The northern port city of Hai Phong plans to develop a 20,000ha coastal economic zone (EZ) in its southern part, said the municipal EZ Management Board.

Spanning the districts of Do Son, Kien Thuy, An Lao, Tien Lang and Vinh Bao, this will be the second coastal EZ in the city after Dinh Vu-Cat Hai EZ, which was founded in 2008.

The South Hai Phong Economic Zone will house important infrastructure projects including Tien Lang airport, Nam Do Son port, and two logistics centers in Kien Thuy and Tien Lang, along with a port system along the Van Uc River, said Le Trung Kien, head of the management board.

The establishment of the new EZ will help the city optimise the development potential of its existing IPs and the Dinh Vu-Cat Hai EZ, he said.

It aims to leverage existing assets and infrastructure, connecting with neighbouring economic zones like Thai Binh, Quang Yen and Van Don, creating a cohesive network of coastal economic zones that drive the socio-economic development of the entire region.

Hai Phong strategic location as a transportation hub and industrial centre in the Hong (Red) River Delta anchors several key economic corridors, including those from China (Kunming and Nanning) and Vietnamese coastal regions (Quang Ninh, Thai Binh, Nam Dinh and Ninh Binh).

In the past 30 years, Hai Phong has developed 14 industrial parks spanning 6,100 hectares and one 22,540-hectare economic zone, with a 63.8% occupancy rate. These zones have attracted 688 projects totaling 36.32 billion USD in investment.

The Dinh Vu-Cat Hai EZ has so far attracted 31 billion USD worth of investment from large foreign corporations such as LG, Pegatron, Regina Miracle, Fujifilm and Koycera and major domestic companies like Vinfast, Geleximco and Xuan Cau. It has also created around 200,000 jobs.

With a high demand for rice, Canada is considered a potential market for exporters of Vietnam, according to insiders.

Vietnam holds the 5th place among the rice exporters to the North American country.

After the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) took effect, Vietnam’s rice export value to this market increased by more than 60% to nearly 9.5 million USD in the 2018-2022 period,  according to the Canadian Border Services Agency (CBSA).

In the first six months of this year, its value rose by more than 35% year-on-year, topping 6 million USD.

However, Vietnamese rice makes up just 3% in volume and 1.5% in value of the North American country’s import of this commodity and less than one-tenth of the market share of Thai rice. Therefore, ample room remains for Vietnamese rice since it has a competitive advantage in terms of price in comparison with other products of the same type.

In an interview granted to the Vietnam News Agency, Trade Counselor Tran Thu Quynh said the embassy in Canada has made great efforts to support Vietnamese businesses, particularly those of overseas Vietnamese, to access the retail system of the host country.

As a result, Vietnam's rice products have posted a strong growth in both quantity and export price since the beginning of this year, she said, adding that the price of Vietnamese rice reaches 800-830 USD per tonne on average.

According to Quynh, the number of businesses importing Vietnamese rice in the Canadian market is still modest and operating in some large cities such as Vancouver, Montreal, or Toronto. Previously, they often imported Thai rice but have shifted to importing ST25 brand, contributing to the growth of Vietnamese rice to this market, she noted.

Dinh Trung Dung, director of the Vietnam CanadaTrading Ltd, said that Canada is a large rice consumption market, demanding about 500,000 tonnes per year. However, this market also has strict requirements in terms of quality. Therefore, he said that there should be close coordination from all parties, including the local Trade Office, exporters and importers, to ensure stable quality, especially for the ST25 brand, as the Thais did for their high-quality Hom Mali rice.

The Vietnam Trade Office in Canada is also actively coordinating with domestic agencies, rice associations and exporters and importers to increase Vietnam's rice market share in the Canadian market, Quynh said, elaborating that importers will get support relating to market research to set up business expansion strategies.

Economic diplomacy helps tighten Vietnam - Cuba special ties: Deputy PM

Economy is a diplomatic aspect helping tighten the special friendship and cooperation between Vietnam and Cuba, Deputy Prime Minister Tran Hong Ha said while visiting establishments of some Vietnamese businesses and meeting with the Vietnamese community in the Caribbean country.

