Vietnamnet.vn
Podcast
The upcoming fair is expected to attract more than 100 Vietnamese and foreign exhibitors including those from the Americas, Europe, mainland China, Hong Kong, Taiwan, Malaysia, Indonesia and Thailand.
They will showcase advanced wood processing technologies, machinery and raw materials in more than 700 booths, organisers said.
Several conferences will be held on the sideline of the fair such as a seminar introducing Canadian wood and its market, a seminar discussing intra-regional trade promotion and a workshop on accessing capital for timber enterprises.
Deputy director of Binh Duong Department of Industry and Trade Nguyen Thanh Hà described the event as a good chance for manufacturing enterprises to access new technology and the world's legal source of raw materials in Vietnam.
The fair will also create opportunities for domestic and international organisations to meet, and establish long-term cooperative relationships to contribute to enhancing the sustainable development of Vietnam’s processing industry, she said.
During the press conference, Ha also suggested the State and relevant ministries and sectors support wood processing enterprises in improving their capacity to be able to deal with commercial competition.
Assistance in developing and expanding material areas to provide timber with certificates of sustainable forest management to meet the needs and tastes of consumers should be also included, Ha said.
She also emphasised the importance of facilitating the development of supporting industries of the wood sector and issuing supportive policies on tax, insurance, and credit to create favourable conditions for businesses in the current difficult time.
Organised by Viforest Fair Co, a joint venture between five wood processing industry associations (VIFOREST, HAWA, BIFA, DOWA, and FPA Binh Dinh), the fair will take place at the WTC Expo Binh Duong.
Do Xuan Lap, General Director of Viforest Fair Co said the fair would not only offer opportunities for businesses in the wood industry to meet, exchange information, and cooperate, but also create linkage chains among raw material and part suppliers; machinery and technology providers, manufacturers and traders. This will help businesses to team up and develop sustainably right here in Vietnam.
Only half of companies on stock market comply with information disclosure norms
Of 731 companies listed on the Ha Noi and HCM City stock exchanges, only 364 out have met information disclosure standards this year, marginally fewer than last year, a survey for the 2023 IR Awards programme has found.
The survey, done between May 2022 and April this year by Vietstock, the Viet Nam Association of Financial Executives and FILI magazine, was based on criteria for information disclosure set by the Ministry of Finance and other agencies.
The rate of listed companies meeting the standards has risen from only 3 per cent in 2011 to 50 per cent this year, but in the last three years has tended to level off (54 per cent in 2021, 52 per cent in 2022).
The organisers attributed it to the COVID-19 pandemic and some major events on the stock market when businesses were affected in general.
Of the 364 listed companies that met disclosure obligations, the securities industry led with 20 out of 25 followed by banking with 13 out of 20 cent.
The IR Awards seek to honour listed firms that comply with information disclosure requirements.
HNX to launch new bond trading system
The Ha Noi Stock Exchange (HNX) says basic preparations for the separate bond trading system have been completed.
The new system for trading corporate bonds is expected to be officially launched at the beginning of July, with more than 16,000 bonds estimated to be traded.
HNX has developed software and built a first-phase system with basic functions for trading private placement bonds.
The system allows for the integration of multiple markets and may trade a wide range of commodities on the same platform.
The processing capacity of the system can reach 20 to 30 million commands per session, allowing it to handle 15,000 to 20,000 orders per second.
Trading members, mainly securities firms, will perform transactions on the northern exchange's system.
The HNX's trading system only receives orders from securities companies through its order entry system, while the brokerage firm’s trading systems are used for private placement of bonds.
The securities trading companies are responsible for determining the status of an investor and ensuring that the investor is the right subject of bond trading in accordance with regulations.
The parties involved in the transaction reach an agreement on the transaction's contents themselves.
Trading times are from Monday to Friday every week, with two trading sessions: the morning session from 9am to 11am and the afternoon session from 1pm to 3pm (local time).
US conducts a midterm review of safeguard measures on solar energy products
The United States International Trade Commission (USITC) has initiated a midterm review of safeguard measures on solar energy panels and components, including components, equipment and photovoltaic cell components, whether partially or fully integrated into other products.
These measures were imposed in February 2018 and extended by President Joe Biden in February 2022 for an additional four years. The extension increased the tariff rate quota to 5 gigawatts, doubling the original measure.
