaps for applying carbon tax in Vietnam, said Lien.

At the workshop, experts discussed and proposed a carbon tax design and roadmap to mitigate the impact of CBAM on the country.

Attorney Nguyen Anh Minh, NHQuang and Associates Law Office, said that carbon tax was a tool used in many countries around the world, which encourages businesses and people to reduce greenhouse gas emissions into the atmosphere.

The taxable object is direct emissions or the carbon content of fossil fuels. The regulation applies during the production, import or consumption process.

Regarding tax rates, experts analysed that a low rate might not motivate emission reductions, while a high rate could have negative effects on economic stability in the short term.

Therefore, the principle for determination will be based on ensuring cost compensation, taking into account Vietnam's socio-economic development policy.

This aims to ensure fairness, transparency and equality in the rights and obligations of citizens.

In addition, non-taxable entities may include remote areas, vulnerable groups or industries crucial to the economy.

On the other hand, experts also propose integrating carbon tax into environmental protection tax as both apply to goods that have a negative impact on the environment.

In fact, certain products, such as coal and gasoline, are already subject to environmental protection taxes.

Therefore, the environmental protection tax can also be expanded to include greenhouse gas emissions arising from the production and use of taxable goods.

Therefore, it is important to ensure that a carbon tax (if introduced as part of an existing environmental protection levy) is directly linked to the greenhouse gas emissions of goods and other products should be included in the environmental protection tax to be consistent with CBAM such as cement and steel.

Sharing experiences in implementing carbon taxes, Axel Michaelowa, Senior Founding Partner of Perspectives Climate Group, said that carbon tax sets a fixed carbon price in US dollar/tCO2e.

In Colombia, the carbon tax has been implemented since 2016 on domestically produced or imported fossil fuels.

Coal alone will be fully taxed from 2028. Tax is determined based on the carbon content of each fuel type. The tax rate is calculated at 4.4 USD/tCO2e.

The tax covers 23% of Colombia's total greenhouse gas emissions.

Colombia's carbon tax revenue is 527 million USD from January 2017 to April this year, of which 80% of the revenue from the carbon tax is used to fund environmental protection measures and 20% goes to the Colombia Peace Fund.

CBAM has been approved and officially takes effect on May 17 this year. CBAM will begin a three-year transition period from October 1 this year.

After this time, the CBAM mechanism will officially take effect from January 1, 2026 and be fully operational in 2034.

Currently, the EU has published a draft regulation implementing CBAM, which includes details of the reporting obligations and necessary information about CBAM items from importers.

During the transition period, importers will be obliged to report appropriate emissions from imported goods covered by the regulation.

Programme launched, calling on start-ups to address issues

"Inno Vietnam – Japan Fast Track Pitch 2023", a new platform for start-ups and companies from ASEAN, Japan, and around the world to co-create open innovation, was launched in the capital city on Tuesday.

The event was jointly held by the National Innovation Centre (NIC) in collaboration with the Japan Trade Promotion Agency (JETRO) and the Japanese Embassy in Việt Nam.

The programme is within the framework of the "ASEAN – Japan Co-Creation Fast Track Initiative" to accelerate global open innovation of Japanese companies and start-ups.

At the ceremony, six large enterprises and corporations possessing challenges from Japan and Việt Nam announced details of their 2023 challenges, including VinGroup, FPT Corporation, Corporation technology MoMo (Vietnam); Kokyu Corporation, Money Forward Corporation, and Fujikin Danang Research, Development and Production Centre (Japan).

According to Bùi Quốc Huy, director of NIC, the programme held in Việt Nam for the first time aims to attract innovative and start-up businesses from Japan and Southeast Asia to solve urgent problems that major businesses and corporations are encountering. The partnership between the challenger and the solution-proposer helps with promoting knowledge exchange and increasing the effectiveness of the application of the achievements of the Fourth Industrial Revolution.

It is also a good opportunity for innovative businesses and start-ups to introduce products and solutions to potential large customers. In particular, excellent products and solutions will have an opportunity to be supported by challengers to develop and invest in the future, toward market expansion and participation in the global value chain.

Ishikawa Hiroshi, executive director of JETRO and special advisor to the Minister of Economy, Trade and Industry of Japan, said that the programme is the fastest way for innovative businesses and start-ups to set up businesses, access support from organisations and other Government resources.

Lê Việt Thanh, deputy đirector of Data Platform & Analytics Center of FPT Information System, said the eternal challenges faced by Vietnamese enterprises are first, how to survive in the market, and second, how to rise to the top.

“Therefore, most businesses, when participating in this programme, aim to look for new ‘weapons’ or tools relating to technology, AI, and most of the challenges presented at the launch today focus on how to connect technology with businesses, how to make technologies useful to daily life and to business,” Thanh said.