Ha was in Cuba to attend the G77+China Summit and pay a working visit to the country from September 15 to 18.

Reporting to the Deputy PM, Vietnamese Ambassador to Cuba Le Thanh Tung said about 260 Vietnamese people are living, working, and studying here, and that Vietnamese businesses form a bright spot of bilateral investment links.

He said as economic diplomacy is a focus of their activities, the representative agencies of Vietnam in Cuba have maintained close connections with Vietnamese firms in the country, kept constant information exchanges with them, and provided maximum assistance for the companies to overcome obstacles during project implementation and seek investment and business opportunities in Cuba.

Talking to representatives of the Vietnamese community and staff members of the embassy, Deputy PM Ha emphasised the particularly strong bonds between the two countries.

He affirmed that the Party, State, Government, National Assembly, and people of Vietnam never forget Cuba’s wholehearted support during wartime. They always treasure and stay determined to further intensify the countries’ traditional solidarity and comprehensive cooperation, and stay by the side of the Cuban people in their just revolutionary cause. Vietnam will keep assisting Cuba to weather current difficulties.

Ha recommended that aside from solutions to existing difficulties, Vietnamese businesses should carry out new forms of cooperation to capitalise on Cuba’s strengths and attainments in scientific research and biological and medical technology in order to generate substantive economic benefits.

On behalf of Party and State leaders, he spoke highly of efforts by the Vietnamese community and representative agencies in Cuba to help maintain and promote the special and exemplary solidarity between the two countries.

The Deputy PM expressed his belief that with the people’s strength and the world’s support, Cuba will surmount current challenges and difficulties and become a highly potential market.

He also called on Vietnamese people in Cuba here to continue engaging in cultural exchanges and the promotion of investment, production, and business activities.

Rice export prices tumble on stable market supply

The export prices of Vietnamese rice continued to see a fall recently amid stable supply sources in the world market, according to the Mercantile Exchange of Vietnam (MXV).      

Statistics unveiled by the Vietnam Food Association indicate that after two downward adjustments and one slight recovery over the past week, September 18 saw Vietnam’s 5% broken rice decrease by US$15 from the previous week to US$613 per tonne. Similarly, the country’s 25% broken rice also fell by US$15 to US$598 per tonne.

In the global market, Thailand’s 5% rice also dropped by US$7 to US$611 per tonne, while its 25% broken rice also endured a decline of US$13 to US$550 per tonne compared to the previous week.

Although the price gap with Thai rice has narrowed, Vietnamese rice continued to record the highest price in the world.

MXV has attributed the recent decline in rice prices over the past two weeks to stable supply sources in the global market.

Furthermore, India’s recent ban placed on rice exports has helped the country to ensure adequate supplies of essential foods such as rice and wheat.

Bangladesh also has sufficient rice reserves at about 1.7 million tonnes to supply people amid rising rice prices.

Meanwhile, major rice consumers have also actively purchased rice in the previous period for food reserves.

Moreover, the Indonesian Government recently increased rice imports in a bid to replenish reserves for the essential commodity.

Most notably, many rice producers will also enter the peak harvest season next month, a factor which is anticipated to provide a large amount of supply to the market moving forward. In particular, the Philippines, one of the world's largest rice importers, plans to reduce import taxes on this product in future.

These factors are therefore projected to pull rice export prices down in the coming months.

C05 asked to form specialized project to stop smuggled poultry

Deputy Minister of Agriculture and Rural Development yesterday sent formal dispatches to the Environmental Crime Prevention Police Department, the People’s Committees of Bac Giang Province, Lang Son Province, Hanoi about poultry of unknown origin. 

Accordingly, the Agriculture and Rural Development asked in the dispatch that C05 (under the Ministry of Public Security) closely cooperate with the market management forces, the customs, and the local veterinarians and authorities to prevent the trade and transport of poultry without clear origin or inspection from the veterinary agency.

C05 is also required to establish a specialized project to fight against smuggled poultry, to help handle or destroy the detected illegal poultry in order to stop possible epidemic distribution and ensure food safety.

