Vietnam exported 147,000 tonnes of cashew nuts worth US$782 million in the first quarter of the year, representing a rise of 31.8% in volume and 20.5% in value year on year, according to the General Department of Vietnam Customs.

March alone saw the country ship 55,000 tonnes of cashew nuts worth US$289 million abroad, up 106.8% in volume and 103.4% in value compared to February.

The average cashew export price in the first quarter dropped by 8.6% to US$5,329 per tonne against the same period in 2023.

In the reviewed period Vietnam increased the export of various types of cashew nuts compared to the same period last year, except for the cashew type of WS/WB, SP and DW.

Statistics from the General Department of Vietnam Customs indicate that the country mainly exported cashew nuts W320 and W240 in the first two months, accounting for 56.71% of the total export volume, making a positive impact on the local cashew market.

Lenders asked to maintain loan standards to ensure credit safety

The central bank is calling on lenders to facilitate access to capital for businesses, while also maintaining lending standards to ensure the safety of credit amid low demand.

Speaking at a meeting last Friday in HCM City, Đào Minh Tú, deputy governor of the State Bank of Vietnam (SBV), said the central bank will monitor banks that have a huge disparity between deposit and lending rates as part of its policy to support firms to access capital.

It has ordered lenders to provide “safe and healthy” credit and support firms to ensure credit growth is aligned with their risk management capabilities.

“With a surplus of capital for lending, credit institutions have been assigned a yearly credit limit of 15 per cent,” he said.

The central bank will continue to monitor market developments closely and be prepared to provide timely, appropriate, and proactive additional credit limits to support liquidity.

Last year, the central bank ordered lenders to restructure repayment terms and maintain debt groups for businesses by June 30 of this year.

It has proposed that the Government extend the deadline for another six months, according to Tú.

In addition, it has implemented various measures to facilitate access to production and business loans, such as reducing interest rates and organising credit programmes for priority sectors.

While the average deposit and lending interest rates have decreased significantly compared to the end of 2023, outstanding lending reached VNĐ13.6 quadrillion as of the end of March, up only 0.61 per cent over the end of 2023.

While deposit interest rates have constantly dropped since March last year, lending rates remain too high, experts said.

Tô Thị Tương Lam, deputy secretary-general of Vietnam Association of Seafood Exporters and Producers (VASEP), said interest rates for USD loans for export businesses remain too high and banks should reduce the rates to 4 per cent per year.

Currently, the interest rate for USD loans for seafood exporters is 6 - 7 per cent per year. It is up 8 - 8.5 per cent per year for small businesses without collateral assets, she said.

Phạm Văn Việt, director of Việt Thắng Jeans, said a majority of businesses were facing challenges in accessing loans, especially for long-term capital and preferential loan packages for specific industries.

Nguyễn Đình Tuệ, director of the HCM City Enterprise Support Service Center, said in addition to cutting interest rates for existing loans, lenders should simplify procedures to increase loan accessibility.

“They need to be flexible, not only providing mortgage loans but also lending through business methods, managing revenue from sales.”

Experts proposed the Government should have policies to stimulate consumer demand, investment demand, and public investment disbursement.

In addition, the policy of reducing the value-added tax by 2 per cent should be extended instead of ending on June 30, they noted.

Prime Minister Phạm Minh Chính has ordered the central bank to improve its handling of credit growth, after he complained credit has been growing too slowly.

Việt Nam’s economic growth largely depends on credit growth managed by the central bank, which sets annual targets for banks, with the aim of controlling lending and managing growth.

The central bank had set a credit growth target of 15 per cent this year, but lending as of March 27 had grown only 0.61 per cent due to weak demand amid economic difficulties.

The central bank explained that “the economy was still facing difficulties with a slow economic recovery and therefore demand for loans was weak.” 

Wood pellets hold much potential for low-emission production

Việt Nam has much potential to convert production systems from high emission fuels like coal to wood pellets, reducing emissions on a national scale, heard a seminar in Hà Nội on Friday.

Organised by the Vietnam Timber and Forest Products Association, Vietnam Thermal Science and Technology Association and Forest Trends, the seminar aims to encourage small production facilities that use steam turbines to convert their systems from high-emission fuel sources like coal and oil to low-emission wood pellets.

Steam turbines are used in Việt Nam's industrial production to provide heat, steam and hot water for both light and heavy industries. Meanwhile, biomass (rice husks, wood chips, sawdust and wood pellets) and electricity, gas, oil or coal can be utilised to produce steam.

According to Trần Văn Lượng, chairman of the Vietnam Thermal Science and Technology Association, about 9,000 industrial boilers are currently in use in Việt Nam.

