Although textile and garment export turnover in August continued to endure a fall compared to the same period last year, the apparel export market is in the process of showing gradual recovery while workers’ jobs are still being guaranteed.      

Pham Xuan Hong, chairman of the Ho Chi Minh City Association of Garments, Textiles, Embroidery and Knitting, assessed that the textile market ahead in remaining months of the year has warmed up and gradually stabilized. More specifically, although orders are still lacking, businesses continue to ensure jobs for workers in the fourth quarter, while revenue decline and difficulties are also being reduced.

This result is due to the recovery made in relation to consumer demand for textile products, whilst the markets also have new demands.

 “Although the market still faces plenty of difficulties in price, competition in small orders, and more difficult and complex designs, local businesses make great efforts to meet requirements, thus promoting consumption and contracts with partners," said Pham Xuan Hong.

According to the Vietnam Textile and Apparel Association, textile and garment exports reached nearly US$3.6 billion in August, a fall of 6% compared to the previous month.

The first eight months of the year witnessed textile and garment export turnover rake in US$26.1 billion, down 16% compared to last year’s same period. With this result, the apparel industry has completed 65% of the export turnover target of US$40 billion set for this year.

In the latest analysis report on the textile industry, SSI Research outlined that orders for the Vietnamese textile industry are expected to gradually improve from the fourth quarter of the year.

SSI Research forecasts that the selling price of exported garments will continue to remain low at about 20% lower than the average in the first half of 2022, whilst they will only slightly improve for FOB orders.

In particular, SSI Research experts have stated that the trend of orders with smaller volumes and faster delivery times, previous delivery times were up to two months and now can be shortened to three to four weeks, will last until 2024.

Alongside these market signals, a number of domestic textile enterprises are gradually stabilizing production.

TNG Investment and Trading Joint Stock Company is one of the businesses which recorded positive business results in August when it reached VND721 billion, an increase of 3% compared to last August.

At a macro level, the August macro report of Bao Viet Securities (BVSC) identified the industrial production index of the textile, fiber production, metal production, iron and steel production, and iron and steel production industries, beds, wardrobes, tables, and chairs have all seen a sharp increase again over the same period.

It can therefore be seen that the textile and garment market has recorded a gradual recovery thanks to the efforts of businesses in seeking orders and meeting increasingly difficult regulatory standards. Through the support of the Ministry of Industry and Trade in promoting market expansion, it is hoped that the Vietnamese textile and garment industry will soon "exit the bottom", gradually recovering production and export in the time ahead.

Support policy for high-tech investment hitting two targets: Insiders

Experts have called for policies to support investment in high technology, which they said will help Vietnam grasp the opportunities in luring foreign direct investment (FDI) and at the same time avoid becoming the venue of low-quality and small-scale projects.

Vietnam and the US have lifted up their relations to a comprehensive strategic partnership, which is an ideal condition for Vietnam to take advantage of the US’s friend-shoring strategy, thus achieving high economic growth and comprehensive development towards the goal of becoming a high-income country in 2045, according to economist Dr. Huynh The Du.

In reality, many US firms have taken specific actions to realise the strategy, including Apple, which has chosen India and Vietnam as their new production hubs.

However, according to experts, Vietnam should design investment support policies immediately to optimise the wave of production shift, especially in the high-tech field.

Without suitable adjustments, Vietnam may be exhausted in the FDI race, they held.

Experts from the Republic of Korea, a country with many large FDI projects in Vietnam, emphasised that if the country’s tax policies are ineffective, it will no longer maintain its attractiveness from the investment environment and strength in low-cost workforce.

Economist underlined that amid the increasingly fierce competition in FDI attraction, the most important thing for Vietnam is to maintain a stable legal environment and an attractive and transparent business investment environment. In particular, the country must have new support policies for investors who make great contributions to national development and use large number of workers, and investors in the fields of high technology and green energy.

They explained that the presence of high-tech "eagles" will attract satellite businesses, thereby forming and expanding the technology ecosystem, creating a spillover effect, and minimising opportunities for low-quality and small-scale projects.

Reality shows that although Vietnam is a bright spot in FDI attraction, the quality of FDI tends to reduce and the majority of FDI projects have small and medium scale.

A survey by the Vietnam Chamber of Commerce and Industry (VCCI) covering 1,282 FDI enterprises indicated that nearly 83% of FDI enterprises have capital of less than 100 billion VND. One-quarter of FDI enterprises employ less than 10 employees and 57.4% have less than 50 employees. Regarding revenue, nearly 25% of FDI enterprises earned less than 3 billion VND (122,875 USD) and 77.8% had revenue of less than 100 billion VND in 2022, it said.

Data from the Foreign Investment Agency under the Ministry of Planning and Investment showed that the average capital in each FDI project in Vietnam is about 15-16 million USD. Although the number of FDI projects increased, the total registered capital reduced as there were fewer large-scale projects, which is a worrying issue. 

In the context that FDI has and will continue to be one of the important growth drivers for Vietnam, insiders stressed the need for the country to take immediate actions to build its strategy to lure more investment with non-tax such as providing support in training and human resources development, research and development, or assistance in fixed asset investment.

