Thanks to high demand, Northern Europe is a promising land for Vietnamese agricultural products, according to experts who also underlined the need for domestic firms to ensure product standards to win this potential market.

According to the Vietnam Trade Office in Sweden, Vietnam mostly exported shrimp and frozen fish fillets to Northern Europe. Particularly, Vietnamese tra fish and black tiger shrimp have won a large market share in Northern Europe.

The EU-Vietnam Free Trade Agreement (EVFTA), signed three years ago, has made Vietnamese aquatic products more competitive, and provided more opportunities for Vietnamese exporters to directly ship their products to Northern Europe for higher prices without using intermediaries.

Data from the Ministry of Industry and Trade showed that Norway is one of the Northern European countries with a high demand for aquatic products. In the first five months of 2023, the country imported 252.57 million USD worth of the products. Vietnam is Norway’s sixth largest provider of the product in the reviewed period.

However, the market share of Vietnam in the Norwegian market dropped from 6.4% recorded in the first five months of 2022 to 4.9% in the same period of 2023.

Norway and Vietnam are the respective second and third largest seafood exporter in the world, but the two countries’ fisheries sector are not in the competition as Norway can export cold-water fish such as salmon, cod, king crab and sea shrimp to Vietnam, while Vietnam can supply tra fish and farmed shrimp to the European country. Vietnamese products still make up a large proportion in Norway’s seafood imports.

Besides Norway, in the first five months of 2023, Vietnam also shipped about 6.7 million USD worth of seafood to Sweden, and over 17.2 million USD to Denmark.

Along with aquatic products, coffee is also a promising product for Vietnam in the North European market. According to the Vietnam Trade Office in Sweden, people in Nordic countries consume the largest amount of coffee in the world.

Thanks to the EVFTA, the European Union (EU) is committed to protecting 39 geographical indications of Vietnam, including Buon Ma Thuot coffee. This is an advantage for Vietnamese coffee exported to the Nordic market.

At the same time, Vietnam has also exported fruit, cashew, and rubber to Nordic countries. In the first five months of 2023, Vietnam sold nearly 986,000 USD worth of fruit and vegetables to Norway, up 4.2% year on year, along with nearly 3.2 million USD worth of cashew, a rise of 6.2%.

The Vietnamese Trade Counselor in Sweden and Northern Europe, Nguyen Thi Hoang Thuy said that the three Nordic countries of Sweden, Denmark and Norway were among the top 10 countries with the highest per capita organic food consumption in the world in 2019. The world leader was Denmark with 344 EUR per resident, Sweden ranked fifth at 215 EUR, and Norway ranked 10th at 83 EUR.

Thuy advised domestic firms to focus on supplying natural food colour products to this promising market, and reminded them to focus on ensuring transparency in production and supply methods, product origin, product environmental impact, and creating interesting stories of their products.

Vietnam joins 12th World Chili Pepper Trade Fair in Italy

Vietnam is among exhibitors at the 12th edition of the World Chili Pepper Trade Fair in the city of Rieti, Italy, from August 30 to September 3, showcasing not only its best chili products but also other spices like pepper, tea, coffee, cinnamon and anise.

The annual event is part of the Vietnam - Italy Year 2023 to celebrate the 50th founding anniversary of bilateral diplomatic ties.

This year, it features more than 160 booths with about 450 chili varieties from all over the world displayed. Various cultural and culinary activities are also expected to draw hundreds of thousands of chili enthusiasts and foreign visitors.

Visiting the Vietnamese stall, Italian Minister of Agriculture Francesco Lollobrigida discussed with Vietnamese Ambassador to Italy Duong Hai Hung measures to promote bilateral agricultural cooperation.

Hung affirmed that with a market of 100 million people, Vietnam is a good choice for Italy to expand markets of agro-forestry-aquatic products.

Within the framework of the event, Hung attended a conference on food sovereignty, met with representatives of the Rieti Chamber of Commerce and visited several local businesses.

He affirmed that Vietnam and Italy share similarities in the economic structure with many small- and medium-sized enterprises. The two economies are complementary in terms of industries and products, and will bring great added value when cooperating with each other.