Coal is used in many establishments to run boiler systems. Converting the coal input of these facilities to cleaner fuel sources has great potential to reduce emissions on a national scale, he said.

In recent years, there has been significant growth in the pellet business in Việt Nam, particularly wood pellets. The pellets are manufactured using waste byproducts from the wood industry, including firewood branches, tree tops, sawdust and shavings.

Approximately five million tonnes, or 95 per cent of the pellets produced in Việt Nam, are exported, mostly to the Korean and Japanese markets. In those countries, coal is mostly replaced by imported pellets as an input fuel for electricity production.

Currently, Việt Nam’s usage accounts for around 5 per cent of domestic pellet production, primarily in small-scale production facilities' boiler systems.

Lượng stated that despites advantages of using pellets, there are still obstacles that enterprises must overcome in order to convert their boilers to biomass. These hurdles include a lack of standards and investment funds for the transformation.

One of the other challenges is that the domestic carbon market has not yet been formed, so it has not created a driving force for businesses to transition, he told the seminar.

Tô Xuân Phúc, from Forest Trends, said the Vietnamese Government has made a strong commitment to achieving net-zero emissions by 2050. There is much potential room for pellet use in the domestic market.

Some companies that export wood claim that when demand in Việt Nam starts to rise quickly, the wood pellet industry will have a chance to grow its market.

Specifically, in 2024 and 2025, the need for pellets in Japan is expected to rise and could triple. In the next two to three years, the supply and demand for this commodity will be balanced if Việt Nam's production capacity is kept at its current level.

In spite of export potential, the manufacture of wood pellets confronts difficulties in controlling product output and quality, as well as future raw material shortages.

Việt Nam exported 4.6 million tonnes of wood pellets in 2023, valued at around US$680 million.

Over 170 meetings arranged at Hà Nội-Incheon Business Meeting 2024

More than 170 meetings occured between Vietnamese enterprises and Korean firms from Incheon during a trade promotion event between businesses of the two cities on April 4.

The event, orchestrated by the Korea Trade-Investment Promotion Agency (KOTRA Hanoi), was part of KOTRA Hanoi’s efforts aimed at bolstering trade promotion activities between Việt Nam and various Korean provinces.

About 30 businesses from Incheon showcased a wide array of products including cosmetics, mother and baby supplies, food supplements, household appliances, medical equipment and industrial machinery. The high-quality products garnered significant interest from Vietnamese businesses.

Discussion between representatives from both sides primarily revolved around establishing suitable export prices and outlining plans for the near future.

Kim Byeong Hoi, chairman of Ulfine Company which specialises in cosmetic equipment manufacturing, expressed optimism about finding Vietnamese distributors for their beauty equipment. He noted that one of the three potential clients they met expressed keen interest in their product and agreed to further discussions.

Incheon, being a central city and a vital Korean and international trading hub, serves as one of Korea's major export centres, offering a strategic advantage for Vietnamese importers.

Fruit, vegetable exports likely to soar to record levels

Việt Nam’s fruit and vegetable exports could reach record levels in 2024, especially with the country working on an export protocol for fresh coconut and frozen durian with China this year.

In the first quarter the exports topped US$1 billion for the first time after increasing by 25.8 per cent year-on-year.

Đặng Phúc Nguyên, general secretary of the Việt Nam Fruit and Vegetable Association, said durian accounts for a majority of the exports, and would increase further since the Central Highlands is entering harvest season.

If Việt Nam can export the two products to China, fruit and vegetable exports would see significant growth, he said.

The revenues from each could be up to $300 million, which would see fruit and vegetable exports exceed $6 billion in 2024, he added.

Cao Bá Đăng Khoa, general secretary of the Việt Nam Coconut Association, said businesses are excited that they can export coconut to China as soon as the protocol is signed.

He urged the Ministry of Agricultural and Rural Development to strictly manage farming areas and packing companies’ codes and product traceability.

Nguyên said farmers and businesses need to pay attention to crop protection agent residues used on their crops that are exported to China.

Farmers should adopt VietGAP (Vietnamese Good Agricultural Practices) standards, he added.

​Đoàn Thúy Giang, chairman of Vĩnh Khang Group Joint Stock Company, said his company exports durian to China and plans to invest in cold storages and export the fruit in frozen form.

China has huge demand for durian, and since Vietnamese durian is equal in quality to Thailand’s, Chinese businesses pay attention to it thanks to competitive prices.

The Plant Protection Department and agriculture ministry stated that it is important to step up oversight of farms and packing facilities to control quality from the early stages of production.

Local authorities need to encourage businesses to invest in infrastructure, semi- and deep processing, preservation, and cold storage, they added. 

German Business Association says investment in Việt Nam to continue to grow

German investment in Việt Nam is expected to keep growing in 2024, the German Business Association (GBA) said.