Vietstock 2023 Expo & forum to be held in HCM City

Vietnam’s Premier International Feed, Livestock, Aquaculture & Meat Industry Show (Vietstock) Expo & Forum 2023 will take place at Saigon Exhibition and Convention Centre (SECC) in Ho Chi Minh City from October 11-13.

The event, the largest in Vietnam in terms of comprehensive solutions in the livestock, seafood, aquaculture and meat processing industries, will draw the participation of more than 350 enterprises from 30 countries and territories.

Duong Tat Thang, Director of the Department of Livestock Production under the Ministry of Agriculture and Rural Development, said taking part in the exhibition will help enterprises in the field to bolster collaboration and get access to the world’s latest technologies, increase sustainable livestock development and enhance products' values.

He said Vietnam’s livestock industry has improved its production capacity and strongly integrated with the region and the world. With the policy of opening the market, Vietnam has created an investment environment and favourable conditions for many large corporations and businesses in the world to invest and develop livestock business in Vietnam.

Rungphech Chitanuwat, Regional Portfolio Director – ASEAN at Informa Markets, said that Vietstock always renews itself with a variety of programmes and activities. Not only a B2B exhibition, Vietstock is a business bridge of the livestock industry in Vietnam and the region.

She emphasised that Vietstock is a connection and learning destination for businesses. Vietstock understands very well the needs of livestock households in Vietnam, so it provides bus-in programmes (transport support) and roadshow series in key livestock provinces. These programmes help livestock households in remote areas quickly access the latest techniques and products.

This year’s event will include international workshops which intend to provide in-depth knowledge as well as update the latest trends in the livestock industry. It is expected to attract over 11,000 visitors.

Vietstock 2023 will be held in conjunction with Aquaculture Vietnam 2023.

Being the highlight activity of Vietstock 2023, Vietstock Awards 2023 is endorsed by the Department of Livestock Production under the Ministry of Agriculture and Rural Development and will present 18 awards in the livestock field and 7 awards in the aquaculture sector.

The awards honour domestic and foreign businesses that have made outstanding contributions to the Vietnamese livestock industry. Vietstock Awards 2023 winners will be announced on the first day of the Vietstock exhibition at the Award Ceremony – Gala Dinner on October 11.

Huge state treasury yield makes banks difficult to reduce interest rates

Businesses have been demanding capital investment increasingly whereas capital stagnant in the State treasury will make commercial banks difficult drop their benchmark interest rates.

In her report to the National Assembly on the implementation of a number of resolutions of the 14th National Assembly on the banking sector, Governor of the State Bank (SBV) Nguyen Thi Hong said that the SBV regularly coordinates closely with ministries and sectors in operating monetary policy, performing to control prices of some goods and services to keep inflation and macroeconomy stable.

However, in recent years, state agencies have been disbursing still slowly compared to requirements, leading to a surplus of state funds. Subsequently, state budget revenues from tax collection and bond issuance are currently at a high level. Specifically, it accounts for 6.94 percent of the total means of payment while it was 6.42 percent and 4.97 percent at the end of 2022 and at the end of 2021 respectively.

This situation leads to a reduction in the amount of money in the economy, making it difficult for businesses to mobilize capital to invest in production and business activities as well as credit institutions.

Moreover, according to the report, when there is an increase in capital investment for production and business activities and economic recovery, capital stagnant in the state budget will make it difficult to reduce interest rates of the banking system.

Governor Nguyen Thi Hong explained for extending the time in submitting the Decree on a controlled testing mechanism for financial technology (Fintech) activities in the banking sector as per the Resolution No. 62/2022/QH15 dated June 16, 2022 on questioning activities at the third session at the 15th National Assembly.

Ms. Nguyen Thi Hong said that the State Bank has coordinated with relevant ministries and agencies to develop a draft decree, and then sought opinions from organizations and individuals to send it to the Ministry of Justice for appraisal. Based on the appraisal opinions of the Ministry of Justice, the State Bank of Vietnam has completed the draft decree and submitted the draft decree dossier to the Government in 2022. The draft decree dossier has been sent for comments to government agencies.

Corporate bond market focuses more on quality

The corporate bond market is developing towards a more in-depth approach, focusing on quality, said Nguyễn Quang Thuân, Chairman of FiinGroup.

At the Vietnamese Corporate Bond Market Development Solutions Seminar organised by FiinRatings on Thursday in Hà Nội, Thuân said that it was crucial to review and address the remaining problems of the corporate bond market.

The corporate bond market currently has a slow recovery pace, making it difficult to achieve a breakthrough in issuance volume in the next 12 months, he said.

“In investment, the higher the profit, the higher the risk,” said Trịnh Quỳnh Giao, CEO of PVI Asset Management Company (PVIAM).

“Bond interest rates depend on many factors, including the financial health of the issuing organisation, the stability of the industry, bond liquidity, payment guarantees from banks, and collateral assets,” she said.

“For real estate businesses, if they issue bonds with a 15 per cent interest rate but their project generates a 30-per cent profit, then that interest rate is not considered high, and even a 20-per cent interest rate is acceptable.”

“Usually, banks face stricter risk management by the State Bank of Việt Nam, so the possibility of losing capital invested in bank bonds is low, and therefore, interest rates range from 5-7 per cent,” she said.