Under the extension, imported products within the tariff rate quota will not be subject to safeguard duties but will be subject to regular import duties based on the current US tariff schedule (currently set at zero per cent). Products beyond the quota will face a safeguard duty of 14.75 per cent for the first year, gradually decreasing by 0.25 per cent each subsequent year.
The midterm review is required for safeguard measures lasting more than three years. Its purpose is to assess the impact and effectiveness of the measures on the US manufacturing industry. Based on the review results, the USITC may propose adjustments to the measures, such as maintaining the duty rate, extending or reducing their duration, lowering the duty rate or exempting certain countries from the duties.
US imports of solar panels surged to over 850,000 tonnes in the first quarter this year, a significant increase from the previous quarter's 670,000 tonnes. Among these imports, Viet Nam held the largest market share, accounting for over 30 per cent, followed by Thailand, Malaysia, and Cambodia. Collectively, these four Southeast Asian countries comprised nearly 80 per cent of the photovoltaic (PV) panel imports to the US in the first three months, as per statistical data provided by Panjiva, a supply chain research unit of S&P Global.
Panjiva also highlighted that the Vietnamese production branch of American company First Solar Inc, a major supplier of solar panels to the US market, is not under investigation by the US Department of Commerce.
A hearing related to the investigation is scheduled for November 14, 2023. The USITC is required to submit the midterm review report to the President and the US Congress by February 6, 2024.
Deputy PM hosts leaders of RoK’s State-owned banks
Deputy Prime Minister Le Minh Khai hosted a reception in Hanoi on June 23 for President and CEO of the Industrial Bank of Korea (IBK) Kim Sung-tae and Chairman and CEO of the Korea Development Bank (KDB) Kang Seoghoon who are accompanying President of the Republic of Korea (RoK) Yoon Suk Yeol during his ongoing state visit to Vietnam.
Underlining that the Vietnamese Government hopes that with the lifting up of bilateral ties to a comprehensive strategic partnership, the two sides will enter a new glorious chapter of cooperation, Khai said he expects RoK businesses, including its banks in Vietnam, will further promote their role and support the growth of partnership between the two countries, especially in economy.
Khai took note of the positive contributions of the two banks in connecting RoK investment and projects in Vietnam, highlighting that recently, the IBK expanded its business in Vietnam with greater attention to small- and medium-sized enterprises and the renewable energy sector. This is a right way for the bank in Vietnam, showing the its strong commitment to accompanying with the Vietnamese economy, matching the current key orientations of the Vietnamese Government, he said.
The official suggested that the IBK continue to promote its experience and strengths as well as its role in the SME sector, thus positively supporting the Vietnam-RoK economic cooperation.
Khai hailed the cooperation of the KDB with the Vietnamese Ministry of Finance, supporting the ministry in seeking suitable operation models for the restructuring of the Vietnam Development Bank (VDB).
For his part, Kang Seoghoon held that although the global economy is facing difficulties, Vietnam has still enjoyed sustainable growth.
Kang said he hopes for a strong partnership with Vietnamese firms in the fields of high technology, digital transformation, and green energy development for climate change mitigation. He said that the bank expects the formation of a branch in Vietnam to share experience with and support Vietnamese firms to reach out to the world.
IBK Chairman Kim Sung-tae said that he is keen on setting up a bank specialising in providing financial services to small- and medium-sized enterprises, thus upgrading the ecosystem of the Vietnamese SOEs, contributing to the growth of the ties between the two countries.
Deputy PM Khai said that the RoK is currently the country with the greatest presence of finance-banking organisations in Vietnam.
He noted that Vietnam is hosting 96 credit institutions and foreign banks’ branches.
Since 2011, Vietnam has been strongly implementing economic restructuring, including that in the financial sector. For the 2021-2025 period, Vietnam aims to restructure the system of credit institutions to strengthen the quality and efficiency of the system, he said, adding that the country hopes for the positive involvement of RoK finance-banking organisations in the process.
He underlined that the Vietnamese Government encourages foreign finance-banking organisations to engage in the restructuring of local credit institutions and dealing with banks with weak performance. This will create abundance chances for foreign financial organisations who are keen on establishing presence in Vietnam, he added.
Top 10 prestigious insurance firms in 2023 announced
The Vietnam Report JSC on June 23 announced the list of the top 10 most prestigious life and non-life insurance companies in Vietnam in 2023.