Hanoi maintains position as economic locomotive of northern region

Hanoi has made great strides across all fields, setting firm foundations for the capital's future development after 15 years of the administrative boundary adjustment under Resolution No 15/2008/QH12 of the National Assembly (August 1, 2008 - 2023).

Hanoi has become one of the capitals with large areas and populations in the world. Taking advantage of this, the municipal authorities have bolstered the city's development in a rapid, comprehensive and sustainable direction, maintaining its role as an economic locomotive of the country.

The city’s Gross Regional Domestic Product (GRDP) increased by an average 9.68% per year in the 2008 – 2010 period, and 6.67% per year in 2011-2022.

The city’s economy has revived rapidly after the COVID-19 pandemic. It recorded year-on-year growth of 8.89% in gross regional domestic product in 2022, higher than the target of 7 - 7.5%, according to the municipal Statistics Office.

Hanoi’s GRDP grew by 5.97% in the first half of 2023, 1.6 times higher than the national average. The city’s budget revenue rose by 22.9% over the same period last year.

In the 2023-2025 period, Hanoi will focus on accelerating the restructuring progress of the agricultural sector, renewing its growth model following the promotion of clean, organic, and ecological farming. It will also prioritise creating favourable conditions for businesses to invest in agriculture and rural areas to create more jobs and improve people's incomes.

Ministry proposes investment change to forest sector modernisation project

The Ministry of Agriculture and Rural Development has recommended that the Government adjust down the investment of a World Bank-funded project serving forest sector modernisation and coastal resilience enhancement from the initial 195 million USD to 95 million USD.

The ministry attributed the proposed adjustment to a reduction in the forest planting area and certain infrastructure projects, 

According to the ministry’s Management Board for Forestry Projects, the project was approved by the Prime Minister on April 21, 2017. It began to be implemented in the beginning of 2022.

The implementation time has been delayed by four years due to adjustment procedures, the negotiation and signing of loan agreements, historic floods in central provinces, and COVID-19 pandemic. Therefore, there have been many changes in terms of forest planting area compared to the initial commitments. The land earmarked for the project has decreased from 69,000ha to nearly 42,000ha.

Pham Hong Vich, deputy head of the board, stated that despite the reduction in the area for planting, restoration, and protection of forests compared to the original design, the overall goal of the project, which is to improve the management of coastal forests in eight localities, remains unchanged. This is because the remaining area covers coastal villages, and is designated as coastal protective forests.

Furthermore, the reduction does not affect the effective use of the project's fund. The reduced volume also corresponds to the amount of funding that the ministry is proposing to cut for the project, he noted.

According to Vich, the project has so far contributed nearly 4,000ha of coastal protective forests to a coastal forest protection and development programme serving climate change adaptation and green growth promotion for 2021-2030. It has also invested in 23 forest protection works, improved livelihoods, and increased income for 25,000 beneficiary households.

The project has been implemented in the eight provinces and cities of Quang Ninh, Hai Phong, Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, and Thua Thien Hue.

Newly-established property businesses drop by over 53%

The number of newly-established real estate businesses stood at 3,066 in the first eight months of this year, a decline of 53.4% over the same period last year, according to the General Statistics Office (GSO) under the Ministry of Planning and Investment.

Meanwhile, the number of dissolved property firms was 855, up 10.8% year-on-year.

A total of 1,721 realty businesses resumed operations by the end of August, a year-on-year increase of 102%. However, the number of newly-established businesses in this field still decreased sharply.

Nguyen Tho Tuyen, chairman of the  BHS Group, attributed the drop in new realty businesses to the fact that some real estate developers and brokers have had to operate idly or resort to temporary closure due to "stuck cash flows".

Up to 70% of brokers have switched professions, he continued.

A  study by the BHS R&D office on the real estate brokerage industry in  Hanoi and Ho Chi Minh City showed that the number of real estate trading floors that dissolved or temporarily ceased operation reached nearly 50%.

Nguyen Van Dinh, chairman of the Vietnam Association of Realtors (VARS), said that up to 20% of trading floors face the risk of dissolution or bankruptcy and 40% of trading floors are struggling to maintain operations.