According to Nguyễn Quang Thuân, Chairman of FiinGroup, transparency of information is the key issue.

“In reality, the average interest rate of corporate bonds in the first quarter of 2023 is 9 per cent, and there have been successful transactions with bonds issued at an interest rate of up to 14 per cent. Therefore, it should not be assumed that high interest rates are bad or low interest rates are good for the market,” he said.

In the second half of 2023, the corporate bond market is unlikely to recover as robustly as in previous years because bond maturity pressure will persist until the end of the year, according to VNDIRECT Securities Co.

In the third quarter of 2023, VNDIRECT's estimates indicate that more than VNĐ75.9 trillion of corporate bonds will come due, a rise of 14.9 per cent compared to the second quarter of 2023.

The real estate industry continues to represent the most substantial proportion, with nearly 43.6 per cent of the total value of bonds due in the third quarter of 2023. Concurrently, developers are grappling with construction delays due to liquidity challenges, potentially leading homebuyers to withhold mortgage payments and adversely affecting market sentiment.

According to the Việt Nam Bond Market Association (VBMA), there were 30 private bond issuances in August with a combined value of over VNĐ30.6 trillion. These had an average interest rate of 9.18 per cent per annum and a term ranging from 2 to 5 years.

However, September has seen no issuance tranche.

From the beginning of the year to mid-September, the total value of corporate bond issuances stood at nearly VNĐ140 trillion. This comprised 17 public issuances and 111 private issuances, which made up 88 per cent of the total issuance.

VNDIRECT estimates that in September 2023, corporate bonds worth more than VNĐ25.8 trillion will mature.

As of August 24, about 67 companies were on the list of late payment obligations for either interest or principal on corporate bonds, as per HNX's notification.

VNDIRECT's calculations suggest that the total outstanding bond debt of these companies amounts to approximately VNĐ173.68 trillion. This represents about 15.9 per cent of the total outstanding debt of individual corporate bonds across the market. The majority of these issuers belong to the real estate sector.

Measures sought to increase export competitiveness in agriculture

A seminar themed “Technology application and innovation for export competitiveness enhancement in the agricultural sector of Vietnam” was held by the Vietnam Chamber of Commerce and Industry (VCCI) in Hanoi on September 27.

The event is part of activities in the framework of the project "Enhancing the Export Competitiveness of Vietnamese Small and Medium Enterprises in Spice, Fruit and Vegetable Sub-Sectors" (SFV-Export) and a project to promote bilateral trade and investment cooperation between Vietnam and important and strategic partner countries.

It aims to assist businesses in raising the added value of Vietnamese agricultural products, building sustainable brands and boosting export capacity to key markets such as the European Union (EU) and other countries.

Addressing the seminar, Pham Duc Nghiem, Deputy Director of the Market Development and Science-Technology Enterprises Department under the Ministry of Science and Technology, provided insights into the research and application of science and technology, and innovation in the agricultural sector, which has received more and more attention nationwide.

He also pointed out difficulties facing the application of science and technology and innovation efforts in the agricultural sector, including small-scale production and a lack of policies to encourage businesses to engage in innovation and technology transfer in agricultural production.

According to Nguyen Van Hoi, Director of the Institute for Strategy and Policy Research under the Ministry of Industry and Trade (MoIT), the total export turnover of agricultural products in the first eight months of 2023 hit 16.9 billion USD, up 11.5% year-on-year. Of which, the export of vegetables and fruits, rice, cashew nuts, and coffee reached 3.55 billion USD (up 61.8%), 3.17 billion USD (up 36.1%), 2.23 billion USD (up 8.9%), and 2.94 billion USD (up 2.3%), respectively.

Despite integration achievements, agricultural exporters’ readiness for integration remains modest, and the exploitation of opportunities from international economic integration and the implementation of commitments in free trade agreements (FTAs) for developing the agricultural export market has not yet proved effective, he noted.

Vietnam still lacks policies to encourage and strengthen linkages between agricultural exporters and FDI enterprises to improve the combined strength in terms of capital, technology, and management expertise when joining global supply chains, Hoi stressed.

Participants emphasised the need for businesses, cooperatives and cooperative groups to strongly spur the application of technologies, IT, and AI in smart agricultural production, and in managing the production process in line with the value chain in association with traceability.

Hoi proposed solutions to expand the export of spices, vegetables and fruits, saying that attention should be paid to developing logistics services, reducing logistics costs, and increasing the application of IT in logistics activities for spices, vegetables, and fruits exports.

Vietnam – second biggest exporter of Cambodia

China, Vietnam and Thailand shipped more than 11.5 billion USD worth of goods to Cambodia, making up around 70.8% of the country’s total imports of 16.3 billion USD in the first eight months of 2023, according to the General Department of Customs and Excise (GDCE) of Cambodia.

China topped the list with 7.2 billion USD worth of exports to Cambodia or 43.9% of the total shipment, down 0.6% year-on-year. Imports from Vietnam, which fell 11.7% to 2.5 billion USD, represented 15% of the total imports, whereas shipments from Thailand shrank 25.8% to 1.9 billion USD or 11.9% of the share.

In the period, Cambodia reduced its spending on imports by 25.2%, the GDCE said, adding that Cambodia also imported products from Singapore, Indonesia, Japan, Taiwan (China), Malaysia and the Republic of Korea.