The 10 most prestigious life insurance companies include Bao Viet Insurance, Dai-Ichi Vietnam, AIA Vietnam, Prudential Vietnam, Chubb Vietnam, Generali Vietnam, Hanwha Life Vietnam, Cathay Vietnam, MB Ageas and Mirae Asset Prévoir.
Meanwhile, the top 10 non-life insurance companies in 2023 are Bao Viet Insurance, PVI Insurance, Bao Minh Joint Stock Corporation, VietinBank Insurance Company, Military Insurance Corporation (MIC), Petrolimex Joint Stock Insurance Company (PJICO), BIDV Insurance Corporation, Aviation Insurance JSC, Agriculture Bank Insurance Joint Stock Corporation, and Saigon-Hanoi Insurance Corporation.
Vietnam Report made assessments independently on the foundation of their financial capacity and media reputation, and a survey of relevant organisations and individuals conducted in May – June this year.
According to Vietnam Report General Director Vu Dang Vinh, insurance premium revenue in the first five months of 2023 was estimated at nearly 93.2 trillion VND (3.96 billion USD), down nearly 1.5% over the same period last year. Many insurers admit that this is a difficult period for the insurance market.
Experts held that after economic fluctuations and disruptions in the global supply chain due to the COVID-19 pandemic, the Law on Insurance Business (amended), which took effect on January 1, 2023, is expected to be a dose of “vaccine” to make the insurance market more transparent.
They believed that difficulties facing the sector will last for only a short time, and the potential of the market remains great.
Up to 72.7% of the respondents in the survey by Vietnam Report said that strong technological development and application of technology in all stages of the insurance industry’s value chain represent the greatest opportunity to promote recovery of the industry.
Work to start on Ring Road No.4 in Hanoi Capital Region on June 25
The construction of Ring Road No.4 in the Hanoi Capital Region will begin on June 25 in four locations, the Prime Minister decided on June 22.
The locations will be in the outlying districts of Hoai Duc, Soc Son, Thanh Oai and Thuong Tin.
The project shows the determination, cooperation and commitment of Hanoi, Bac Ninh and Hung Yen. The objective is to expand spatial connectivity and promote interregional connectivity for the shared future development of the Capital Region and the country.
The Hanoi People’s Committee has so far approved three sub-projects and completed the appraisal of the feasibility study report of specialised construction agencies. The local authorities have also allocated hundreds of billions of Vietnamese dong for the sub-projects.
The land clearance, compensation, and resettlement work in districts related to the project have recorded positive results.
The management board has completed the selection of consulting contractors for surveying and making technical design as well as cost estimation for the construction of high-voltage power transmission lines from 110kV to 500kV.
Ring Road No.4 in the Hanoi Capital Region is about 112.8km long, with around 58.2km in Hanoi, nearly 19.3km in neighbouring Hung Yen and some 35.3km in Bac Ninh provinces.
It has a total investment of over 85.8 trillion VND (3.73 billion USD), more than 28.1 trillion VND of which will come from the State budget, over 28.19 trillion VND from the local budget and the remainder from build-operate-transfer (BOT) venture.
Top 10 prestigious Vietnamese banks in 2023 revealed
The Vietnam Report JSC has recently published this year's list of the top 10 most prestigious banks in Viet Nam. The annual list recognises efforts to develop the prestige and institutions in the financial-banking industry.
The ten banks honoured this year are Vietcombank, VietinBank, Techcombank, BIDV, MBBank, VPBank, Asia Commercial Joint Stock Bank (ACB), AgriBank, TPBank, and Vietnam International Commercial Joint Stock Bank (VIB).
It also listed the ten most prestigious private joint-stock banks. They are Techcombank, VPBank, ACB, TPBank, VIB, HDBank, Sacombank, SahaBank (SHB), Vietnam Maritime Commercial Join Stock Bank (MSB), and SeABank.
Vu Dang Vinh, General Director of Vietnam Report, said that in the first five months of the year, credit growth reached 3.17 per cent, significantly lower than the 8 per cent recorded in the same period last year. The profit before tax of the banking system in the first quarter was lower than expected.
Vietnam Report's survey results show that the industry is unlikely to see any breakthrough in growth in the last six months of the year.
Most banks believe the industry will be steady in the second half of 2023.