As stated in this dispatch, on May 18, 2023, Prime Minister Pham Minh Chinh signed Dispatch No.426/CD-TTg about detecting, preventing, and strictly treating illegal imports of poultry and poultry products into Vietnam.

However, these law violations still happen complicatedly in Hanoi as well as the provinces of Lang Son, Quang Ninh, Hai Duong, Bac Giang. This is one major factor leading to the import of dangerous bird flu strains and other deadly infectious diseases into the country. These might create an epidemic and harmfully affect the domestic poultry industry.

HCMC’s credit growth in August put at 1%

Outstanding loans in HCMC last month rose by a slight 1% against the previous month, taking to 3.26% the city’s credit growth rate in the first eight months of the year, said the HCMC branch of the State Bank of Vietnam (SBV).

Bank loans in the city from January to August amounted to VND3,331 trillion, a 3.26% increase against the end of 2022 and a 5.62% rise over the same period last year. Of total outstanding loans, Vietnamese dong currency loans accounted for 94.7%, while foreign currency loans made up the remainder.

Short-term loans experienced higher credit growth than medium and long-term loans. Specifically, short-term loans edged by 4.92% versus the end of 2022, while medium and long-term lending rose by 1.88%.

These loans were primarily extended to businesses engaged in production, trade, services, and tourism, constituting 67% of the total outstanding loans in the city. The lending was carried out in conjunction with the disbursement of a financial aid package with low interest rates not exceeding 4% per year for eligible beneficiaries.

As of the end of August, 17,827 clients, including businesses, business households, and cooperatives, had been granted short-term loans in Vietnamese dong with incentive interest rates totaling VND188,000 billion. These included small and medium-sized enterprises, firms in supporting industries, hi-tech using enterprises, exporting businesses, rural agriculture enterprises, and those participating in the city’s investment stimulus program.

Around 25,000 borrowers had their debts rescheduled, with a total value exceeding VND34,000 billion. Lender banks also disbursed VND20,954 billion as part of a financial aid package with a two-percentage-point interest rate discount for 350 businesses operating in aviation, transportation, warehousing, manufacturing, tourism, accommodation, education, agriculture, forestry, and fisheries.

The branch of SBV in HCMC anticipates that the effectiveness of relief packages, coupled with recoveries in some business sectors and seasonal factors, will boost credit growth for the remainder of the year.

Vietnamese FDI performance remains steady amid global uncertainties: WB

Steady FDI commitment and disbursement reflects the continued interest of foreign investors’ in business opportunities in the Vietnamese market despite global uncertainties, according to the World Bank (WB) in its Vietnam Macro Monitoring edition for August.

The report outlines that the industrial production index increased marginally by 2.6% on-year in August, due to the continued expansion of industrial production for domestic consumption and a slight pickup in monthly export performances during the May to August period.

Retail sales grew by 7.6% annually in August, compared to 5.1% on-year in July, but still lower than pre-COVID levels of between 11% to 12 %. While sales of goods increased marginally, sales of services continued to register robust growth, largely due to the expansion of tourism and hospitality services.

Exports and imports of goods continued to contract by 7.3% on-year and 8.1% on-year respectively in August. However, monthly performances of exports and imports have been improving sequentially since May, therefore suggesting that the slump in exports may have bottomed out.

The report highlights that FDI performance remained steady amid global uncertainties. Indeed, FDI commitment reached US$1.9 billion in August, marking a decrease of 32% compared with July.

However, cumulative FDI commitment for the first eight months of the year amounted to US$18.1 billion, 8.2% higher than the same period seen in 2022. FDI disbursement remained steady, reaching US$1.5 billion in August, representing an increase of 23.6% compared with a year earlier. Cumulative FDI disbursement to August reached US$13.1 billion, comparable to the same period of 2022.

The CPI inflation ticked up from 2.1% on-year in July to reach 3.0% on-year in August, thereby reversing the preceding six months downtrend, with food and housing continuing to be the two major contributors.

Credit growth rose slightly to 9.4% on-year in August from 9.0% on-year in July, still far below the levels seen over recent years which reflects continued weak investor confidence and private sector investment.