According to VARS, if the difficult situation in the real estate market doesn’t improve, the number of businesses at risk of bankruptcy will continue to increase.

Meeting held to beef up Vietnam-Argentina trade-investment ties

The Vietnamese Embassy in Argentina and the Argentine Chamber of Commerce for Asia and the Pacific have jointly organised a meeting with local businesses in a bid to promote trade and investment opportunities between the two countries.

The August 30 event, held as part of the activities marking the 50th anniversary of the Vietnam-Argentina diplomatic relations, gathered close to 30 enterprises operating in the industries of food, chemicals, high technology, logistics, fertilisers, and medicines.

In his remarks, Ambassador Duong Quoc Thanh stated that Vietnam is a peaceful country with a stable political environment and a reliable destination for foreign investors.

The Vietnamese Government always creates favourable conditions for both domestic and foreign enterprises to carry out investment and trade activities in the best possible manner suitable for the capabilities of each party, said the diplomat.

Currently, Vietnam is the 6th largest trade partner and the 5th largest market of Argentina in Southeast Asia. It is also a key partner in Argentina's South-South cooperation in the region. Meanwhile, Argentina is the 3rd largest trade partner of Vietnam in Latin America, with their bilateral trade continuously increasing from 316 million USD in 2007 to 4.5 billion USD in 2022.

Thanh expressed his hope that the meeting will be an opportunity for both sides to present new initiatives, discuss specific proposals to expand the scope of cooperation, diversify the trade of goods, and enhance collaboration across various fields in the time to come.

At the meeting, representatives from the chamber and the business community exchanged their experiences in trading with Vietnamese partners. They highlighted areas of strength where each country can complement each other and discussed ideas to promote partnership with Vietnamese enterprises.

Vietnamese Trade Offices abroad urged to promote mechanical product exports

The Ministry of Industry and Trade (MoIT) on August 31 held a workshop on promoting the export of Vietnamese mechanical products.

Representatives from localities across the country and Vietnamese Trade Offices abroad attended the workshop online and in person.

Speaking at the event, Director of the ministry’s Vietnam Trade Promotion Agency (Vietrade) Vu Ba Phu said that mechanical engineering is one of the industries that plays a driving role in the growth of the national economy.

Recently, the mechanical industry has experienced remarkable growth, increasing the localisation rate, creating a driving force for industrial and economic development, and millions of jobs.

According to the MoIT, the industry has space to thrive but mechanical enterprises still find it difficult to diversify and expand the markets because their competitive capacity and branding development are not strong enough to reach potential customers.

Therefore, the Government and the Prime Minister have urgently directed ministries, sectors, and localities to implement solutions to remove difficulties and boost the growth of the industry.

Nguyen Chi Sang, Vice President and General Secretary of the Vietnam Association of Mechanical Industry (VAMI), said that although the mechanical industry's import and export are large, they are mostly from foreign-invested enterprises.

He said foreign customers see limitations of Vietnamese mechanical enterprises, for example, modest skills in searching for consumers, no traditional products, and limitations in using e-commerce for production and business.

Moreover, Vietnamese enterprises mostly compete with cheap labour, rely on material sources from China, and have not mastered the provisions in commercial laws of markets such as the EU, the US, and Africa.

The association called on Vietnamese trade offices in foreign markets to support domestic mechanical enterprises, especially in providing market information. At the same time, the MoIT needs to support domestic businesses in connecting with foreign buyers, and participating in e-commerce channels.

According to Truong Thi Chi Binh, Vice President and General Secretary of the Vietnam Association for Supporting Industries (VASI), enterprises saw the number of orders decreasing by 20% and some even suffered a 40% fall in their orders. However, the mechanical sector has new customers due to the shift in production.

She said the capacity of domestic enterprises has seen positive changes, particularly in the production stage. Vietnamese enterprises are capable of competing with Chinese and Indian companies in this regard.

Ta Duc Minh, Vietnamese Trade Counselor in Japan, said that Japan is implementing a new policy to avoid supply dependence on China and expanding its imports from ASEAN countries, including Vietnam.

