Diversifying sales and marketing channels has helped mooncake producers sell out products before the Mid-Autumn Festival arrives on Friday.

In the past, when e-commerce and social media were not strongly developed, mooncakes were sold through traditional channels such as supermarkets and local traditional markets. People could also buy them at booths companies set up on roads.

With the strong development of e-commerce platforms and social media, these have become the main channels helping mooncake makers reach their sales targets, often resulting in selling out products even before the Mid-Autumn Festival begins.

Instead of visiting mobile booths selling mooncakes in person, customers can now conveniently browse and purchase them online using their phones.

A plethora of advertisements and reviews about mooncakes are available on platforms like Facebook and TikTok, providing customers with information about various types of mooncakes in the market, from traditional to modern styles.

The recent data has proved that diversified sales and marketing channels have significantly boosted mooncake sales.

While sellers at booths reported unsatisfactory sales, some mooncake producers reported selling out many varieties.

Late last week, giant food producer KIDO Group announced a significant increase in its KIDO’s Bakery mooncake production this year compared to last year.

Speaking to Việt Nam News, it said many varieties of mooncakes have already been sold out.

Trần Lệ Nguyên, deputy chairman and CEO of KIDO Group, said KIDO's Bakery brand promotion activities are widespread across social media platforms, and it has garnered nearly 15 million views on TikTok.

In addition, almost 30 key opinion customers and influencers reviewed products and participated in live streams on TikTok and Facebook.

These attracted millions and millions of views.

The company’s hashtag, KIDO's Bakery, amassed 21 million views on TikTok.

The KIDO's Bakery brand has appeared in nearly 160 newspapers, television channels and popular fan pages since the beginning of the season.

E-commerce platforms like Shopee, Lazada and Tiki also facilitated marketing and distribution of the products.

KIDO’s Bakery mooncake production this year surged by 60 per cent and have been 10 per cent higher than the target, Nguyên said.

The company also strongly focuses on selling to corporate customers.

Nguyên said his company received over 650 orders from corporate partners throughout the country with large numbers of workers.

Another 2,900 orders were from State-owned and foreign companies, he said.

In addition to B2B business and retail booths, KIDO also introduced and sold its products at many small shops in small towns nation-wide.

The company said it has observed a shift in shopping behavior. Instead of buying mooncakes to gift partners, friends or relatives, many customers are buying this year to enjoy with their families.

This change has been advantageous since it has a retail distribution system covering the entire country, allowing it to meet this demand, it said.

Many mooncake brands have announced they have run out of stock. 

Hanoi, Shanghai businesses set up cooperation

The Hanoi Supporting Industries Business Association (HANSIBA) and N&G Group signed a cooperation agreement with a business delegation from Shanghai (China) in Hanoi on September 26.

Under the agreement, the sides will implement investment and production procedures in 2024 to implement the agreed cooperation for mutual benefits.

At the event, they exchanged opinions on cooperation orientations in development, investment and capital arrangement for N&G Group industrial parks.

With the agreement, the Techno Park production complex is expected to be formed with joint work of Hanoi and Shanghai in Hanoi South Supporting Industrial Park (HANSSIP).

The Techno Park production complex in Hanoi will be built according to international standards in order to attract high-tech projects from China and foreign countries, especially those in semiconductor.

A representative from the Chinese side said specific measures will be discussed after the signing to realise the cooperation, noting that more Chinese enterprises are expected to invest in Vietnam in the time ahead.

The Chinese delegation said it will continue studying investment opportunities in all the three regions of Vietnam to build more high-tech industrial complexes. 

Cashew exports predicted to strongly rebound by the year-end

Cashew exports are likely to strongly rebound by the end of the year after significant growth in both volume and value in the past eight months of this year, industry insiders have said.

Data from the Việt Nam Cashew Association shows that in August, the country exported nearly 64,000 tonnes of cashew nut, earning a turnover of US$343.4 million, an increase of over 38 per cent in volume and nearly 32 per cent in value.

The latest addition had brought its cashew nut exports over the past eight months of this year up to 400,000 tonnes in total with a value of over $2.25 billion, up 16 per cent in quantity and 13 per cent in quality.

Raw cashew imports also increased significantly over the past eight months, 21 per cent higher than the yearly target, according to the association.

In August alone, the country spent $370.4 million in importing over 367,200 tonnes of raw cashew, marking yearly hikes of 87 per cent in volume and 48 per cent in value.

Totally in eight months, raw cashew imports hit 2.18 million tonnes, worth over $2.56 billion, up 34 per cent in quantity and 14 per cent in quality year-on-year.

That did not include the amount of imported cashew nut, the association said, adding that the country imported over 69,300 tonnes of cashew nut, valued at nearly $391.5 million in the period.

General Secretary of the association Đặng Hoàng Giang attributed the recent sharp increase in cashew imports to the fact that cashew processing enterprises usually imported raw materials for the whole year with a production rotation of 1-1.5 years.

Because cashew plants were a seasonal crop that only bore fruit once a year, businesses needed to have sufficient raw cashews for processing.

He said importing a high quantity of raw cashews was a big issue as Việt Nam owned good processing technology and could make value-added products, thereby creating jobs for local people.

In the past, the cashew industry had a cyclical nature, with export peaks usually occurring in the third and fourth quarters.

The US and EU markets often strongly imported cashew nuts in the third quarter and the first half of the fourth quarter. Meanwhile, markets in the northeast Asian and Asian regions would start importing cashew nuts from the third quarter to the first quarter of following year.