The monthly budget balance registered a deficit of US $2.1 billion in August, while the cumulative budget deficit to August was estimated to be US$2.3 billion. As of the end of August, revenue collection decreased by 9.1% on-year due to slowing economic activities and public expenditure increased by 15.2% on-year, with this largely being due to an annual increase of 40.3% in public investment disbursement.

While the export slump may have bottomed out and domestic consumption remained resilient, credit growth continued to be slow, a factor reflecting weak private domestic investment and investors’ confidence.

According to WB economists, recent upward movements in terms of global energy prices warrants close monitoring of CPI inflation. This may also prevent the SBV from loosening monetary policy further as the continuation of tight global financial conditions should see flexible FX management to accommodate external conditions.

Moreover, further acceleration of public investment disbursement could support aggregate demand and economic growth in the short run, while focusing on priority green and resilient infrastructure and human capital investments which will help bolster long term economic development.

International cruise ships bring visitors to Ha Long

Many international cruise ships have registered to transport visitors to Ha Long Bay in the northern province of Quang Ninh in the coming time.

According to provincial authorities, cruise ships primarily visit Ha Long Bay from October to March. Foreign cruise ships, including Viking Orion, Silver Muse, Celebrity Solstice and Silver Whisper, have registered 18 trips to Ha Long during this period.

International cruise ships have returned to Ha Long from October 2022 following a long suspension due to the Covid-19 pandemic.

The Quang Ninh Department of Tourism said that before the pandemic, Ha Long Bay welcomed around 100 foreign cruise ships with between 150,000-180,000 passengers per year.

Ha Long International Cruise Port with a total investment of VND1.1 trillion was put into operation in 2018.

Quang Ninh has built more tourist sites and diversified tourism products to attract more visitors.

Ministry proposes regulations on IPs, EZs be upgraded to law from decree

The Ministry of Planning and Investment is seeking public comments for a draft law on industrial parks (IPs) and economic zones (EZs) to create breakthroughs for the development of IPs and EZs in the context that Việt Nam aims to increase high-quality investment.

Statistics showed that as of December 2022, there were 407 IPs in Việt Nam, including four export processing zones (EPZs), with a total area of around 128,684ha.

In addition, there were 26 border EZs in 21 provinces and cities with a total area of 766,000ha, together with 18 coastal EZs in provinces and cities with a total land and water area of 871,523ha.

The ministry said after 30 years of development, IPs and EZs have contributed significantly to the socio-economic development of Việt Nam and the country’s industrialisation and modernisation as well as creating jobs, improving human resource quality and increasing productivity.

However, there have been a number of problems arising during the development of IPs and EZs, the ministry said.

The ministry pointed out that limitations in planning and capital attraction, coupled with slow renovation of IP and EZ models, failed to meet requirements.

Linkages between IPs and EZs and with outside areas remains limited while the development of IPs and EZs has lacked sustainability and balance in economic, environmental, and social development. In addition, land use efficiency has remained low, the ministry said.

The limitations were caused by a number of reasons, one of which was an incomplete institution and legal framework related to IPs and EZs. The IPs and EZs need breakthrough developments to set a new development direction, the ministry said.

According to the ministry, the legal framework regulating the operation of IPs and EZs had not seen fundamental changes. Việt Nam only had a decree on managing IPs and EZs while the operation of IPs and EZs related to many other sectors, including planning, investment, enterprise, land, construction, environment, housing, and labour.

This was causing a lot of difficulty in the development of IPs and EZs towards new models, the ministry said.

The investment incentives and support policies of Việt Nam in general and of IPs and EZs in particular were not effective enough to direct investment flow, the ministry said.

The existing investment incentives for IPs and EZs had not taken into account the specific development conditions of each zone and there was no distinction between manufacturing and service sectors.

There was also a lack of policies to promote linkages of projects in IPs and EZs, which made it difficult to attract investment in IPs and EZs in localities with difficult socio-economic conditions, encourage the foundation of specialised zones or linkages among projects to establish value chains.

The inconsistencies in IPs and EZs policies also caused investors to hesitate to increase their investments.

The development of a law on IPs and EZs became pressing to improve the legal framework and ensure consistency in policies to create a favourable investment climate and promote production and business.

