The US Department of the Treasury has officially announced in its latest report that Vietnam does not manipulate currency.

Under the department’s semiannual report on macroeconomic and foreign exchange policies of major trading partners of the US released recently, Vietnam was named in the monitoring list, together with mainland China, Japan, the Republic of Korea, Taiwan (China), Singapore and Germany, as Vietnam met the criteria for having a significant bilateral trade surplus with the US and a material current account surplus.

The department applies three criteria to assess potential currency manipulation by major trading partners, including bilateral trade surplus with the US, current account surplus and prolonged one-sided intervention in foreign exchange markets.

According to the department, Vietnam’s bilateral trade surplus with the US has expanded dramatically over the past six years, primarily driven by growth in goods trade, led by electronics and machinery. The bilateral goods and services surplus was 111.7 billion USD over the four quarters through June 2024. Over the same period, the bilateral goods trade surplus was 113.3 billion USD, 7 billion USD higher than the level from the previous four quarters.

Vietnam continues to have the third-largest goods surplus with the US. The country has modest bilateral services trade with the US and has long run a small bilateral services trade deficit. In the four quarters through June 2024, that services deficit was 1.6 billion USD.

Meanwhile, Vietnam’s current account surplus stood at 5% of GDP over the four quarters through June 2024. The current account continues to record large quarterly surpluses, after registering deficits in 2021 and 2022 when COVID-related production constraints weighed on export earnings and elevated commodity prices drove import prices higher.

The goods trade balance increased 8.6% over the period on recovering overseas demand for factory goods. The current account surplus has also been supported by increased remittances even as net services income remains below pre-pandemic levels and corporate profit repatriation has slightly increased.

According to the report, economic growth in Vietnam over the four quarters through end-June 2024 rose to 7.1%, up from 4.3% over the four quarters ending in June 2023. Activity accelerated on increased demand for Vietnamese exports among key trading partners, which boosted industrial production and investment. Over the reporting period, goods exports amounted to 380 billion USD, up 8% from the previous four quarters. The IMF forecasts 6.1% annual growth on an annual basis in 2024.

Following a rebound in economic activity over the second half of 2023, the Vietnamese government has signalled a desire to consolidate fiscal policy. The planned budget deficit is roughly one percentage point lower this year, at 3.6% of GDP, down from the 4.4% of GDP target in 2023.

Notably, in recent years, actual budget execution has fallen short of spending plans. Despite the turn toward deficit spending in 2023 after recording a small surplus in 2022, public debt as a share of GDP remained around 34% as nominal growth outpaced rising nominal debt./.

VN must do more in collecting business owner information

Việt Nam must do more to manage information of owners and other beneficiaries of businesses, officials at the Department of Business Registration under the Ministry of Planning and Investment (MPI) said. 

Đỗ Nhật Hoàng, the department's director, said Việt Nam has signed a commitment with the Financial Action Task Force, which includes a list of specific actions it needs to adopt.

In February this year, the Prime Minister's Office issued a national action plan and instructed the MPI to: "Establish a mechanism to provide the authorities with fast access to complete, accurate, and up-to-date information on owners of legal entities, legal arrangements and to apply appropriate, effective, proportionate measures against violations”.

The department said the objective is to identify the individuals controlling and benefiting from businesses, which is a key step in improving the country's business environment, the country's financial transparency while helping attract investment.

Legal requirements for collecting information on business owners and beneficiaries are also part of the World Bank's new Business Environment Index, as well as criteria used by other major international organisations, including the UN and the IMF.

A representative from the anti-money laundering department under the central bank said the FATF had expressed concerns over a lack of progress in implementing the commitments.

Failure to carry out signed commitments could result in Việt Nam being moved from FATF's grey list to the blacklist, hurting the country's appeal to global investors. In such a scenario, the private sector would bear the greatest impact as the country's financial system and other aspects of the economy would face difficulties. 

The ministry cited numerous difficulties as obstacles in the implementation process. A ministry representative said the government must wait for the National Assembly's approval before revising the current laws. In addition, the ministry requires additional time to categorise and codify the information requirements which business owners must follow. 

The seminar invited representatives from the State Bank of Vietnam, the Ministry of Public Security, the Ministry of Finance, the Ministry of Justice, the Ministry of Home Affairs, the Supreme People's Procuracy, the Vietnam Bar Federation and several commercial banks.

The FATF is an intergovernmental organisation that sets standards to combat money laundering, terrorist financing, the proliferation of weapons of mass destruction, and other related threats to the integrity of the global financial system. More than 200 countries and territories, including Việt Nam, said they are committed to implementing FATF's recommendations.

Market opens the week with slight decline as foreign investors net sell over VNĐ1.4 trillion

The stock market began the week with a slight decline in the VN-Index, accompanied by reduced liquidity, as foreign investors extended their net selling streak by withdrawing over VNĐ1.4 trillion.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index closed at 1,217.12 points, down by 1.45 points or 0.12 per cent.

Market breadth was slightly positive, with 161 stocks advancing, 149 declining, and 58 remaining unchanged. Liquidity dropped to VNĐ15.5 trillion (US$610.1 million), a decrease of 16.6 per cent compared to the previous session.

The VN30-Index, which tracks the 30 largest stocks by market capitalisation on HoSE, also slipped by 0.99 points, or 0.08 per cent, to 1,270.23 points. In the VN30 basket, 14 stocks fell, 12 advanced, and four remained unchanged.

The market decline was led by banking blue chips, with the Bank for Foreign Trade of Vietnam (VCB) falling by 0.76 per cent, taking more than 0.9 points from the VN-Index. Mobile World Investment Corporation (MWG) also dropped by 1.67 per cent, while the Bank for Investment and Development of Vietnam (BID) decreased by 0.56 per cent.

