The southern economic hub of Ho Chi Minh City led the country in tourism revenue in the first half of 2023. The result showed the city's countless efforts in promoting the tourism sector and tourism development.

Promoting its role as an economic centre and attractive tourism destination, in the first six months of this year, the city’s tourism revenue earned 80.8 trillion VND (3.35 billion USD), up 62.7% year on year. In the reviewed period, the city welcomed more than 16.4 million domestic visitors, up 48% year on year, and 1.9 million international tourist arrivals, triple than the same period last year.

According to experts, these figures reflect a bustle in tourism and the diversity of entertainment activities in the southern metropolis in the first half of this year.

A report of the municipal Department of Tourism showed that in the January-June period, revenue from accomodation and catering sevices in the city reached over 51 trillion VND, up 36.2% over the same period in 2022, while travel revenue was 4.8 trillion VND, up 78.5% year on year.

In particular, in the reviewed period, the local tourism industry launched a series of new tourism products and services, attracting tourists at home and aboard.

The department has focused on fully tapping indigenous tourism strengths associated with local potential to introduce a series of typical tourist destinations and cultural and historical relic sites in districts in the city, including District 7, District 1; District 8, among others.

Le Truong Hien Hoa, Deputy Director of the municipal Department of Tourism, said that 21 areas in the city have launched featured products, under the theme of the "each district having at least one typical tourism product" programme.

In the remaining months of this year, the city's tourism sector will focus on implementing a tourism development strategy to 2030; continue to implement the Smart Tourism Development Project in the 2021 - 2025 period. The sector will also accelerate the completion of the tourism database system and the tourism service information integration project.

In particular, the municipal Department of Tourism will focus on organising the city's key activities and events, including first river festival, 17th Ho Chi Minh City International Tourism Fair and Ho Chi Minh City Tourism Week 2023, among others to lure more visitors.

In tourism cooperation, the city will continue to promote regional tourism links with provinces and cities. The focus is on tourism development cooperation programme between Ho Chi Minh City and 13 provinces and cities in the Mekong Delta.

In addition, the municipal Department of Tourism has increased tourism promotion activities in some key markets such as Singapore, the US.

Vietnam Airlines announces new HCM City-Perth route

National flag carrier Vietnam Airlines recently announced a direct flight service between Ho Chi Minh City and Australia’s Perth city which is due to be put into operation on December 7.

Speaking at the ceremony, Premier of Western Australia Roger Cook said securing this new direct flight between Vietnam and Perth opens up an abundance of opportunities between the two destinations and represents a whole new inbound visitor market for Western Australia's industry, tourism and hospitality sectors.

"We have a growing Western Australian-Vietnamese community in our state, which has contributed to our social, economic and cultural development and this announcement will provide better direct connections for the community whether it be for leisure, business or studying opportunities”, he added.

Meanwhile, Deputy Premier and Minister of Tourism of Western Australia Rita Saffioti said Vietnam is becoming an emerging tourism market for Western Australia, with 10,000 visitors travelling into the state for the year up until March 2023, and these new flights will further bolster that with a further 43,000 people able to come in each year.

"With flights starting in December, just in time for the peak summer season, I'm sure this route will be very popular, and helps affirm our status as the Western Gateway to Australia”, she said.

Flights from Ho Chi Minh City No.VN791 will depart at 15:50 every Monday, Thursday, and Saturday and arrive in Perth at 23:05 on the same day (local time). Conversely, flights from Perth No.VN790 will depart at 00:50 every Tuesday, Friday, and Sunday and arrive in Ho Chi Minh City at 06:10 the following day. Passengers have been able to purchase tickets for this route since September 1.

With the new route, Vietnam Airlines will operate 23 round-trip flights between Vietnam and Australia each week, averaging 3 flights per day. The total number of routes to Australia operated by Vietnam Airlines has increased to 5, including Hanoi, Ho Chi Minh City to Melbourne; Hanoi, Ho Chi Minh City to Sydney, and Ho Chi Minh City to Perth. All of these routes are served by modern wide-body aircraft such as the Airbus A350 or Boeing 787.

Perth is the capital city of Western Australia, one of the most economically significant states in Australia and in the wider Asia-Pacific region.

Currently, there are around 300,000 Vietnamese and those of Vietnamese origin living and working in Perth, the third biggest Australian market of Vietnam.

Export remains major driving force of apparel industry

The development strategy of the textile and garment industry until 2030 with a vision to 2035 has clearly identified that exports will continue to be a major and crucial driving force for the sector's growth.

