Public investment is currently still an important growth driver, which needs to be accelerated so as to help the economy achieve a 6.5% growth this year, according to insiders.

In mid-March, the Prime Minister issued an official dispatch requesting ministries, sectors, and localities to urgently have specific allocations of the 2024 state budget plan in accordance with regulations.

Data compiled by the Ministry of Planning and Investment showed that as of late March, around 32 trillion VND (1.28 billion USD) out of a total of nearly 657.3 trillion VND planned for 2024 had not been allocated in detail yet. Of this, the central budget is 9.5 trillion VND of 21 out of the 44 ministries and ministry-level agencies and 24 out of the 63 provinces and cities.

Last year, extra efforts were made to disburse public investment, but the disbursement still did not reach the set target of 95%. This year, the 95% threshold continues to be set. To achieve this goal, right from the beginning of this year, the Government and the Prime Minister urged "spending money" and the Government leader has issued official dispatches ordering the acceleration of the disbursement. Recently, a meeting to remove difficulties and speed up the disbursement of official development assistance (ODA) and concessional loans was also held.

Thanks to these efforts, in the first quarter of this year, 89.8 trillion VND worth of public investment was disbursed, equal to 13.67% of the plan assigned by the Prime Minister, higher than the 10.35% recorded in the same period last year.

Minister of Planning and Investment Nguyen Chi Dung urged ministries, sectors, and localities to promote the allocation and disbursement of public investment, taking this as a key political task to promote economic growth.

More efforts should be made to promptly handle difficulties and problems in the supply of sand and stone to speed up the progress of key and important national projects, Dung stressed./.

International textile, garment expo attracts over 1,000 exhibitors

The annual Vietnam Saigon Textile & Garment Industry – Fabric & Garment Accessories Expo opened in HCM City on April 10, enabling local and foreign producers to explore each other’s requirements and possibilities for tie-ups.

Saigontex - Saigonfabric 2024, held on an area of over 30,000sq.m in one outdoor and two indoor halls, has attracted over 1,000 exhibitors from over 20 countries and territories, including Belgium, China, Germany, Hong Kong, India, Italy, and Japan besides Việt Nam.
On display include textile and garment machinery and parts, fabrics and non-woven fabrics, dyes and chemicals, and accessories.

There will be seminars on eco-friendly conversion, sustainable solutions and innovative textiles, digital transformation, yarn to fashion; product presentation programmes; business matching sessions; and fashion parades.

Speaking at the opening ceremony, Vũ Đức Giang, chairman of the Việt Nam Textile and Apparel Association (Vitas), said the country’s textile and garment exports were worth US$10 billion in the first quarter, a year-on-year increase of nearly 10 per cent, and are expected to top $44 billion this year.

The expo has gathered big brand names from major textile and garment manufacturing and supplying countries, offering a very good opportunity for Việt Nam’s textile industry to integrate deeper into the global supply chain, he said.

Cao Hữu Hiếu, general director of the Việt Nam National Textile and Garment Group (Vinatex), said the event is one of the largest trade events in the textile, garment, fabric and raw material industries in Việt Nam.

“Saigontex – Saigonfabric 2024 will be a good opportunity for Vietnamese textile and garment enterprises to find reputable partners to learn and select new materials and accessories that are suitable for their development orientation, and keep up with global textile and garment trends, especially meeting requirements related to transparency of origin and greening of raw materials,” he added.

Organised by the Vietnam Chamber of Commerce and Industry, Vitas, Vinatex, the Association of Garments, Textiles, Embroidery and Knitting of HCM City, CP Exhibition LTD (Hong Kong), and CP Vietnam Exhibition Organising Co., Ltd, the expo being held at the Saigon Exhibition and Convention Centre will go on until April 13. 

Toll taxes of BOT bridge, expressway in Quảng Ninh to increase

Increase of toll taxes for Bạch Đằng Bridge, the Hạ Long-Vân Đồn Highway and upgraded Hạ Long-Mông Dương road section on the National Highway 18 will start to take effect next month.

Accordingly, the People's Committee of Quảng Ninh Province has just agreed with the proposal of increasing toll by a maximum of 18 per cent compared to the current price applicable to each vehicle group that will be using the projects.

The three projects are the transport infrastructure investment projects invested under the form of build, operation and transfer (BOT).

Currently, BOT toll stations of the above projects have all posted public notices. As regulations, the price adjustment period is 30 days after the public announcement and public posting at the toll stations of the adjusted level according to regulations.

The committee said that the reason and basis for toll tax adjustment is that the Bạch Đằng Bridge, the leading roads and the intersections was completed and put into toll collection since October 15, 2018 and the Hạ Long-Vân Đồn Expressway and the Hạ Long-Mông Dương road section were put into toll from February 1, 2019 and February 14, 2018, respectively.

Under the BOT contract signed between the provincial People's Committee and investors, toll tax will be adjusted to increase every 3 years, with each increase not exceeding 18 per cent.