However, gains in select large-cap stocks partially offset the market's downturn. Vinhomes JSC (VHM) rose by 1.37 per cent, adding nearly 0.6 points to the VN-Index.

Analysts from Việt Dragon Securities remarked that the market continues to face resistance around the 1,210-point level, coinciding with the 20-day moving average (MA20) and showing signs of cooling down. Liquidity declined from the previous session, indicating temporary relief from selling pressure, although cautious sentiment remains as the market nears resistance levels.

"The current signs of cooling may exert downward pressure in the next session. However, the market is expected to find support around the 1,220-point level and may recover, as it was bolstered by the previous session's breakthrough above the 200-day moving average (MA200). The tug-of-war between supply and demand in the 1,210–1,230-point range will influence the market's next move. If sustained support emerges, the VN-Index has a chance to revisit the 1,230-point level," they noted.

Investors are advised to closely monitor the dynamics of fund flow in the coming sessions. “Currently, investors may consider making small, exploratory buys in stocks demonstrating strong inflows from support levels. However, it is also prudent to lock in short-term gains for stocks that have rapidly approached resistance zones,” analysts suggested.

On the Hà Nội Stock Exchange (HNX), the HNX-Index edged up by 0.12 per cent to close at 221.79 points. The northern bourse recorded a trading volume exceeding 57.8 million shares, valued at over VNĐ956 billion.

Foreign investors maintained their net selling trend, with net outflows amounting to over VNĐ1.4 trillion on HoSE. 

Hòa Bình honey awaits reactions from UK

Twenty boxes, containing 250 jars of pure honey, left Hòa Bình Province for the United Kingdom on October 12.

It was the first time that the province exported locally produced honey, which came from bees raised by the Green Life Co-operative in Thượng Tiến Commune, Kim Bôi District – a relatively modest business with 11 members.

After this first shipment, farmers, producers, and agricultural authorities in Hòa Bình are now waiting for feedback from the market so they can adjust production scale and volume.

"Although the quantity of the exported honey is not large, this is a significant step forward that allows Hòa Bình’s OCOP (One Commune One Product) honey to enter one of the most demanding markets in the world," said Green Life Co-operative director Đinh Công Thuần.

To ensure that the honey's quality meets the requirements of international markets such as the UK, the cooperative has had a clear production strategy in place since 2017.

Standards were set for different stages of the production process including technical care, harvesting methods, and packaging. The process follows VietGAP standards for beekeeping and ISO22000 standards for processing.

"After harvesting, the water content of the honey was reduced to about 17.2 per cent to make sure it has the right viscosity and meets the quality requirements from UK importers," said Thuần.

R.Y.B Joint Stock Company delivered the honey to the UK. To prepare for the shipment, the company’s director, Nguyễn Thị Thanh Hương, said market research began in 2022.

"We researched many regions that produce honey, but the pristine forest areas in Thượng Tiến help create the exceptional taste and purity of the honey here, so we chose it as the supplier," she said.

“While the UK is a demanding market, by ensuring technical standards, proper documentation and certifications, and with the unique natural flavor of the honey, we will likely get its approval.”

From a local perspective, Đinh Tất Thắng, head of Kim Bôi District’s Department of Agriculture and Rural Development, said that as Thường Tiến honey was considered to have great potential, technical support, equipment, and training were provided to Green Life Cooperative’s members in the production process.

"Thường Tiến honey has sold very well in the domestic market, and now it can also be exported to the UK,” he said.

“We will advise the district to expand this production model so that if the UK market accepts it, we will have the capacity to supply."

Nguyễn Hồng Yến, head of Hòa Bình Province’s Plant Protection and Cultivation Division, has been instrumental in connecting many of the province’s agricultural products with international markets.

She emphasised that different markets have different requirements.

"The standards of international markets might not necessarily be higher, but different from domestic ones,” he said. “So it is very important to closely follow the target market's requirements so we can guide cooperatives and farmers to produce in accordance with their specifications.”

For example, the UK requires a certificate of bee health, which is not needed in the domestic market. “To obtain this certificate, we had to provide a traceable health history, records, and tests of the bees,” Yến said.

It’s a long journey ahead for Hòa Bình if it wants to have more agricultural products exported, according to Yến.

Once the UK market shows approval for Thường Tiến honey, it will be a good starting point to expand production. However, the province should take it one step at a time, even slow and small at first, to build a solid foundation for agricultural exports.

"Our agricultural products will be given specific local brands, depending on the production area and the product itself,” Yến said. “Our viewpoint is that special products should be produced in limited quantities and supplied in a short time, but they should have strong branding and help build traditional markets.”

To improve the quality of agricultural exports from Hòa Bình in the future, Yến stressed the importance of increasing the production capacity of co-operatives, and enhancing post-harvest work such as preservation, processing and storage.

"Co-operative members and leaders should receive regular training and consultations with experts to improve their production and management capabilities, as well as their organisational operations," he said.

He also suggested the Government invest more in machinery and production lines for co-operatives, which will increase the value of agricultural products and reduce the seasonal pressures faced by farmers, especially with perishable goods.

"This approach would not only boost efficiency in agricultural exports but also ensure the sustainability of local agricultural production in our province," he said.

Over 720 billion VND to build new cargo terminal at Hai Phong’s Cat Bi airport

To enhance cargo handling capacity at the Cat Bi International Airport in the northern port city of Hai Phong, the Airports Corporation of Vietnam (ACV) has commenced the construction of a new cargo terminal, slated for completion and operation by January 2026.

According to ACV Deputy General Director Tran Anh Vu, the project worth 724 billion VND (28.5 million USD) is designed to handle 100,000 tonnes of cargo annually. The terminal will have a comprehensive system of technical infrastructure facilities, with an expandable capacity of up to 250,000 tonnes per year.