In addition, the industry development must be closely linked to the protection of ecological environment, fulfillment of obligations and social responsibilities in line with sustainable development goals and international commitments.

Alongside digital transformation, countries are transitioning to green and circular economies. The textile and garment industry is seen as a central player in this transition trend.

Truong Thi Ai Nhi, an expert from the Institute for Circular Economy Development (ICED), said even though Vietnam is one of the world's leading textile and garment exporters, its textile and garment industry is still in a vulnerable position. This is because Vietnam primarily focuses on processing and lacks control over supply sources and product distribution. Its rate of locally-made items is only around 30-35%.

The Vietnam Textile and Apparel Association (VITAS) forecast that production and export will gradually improve, but challenges will persist throughout this year due to the lack of orders for the third and fourth quarters.

In order to achieve the export target of 39-40 billion USD this year and effectively carry out the Vietnam textile and apparel development strategy until 2030 with a vision to 2035, VITAS urged firms to seek measures to retain the workforce, especially the core ones; hold training courses to serve green transition and digital transformation.

It suggested retaining customers by accepting orders with no profit, building reliable and long-term partnerships, exploring new markets, and paying attention to the domestic market.

Minimising unnecessary costs is also necessary, it said.

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.

Bắc Ninh introduces industrial infrastructure to European investors

A delegation from Bắc Ninh Province led by its Vice Chairman of the People's Committee Đào Quang Khải, introduced the province's industrial infrastructure and vision for foreign investments at the business seminar "Bắc Ninh – Where to base your production in Việt Nam” held in Zurich, Switzerland.

The seminar, organised by Bắc Ninh People's Committee in collaboration with the Embassy of Việt Nam in Switzerland, the Swiss-Vietnamese Business Gateway (SVBG) and the Swiss - Asian Chamber of Commerce (SACC), was held on Tuesday with attendees representing more than 30 companies in Switzerland and neighbouring countries such as Austria, Belgium, Germany and Italy, as well as business associations and universities in Switzerland.

Greeting the delegation from Bắc Ninh to Zurich, the largest economic-financial centre of Switzerland, Việt Nam Ambassador to Switzerland and the Principality of Liechtenstein, Phùng Thế Long said: “Today's seminar with the theme ‘Bắc Ninh – Where to base your production in Việt Nam’ is an opportunity for leaders of Bắc Ninh Province, one of Việt Nam's leading localities in attracting foreign investment, and Swiss and neighbouring businessmen to exchange information and share experiences to further promote trade and investment co-operation.”

Vice Chairman Đào Quang Khải welcomed interested businesses attending the seminar to learn more about Bắc Ninh, and to seek and identify potentials and opportunities for cooperation and investment in Bắc Ninh and Việt Nam.

Khải emphasised that the province with the smallest area (823 km2) in Việt Nam and a population of 1.5 million people has a particularly important position and role in the capital region and is one of the seven provinces constituting the Northern Economic Region of the country.

Adjacent to the capital Hà Nội, 32 km from Nội Bài International Airport and 90 km from Hải Phòng seaport, the province is very conveniently located for transportation and import-export of goods.

Over the last 25 years, its economy has achieved an average growth of 13.9 per cent per year.

Nowadays, Bắc Ninh has become a high-tech industrial centre with industry and construction accounting for 76.5 per cent of its economy, and ranks high among the leading provinces and cities of Việt Nam as assessed through several socio-economic indicators, such as manufacturing output; export turnover; income per capita; provincial competitiveness index; provincial green index (PGI); and satisfaction index with public administration services (SIPAS).

"Having achieved the above results, we treasure the contribution of the FDI sector in the overall development of Bắc Ninh Province," Khải said.

The province has granted investment registration to 1,975 valid projects from 39 countries and territories by July, with a total registered capital of US$24.44 billion, ranking seventh in the country in terms of accumulated foreign direct investment.

Big corporations that have built factories in Bắc Ninh include Samsung, Foxconn, Canon, PepsiCo, Amkor, GoerTek and Việt Nam Singapore Industrial Park (VSIP).

There are four projects by three renowned Swiss hi-tech manufacturers with a total investment of $109.34 million in the province, namely: ABB, which manufactures electricity distribution equipment and solutions; Sika, which produces additives for use in construction; and Oerlikon, which specialises in metal engineering and coating.