However, after the outbreak of the COVID-19 pandemic and conflicts in some countries, the cyclical factor was only for reference, he said.

According to Giang, foreign consumers would spend more at the end of the year despite economic difficulties. Therefore, the cashew industry expected exports to increase even more strongly in the last months of the year.

The cashew industry has set a target of reaching $3.05 billion in exports by the year's end.

Phạm Văn Công, the association's chairman, said to boost exports to key markets including those that had free trade agreements with Việt Nam, it was important to strengthen promotions so that consumers know about Vietnamese cashew.

The association said the Ministry of Industry and Trade should help the industry promote its products at international fairs.

The association would organise a trade promotion programme in Japan at the end of this year, the International Cashew Conference in Quảng Bình in the first quarter of next year and a trade promotion programme in China next year, and it wanted the ministry’s support for them under a national promotion programme.

It also called for policies to help enterprises improve technology and equipment, speed up digital transformation, invest in intensive processing, grow organic cashews, make cashew shell oil, and diversify exports.

Since Việt Nam still imported large volumes of raw cashew for processing, the association called for conducive mechanisms and policies, especially in terms of bank credit, tax and customs. 

RoK famtrip views tourism products in Khanh Hoa

A famtrip delegation of the Gwangju Tourism Association of the Republic of Korea (RoK) paid a visit to Nha Trang city in the southcentral province of Khanh Hoa from September 23 to September 26 in order to survey tourism products.

During the course of their stay in Nha Trang, the delegation visited the headquarters of the Global Open Tour and took a tour on the five-star Scalife cruise ship to savour scenic views of sunset on Nha Trang Bay.

The group also visited a number of tourist attractions throughout the city, including the Do Opera House, Ponagar Tower, Long Son Pagoda, and the Bird's Nest House, whilst also taking a tour of local islands and scuba-diving to see coral reef at Bai Tranh beach.

Upon addressing a gala diner between the RoK delegation and the province’s tourism units on September 24, Hoang Van Vinh, chairman of Nha Trang - Khanh Hoa Tourism Association, emphasised that the memorandum of understanding (MoU) on visa exemption for Vietnamese tourists to Gwangju city is expected to create opportunities for more Vietnamese tourists to come to the RoK. Indeed, this will contribute to facilitating the launch of charter flights between the two cities in the near time.

Son Yong Man, director of the Gwanju City Tourism Department, said there is plenty of room to strengthen tourism connectivity between the two sides, adding that the signed MoU will further ramp up long-term co-operation on tourism development moving forward.

Gwangju city is located in the south of Jeolla province and is the sixth largest city in the RoK. The city boasts the largest and most modern bus station in the RoK, along with possessing a number of entertainment areas and culinary cultural spaces.

India strives to attract more Vietnamese tourists

Following the opening of nearly 50 direct flights each week, tourism activities between Vietnam and India have been significantly enhanced as the two sides still boast great potential for tourism promotion.

This statement was confirmed at a meeting held in Hanoi on September 25 among travel firms of both countries hosted by the Embassy of India in Vietnam.

Indian Ambassador to Vietnam Sandeep Arya stated that India which boasts many attractive destinations would continue to promote fresh tourism products to Vietnamese travelers, in addition to traditional tours.

The South Asian country will continue to launch communication campaigns to popularize Indian tourism and cooperate alongside Vietnamese travel firms to increase efficiency and attract more Vietnamese tourists, he shared.

The diplomat added that until the end of the year the Indian Embassy in Vietnam would enhance tourism connections between the two countries through organising FAM trips for travel firms.

Delegates at the event agreed that from the perspective of Vietnamese tourists, there remains little information available about Indian tourism. Many people view India as a pilgrimage tourist destination whilst some places are not safe at night, thus limiting the number of Vietnamese tourists to India.

In August this year the Indian state of Kerala welcomed Vietnamese businesses to survey tourism and build new products.

Practicing yoga in India proved to be a very unique experience, whilst the food found in Kerala is quite suitable for Vietnamese people. This region has developed tourism for a long time and has attracted many European visitors. In addition, there is also a direct flight from Vietnam to Kerala, making it convenient for many Vietnamese tourists.

Vietnam shares many similarities in culture and destinations with India. Besides, Vietnamese tourists have more and more options for tours in India which is seen as one of the most attractive markets for Vietnam to target.

Vietnamese pangasius exports to Germany endure consecutive declines

Vietnamese pangasius exports to Germany dropped by 18% in August to more than US$2 million, marking the third consecutive month that pangasius exports to the market have witnessed negative growth, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).      

VASEP experts noted that after experiencing impressive growth in the initial months of this year, pangasius exports to this market suffered contraction for three consecutive months in June, July, and August.

Despite global fluctuations, Germany was among the main top markets that increased imports of Vietnamese pangasius in the first five months of the year. It was also one of the country’s few export markets that recorded double-digit growth of between 20% and 84% in the reviewed period, while pangasius exports to other markets faced a downward trajectory.

Most notably, Vietnamese pangasius exports to Germany in March witnessed 2.3-fold rise compared to March 2022, marking the highest increase in exports to the market since the beginning of this year.

However, pangasius exports to Germany began to fall from June, with the export value declining 28% and 18% in July and August respectively compared to the same period last year.

VASEP experts say as the German economy is facing many difficulties due to economic recession, and high inflation, Vietnamese pangasius exports to the fasdious market are not likely to see robust growth moving forward.

According to VASEP statistics, pangasius exports to the Central European nation during the eight-month period increased by 19% to US$23 million against the same period last year.

