Vietnamese exports brought in US$11.38 billion, representing a year-on-year rise of 13%, said the department.

The export items are quite diverse, ranging from agricultural products to processing and manufacturing items.

The items that raked in US$1 billion include garments and textiles at roughly US$1.67 billion, machinery, equipment, tools and spare parts with US$1.364 billion, along with means of transport and spare parts with US$1.2 billion.

Other items earning high export turnover are seafood with US$800 million, computers, electronic products and components with US$603.7 million, phones and components with US$538.7 million, footwear with US$495.8 million, and plastic products with US$386 million.

Meanwhile, six-month imports from Japan surged by 10.6% to US$12 billion year-on-year. Key import items are computers, electronic products and components valued at US$3.5 billion, machinery, equipment, tools and spare parts at US$2.14 billion and iron and steel at over US$1 billion.

As a result, Vietnam skipped into a trade deficit of just US$620 million with Japan in the six-month period.

Last year, bilateral trade between the two sides reached approximately US$43 billion, of which exports stood at US$20.13 billion and imports at US$22.8 billion.

Currently, the scale of import-export turnover between Vietnam and Japan ranks fourth, behind China, the United States, and the Republic of Korea (RoK).

Domestic petrol market to fall sharply on July 11

The retail prices of petrol in Vietnam are expected to dive sharply next week after consecutive hikes over the past months.

The Ministry of Industry and Trade and the Ministry of Finance will jointly announce a periodical adjustment on the retail prices of petrol on July 11, and the prices are anticipated to fall by nearly VND3,000 per litre to below VND30,000 per litre.

According to data from the Ministry of Industry and Trade updated on July 5, the average petrol price in the Singapore market dropped sharply. Petrol RON92 cost more than US$139 /barrel, while petrol RON95 was capped at more than US$147/barrel.

Similarly, oil prices also decreased compared to the most recent adjustment.

The National Assembly Standing Committee last week approved the Government’s proposal to further axe the environmental protection tax on petrol and oil, starting at 00.00 on July 11.

A representative of a petrol and oil enterprise in Hanoi forecast that the price of petrol may decrease by nearly VND3,000 per litre, while that of oil may decrease at a lower level, about VND2,000 per litre.

As a result, the domestic petrol price is likely to fall to below VND30,000 per litre, and the new price level is likely to come into effect as of 00.00 on July 11 instead of 15.00 (local time) as normal.

Vietnam’s economic growth accelerates on back of exports: Bloomberg

Vietnam’s economic growth accelerated faster than expected in the second quarter of this year, as a recovery in exports and manufacturing helped offset risks from coronavirus outbreaks and rising oil prices, Bloomberg reported.

The US-based news agency cited data from the General Statistics Office of Vietnam as saying the Vietnamese economy expanded 7.72% year-on-year in the April-June period, compared to 5.05% of the previous quarter.

That was quicker than the median estimate for a 5.9% gain in a Bloomberg survey, and the highest level since at least the first quarter of 2013.

Bloomberg reported the gains in momentum coincide with Vietnam emerging as one of the alternative destinations for foreign investment amid trade disruptions from China’s lockdowns, the war in Ukraine, and lingering tensions between Beijing and Washington.

The economy also benefited from fiscal stimulus worth about 15 billion USD, and an easy monetary policy that makes the State Bank of Vietnam one of the last few to resist the global tightening cycle, it said.

Hanoi Sales Promotion 2022 kicks off

“Hanoi Sales Promotion” 2022 opened on July 8 in Times City, Hoang Mai ward, Hanoi, aiming to stimulate consumer demand, ease difficulties, promote production and business as well as improve enterprises' competitiveness.

The event is part of the concentrated promotion programme of the capital city with discounts of up to 100% in more than 2,000 points of sale.

Speaking at the opening ceremony, Tran Thi Phuong Lan, Director of the Hanoi Department of Industry and Trade, stressed that it is one of the important activities of the department in particular and the city in general, in order to stimulate domestic demand and recover production and business, thus contributing to municipal socio-economic development in the post-COVID-19 period.

The event, which runs until July 12, drew the participation of more than 100 companies operating in various fields such as industry, food, telecommunications, information technology, education and training.