The airport is a key gateway in Vietnam, playing a vital role in the socio-economic development of the city, the northern coastal region, and the Red River Delta. Over recent years, Hai Phong has seen rapid growth and a significant number of investors. Its increasing demand for the transport of high-tech goods by air highlights the urgent need for enhanced aviation logistics services.

Vu stressed that the comprehensive modernisation of Cat Bi's infrastructure is a priority in the ACV’s 2021 – 2025 investment strategy.

Vice Chairman of Hai Phong’s People’s Committee Nguyen Duc Tho noted that upgrading and expanding the airport aligns with the Prime Minister’s decisions on air transport development planning, while supporting the implementation of the Politburo’s Resolution No. 45-NQ/TW on the development of Hai Phong by 2030 with a vision to 2045./.

Gold bars and gold rings see simultaneous rises on November 18

The prices of both domestic gold rings and gold bars simultaneously rebounded on the morning of November 18.

At around 9:00 a.m., the Saigon Gold and Jewelry Company (SJC) lifted the SJC-branded gold prices to VND81 million per tael for buying, up VND1 million, and VND84 million per tael for selling, up VND500 million compared to the previous session last week.

Prices of gold bars at Doji Group were quoted at VND81 million and VND84 million per tael for buying and selling, representing rises of VND1 million, and VND500,000, respectively.

Similarly, gold rings also saw a surge.

 Accordingly, the SJC traded gold rings were at VND80.5 million per tael for buying and VND83 million for selling, both up VND700,000 over the last weekend.

Meanwhile, the prices of gold rings at Doji Group were unchanged with VND81.4 million per tael for buying and VND82.7 million per tael for selling.

Globally, this morning saw gold prices witness a slight decrease of 0.1% to US$2,565.49 per ounce.

World gold prices are predicted to move sideways and gradually recover. Experts have stated that only when global gold prices exceed the US$2,650 per ounce mark will domestic gold bar prices return to the VND86 million per tael level.

Vietnam’s rubber exports to Malaysia grow by triple digits

Vietnam exported 7,260 tonnes of rubber to Malaysia, valued at 11.5 million USD in October, surging by 861% in volume and 1,240% in value year-on-year, according to the General Department of Customs.

This also represents a 22.2% increase in volume and a 47.8% rise in value compared to September, marking the highest monthly figures for the year.

From January to October, Malaysia spent 35.2 million USD to import 24,800 tonnes of rubber, reflecting a 349% increase in volume and a 405% rise in value year-on-year.

This elevated Malaysia to the second-largest market by volume and the third-largest by value for Vietnam's rubber exports.

In the first ten months of 2024, Vietnam exported 1.54 million tonnes of rubber, generating over 2.52 billion USD in revenue.

This represents a 4.9% decline in volume but a 16.4% increase in value compared to the same period in 2023. The average export price stood at 1,638 USD per tonne, up by 22.4% year-on-year.

China remained Vietnam's largest rubber export market, accounting for 78.7% of the country’s total rubber exports. Exports to China reached 1.06 million tonnes, valued at 1.7 billion USD, a 16.8% decrease in volume but a 1.5% rise in value year-on-year.

The first ten months witnessed notable shifts in Vietnam's rubber export markets. While exports to China, the Republic of Korea, the Netherlands and Argentina declined year-on-year, substantial growth was recorded in other markets such as India, the US, Germany and notably Malaysia.

Rubber remains a significant export sector for Vietnam, which ranks fifth globally in plantation area and third in natural rubber production.

According to the Vietnam Rubber Association (VRA), the country has around 930,000 hectares of rubber plantations, producing about 1.3 million tonnes of latex annually.

Despite the decline in export volume this year, Vietnam's rubber export value has increased thanks to consistently high export prices.

With these results, rubber export revenue in 2024 is forecast to reach 3-3.5 billion USD, an increase of 200-400 million USD compared to last year./.

HCM City makes annual assessment of government agencies competitiveness

HCM City will evaluate the competitive capacity of 28 government departments and agencies for the 2024 Department and District Competitiveness Index (DDCI), up from 25 last year, according to a conference held on Monday.

The three additional units to be assessed this year are the city People's Committee Office, Department of Home Affairs and Market Management Department.

Speaking at the conference to announce implementation of this year’s survey, Hồ Thị Quyên, deputy director of the Investment and Trade Promotion Centre of HCM City, said that, by conducting the survey, the city aims to enhance administrative procedures, improve the governance of departments and districts and create a transparent and conducive investment and business environment across sectors.

The assessment would remain largely unchanged from last year but would include some adjustments to better align with current functions, responsibilities, and realities, she said.

In the survey, 28 districts and agencies will be evaluated based on nine indicators, 38 common criteria, and 63 specific criteria tailored to individual units.

The indicators include transparency, access to information and digital transformation; unofficial costs; time spent on administrative procedures; fair competition; support for business; legal institutions; and dynamism, creativity and effectiveness of departments, divisions and sectors.

The city’s 21 districts and Thủ Đức City will be assessed based on 10 indicators, including land access and land use stability.

The Green Index and the Health and Living Environment Indicator are also assessed to foster sustainable development.

By integrating environmental and health factors into the evaluation framework, the city aims to protect the environment, improve quality of life and build a green, eco-friendly economy. This demonstrates its commitment to balancing economic growth with environmental and community responsibilities, the ITPC said.

The assessment will be conducted through both online surveys and direct interviews with businesses, cooperatives and strategic investors and a valid response rate of at least 30 per cent for both departments and districts will be ensured.

The survey results will be thoroughly analysed to offer in-depth evaluations and recommendations for both high- and low-ranking groups.