Vietnamese Goods Week opens in France

Vietnamese Goods Week officially kicked off at the Système U supermarket chain in France on September 25, featuring the participation of 15 Vietnamese businesses.

The Vietnamese businesses are showcasing their high quality products such as agricultural staples, food, garments and textiles, hoping to further popularizing their brands in France.

Addressing the opening ceremony, Deputy Minister of Industry and Trade Do Thang Hai thanked Système U for co-organising the campaign which he serves as an effective channel to promote Vietnamese goods among French consumers.

Deputy Minister Hai emphasised that co-ordination among the Vietnamese Ministry of Industry and Trade, Système U, and T&T Food, an importer for distribution systems in France, in hosting the event is expected to create opportunities for Vietnamese businesses to directly export their products to France and other countries. 

For his part, Benoit Monfort, CEO of Système U Noisiel supermarket, spoke highly of the quality of Vietnamese goods that are the favourites with French consumers. He noted Vietnamese goods have been increasingly popular in Système U's system thanks to its high-quality coupled with reasonable prices.

The presence of Vietnamese goods at Système U supermarkets helps the chain have a diverse source of goods and creates favorable conditions for customers outside of Paris to enjoy specialties and discover Vietnamese culture, said the CEO.

So far Vietnamese products have hit the shelves of major French supermarkets such as Carrefour, E.Leclerc and Système U, opening up opportunities for Vietnamese goods to gain a firm foothold in the French market in particular and Europe in general.

Vietnamese coffee introduced at 5th World Coffee Conference & Expo in India

A Vietnamese pavilion with local major coffee brands opened at the 5th World Coffee Conference & Expo (WCC) in Bengaluru city, India, on September 25.

On display at the pavilion, which covers 144sq.m and is arranged by the Vietnam Coffee – Cocoa Association (VICOFA), are popular Vietnamese coffee products from major enterprises such as Trung Nguyen Group, L'amant Cafe, Olympics Coffee Joint Stock Company, and Van Tho Import-Export Ltd. Co.

Apart from attending the expo, Vietnamese exhibitiors join all conferences and B2B meetings, field trips to coffee factories in India.

India is identified as an important market for Vietnamese coffee exports, especially processed coffee products such as roasted, ground, and instant coffee. The VICOFA and Vietnamese businesses are planning to promote trade promotion activities, connecting and penetrating distribution chains in India with support from the Vietnamese Embassy in India.

The WCC is held every five years since 2001, and the 5th WCC was delayed in 2020 due to the COVID-19 pandemic. Bengaluru is the first city in Asia to host the conference.

Taking place from September 25-28 with the theme “Sustainability through Circular Economy and Regenerative Agriculture", the 5th WCC has seen about 2,000 delegates from more than 80 countries and territories. The WCC is an important forum for discussion and collaboration to build a sustainable coffee industry, from coffee beans to ready-to-drink coffee. Representatives and owners of coffee startups, coffee roasters, specialty coffee growers, and small farmers with the best products also showcase their products at the event.

Ha Nam's industrial parks attract 15 more FDI projects

Industrial parks in the northern province of Ha Nam have attracted 24 new projects so far this year, including 15 foreign direct investment (FDI)  projects worth 176 million USD, according to Head of the Ha Nam Industrial Parks Management Board Tran Van Kien.

Besides, the IPs have also drawn 9 domestic investment projects with combined registered capital of over 1 trillion VND.

Kien said that the total amount of capital poured into the new FDI projects and injected in operating ones has reached 259 million USD so far.

The official said that in order to lure more projects to local industrial parks, Ha Nam will continue to increase the introduction of its images and investment environment in local industrial parks to investors, while joining investment promotion activities inside and outside the country.

Since the beginning of 2023, the locality has sent its trade promotion delegations to Japan, Europe, the US and Singapore. It plans to send a team to the Republic of Korea in October, Kien said.

He said that the management board has proposed the establishment of a number of new industrial parks, including Dong Van V and VI industrial parks and Kim Bang 1 industrial park, while expanding Dong Van 3 industrial park to nearly 1,000 hectares.

Ha Nam has also worked hard to develop social infrastructure systems to serve workers and support businesses in human resources, he added.

Roadshow promotes Vietnam – Australia trade, education cooperation

The Australian Trade and Investment Commission (Austrade) recently organised a roadshow in the central province of Khanh Hoa to unlock Vietnam – Australia cooperation opportunities in the fields of education and trade.

The event, held as part of the activities to celebrate the 50th anniversary of the Vietnam – Australia diplomatic relations, drew more than 100 representatives from Australian universities, education establishments, food enterprises, as well as those from local branches, sectors, restaurants, hotels, retailers, importers, universities and colleges.

Rebecca Ball, Senior Trade and Investment Commissioner of Australia, said that the event is expected to serve as a booster for the Vietnam – Australia trade through new cooperation opportunities in education and agrifood.

Similar roadshows were held in March in Hanoi, Hue and Da Nang, attracting more than 400 businesses, associations and education establishments, producing encouraging outcomes, so Austrade has high expectations that the September programme will have noticeable impacts on bilateral trade, Ball said.

Meanwhile, Vice Chairman of the provincial People’s Committee Le Huu Hoang expressed his hope that the roadshow will enhance cooperation between education establishments, food companies, restaurants and hotels of Vietnam, including those in Khanh Hoa, and Australia for prosperous and sustainable development of both sides.

In the education session, Australian institutions introduced their expertise and excellence in education and training, and student support programmes from different states and regions.