Under the draft, the ministry proposed six group of policies, including development orientations of IPs and EZs in line with regional and provincial planning, infrastructure, incentives for IPs and EZs in localities with difficult socio-economic conditions and incentives for projects which contributed to promote industry linkages, the promotion of new IP and EZ models, and incentives to enterprises and State management.

The draft law was expected to be submitted to the 15th National Assembly for consideration at the sixth meeting in October 2023 and passed at the seventh meeting in May 2024.

IPz and EZs across the country attracted nearly 10,400 domestic projects and 11,200 foreign–invested projects as of December 2022, with a total investment of VNĐ2.54 quadrillion (US$105 billion) and $231 billion, respectively, creating 3.9 million jobs and contributing 50 per cent to the country’s exports. 

Ministry proposes 10 per cent increase for container handling fees

The Ministry of Transport, in a recent draft circular, proposed a 10-per-cent increase in container handling fees, aimed at assisting seaport companies in acquiring more resources to improve service quality and for reinvestment.

According to the Việt Nam Maritime Administration (Vinamarine), Việt Nam currently has two deep-water seaports, Lạch Huyện and Cái Mép – Thị Vải, which are capable of receiving large tonnage container ships and competing with other ports in the region. There are also direct routes from these seaports to the EU and US markets, which help save time and costs for freight owners and ship owners.

However, Việt Nam's container loading and unloading charges remain lower than the regional average. Vinamarine's statistics show that the loading and unloading charges at deep-water seaports in Việt Nam are equivalent to just 59 per cent of those in the ASEAN region and neighbouring countries, and 85 per cent of Phnompenh Port, Cambodia – an inland port with a lower investment value.

Increasing container handling fees, a major part of terminal handling charges (THCs), is reasonable to help ports secure resources for reinvestment, expansion, and enhancing service quality, according to Vinamarine.

Under the draft, the floor THCs for deep-water seaports would increase to US$57 for the floor fee and $66 for the ceiling fee per 20-foot container. The proposed rates for 40-foot containers are $85 and $98, respectively.

To encourage the use of clean fuel, the ministry also proposed that ports which use clean fuel, supply shore power to ships, or participate in the international green transport corridor could apply fees 10 per cent higher than the regulated levels.

An additional increase of 10 per cent would also be granted to ports which could accommodate container ships of 160,000 DWT.

The draft elicited mixed opinions because THC was a major source of revenue for seaport companies, accounting for around 60-70 per cent.

Trần Khánh Hoàng, Deputy President of the Việt Nam Seaports Association, stated that with the increases in container loading/unloading charges, ports would need to invest more in enhancing service quality and infrastructure. He emphasised the importance of promoting the application of information technology to boost efficiency and reduce costs.

Vinamarine opined that the increase of 10 per cent was justifiable. If the draft was sanctioned, the THCs of ports in Việt Nam would still be 30-35 per cent lower than the region’s average, ensuring competitiveness.

Hoàng noted the importance of regularly reviewing THCs for prompt adjustments, rather than once every 5 years as is currently the case.

Phạm Quốc Long, President of the Việt Nam Ship Agents, Brokers and Maritime Services Providers Association, believed there was scope for THCs to be augmented by 15-20 per cent.

The proposal to raise container loading/unloading charges was also presented in 2022. However, the Government opted not to consider adjustments that year due to concerns about potential impacts on production and business, particularly in the aftermath of the pandemic.

Working for the Pilot Economic Cooperation Zone across the Việt Nam-China border in Quảng Ninh

Economic collaboration and border trade consistently remain focal areas for Móng Cái City (Quảng Ninh, Việt Nam) and Dongxing City (Guangxi, China), the Voice of Vietnam (VOV) reported.

Recent upticks in border trade further solidify the bond between the two regions, with aspirations to establish a prototype mechanism for the Việt Nam-China cross-border economic collaboration zone, under the guidance of the Central Government.

In the early days of September, on average, nearly 220 vehicles carrying import and export goods have been crossing through the Bắc Luân II border gate and the Km3+4 Hải Yên entry point in Móng Cái City, Quảng Ninh Province daily.