Vinh added that at the 2023 Annual General Meeting of Shareholders, many banks set cautious business plans for 2023, while all banks adjusted their profit plans.
This shows that 2023 is seen by the banking industry as a challenging year as they have to continue to share resources and help cushion pressure on businesses amid slowing global economic growth.
Meanwhile, problems such as interest rate hikes, bad debt, and frozen real estate and bond markets, which have not been fully reflected in last year's business results, will have a significant impact on the banks' operations this year.
Base on the survey’s result, Vietnam Report said that challenges that the banking industry faces in 2023, include rising bad debt, higher inflation risks, low global economic growth, and recession of the stock, real estate, and bond markets.
In addition, the emergence of Fintech companies are becoming fierce competition, undermining banks' dominance in the industry, which is a big problem that banks will confront in the near future.
The top 10 most prestigious Vietnamese commercial banks were selected using scientific and objective principles.
Banks are evaluated and ranked based on three key criteria: financial capability as demonstrated by the most recent year's financial statements, media reputation and survey results of related subjects conducted in June 2023.
Land-related procedures remain burdensome for businesses
The preparation and completion of additional documentation for land-related administrative procedures remain burdensome for businesses, especially in "sub-procedures", according to the 2022 Administrative Procedure Compliance Cost Index (APCI 2022) report.
The report was conducted by the Prime Minister’s Advisory Council on Administrative Procedure Reform, with support from the US Agency for International Development (USAID) through the LinkSME project which aims at promoting reform and enhancing the connectivity of small- and medium-sized enterprises.
To assess compliance costs for land-related procedures, a team of experts surveyed over 3,000 firms regarding three procedures, including the registration and issuance of certificates of land use rights, ownership of residential houses, and other assets attached to land for the first time; registration of changes in land use rights, ownership of assets attached to land, and transfer of investment capital in the form of land use rights; and change of land use purposes.
The report pointed out that the main reason for such "sub-procedures" is the lack of a land database system and interconnectivity among the land management agencies at various levels.
Last year, the APCI score for land administrative procedures reached 71.4 out of 100, with an average compliance cost of 6.2 million VND (269 million USD). The central key economic region achieved the highest score of 86.4 and the lowest compliance cost of 3.3 million VND, which is only 47% of the compliance cost in other key economic regions - the region with the lowest APCI score nationwide.
Vinh Phuc province demonstrated the best administrative procedures, with a total compliance cost of approximately 2.3 million VND per procedure, equivalent to 68% of the average compliance cost in the top region and 37% of the national average compliance cost.
Time cost accounted for 23% and direct cost made up 77% of the total compliance cost for conducting a land administrative procedure. The average time required by businesses nationwide to complete a land administrative procedure was 32.2 hours.
The southern key economic region led the country in terms of time costs for land administrative procedures, scoring 83.3. Businesses in this region only spent around 20.1 hours to complete a land administrative procedure. The Mekong Delta key economic region had the lowest score for time costs at 58. Ba Ria-Vung Tau province demonstrated the best practicality in terms of time required for land administrative procedures, with 6.9 hours, equivalent to 21% of the national average.
The steps related to preparing and completing the documentation accounted for 65.4% of the time required for administrative procedures. The on-site survey step was also one of the crucial steps, occupying 19.6% of the total time for administrative procedures.
Roughly 34% of the surveyed businesses conducted on-site surveys, with an average time of about 6.3 hours, or 19.6% of the total time for administrative procedures.
HSBC Vietnam helps Vietnamese e-vehicle start-up access foreign investment
The HSBC Vietnam will support Dat Bike Vietnam Co. in digitalising its financial operations and taking initial steps into the international financial market.
Under an agreement on strategic cooperation signed recently between the two sides, in the initial phase of collaboration, HSBC Vietnam will help Dat Bike increase the rate of automation through upgrading its accounting system, enabling the firm to initiate and approve a series of financial transactions with just a click.
The strategic agreement brings Dat Bike opportunities to access foreign capital sources.
HSBC will provide a unified platform for the Vietnamese e-vehicle startup to manage centralised capital, creating a solid foundation for the firm to expand its operation to other Southeast Asian markets, starting with Singapore - the largest foreign investor in Vietnam in 2022 and the first five months of2023.