Vice President of the Cambodia Chamber of Commerce Lim Heng said that the imports from China, Vietnam and Thailand meet almost all of Cambodia’s needs, from food and daily necessities to electronics and large machinery, although the country also exports a lot of goods to those countries.

In the first eight months of 2023, the GDCE showed that Cambodia sold 3.4 billion USD worth of goods to China, Vietnam and Thailand, accounting for 21.9% of the total export value of 15.7 billion USD.

Hanoi’s programme promotes investment, business networking

A business promotion programme, which runs a 1,000m2 space for introducing investment opportunities, business networking, and partnership, opened in Hanoi on September 27.

Co-organised by the Hanoi Promotion Agency (HPA) and Hanoi Young Business Association (HanoiBA), it aimed to help enterprises and investors introduce their strength and potential, and showcase their products and needs for cooperation.

Bui Quang Minh, HanoiBA vice president, stated that the programme reflects the authorities’ attention to and support for the business community toward the expansion of their trading opportunities and socio-economic development of the city.

The space is divided into many sections, with about 100 businesses displaying their goods and services. Cultural and tourism promotion activities and trade-investment networking sessions will also be held on the occasion.

Nearly 1,000 visitors are expected to visit the space.

Vietnam’s L'amant Café signs MoU on production distribution in India

The Vinh Hiep Co.Ltd with coffee brand L'amant Café has signed a memorandum of understanding (MoU) on distribution of its products with a partner in India.

The MoU was inked by Thai Nhu Hiep, the company’s director and Shanmeet Singh Wahan, Director of Rayanssh Impex, a Indian company specialising in trading and distributing consumer goods.

The signing ceremony took place on the occasion of joining the 5th World Coffee Conference & Expo (WCC) in Bengaluru city, India.

The event marks a turning point in the journey of bringing Vietnamese coffee to international friends, especially to a country of more than 1.4 billion people. It is considered a "milestone" as customers can now enjoy specialty coffee from Vietnam right in India - a land famous for coffee.

L'amant Café is the first brand in Vietnam to be certified as meeting organic cultivation standards of the US Department of Agriculture and the EU. It has cooperated with more than 10,000 farmers in the fertile basalt plateau, where the climate and soil are suitable for growing specialty Robusta coffee trees.

Nine-month FDI attraction up 7.7%

Vietnam attracted nearly 20.21 billion USD in foreign direct investment (FDI) from the beginning of this year to September 20, up 7.7% year-on-year, according to the Foreign Investment Agency under the Ministry of Planning and Investment.

In the period, there were 1,924 newly-registered projects with a total capital of 10.23 billion USD, up 66.3% and 43.6% year-on-year, respectively.

Meanwhile, over 5.15 billion USD was added to 934 existing projects, down 39.7% and up 22.8% year-on-year, respectively.

The value of capital contribution and share purchase deals increased by 47% to 4.82 billion USD.

The manufacturing and processing sector continued leading in FDI attraction, with over 14 billion USD, down 5.9% year-on-year, followed by real estate with close to 1.94 billion USD, down 45%, and finance and banking with 1.54 billion USD, a 63.8-fold rise compared to that of the same period last year.

Vietnam records over 38,000 valid foreign-invested projects: FIA

There were 38,379 valid foreign-invested projects in Vietnam with a total registered capital of 455.06 billion USD as of September 20, reported the Ministry of Planning and Investment’s Foreign Investment Agency (FIA).

Their cumulative disbursement so far has hit 289.9 billion USD, or 63.7% of the total registered capital still in effect.

During January-September, FDI projects disbursed over 15.9 billion USD , up 2.2% annually and marking a 0.9 percentage point increase compared to the first eight months of this year.

Foreign investors poured capital into 19 out of 21 economic sectors.

The manufacturing and processing industry attracted the most foreign investment with nearly 273.9 billion USD, or 60.2% of the total capital. It was followed by real estate with around 67.4 billion USD, electricity production and distribution with over 38.4 billion USD.

In September, new projects from Liechtenstein raised the total number of countries and territories investing in Vietnam to 144.

Of them, the Republic of Korea topped the list with roughly 83 billion USD, ahead of Singapore with some 73 billion USD, followed by Japan, Taiwan (China) and Hong Kong (China).

Among all 63 cities and provinces across the country, Ho Chi Minh City took the lead in luring FDI with approximately 57.14 billion USD. Coming next were Binh Duong with over 40.3 billion USD and Hanoi nearly 39.5 billion USD.

SBV issues another 20 trillion VND worth of treasury bills

The State Bank of Vietnam (SBV) on September 27 continued to offer 28-day treasury bills worth 20 trillion VND (833 million USD) through an auction.

As a result, nine out of 12 participants won the bid at an interest rate of 0.65%, higher than the 0.58% on the previous day and 0.49% in the beginning of the week.

It was the fifth consecutive issuance of bills by the SBV, bringing the total value to nearly 70 trillion VND. These bills all have a 28-day maturity period and were offered via interest rate auction. The number of participants ranged from 11-17.

MayBank Securities believed that the central bank’s money withdrawal from the system via bill issuance is a measure to ease exchange rate pressure, bringing it to the target of /-3% set for this year. In August and September, the exchange rate increased rapidly and showed signs of exceeding the target.