Quyên, of the ITPC, said that preparatory work for the survey and assessment is well underway, with results expected to be announced by the end of 2024.

To ensure transparency and objectivity, the city has invited experts from business associations, research institutes, and universities to join the evaluation council, she said.

The results would serve as a foundation for the city to propose solutions to address problems and deploy solutions to better serve the public and businesses, fostering a better investment environment, she added.

At the conference, the business community expressed their hope that the assessment of the competitiveness of departments, agencies and localities in the city would lead to improvements in information transparency, effectiveness of business support, and a reduction in time and informal costs.

They also emphasised the importance of protecting the confidentiality of corporate and individual information of survey participants to ensure an objective and genuine evaluation.

This would help avoid superficial, perfunctory assessments and overly lenient feedback that would not accurately reflect reality, they added.

With a clear roadmap and implementation plans, the city People's Committee expects the 2024 DDCI to make a positive contribution to the reform and modernisation of public administration, according to the survey evaluation council.

This is the third annual survey.

Last year’s exercise found that most city departments and localities showed improvements in their scores, reflecting a strong sense of responsibility and reform efforts.

Some moved up sharply from mid- and lower-tier positions in 2022 to achieve high rankings.

But there were also drops in rankings, including by agencies that had held high ranks in 2022, though this decline did not indicate a lack of capability, reforms or improvement efforts. Instead, it indicated that their efforts were insufficient to outperform others or meet the ever-increasing expectations of the business community, according to the survey. 

Long An eyes cooperation opportunities with Belgium in renewable energy

A delegation of the southern province of Long An led by Nguyen Van Duoc, Secretary of the Provincial Party Committee and Chairman of the provincial People's Council, has visited John Cockerill Group, one of the world’s leading providers of efficient and sustainable energy solutions, as part of their recent working trip to Belgium.

Founded in 1817, John Cockerill is a global group based in Belgium, renowned for its advanced technological solutions in the fields of renewable energy, including solar energy, wind power, and green hydrogen.

At the meeting, representatives of the group introduced their standout technologies and ongoing projects they are implementing in various countries.

Pascal Brancart, Director of Business Development at John Cockerill, stated that Vietnam, with a 3,200 km coastline, holds significant potential for the development of renewable energy.

The group has implemented several cooperation agreements in Vietnam, including a memorandum of understanding (MoU) with the National Innovation Centre (NIC) in areas such as green hydrogen, biomass fuel, and high-efficiency cooling technologies, and an MoU with the Mekong Delta province of Ben Tre regarding the production of activated carbon from coconut husks. Brancart said that John Cockerill has strong interest in expanding its operations in Vietnam. In the renewable energy sector, the group aims to invest in the production of green hydrogen and biomass fuel. In the steel industry, the company is looking to apply advanced technologies to improve production processes and enhance efficiency, thus meeting Vietnam’s sustainable economic development needs.

Introducing Long An’s advantages, Duoc said that the province borders Ho Chi Minh City, and Tay Ninh, Dong Thap, and Tien Giang provinces, and serves as a gateway connecting Ho Chi Minh City to the Mekong Delta. With this unique position, Long An has the potential to become a hub for international cooperation, particularly in renewable energy.

Companies from Belgium provide a solid foundation for economic activities in Long An, with their strengths in high-tech agriculture, renewable energy, and sustainable development, they align well with the province’s development goals.

As it has a significant demand for clean energy development to meet economic growth needs, the province hopes that the Belgian company will become a key strategic partner. This is important for the development of biomass power projects using locally available materials, as well as in the research and development of hydrogen energy and technological cooperation in the LNG plant project in Can Giuoc district, Duoc said.

With these directions, the provincial leader proposed John Cockerill explore the opportunity to invest in the first electrolysis plant in Vietnam, to be located in Long An. The province is committed to providing maximum support and is ready to collaborate with the group, relevant central agencies, and financial partners to make this project a reality, he added.

On this occasion, the Long An delegation met with representatives of the Vietnamese Business Association in Belgium (VBAB) and the Belgian-Vietnamese Alliance (BVA)./.

Post-Typhoon Yagi trade networking event starts in Hải Dương

The Hải Dương Province Association of Handicrafts and Jewellery, in collaboration with the Nam Vũ Clean Agricultural Cooperative, hosted a trade connectivity event in Liên Mạc commune, Thanh Hà District.

The event aims to support local businesses, cooperatives and producers in Hải Dương Province in finding new partners and expanding their product markets after Typhoon Yagi.

This marked the first time the provincial handicrafts and jewellery association has organised such a trade promotion event in Thanh Hà District.

The event drew participation from representatives of the Ministry of Industry and Trade, the Vietnam Union of Science and Technology Associations, and nearly 600 businesses and cooperatives from across the northern region, including from Hà Nội, Hải Phòng, Thái Bình, Hưng Yên and Bắc Ninh.

The event featured over 120 booths showcasing a wide range of products such as dried lychee, dried bananas, herbal shampoos, agarwood and honey. Sixty of these booths displayed local Hải Dương products, with 20 per cent of the items certified as 3-star OCOP (One Commune One Product) quality.

At the event, buyers and exporters shared their expertise in sourcing and exporting agricultural products, as well as strategies for promoting trade in domestic and international markets.

The Vice Chairman of the provincial handicrafts and jewellery association, Ngô Bá Đức, emphasised that the event provided an essential platform for businesses to exchange experiences, gain market insights, and expand their product reach nationwide and globally.

Hải Dương Province plans to strengthen trade promotion activities, especially for high-value agricultural exports such as lychee, 'Nếp Cái Hoa Vàng' sticky rice, carrots and shallots.

The province has also focused on leveraging digital platforms like YouTube and TikTok, along with social media to boost the visibility of local products. These efforts are part of a broader strategy to enhance trade connections, improve the local economy, and raise residents’ living standards.