According to the roadmap of toll increase, the projects had their toll taxes increased in 2021 and 2022.

The provincial Department of Transport said that 2024 should have been the second price adjustment for the Bạch Đằng Bridge and the Hạ Long-Vân Đồn Expressway.

However, in order to accompany businesses to overcome difficulties in the context of the COVID-19 pandemic, and cut maritime, aviation and road logistics costs as per the Prime Minister's direction, toll stations nationwide and the toll stations of the two above-mentioned projects in particularly in Quảng Ninh have halted the increase.

Statistics from the Quảng Department of Transport showed that, due to the pandemic, the actual revenue of BOT projects has been much lower than the expected revenue in the financial plan of the project contracts.

Specifically, in the period 2018-23, actual revenue of the Bạch Đằng Bridge just reached 22.63-38.96 per cent compared to the financial plan while the Hạ Long-Vân Đồn Expressway and the Hạ Long-Mông Dương road’s was 31.03-61.3 per cent.

According to investor representative of the Hạ Long-Mông Dương road, new toll taxes will increase from VNĐ35,000 to 41,000 (US$1.4-1.64) for vehicles with less than 12 seats, ones with a load of less than 2 tonnes and public transport buses; from VNĐ50,000 to 59,000 ($2-2.36) for vehicles from 12 to 30 seats, vehicles with loading capacity from 2 tonnes to less than 4 tonnes; and from VNĐ75,000 to 87,000 ($2.99-3.47) for vehicles with 31 seats or more, and ones with loading capacity from 4 tonnes to less than 10 tonnes.

But road tolls for vehicles with a load capacity of 10 tonnes to less than 18 tons, 18 tonnes or more, 20-foot and 40-foot container trucks remain the same rates as the current ones of VNĐ90,000 ($3.6) and VNĐ140,000 ($5.6).

For the Hạ Long-Vân Đồn Expressway, the toll rate of vehicles with 31 seats or more, vehicles with a load of 4 tonnes to less than 10 tonnes will increase from VNĐ3,600 up to VNĐ4,200 per kilometre; and of vehicles with loading capacity from 10 tonnes to less than 18 tonnes, and 20-foot container trucks increase from VNĐ6,000 to 7,000 per km while vehicles with a load capacity of 18 tons or more, 40-foot container trucks will pay VNĐ9,500 per km as compared VNĐ8,100 of previous price. 

Lào Cai hosts conference promoting trade in northern midland, mountainous region

A conference on promoting trade in the northern midland and mountainous region will take place on Friday in Lào Cai Province, the Việt Nam Trade Promotion Agency has announced. 

The upcoming conference will focus on discussing the region's key economic issues including the potential and advantages of forming export production chains and import-export development strategies, the agency said. 

It added that the event will also discuss export opportunities for regional products, especially farming produce from Yên Bái Province, the development of border gate economic zones and logistics, and the promotion of border trade activities through Lào Cai and Lạng Sơn provinces.

A series of trade connection sessions among regional businesses and foreign importers will be held on the sidelines of the conference. It will also comprise booths showcasing typical products of localities in the region. 

The event is expected to attract about 300 delegates, including representatives from ministries, sectors, localities, international organisations, industry associations, domestic and foreign businesses. 

The northern midland and mountainous region has a particularly important strategic position in terms of economy, culture, society and the environment. It has untapped potential in agriculture, forestry, minerals, hydroelectricity, tourism and border trade.

It consists of 14 provinces, namely Lạng Sơn, Cao Bằng, Hà Giang, Lào Cai, Lai Châu, Điện Biên, Sơn La, Bắc Giang, Thái Nguyên, Bắc Kạn, Tuyên Quang, Phú Thọ, Yên Bái and Hòa Bình, and the western districts of Thanh Hóa and Nghệ An provinces.

The State has issued and effectively implemented many policies to promote potential and advantages and create motivation for the development of the region. In addition, the Government and the Prime Minister have regularly directed and met with the localities to discuss tasks and solutions to remove difficulties and foster their socio-economic development.

However, the potential and advantages of the region have not been properly utilised or brought into full play. 

To facilitate the region's development, Prime Minister Phạm Minh Chính has approved the establishment of a Coordinating Council for the Northern Midland and Mountainous Region in the 2021-25 period.

It is responsible for putting forward mechanisms, policies, strategies, planning schemes, plans and programmes on regional connectivity, and green, sustainable and comprehensive development of the region. 

Ministry issues digital transformation plan for energy sector

The Ministry of Industry and Trade has issued a digital transformation plan for the energy sector, aiming for 90% of administrative procedures to be handled online via the public services portal.

In addition, all documents related to the energy sector will be digitalised.

The focus will also be placed on developing a synchronised information system for the energy industry, including gas and oil, petroleum, coal, electricity, renewable energy and new energies.

Vietnam has set a target to increase electricity access index to be among the top three in ASEAN by 2025, from the current position of fourth in ASEAN and 27th out of 190 countries and territories.

