Revenue from personal income tax and registration fees associated with real estate transactions in Ho Chi Minh City has surged by 50% to reach over 6.54 trillion VND (257.6 million USD) in the first nine months, according to data from tax authorities.

As many as 75% of revenue collected was from personal income tax related to real estate transfers and the remaining 25% from real estate registration fees, according to the HCM City Tax Department.

Other land-related revenue, including land use fees and taxes, has risen by 58% to 10.51 trillion VND in the period, according to the department.

The department has attributed the growth in revenue to the proactive involvement of residents in real estate transactions ahead of new legislation effective on August 1, and a recent decision by HCM City authorities to raise land prices.

Despite this increase, overall revenue collection has only achieved 26% of the annual target, with total land-related revenue exceeding 17 trillion VND, up 56% year-on-year.

Experts expect that budget revenue from real estate may continue to increase in the fourth quarter due to the implementation of the higher land price framework.

However, projections for the entirety of 2024 may not be fulfilled due to the ongoing sluggish market and delays in ongoing projects stemming from legal issues.

HCM City authorities have recently raised land prices significantly, with residential land in central districts now valued at over 687 million VND (27,000 USD) per square metre, while prices in the outskirts have reached 2.3 million VND, increases of four to 38 times.

The new rates, effective from October 31 until 2025, will determine land compensation, taxes, and administrative fees, with the objective of enhancing State tax revenue.

The highest land prices are recorded on Dong Khoi, Le Loi, and Nguyen Hue streets in District 1, whereas Can Gio district has the lowest rates.

District 4 will experience reductions of 19-35%, while Thu Duc city and adjacent areas will see increases ranging from 1.5 to 11 times.

Agricultural land prices are set between 400,000 VND and 810,000 VND per square metre, while land within technology parks will rise to 12.2 million VND for manufacturing and 15.1 million VND for select streets in Thu Duc city.

The city authorities are committed to ensuring transparency and fairness in land pricing and compensation, addressing existing disparities that have contributed to tax evasion and delays in real estate development./.

Japan's Kanagawa prefecture eyes deeper economic ties with HCM City

Ample room remains for cooperation between Ho Chi Minh City and Japan’s Kanagawa prefecture, especially in sectors like logistics, healthcare, education, and industry, heard a seminar in the southern metropolis on November 13.

Jointly organised by the Kanagawa prefecture administration and the Ho Chi Minh City People’s Committee, the seminar aimed to promote investment ties between the two localities.

Speaking at the event, Vo Van Hoan, Vice Chairman of the municipal People’s Committee, emphasised that Japan is not only a key economic partner for Vietnam but also a strategic investor in HCM City, with close to 1,800 projects and a total investment of nearly USD 6 billion. This reflects the substantial contributions Japanese businesses have made to the city’s socio-economic development, he noted.

Hoan highlighted Kanagawa’s proximity to Tokyo and its modern investment ecosystem, making it an ideal destination with ample opportunities for businesses from HCM City and Vietnam to pursue sustainable growth.

Japanese Consul General in HCM City Ono Masuo pointed out that to enhance ties with Vietnam, Kanagawa has hosted the Vietnam Festa in Kanagawa since 2015, launched the Kanagawa Festival in Vietnam since. For the first time this year, the countries organised a Kanagawa Investment Seminar in HCM City, to deepen future economic relations between the two localities. With Vietnam as the third most populous nation in the Association of Southeast Asian Nations (ASEAN), its market presents vast potential, making it highly appealing for foreign investors, including those from Japan.

Matsumoto Nobuyuki, Chief Representative of the Japan External Trade Organisation (JETRO) in HCM City, noted that Japan’s annual business investment surveys rank Vietnam as the second most attractive investment destination, after the US. He added that Japanese businesses view Vietnam as having the most favourable investment environment in ASEAN. Additionally, more Vietnamese companies are expanding their investments in Japan, achieving noteworthy success. Thus, Japan hopes to continue building a balanced, sustainable partnership between the two sides in the future, he said.

Presenting an overview of the local investment environment, Kanagawa Governor Kuroiwa Yuji highlighted Kanagawa as one of Japan’s economically dynamic prefectures, featuring a well-connected transportation network throughout the country. The prefecture also serves as an international gateway, connecting Japan to Asia and the world through key international commercial ports like Yokohama, Kawasaki, and Yokosuka, as well as Haneda Airport.