On the other hand, the strategic partnership with Dat Bike will help realise HSBC Vietnam’s strategy towards promoting promising companies which undergo fundamental transformations in their production and distribution methods.
According to Ahmed Yeganeh, head of Wholesale Banking of HSBC Vietnam, Vietnam’s promising new economic sectors will play an important role in the Southeast Asian nation's economic growth.
Dat Bike is an example of a new economy corporate with their innovative business mindset and sustainability strategy to bring green vehicles to Vietnam, he noted.
Founded in 2019 by software engineer Nguyen Ba Canh Son, Dat Bike has produced three models of electric motorbikes. The company is striving to become a leading local manufacturer in greening the 25-billion-USD two-wheeler industry in Southeast Asia.
Son said that through the partnership, the firm wishes to join HSBC’s effort in developing a "new economy" ecosystem, thus mobilising more capital to realise the goal of converting petrol motorbikes to electric ones in Vietnam and Southeast Asia.
Int'l refrigeration technology, plastics expos to be held in July
Two international exhibitions, the 15th exhibition on HVAC, Refrigeration & Smart Building Technologies in Vietnam (HVACR Vietnam 2023) and the 10th International Plastics & Rubber Technologies and Materinals Exhibition for Hanoi (Plastics & Rubber (Vietnam, Hanoi 2023) will take place in Hanoi from July 25-27, the event's organiser announced at a press conference on June 22.
HVACR Vietnam 2023 is expected to attract more than 150 Vietnamese and foreign exhibitors including those from Japan, mainland China, the Republic of Korea, Hong Kong (China), Taiwan (China), India and Thailand, it said.
They will showcase a variety of products, including air conditioner components, chemicals, cold storage and other types of machinery.
BI Tee, General Director of Informa Markets Vietnam – the event's organiser, said that reducing emissions and impacts on the environment is the goal that businesses are pursuing.
HVACR Vietnam offers a chance for businesses to access scientific initiatives, opening up investment opportunities in new technologies, he said, adding it will help reduce the environmental impact of the manufacturing industries and increase economic benefits.
Plastics & Rubber Vietnam, Hanoi 2023 will feature 100 pavillions from more than 14 countries and territories.
Huynh Thi My, General Secretary of the Vietnam Plastics Association, said that in the past, Vietnam was one of the countries with a huge amount of plastic waste. However, enterprises have made positive moves by joining hands with State agencies and people in environmental protection.
The expo will revolve around the topics of developing a green plastic industry in the circular economy to promote a sustainable future, according to the organiser.
Several seminars will be held within the framework of expos such as the one on innovation in sustainable cooling technology and a workshop discussing solutions to achieve net-zero-emission.
HCM City to host Baby Products & Toy Expo next month
The Vietnam International Baby Products & Toys Expo (IBTE) 2023 will take place for the second time in Ho Chi Minh City from July 19-21.
IBTE 2023 will be organised alongside two other expos, namely Vietnam International Electronics & Smart Appliances Expo (IEAE) and the Vietnam International Gifts & Housewares Expo (IGHE).
The three exhibitions, with up to 500 booths, will be organised by VINEXAD and CHAOUY EXPO, in collaboration with the Vietnam Association of Consumer Goods Development (VACOD) and the Vietnam Electronic Business Association (VEIA).
IBTE 2023 will present 200 factories specialising in exporting products for mothers and babies, including toys and other products for kids under 14.
IBTE will help companies connect to customers, with the long-term goal of making IBTE the most influential and professional B2B exhibition for toys and children's products in Southeast Asia.
The market for children's products in Vietnam has an annual turnover of more than 7 billion USD. Children under 14 account for nearly 40 per cent of the country's 97 million people.
The Vietnamese toy market is growing rapidly thanks to improvements in living standards and a growing middle-class.
Credit rose by 3.36 per cent in H1 2023
Credit growth of the banking system as of June 15 this year reached about VND12.32 quadrillion, an increase of 3.36 per cent compared to the end of 2022, according to the State Bank of Vietnam (SBV).
At a press conference announcing the results of banking activities in the first half of 2023 held in Ha Noi on Wednesday, the SBV said the credit increased by 8.94 per cent compared to the same period last year.
The credit growth was much lower than the same period of last year. As of June 9, 2022, credit increased by 8.15 per cent compared to the end of 2021.