Talking about his company’s success in Bắc Ninh, Petr Valenta, ABB Global Product Line Manager for Compact Secondary Substations and Electrification Distribution Solutions, said the reasons ABB chose to build its first factory in Bắc Ninh in 2010 and expand it further in 2022 are geographical position with good infrastructure; supplier base with international reputation; strong support from local authorities; and competence supported by good education system.

Meanwhile, Marco Freidl, head of Group Strategy & Business Development of Oerlikon Group, which opened a representative office in Hà Nội in 2017 and built its first factory in Bắc Ninh in 2019, has seen in Bắc Ninh a strong production ecosystem that supports the group’s connection with partners and customers.

A number of participants also discussed their companies’ successful operations in Việt Nam, particularly in the North thanks to the proximity to global seaports, such as DEEP C Industrial Zone Việt Nam (Belgium) that operates industrial infrastructure, or DSV Air & Sea (Denmark) in transport and logistics sector.

Concerns were raised about the province’s human resources and incentives for green investments, and investments in climate-resistant infrastructure.

Although the province's population is rather small, thanks to being close to the capital city of Hà Nội, Bắc Ninh benefits from the abundant and high-quality workforce trained by universities in the capital, according to Khải.

Bắc Ninh also has six universities and 58 colleges and vocational training centres which train a considerable number of skilled labourers.

In the near future, it will establish a university village and boost vocational training to meet the high demand of investors.

The vice chairman also said in the coming years his province wishes to welcome green investments and high-tech industries, supporting industries, 5G and 6G technology, clean and hi-tech agriculture, high-class commercial facilities, infrastructure and urban development, which also bring about advanced management skills and know-how.

Bắc Ninh gives priority to investments that qualify as "2 less, 3 high", meaning those which require less land use and labour force, yet entail high technology, investment rate and economic efficiency.

The province is welcoming potential investors in a spirit of "four readiness": ready to provide clean premises, ready to supply qualified work force, ready for reform and ready to support investors.

“We are also continuing to call for investments to turn Bắc Ninh into a leading electronics manufacturing centre in Việt Nam, continuing to be the main driving force for economic growth with the Industrial and Hi-tech Development Zone that encompasses Yên Phong, Quế Võ, Lương Tài, Thuận Thành and Tiên Du districts," said the vice chairman.

The province currently has 16 industrial parks under 24 investment projects that build and develop industrial infrastructure with a total area of 6,398 ha.

Among these, 16 estates have been put into operation, scoring an occupancy rate of 58.6 per cent, and eight projects are under construction.

The industrial parks are equipped with synchronised and modern infrastructure. Social welfare has also been strengthened, ensuring the security of people and workers in the industrial zone.

Optimistic about potentials in Việt Nam, Roger Leitner, Chairman of the Việt Nam Committee of the Swiss-Asia Chamber of Commerce (SACC), said: “I have joined a Swedish entrepreneur who co- founded Mobifone Việt Nam in the 1990s, creating a “unicorn” for and in Việt Nam under the Swedish-Vietnamese partnership Comvik International Việt Nam. This is a true testimonial that great things can be achieved and built in Việt Nam.”

Nguyễn Thị Thục, founding president of the Swiss-Vietnamese Business Gateway (SVBG), the key organiser of the seminar, added: “Bắc Ninh is the second locality in Việt Nam, after Đà Nẵng, that has carried out investment promotion organised by the SVBG in Switzerland this year.

“Through our membership bases, media channels, social networks and international relations, SVBG and partners have introduced these promotional events widely to entrepreneurs, business support organisations, investment consulting firms and economic research organisations in Europe, bringing these localities closer to the business communities in Switzerland and neighbouring countries.

"We are pleased to contribute to enhancing the image of Việt Nam as an attractive destination for foreign investors.”

Việt Nam achieves $20.19b trade surplus in eight months

Việt Nam enjoyed a trade surplus of US$20.19 billion in the first eight months of this year, according to the General Statistics Office (GSO).

However, the total trade value in the period posted a year-over-year decrease of 13.1 per cent to $435.23 billion. Specifically, export value hit $227.7 billion, a fall of 10 per cent year on year and import value was down by 16.2 per cent to $207.52 billion.

In August, the country's total trade value hit $60.92 billion, marking an increase of 6.7 per cent compared to the previous month and a decline of 7.9 per cent compared to the same period last year.

In eight months, 30 items posted export turnover of over $1 billion, accounting for 91.8 per cent of the country's total export turnover. Particularly, five commodities posted an export turnover of more than $10 billion, accounting for 58.4 per cent.