Vietnam Electricity (EVN) is enhancing the effort to install electricity e-meters to achieve the rate of 95% by 2025 and 100% by 2030 which will allow customers to check their electricity use via mobile app.

The ministry said that it will focus on improving the mechanisms and policies to create favourable conditions for the digital economy development in the energy sector, especially for energy producers who aim at smart production, green growth, sustainable growth and circular economy.

Policies would also be raised to increase the application of information and technology as well as mechanisms for the use, management and operation of information systems for digital transformation./.

Vietnam's livestock product exports up in Q1

Vietnam saw a year-on-year increase of 4.8% in livestock product export turnover to 113 million USD in the first quarter, according the Ministry of Agriculture and Rural Development (MARD).

Duong Tat Thang, Director of the Department of Livestock Production, said the export value reached 38.2 million USD from meat and edible meat offal and 36.8 million USD from milk and milk products.

However, import turnover of livestock products in the first quarter was estimated at about 702 million USD, down 6.7% compared to the same period in 2023, including 336 million USD from meat and edible meat offal, and 236 million USD from milk and milk products.

Vietnam also imported 518 pigs; 1,657 cows and 583,783 chickens.

In the first three months, the domestic livestock industry imported 4.85 million tonnes of animal feed ingredients worth of 1.65 billion USD, an increase of 6.4% in volume but a decrease of 12.3% in value compared to the same period last year.

The department also reported that in the three regions nationwide, the price of live hog in early 2024 increased rapidly compared to the end of 2023. 

An average price was 53,000 VND per kilo in January. It surged by 3,000-4,000 VND per kilo in February and 1,100 VND per kilo to 58,100 VND in March.

Now, the price stands at 58,000-62,000 VND per kilo depending on each province and city.

The average price of live hog in the first quarter of this year was up by 9.7% compared to the same period in 2023. With that price, farmers have gained a profit of 5,000-6,000 VND per kilo.

In the second quarter, the Department of Livestock Production will coordinate with the Department of Animal Health and relevant units to closely monitor supply and prices of animal feed ingredients at home and abroad, aiming at taking timely measures to minimise the impact on the livestock industry's production and business.

They will also conduct measures to strictly control the trading and transportation of cattle, poultry and related products, especially at border gates, trails and hiking areas in border zones. 

They will coordinate with relevant units to handle violations of the quality of livestock breeds and animal feed./.

US assists Vietnam in proper fertiliser use

The Fertilize Right Project was launched by the Ministry of Agriculture and Rural Development (MARD) and the United States Department of Agriculture (USDA) at a workshop held on April 9 in Hanoi.

The four-year project worth US$4.4 million is led by the Plant Protection Department and implemented by the International Rice Research Institute (IRRI).

It is set to be implemented in the three Red River Delta provinces of Hai Duong, Thai Binh, and Nam Dinh; along with the three Mekong Delta localities of Can Tho city, Dong Thap province, and Soc Trang province.

More than 2,600 individuals are expected to benefit from short-term training; and greenhouse gases such as CH4 and N2O are to be reduced by an annual amount equivalent to 56,000 tonnes of CO2.

In his address, Deputy Minister of Agriculture and Rural Development Hoang Trung said that the project is designed to promote sustainable and environmentally responsible agricultural production.

He therefore voiced his hope that with technical support from USDA, IRRI experts, and Vietnamese scientists, farmers in the participating  localities will gain access to advanced techniques and precision agriculture practices, including optimised fertiliser use in rice cultivation, in order to replicate successful experiences nationwide.

Speaking at the launch workshop, US Ambassador to Vietnam Marc E. Knapper stated that the two countries’ upgrading of their relations to that of a comprehensive strategic partnership in 2023 opened up plenty of opportunities for agricultural co-operation for sustainable development. The US is the second-largest importer of farm produce from Vietnam, while the nation holds an important position in global food security.

The diplomat expressed his confidence that the project will provide technical support and training to rice farmers as they strive to improve their livelihoods, soil health, and ensure food security.

The project activities are based on the "four rights" of nutrient management, namely right source, right rate, right place, and right time. These principles correspond to the "five rights" of fertilisation stipulated in Vietnamese crop production law, which are right soil, right crop, right amount, right time, and right method.

MoST regulates criteria for traceability of products and goods

The Ministry of Science and Technology (MoST) has just issued Circular 02/2024/TT-BKHCN regulating the management of traceability of products and goods.

The circular takes effect on June 1 and consists of five chapters with 14 articles.

Of which, it requires organisations and individuals producing, trading and providing services to trace the origin of goods when creating data to ensure at least the name of product and goods; images of products and goods; name of production and business unit; and address of production and business unit.

Along with that are stages in production and business; production and business time; codes to trace the origin of products and goods; brand, trademark, code, product serial number (if any); shelf life of products and goods (if any); national standards and technical regulations, international standards, regional standards and facility standards applied.