The model was successfully deployed in Singapore in April and in Bangkok earlier this month, attracting more than 700 investors, start-ups, large corporations, and supporting organisations. The third event is scheduled to be held in Jakarta on September 1.

In Việt Nam, the "Inno Vietnam – Japan Fast Track Pitch 2023" is expected to become an annual event.

Construction of Long Thanh and Tan Son Nhat airport terminals begins

Construction work on a passenger terminal at Long Thanh International Airport in southern Dong Nai province and the third terminal (T3) of Tan Son Nhat International Airport in Ho Chi Minh City started in the afternoon of August 31, with a total cost of over VND45 trillion.

Of the figure, the investment cost in the Long Thanh airport terminal stands at VND35 trillion. The project is being built on a 150-hectare land area and has been designed with two separate entrance and exit routes, including a ground floor and three other floors, a roof peak of nearly 46 metres in height, and 40 aircraft parking positions.

According to details given by Airports Corporation of Vietnam ( ACV), the project has been designed using the most modern technology available in the aviation field with materials with high durability and aesthetics.

The major operator of Long Thanh airport terminal is Vietur Joint Venture, consisting of 10 members, including a number of domestic contractors such as Ricons, Newtecons, Sol E&C, Vinaconex, and CC1, with the leading unit being the Group. Ic Istas Construction Industry and Trade (Ic Istas) of Turkey.

Meanwhile, the third terminal of Tan Son Nhat airport is estimated to cost nearly VND11 trillion. It is expected to become operational in the second quarter of 2025, handling domestic flights and up to 20 million passengers annually.

Rach Mieu 2 Bridge project faces cost overruns

The total cost of Rach Mieu 2 Bridge, which connects the Mekong Delta provinces of Tien Giang and Ben Tre, is expected to increase by VND1.6 trillion to VND6.81 trillion due to higher site clearance costs.

The Ministry of Transport has sent a report to the Government recommending an upward revision of the cost of the Rach Mieu 2 Bridge project. Additionally, the completion deadline has been proposed to be extended to 2026, instead of the previously planned 2025.

The processes of site clearance and land handover for the Rach Mieu 2 Bridge project have progressed slower than anticipated. As a result, construction on the entire project in Tien Giang Province is projected to commence only in the fourth quarter of 2023.

The Ministry of Transport attributes the cost overruns of the bridge project to increased spending on site clearance, compensation, and resettlement arrangements.

The Rach Mieu 2 Bridge, spanning approximately 17.6 kilometers across the Tien River, is designed to have four traffic lanes. It starts from the Dong Tam intersection in Chau Thanh District of Tien Giang and ends on the National Highway 60 section passing through Ben Tre.

Initially slated for completion in 2025 with an estimated cost of VND5.18 trillion, funded from the State budget, the project’s construction began in the second quarter of 2022.

Accelerated public investment deemed the way out from steelmaking challenges

Steelmakers are hoping for a stronger 2024 through avenues such as public investment, after a downward trend in prices and demand.

Do Duy Thai, chairman of the Board of Directors of Pomina Steel JSC, said the real estate market is likely to remain quiet until June 2024. “Therefore, the salvation of the steel market at the end of this year is mainly through public investment,” said Thai.

According to the Vietnam Steel Association (VSA), in the second quarter of 2023, consumption of construction steel reached only two million tonnes, which is the lowest since 2022 and 8 per cent lower than the first quarter. Particularly, in July, construction steel consumption decreased by 6 per cent compared to June and dipped 18 per cent over the same period last year. Along with that, the export volume decreased by 30 per cent compared to July 2022 to 105,000 tonnes, according to VSA chairman Nghiem Xuan Da.

“Never has the steel industry faced such difficulties in the past three years. So far in 2023, the domestic steel industry has faced difficulties as a series of enterprises reported losses and had to compete with cheap Chinese steel flooding into Vietnam,” said Da.

Factories continuously reduce selling prices to meet production and sales plans. The real estate market has not shown a positive signal yet, and few social housing projects have just been implemented. Meanwhile, the competition in selling price and market share of factories is increasingly fierce.

The Vietnam Steel Corporation announced that the consolidated revenue for the second quarter of 2023 reduced 29 per cent over the same period, with gross profit down 57 per cent on-year.

Meanwhile, Thai Nguyen Iron and Steel noted consolidated financial statements for Q2 witnessing a 39 per cent drop in revenue over the same period last year.