Vietnam emerges as forerunner in global nearshoring trend

Vietnam has emerged as a leading destination for companies relocating their production facilities, aiming to protect supply chains from potential disruptions, according to an article published by Brazil’s riotimesonline.com on November 17.

The newspaper cited recent data from S&P Global Market Intelligence as saying that the landscape of global manufacturing is changing rapidly. Vietnam has emerged as a frontrunner in global nearshoring trend, outpacing even Mexico.

Real-world examples underscore Vietnam’s attractiveness. Samsung has invested heavily in Vietnamese factories for electronics production. Nike and Adidas have shifted substantial production from China to Vietnam. Intel has also established a significant presence with a chip plant in Ho Chi Minh City.

Over 35% of Vietnamese firms reported increased demand from multinational manufacturers in the past year. This contrasts sharply with Mexico, where only 15% of companies experienced similar growth. The survey, conducted in May 2024, highlights Vietnam’s growing appeal to international businesses.

The article pointed out several factors behind Vietnam’s success in this area, saying that the country’s geographical location provides easy access to major Asian markets. Labour costs remain competitive, attracting companies looking to optimise their expenses. The Vietnamese Government has also enforced policies that support foreign investment.

Vietnam’s workforce also plays a crucial role in this success story. The country ranks 9th among 60 nations in ManpowerGroup’s Total Workforce Index, indicating a reliable and skilled labour pool. Such a workforce is essential for companies considering relocation, it said.

According to the article, experts estimate a 10-12 year period for investment relocation. This timeframe adds urgency to the competition between emerging manufacturing hubs. Countries must act swiftly to attract and retain these investments./.

Enterprises urged to tap potential to expand exports to EU via official channels

The Vietnam Trade Promotion Agency under the Ministry of Industry and Trade (MoIT) on November 18 organised a seminar on promote trade in the European market, focusing on potential for expanding exports to the European market via official channels.

Speaking at the event, Dinh Sy Minh Lang, an official from the MoIT’s European-American Market Department, said that data from Vietnam Customs indicates that since the EU-Vietnam Free Trade Agreement (EVFTA) came into effect in August 2020, the European Union (EU) has emerged as a leading trade partner for Vietnam.

In the past four years, Vietnam’s export to the EU is estimated to exceed 200 billion USD, achieving an annual growth of 12–15%.

In July 2024 alone, Vietnam recorded a trade surplus of over 20.2 billion USD with the EU, a 19.4% increase compared to the same period in 2023. Its export turnover grew by approximately 16.8%, while imports rose by around 10%. The EU is now among Vietnam’s six largest import-export markets.

A survey by the European Chamber of Commerce in Vietnam (EuroCham) shows that the EVFTA has significantly boosted Vietnam's exports to the EU, from 35 billion EUR (36.9 billion USD ) in 2019 to over 48 billion EUR in 2023. Sectors such as electronics, textiles, footwear, agriculture, and seafood have particularly benefitted from the phased tariff reductions under this agreement.

Lang emphasised that formal export methods are more complex due to stricter documentation and higher taxes and fees, but ensure rigorous quality control. This approach enhances the reputation of Vietnamese enterprises and products in global markets.

Participation in official channels also allows businesses to access markets, particularly demanding markets and benefit from state support policies, thereby contributing to sustainable economic growth, he added.

To succeed in exports via official channels, businesses need to identify target markets, research standards and regulations, and assess their own capabilities to develop effective strategies, he suggested.

Moreover, they should adopt suitable standards for their products, build and maintain quality management systems, enhance employee skills, upgrade technology, and focus on producing high-quality goods that satisfy stringent export market demands.

Meanwhile, former Trade Counselor a the Vietnamese Embassy in the UK Nguyen Canh Cuong highlighted the opportunities provided by the UK-Vietnam Free Trade Agreement (UKVFTA), which eliminates over 99% of tariff lines within six years. Key beneficiaries include seafood, textiles, footwear, furniture, and processed agricultural products.

He suggested using digital marketing and artificial intelligence (AI) for entry into the UK market, as well as participating in international trade fairs and collaborating with trade support organisations.

He also advised businesses to align products with British consumer preferences by using recyclable and biodegradable materials, providing clear information on product composition and origin, and choosing neutral colours for packaging.

Nguyen Thanh Hung, a senior advisor to the Government, stressed the importance of minimising risks in cross-border transactions. Accordingly, businesses should verify information, proactively validate broker-supplied information through official channels such as industry associations or Vietnamese diplomatic missions in the buyer’s country.
Companies should engage directly with partners to avoid over-reliance on intermediaries, he said, adding in any transactions, they must draft contracts with clear and comprehensive terms to tightly bind all parties involved.

By adopting these strategies, Vietnamese enterprises can enhance their competitive edge in the European market while navigating the complexities of formal export processes, he noted./.

Deputy PM meets delegation from France’s largest employer federation

Deputy Prime Minister Tran Hong Ha received a delegation of the Mouvement des Entreprises de France (MEDEF) or the Movement of French Enterprises - the largest employer federation in France on November 18 in Hanoi.

The delegation is led by Francois Corbin, Vice President of MEDEF International in charge of coordination in the ASEAN region, and the French Minister for Europe and Foreign Affairs' special representative for economic relations in the ASEAN region.

Appreciating the visit, Ha emphasised that this is the first working session between a leader of the Government of Vietnam and a French delegation to implement the outcomes of the visit to France by Party General Secretary and then State President To Lam in October 2024.

The Deputy PM said he hopes that after the visit, French enterprises will identify key investment cooperation fields and projects that suit the needs and strengths of Vietnam.

“Enterprises of the two countries need to have a mechanism to meet and exchange to promote cooperation plans in each stage in the spirit of the comprehensive strategic partnership," he noted.