This information is printed with a code attached to the product packaging, connected to the National Product and Goods Traceability Portal. Consumers can look up the expiration date and origin of the product.

The circular applies to organisations and individuals producing, doing business and providing services that trace the origin of products and goods; organisations and individuals providing services and solutions related to traceability of products and goods; State management agencies and other organisations and individuals involved in implementing traceability of products and goods.

The portal is invested by the National Numbering and Barcodes Centre and was completed in 2022. It is expected to be officially put into operation in the second quarter of this year. 

Squid and octopus exports decline slightly by 2% in Q1

Vietnam’s squid and octopus exports in the first quarter of the year are estimated at about US$136 million, suffering a slight decrease of 2% against the same period from last year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). 
 
The Republic of Korea (RoK) remains the largest consumer of Vietnamese squid and octopus, with turnover reaching nearly US$46 million as of mid-March, representing an increase of 15% on-year and accounting for 42% of the country’s squid and octopus exports.

According to information provided by the VASEP, Japan's nuclear wastewater discharge has reduced the RoK's demand for seafood imports from the Far East nation.

Vietnamese squid and octopus exports to the RoK are therefore anticipated to continue to grow positively moving forward as the ban on importing Japanese seafood into China has yet to be lifted.

Furthermore, Japan is the second largest importer of Vietnamese squid and octopus, accounting for 26%. As of mid-March, the export of these products to this market dropped by 16% to US$25 million against the same period from last year.

China and Hong Kong (China) are the country’s third largest export markets with exports to this market surging by 32% to US$11 million against the same period from last year.

The Chinese market tends to focus on imports such as dried squid, cuttlefish, frozen cleaned whole cuttlefish, frozen sorted squid, frozen tempura breaded squid, frozen cut octopus, and frozen cleaned whole octopus.

The average price of frozen Vietnamese octopus exports to China ranged between US$2.3 and US$5.3 per kilo, while the export price of frozen squid stood at US$1.9 to US$3.6 per kilo during the reviewed period.

VN to import more coal from Laos from 2025

There is great potential in mineral trade between Việt Nam and Laos, according to Vietnamese Minister of Industry and Trade Nguyễn Hồng Diên.

In a meeting with Laos' Minister of Energy and Mines on Monday, Diên said Việt Nam is looking to import 60-100 million tonnes of coal per year during 2025-30, with a large portion from Laos.

He said the two neighbours have been working out ways to help boost coal import from Laos to Việt Nam, stressing the need to bring the cost of Laotian coal down, closer to the global price.

In a recent report by the Việt Nam General Department of Customs, Việt Nam imported a total of 51.1 million tonnes of coal at US$7.1 billion in 2023, a 61.4 per cent increase in volume and 0.7 in value compared to the previous year.

Việt Nam has been increasingly dependent on imported coal, mainly to fuel its thermal power plants, cement and fertiliser production. The country has signed numerous deals with Laos to purchase electricity from 26 hydropower plants from Laos, with a total capacity of 2,689MW, nearly 90 per cent of a purchase plan until 2025.

Diên said the two ministries have been working together on a proposal to increase electricity import from Laos to Việt Nam to 5,000MW, improve transmission systems and bolster bilateral trade of petroleum products.

US initiates sunset review of wind tower imported from Vietnam

The US Department of Commerce (DOC) has launched a second sunset review of an order imposing anti-dumping duties on wind tower products imported from the Vietnamese market, according to information given by the Trade Remedies Authority of Vietnam (TRAV).

The product subject to an investigation is a wind tower coded HS 7308.20.0020 and 8502.31.0000. The DOC initiated an anti-dumping probe into wind towers imported from the country back in 2012, duly imposing duties of between 51.54% and 58.54% in 2013.

The TRAV said the sunset review is conducted every five years. If the review results indicate that the suspension of anti-dumping duties could potentially lead to the continuation of anti-dumping practices which cause significant harm to the US manufacturing industry, the additional order will be imposed for a further five years.

As a means of ensuring their legitimate interests for businesses, the TRAV recommends relevant manufacturers and exporters to gain greater insights into the US’ regulations and review procedures, whilst fully abiding by the requirements of the US investigation agency, as well as closely co-ordinating with the TRAV throughout the case.

Advances in tech aid shrimp output

Vietnam’s shrimp industry has experienced a successful first quarter with positive signals from exports, with more high-tech in farming and processing activities helping to improve competitiveness.

According to data from the General Department of Vietnam Customs, shrimp export turnover in the first three months of this year is estimated to have reached more than $620 million, up almost one-quarter over the same period last year. In the two main export markets of the United States and China, the proportion of shrimp exports recorded growth of 26 per cent and 140 per cent, respectively.

Ta Thi Kim Thu, a market expert at the Vietnam Association of Seafood Exporters and Producers (VASEP), said that the demand for shrimp imports in key markets is still quite high.