In the agrifood session, Vietnamese and Australian businesses explored opportunities to increase trade and seek partnership. High-end Australian foods such as milk, seafood, meat and wine were on display.

Vietnam and Australia have enjoyed a strong, expansive, and enduring partnership in agriculture and education for years. Both sides are tightening bonds in agricultural investment, education partnership, education technology and research.

Australia is Vietnam’s seventh largest trading partner while Vietnam is Australia’s 10th largest trading partner.

The two-way trade in agriculture, fisheries and forestry products surpassed 6 billion AUS (4 billion USD) for the first time last year.

As for the education sector, Vietnam is Australia’s fifth largest source market of international students with 27,000 student enrolments and over 8,000 Vietnamese undertaking an Australian qualification in Vietnam.

There are 300 training programmes, which include articulation and joint-training programmes between Australian and Vietnamese institutions.

More than 80,000 Vietnamese alumni who graduated from Australian education institutions are currently working in Vietnam.

Vietnam promotes shift to green production lines

Investment in green factories is one of the first steps on the road to greening production lines, according to Douglas Lee Snyder, executive director of the Vietnam Green Building Council (VGBC).
 
Snyder stated, "The VGBC is supporting domestic and foreign businesses in accessing and implementing green standards within construction projects. The council in also stepping up in-depth training for a wide range of professional personnel in the country."

"Investing in a green factory is one of the first steps on the road to greening production lines. The move will create conditions for investors and large businesses to envision achieving the net-zero goal by 2050 in the industrial sector," he said.

Southeast Asian countries like Thailand and Singapore have focused on the development of green industrial projects since 2007. However, this trend only began to capture more attention around 2010-2011, according to the VGBC.

Over the past decade, 234 projects have been granted green certificates in Vietnam, out of a total of 484 projects applying for them, according to updated data from the Green Building Information Gateway. This figure remains relatively modest compared to other regional peers.

According to the Vietnam Chamber of Commerce and Industry, many businesses are not aware of their environmental responsibilities. In addition, they do not have enough personnel with a clear understanding of environmental regulations.

Specifically, up to 44 per cent of domestic firms and 38 per cent of foreign-invested enterprises have admitted that they do not fully comply with environmental regulations.

Eunseo Lee, head of FDI Industrial Projects and TM Roofing at Sika Vietnam said, "There are still many challenges to implementing a green factory due to a lack of knowledge, cost concerns, and doubts about quality when handing over the project."

To ensure the efficiency of a project, it is crucial to create a durable facade to conserve energy and limit the impacts on the surrounding environment. The roof is directly exposed to the elements, and as such, it absorbs heat from the intense sunlight and needs to mitigate the risk of leaks due to the heavy rain in Vietnam.

Sika Vietnam is a wholly Swiss-owned company under Sika AG Group. With a presence in Vietnam since 1993, it has introduced the Sarnafil roofing solution with three outstanding features, including waterproof roofing systems that have the ability to reflect UV rays (a heat source) and save up to 10 per cent of the total energy consumption for cooling.

In addition, Sika's roof support system is equipped with solar panels to take advantage of the tropical climate, saving energy costs and creating added value after only five years of operation. Meanwhile, Sika's green roofing solution boasts outstanding waterproofing ability, reducing the heat island phenomenon and creating a natural resting area for workers at the factory.

Lee noted that all three solutions have been applied to many projects with green certificates from LEED, LOTUS, and EDGE in Vietnam. Some prime examples include the reflective roof for Tetra Pak and the energy-saving roof for the supermarket chain Go!

Vietnam's 300 certified green buildings yet to reach net-zero

As Vietnam intensifies its focus on sustainability, the nation's progress is spotlighted with a modest tally of 300 certified green buildings. To date, no building in Vietnam has been designed, constructed, or managed to meet net-zero criteria.
 
During 2023 Green Building Week in Ho Chi Minh City on September 18, the Ministry of Construction (MoC) held a dialogue on the policies to promote the development of green buildings.

According to the MoC, while cities globally occupy just 3 per cent of the Earth's surface, they account for over 70 per cent of total greenhouse gas emissions.

To keep global temperature increases to 1.5 degrees Celsius or lower, urban areas must achieve net-zero emissions, and Vietnam's government has made a robust commitment to achieving this by 2050.

As a developing nation, Vietnam's economic growth has significantly strained both its infrastructure and environment, particularly in terms of housing demand, energy consumption, waste management, and escalating pollution.

In response to these challenges and in pursuit of sustainable, low-carbon growth, the government has initiated various policies to bolster green construction.

"The concept of green building began its journey globally in the 1990s and soon became a movement, setting the trend for construction and operational management in over 100 countries and territories. In Vietnam, the emergence of green buildings can be traced back to between 2005 and 2010," reported the MoC.

"As per the statistics up to Q2/2023, Vietnam boasts nearly 300 green buildings certified to international standards, including Lotus, Edge, LEED, and Green Mark, covering a combined floor area of around seven million square metres. Currently, the nation ranks 28th globally in terms of LEED-certified buildings," the report added.

However, Deputy Minister of Construction Nguyen Tuong Van remarked, "This figure is rather modest compared to the actual number of constructions and their operational potential, especially when considering energy usage, resource conservation, efficiency, and environmental protection."

To date, no building in Vietnam has been designed, constructed, or managed to meet net-zero emissions criteria.

The national programme for energy conservation and efficiency from 2019 to 2030, approved by Prime Minister Pham Minh Chinh in Decision No.280/QD-TTg dated March 2019, aims to certify 80 green buildings by 2025, with this figure rising to 150 by 2030.