Within the framework of the Hanoi promotion programme, the department will continue to organise a series of fairs and exhibitions to boost domestic consumption, such as 2022 "Cashless Event" in July and the "Hanoi White Night" 2022.

First fresh lychee batch exported to China via Mong Cai border gate

For the first time Vietnamese fresh lychees have been exported to China via the northern coastal province of Quang Ninh’s Mong Cai international border gate.
 
Tran Bich Ngoc, head of the management board of the border gate, said this is a good sign for the import and export of agricultural products at the border gate.
The first batch of fresh lychee, with 64.7 tonnes worth nearly 600 million VND (25,688 USD), was delivered to the Chinese side on July 9.

Recently, China resumed the import of Vietnamese agricultural products.

In the first half of 2022, more than 270,000 tonnes of goods worth over 1.4 billion USD went through border gates in Mong Cai city, which borders China. As a result, the city collected 558.64 billion VND for the State budget, an annual increase of 24.14%.

In remaining months of the year, the city plans to maintain exchanges and talks with the authorities of China’s Dongxing city on epidemic prevention measures in order to create trust and strengthen cooperation in facilitating imports and exports activities through border gates between the sides.

Event planned to promote trade with Algeria

A virtual conference will be held on July 13 - 14 to promote trade and business links between Vietnamese localities, enterprises and cooperatives with potential partners in Algeria.

The event is part of the national trade promotion programme in 2022. Around 40 Vietnamese and Algerian businesses are expected to attend. B2B sessions will be arranged for participating companies.

According to statistics of the Ministry of Industry and Trade, Vietnam’s exports to Algeria, the fourth largest economy in Africa, were modest at US$151.1 million in 2021, and reached US$65.2 million in the first five months this year, up 17.6% year on year.

Coffee tops Vietnam’s exports to Algeria, accounting for 65% of the total export value. Other main export items are rice (16%), spices such as pepper bean and cinnamon, cashew nuts and aquatic products.

Event planned to promote trade with Algeria

A virtual conference will be held on July 13 and 14 to promote trade and business links between Vietnamese localities, enterprises and cooperatives with potential partners in Algeria.

The event is part of the national trade promotion programme in 2022. Around 40 Vietnamese and Algerian businesses are expected to attend. B2B sessions will be arranged for participating companies.

According to statistics of the Ministry of Industry and Trade, Vietnam’s exports to Algeria, the fourth largest economy in Africa, were modest at 151.1 million USD in 2021, and reached 65.2 million USD in the first five months this year, up 17.6% year on year.

Coffee tops Vietnam’s exports to Algeria, accounting for 65% of the total export value. Other main export items are rice (16%), spices such as pepper bean and cinnamon, cashew nuts and aquatic products.

PetroVietnam surpasses oil exploitation plan by 23 percent in H1

The Vietnam Oil and Gas Group (known as PetroVietnam) pumped 5.48 million tonnes of crude oil in the first six months of this year, surpassing the set target by 23 percent.

PetroVietnam’s revenue in the period was estimated at 20 billion USD, up 55 percent year-on-year and double the goal set for six months.

PetroVietnam said the group faced numerous difficulties as the Russia-Ukraine conflict has prolonged for more than 100 days, causing disruptions to supply chains, pushing up prices of energies and materials, as well as transport and production costs.

Besides, existing oil and gas mines have seen big reductions in output while the exploitation of new ones is hindered by regulations.

Given such difficulties, the group has undertaken a series of measures to maintain output and stable operation, including the application of information technology.

In the second half, PetroVietnam said it will expand consumption markets while promoting the implementation of linkage chains.

It will also enhance digital transformation, creating positive changes in business and governance models, thus improving operational efficiency.

Vietnam records lobster export growth in H1

Vietnam saw a record 30-fold growth in lobster exports to reach a total of 130 million USD in the first half of the year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

Vietnam’s lobster exports to China in the first five months of 2022 had a strong increase of nearly 29 times on year to 108 million USD.

VASEP Secretary General Truong Dinh Hoe said the main market for Vietnamese lobster was still China.

Last year, China's market was "frozen" due to COVID-19, the lobster export value from Vietnam to this market was very low, so this year, the growth of the lobster export value to China reached a high record but the export value was not such a high figure.