“Compared to some of the main shrimp suppliers to the US market such as India, Ecuador, and China, Vietnam is considered more promising, especially when diplomatic relations between the two countries are very good,” said Thu.

VASEP earlier in the year predicted that the potential of exporting shrimp to the US would be affected after the American Shrimp Processors Association proposed anti-subsidy taxes on imported shrimp and increasing sea freight rates. However, since the US Federal Reserve gave optimistic signals about the general economic picture, the consumption trend of Americans has rapidly improved.

Meanwhile, China is also increasing shrimp imports from Vietnam after restricting imports from Ecuador due to the content of sodium metabisulfite, a preservative commonly used in the food industry to prevent oxidation higher than allowed levels.

VASEP added that demand for shrimp imports from the Japanese market is also expected to recover soon. “Vietnamese shrimp is leading the market share of high-end shrimp in Japan,” she said. “Japanese consumers demand high-quality products, consistent with Vietnam’s processing level and capacity.”

According to Trinh Trung Phi, deputy general director of Aquaculture Technical at Viet Uc Seafood Corporation, despite being among the top countries in shrimp export, Vietnam’s shrimp industry is facing many barriers.

“The cost of shrimp food is increasing, leading to an increase in production costs. Vietnam’s whiteleg shrimp costs per one kilogramme is about $4, while the figure is only $3 in India, and $2.5 in Ecuador. The next challenge comes from not being proactive about quality breeds. More than 80 per cent of the current source of broodstock shrimp depends mainly on imported sources and wild exploitation,” Phi said.

Viet Uc is currently the top enterprise in the shrimp seed segment in Vietnam, accounting for more than 30 per cent of market share. It is also the first and only enterprise to cooperate exclusively with the CSIRO Institute, the largest scientific and industrial research agency in Australia, to develop a genetics and breeding programme for shrimp broodstock in Vietnam.

Not only does it spend plenty of resources on investing in quality seed research, Viet Uc also invests heavily in shrimp farming and processing technology with three high-tech commercial shrimp farming and production complexes, moving forward to close the value chain.

Over the past five years, the company has invested more than $62.5 million to develop membrane shrimp farming, successfully changing the perspective of sustainable shrimp farming without using antibiotics, and reducing the rate of destruction during the farming process from 30 per cent to zero.

Minh Phu Seafood Corporation has researched and raised shrimp using MPBiO biotechnology to reduce product costs, while still ensuring quality,

Minh Phu is currently the largest shrimp exporter in Vietnam, with more than 99 per cent of shrimp sold each year for export. The group aims to increase its domestic market share by 5-10 per cent by bringing shrimp lines that meet Japanese, American, and European export standards, are raised in an antibiotic-free and chemical-free environment, and are distributed in the Bach Hoa Xanh system to provide domestic consumers with a source of high-quality shrimp.

Ho Quoc Luc, chairman of the Board of Directors of Sao Ta Food JSC, said that global customers evaluate Vietnamese shrimp as having excellent quality, but the price can be too high.

“This is a repeat of the previous competitive path of Indonesian shrimp, but now, Indonesian shrimp prices have become softer. Vietnam’s shrimp industry must have solutions to improve processing levels and diversify products to attract consumers and maintain high-level market share,” Luc said.

Vietnamese shrimp has been exported to about 100 countries and territories. Vietnam is also continuously in the top three countries exporting the most shrimp worldwide, with export value accounting for 13-14 per cent of the total global shrimp export value. Every year, the shrimp industry contributes about 40-45 per cent of total seafood export value, according to VASEP.

Agricultural exports make solid mark in first quarter

Vietnam counted a 21.8 per cent jump on-year in agricultural, forestry, and fishery export value in Q1, continuing a stellar performance for the export picture of the country.

Of the sector’s total export value reaching $13.53 billion Q1, fruit and vegetables, rice, and seafood left strong impressions with a combined value reaching $4.5 billion.

Particularly, export of fruit and vegetables bagged $1.23 billion, showing 25.8 per cent jump on-year. Rice generated $1.37 billion in total export value during the period, up 40 per cent, and seafood counted $1.86 billion, up 2 per cent on-year.

For the first time, fruit and vegetable exports surpassed the $1 billion mark in total value right in Q1. The Vietnam Fruit and Vegetables Association noted that the breakthrough was largely driven by off-season durian as many countries, especially Thailand, have bolstered export of this kind of fruit in the past year.

So far in 2024, Thailand has turned out to be Vietnam’s fourth-largest import market, with a 125 per cent jump on-year, pushing up its market share from 2 to 4 per cent.

Vietnam’s rice export in Q1 was also impressive, as the country raked in $1.37 billion in total value from exporting just over two million tonnes, up 40 per cent in value and 12 per cent in volume on-year.

With such figures, the country remains in the top three largest rice exporters globally, after India and Thailand.

Vietnam’s traditional rice import markets such as the Philippines and Indonesia all have surging demands for Vietnamese rice. Vietnam’s trade counsel in the Philippines revealed that each year it needs to import as much as four million tonnes of rice, and Vietnam is currently the number one rice supplier to the Philippines.