To attract more companies to start up and expand investments, the Kanagawa government has rolled out business support programmes, including facilitating company formation, offering financial support for land, buildings, and equipment, and providing tax reductions on real estate purchases. Kanagawa is currently prioritising support for industries that contribute to local development, such as food and beverages and general and commercial machinery, he said, adding that this offers Vietnamese businesses, particularly those from HCM City, an opportunity for expanding cooperation and investment./.

Vietnam Foodexpo 2024 opens in HCM City

Vietnam Foodexpo 2024 opened at the Saigon Exhibition and Convention Centre (SECC) in Ho Chi Minh City on November 13.

The four-day event features more than 500 booths of nearly 400 enterprises from 30 Vietnam's cities and provinces and more than 20 countries and territories such as Germany, Spain, the EU, Russia, Japan, the Republic of Korea, China, India, Malaysia, and Thailand.

On display are a wide range of agricultural products, aquatic products, processed foodstuff and beverages, as well as food processing, preservation and packaging technologies and equipment, among others.

Speaking at the opening ceremony, Deputy Minister of Industry and Trade Phan Thi Thang said that, having accompanying Vietnamese enterprises for a decade, Vietnam Foodexpo has been forming a professional and effective trading and investment platform to help businesses in the food industry introduce and promote their brands, boost business cooperation, and expand import and export markets.

She said that in order to help businesses grasp trends and make strong changes to meet global green and sustainable technical standards, a series of activities within the framework of Vietnam Foodexpo 2024 focuses on providing updated information and diverse perspectives on green transition.

This is an important premise and driving force to promote the process of recovery and development of a green, sustainable economy, in line with the global trend towards the goal of net zero emissions by 2050 that Vietnam committed at the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP 26), she added.

Additionally, this year's expo continues to be a place to honour national food brands.

At the expo, the Vietnam Trade Promotion Agency opened a space for digital trade promotion ecosystem which sees the participation of major e-commerce platforms like Alibaba.com and Lazada, and Mediastep Software Vietnam Co., Ltd.

Vietnamese enterprises and international importers in the food industry can meet at a business matching conference and other connection activities held during the expo./.

Vietnamese representative agencies abroad urged to further support businesses

Vice Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Hoang Quang Phong on November 12 urged Vietnamese representative agencies abroad to further support the business community during the process of international economic integration.

Speaking at a meeting between enterprises and associations, and 23 new Vietnamese ambassadors and consuls general who are in charge of 48 markets worldwide, Phong said that the business community expects Vietnamese representative agencies abroad continue to advise and support Vietnamese businesses in the world market with new waves of investment and technology transfer.

In addition to informing businesses about other countries’ practices and experiences in developing their economies, the ambassadors and consuls general are expected to help Vietnamese businesses with forecasting business trends and identifying niche markets in each country, he said.

Phong expected that the heads of Vietnamese representative agencies abroad in the new term will continue to support economic diplomacy as a political mission; especially in promoting the business environment, potential and strengths of Vietnam's products and services. They will provide businesses with reliable information about the markets, culture and business practices of the host countries, connect and introduce potential and reputable partners to domestic enterprises.

For his part, Deputy Minister of Foreign Affairs Do Hung Viet, who was appointed as the Ambassador, Permanent Representative of Vietnam to the United Nations in New York, said that 2025 is the year for the country to accelerate and make breakthroughs to complete the five-year socio-economic development plan for 2021 - 2025.

Based on the achievements in economy, society and foreign affairs in the past time, the Ministry of Foreign Affairs and the network of 93 Vietnamese representative agencies abroad will continue to implement economic diplomacy, especially in creating a stable and favorable environment, mobilising resources to serve trade, investment and promote new growth drivers, Viet said.

He said the ministry as well as Vietnamese embassies and consulates general in countries will continue accompanying and supporting the Vietnamese business community./.

AgroViet 2024 to take place in Hanoi later this month

Vietnam’s 24th international agricultural exhibition, AgroViet 2024, will take place in Hanoi from November 20 - 23, according to the Centre for Agricultural Trade Promotion (Agritrade) under the Ministry of Agriculture and Rural Development.