The export value of lobster accounted for only about 5.5% of the shrimp industry's exports and only a few enterprises participated in exporting lobster, Hoe told Nguoi lao dong (The Labourer) newspaper.

Meanwhile, Vietnam's shrimp exports in the first five months of this year reached 275 million USD, up 101% over the same period last year. In May, the shrimp exports reached a turnover of 88 million USD, up 126% on the year.

VASEP said that shrimp supply from China decreased in the past three years due to the impact of the COVID-19 pandemic. In addition, China implemented a zero COVID policy, causing many factories in this country to be closed and production to be stalled.

Therefore, China has fallen into a shortage of aquatic products for domestic consumption and export processing.

The increasing demand for seafood imports is attracting more Vietnamese enterprises to export here despite the challenges.

According to VASEP, Vietnam's total seafood exports to China in the first five months of this year reached 771 million USD, up 91% over the same period last year. The two key products were pangasius accounting for 48% of exports and shrimp accounting for 35%.

The Ministry of Industry and Trade said it would continue to work closely with the Ministry of Foreign Affairs and related agencies to amend and supplement legal documents on the land border line between Vietnam and China as well as other legal documents, facilitating sustainable development of border trade activities.

Along with that, the ministry would continue to coordinate with ministries, sectors and localities in developing market and improving product quality and designs.

It would also orient local businesses to promote official export activities to China instead of trade activities via border gates and call on logistics service enterprises to support agricultural, aquatic and fruit enterprises, including priority for the preservation of fruits, and reduction of storage, warehousing, transportation, loading and unloading costs.

In the first half of this year, China was the second largest export market of Vietnamese farm produce with a total value of about 4.97 billion USD, up 5.9% and accounting for 17.8% of national agricultural, forestry and seafood export value.

In the past months, the ministry regularly cooperated with China authorities to improve the customs clearance of goods at border gates of the two nations. Those facilitated export goods, especially agricultural products exported from Vietnam during the period of main harvest season.

Tra fish exports expected to beat target

The Vietnam Association of Seafood Exporters and Producers (VASEP) is optimistic about tra fish exports this year with a substantial demand recovery in import markets.

The association predicted that tra fish export would beat the target of 1.6 billion USD set at the beginning of this year to finish at 2.6 billion USD.

Tra fish processing plants were at full capacity in the first half of this year for export orders, VASEP said, adding that the export value reached more than 1.4 billion USD in the first six months of this year, representing a rise of 83% against the same period last year.

Inflation and the Russia - Ukraine conflict provided the opportunity for Vietnam to expand tra fish export to the EU, the US and the UK markets which faced with severe shortages of white fish due to sanctions on Russia.

Tra fish export to the UK jumped by six times over the same period last year while to Spain nearly tripled. Other markets which saw fast growth included mainland China, Hong Kong (124%), the US (131%) and France, Holland, Germany and Belgium by around 45-90%.

Vietnam’s tra fish has been exported to 117 markets, including five new markets since the first quarter of 2021.

In mid-May, the Food Safety and Inspection Service under the US Department of Agriculture recognised six more Vietnamese tra fish processing factories to be eligible for exporting their products to the US market, bringing the total number of eligibility-recognised factories to 19.

Tra fish export to the US remained promising, VASEP said, citing statistics of the International Trade Centre that frozen tra fish prices of Vietnam in the US hit a new record of nearly 5 USD per kg, about 2 USD higher than the same period last year. This was also the strongest increase in the past three years.

As for Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) markets, tra fish exports to Mexico, Canada, Australia, and Japan were robust in the first six months of this year, reaching 170 million USD, up by 64% against the same period last year.

According to Truong Thi Le Khanh, Chairwoman of the Board of Directors of Vinh Hoan Joint Stock Company, with the rising demand for tra fish in the US, Europe and China together with the COVID-19 pandemic now under control and the shortage of supply, 2022 would be “very magical” for the tra fish industry with all factories to be profitable.

Tra fish prices would keep increasing till the end of this year, bringing profits to tra fish producers and exporters, although costs such as feed and logistics increased.