Following China's border reopening earlier this year, trade and migration activities between Móng Cái (Việt Nam) and Dongxing (China) have seen continued growth.

Total import-export turnover reached more than US$2.2 billion by the end of August, a year-on-year increase of about 5 per cent; contributing to the State budget revenue more than VNĐ1 trillion ($41.67 million), up 8 per cent.

Móng Cái is the only international border gate city in the country that has both land and sea borders with China.

Border trade has always been a bright spot in the cooperation between Móng Cái and Dongxing City in recent years.

Despite the severe impact of the COVID-19 pandemic in 2021, import-export turnover through Móng Cái border gate still reached over $4 billion, up 46 per cent.

Last year, the total amount of imported and exported goods reached 1 million tonnes, import-export turnover is nearly $3.3 billion, State budget revenue is nearly VNĐ1.65 trillion, the highest ever.

Hoàng Bá Nam, Secretary of the Móng Cái City Party Committee, stressed the significant role of cooperation, solidarity, and friendship in driving the growth of import-export and immigration via the Móng Cái border gate. He emphasised the strategic trust between the two sides in pursuing socio-economic development objectives while ensuring national defence and security.

"We've mutually agreed to construct a border gate line in Móng Cái and Quảng Ninh regions to serve as a benchmark for the national border gate system across the country," Nam told the VOV.

Construction starts on Việt Nam-China smart border gate project

Permanent Vice Chairman of Lạng Sơn Province Dương Xuân Huyên last Friday attended a ceremony to start work on Hữu Nghị (Việt Nam) – Youyi Guan (China) smart border gate project, organised by the People’s Government of the Guangxi Zhuang Autonomous Region.

Implementing a framework agreement on promoting the pilot construction of Việt Nam - China smart border gates, Lạng Sơn Province and the Guangxi Zhuang Autonomous Region have agreed to pilot the building of a smart border gate at the specialised route for transporting goods at Hữu Nghị – Youyi Guan border gate.

The project will be implemented by the Guangxi Zhuang Autonomous Region based on satellite positioning and 5G technology.

It uses automated guided vehicles (AGVs), automated crane equipment, and a smart map checking system.

It can also complete cross-border logistics information exchange between Việt Nam and China, allowing automatic customs clearance of goods around the clock.

Xu Yongke, Vice Chairman of Guangxi Zhuang Autonomous Region, said that once operational, the border gate will bring customs clearance activities between the two sides to a new level with “no closing” and “no waiting”, and help improve the efficiency of these activities.

Leaders of the two sides agreed to maintain regular, close and effective cooperation to soon finish the project, so as to promote economic and trade ties between Việt Nam and China. 

Lộc Trời Group to dissolve joint venture with Chinese company

Lộc Trời Group Joint Stock Company (LTG) has approved the dissolution of its joint venture with Viên Thị Hồ Nam Group (China).

Lộc Trời-Viên Thị Joint Stock Company was a joint venture between Lộc Trời Group Joint Stock Company (LTG) and Viên Thị Hồ Nam Group (China), established on October 17, 2018 in Hoà Tân hamlet, Định Thành commune, Thoại Sơn District in the southern province of An Giang.

Lộc Trời-Viên Thị Joint Stock Company has an initial capital of US$3 million, of which Lộc Trời Group Joint Stock Company (LTG) holds 51 per cent, subsidiary Thoại Sơn Food holds 1 per cent and Viên Thị Hồ Nam Group (China) holds 48 per cent.

This joint venture's main business lines are the production of plant seeds, research and development of biotechnology; agricultural science, hybridisation of new varieties, research and testing of new plant varieties.

Currently, Lộc Trời Group Joint Stock Company has 23 subsidiaries and two affiliated companies, operating mainly in the fields of rice production and wholesale. After the dissolution of Lộc Trời-Viên Thị Joint Stock Company, the number of subsidiaries owned by Lộc Trời Group will decrease to 22 units.

On the stock market, LTG shares are trading around VNĐ37,800 per share. Since the beginning of this year, LTG market price has increased 59.49 per cent. 