French Ambassador to Vietnam Olivier Brochet and Francois Corbin said that French enterprises are looking for investment opportunities in Vietnam in the fields of renewable energy, nuclear power, high-speed railway, urban railway, exploitation and processing of strategic minerals, education, health care, and food.

They not only pay attention to production and business projects but also shares Vietnam's determination in building and perfecting institutions, researching and transferring technology, and training human resources.

On this occasion, the Vietnamese Deputy PM assigned the Ministries of Industry and Trade, Transport, Agriculture and Rural Development, and Construction to work directly with French enterprises, and connect them with Vietnamese companies and localities in specific projects./.

Exchange rate fluctuations bring huge profits to many banks

Net profits from the foreign exchange trading segment of many banks have gained positive results thanks to a strong USD/VNĐ exchange rate fluctuations this year.

According to banks’ financial statements, the total net profit from the foreign exchange trading segment of 29 banks in the first three quarters of 2024 reached more than 19.62 trillion VND, up 7% over the same period last year.

State-owned BIDV continued to maintain its leading position in terms of value in the business segment, with a net profit of more than 3.92 trillion VND, up 25% over the same period last year.

In the group of private banks, MB topped the list with a net profit of nearly 1.52 trillion VND, representing an impressive growth of 65%.

Techcombank also made its mark with a net profit of nearly 1.02 trillion VND in the first three quarters of this year, while the bank reported a loss of 117 billion VND in the same period last year.

Similar to Techcombank, VPBank also recorded a sharp increase in net profit from the foreign exchange trading segment, with more than 594 billion VND. This figure was not so large compared to the whole banking industry, but it was a significant growth rate compared to VPBank’s loss of more than 600 billion VND in the same period last year.

Other banks also made large profits from this business segment, such as MSB with 846 billion VND, Sacombank with 831 billion VND, ACB with 827 billion VND, HDBank with 609 billion VND and SeABank with 563 billion VND.

According to the banks’ financial reports, foreign exchange trading mainly relies on two main sources of revenue - spot foreign exchange trading and currency derivatives. This business segment depends heavily on fluctuations in the US dollar and other foreign currency exchange rates in the domestic market.

October 2024 witnessed a sharp increase in the USD/VNĐ exchange rate, with a 4.2% depreciation of the Vietnamese dong against the dollar compared to the beginning of this year. Notably, the dong in October 2024 alone devalued by up to 1.2% compared to September 2024. According to Mirae Asset, most of this depreciation originated from strong fluctuations in the dollar index (DXY), which increased rapidly due to better-than-expected US economic data.

This pressure has significantly affected the dong and created a burden on the Vietnamese economy, especially when Vietnam’s foreign exchange reserves have decreased after the State Bank of Vietnam (SBV) had to sell a significant amount of the US dollar to stabilise the forex market. Vietnam’s foreign exchange reserves are currently only at 2.4 months of imports - lower than the 3-month of import level recommended by the International Monetary Fund.

Analysts from Mirae Asset Securities Company forecast that the USD/VNĐ exchange rate may continue to remain high or increase further if global factors, especially from the US, do not cool down. The US Federal Reserve (Fed)'s policy of maintaining high interest rates to control inflation may continue to boost the dollar, putting great pressure on other currencies including the dong. Therefore, the central bank's lowering of interest rates will face many challenges, as this may increase pressure on the exchange rate.

To minimise the foreign exchange pressure, Mirae Asset suggests that the SBV seek additional measures to stabilise the liquidity of the market, without reducing the country’s foreign exchange reserves. The solutions include strengthening cooperation with major trading partners to diversify foreign currency sources, considering adjusting interest rate policies to reduce the impact of exchange rates on inflation and considering policies to support local exporters to increase foreign currency-denomivated revenue collected or reduce unnecessary costs of imports to ease pressure on domestic enterprises./.

Vietnam attends PLMA's 2024 Private Label Trade Show in US

Twenty-one Vietnamese enterprises are showcasing their products at the Private Label Manufacturers' Association (PLMA) 2024 Private Label Trade Show, which is taking place from November 17-19 at the Rosemont Exhibition Centre in Chicago, the US.

This prestigious event, featuring over 1,500 exhibitors from more than 50 countries and thousands of leading retailers and importers, offered an ideal platform for Vietnamese brands to capture the attention of international partners.

Vietnam's exhibition area, with 21 pavilions spanning 200 square metres, highlights a variety of key products, including processed food, traditional spices, high-quality agricultural products, and specialty beverages. Outstanding items such as coffee, natural spices, dried fruits, and herbal drinks have left a strong impression on US partners, praised for their exceptional quality, health-conscious appeal, and environmentally friendly attributes - qualities highly valued by today’s consumers.

In his remarks at the opening ceremony, Hoang Minh Chien, Deputy Director of the Vietnam Trade Promotion Agency (Vietrade) under the Ministry of Industry and Trade, highlighted the food and beverage sector's achievements, saying in the first 10 months of 2024, exports to the US reached nearly 1.5 billion USD, an 18.3% increase compared to the same period last year. The PLMA Show offered not only a platform for businesses to promote their products but also a strategic opportunity to forge sustainable partnerships in this promising market, he added.

The US market is undergoing a strong shift towards sustainable and eco-friendly products, with growing preference for natural, organic, and environmentally-friendly goods. This trend presents a significant opportunity for Vietnamese products such as coffee, natural spices, dried fruits, and herbal beverages.

To meet the stringent quality and safety standards of the US market, Vietnamese enterprises have adopted international production practices, including Hazard Analysis and Critical Control Points (HACCP), International Organisation for Standardisation (ISO), and compliance with Food and Drug Administration (FDA) regulations. These measures have improved the competitiveness of Vietnamese products and increased international confidence in the country's food and beverage sector. Businesses have also invested in eco-friendly packaging and advanced processing technologies to preserve the natural integrity of their products, catering to the growing consumer demand for sustainability.