Additionally, the MoC has launched a climate change action plan for the construction sector from 2022-2030, with a view to 2050, to fulfil Vietnam's commitments from COP26. Measures to encourage energy-efficient and green construction have been laid out in the 2020 Amendment to the Construction Law and Decree No.15/2021/ND-CP governing investment project management.

It is evident that green construction, sustainable development, and climate change are paramount in the urban development and construction sectors. Promoting green building ensures that urbanisation benefits both present and future generations, while also being sympathetic to the natural environment.

Nevertheless, leaders from the MoC acknowledge the challenges in advancing green construction, citing the impacts of slowing real estate growth, declining consumer demand, and hurdles relating to access to investment capital and the shortage of skilled project planning and management personnel.

Furthermore, there remains an absence of mandatory regulations for the labelling and certifying of green, energy-efficient building materials.

Real estate market urged to take heed from China

Although Vietnam’s real estate difficulties have not yet subsided, analysts believe it should avoid the most negative effects of property struggles stemming from China.

Despite concerns surrounding Evergrande Group’s financial struggles that continue to cause ripples in global investor sentiment, some experts say a domino effect is far off for Vietnam.

Last month, Chinese real estate group Evergrande filed for bankruptcy protection in the United States. The company made headlines around the world in 2021 when it revealed total liabilities had reached $300 billion, and the cash-strapped company struggled to pay suppliers and complete homes, with property revenues plunging.

Earlier this month, the company delayed making a decision on offshore debt restructuring to October, to allow more time to consider a fresh restructuring plan.

Trading in the company’s stock resumed on August 28 after being suspended for almost 18 months.

The issue has spread to other enterprises. Since mid-2021, companies accounting for 40 per cent of Chinese home sales have defaulted, according to analyst estimates, and some of the millions of Chinese people who put their savings in property-linked wealth management products face the prospect of not getting a refund.

“Evergrande’s properties were sold as a speculative investment, not sold as a place to live,” said Anne Stevenson-Yang, managing principal at J Capital Research in the US. “People purchased them because they thought the value would appreciate, so obviously the confidence game will only work as long as people keep buying.”

China’s property market was shaken again in recent weeks when another major developer Country Garden missed payments on two US dollar bonds and sought to delay repayment on a private onshore bond.

Damian Sung, institutional sales director for the Asian Bankers Club (ABC), told VIR that while countries like Cambodia and Malaysia, which have strong ties with China, might bear the brunt of the situation, Vietnam could emerge unscathed.

“Experts are leaning towards the idea that Vietnam’s real estate market will only experience a minor impact. The market is relatively compact, which helps limit the potential fallout,” Sung said. “Plus, Vietnam’s real estate sector has been showing resilience, with steady growth and increasing foreign investments in recent times. All of this combined lowers the chances of Evergrande’s crisis becoming the sole reason for a major shift in attention towards Vietnam’s real estate landscape.”

While confidence might waver temporarily, the market’s overall stability is likely to counter any prolonged setbacks, Sung added.

“Foreign investments have been flowing into Vietnam’s real estate sector, which has proven its ability to weather uncertainties. This stability makes Vietnam an attractive option, reducing the likelihood of a significant change in foreign investors’ involvement,” he said.

Meanwhile Xavier Jean, senior director of Corporate Ratings at S&P Global Ratings, said that Vietnam’s real estate market, like in China, remains largely dominated by domestic buyers rather than international investors.

“But regardless if a buyer is a domestic household or a foreigner, buyer confidence is the key ingredient to Vietnam’s real estate sector right now – confidence the developer will have sufficient funds to complete the flat or house, and deliver on time,” said Jean.

“In Vietnam, access to domestic bond markets is more difficult for the real estate sector. If the downturn is prolonged, banks may also start to become more selective in funding projects. In buyers’ minds, that means the possibility of further credit stress for the developers, uncertainty on timely delivery of the real estate purchase, and less incentive to invest in real estate,” he said.

However, Sung from ABC said that it is important to note that Vietnamese real estate stakeholders face similar risks to those in China.

“The way capital is generated from future property sales, similar to Evergrande’s model, could bring its own set of challenges. Financial limitations and incomplete qualifications among investors might lead to project delays and worries about debts. That’s why being cautious is crucial,” Sung said.

Moreover, Vietnam is not entirely immune to industry-wide risks. Smart financial management and strict regulations will continue to be crucial in maintaining stability over the long term and ensuring that investor confidence remains intact, he added.

Jean from S&P Global explained that the restructuring strategy of companies in the sector will have a bearing on how long the real estate downturn will last. “If the experience in China is a guide, a key ingredient to resuming growth is a sustainable recovery in confidence. That implies a broad and lasting perception that leverage in the sector has improved,” he added.

Vietnam Card Day 2023 to be held next month
 
The third Vietnam Card Day 2023 is set to take place at Hanoi National University of Education’s Stadium between October 6 and 8 with the theme of Bứt phá giới hạn (Break the limit).

The annual event is jointly held by Tiền Phong (Vanguard) newspaper and the National Payment Corporation of Vietnam (NAPAS) under the instruction of the State Bank of Vietnam (SBV), aiming to spread the innovation spirit based on digital technology to promote non-cash payments and digital transformation in the country.

At the press meeting held in Hanoi on September 20, Le Anh Dung, SBV’s Deputy Director of the Payment Department said: “Non-cash payment is an inevitable trend in the process of moving towards a cashless society and developing a digital economy, and Vietnam is no exception to that trend. New technologies and modern solutions in payment are being applied by banks such as contact and contactless chip card technology, QR Code.”