Vietnam’s total rice export volume to the Philippines amounted 3.1 million tonnes, generating $1.75 billion in total value.

Indonesia, Vietnam’s second-largest rice importer, has also bolstered import from Vietnam to ensure food security. According to its trade counsellor, the Indonesian government will soon open auctions to buy more rice, besides an auction conducted in January to buy 500,000 tonnes, in which Vietnamese exporters secured orders to supply more than 300,000 tonnes.

The Vietnam Food Association estimates that this year, along with ensuring domestic food security, the country can export over eight million tonnes of rice, bringing in over $5.5 billion in total export value.

On the part of businesses, Trung An High-Tech Farming JSC, a major rice exporter based in the Mekong Delta city of Can Tho, revealed that the company has closed many export orders already this year for export of high-quality rice to demanding markets.

“At the beginning of 2024, the company signed a string of export orders with volume reaching 1,500 tonnes for export to the EU, the United Kingdom, Malaysia, and Australia, with prices ranging from around $720 to $1,400 per tonne,” said CEO Pham Thai Binh.

The global rice market is being affected by diverse detrimental factors, such as a rice export ban from India, and an unfavourable climate causing negative impacts on food output in many countries. For Vietnam, India’s ban and increased rice import from China and Indonesia are conducive for the country’s rice export business.

Meanwhile, seafood export saw a contraction in 2023 when the country posted $9 billion in total export value, down $1 billion compared to 2022.

However, Q1 saw a rebound when the country’s seafood export value climbed 2 per cent on-year, according to figures from the Ministry of Industry and Trade.

The Vietnam Association of Seafood Exporters and Producers said Vietnam’s shrimp export to the United States in Q1 posted a 26 per cent jump on-year. Export of tuna, basa fish, and crab to the US also rose 13-15 per cent.

Amid surging demands from major export markets as the US and EU, businesses are working on several growth scenarios to suit the situation. For instance, Vinh Hoan Corporation, Vietnam’s top basa fish exporter, has presented two scenarios, taking into account unfavourable factors such as consistent growth in input and logistics costs.

In the low scenario, Vinh Hoan aims to reach $445 million in total revenue, up 6.6 per cent on-year, yet its post-tax profit is expected to shed 12.9 per cent to $33.3 million. For the high scenario, the company aims for $479 million in revenues and $41.6 million in post-tax profit, up 14.6 and 8.8 per cent, respectively, compared to 2023. Over the first two months of 2024, Vinh Hoan reached over 15 per cent of its plan for the year.

The Ministry of Agriculture and Rural Development figures indicate that the average export price of key export items rose in the first quarter compared to one year ago.

For instance, rice export averaged $660 per tonne, up 25 per cent; coffee fetched an average $3,180 per tonne, up 43.5 per cent; and pepper averaged around $4,150 per tonne, up 35.6 per cent, to name but a few.

Rice exports gross nearly US$1.4 billion in Q1

Vietnam exported more than 2.1 million tonnes of rice worth nearly US$1.4 billion during the first quarter of the year, representing an increase of about 42% against the same period from last year, according to the Ministry of Agriculture and Rural Development (MARD). 
 
This rise can be attributed to the fact that major markets such as the Philippines, Indonesia, China, Ghana, Malaysia, and Singapore all increased their purchases of Vietnamese rice.

In particular, Vietnamese rice consistently dominated other rivals in the Philippines' rice auctions throughout the reviewed period.

Insiders point out that several countries have raised concerns about reliance on Vietnam, meaning that they have launched planned to diversify supply sources.

Therefore, firms are advised to diversify their export markets whilst improving product quality to make Vietnamese rice become more competitive within the global market. At present, the export price of Vietnamese 5% broken rice is US$576 per tonne, down 12% compared to the beginning of the year.

This figure is the lowest level since the beginning of the year and lower than that of both Thai and Pakistani rice.

Vietnam expects to earn US$5 billion from rice exports this year, emerging as the world’s third largest rice exporter. Last year, the country exported 8.13 million tonnes of rice worth US$4.7 billion.

Vietnam’s export to India maintains growth momentum

Vietnam kept its export growth momentum in the Indian market in 2023 after two-way trade hit a record high of 15 billion USD in 2022, Vietnamese trade counsellor in India Bui Trung Thuong told the Vietnam News Agency.

Despite global headwinds such as geopolitical conflicts and supply chain disruptions, Vietnam’s exports to India reached 8.5 billion USD for the first time in 2023, up nearly 10% from the previous year, while the world’s total trade fell some 10%.

However, Thuong described India’s trade barriers and trade defence instruments as a challenge for the two-way trade, elaborating that India has used various tools to reduce imports which it believes could impact domestic production.

More than 2,000 new standards for imports were issued, making it hard for Vietnamese exporters to apply for new or extend the quality standard certificates, he added.