"This is a careful calculation given the system's excess liquidity and a wise step as it does not need to sell foreign currencies like last year," it said.

According to Saigon Securities (SSI), the SBV's bill issuance could be seen as a way to adjust short-term liquidity within the system and is a common practice by central banks.

In the near future, the central bank may continue issuing bills, but this does not mean a reversal in monetary policy because liquidity regulation is a timed and flexible operation. Additionally, the effectiveness of intervention in exchange rate pressure depends on various factors, especially the trend of the USD index.

Coordinating council for Mekong Delta region opens first meeting

The coordinating council for Mekong Delta region opened its first meeting in Bac Lieu province on September 27 under the chair of Deputy Prime Minister Le Minh Khai, who is also head of the council.

At the meeting, which saw the participation of officials from central agencies and representatives from 13 regional localities, participants discussed specific mechanisms and policies for the region’s development, as well as the connectivity and coordination among projects that promote intra-regional and inter-regional links.

Deputy PM Khai affirmed the meeting was an opportunity to promote the potential and strength of the region, and put forward solutions to existing problems.

He highlighted the region's particularly important strategic position in terms of economy, culture, society, environment, defence, security, and foreign affairs of the country. 

According to the Deputy PM, located in the country's southernmost part, the Mekong Delta region is a bridge connecting Vietnam with other countries in ASEAN, especially those in the Mekong Subregion. It is also the country's key agricultural region with various key products, especially rice, shrimp, tra fish, and fruits, and plays a huge role in the ecological environment, water security, and food security for the whole country.

Chairman of the Bac Lieu provincial People's Committee Pham Van Thieu said the Mekong Delta is the country's largest agricultural production hub, contributing 50% of total rice production and 95% of rice exports, 65% of aquaculture production, 60% of fish exports, and nealry 70% of fruit output.

He stressed the need to have a synchronous, effective coordinating mechanism in line with law and planning approved by competent authorities for the region's fast and sustainable development.

Regarding orientations for the council in the near future, Deputy PM Khai urged ministries, sectors and regional localities to take specific actions to improve the operational efficiency of the regional coordinating council with a focus on modern, large-scale agricultural production, organic ariculture, the processing industry, preservation of agricultural and aquatic products, and product brand development.

He also urged the localities to promote economic restructuring, especially agricultural structure suitable for each  ecological area, effectively implement projects related to climate change adaptation. Other key tasks are to solve riverbank and coastal erosion, subsidence, saltwater intrusion, and drought, while developing a comprehensive strategy for protection and sustainabl use of Mekong River water resources.

In July and August 2023, Prime Minister Pham Minh Chinh signed decisions on the establishment of coordinating councils for six regions across the country - the Red River Delta region, the North Central and Central Coast region, the Southeast Region, the Central Highlands Region, Mekong Delta region and the Northern Midland and Mountainous region.

The councils are responsible for coordinating linking activities for regional socioeconomic and infrastructure development, with priority given to transport infrastructure. They will study and propose the formation of a fund for regional infrastructure development.

Development of Vietnamese brands in CPTPP member markets under discussion

Solutions to promote the development of Vietnamese brands in member countries of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) agreement were discussed at a seminar hosted by the Cong Thuong (Industry and Trade) magazine in Hanoi on September 27.

Ngo Chung Khanh, Deputy Director of the Multilateral Trade Policy Department under the Ministry of Industry and Trade (MoIT), said Vietnam has enjoyed stable growth in its exports to Canada and Mexico since the CPTPP agreement took effect in January 2019, even during the COVID-19 pandemic or amidst geopolitical fluctuations in the world.

Additionally, Vietnam’s trade surplus with the two markets usually accounts for one-third to half of the combined trade surplus with countries, Khanh stressed.

Khanh pointed out ample room to promote exports to Canada, Mexico and Peru, but noting that the image of Vietnamese brands in these markets still remains modest.

According to Trade Counselor Tran Thu Quynh from the Vietnam Trade Office in Canada, the North American country is now one of Vietnam's 10 most important trading partners globally.

According to data from the Canadian government, including transshipment through the US, Vietnam's exports to Canada in 2022 increased by 26.4% in trade value compared to 2021.

Notably, five years after the implementation of the CPTPP, Vietnam's exports to Canada rose to 9.9 billion USD in 2022 from 4.1 billion USD in 2018.

The data from Vietnam Customs indicates that Vietnam's export value to Canada increased by a remarkable 110% over five years, meaning that Canada is one of the billion-USD markets with the highest export growth among the CPTPP member countries.

Quynh said CPTPP serves as a lever to encourage businesses from both countries to pay more attention to each other's product structures and markets. It also helps promote the further development of supply chains, and transportation and logistics services between Vietnam and Canada.

However, the utilisation of preferential tariffs under the CPTPP still remains low. Up to over 60% of Vietnam's exports to the country are products from foreign-invested firms with their own brands, while Vietnamese businesses primarily export raw materials or processed products.

Quynh advised domestic exporters to promote connection in production, investment and development of technology and brand with Canadian partners, towards effectively exploiting the CPTPP agreement.