The US was Việt Nam's largest export market with an estimated turnover of $62.3 billion, while China was Việt Nam's largest import market with $68.1 billion.

To further improve the trade revenue, the Ministry of Industry and Trade has planned to strengthen trade promotion activities for new and potential markets like India, Africa, the Middle East, Latin America, and Eastern Europe, and the markets less affected by inflation like ASEAN.

The ministry expected the exports to recover since the fourth quarter of this year due to many advantages such as the US market's recovery of import demand.

Besides that, the UK's accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will bring more opportunities for Vietnamese exports.

Meanwhile, the Ministry of Agriculture and Rural Development (MARD) reported that Việt Nam's total export-import turnover of agro-forestry and aquatic products in the eight months of this year was estimated at $59.69 billion.

Of which, $33.21 billion was worth of exports, down 9.5 per cent annually, but still resulting in a trade surplus of $6.72 billion.

In August alone, agro-forestry-aquatic products brought home $4.36 billion from exports, down 6.5 per cent annually.

Several commodity groups posted an increase in export value, such as fruits and vegetables, rice, and coffee.

Especially, Việt Nam earned $3.45 billion from exporting vegetables and fruits in the first eight months of 2023, up 57.5 per cent year-on-year, according to MARD.

The figure exceeded last year’s export turnover of $3.16 billion. And with that growth pace, it is expected to surpass the record of $3.81 billion set in 2018.

China remained Việt Nam’s largest veggie and fruit importer, accounting for 65 per cent of the revenue in eight months.

According to Deputy Minister of Agriculture and Rural Development Hoàng Trung, in the coming time, the Central Highlands region will enter the main durian crop, which is off-season compared to other countries. This will be an advantage in helping the export value surge.

To date, more than 300 durian growing area codes and nearly 100 packaging codes have been granted.

Đặng Phúc Nguyên, General Secretary of the Việt Nam Fruit and Vegetables Association (Vinafruit), said that with the two-digit growth rate at present, the export revenue of vegetables and fruits could hit the $5 billion mark.

Meanwhile, rubber, tea, cashew nuts, pepper, and cassava and its products saw their export prices fall by 2.6-19.6 per cent.

China, the US, and Japan remained the top three importers of Vietnamese agro-forestry and aquatic products, with China accounting for 21.9 per cent, up 9.8 per cent; the US 20.6 per cent, down 27.4 per cent; and Japan 7.6 per cent, down 10.6 per cent.

Seizing market opportunities, especially in commodity groups of strength, the ministry has instructed localities to regulate production plans and boost exports, step up negotiations and market access for official exports while expanding export markets. 

Vinh Phuc IPs attracts over US$445 million in FDI in eight-month period

Industrial parks (IP) based in the northern province of Vinh Phuc attracted US$445 million in foreign direct investment (FDI) during the initial eight months of the year, thereby fulfilling 171% of the annual plan, according to the Industrial Park Management Board of Vinh Phuc province.      

Throughout the reviewed period, Vinh Phuc province lured a total of 17 new FDI projects with 28 capital-added projects, reaching 189% of the plan for the year.

August alone witnessed the locality’s Industrial Parks Management Board grant investment registration certificates for five new projects, including four FDI projects with registered investment capital of more than US$14 million and one domestic-invested project capitalized at over VND243 billion.

At present, the number of valid investment projects in the province’s IPs has reached 467, including 106 domestic-invested projects capitalized at over VND32 trillion and 361 FDI projects valued at nearly US$6.3 billion.

In order to attract large corporations and strategic investors to the locality, Vinh Phuc is set to continue to focus on improving the investment environment, enhancing transparency and stability, upgrading infrastructure facilities, as well as removing hurdles in order to facilitate businesses’ activities.

Dak Lak farmers protect durians amid rising prices

Many farmers in the Central Highlands province of Dak Lak have taken various measures to protect themselves from thieves as the fruits continue to rise in value.

The prices of durian have continued to rise since the first batch of Dak Lak durian was exported to China last September.

According to the farmers in Krong Pac District, durians have enjoyed their highest-ever prices of between VND 85,000-100,000 per kilo.

Amid rising prices, many farmers here have complained about rampant theft targeting their gardens.

Durian farmer Bui Thi Ngoc said that her 1.20-hectare garden had lost many fruit to thieves.

"I've lost over 100 kilos of durian so far this year," Ngoc said. "I’ve lost over 30 fruits in a single evening several times."