According to Thuong, the similar nature of the two economies also poses challenges to their trade. He took rice as a typical example when India is the world’s leading rice exporter while Vietnam has maintained its position in Top 3.

Against this backdrop, he suggested competent authorities of both sides need to enhance exchanges to create mutual confidence and find ways to remove bottlenecks.

Business communities and associations must organise trade promotion programmes to seek business opportunities and expand markets, he said, adding businesses should adapt to India’s new rules so as to better penetrate into this market.

Besides, Thuong pointed out several bright spots for the two-way trade as the Indian Government has encouraged production of some specific products, including electric vehicles (EV).

Most recently, Vietnamese EV maker VinFast broke ground for its integrated EV facility in India’s Tamil Nadu state, which is expected to promote the shipments of other goods and materials from Vietnam.

In the meantime, air travel between the two countries has been made easier with more direct flights to be launched, and this is an important factor to boost bilateral trade, he added./.

Vietnamese anise exports to India skyrocket by 178% in March

Vietnam’s anise exports to the Indian market in March skyrocketed by 178% compared to the previous month with 645 tonnes, accounting for a proportion of nearly 65%, according to statistics released by the Vietnam Pepper Association (VPA).

The country raked in US$5.4 million from exporting 998 tonnes of anise in March, representing an annual increase of 79% in output.

In the first quarter of the year, the nation shipped 2,435 tonnes of anise abroad worth US$13.3 million, down 27% in output and 38% in turnover.

With regard to export markets, India represented the largest consumer of Vietnamese anise in the reviewed period with 1,376 tonnes, suffering a fall of 39% and accounting for a proportion of 56.5%.

The United States was the third largest export market with 212 tonnes, making up for 8.7% of the overall proportion and a drop of 16% on-year.

Last year saw the nation earn US$83 million from exporting 16,136 tonnes of anise, up 26% in volume. India remained the country’s largest export market with 499 tonnes, accounting for a proportion of 57%.

Mongolia to open direct flights to HCMC in November

Following the recent visa waiver for Vietnamese visitors introduced in March, Mongolia is planning to attract more Vietnamese tourists by opening a direct air route between its capital Ulaanbaatar and HCMC, starting this November.

The commencement of direct flights will significantly reduce travel time for tourists traveling between the two countries, cutting it down from 10-19 hours to just six hours. There will be two to three weekly services.

Munkhnasan Oldokh, vice president of the Mongolian Tourism Association, said during the Go Mongolia – Roadshow, a series of tourism promotion events held in HCMC from April 4 to 7, that HCMC serves as a major tourism hub and sees a high number of outbound tourists annually. Therefore, it is expected that the city will play a crucial role in facilitating increased tourist traffic between Vietnam and Mongolia.

Since March 7, Vietnamese travelers who stay in Mongolia for less than 30 days have been exempted from visa.

Currently, Vietnamese tourists traveling to Mongolia have layovers in South Korea or Hong Kong.

Retailers put export-quality products on shelves to capture green consumption trend

Domestic retailers are increasing the distribution of export-quality products in an effort to catch the consumption trend towards green, environmentally friendly and safe products.

Recently, Bách Hoá Xanh mini-mart chain of Mobile World Investment Corporation signed a strategic cooperation agreement with Minh Phú Seafood Corporation, one of the leading fishery producers in Việt Nam, to put export-quality shrimp products on shelves of Bách Hoá Xanh.

Phạm Văn Trọng, Bách Hoá Xanh’s general director, said domestic retailers were making the effort to find and sell high-quality products to Vietnamese consumers.

Previously, people often thought that good-quality products were all for export, but Bách Hoá Xanh was doing the opposite to enable domestic consumers to enjoy products of a quality to compete in highly demanding markets.

Lê Văn Quang, general director of Minh Phú Seafood Corporation, said that cooperation with the retail system would be important to bring export-quality products to domestic consumers.

Saigon Co.op also signed with six companies supplying 500 tonnes of goods per month on average to the retail system of Saigon Co.op a commitment to develop green and sustainable supply chains and ensure benefits in terms of consumers’ health.

Promoting export is critical in a world of rapid international integration, but to gain strength in export, it is important for enterprises to have strong foothold in the domestic market, Nguyễn Thanh Hải, general director of Qui Phúc Trading – Service – Production Company Limited said.

Some enterprises still find it difficult to put products on the shelves of domestic retailers.

Bùi Trung Kiên, director of Xuân Thái Thịnh in Lâm Đồng Province, said that many of his company’s products were exported to strict markets including Japan and the European Union (EU), but could not get a place in the domestic distribution system even though the company had invested in production technology meeting international standards.

According to Trần Văn Liêng, President of Việt Nam Quality Association of HCM City, the domestic distribution should have recognition and give priorities to enterprises making efforts to promote green production, circular economy, improving quality and business ethics.