On the other hand, Japanese mechanical enterprises are mainly small and medium-sized and long-standing. The owners of the enterprises find it difficult to transfer the production because of the country’s aging population. So, they are looking to Vietnam for production cooperation opportunities, he said.

However, the mechanical engineering industry in Vietnam is still dependent on imported raw materials, he said, adding that domestic mechanical enterprises need to invest more in research and product development to participate further in the global supply chain.

Slovenia pledges favourable conditions for Vietnamese firms

President of the Slovenian Chamber of Commerce and Industry (GZS) Tibor Simonka has affirmed the readiness to cooperate with Vietnam to create conditions for the two countries’ enterprises, while meeting with Vietnamese Ambassador to Austria and Slovenia Nguyen Trung Kien.

Kien had a working session with Simonka on the occasion of his attendance in the 18th Bled Strategic Forum in Slovenia on August 28 - 29.

He lauded the growing economic ties between the two countries, especially since the successful visit to Vietnam by Deputy Prime Minister and Foreign Minister of Slovenia Tanja Fajon in May.

Amid the post-pandemic economic - trade crisis facing both sides’ enterprises, enhancing the connectivity and unlocking cooperation opportunities for the Port of Koper of Slovenia and the ports of Ho Chi Minh City will help Vietnamese firms, as well as those in Asia, deal with soaring transportation costs and reduce the delivery duration, he added.

Simonka affirmed that his country is ready to cooperate with Vietnam to create favourable conditions for both countries’ enterprises in the areas boasting rich cooperation potential such as tourism, clean energy, environmental technology, pharmaceutical and medical equipment production, labour export, and plastic waste treatment.

He said thanks to the EU - Vietnam Free Trade Agreement (EVFTA), enterprises of both countries have further expanded business and trade partnerships, with Slovenia’s exports to Vietnam expected to top 22.6 million EUR (24.48 million USD) in 2023, up 58% from last year.

The GZS leader also pledged support for and continued coordination with the Vietnamese Embassy to increase activities facilitating bilateral economic and business ties. He also affirmed that he will keep proposing the Slovenian Government soon ratify the EU - Vietnam Investment Protection Agreement (EVIPA).            

The annual Bled Strategic Forum, held in Bled city, is the biggest political - diplomatic forum in West Balkan region, gathering hundreds of senior officials of EU countries and others in the world.

Hai Phong opens Vietnam - RoK trade promotion week

A Vietnam - Republic of Korea (RoK) trade promotion week kicked off in the northern city of Hai Phong on September 1.

The 10-day event, held by the Lala Station JSC, the Shining Media company and the Hai Phong Radio and Television Station, is among the activities marking 31 years of the two countries’ diplomatic ties. It aims to boost trade and investment links as well as cultural exchanges between the countries while introducing both sides’ economic potential, history, culture, and tourism.

The week features 94 booths of localities and businesses from the two countries, including over 60 of Vietnam and 30 of the RoK. The RoK side showcases a variety of its typical products such as fashion, household appliances, and beauty care items.

Besides, a wide range of activities such as folk games and Dance Cover Kpop 2023 will also give visitors a chance to experience the Vietnamese and Korean cultures.

In his opening remarks, Director of the Hai Phong Department of Industry and Trade Nguyen Van Thanh said during the over 30 years of diplomatic relations, the Vietnam - RoK relations have enjoyed development breakthroughs, from the comprehensive partnership set up in 2001 to the strategic partnership in 2009 and the comprehensive strategic partnership in 2022.

In Hai Phong, there are 105 RoK-invested projects worth about 9.97 billion USD at present, making the Northeast Asian country the biggest investor in terms of both the project number and investment capital here.

In 2022, those projects earned 14.5 billion USD in revenue and 13.5 billion USD in export, contributed 3.57 trillion VND (148.2 million USD) to the state budget, and created jobs for 41,000 people, statistics show.

In addition, the local projects funded through the RoK Government’s official development assistance (ODA) also have proved fruitful, Thanh added.

Vietnam Czech Republic’s most important trade partner in ASEAN: minister

Minister of Industry and Trade of the Czech Republic Jozef Sikela on September 2 affirmed that Vietnam is currently his country's most important trade partner in the Association of Southeast Asian Nations (ASEAN).