The credit structure in the first six months of this year continued to focus on production, business and the Government's priority industries, which made a positive contribution to the country’s GDP growth. Besides, the credit flow was controlled in potential risk areas.
In 2023, on the basis of the nation’s 2023 economic growth target of about 6.5 per cent and inflation about 4.5 per cent set by the National Assembly and the Government, the SBV said it planned a credit growth of about 14-15 per cent, but there might be adjustments in accordance with developments and actual situations.
SBV’s Deputy Governor Dao Minh Tu said liquidity of the banking system has been abundant and commercial banks haven’t been pressured by the credit growth quota. The reason for the low credit growth of the banking system was mainly due to the sharp decrease in credit demand in the wake of difficulties faced enterprises and the economy.
The demand for investment, production and business decreased, which caused a corresponding decline in credit for production and business of firms and individuals.
Besides, some groups of customers had capital needs, but they had not met the banks’ loan conditions, or still have problems with legal procedures. After a long period of economic difficulties, the average risk level of customers is higher. This is especially true considering it is difficult for firms to prove their business performance effectiveness under the current context of high input costs, a difficult consumption market, and decreasing orders and revenue.
In addition, some customers, who have not recovered financially after the COVID-19 pandemic, have incurred bad debts or overdue debts, so commercial banks must be cautious in making lending decisions. They cannot lower their credit standards as they must prioritise the safety of the banking system.
For banks, according to the Deputy Governor, supporting credit access for firms does not mean lowering lending standards. Credit growth must go along with ensuring the right standards, asset quality and the safety of the banking system.
MEP says Viet Nam well-positioned to fight deforestation
Viet Nam is well-positioned to contribute to the EU's efforts in fighting global deforestation.
This remark was made by Member of the European Parliament (MEP) Daniel Caspary in an interview with Zingnews on Tuesday.
He said the EU's regulation on deforestation-free products (EUDR) is instrumental in achieving climate-neutral targets. Viet Nam would have no trouble complying with EUDR thanks to the similarity between the country's legal framework and the EU's.
He also said Viet Nam and the EU shared the same target for net-zero carbon emission by 2050. The Just Energy Transition Partnerships concluded at the EU-ASEAN Summit last year would help both parties move one step closer to the remarkable feat.
The MEP also mentioned the EU-Vietnam Investment Protection Agreement (EVIPA), the ratification of which had been sped up in the European Parliament. Most MEPs had ratified the agreement and were pushing others to follow their steps.
According to Caspary the slow ratification of EVIPA in some countries has nothing to do with the EU-Viet Nam relations, but comes from their specific parliamentary procedures, which require time for a seal of approval.
He expressed his hope for an early ratification of EVIPA, which would help cement bilateral relations and unlock more commercial opportunities for both parties. He said EVIPA would hold the key to the EU's diversification of supply chains in which Viet Nam always plays an important role.
The EU official also underlined the role of the EU-Vietnam Free Trade Agreement (EVFTA) in bilateral trade. He said EVFTA had raised certain Vietnamese exports to the EU by around 30 per cent in recent years.
What both parties have to do now is to ensure their legal frameworks work in line with the agreement to remove barriers to bilateral trade, according to Caspary.
European Ambassador to Viet Nam Giorgio Aliberti said an EU high-level delegation would visit Viet Nam next week to keep the country well-informed about EUDR.
The ambassador also said the transition to green energy in Viet Nam could not do without the involvement of the public sector. The Government thus should take measures to incentivise more companies to engage in the green transition.
Twenty-seven countries were in the EU rubber-stamped EUDR on April 19. The ratification can be seen as a historic moment in the global fight against agriculture-induced deforestation.
The EU has been among the largest importers of Vietnamese agricultural products, consuming around 13.7 per cent of the country's exports annually. Their staple imports include coffee, cashews, rubber, and pepper.
Vietnam considered rising star to become emerging market
A recent article posted on portfolio-adviser.com, a news website based in the UK, has pointed out the frequent hope that Vietnam will be upgraded from its frontier-market status to the emerging market status.
Many years of consistently high GDP growth have been due to a highly attractive combination of political stability with sound pro-market execution from the government which has managed to slash poverty from 17% to less than 5% in a decade, the article wrote.
“Perhaps the best-known growth driver for Vietnam is its step-change in foreign direct investment (FDI), benefiting from an increase in exports due to what is widely known as China Plus One,” it said.