Alexander Ziehe, the new chairman of the GBA, said: "Traditionally, German investments were mainly directed to Singapore, Thailand and Malaysia. These countries host an established cluster of German industries, such as the automotive sector in Thailand or research and development hubs in Singapore. 

“The trend is changing, and Việt Nam is now considered as an investment location of increasing attractiveness. 

“German investors favour Việt Nam to supplement their China operations for its lower costs, alternative markets, and convenient geographic and supply route proximity to China.

“Việt Nam itself also offers a rising middle class and opportunities to establish German brands for Vietnamese consumers with local distribution and supply chains.” 

The GBA said it has recently received commitments for new projects from Fuchs Petrolub for lubricants production, Schütz for industrial packaging in Bà Rịa – Vũng Tàu Province, Kärcher for machinery manufacturing in Quảng Nam Province, Tenowo for fabric production in Hải Phòng City, and Ziehl-Abegg for control technologies and ventilation systems in Đồng Nai Province.

The GBA recently launched its 2024 action plan to strengthen economic relations between Việt Nam and Germany, focusing on enhancing interactions, expanding its presence in the northern region and driving strategic development initiatives.

The association is enhancing economic and trade links between Germany and Việt Nam by promoting the interests of GBA members and fostering close collaboration with relevant stakeholders.

They will also pursue these objectives through specific strategies, including new operational initiatives. 

A highlight is the expansion of its presence in the northern region and the pursuit of strategic development opportunities. 

These demonstrate GBA's proactive approach to meeting the evolving needs and demands of its members while maximising the value it provides to the German business community in Việt Nam and the Vietnamese economy at large.

Its specific activities and plans are all geared towards business networking and promotion of investment in Việt Nam.

The most anticipated event is the GBA Oktoberfest, which will take place in the three big cities of Hà Nội, Đà Nẵng and HCM City in September and October this year. 

Besides, in 2024, for the first time, the GBA will give away the German Business Awards in Việt Nam.

In close co-operation with the Delegation of the German Industry and Commerce in Việt Nam (AHK Vietnam) and the European Chamber of Commerce in Việt Nam (EuroCham Vietnam), it will organise special events to expand investment and business opportunities for its members.

They include a business trip to Cambodia in May and the German Pavilion showcasing technology and "green" solutions at EuroCham’s Green Economy Forum & Exhibition (GEFE) in October in HCM City.

In the first quarter of this year the GBA's commitment to fostering strong German-Vietnam ties was demonstrated through a diverse schedule of events and activities. 

They included a roundtable conference with visiting German President Frank-Walter Steinmeier in HCM City, which was a notable highlight.

A high-level delegation that included the German Minister of Labour and Social Affairs participated in constructive exchanges with the German business community in Việt Nam, laying the groundwork for future cooperation and partnerships.

The GBA business meeting held in March 2024, focusing on the economic outlook of ViệtNam 2024 and the role of ASEAN, set a record with over 100 business executives participating.

The GBA also actively collaborated with Vietnamese government agencies to address members' concerns and support policy reforms to promote business development. 

AIS develops incident response plans for information systems

Facing the trend of cyber-attacks, the Authority of Information Security (AIS) under the Ministry of Information and Communications (MIC) is developing an incident response plan for information systems.

Recently, a number of information systems of agencies, organisations and businesses in Việt Nam have been attacked, causing physical and image damage, and disrupting business operations.

Through monitoring and supervising cyberspace, the AIS detected an increasing trend of cyber-attacks, especially encryption and ransomware attacks.

In order to enhance cyber information security for information systems, the AIS has issued an official dispatch requesting specialised information security units of agencies, organisations and businesses to review and deploy network information security assurance for information systems under their management, prioritising monitoring and early warning solutions.

Units must complete inspection and assessment to ensure information security of information systems under their management before April 15.

In case of detecting risks, vulnerabilities or weaknesses, units must immediately implement corrective measures, especially for information systems that store and process personal information and personal data.

Related to tasks according to Directive 09/CT-TTg of the Prime Minister dated February 23 this year on compliance with legal regulations to strengthen information system security by level, units should ensure 100 per cent of operation information systems reach security level approved no later than September this year.

They must also fully implement the information security assurance plan according to the approved level proposal no later than December this year.

Units are recommended to organise effective, substantive, regular and continuous implementation of information security work according to the four-layer model to improve the capacity of the professional monitoring and protection; continuously and stably maintain connection and share information with the National Cyber Security Centre under the AIS; and prioritise the use of cyber information security products, solutions and services produced or technologically-mastered by Vietnamese enterprises.