The participation in the PLMA Show 2024 not only helped Vietnamese enterprises connect with US partners but also established a foundation for the long-term development of the food and beverage industry. Moreover, it helped reinforce Vietnam's reputation as a reliable supplier of high-quality, sustainable products in the global market./.

Workshop seeks ways to attract Japan’s green investment to Vietnam

A workshop was held in Tokyo on November 18 to introduce to Japanese businesses investment trends in Vietnam and its pioneering industrial parks with carbon neutral initiatives.

The event was jointly organised by the ASEAN Japan Centre (AJC), the Japan External Trade Organisation (JETRO), Vietnam’s Viglacera Group, and Mizuho Bank with the aim of further attracting Japanese green investment to Vietnam.

Speaking at the opening ceremony, Minister Nguyen Duc Minh at the Vietnamese Embassy in Japan said that green investment is of strategic significance not only for Vietnam but also for the whole region, in the context of the global trends towards sustainable development and greenhouse gas emission reduction.

He emphasised Vietnam’s policy on attracting selective foreign investment, targeting high-quality investment with high efficiency, technology and environmental protection.

One of the important strategies for Vietnam to achieve sustainable development goals is to closely connect the industries that Vietnam prioritises calling for investment and the development of green industrial parks. This combination not only attracts more foreign investment but also helps Vietnam build a sustainable industrial production ecosystem, meeting the requirements of economic efficiency for businesses and protecting the environment.

He also mentioned the key role of banks in providing financial support and connecting businesses to promote foreign direct investment (FDI) flows into Vietnam.

Hiroshi Imano, Executive Vice President of THK Corporation - one of Japan's leading mechanical components companies, said that his corporation is expanding its investment into Vietnam.

Imano said that in order to supply its products to customers around the world, THK has stepped up its production system in four regions, namely Japan, America, Europe and Asia. In that trend, THK has decided to expand to Tien Son Industrial Park in the northern province of Bac Ninh and is planning to expand further in Vietnam.

One of the reasons for THK to invest in Vietnam is about environmental protection because THK products are very environmentally friendly, requiring very little energy. In addition, in Vietnam, the manufacturing industry is growing strongly, so the demand for THK products will continue to increase, Imano said.

Noriyuki Urabe, Executive Director, Head of Global Strategy Advisory at Mizuho Bank, said that the bank is supporting its clients expand their operations overseas. In that trend, consultations related to Vietnam are at a very high level and this trend has continued in recent years./.

Vietnam attends trade policy review on Nigeria

Minister-Counsellor Le Dinh Ba, Deputy Permanent Representative of Vietnam to the UN in Geneva, attended the 6th Trade Policy Review (TPR) session of Nigeria at the headquarters of the World Trade Organisation (WTO) in Geneva, Switzerland.

The Nigerian delegation was led by Ambassador Nura Abba Rimi, Permanent Secretary of the Federal Ministry of Industry, Trade, and Investment.

Addressing the event, Ba praised Nigeria’s role as one of the largest economies in Africa, with nominal GDP exceeding 360 billion USD in 2023. He highlighted Nigeria's development in sectors such as finance, telecommunications, and information technology.

Vietnam also commended Nigeria's active participation and constructive role at the WTO, including its ratification of the WTO Agreement on Fisheries Subsidies, the adoption of the Protocol amending the TRIPS Agreement, its involvement in Joint Statement Initiatives (JSIs) on e-commerce, investment facilitation for development, MSMEs, and domestic services trade regulation, as well as its leadership of the African Group in agricultural negotiations at the WTO.

In recent years, trade in goods and services has increasingly contributed to Nigeria’s GDP, with manufacturing's share in the GDP rising to 15.7% in 2023. Nigeria has also been pursuing a growth and development plan, introducing new trade and investment policies aimed at diversifying its economy.

Nigeria is also striving to enhance regional integration as a key member of the Economic Community of West African States (ECOWAS) and the African Continental Free Trade Area (AfCFTA).

During the TPR session, several WTO members expressed interest in Nigeria’s experience in establishing the National Action Committee to accelerate the ratification of the AfCFTA. Some suggested Nigeria join the Multi-Party Interim Appeal Arbitration Arrangement (MPIA) and the Government Procurement Agreement, as well as include domestic service commitments in its WTO schedule of commitments.

Besides, some others noted that Nigeria’s transparency and predictability in the business and investment environment can benefit from further reforms, and called for Nigeria to address its notification obligations, which have resulted in a high rate of physical inspections of containers. They urged Nigeria to reconsider its customs procedures to promote more timely and cost-effective practices.

Regarding tariffs, Nigeria has bound only 19.7% of its tariff lines, with the average bound tariff rate standing at 120%. The average applied tariff rate was 12.8% in 2023. Participants encouraged Nigeria to enhance its predictability and governance, and to consider reducing its ceiling tariff rates./.

Seminar seeks to boost Vietnam – US energy, industry, trade cooperation

A seminar discussing solutions to energy, industry, and trade between Vietnam and the US was held in Washington on November 15 by the Ministry of Industry and Trade (MoIT) in collaboration with the Vietnamese Embassy in the US, attracting crowds of overseas Vietnamese entrepreneurs, intellectuals, and scientists working in the areas.

In his opening speech, Deputy Minister of Industry and Trade Nguyen Hoang Long highlighted the role and significant contributions by the Vietnamese community in the US to activities to further develop the bilateral relations between the two countries.