Trần Kim Yến, Deputy Head of the Steering Committee of the campaign ‘Vietnamese prioritise Vietnamese products’ in HCM City, said that the most important solution was to enhance linkage between production and distribution towards a sustainable supply chain.

The domestic market of Việt Nam was growing in depth, not simply stopping at quality, durability and price, but aiming at quality certification and global standards.

Nguyễn Thị Thanh An from the Australian Centre for International Agricultural Research said that support was needed to enhance the production capacity of domestic enterprises towards high-quality standards.

Besides, the distribution systems should require suppliers to be transparent and create favourable conditions for domestic suppliers to put products on their shelves. 

Where is environmental governance in FDI attraction?

While Vietnam and businesses are moving towards sustainability, hubs of environmental concerns remain in attractive investment destinations, requiring a change in order to become competitive.

Having been working on the Vietnam Provincial Governance and Public Administration Performance Index (PAPI) for eight of its 15 years, research team member Dr. Paul Schuler was thrilled to be present at the last week’s launch in Hanoi of the 2023 results, talking about some improvements in certain dimensions while still outlining concerns.

“It is superb that the Vietnamese government is using this as a tool to improve governance and has allowed this index to continue,” he told VIR. “In general, most research on these different indexes indicates that when governance improves, we tend to see more foreign investors wanting to put money into different provinces.”

“However, citizens are seeing challenges in the environment. This is going to put pressure on businesses to grow in a more environmentally friendly manner. But we do not measure explicitly the degree to which the local governments require businesses to comply with environmental regulations. That is more related to other indexes that look specifically at businesses,” he added.

Environmental governance is one among the dimensions that the PAPI 2023 focuses on. Similarly found in previous years, the 2023 results strongly suggest that hubs of environmental concern remain in the Red River Delta and Southeast regions, where more industrial provinces are located, and the Central Highlands.

Among 16 localities in the low quartile, six are from the Red River Delta and four each are from the Southeast and Central Highlands.

Worse still, all localities scored below 4.3 points on the 1-10 point scale in 2023, below the national highest score of 4.73 points in 2021. Eight localities made significant improvements over the past three years, while 26 others scored lower in 2023 than 2021.

In addition, around 80 per cent of respondents in all cities and provinces agreed that their local businesses did not have to offer additional money to local authorities to bypass environmental regulations. The proportion of agreements increased in 24 cities and provinces, higher than in 2022, but still declined in 35 localities compared to 2021.

The largest on-year drops in the percentage of respondents who believed their local governments did not accept bribes to avoid green regulations (by more than 18 per cent) were seen in Haiphong, Phu Tho, Quang Binh, Thai Binh, and Thanh Hoa.

The PAPI Research Team blamed the perceived lack of local governments’ commitment to environmental protection and the poor quality of domestic water sources as reasons for low provincial scores.

Research team member Dr. Dang Hoang Giang told VIR, “The findings prove that several cities and provinces have yet paid due attention to environment government. This is a big concern. If cities and provinces do not change this, it will negatively affect the country’s effort to implement the net-zero commitments.”

Dr. Duong Trung Y, vice president of the Ho Chi Minh National Academy of Politics noted that, in the common effort of Vietnam to build a constructive and action-oriented government, it is witnessing a strong increase in the role and impact of assessments from individuals and businesses on the operation of the local state apparatus.

“Objective indicators such as PAPI, the Provincial Competitiveness Index, or the Public Administration Reform Index are not only important basis to evaluate the effectiveness of public service performance of ministries and local agencies, but also provide important suggestions for Vietnam to continue improving the country’s development policy, implementing the national digital transformation strategy, building a people-centric and enabling state, and leaving no-one behind,” he noted.

Moreover, foreign-invested enterprises now head to sustainable development in alignment with the green growth strategy in Vietnam. As shown in a March survey conducted by Decision Lab, about 60 per cent of businesses have a board-level governance structure for sustainability and almost 60 per cent have defined environmental, social, and governance targets. And a similar rate of businesses also indicated that they have budget allocated for such initiatives.

Dr. Y also commented that although green growth and sustainable development have become a trend in Vietnam and globally, not all businesses and investors consider environmental governance as a key factor for making business and decisions.

“We now still see a lot of financiers prioritise transportation, infrastructure, and energy and others when they choose an investment destination. Possibly, in the future, their priorities may change, so cities and provinces should pay more attention to the environmental governance to be competitive.”

As shown in PAPI 2023, while seeing the above on-year drop, many cities and provinces are still attractive to foreign investors. For instance, Ho Chi Minh City, Dong Nai, Hanoi, Thai Binh, and Haiphong are still among the most attractive destinations for foreign financial backers in Vietnam.

According to statistics from the Ministry of Planning and Investment, Ho Chi Minh City lured $5.85 billion worth of foreign funding in 2023, ranking first, followed by Haiphong, Thai Binh, and Quang Ninh.

In the first quarter of 2024, these localities continue to be on the top 10 list for foreign capital attraction.

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