Supply-demand gap widens in sugar industry

With an aggregate sugar demand of 2.24 million tonnes, Việt Nam's sugar supply is projected to fall short of the figure by 626,000 tonnes in 2023.

Vũ Huy Phúc, a research specialist at the Insitute of Policy and Strategy for Agriculture and Rural Development, said the thirst for sweetness in the country was well reflected in the data for the food and beverage sector.

Sugar consumption by 40 typical food and beverage heavyweights, including Vinamilk and Acecook, was expected to reach 382,660 tonnes in 2023. They were forecast to consume 33.4 per cent more sugar in the next five years on grounds of output expansion and the roll-out of new products.

By 2028, their sugar demand was projected to reach 510,800 tonnes.

In spite of the country's strong sweet tooth, its farmers were turning their back on sugarcane growing. Alarmingly, sugarcane farms across the country dwindled to 165,900ha and sugarcane farmers halved in number in 2022.

The retreat of sugarcane farmers has led to a large supply-demand gap that could only be bridged by imports. Given that domestic supply meets merely 37.5 per cent of demand, the country had to import 1.23 million tonnes of sugar last year.

But the true scale of the supply deficit might be much greater than what the official data suggested because at least 816,530 tonnes of illegal sugar were also trafficked into the country from Cambodia and Laos during the period.

"Aggregate supply stood at 1.76 million tonnes by late July. That means the country would have to import around 625,000 tonnes to fill the supply deficit for this year," said Phúc.

The heavyweights suggested several measures to deal with the supply shortage. The first measure involves supportive packages to encourage sugarcane farm expansion and the cultivation of new high-yield varieties.

Another measure centers around the raise of import quotas for sugar to quench the thirst for sweetness through official imports. If the quotas are not raised, heavily subsidised sugar would be illegally transported to the country to pick up the slack, dealing a heavy blow to domestic producers.

The next measure is more straight forward: surveilliant agencies take actions to crack down on illegal sugar trafficking to safeguard domestic producers. In fact, illegal sugar has always been a major cause for domestic farmers to cut back on production.

Vietnam Stock Exchange: all securities companies must connect to the KRX system

The Vietnam Stock Exchange (VNX) is warning that any securities company whose IT system fails to connect to the KRX system will not be eligible to become a member of the VNX.

These companies will have their membership cancelled and they will be fully responsible for customers who open trading accounts at the companies.

The VNX has just sent an official dispatch to member securities companies about participating in testing and upgrading their IT system to connect with the KRX system.

The KRX system is an information technology system for managing and operating transactions on the Vietnamese stock market, signed by HoSE with the South Korea Stock Exchange (KRX) in 2012. The project aims to upgrade the technology system and infrastructure of the stock exchange in Việt Nam.

VNX requires securities companies to continue to proactively review and upgrade IT and human resources systems. This system needs to be able to connect to the KRX system and perform all the functions that are compatible with the KRX when it is put into operation.

As planned, the KRX system will be officially launched in December this year. However, it is expected that new features will not be fully implemented immediately. The KRX system will operate with basic features, and new features will be deployed step by step according to the roadmap.

Securities companies need to participate fully and on schedule in the system testing process as required. In case the company does not participate or fails to meet the requirements of the testing programme, it will be fined according to regulations.

Nguyễn Thị Việt Hà, Acting Chairman of the Hồ Chí Minh Stock Exchange (HoSE), said that the rate of testing the KRX system among members is still low, with just 25 out of 76 securities companies completing 100 per cent functional testing.

The KRX system 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.

Due to many reasons, such as the pandemic and the complex nature of the bidding package, the KRX system has not yet run as planned. 

Marine shipping stocks benefit from higher freight rates

Stocks of marine shipping companies have seen a breakthrough, buoyed by supportive policies and rising sea freight prices after hitting bottoms.

The global sea freight prices have started rebounding from the end of July, showing that the marine shipping industry is gradually escaping the 16-month correction.

Domestically, the Việt Nam Maritime Administration announced a draft to replace current regulations on the price framework for pilotage, wharf, dock and mooring buoy utilisation, container handling and towage services at Vietnamese seaports.