A recent report by BIDV Securities Company (BSC) said that Vietnam’s tra fish industry was entering a growth period after two years of a downtrend due to the impact of the COVID-19 pandemic and the disruptions of the supply chain in 2020-21.

Tra fish import demand would increase significantly until the end of the year, after a long time pressed by the pandemic, BSC said.

BSC said that the US demand for tra fish would increase strongly as the US faced a shortage of domestic catfish supply, which had been the impetus for Vietnam’s tra fish export from the end of 2021.

As for the Chinese market, BSC believed that China would gradually reopen with a huge consumption demand which had been pent-up during the past two years as the impact of the pandemic. China would be an important market for tra fish export expansion.

Tra fish export was estimated at 1.54 billion USD in 2021.

Service growth key to Da Nang's economic recovery: official

The service sector in the central coastal city of Da Nang posted encouraging progress in the first half of this year, making it the main pillar helping the economy overcome difficulties, recover, and develop, according to Tran Van Vu, director of the municipal Statistics Office.

In the period, the city’s economic scale was estimated to exceed 57.79 trillion VND (2.47 billion USD), of which the service sector accounted for 67.44%. The industry grew 9.82% and made up 89,95% to the overall growth of the economy, which was at 7.23%.

Meanwhile, the local trade expanded by about 5.9% against the same period last year, with retail sales of goods nearing 31.92 trillion VND.

Revenue from accommodation and food services stood at some 8.329 trillion VND, up 13.2% year-on-year. The total number of visitors served by local lodging facilities was estimated at 1.3 million, an annual increase of 33.7%.

Other trade-service areas such as transport-postage-delivery, information-communications, and finance-banking-insurance also recorded significant annual revenue growth, at 23.5%, 9.4%, and 7.42%, respectively.

Secretary of the municipal Party Committee Nguyen Van Quang said in the first six months, authorities promptly issued many policies and took measures to help the city safely, flexibly, and effectively adapt to the pandemic and recover.

Also during the period, Da Nang successfully hosted the 16th Asian route development forum (Routes Asia 2022). As a result, it saw a significant increase in the volume of domestic flights and a growing trend in the number of foreign arrivals.

Office absorption stays stable in Hanoi: CBRE

Strong demand will ensure stable absorption of office space in Hanoi in the second half of 2022, according to real estate services firms CBRE.

CBRE experts said rental prices for both Grade-A and B offices in the capital city will also stay stable in H2.

Three Grade-A office projects and two Grade-B ones will be unveiled in the last six months, they said, noting that most of new supplies will come from outlying areas.

Total office supplies in H1 surpassed 1.6 million square metres, 38% of which were from Grade-A projects.

Despite limited supplies, more than 20,000 square metres of offices were rented during the reviewed period, and most of the absorbed space belonged to Capital Place – a Grade-A project in Ba Dinh district.

Following the improvement trend in the previous quarter, rental prices in Q2 continued to increase. They stood at 28.7 USD per spare metre each month for Grade-A offices, up 4% quarter on quarter and 5.8% year on year; and at 14.3 USD for Grade-B ones, up 1.8% quarter on quarter and 2.6% year on year, according to CBRE.

The office vacancy rate in Q2 declined to 16.6% among Grade-A offices, down 2.3% quarter on quarter and 4.5% year on year, and to 10.4% among Grade-B ones, down 0.3% quarter on quarter and 1.3% year on year.

Such sectors as information technology, banking, finance, and insurance still took the lead in the office market when they accounted for 37% of total transactions in Hanoi.

Many of the transactions were made by domestic real estate companies that opened new offices in the city. Particularly, the co-working space market rebounded as they made up 17% of total transactions in H1, CBRE found.

Hoa Phat’s steel sales hit nearly 4 million tonnes in first half

Hoa Phat Group has reported that it sold nearly 4 million tonnes of steel in the first half of 2022, up 6% compared to the same period last year.

Of the figure, construction and hot-rolled coil (HRC) steel reached 2.38 million tonnes and 1.4 million tonnes, up 29% and 7% year-on-year, respectively.

In June alone, the firm recorded a strong surge of construction steel sale, hitting 348,000 tonnes, up 51% month-on-month

The result was attributed to the increasing sales in the southern market, and the strong export, with respective surges of 200% and 60% over the same period in 2021.