According to Quynh, apart from supporting businesses in trade promotion activities, participating in trade fairs and exhibitions, and seeking orders, the Vietnam Trade Office in Canada always pays heed to raising awareness of how to utilise the CPTPP in Canada, and benefits and opportunities provided by the trade agreement.

It also collaborated with Canadian ministries and sectors to hold seminars, thus helping local firms understand more about opportunities to partner with Vietnamese companies, she added.

Forum seeks solutions to boost growth of northern midland-mountainous region

With a special strategic location and great economic development potential, the northern midland and mountainous region needs to roll out suitable measures to lure more investment, thus optimising its advantages to rise stronger, heard a forum held by the Vietnam Chamber of Commerce and Industry (VCCI).

Addressing the event, VCCI Vice Chairman Hoang Quang Phong said that the northern midland and mountainous region is currently still a poor area with poor regional connectivity.

According to the Government’s plan for the 2021-2030 period, the region’s gross regional domestic product (GRDP) is expected to expand 8-9% per year. In 2030, the region’s economic scale is hoped to hit about 2.1 quadrillion VND (85.97 billion USD), with a per capita GRDP of 140 million VND, and State budget collection of 190 trillion VND.

This ambitious target is feasible and reachable, said Phong, stressing that a new mindset, new vision and development roadmap will help the region make breakthrough growth in the future.

Hoang Quoc Khanh, Permanent Vice Chairman of the People’s Committee of Lao Cai province, said that one of the reasons behind slow economic growth of the region is poor transport connections among regional localities, which hinders trade and investment activities in the region.

Khanh proposed that the Government pay greater attention to the implementation of major projects on road, rail, waterway and air transport infrastructure systems to promote regional connectivity.

Participants evaluated the region’s policies, planning and development connection in the region and pointed to difficulties and challenges facing the region, while highlighting investment opportunities for businesses and investors and give suggestions on solutions to promote the region’s sustainable growth to achieve the target set by the Government.

Hoang Truong Giang, Deputy Director of the Department of Regional and Local Economy under the Party Central Committee’s Economic Commission pointed to three problems of the region -  slow planning, poor transport infrastructure system, and slow administrative reform and improvement of the local investment and business environment.

Giang underlined the need for close coordination among ministries, regional localities and businesses in untangle knots, thus faciliating investment flows into the region.

ADB helps promote sustainable, inclusive water sector in Vietnam

The Asian Development Bank (ADB) and the Vietnam Water Supply and Sewerage Association (VWSA) have signed a memorandum of understanding (MoU) to further strengthen their cooperation in promoting a sustainable and inclusive water sector in Vietnam, according to an ADB press release.

The collaboration will support water utility companies in their ongoing transformation to become autonomous, service-oriented organisations. The partnership will also assist VWSA and its members to build resilience, promote inclusiveness, improve governance, catalyse financing, and foster innovation in the water and sewerage sector in the Southeast Asian nation through capacity building and project support activities.

“Our collaboration will help key players in the water sector secure climate resilience and adaptive capacity, thereby supporting a more integrated and inclusive approach to water, sanitation, and hygiene in Vietnam. We stand ready to assist VWSA through our knowledge sharing and financial support, and further promote private sector development and financing for improved water supply and sanitation across VWSA members,” said ADB Country Director for Vietnam Shantanu Chakraborty

The country’s water sector has achieved impressive gains in commercial transformation, equitisation, and operational expansion. Alongside tremendous opportunities to foster the sector’s growth, challenges remain due to rapid urbanisation and climate change. This requires further attention and funding from both the public and private sectors.

“Under its guiding principle towards global integration, VWSA appreciates the effective collaboration between the Association and ADB over the past years”, said VWSA Chairman Nguyen Ngoc Diep. “The effectiveness of our cooperation in recent time laid a strong foundation for the partnership, moving towards the establishment of a development assistance fund to support the implementation of key activities of the water supply and sewerage sector in Vietnam.”

ADB has been providing financial and technical support to Vietnam’s water sector, for example, through a 1 billion USD multi-tranche facility that supported the Vietnam Water Sector Investment Programme during the 2011-2020 period. The programme benefited participating water utilities such as Binh Duong, Da Nang, Dak Lak, Hai Phong, Ho Chi Minh City, Quang Nam, Thai Nguyen, and Thua Thien Hue.

100 enterprises join promoting Hanoi’s typical products, services, technology

The Hanoi Promotion Agency (HPA) and Hanoi Young Business Association (HanoiBA) on September 27 co-organised a programme to help enterprises showcase their products, services and needs for cooperation, drawing the participation of 100 enterprises.

HPA Vice Director Le Tu Luc said the programme introduces the city’s achievements in investment, trade and tourism promotion as well as connects local businesses to international investors.

In the first eight months of this year, Hanoi attracted 2.34 billion USD in foreign investment, accounting for 12.9% of the country’s total capital.

Investors from Japan, Singapore, the Republic of Korea, the US and the EU continued injecting money in big projects in Hanoi, mostly in real estate, the processing and manufacturing industry, construction, entertainment services, accommodation, food services, healthcare and education.

Zhejiang Trade Exhibition opens in Hanoi

The 2023 Zhejiang International Trade Exhibition and the 11th Zhejiang Export Fair, the largest and oldest expo independently held by China’s Zhejiang authority in ASEAN, opened at the Hanoi International Convention Centre on September 28.