The country continued to sign more than a dozen key trade agreements during the pandemic-triggered lockdown. These partnerships will make it easier for companies to do business in Vietnam, positioning itself ever more as a manufacturing expert with ease of access to broad, international markets and benefitting from 3,000 kilometres of coastline and the close connections to China.
According to the writing, Vietnam is now moving more towards manufacturing higher-value products, more in electronics rather than textiles.
One of Vietnam’s most critical FDI sources is Samsung Electronics. The technology giant employs tens of thousands of people in Vietnam and is the largest investor in the country, with 50% of its handsets being produced there.
There is frequent hope that Vietnam will be upgraded from its current, off-benchmark, frontier market status to emerging market status by MSCI. The Vietnam stock market overall now meets the size and liquidity requirements to be included, with a four-fold surge in retail participation during the past 2 - 3 years, driven by digital account technology, the article added.
Steel prices drop for 10th straight month in May
Although the demand for building steel rose by more than 26% in May compared to the previous month, steel prices decreased for the 10th month, and steelmakers expected the struggle to continue.
A monthly report from the Vietnam Steel Association (VSA) showed that construction steel output increased by 14.18% over the previous month to 812,085 tonnes, but decreased by 27.3% year-on-year.
Sales of the products in May increased by 26.08% month-on-month to 927,618 tonnes but were unchanged compared to the same period last year.
Raw material prices tended to increase slightly at the end of May, with the rally extending to June. However, due to weak demand, steel producers had to gradually reduce their prices and implement subsidies.
In the domestic market, as of June 15, some steel manufacturers have lowered their prices by 100,000 VND to 270,000 VND per tonne for CB240 steel coils, down to about 13.94 million VND to 14.82 million VND per tonne. They kept the same price for the CB300 rebar as compared to the latest adjustment.
Data compiled by steelonline.vn showed that, during the period, Hoa Phat Group (HPG), the country's largest steel producer, quoted its CB240 steel coils in the northern market at 13.94-14.82 million VND per tonne, a decrease of 100,000 VND.
In the central and southern markets, the prices were at 14.04 million VND per tonne and 14.31 million VND per tonne, respectively, down 100,000 VND and 200,000 VND.
The company said that the falling costs of input materials and steel billets was the cause of the decline in steel prices.
In the first quarter, Hoa Phat achieved 26.6 trillion VND (1.13 billion USD) in sales, a decrease of nearly 40% over last year. Its consolidated profit after tax was more than 383.2 billion VND, completing 5% of the 2023's plan.
Despite the decline, the results were positive after losing up to 3.5 trillion VND in the last two quarters.
The company said that steel production and related products contributed 94% of profit after tax.
The selling prices have been impacted by negative sentiment and sluggish demand across global markets.
The real estate industry shows no signs of optimism as the number of public housing projects under construction is low and the banking system is tightening credit.
The sector has a huge influence on the demand for domestic steel, accounting for some 60-65% of the industry's demand.
Since the beginning of 2023, a number of policies supporting the real estate industry have been implemented, but the market needs more time to recover, according to VNDIRECT Securities.
In addition, given attempts to increase exports, Chinese steel businesses are accelerating their price reduction rates to compete, adding pressure on the downtrend of steel prices in the international markets.
The General Administration of Customs of China (GACC) reported that the nation's steel exports in May totalled 8.4 million tonnes, an increase of 7.6% year-on-year, the highest level since September 2016.
Overall, the first five months saw a high increase in steel exports, up 41% to 36.3 million tonnes from the same period last year.
VNDirect said that steel prices have cooled down recently, and the bearish trend is expected to continue through 2023 due to weak demand and lower input materials prices.
Vietnam’s vegetable, fruit exports flourish in second quarter
After many market fluctuations in the first quarter of 2023, Vietnam’s exports of vegetables and fruits saw positive moves in the second quarter.
According to statistics of the General Department of Vietnam Customs, Vietnam's fruit and vegetable export turnover reached more than 1 billion USD in June 2023, raising the figure in the first half of this year to 2.75 billion USD, more than 63% higher than that of the same period last year.
Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetables Association (Vinafruit), said that the export revenue in June set a record so far thanks to China’s opening to many Vietnamese fruits such as durian and grapefruit.
China led the top five importers of Vietnam's vegetables and fruits with exports to the country accounting for more than 63% of Vietnam's total export value.