The group said it has maintained its high growth in export thanks to exploiting some new markets such as Singapore and Hong Kong (China). Orders from traditional markets such as Canada, Japan, Cambodia, and Thailand still remain stable.

In the January – June period, the firm produced 4.3 million tonnes of crude steel, 8% higher than the corresponding period in 2021.

Hoa Phat is the largest steel producer in Vietnam. It has created jobs and stable income for nearly 30,000 labourers nationwide, and in Australia and Singapore.

Laos enjoys 400 million USD of trade surplus with Vietnam

Laos enjoyed over 400 million USD in trade surplus with Vietnam in the first six months of this year, excluding trade on power, according to Laos’ Ministry of Industry and Commerce.

The ministry reported that in the period, Laos earned about 620 million USD from exporting goods to Vietnam, while importing about 216 million USD worth of goods from the neighbouring country.

Meanwhile, Laos’ export revenue generated from the Chinese market in the first six months of this year hit 1.13 billion USD, while imports were 680 million USD.

However, the country suffered trade deficit with Thailand, with exports of 565.5 million USD and imports of 1.6 billion USD, according to the ministry.

It said that Vietnam is a major foreign investor and trade partner of Laos.

Last year, trade between Laos and Vietnam reached 1.37 billion USD, up 33 percent year on year, including Vietnam’s imports of 780 million USD, a surge of 70 percent over the previous year.

Vietnam mainly exports to Laos iron and steel, fuel, fertilisers, vegetables, ceramics, electrical wires, paper, and textiles, while importing ores and other minerals, fertilisers, timber and wood products, rubber and vegetables from the neighbouring country.

Binh Duong: over 80% firms optimistic about production – business in Q3

As many as 84% of the businesses in a recent survey conducted by the statistics department of the southern province of Binh Duong say that their production will be more stable and grow in the third quarter of 2022.

Particularly, 48.8% of the surveyed enterprises expected their production and business to be better, 35.2% hoped for stability in their situation, and 15.9% a more difficult time to come.

Notably, up to 100% of the state-owned respondents expected for more stable and better production and business in the third quarter compared to the second quarter.

Meanwhile, foreign-invested firms were the most optimistic about production and business with 87.4% expecting better performance or stability in the third quarter.

Director of the provincial statistics department Ngo Van Mit said that the survey results show the strong recovery momentum of production and business activities in Binh Duong. 

Enterprises operating in the locality are confident to expand production and business, he said. 

According to Chairman of the provincial People’s Committee Duong Vo Van Minh, the GRDP, industrial production index (IIP), and total revenue from retail sales of goods and services of Binh Duong in the first half of 2022 rose by 6.84%, 8.35%, and 12.3%, respectively.

The locality earned 32 billion USD from exports in the period. Its budget revenue was estimated at 34.8 trillion VND (1.49 billion USD), reaching 58% of the year's estimate assigned by the Prime Minister.

Deputy PM demands appropriate moves be made to avoid economic shocks

Deputy Prime Minister Le Minh Khai requested appropriate measures be taken to guarantee macro-economic stability and control inflation to avoid economic shocks while maintaining normal production and business activities and ensuring people’s jobs and income.

Addressing a teleconference on July 7 to review the six-month implementation of financial - budgetary tasks, the Deputy PM highlighted the year-on-year GDP growth of 6.42% in the first half of 2022, compared to 5.74% in the same period last year, with the second-quarter pace of 7.72% being the fastest since 2011.

Macro-economic stability was sustained while major balances kept and inflation under control, he said, noting that the consumer price index (CPI) rose 2.96% in Q2 and 2.44% in H1, relatively low compared to the same periods of pre-pandemic years.

This was the result of enormous efforts amid surging inflation in many countries, he added.

Thanks to achievements in the socio-economic recovery and development process, Vietnam was one of the two Asian-Pacific economies to have its long-term sovereign credit rating raised to “BB+” with a “stable outlook” by S&P.

Khai applauded the financial sector’s contributions to those accomplishments, saying not so many fiscal policies have been carried out like during the COVID-19 pandemic and H1 this year, helping tackle difficulties facing businesses and people and facilitate socio-economic recovery and development.