He added that banks have also promoted the issuance of physical and non-physical bank cards electronically through eKYC quickly, safely, and cost-effectively. The activities in the Vietnam Card Day 2023 will contribute to popularising and propagating the bank's new services and payment methods to the people, starting with young people - the future owners of the country. This is also an important goal in the National Financial Inclusion Strategy and the non-cash payment development project.

Nguyen Quang Hung, chairman of NAPAS said that the diversity and benefits of new payment methods have contributed significantly to the strong development of the e-payment sector in recent years.

Statistics showed that by the end of the second quarter of 2023, payment activities through NAPAS's network increased by 65.1% in number of transactions and 12.1% in value compared to the same period last year. Among them, cash withdrawal transactions via ATM in the second quarter of 2023 tend to decrease by 13.5% in quantity and 17.8% in transaction value compared to the same period in 2022.

The third Vietnam Card Day 2023 includes the following events a workshop on promoting card activities and future payment trends held on September 26; Vietnam Card Day exhibition from October 6-8.

Cooperatives need support to make a breakthrough

The collective and cooperative economic sector needs support policies to overcome challenges from the fast-changing world and create breakthrough development, experts have said.

Deputy Minister of Planning and Investment, Đỗ Thành Trung, said the collective economic sector was faced with a number of problems.

These included internal problems such as poor socio-economic conditions of members, weak qualifications and capacity of staff, and outdated infrastructure and technology.

Cooperatives also faced difficulties in accessing the Government's support in capital, land, technology, and market.

The boom of the fourth industrial revolution, increasing competitive pressure, and rapid international integration are raising a pressing need for the collective economic sector to make changes, cooperate with each other to expand production, enhance efficiency, and improve competitiveness for sustainable development, he said.

According to Nguyễn Thị Tuyết Minh, Director of the German Cooperative and Raiffeisen Confederation (DGRV), the support for cooperatives in the early stages of foundation plays a very important role in the future development of cooperatives.

Support policies should be understood as specific provisions integrated into the law, with consistency in application to create conditions for cooperatives to fully participate in the economy.

Additionally, cooperatives should be allowed to participate in support programmes for other types of businesses when they meet the requirements, she said.

An important solution is to create a suitable legal framework for cooperatives to access credit, which would serve as financial leverage to expand their production and business, without eliminating the basic principles of the cooperative model, especially the principle of self-reliance, Minh added.

Minh said the focus of the support should be on helping cooperatives to expand in scale, increase production efficiency, competitiveness, and move towards sustainable development.

Mai Quang Vinh, General Director of the Việt Nam Digital Economy Cooperatives Alliance, said that without the Government's support and a long-term vision, cooperatives with the bottleneck of limited management skills and resources would struggle to achieve breakthrough development.

According to Trung, the experience of countries around the world showed that public-private partnerships played an important role in the development of cooperatives. He pointed out that banking and financial institutions should be encouraged to invest heavily in cooperatives, especially in machinery, technology, and in finding markets for products of cooperatives.

The Cooperative Law 2023, which was passed in June and will take effect from July 1, 2024, is expected to pave the way for promoting the development of the collective economic sector in the new context.

The Ministry of Planning and Investment is in charge of developing detailed instructions to implement this law, Trung said, adding that the focus would be on improving the legal framework to create favourable conditions for cooperatives and enable them to access the Government's support and develop sustainably.

Statistics from the Việt Nam Cooperative Alliance showed that there are more than 29,000 cooperatives in Việt Nam, 70 per cent of which operate in agriculture. Cooperatives attract around 6.4 million members, have a total chartered capital of VNĐ54 trillion, or VNĐ1.86 billion each, and total assets of VNĐ187.75 trillion or VNĐ6.5 billion each.

There are also 125 cooperative alliances with an average revenue of VNĐ258 billion per year and an average profit of VNĐ8.9 billion.

Financial sector strongly focusing on digital transformation

The financial sector has been ardently advocating for digital transformation, as this endeavour will be a pivotal element in the national digital shift and will also bolster digital transformation across other sectors, according to officials.

At Vietnam Digital Finance 2023 (VDF-2023) with the theme 'Digital data: a driver for sustainable digital transformation in the financial sector', held on Thursday in Hà Nội, Nguyễn Đức Hiển, deputy head of the Party Central Committee's Economic Commission, said that both in the world and in Việt Nam, digital finance is in a period of explosive development with many diverse types of services.

Many studies have shown that digital finance improves the stability of the financial system and brings benefits to users of financial services, financial service providers, the government and the economy. It also helps increase access to financial services, especially for low-income groups, making an important contribution to financial inclusion.

For the financial industry alone, Hiển stated that in recent years, the Ministry of Finance has issued resolutions and decisions on the Ministry of Finance's Digital Transformation Strategy until 2025 with an orientation to 2030; and the Operational Plan of the ministry’s Digital Transformation Steering Committee in 2023 to promote digital transformation.

According to Nguyễn Việt Hà, Director of the MoF’s Department of Financial Informatics and Statistics, Prime Minister Phạm Minh Chính, who is also the chairman of the National Committee on Digital Transformation, in April this year, signed Decision No 17/QĐ-UBQGCDS promulgating the operation plan of the National Committee on Digital Transformation for 2023. Accordingly, the National Committee on Digital Transformation in 2023 focuses on directing and coordinating ministries, branches, and localities to continually promote digital transformation in the direction of bringing real and sustainable results.