Announcing AgroViet 2024 at a press conference in Hanoi on November 12, the centre said that following the results of previous fairs, AgroViet 2024 is organised to promote and expand international economic cooperation and exchange, promote brands, products, trade transactions, and agricultural specialties of localities across the country.

The organiser has received registrations from nearly 100 domestic and foreign units with 250 booths, including 99 booths of international enterprises.

Deputy Director of Agritrade Hoang Van Du said that AgroViet 2024 will facilitate Vietnamese enterprises to trade with many enterprises from countries, including China, India, Mongolia, Australia, Russia, and the Republic of Korea.

At the fair, Vietnamese enterprises and visitors can observe agricultural machinery and equipment, particularly Chinese systems that work with agricultural production in Vietnam. Meanwhile, many Chinese enterprises are looking for partners as they want to import Vietnamese agricultural products.

Within the framework of the fair, there will be a Vietnam - Mongolia Agricultural Products Promotion Forum; a Vietnam - China Business Trade Conference and a launching ceremony of Vietnamese agricultural products booths on Chinese e-commerce platforms and social networks./.

VinFast becomes top-selling car brand in Vietnamese market

VinFast Automaker, a subsidiary of Vingroup, announced on November 12 that it delivered over 11,000 electric vehicles (EVs) in October, raising the total deliveries to more than 51,000 units, securing its position as the top-selling car brand in Vietnam in the first ten months of 2024.

The VF 3 and VF 5 were among the best-selling models, with nearly 5,000 and over 2,600 units sold, respectively.

Other models, including the VF 6, VF 7, VF 8, VF 9, and VF e34, also posted impressive sales numbers, reflecting consumers' growing preference for electric vehicles and the green mobility trend.

VinFast’s achievement as Vietnam's best-selling car brand marks a significant turning point for the domestic automotive industry. Within just five years of entering the market, VinFast has not only established a strong presence but also officially surpassed foreign car brands to claim the largest market share. Remarkably, it also became the first EV brand to outpace traditional petrol-powered brands, leading the market just two years after its transition to a pure-electric company./.

Vietnamese automobile market continues to see growth in sales

After a strong surge in sales in September when the Vietnamese automobile market saw a 45% increase, an increase was still recorded in October, though at a more modest rate.

This continued expansion was largely attributed to the Government's decision to cut registration fees by 50% for domestically manufactured and assembled vehicles, a policy set to last from September to November 2024. This initiative has significantly boosted consumer purchasing power.

According to the Vietnam Automobile Manufacturers Association (VAMA), sales of vehicles by VAMA members reached 38,761 units in October 2024, marking a 6% increase from the previous month and a 53% rise compared to October 2023.

While the growth in October was more subdued compared to the explosive rise in September, it reflects the sustained attractiveness of Vietnam's market, particularly when compared to the same period last year. Of the total sales in October, 30,245 units were passenger cars, a 4% increase from September. Passenger vehicles remain the dominant segment, popular for their flexibility and suitability for personal use.

Commercial vehicle sales saw a notable 13% increase compared to the previous month, with 8,290 units sold. This segment is primarily driven by the demand for goods transport and passenger services, and expanding as the economy recovers. On the contrary, sales of specialty vehicles fell by 8%, with only 226 units sold.

One key trend in the October 2024 market was the difference in sales between domestically assembled vehicles and imported ones. VAMA's report indicated that sales of locally assembled vehicles reached 21,113 units, an 8% increase from the previous month, while imports totalled 17,648 units, a 3% rise. This suggests that Vietnamese consumers are continuing to favour locally produced cars, attracted by lower prices and government incentives, particularly the registration fee reduction for domestic vehicles.

In terms of individual brands, Toyota remained the market leader, selling 8,736 units in October. Other manufacturers, including Ford (5,522 units), Mitsubishi (4,410 units), Kia (4,271 units), Mazda (3,933 units), and Honda (3,606 units), also performed strongly, reflecting intense competition in the market. Each brand is striving to maintain and expand its market share by improving models, enhancing services, and offering attractive promotions.