Sikela cited that two-way trade in 2022 reached a record level of 2.3 billion USD, and is expected to set a new record this year.

According to him, in the first half of this year, the Czech Republic’s exports to Vietnam increased by 48%, while that of the Southeast Asian country to the Czech Republic rose by 7%.

He attributed the results to strong cooperation between the governments and businesses of the two countries.

The minister said that after his visit to Vietnam in February, his ministry is planning to hold the 8th meeting of the Czech-Vietnam Economic Joint Committee in Hanoi next year, as well as to officially participate in one of the major trade fairs in Ho Chi Minh City.

Regarding the EU-Vietnam Free Trade Agreement (EVFTA), he assessed that the continued implementation of the trade deal, especially the gradual reduction of Vietnam's automobile import tax rate by 78% by 2030, can significantly contribute to the expansion of the presence of his country’s automobile industry in Vietnam, and increasing export and investment projects from the Central European country.

Record number of new firms seen in eight months

A record number of 103,658 new firms were established in the first eight months of this year, a rise of 2.3% year on year and 1.2 times higher than the average number for the same period during 2018-2022, reported the Ministry of Planning and Investment (MPI).

In August alone, the country saw more than 14,000 newly-established businesses, up 17.9% year on year. However, the number of firms returning to the market in the month dropped 3.1% year on year and 10.9% month on month. 

In the January-August period, 149,400 enterprises newly joined and returned to the market, a slight drop of 0.03% year on year, but 1.2 times higher than the average figure recorded in the period from 2018-2022, the ministry said.

The education-training sector saw the highest rise in the number of new firms at 35%, followed by the healthcare sector at 18.9%, and employment services, tourism, machinery and equipment rental and other supporting services 16.3%.

Hanoi maintains position as economic locomotive of northern region

Hanoi has made great strides across all fields, setting firm foundations for the capital's future development after 15 years of the administrative boundary adjustment under Resolution No 15/2008/QH12 of the National Assembly (August 1, 2008 - 2023).

Hanoi has become one of the capitals with large areas and populations in the world. Taking advantage of this, the municipal authorities have bolstered the city's development in a rapid, comprehensive and sustainable direction, maintaining its role as an economic locomotive of the country.

The city’s Gross Regional Domestic Product (GRDP) increased by an average 9.68% per year in the 2008 – 2010 period, and 6.67% per year in 2011-2022.

The city’s economy has revived rapidly after the COVID-19 pandemic. It recorded year-on-year growth of 8.89% in gross regional domestic product in 2022, higher than the target of 7 - 7.5%, according to the municipal Statistics Office.

Hanoi’s GRDP grew by 5.97% in the first half of 2023, 1.6 times higher than the national average. The city’s budget revenue rose by 22.9% over the same period last year.

In the 2023-2025 period, Hanoi will focus on accelerating the restructuring progress of the agricultural sector, renewing its growth model following the promotion of clean, organic, and ecological farming. It will also prioritise creating favourable conditions for businesses to invest in agriculture and rural areas to create more jobs and improve people's incomes.

However, the total registered capital of the newly-established firms fell 14.7% year on year to 969.61 trillion VND (over 40.2 billion USD).

Meanwhile, in the reviewed period, 124,684 businesses withdrew from the market, up 19.5% year on year, including 71,833 businesses halting operations, 41,064 logging dissolving requests and 11,787 others dissolved.

In order to support business development, Deputy Minister of MPI Tran Quoc Phuong said that along with applying flexible, active and effective monetary and fiscal policies and measures to remove difficulties for business and production activities, the ministry will propose adjustments and supplementations to some relevant mechanisms and policies.

Vietnamese exports gradually show positive signs in remaining months

Vietnamese exports in August enjoyed growth of 7.7% compared to the previous month, indicating that solutions to trade promotion and market search of local enterprises has produced positive results whilst there remains opportunities and potential markets for Vietnamese exports ahead in the rest of the year.      