Being considered as the ‘lifeblood’ of the economy, digital transformation in the financial sector will be one of the key factors for the national digital transformation and will help promote digital transformation in other industries, Hà noted.

In 2023, the digital transformation tasks for the entire nation in general, and the financial industry in particular, are very substantial, requiring high determination, immense effort, decisive actions and effective measures to achieve. For many consecutive years, the Ministry of Finance has consistently ranked first in the index of readiness for the development and application of information and communications technology (ICT Index), while it ranked second among ministries and branches providing public services in the Digital Transformation Index (DTI) in 2022.

The fields of tax, customs and treasury have always been at the forefront in implementing digital transformation, with notable results such as the electronic tax declaration, payment and refund system; and the implementation of 250 administrative procedures through the national single window mechanism.

Platforms for data construction and management have been developed to enhance compatibility between the information infrastructures of State agencies. This creates favourable conditions for electronic transactions between State agencies, organisations and individuals, while ensuring the sharing of financial sector data with other ministries, branches and localities.

To consistently maintain achievements and pursue digital transformation goals in finance and the State budget, Hiển stated that the MoF needs to guide its affiliates to champion digital transformation, and foster a digital government and society. This will help in reducing costs, creating favourable conditions for firms, and ensuring satisfaction for the people. 

State-owned groups keen on roadmaps for reform

Many state-owned enterprises are finding their growth potential curtailed, highlighting the need for regulatory reform and increased collaboration.

“In recent times, state-owned enterprises (SOEs) haven’t been contributing as much as they once did,” said Phan Van Mai, Chairman of the People’s Committee of Ho Chi Minh City, at last week’s national conference to address SOE production, business, and investment improvements.

In Ho Chi Minh City alone, there are almost 50 SOEs. As of July, these enterprises boasted total assets of $4.43 billion with an equity capital of $3.16 billion. Their collective revenues for the first six months stood at $1.33 billion, with a profit of $205 million.

Harnessing the vast resources of these SOEs is imperative for Ho Chi Minh City’s economic growth, Mai stressed, adding that the private sector, inclusive of both private domestic groups and foreign direct investment, have also been expected, and even tasked, to stimulate economic growth.

Such a predicament is not solely Ho Chi Minh City’s cross to bear. The decline has echoes globally, influenced by international economic instability, political turbulence, and domestic operational challenges.

Aggregate revenue forecasts for the nation’s near-850 SOEs anticipate a sum of $59.78 billion this year, marking 4 per cent more than projections. Similarly, pre-tax profits are expected to rise 9 per cent, with a 7 per cent uptick in contributions to state coffers compared to the annual plan.

Yet, as Minister of Finance Ho Duc Phoc said, compared to 2022, this year’s revenue for SOEs represents just half of the previous year’s figure, with a 47.3 per cent decrease in pre-tax profit and a 32.9 per cent reduction in fiscal contributions. To provide context, 2022’s figures reflected a 29 per cent surge in revenue and a 24 per cent uptick in pre-tax profit over 2021.

The diminishing contribution is not merely a product of tougher business climates. Deputy Minister of Planning and Investment Tran Duy Dong hinted at a less than optimistic outlook for the next five years.

“The sluggish pace of new projects for SOEs has not provided the anticipated boost in capacity. Presently, they contribute about 29 per cent to the nation’s GDP,” Dong added.

Voicing his concerns to the prime minister, chairman of Vietnam Electricity (EVN) Dang Hoang An noted that even though EVN’s investment this year ranked among the top of all SOEs, totalling $2.32 billion in pure investments and $4 billion inclusive of debt repayments and interest, it still pales in comparison to previous years.

Furthermore, he highlighted the slow pace of fund disbursement so far this year, putting pressure on the rest of 2023.

“The prime minister’s emphasis has been on leveraging the resources within SOEs, bringing these resources swiftly into the economy,” An said. “The only way forward is increased investment. However, the current regulatory framework stands as a significant barrier.”

In the energy sector, An noted that the existing investment procedures are overburdened with bureaucratic red tape, leading to sluggish decision-making.

“Every economic group has its decree from the government, coupled with another decree for financial management. With these regulations and more, it’s challenging to function,” he said.

And even if these bureaucratic knots are untangled, the progression of many tasks hampers efforts. The Ministry of Planning and Investment reports that approvals are going slowly for restructuring projects, strategies, and business operation plans for 2021-2025.

To date, a plethora of Vietnamese premier SOEs remain in anticipation, as their strategic and operational roadmaps have yet to receive the nod from the Prime Minister’s Office.

The State Capital Management Committee, the body tasked with supervising enterprise operations, has green-lit the restructuring blueprints for a mere four enterprises: Vietnam Oil and Gas Group, the Vietnam Forestry Corporation, Vietnam Airports Corporation, and Vietnam Maritime Corporation.

Telecoms behemoth Viettel stands out as an exception in this quagmire. Despite being the lone player with an endorsed business strategy, its chairman and CEO, Tao Duc Thang, has voiced his concern.

“The delays cast a long shadow over our entire operational framework and our investment prospects for the foreseeable future. In the absence of a strategic compass, we’re essentially navigating blind,” Thang said.

Thang believes that SOEs’ total assets, which amount to over $160.34 billion operating across various sectors, could be put to better use. “If we can synergise these resources, the enterprises can contribute more significantly to the economy. For instance, Viettel and EVN recently collaborated to expedite the Thai Binh 2 thermal power plant’s operations,” he said.