The draft proposes a 10 per cent increase in fees for the container handling service starting from the beginning of 2024 in some areas, including Hải Phòng Province, HCM City, and the Cái Mép - Thị Vải port cluster.

It also put forward to raise the price framework for loading and unloading import and export containers by 10 per cent for region I, as prices in this area are currently the lowest in the country.

Moreover, terminals capable of receiving ships over 160,000 DWT can impose a 10 per cent increase in loading and unloading service fees, meaning that terminals have the opportunity to add up loading and unloading fees by 20 per cent compared to now, according to the draft.

"Recently, seaport stocks have recovered significantly thanks to positive news such as the US good inventories hitting bottom, showing positive signs for Việt Nam's export activities, and the 10 per cent price increase proposal in container loading and unloading services," Lê Xuân, a HCM-based independent trader, told Việt Nam News.

In the near term, stocks of this group will continue to perform positively on the Vietnamese economic foundation, which is supported by macroeconomic policies, with export activities improving compared to the first six months, Xuân said, adding that investors should select ticker symbols that really benefit from the positive factors and own deep-water ports.

On the stock market, marine shipping stocks, such as Hải An Transport & Stevedoring JSC (HAH), Gemadept Corporation (GMD), Viconship (VSC), and Vosco (VOS) are actively traded and have jumped in recent trading sessions. GMD shares even peaked at VNĐ63,900 a share (US$2.63) on September 6, a rise of 46.2 per cent over the beginning of 2023.

The shipping industry sees an opportunity to grow again as global inflationary pressures gradually cool down, while Việt Nam's import-export activities show signs of improvement and demand for goods transportation in major markets such as America and Europe increases.

VNDirect Securities Corporation expects business activities of Hải An Transport & Stevedoring to gradually improve in the coming months, especially into 2024.

In the first half of 2022, the company's consolidated revenue reached nearly VNĐ1.3 trillion, a decline of 19 per cent on-year, and its profit after tax dropped 50 per cent to VNĐ216 billion.

The securities firm said that Hải An's ship exploitation capacities will decrease by 25 per cent this year, but will increase by 25 per cent next year, with profit after tax reaching VNĐ449 billion in 2023 and VNĐ516 billion in 2024.

The company's growth driver comes from positive market prospects and fleet expansion. Hải An currently has 11 container ships, with a total carrying capacity of nearly 16,000 TEU, accounting for nearly 40 per cent of the container shipping industry in Việt Nam.

It plans to receive four new container ships with a capacity of about 1,800 TEU in 2023 - 2024, bringing the total fleet capacity to more than 23,000 TEU.

Meanwhile, Gemadept's consolidated revenue decreased by over 2 per cent year-on-year to VNĐ1.8 trillion in the first six months of 2023, while its consolidated profit after tax reached more than VNĐ1.97 trillion, three times higher than that of last year.

Gemadept's profit increased sharply thanks to a gain of VNĐ1.86 trillion in financial revenue from the capital transfer deal at Nam Hải Đình Vũ Port.

SSI Securities Corporation expects that the total output of the company's port operations will reach 1.4 million TEU in the last six months of 2023, an increase of 9.5 per cent compared to the first half of the year.

The result for the year is estimated at 2.9 million TEU, down only 6 per cent over last year. But by 2024, the output is expected to reach 3.5 million TEU, an increase of 22 per cent.

For Vosco, its leaders said that the company regularly monitors the market, and evaluates and takes advantage of the growth of the product tanker market to sign contracts with high fees.

In the first six months of 2023, Vosco recorded a gain of more than VNĐ392 billion over last year in revenue to VNĐ1.59 trillion. However, profit after tax reported a fall of VNĐ241 billion to 74.1 billion during the period, due to the decline in the market for dry cargo ships and container ships.

The company will strive to take advantage of market opportunities and continue to carry out measures to control and manage costs, especially fuel and spare parts, to improve business results, and ensure safety during ship operation.

An Binh Securities Company believes that demand in major export markets such as the US, Europe, and China hit bottom in the second half of 2023 and gradually recover, helping the country's production and import-export output increase, leading to higher demand for marine shipping.

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