In addition to VAMA members, other players such as Audi, Jaguar Land Rover, Mercedes-Benz, Nissan, Subaru, Volkswagen, and Volvo were also present in the market, though they did not disclose their sales.

VinFast, the Vietnamese electric vehicle manufacturer, reported a significant milestone in October, delivering over 11,000 electric cars. This brought the total number of vehicles sold in 2024 to more than 51,000, making it the best-selling car brand in Vietnam for the first 10 months of the year.

With the combined sales of VAMA, TC Group, and VinFast, the total number of cars sold in Vietnam in October 2024 reached 57,400 units. For the first 10 months of 2024, the total sales across these groups amounted to 363,890 units, signalling positive growth despite ongoing challenges.

Experts agree that October marked a small but significant step forward for the Vietnamese car market, driven by the reduction in registration fees and various promotional efforts by companies. While the growth rate was slower than in September, the continued stability is seen as a positive sign for the industry.

Overall, the Vietnamese automobile market remains highly attractive, and with strong competition and flexible strategies from car manufacturers, the market is expected to experience more exciting developments in the coming months./.

Vietnam aims to increase market share in Africa

Although Vietnam’s rice exports have traditionally focused on Asian markets, experts have advised businesses to pay more attention to Africa which has emerged as a key potential market.

According to the Asia-Africa Market Department under the Ministry of Industry and Trade (MoIT), Africa is an important export market for Vietnam's rice. The export of this grain to Africa rose to 692.6 million USD in 2021 from 411 million USD in 2017. Rice typically accounts for 15-20% of Vietnam’s total exports to Africa.

However, in 2022, Vietnam’s rice exports to Africa declined by 10.5% compared to 2021, reaching only 620 million USD, equivalent to 16% of Vietnam’s total exports to this continent. This drop was largely due to increased global food stockpiling amid economic and political instability, which pushed up rice prices and led some African countries to reduce the import of the food. Furthermore, the COVID-19 pandemic caused significant disruptions in global rice supply chains, with exporting countries cutting back on exports to secure domestic food supplies.

In 2023, however, Vietnam’s rice exports to Africa bounced back, reaching 1.3 million tonnes valued at 788 million USD, up 6.3% in volume and 27.7% in value compared to 2022.

Over the years, several African countries have ramped up domestic rice production in an effort to increase reserves and meet local demand. However, this remains challenging due to financial and technical issues in rice cultivation. As the population grows, along with the influx of Asian tourists and workers, demand for rice in Africa continues to rise.

For these reasons, Africa remains a market with significant potential for Vietnam’s rice exports in the coming years.

Countries like Ivory Coast, Ghana, Senegal, and Cameroon are major importers of Vietnamese rice. Ivory Coast, in particular, has continued to be a key market for Vietnamese rice in the region. Currently, Vietnamese rice is mostly exported to Africa through major international trading companies such as Louis Dreyfus, Olam, Phoenix, Platinum, Wilmar, WSGF Group, and Stallion Group.

Historically, Vietnam’s export of the grain to Africa were primarily white rice, with 15% and 25% broken rice being the main types. However, in recent years, Vietnam’s market share in Africa has faced stiff competition from Thailand, India, and Pakistan, who benefit from large stocks of cheap white rice, which is more affordable for many consumers in Africa.

Alongside the demand for cheaper rice, there has been an increasing interest in fragrant rice in Africa, driven by urbanisation and rising incomes in cities. Nguyen Chi Mai, Vietnam’s Trade Counsellor in Nigeria, who also covers several other African nations, including Ghana, noted that urban consumers in Ghana prefer imported rice, especially fragrant rice, to local varieties. As a result, 80% of the country’s rice imports are consumed in urban areas. Restaurants in Ghana often use fragrant rice to attract customers. The country imports fragrant rice mainly from Vietnam, the US, and Canada.

Given this trend, African importers have increasingly sought to purchase Vietnamese fragrant rice due to its consistent quality and competitive pricing. Do Ha Nam, Vice President of the Vietnam Food Association, noted that exports of fragrant rice to Africa have grown steadily in recent years.

The Asia-Africa Market Department has identified fragrant rice as one of the fastest-growing varieties in terms of export growth to Africa. As such, increasing exports of fragrant rice presents a key strategy for boosting both the value and market share of Vietnamese rice on the continent.