Vietnamese firm eyes to make deeper inroads into Venezuela

 The Venezuelan government is willing to create the most favourable conditions for Viglacera Corporation JSC of Vietnam to enter its market, considering this as a motivation to further strengthen the traditional friendship between the two countries, said Jorge Márquez, Minister of Office of the Presidency and Monitoring of Government Management of Venezuela.

In a recent reception for a visiting delegation of the Vietnamese construction materials company, Márquez, who is also Chairman of the Vietnam-Venezuela Intergovernmental Joint Sub-committee, emphasised that in the context of Venezuela's ongoing recovery and economic diversification efforts to reduce its dependence on oil, there is great potential for cooperation in basic construction, especially in producing construction materials.

During a working session with the delegation, Venezuelan Minister of Industries and National Production José Félix Rivas Alvarado stressed that the friendship and cooperation between the two countries’ parties and states have developed fruitfully, noting that Vietnam and Venezuela are in the most favourable time to expand their cooperation in areas, including the construction industry.

According to Viglacera Deputy General Director Tran Ngoc Anh, the firm is not only the largest producer of construction materials in Vietnam but is also listed among the top 20 global tile producers, which sells its products in over 40 countries worldwide, including markets with high-quality requirements such as the US, Europe, and Canada.

Regarding international cooperation, Viglacera has partnered with more than 500 businesses across the world. In Latin America, since 2018, the firm has invested in the Mariel Special Development Zone of Cuba, and at the same time, contributed capital to establish Sanvig - a joint venture company for producing construction materials in the country.

Anh expressed the desire that leaders of ministries and sectors of Venezuela will create favourable conditions for Viglacera to explore investment opportunities in the Latin American nation, and sell its products in the market.

During their working trip, the Viglacera delegation had a working session with Minister of People's Power for Housing and Habitat of Venezuela Ildemaro Villarroel, and representatives of the Venezuela-Vietnam Chamber of Commerce (CAVENVIET), and the Venezuelan Association of small- and- medium-sized enterprises; and visited several businesses operating in the industry of construction materials.

Vietnamese goods introduced in France

A Vietnamese goods week kicked off at Système U supermarket chain in Paris, the capital city of France, on September 25, with the participation of 15 Vietnamese businesses.

The event, which is co-organised by the Vietnamese Ministry of Industry and Trade, Système U Group and T&T Foods Company, aims to introduce Vietnamese products to French consumers.

In his remarks, Deputy Minister of Industry and Trade Do Thang Hai highly valued Système U’s initiative, saying that this event helps more French consumers know about Vietnamese goods.

It will open up prospects for other products, contributing to promoting direct exports to France and countries where the group's outlets are based, Hai went on.

Benoit Monfort, CEO of Système U Noisiel supermarket, said he appreciated the presence of Vietnamese goods as well as their quality, adding that they not only satisfy a large Vietnamese community but also meet the demand of French customers who prefer Vietnamese products.

Earlier, Deputy Minister Hai held a working session with Dominique Schelcher, President and CEO of Système U Group, during which he affirmed that Vietnam has become the choice of larger distribution corporations that intend to build a stable and sustainable supply chain.

The Vietnamese Goods Week, the first of its kind, offers a chance for close cooperation in the near future between Système U and Vietnamese businesses, he added.

Schelcher said that Vietnamese goods, with high quality and reasonable prices, are increasingly popular in the Système U's system.

He emphasised that quality and quality stability are the decisive factors to enter the French market, so Vietnamese businesses need to pay attention to these things when exploring market demand.

It is hoped that this initiative will mark an important step in cooperation between the Ministry of Industry and Trade of Vietnam and the group, contributing to the growth of two-way trade between France and Vietnam, Schelcher said.

Mexico issues preliminary conclusions on anti-dumping investigation into cold-rolled steel from Vietnam

The International Commercial Practices Unit (UPCI) of the Mexican Ministry of Economy has issued preliminary conclusions on the anti-dumping investigation into cold-rolled steel imported from Vietnam, the Ministry of Industry and Trade’s Trade Remedies Authority of Vietnam (TRAV) announced.

Accordingly, the margin of dumping ranges from 12.77%- 81.06%. Under the Mexican trade law, all concerned parties have 20 days from the date of the preliminary findings to submit comments and counterarguments.

This marks the second trade defence investigation initiated by Mexico against Vietnam, according to the TRAV.

Previously, Mexico also initiated an anti-dumping investigation into galvanised steel products in 2021. The final conclusion for this investigation is expected to be issued in January 2024.

To protect the legitimate rights and interests of businesses, the TRAV recommended that those involved in the production and export of relevant products continue monitoring the situation, fully comply with the requirements of the Mexican investigating authority, and maintain close connection with the TRAV throughout the investigation process.

Cargill inaugurates 28 million USD premix factory in Dong Nai

The US-based global food conglomerate Cargill has freshly opened its 28 million USD premix plant in the southern province of Dong Nai.

Located at the Giang Dien industrial park in Trang Bom district, the Provimi Premix factory spans 30,000 square metres and is capable of annually producing 40,000 tonnes of premixes - mixtures of vitamins, minerals, trace elements and other feed additives that are incorporated in the compound feed.

With an automation rate exceeding 95%, the facility, currently the most advanced of its kind in Asia, was built to expand and completely replace the old Provimi factory in Bien Hoa City.

At the inauguration ceremony on September 25, Acting Chairman of the Dong Nai People’s Committee Vo Tan Duc acknowledged Cargill’s efforts and determination in implementing the project and its corporate social responsibility particularly in food security, nutrition, sustainable development, and charity.

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