The 4,000sq.m expo features 120 booths, displaying products in hardware and machinery, textiles and inputs, interior and exterior furniture, electronics and household appliances.

The three-day event is hosted by the Department of Commerce of Zhejiang province, and co-organised by Zhejiang Yuanda International Exhibition Co Ltd and the Vietnam National Trade Fair and Advertising Company (VINEXAD).

Deputy Director of the Asia-Africa Market Development under the Ministry of Industry and Trade  (MoIT) To Ngoc Son said this is the 11th year the two sides have coordinated to organise the trade promotion activity which marks the full recovery of economic and trade exchanges between the two nations after three years of hiatus due to COVID-19.

The event is expected to create more cooperation opportunities for businesses from both nations in the context that the global economy is facing a gloomy outlook, he said, adding Zhejiang province – an important gateway in China’s eastern region has an important role to play in the Vietnam – China trade, with Vietnam – Zhejiang trade revenue accounting for 10% of the total trade between the two nations in 2022.

Launched in 2011, the expo has been a platform not only for product exhibition and promotion but also for Vietnam and China to strengthen economic and cultural exchanges and multifaceted cooperation between their localities.

Last year, Zhejiang's exports to Vietnam reached 14.5 billion USD, an increase of 17.99%, while imports were 6 billion USD, up 14.21% over the same period last year.

The exhibition will run until September 30.

Vietnam to host world customs technology conference, exhibition

The 2023 World Customs Organisation (WCO) Technology Conference and Exhibition - the biggest annual international event of the WCO - will take place in Hanoi from October 10-12.

Speaking at the press conference introducing the event on September 28, deputy head of the International Cooperation Department under the General Department of Customs Hoang Dinh Trung said that this year, the event is themed “Embracing the Digital Age: Leveraging Technology, Fostering Innovation, and Nurturing the Next Generation of Customs Professionals”.

It aims to explore how innovation and technology can support customs in performing the functions of trade facilitation, protection of society and revenue collection while placing people at the centre of the digital transformation process.

Numerous technology-related topics will be discussed during the three-day event, including data analytics, machine learning and artificial intelligence, blockchain, cutting-edge detection technology, and the implications of the growing volumes of e-commerce on customs processes and procedures.

Besides, there will be about 50 booths which introduce new technologies of businesses related to the customs field such as technology solutions and support for customs operations, tax collection, digital transformation, security, anti-smuggling and trade fraud, and application of artificial intelligence in trade modernisation and development.

Trung said that the event is an opportunity for Vietnam to show its determination to accelerate digital transformation and appliation of modern technology towards e-government and digital government.

Vietnam Customs' hosting of the WCO biggest global event for the first time will be an opportunity for the agency to show its efforts in implementing digital transformation and building smart customs.

Conference looks for ways to boost exports of herbal products

Amidst the increasing demand for raw materials in the food, cosmetics, and pharmaceutical industries, and Vietnam’s participation in various free trade agreements, the country’s herbal products, particularly cinnamon and star anise, are well-positioned to capitalise on the opportunity for development, heard a conference in Hanoi on September 28.

Addressing the event, Vu Ba Phu, Director of the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade stressed that with a diverse and abundant source of medicinal herbs, Vietnam boasts great potential and advantages to develop this field into an economic industry.
The cinnamon cultivation area in Vietnam stands at about 150,000 ha, accounting for 17% of the global cinnamon area. Vietnam is the third largest producer and exporter of cinnamon in the world in terms of output, after Indonesia and China. Meanwhile, very few countries have star anise – the plant is widely grown in Vietnam and China.

The export markets for items and products from cinnamon, star anise, and medicinal plants have been increasingly expanded due to changes in consumer awareness.

Vietnam's farming and processing of cinnamon and medicinal plants have gradually moved to a sustainable development stage in the direction of gradually reducing raw products and traditional farming, increasing intensively processed and competitive products, and promoting value chain-based production.

This is an advantage that can help add value to Vietnamese cinnamon products and medicinal plants in the future, helping Vietnam become an important supplier of cinnamon and medicinal herbs in the global market, participants said.

Regarding the market, Vietnamese cinnamon and star anise products are heavily consumed in many countries in South Asia  (India, Bangladesh, Pakistan), the Middle East (the United Arab Emirates (UAE), East Asia (Japan, Taiwan (China), the Republic of Korea), the US and those in Europe.

Vietnam's export value of cinnamon and star anise has continuously increased over the years, reaching about 276 million USD in 2022. However, the figure remains modest compared to the market of medicinal herbs worldwide.

Bui Trung Thuong, Trade Counselor at the Vietnam Trade Office in India, said India imports around 11-12 million tonnes of spices annually. In the fiscal year 2022-2023, Vietnam exported 32,650 tonnes of cinnamon, accounting for 85% of India's cinnamon imports.

He advised businesses to strengthen their connection with Indian partners to learn from and apply the cinnamon processing technology from India, towards producing high value-added products.

According to Do Ngoc Hung, Trade Counselor at the Vietnam Trade Office in the US, Vietnam’s cinnamon export to the market reached about 50 million USD in 2022, accounting for 35% of the total cinnamon import turnover of the US.