According to the General Statistics Office (GSO), August saw the total import-export turnover stand at an estimated US$60.92 billion, up 6.7% over the previous month, thereby bringing total import-export turnover over the past eight months to US$435.23 billion.

Most notably, the last four consecutive months has seen the export turnover increase at a higher rate compared to the previous month. This shows that businesses' trade promotion and market search solutions have brought about positive results.

However, due to a steep fall occurring in the first months of the year, the eight-month export turnover was estimated to hit US$227.71 billion, down 10% on-year.

Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (VITAS), said that in July, textile and garment exports reached US$3.27 billion, representing an increase of 6.8% compared to a month earlier.

This is also the month that reached the highest value over the last 11 months. Textiles and garments are showing good signs of recovery in many markets. This year, the textile industry is expected to rake in an export turnover of between US$ 40 billion and US$41 billion.

Currently, textiles and garments are the nation’s fourth largest export product group behind computers, electronic products and components; Phones and components; machinery, equipment, tools, and spare parts.

Elsewhere fruit and vegetable products made a very strong breakthrough in recent times.

Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association, said that fruit and vegetable export turnover in the past eight months hit an estimated US$3.5 billion, up nearly 56% over the same period from last year.

This marks a record high for the fruit and vegetable industry. Among them, durian has risen to become the most important export product.

Among the fruit and vegetable groups, durian and dragon fruit make up the fruits which have significantly contributed to this growth.

In particular, eighth-month durian exports account for 30% of total fruit and vegetable export turnover.

This year will likely seek fruit and vegetable exports reach the historic milestone of US$5 billion. In addition, the nation has officially exported official sweet potatoes to the Chinese market, thereby creating added momentum for the growth of this industry moving forward.

Le Hang, communications director of the Vietnam Association of Seafood Exporters and Producers (VASEP), forecasts that by the end of the year seafood exports will fetch roughly over US$9 billion, down 15% to 16% compared to 2022.

Regarding Tra fish (pangasius) exports, Hang stated that amid major markets such as the United States, the EU, and China facing difficulties, finding more opportunities in small markets can be considered a hope for pangasius exporters.

According to Hang, the export of Tra fish to several small markets is growing well. This can be seen as hope for pangasius enterprises amid facing difficulties in traditional large markets.

The VASEP expects that the Chinese market will recover better in demand, thereby helping pangasius exports be higher than the first half of the year. Therefore, it is forecast that exports of these products for 2023 may reach US$1.7 billion.

Regarding export prospects ahead in the remaining months of the year, Nguyen Thao Hien, deputy head of the European - American Market Department under the Ministry of Industry and Trade, said that the rate of export turnover reduction has slowed down. In the coming time, it is anticipated that exports can recover their growth momentum in the fourth quarter.

Besides, free trade agreements (FTAs), such as the UK joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Agreement, will open up plenty of new opportunities for Vietnamese exports.

In a bid to maintain competitiveness, Tran Minh Thang, head of the Vietnam Trade Office branch in San Francisco (USA), said that Vietnamese enterprises must continuously optimise production to maintain competitive prices, produce high quality and creative products, create differences, apply advanced technology to production, as well as responding faster and more flexibly to market needs and consumer preferences.

Practicing sustainable and socially responsible production plays a huge role in demanding markets such as the US, he noted.

Do Viet Ha, a representative of the Vietnam Trade Office in the German market, highlighted major opportunities which serve to bring Vietnamese goods into Germany, noting that German consumers are willing to use high-quality products with competitive prices from developing countries.

Vietnam has many products which Germans has high demand for, such as wooden furniture, garments, textiles, footwear, coffee, and tropical fruits and vegetables. In addition, the Central European country is gradually separating its dependence on China for goods and is in the process of looking for more suppliers from Vietnam.

To Ngoc Son, head of the Asia-Africa Market Department under the Ministry of Industry and Trade, said that to fully exploit the market, local businesses need to build brands, promote products, and position products in each segment, apply advanced technology in processing, packaging and preserving products, as well as to diversify forms of trade promotion.

This should be done alongside actively researching technical standards and barriers of markets, thereby ensuring complete records, paying attention to green consumption requirements, and researching new and potential markets, he added.

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