He urged participants to share their proposals and opinions, especially those on how to create breakthroughs and identify areas where breakthroughs can be made in energy, trade, and investment cooperation between Vietnam and the US.

Delegates, who have contributed to the development of trade, renewable energy, industrial building materials, solar and wind energy, and infrastructure construction, pointed out challenges and obstacles related to unstable legal frameworks and certain issues related to human resources and opportunity costs that Vietnam needs to address swiftly to attract US investors.

Norman Van Toai, a businessman involved in numerous energy collaboration projects between Vietnam and the US for several decades, said that the energy sector is a key advantage for Vietnam in the context that US investors are shifting production from China to some countries in Asia and Southeast Asia, including Vietnam.

Delegates expressed their hope that the Vietnamese Government will provide policy advice on energy and support for the sector’s supply chain, especially in solar energy, in preparation for this industry’s boom in the US in the coming years.

The MoIT will collaborate with relevant agencies to regularly organise working programmes with the Vietnamese community abroad, aiming to update information, policies, opportunities, and potential for investment and trade cooperation in Vietnam, the official said.

He added that consultation sessions with Vietnamese entrepreneurs, researchers, and scientists abroad on policies in energy, industry, and trade will be also arranged, thus providing recommendations for policy-making and building efficient trade and industry development orientations; and promoting opportunities for cooperation between Vietnamese organisations and businesses with those of the Vietnamese diaspora in the USS, as well as US partners.

Long said similar initiatives will be implemented to strengthen the connection between ministries and sector in the homeland and the Vietnamese community in the US, towards realising trade and investment cooperation aspects in the comprehensive strategic partnership between the two countries./.

Russia, Vietnam seek to bolster import and export turnover

Import-export turnover between Vietnam and Russia during the first three quarters of this year reached US$3.52 billion, up 41% over the same period from last year, while many local business delegations have gone to Russia to explore the large market.

According to Duong Hoang Minh, commercial counselor of the Vietnamese Embassy in Russia, many Vietnamese enterprises have also promoted their brands abroad.

In a recent interview granted to VOV, Minh said that this year has seen joint trade co-operation enjoy very positive developments. Import-export turnover between both nations over the past three quarters of the year hit US$3.52 billion, up 41% on-year.

This is widely viewed as being a very impressive figure, in which Vietnamese exports to Russia fetched US$1.78 billion, up 51% over the first nine months of last year. In contrast, Russian exports to the country raked in US$1.74 billion, up 32% on-year.

Throughout the reviewed period, several Vietnamese export items with high turnover included textiles and garments with US$616 million, up 120%; coffee with US$236 million, up 29%; and seafood with US$165 million, up 100%, thereby contributing to further boosting economic and trade linkages between the two countries.

Among them, key Vietnamese products included agriculture, forestry and fishery, and garments textiles, accounting for over 70% of Vietnamese export turnover to this market.

Referring to the factors that have contributed to the growth of mutual trade turnover since the beginning of the year, the Vietnamese Commercial Counselor said that Vietnamese firms have paid greater attention to trade promotion activities in the Russian market by launching an exhibition on high-quality Vietnamese goods.

This has served to create a very positive effect as this year, many Vietnamese business delegations have gone to Russia to learn about the highly lucrative market.

Most notably, in September, a delegation of 50 Vietnamese enterprises attended the International Food and Beverage Fair in Russia, while another business delegation also conducted trade activities with Russian enterprises.

Moving forward, a business delegation of the Vietnam Consumers Association and the Hanoi Business Association is set to organize a trade promotion delegation in Russia in November. These factors have contributed to significantly promoting trade between the two countries whilst increasing their import and export turnover in recent times, Minh went on to say.

As a result, the Russian market has certain attractions for Vietnamese enterprises and in recent times many local firms have tried to build their own brands. Bringing a brand abroad is affirming the Vietnamese national brand, he said, adding that businesses must register trademark protection in foreign markets.

Minh also underlined the need for local businesses to closely co-ordinate alongside embassies and trade offices of Vietnam based abroad to jointly protect Vietnamese products which have brands in foreign markets.

Opportunities for Vietnam to lure more capital flows following Trump’s election

Emerging markets, including Vietnam, look set to take advantage of opportunities as investors begin to move capital to the United States following President-elect Donald Trump’s election win on November 5.      

These remarks were made Dr. Ho Quoc Tuan, a senior lecturer at Bristol University in the UK, during a recent media interview regarding the impact of the US election results on the European economy and emerging markets, including Vietnam.

According to Dr. Tuan, President-elect Trump’s win saw the US financial market increase while emerging markets all decreased, including markets that were considered quite optimistic in the eyes of investors such as India and Indonesia. This indicates that capital flows have begun to withdraw from some emerging markets and move back to the US.

However, Dr. Tuan believes that the US capital flow withdrawing from some markets can be replaced by capital flow from China, a country which is keen to diversify its supply chain and to capitalise on other markets to avoid the impact of direct tariffs on Chinese goods, which could be up to 60% as President-elect Trump has declared.

Dr. Tuan believes that this represents an advantage for Vietnam as it is a notable destination for businesses looking to move out of China.

Emerging markets, including the nation, also have the opportunity to attract international capital flows for green projects, citing China's commitment to a US$25 billion fund to support emerging markets in transitioning to a green economy, Dr. Tuan added.

Not only China, but Europe, Japan, and the Republic of Korea (RoK) are also looking to invest in this field.

This would provide emerging markets with alternative sources of capital in case the US withdraws from some environmental agreements, as President-elect Trump believes that multilateral agreements, including some on the environment, are damaging the US economy and its businesses.

However, Dr. Tuan said that Vietnam needs to prepare to compete with other emerging markets in attracting international investors, noting that competition itself will be the catalyst to promote Vietnam’s reforms.

VNA/VNN/VNS/VOV