Ngoc has lost over 100 kilos of durian so far this year.

The two-hectare durian garden of Le Quang Au has also lost dozens of fruits to thieves every day.

Local farmers have sought help from the police and taken various measures themselves.

Farmer Tran Quang Ta, 54, has just built a two-layer fence with metal mesh on the outside and metal sheet inside to better protect the trees during harvest season.

Ta has just built a two-layer fence with metal mesh on the outside and metal sheet inside to better protect the trees during harvest season.

"I've decided to invest VND 200 million (USD 8,299) to build a fence to protect my durian garden which is expected to be sold for VND 3.50 billion this crop," Ta said.

Besides a firmly-built fence, the farmer has also installed a security camera on a six-metre-high pole that can watch the whole garden.

"Thanks to the fence and the cameras, we haven't experienced any thefts," he said, adding that they were widespread during harvest time this year.

Another farmer, Tran Tien said that he has also installed eight security cameras in his durian garden.

Tran Tien has installed eight security cameras in his durian garden.

"Those cameras can take photos of the garden and alert us when detecting movement," Tien said.

The farmer even takes a hammock to sleep in the garden to guard the trees.

Farmer Le Van Dai, 50, has also moved to live in a small outhouse built in his garden during harvest season to guard his fruits. 

Krong Pak is predicted to harvest 80,000 tonnes of the fruit this year.

VFA proposes rice export floor price to ensure stable supply

The Vietnam Food Association (VFA) has recently recommended introducing a floor price for the export of rice from Vietnam to safeguard stable supply amidst a significant surge in rice prices globally.

Since India imposed restrictions on white rice exports, world rice prices have substantially increased, causing extensive impact on global rice trade, local rice exporters, and rice prices, according to the VFA.

This situation arises from various factors such as domestic traders holding out for better offers, waiting for bullish trends, or facing challenges in securing adequate supplies for buyers.

In response to this current scenario, the VFA has issued an official directive urging its member businesses to prioritize the fulfillment of their existing contracts. This strategy is intended to bring stability to the market while collaborating with partners to extend delivery schedules, aiming to mitigate potential losses stemming from price volatility.

The VFA advises ensuring ample supply before entering into new contracts. To curb price fluctuations and potential disruptions in domestic markets, it recommends implementing purchase limits in the absence of a contract.

Notably, international rice buyers had been actively seeking to procure rice from Vietnam, even offering to pay an extra US$10-25 per ton compared to prices prior to India’s export restrictions.

Vietnam’s 5% and 25% broken rice are currently priced at a remarkable US$643 and US$628 per ton, respectively. These figures are US$10 and US$63 higher than Thailand’s levels.

As per the General Statistics Office, the total rice exports in the first eight months of the year reached six million tons valued at US$3.2 billion. August alone contributed nearly US$600 million to this total.

With an annual rice export volume ranging from seven to eight million tons, Vietnam is the world’s third largest rice exporting country behinid India and Thailand.

Over 30% of Vietnamese households feel impact of rising prices: survey

Over 30% of households in Vietnam are grappling with the consequences of soaring prices of goods and services, according to data released by the General Statistics Office (GSO).

In a report covering the first eight months of 2023, the data showed that 30.1% of households are experiencing the impact of rising costs, while another 5.3% are facing negative effects due to the pandemic. An additional 2% of households report adverse effects of the pandemic on pets and crops.

The findings shed light on the economic challenges faced by many Vietnamese families, with nearly one-third feeling the pinch of escalating expenses. The GSO conducted the survey to assess the impact of adverse events on households across the country.

Income stability also came under scrutiny in the report. It showed that 94.2% of households reported either no change or an increase in their monthly incomes compared to the same period last year. However, 5.8% of households saw a decline in income.

Job loss or temporary unemployment was cited as the primary reason by 37.8% of these households. Another 22.9% of households attributed it to increased input costs for their business activities, while 21.9% others pointed to reduced prices for their products.

The survey also highlighted that 9.9% of households received assistance from various sources. Family and relatives contributed to support for 6.5% of households, while local programs and policies aided 3.4%, national policies helped 3.1%, and charitable initiatives from organizations and individuals assisted 1.6%.

As gasoline and rice prices reflect global trends and rental costs for housing surge due to high demand, they became the factors behind the economic turbulence. These factors contributed to a month-on-month increase of 0.88% in the Consumer Price Index for August.

In the first eight months of 2023, the CPI rose by 3.1% year-on-year, while core inflation increased by 4.57%.

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