To further promote rice exports to Africa, the Ministry of Industry and Trade suggests that Vietnamese government agencies continue to refine export mechanisms and management of rice trade to accommodate market developments. It is also important to create favourable conditions for businesses to engage in rice exports and deepen their involvement in the global rice value chain.

Leveraging existing bilateral cooperation frameworks, such as joint committees and trade subcommittees between Vietnam and African countries, can help foster stronger rice trade relations, experts held. There is also potential to negotiate or extend memoranda of understanding on rice trade with countries in need of imports for stockpiling or those that have not fully liberalised their rice markets such as Uganda. Monitoring and supporting businesses involved in existing MOUs with Egypt, Comoros, Madagascar, Guinea, and Sierra Leone is also crucial, they added.

Experts also highlighted the need for improving transparency in the rice market, designing support policies in payments and logistics, promoting Vietnamese rice through trade programmes in Africa, and improving post-harvest technologies and workforce training, thus building long-term trust with African consumers and ensuring sustainable growth in this important market./.

Ample opportunity for Vietnam - Peru trade to increase to meet potential

State President Luong Cuong's coming visit to Peru is set to catalyse cooperation in promising areas, as two-way trade continues its impressive trajectory, doubling to 600 million USD in 2022 from the 2014 level.

Citing data from the General Department of Vietnam Customs, the Ministry of Industry and Trade (MoIT)’s European - American Market Department reported that Vietnam - Peru trade reached 486 million USD in 2023, with Vietnamese exports dominating at 439 million USD.

During January - September, the figure hit 389.69 million USD, with Vietnamese exports to Peru totalling 336.99 million USD. This growth has positioned Peru as Vietnam’s sixth largest trade partner in Latin America.

Vietnam's key exports – phones, electronics, footwear, cement, plastic materials, apparel, and seafood – are making inroads into the Peruvian market, while Peru reciprocates with essential exports such as fishmeal, antimony ore, and various mineral products.

Despite global economic headwinds, both nations, members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), are primed to boost trade turnover, capitalising on the deal's preferential terms across various sectors.

The Vietnam - Peru Inter-Governmental Committee, held biennially on a rotating basis and co-chaired by a Vietnamese deputy minister of industry and trade and a Peruvian deputy minister of foreign affairs, serves as an effective mechanism to propel bilateral and multilateral economic ties.

Peru is recognised as a dynamic economy with a relatively open foreign economic policy. It is a member of most major international and regional institutions, including the World Trade Organisation (WTO), the Asia-Pacific Economic Cooperation (APEC), and the Pacific Alliance (PA). With 22 free trade agreements (FTAs) in place with 58 countries, Peru stands out as one of the Latin American nations with the largest numbers of FTAs.

The majority of Peru’s export - import companies are small and medium-sized, creating a fertile ground for Vietnamese goods to penetrate and thrive in the market. Furthermore, Peru could serve as a gateway for Vietnamese products to access neighbouring markets such as Ecuador, Colombia, Bolivia and Brazil.

The ongoing construction of the Chancay megaport in the north of Lima capital is a game-changer, strategically positioned to optimise shipping times and costs for Vietnamese businesses. Estimates suggested that shipping times could be reduced by 30% to 50%, while logistics costs may drop by up to 20%, significantly enhancing Vietnam's competitiveness in this Latin American market.

However, challenges such as geographical distance, language barriers and fierce competition remain. To navigate these hurdles, Vietnamese exporters are encouraged to actively attend Peruvian trade fairs, promote Vietnamese culture through local media, and establish robust logistics networks.

At a recent working session with Secretary General of the Peruvian Ministry of Foreign Affairs Eric Anderson, Deputy Minister of Industry and Trade Nguyen Hoang Long proposed that Peru facilitate delegation exchange, sign cooperation agreements in mutually beneficial fields, and maximise the opportunities presented by the CPTPP.

Long also highlighted the potential for collaboration in developing mineral extraction, organic agricultural products, food processing, and tourism. He urged a focus on breakthrough industries aligned with current trends, particularly in green technology, the digital economy and e-commerce.