Vietnam’s vegetable and fruit exports to the US decreased by 12% over the same period in 2022 but other major importers - the Republic of Korea, Japan, and the Netherlands - saw increases of 12%, 0.5%, and 70%, respectively.
If the upward trend continues until the end of 2023, Vietnam can hit the export goal of 5 billion USD set by the Ministry of Agriculture and Rural Development for 2025, Nguyen said.
The official export channel to the Chinese market is an opportunity for Vietnam to develop the vegetable and fruit sector in the direction of modernity, sustainability, and close links from production to consumption. (Photo: VNA)
A representative of the Agency of Foreign Trade under the Ministry of Industry and Trade said that China is currently implementing a policy of mainstreaming commercial activities, so Vietnam needs to pay more attention to exporting via official channels.
Vietnam has also built material areas, and granted planting area codes following the requirements of the Chinese market to make Vietnamese products eligible to enter the Chinese market.
Late last year, Vietnamese green-skinned grapefruit received a planting area code for export to China. Recently, sweet potatoes and durian were also granted the codes, which creates more motivation for Vietnam’s vegetable and fruit sector to invest in production and export.
Nguyen said that the official export channel to the Chinese market is an opportunity for Vietnam to develop the vegetable and fruit sector in the direction of modernity, sustainability, and close links from production to consumption as well as increase the values and position of Vietnamese fruits and vegetables in the international market.
Ngo Tuong Vy, General Director of Chanh Thu Fruit Export Group Joint Stock Company, said that the company will export 20,000-30,000 tonnes of durian to China in 2023. However, to compete with other exporters from Thailand and the Philippines, Vietnamese businesses and farmers must focus on increasing quality.
Currently, Vietnamese durian has many competitive advantages compared to Thai and Philippine durian. Vietnam's durian output is now increasing to around 1 million tonnes, and harvesting time is almost year-round while Thailand and the Philippines only harvest seasonally. In addition, the shorter shipping distance from Vietnam to China is also an advantage to help Vietnamese durian stay fresh, and the shipping costs included in the price will be cheaper than those of the competitors.
Phuc from the Vietnam Fruit and Vegetables Association said that the Ministry of Agriculture and Rural Development should continue to negotiate and sign more protocols for products to be exported via official channels such as dragon fruit, mango, watermelon, jackfruit, and rambutan.
The Chinese market is expected to be opened for items such as green-skinned pomelo, fresh coconut, avocado, lemon, pineapple, and star apple. In addition, it is necessary to open up other markets such as the RoK, Japan, Australia, and the US.
Businesses’ investment plays vital role in sustainable agriculture development: Insiders
Attracting businesses and investors to pour capital into sustainable agricultural value chains is seen as a key solution to pave the way for, and create breakthroughs in the sector’s development amid intensive integration and the volatile global economy, according to insiders.
Agriculture is considered as a highlight in Vietnam’s economic panorama in 2023. The sector set to earn 54 billion USD in export turnover in 2023.
In recent year, big enterprises’ investments in agriculture have proven effective, helping Vietnamese farm produce be successful in conquering the international market.
Outstanding businesses like Loc Troi Group, Vinamilk, TH Group, Trung An, Folra, Vina T&T, Vinh Hoan, and Minh Phu have exported their agricultural products to many demanding markets.
Experts attributed these results to the guiding role of businesses in creating high-value agricultural products.
They, however, noted agriculture still faces challenges and risks that may make investors and businesses reluctant to enter the sector, adding that it remains less attractive compared to other industries.
According to Minister of Agriculture and Rural Development Le Minh Hoan, the newly-registered foreign investment capital in agriculture surged to 12.5 million USD per project in 2017, but decreased to 4.2 million USD per project in 2021.
According to a resolution issued by the 13th-tenure Party Central Committee on the development of agriculture, farmers and rural areas till 2030 with a vision to 2045, Vietnam will accelerate the application of science and technology to further promote agriculture development, focusing on improving the quality and added value of agricultural products.
The Government has also issued many policies and speed up administration reform to attract and facilitate businesses’ investment in developing sustainable and safe agriculture models.
The Ministry of Planning and Investment has submitted a draft decree on support for agricultural projects to the government, which is expected to lure more investment to the sector.
Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes
.svg){kind=icon}