Pointing out challenges to the economy, he asked the sector not to rest on its laurels but keep a close watch on the situation and make timely response to fast changes in order to surpass development targets for 2022, including an economic growth rate of 6.5%, inflation kept under 4%, and macro-economic stability maintained.

Vietnamese per capita income sees sharp increase over three decades

Vietnam’s per capita income recorded a sharp increase to US$3,560 in 2021, or a 14fold increase compared to the 1995 figure.

In 1995 Vietnamese per capita income was US$250, ranking ninth out of 10 countries in Southeast Asia, just above Myanmar with US$90. Meanwhile, Singapore was the country with the highest per capita income, reaching US$23,630.

However, 1997 saw Vietnamese per capita income surpass that of Cambodia to rank eighth in the region. At this time, the country’s per capita income was about US$330, higher than Myanmar’s US$130 and Cambodia’s US$320.

Throughout the 1997 to 2021 period, Vietnam surpassed Myanmar, Cambodia, and Laos, to rank in seventh position. Last year witnessed its average income per capita reach US$3,560 annually. However, the country remained behind the likes of Singapore, Brunei, Malaysia, Thailand, Indonesia, and the Philippines.

Most notably, between 1995 and 2021 the country’s average income increased more than 14 times, representing the highest rise in ASEAN. This figure shows Vietnam has actively developed its economy and improved the overall quality of life for local people.

In the 2021 - 2025 period, the country will seek to improve labour productivity, apply scientific and technological advances, and enhance the overall quality of human resources.

B2B meeting seeks ways to bring more American tourists to Phu Quoc

National flag carrier Vietnam Airlines and the Kien Giang provincial Department of Tourism co-hosted a business-to business (B2B) meeting on July 7 to strengthen trade exchanges between local businesses and US firms and to attract more US arrivals to Phu Quoc island.

At the event, Jason Ware, a representative of the US business delegation, highlighted Phu Quoc’s tourism products and services, saying the entertainment services, resorts, and climate conditions in the island city are highly suitable to the tastes of American holidaymakers.

He revealed the US business delegation will co-ordinate with travel agencies in Ho Chi Minh City, Hanoi, Nha Trang, and Phu Quoc to bring more US visitors to the island and vice versa in the future.

Quang Xuan Lua, deputy director of the provincial Department of Tourism, said the locality has called for greater investment and enhanced linkages among tourism businesses both at home and abroad.

Kien Giang is focused on investing in infrastructure, designing tourism products, and organising tourism events to transform Phu Quoc into an attractive destination for visiting tourists, she said.

Lua expressed her desire to see the Vietnam Airlines Corporation consider co-ordinating with travel firms to launch direct air routes between the US and Phu Quoc.

The first half of the year saw Kien Giang welcome approximately 3.5 million visitors, including 46,000 international arrivals, up 51.2% against the same period from last year. Its total tourism revenue reached nearly VND4,000 billion, a rise of 65.7% year-on-year.

Since the beginning of the year, the locality welcomed 8,791 US tourists to the Phu Quoc island city.

Vietnamese trade surplus to EU reaches US$15.5 billion in H1

The nation’s export value to the EU grew further in the first six months of this year, resulting in a trade surplus of US$15.5 billion, a rise of nearly 39%, thanks to the bilateral free trade agreement in place between the two sides.

Statistics highlight that total trade between Vietnam and the EU stood at an estimated US$31.7 billion in the first half of the year.

Of the figure, Vietnam exported US$23.6 billion worth of goods to the bloc, while it imported US$8.1 billion worth of products from the lucrative market.

The Netherlands, Germany, Italy, Belgium, France, Spain, and Austria represent key markets in the region importing Vietnamese commodities.

Most notably, exports picked up on items such as cashew nuts, coffee, vegetables, fruit, fishery products, rice, and timber products.

These positive signs are attributable to the EU - Vietnam Free Trade Agreement (EVFTA) which took effect from August 1, 2021. Vietnamese exports continued to expand despite the lingering impact of the COVID-19 pandemic coupled with the Russia-Ukraine conflict which has pushed material and fuel prices up, as well as rising transportation costs.

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