The MoIT remains committed to supporting companies by facilitating their connections with Peruvian State agencies through diplomatic and trade channels, ensuring that any arising issues are promptly addressed, he added./.

63% of Vietnamese consumers expected to increase spending on essential goods in 2025

PwC's 2024 Asia-Pacific Consumer Insights Survey reveals that 63% of Vietnamese consumers intend to increase spending on essential goods over the next year, followed by 52% on clothing and 48% on healthcare products.

The survey, which gathered responses from over 7,000 consumers in the region, including 515 from Vietnam, also indicated that inflation is the top concern for a majority (63%) of Vietnamese consumers for the coming year.

Consumers are willing to stay loyal only to brands they genuinely trust, making it essential for businesses to foster trust across all aspects and build lasting relationships with customers.

Vietnam leads the region in online shopping, with 67% of purchases made via mobile phones and 44% through personal computers, although in-store shopping remains high at 63%. Vietnamese consumers are actively embracing social media platforms to discover new brands and read reviews before purchasing, with 71% having made purchases through these platforms—significantly higher than the regional average of 56%.

However, concerns about safety and reliability have somewhat dampened consumer trust in social media for shopping, following some negative experiences.

Sustainability is becoming a priority in Vietnamese consumer habits, with 94% reporting experiencing the negative effects of climate change in their daily lives (compared to 88% regionally). Notably, 74% of Vietnamese consumers expressed willingness to pay up to 20% more for products made from recycled or sustainable materials and 85% would consider purchasing a hybrid or electric vehicle within the next three years.

The survey also revealed that Vietnamese consumers are relatively open to using artificial intelligence (AI) in low-risk activities but still prefer human interaction for complex transactions. Specifically, 69% said AI could assist in gathering product information, followed by providing product recommendations (63%) and supporting customer service (59%).

These global trends in technology and sustainability are offering practical opportunities for businesses to connect more deeply with consumers and drive sustainable growth./.

NA deputies and fertiliser producers call for VAT tax benefits

National Assembly deputies have been debating whether a 5% VAT tax on fertilisers should be reintroduced.

Opponents of the tax advised the Government to exercise caution, as it may increase fertiliser prices, which would adversely affect millions of farmers across the country.

Supporters, meanwhile, raised concerns over how the tax exemption has been a burden for local fertiliser manufacturers, hurting their competitiveness and creating an unfair playground.

The 5% VAT tax was removed in 2014, which according to local fertiliser manufacturers, has created a situation in which locally made fertilisers suffer unfairly in competition with imports as they could not deduct VAT from their input. It has led to increased production costs. They said their products should also be taxed as it would allow them to benefit from VAT deductions and refunds, which can bring prices down in the domestic market.

Deputy Trinh Xuan An from Dong Nai province said reintroducing the tax will benefit the public, manufacturers and the State.

"For instance, when a company purchases raw materials worth 80 VND it costs an additional 8 VND in VAT input. If their fertiliser is sold at 100 VND without input VAT deductions, they would need to price it at 108 VND. With a 5% tax, they can deduct 8 VND, and the price should be 105 VND. Accounting rules dictate that a 5% tax doesn’t necessarily mean prices rise by 5%."

Deputy Dang Bich Ngoc from Hoa Binh province said fertiliser remains so far the largest expense in crop production, amounting to 64% to 68% of the agricultural sector’s total production value.

Fertiliser not being taxed means manufacturers cannot claim VAT tax refunds, even for goods imported as fixed assets required in fertiliser production. This severely handicapped local manufacturers' profit and investment planning, as well as their ability to upgrade to more sustainable technologies.

Meanwhile, imported fertiliser, previously taxed at 5% and now tax-exempt can still reclaim full VAT input, allowing for lower prices.

The fertiliser market which has been struggling with oversupply issues during 2015-2020 had seen significant price drops with local manufacturers reporting negative growth and financial difficulties.

Ngoc said allowing local manufacturers to benefit from VAT input refunds will benefit everyone, farmers, manufacturers and the Government while at the same time, reducing Vietnam's reliance on imports.

She said Vietnam could learn from China, the world's largest producer and consumer, which imposes an 11% VAT on fertilisers, while offering tax incentives for more environmentally friendly and R&D advanced manufacturers. Similarly, Russia, the world's largest fertiliser exporter, also imposes VAT for the same reasons.