Participants said that to compete in the global pharmaceutical market, synchronous investment is needed, from expanding scale and developing medicinal growing areas to applying science and technology to ensure quality standards and diversify products.

The Vietnam Trade Office in Canada recommended cinnamon and medicinal businesses consider participating in the 21st SIAL Canada – the largest food innovation trade show in North America - to be held in Montreal in mid-May 2024, and the Canadian Health Food Association (CHFA)’s nutritional food fair in early April, 2024 in Vancouver.

Hanoi launches promotion week for OCOP, agricultural products

Hanoi’s Department of Agriculture and Rural Development and People’s Committee of Ha Dong district on September 28 launched a week-long programme to promote One Commune – One Commune (OCOP) products, trade villages and safe agricultural products.

Over 1,000 products from Hanoi and 17 other localities across Vietnam are introduced at the event.

Speaking at the launching ceremony of the programme, deputy director of the city’s Department of Agriculture and Rural Development Ta Van Tuong said that the event helps connect OCOP product producers, and promotes trade and branding for their products.

There are more than 1,350 trade villages in Hanoi including 318 traditional ones which have great potential to develop OCOP products.

The city now has 2,167 OCOP products, accounting for 22% of the country’s total.

Agro-forestry-fisheries sector posts 22.5% rise in nine-month trade surplus

The agro-forestry-fisheries sector posted a trade surplus of 8.04 billion USD in the first nine months of this year, up 22.5% annually, reported the Ministry of Agriculture and Rural Development (MARD).

During the period, the total export-import turnover of agro-forestry-aquatic products hit 68.92 billion USD, down 7.5% year-on-year. Of which, 38.48 billion USD was from exports. 

In September alone, the export revenue of agro-forestry-aquatic products reached 4.8 billion USD, down 2.7% monthly and up 22% annually.

Due to a significant decrease in the export value of several key commodities, the total export turnover of the nine-month period fell by 5.1% annually to 38.48 billion USD. Specifically, the fisheries sector generated 6.64 billion USD, down 21.7%; forestry sector 10.44 billion USD, down 20.6%. However, agriculture and livestock sector experienced an increase in export value during this period.

China, the US and Japan remained the top three export markets, with the value of export to China accounting for 22.1%, up 13.8%; that to the US 20.7%, down 22.6% and that to Japan 7.6%, down 7.7%.

The MARD said it will continue developing both domestic and export markets while dealing with market-related issues to create favourable conditions for the export of agro-aquatic products to China, the US, the European Union and the Eurasian Economic Union.

It will also help exporters make full use of free trade agreements (FTAs), particularly the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA), as well as help firms secure new export contracts, protect trademarks and provide geographical indication for Vietnam's potential export products in foreign markets.

Vietnam Airlines to run new route connecting Da Nang to Bangkok

National flag carrier Vietnam Airlines on September 28 announced that it plans to launch a direct route between the central coastal city of Da Nang and Thailand’s Bangkok in November.

This move materialises the outcomes of talks between Prime Minister Pham Minh Chinh and his Thai counterpart Srettha Thavisin on the sidelines of the recent high-level week of the 78th United Nations General Assembly in New York, where the latter proposed the opening of additional flight routes between the two countries.

According to Dao Truong Luu, head of Vietnam Airlines representative office in Thailand, the opening of the new route aims to realise the desires of the two nations’ leaders. This is also a practical action by the carrier to mark the 10th anniversary of the Vietnam-Thailand strategic partnership.

Luu unveiled that Vietnam Airlines is actively coordinating with relevant authorities to launch the route linking the Da Nang international airport to Bangkok-based Don Mueang international airport in early November.

The airline now operates six daily direct flights connecting the capital city of Hanoi and Ho Chi Minh City with Bangkok via the Suvarnabhumi International Airport. The Danang-Bangkok route is expected to better meet the diverse needs of passengers and contribute to the development of cultural, economic, political, and social exchanges between the two countries.

Technologies to be showcased at Techconnect and Innovation Vietnam 2023

New technology products, solutions, and applications will be showcased at the Techconnect and Innovation Vietnam 2023, which is scheduled to take place in the northeastern province of Quang Ninh from September 29-30.

The event, jointly held by the Ministry of Science and Technology and the People’s Committee of Quang Ninh province, is expected to attract about 7,500 visitors in-person and 10,000 online with 200-250 booths.

Products and technologies on display are diverse in such areas as textile materials, microchips and electronic devices, green energy, logistics and supply chain, energy storage, and management and reuse of raw materials and waste.

Additionally, the event will feature new solutions in renewable energy, technology supply chain and biomedical equipment management systems, food and pharmaceutical technology, digital health, information technology, and the application of artificial intelligence to production processes in factories.

Representatives from enterprises, research institutions, and schools can also join forums discussing technology, energy, digital transformation, and green transition for sustainable development.

The event, held annually since 2011, aims to build a national innovation system for putting knowledge and technology into practice.

It helps connect technology supply and demand sides to exchange, discuss, and sign cooperation agreements and technology transfer contracts. The event also becomes a forum for businesses and experts to discuss and share information with policymakers, and promote application, technology transfer, and product commercialisation.

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