According to a KIS Vietnam Securities report released in July, Q3 is a challenging one for steel producers, with the average selling price lower and demand expected to be weak due to the rainy season. It estimated that input prices are expected to increase and profit margins may be affected. Total consumption may decrease 9 per cent on-quarter to 5.8 million tonnes.

The export channel can be a fulcrum for Vietnamese steel producers in the current quarter, with domestic demand expected to slow down, KIS added. The average export price may also be lower than in Q2, as steel prices between the US/Europe and Asia are increasingly narrowing from about $350-600 per tonne at the end of April to $140-340 per tonne now.

The prospect of public investment could still support the opening of domestic iron and steel consumption. In 2023, the National Assembly approved a public investment plan worth nearly $30 billion.

“Vietnam is a leader in Asia in terms of infrastructure investment. Vietnam is also in transition towards a high-income economy, and infrastructure plays a key role in achieving that goal. Therefore, increased public investment in infrastructure projects will be a traction force to help the domestic iron and steel market overcome difficulties by the end of this year,” said Pham Quang Anh, director of the Vietnam Commodity News Centre.

“The real estate market should gradually recover by the end of 2023, and it is also considered a favourable foundation for building material businesses. Thanks to the government’s contribution, steel manufacturing is expected to overcome difficulties in the year-end period and reaffirm its position as a key industry to develop the country’s economy,” said Anh.

Prime Minister Pham Minh Chinh on August 18 asked ministries and localities to strive to disburse at least 95 per cent of this year’s public investment volume and view public investment as a key solution to boost growth.

Price spikes threaten rice sector performance

Amid continual increases in the export price, many rice businesses have seen declining results due to a spike in operating costs.

Vietnam’s rice exports have been on the rise constantly from the start of the year. In June alone, the rice export price averaged $552 per tonne, up 9 per cent compared to early in the year, setting a new record.

Despite the price surge, the business outcome in the second quarter and the first six months saw a decline for many rice businesses, with only a few seeing high profits.

Trung An High-tech Farming JSC eyed a staggering growth in its revenue in Q2, yet saw losses for the first time since entering the bourse in 2019.

The company posted $68.1 million in revenue in Q2, up 111 per cent on-year. However, due to a spike in the cost of sales which touched $65.3 million, up 129 per cent and 40 per cent jump in financial costs, primarily due to soaring interest payments, Trung An recorded $337,550 in losses, compared to gaining $1 million in profit a year ago.

In H1, despite posting a 46 per cent jump in its revenue to reach $106 million, Trung An raked in merely $25,300 in post-tax profit, down 99 per cent compared to one year ago.

The company is set to reach $160 million in revenue and $2.1 million in post-tax profit for 2023.

Similarly, An Giang Agriculture and Foods Import-Export JSC (Afiex) saw a 44 per cent jump in its Q2 revenue to reach $24.7 million, yet post-tax profit registered a 70 per cent dip, falling to just $210,970.

In H1, the company’s revenue came to $38.9 million, up 47 per cent, while net profit dropped 82 per cent on-year, falling to $417,720.

Similarly, An Giang Import Export JSC (Angimex) raked in $6.87 million in revenue in Q2, down 88 per cent on-year, and lost $1.4 million in post-tax profit during the period.

This is the fourth consecutive quarter that Angimex eyed losses.

In H1 generally, the company counted $2.8 million in losses, much higher compared to loss figure approximating $261,600 one year ago.

Meanwhile, Vietnam National Seed Group (Vinaseed), one of the first sci-tech enterprises in Vietnam’s seed industry, posted around $35.2 million in revenue in H1, down 7 per cent on-year, and registering $3.92 million in post-tax profit, down 24 per cent on-year.

In H1 Vinaseed fulfilled 38 per cent of full-year revenue, and 32 per cent of full-year profit targets.

In its latest report, Tien Phong Securities JSC (TPS) SAID that Vietnam’s rice export eyed factors, such as deficit in the global food supply, and lasting drought casting devastation on rice growing areas in many countries, which were leading to an increase in rice exports

TPS appreciates the rice export prospects to China as after nearly three years of closing the door, this country has removed stringent COVID-19 requirements, helping to facilitate goods moving over the border.

Besides traditional markets, Vietnamese rice is seeing widening opportunities for export to other potential markets, such as the UK.

In 2022, Vietnam posted more than $3.7 million from exporting nearly 3,400 tonnes of rice to the UK, up 24.5 per cent in volume and 34 per cent in value on-year.

Vietnam, however, just accounts for 0.6 per cent of the UK’s rice import market, placing 14th among countries exporting rice to the UK.

Estimates show that by the end of July, Vietnam exported 4.83 million tonnes of rice valued at $2.58 billion, up 18.7 per cent in volume and 29.6 per cent in value compared to one year ago.

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