"The current situation favours imports while harming domestic manufacturers. Left alone unchecked, it may reduce the size of Vietnam's fertiliser industry making the country even more reliant on imports and undermining long-term strategy such as agricultural sustainability," she said.

Deputy Nguyen Van Chi from Nghe An province said Vietnam, as an agricultural country, should not allow itself to become overly reliant on foreign fertiliser.

Several Governmental agencies including the Ministry of Industry and Trade and the State Audit have petitioned the Government to reintroduce the tax to balance the playing field for domestic manufacturers./.

Vietnamese, Chinese firms ink deals to bolster trade

Vietnamese and Chinese firms signed seven memoranda of understanding covering trade-economy, logistics, energy, agriculture, and media during a recent dialogue in Chongqing city of China.

The event was attended by Vietnamese Prime Minister Pham Minh Chinh, coinciding with his working trip to the eighth Greater Mekong Sub-region (GMS) Summit.

Vietnam has solidified its position as Chongqing's largest trade partner in ASEAN, with ties growing exponentially since 2015. That year marked the establishment of the first official Vietnamese trade promotion office in Chongqing by the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade, a pioneering move that has yielded remarkable results.

In 2019, trade between Chongqing and Vietnam surged to an impressive 32.84 billion CNY (4.5 billion USD), reflecting a staggering 158.9% annual increase. Today, a steady influx of Vietnamese products ranging from coffee, fruits to seafood graces the markets of Chongqing. In return, automotive parts, motorcycles, and electronic products from Chongqing are increasingly in demand in Vietnam, creating a dynamic exchange that benefits both nations.

According to the Chongqing Customs, trade between the city and ASEAN hit around 11.2 billion USD from January-September, while that with Vietnam alone standing at 3.8 billion USD.

Chongqing's investment footprint in Vietnam is also expanding, with over 30 companies now operating in the production of electrical equipment, agricultural machinery, and motorcycle parts. The country has also become a critical export destination for automobiles and motorcycles produced in Chongqing.

Moreover, Vietnam remains the top Southeast Asian country for the highest volume of goods transported via the new land-sea corridor linking Chongqing.

As of September, the rail-sea intermodal trains from Chongqing to Vietnam transported a total of 53,000 containers valued at 11.4 billion CNY. From January-September, intermodal cargo transport reached 10,000 TEU, valued at 2.78 billion CNY, marking a 54% and 160% increase in volume and value, respectively, compared to the same period last year./.

Over 202,000 enterprises established, resume operations in 10 months

As many as 202,300 enterprises were established and resumed operations in Vietnam in the first 10 months of 2024, a year-on-year increase of 9.1%, according to the General Statistics Office (GSO).

In October alone, the country recorded nearly 14,200 new enterprises with total registered capital of 153.5 trillion VND (6.07 billion USD). The figures represented a 9.8% decline in the number of firms, and an increase of 9.5% in capital. The average registered capital of a newly-established enterprise in the month reached 10.8 billion VND, up 30.8% over the previous month and up 21.4% over the same period last year.

Meanwhile, as many as nearly 8,700 enterprises resumed their operations in October, up 33.5% from the previous month and up 53.7% year-on-year.

During the January-October period, the country saw nearly 136,100 new enterprises set up with total registered capital of nearly 1,312 trillion VND, an increase of 1.9% in the number of enterprises and a rise of 4.1% in registered capital. The average registered capital of a newly-established enterprise in the 10 months of 2024 reached 9.6 billion VND, an increase of 2.2% compared to the same period in 2023.

In the reviewed period, more than 66,200 enterprises resumed their operations, an increase of 27.7% over the same period in 2023.

On the opposite side, over 92,100 enterprises temporarily halted operations in the last 10 months, an increase of 13.6% year-on-year. More than 63,700 companies ceased operations awaiting dissolution procedures, up 25.6%, and nearly 17,400 businesses completed dissolution procedures, a year-on-year rise of 20.5%.

As a result, a total of 173,200 enterprises withdrew from the market in the first 10 months of 2024, up 18.4% year-on-year./.

Vietnam’s aquatic exports on track to top 10 billion USD

Vietnam’s aquatic exports are expected to exceed the annual target of 10 billion USD on the back of strong demand from major markets, according to Deputy Minister of Agriculture and Rural Development Phung Duc Tien.

Statistics from the Ministry of Agriculture and Rural Development showed October exports reached 1.1 billion USD, bringing the total revenue for the first 10 months of 2024 to 8.33 billion USD, a year-on-year increase of 12%.

The US, China, and Japan were the three largest purchasers, accounting for 18.5%, 16.8%, and 15.4% of the market share, respectively. Among the 15 major export markets, Russia had the sharpest growth of 94.8% while Thailand experienced a decline of 10.1%.

In October alone, aquatic shipment to China saw impressive growth of 37%. Meanwhile, robust performance was also recorded in the US (up 31%), Japan (22%), the EU (27%), and the Republic of Korea (13%).

The Vietnam Association of Seafood Exporters and Producers (VASEP) said the US has consistently been Vietnam's largest importer, with annual revenues ranging from 1.5 billion to 2.1 billion USD over the past five years, despite the American market’s anti-dumping and anti-subsidy measures.

A recent preliminary countervailing duty determination by the US Department of Commerce set a rate of 2.84% for Vietnamese shrimp, lower than the 4.26% for India and the 7.55% for Ecuador, giving Vietnamese exporters a competitive advantage.

As of the end of October, Vietnam had shipped 1.5 billion USD worth of aquatic products to the US, rising 15% against the same time last year.

Notably, VASEP predicted that China could surpass the US to become Vietnam’s top aquatic product buyer if its import growth maintains at 20% in the remainder of the year.

In the meantime, the EU market shows promising signs of recovery, with exports to the bloc up 11% by October 2024. Vietnamese products have enjoyed significant advantages under the EU-Vietnam Free Trade Agreement as most raw shrimp products receive immediate duty-free status, while competitors like Thailand and India lack similar trade agreements.

VASEP communications director Le Hang said that shrimp and tra fish will continue to be the key exports thanks to growing demand and price recovery in the US, China, Japan, and Australia. She suggested local firms to take flexible measures to capitalise on market opportunities, given a shortage of domestic raw materials.

The ministry said total aquatic output neared 7.9 million tonnes in January - October, up 2.5% year-on-year. Aquaculture production exceeded 4.6 million tonnes, increasing by 3.8%, including 1.44 million tonnes of tra fish and over 1.1 million tonnes of shrimp.

Director General of the ministr’s Directorate of Fisheries Tran Dinh Luan said Vietnamese firms should pay due attention to improving product quality and reducing costs so as to gain competitive edge in the international market, elaborating such large export markets as the US, the EU, and Japan have stringent requirements on product quality, origin traceability, and food safety./.

Vietnamese e-commerce platform revenues fall in third quarter

Vietnamese e-commerce platforms’ revenues fell significantly in the third quarter of this year, while foreign platforms saw considerable expansion, according to a recent report by e-commerce data company Metric.

TiktokShop and Shopee revenues increased by 110.6% and 11.3% in the quarter, respectively.

In comparison, Lazada revenues dropped by 70.5%, Tiki by 32.1% and Sendo by 65.3%.

Meanwhile, statistics from the Vietnam E-commerce and Digital Economy Agency under the Ministry of Industry and Trade showed that Shopee was the top favourite e-commerce platform for Vietnamese consumers in 2023 (81% of Internet users), followed by Lazada (42%), Tiktok (34%) and Sendo (8%).

This demonstrated that the shares of e-commmerce platforms are changing rapidly.

According to Mordor Intelligence, Vietnam is one of 10 countries with the highest e-commerce growth rates in the world, ranking first in Southeast Asia with more than 10% growth annually.

Dao Cam Thuy from the Vietnam National University, Hanoi said that the Vietnamese market is full of potential for e-commerce platforms. The market will witness increasingly fiercer competition while foreign platforms penetrate and expand in Vietnam to capitalise on a market with a population of 100 million.

E-commerce revenue is expected to reach more than 27 billion USD this year, up from 20.5 billion USD in 2023. Revenues are predicted to hit 35 billion USD in the next few years./.

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