To enhance network information security for information systems, units need to develop incident response plans for information systems under their management, and implement a plan to periodically back up the system and important data to allow prompt restoration when being attacked, report all incidents to the AIS; and participate in the national incident response network.

At the same time, units review and implement related tasks according to Directive 18/CT-TTg dated October 13, 2022 of the Prime Minister on promoting the implementation of response activities for cyber information security incidents in Việt Nam; and periodically perform threat hunting to promptly detect signs of system intrusion.

According to warnings from the AIS and related agencies and organisations, units must check and update information security patches for important systems; regularly and continuously use information security platforms developed and provided by the AIS to support agencies, organisations and businesses such as IRLab (Information Retrieval Lab) and DFLab (Digital Forensic Lab) platforms to receive early warnings and support in solving incidents. 

Crude oil the most traded commodity

The volume of transactions with the world at Mercantile Exchange of Việt Nam (MXV) in the first quarter this year rose by 9 per cent over the same period last year.

Notably, WTI crude oil was still the most traded product in Việt Nam in the first three months of the year, accounting for 17.4 per cent of the total trading volume at MXV. Ranking second is WTI micro crude oil, accounting for 12.4 per cent.

This item was suitable for both short-term scalping investors and investors who tend to hold positions in the medium and long term, said MXV.

However, soybean products, which are connected to the Chicago Mercantile Exchange, grew to rank third with a proportion of 11.9 per cent in the market recently.

In March alone, soybeans are the most traded commodity at MXV. Other related products such as soybean meal and soybean oil also recorded impressive transaction growth in the early part of this year.

Việt Nam currently is the third largest soybean meal importer and the ninth largest soybean importer in the world.

Experts predict that Việt Nam's soybean imports will grow steadily by 3-5 per cent each year. Therefore, the demand for price insurance of businesses and investment demand for this product is expected to continue to increase in the near future.

Data from MXV shows that Gia Cát Lợi Commodity Trading JSC continued to maintain the number 1 position in commodity trading brokerage market share in Việt Nam in the first quarter, accounting for 25.8 per cent of the entire market.

At second place, HCM City Commodity Trading JSC (HCT) is occupying 20 per cent of the brokerage market share.

Hữu Nghị International Investment Co Ltd (Finvest) ranked third with 15.3 per cent market share, followed by Hitech Finance JSC and Saigon Futures Inc.

With the forecast that the market would continue to grow strongly in the rest of the year, the race for the top five will be very exciting in the near future, said Nguyễn Ngọc Quỳnh, deputy general director of MXV.

Even members with long-term operations and large scale could still be upsurped by new members who operated methodically, effectively and stayed ahead of market trends, he said. 

VNDirect falls from top 3 brokerage market share after cyber attack

The Hồ Chí Minh Stock Exchange (HoSE) has just released the list of the top ten securities firms with the largest brokerage market share in the first quarter of 2024.

VPS Securities JSC (VPS) maintains its leading position in the securities brokerage market on HoSE, capturing a 20.3 per cent market share, a gain of 1.2 per cent from the end of the previous year, significantly distancing itself from its competitors.

SSI Securities Corporation (SSI) secures the second position with a market share of over 9.3 per cent, but experiencing a slight decrease of more than 1 per cent from 2023.

Remarkably, the third position, previously held by VNDirect Securities Corporation, has shifted to Techcom Securities (TCBS), which now holds a 6.6 per cent market share. 

As of the end of the first quarter, VNDirect's market share in the securities brokerage market on HoSE has dropped to just over 6 per cent, positioning it fourth on the list.

The fall can be attributed to a cyber attack on VNDirect's system, resulting in a complete halt of trading during the final week of March.

The VNDirect system was targeted and attacked on March 24. As a result, its entire system, including the website and application, was blocked, preventing hundreds of thousands of investors from placing orders or withdrawing funds.

It was not until the morning of April 1 that the securities company announced the reactivation of their system. However, many investors still reported numerous errors that prevented them from conducting trades normally.

Currently, the securities firm has assured that the stock trading flow on the trading board and the application has stabilised. The company will continue to enhance and gradually restore all trading channels within the system.

Vietcap Securities moved up to the sixth position, capturing a 5.57 per cent market share. It previously ranked eighth with 4.6 per cent. 

On the other hand, Mirae Asset Securities slipped to the eighth position with a 4.64 per cent of market share, while Hồ Chí Minh City Securities Corporation (5.9 per cent) and MB Securities (5 per cent) maintain their positions.

FPT Securities (FPTS) fell to tenth place, holding a 2.82 per cent of market share. It conceded the ninth position to Vietcombank Securities (VCBS), which claimed a 3.02 per cent market share. 

In the previous quarter, VCBS was not included in the top ten market share rankings.

KIS Securities no longer appears in the top ten market share rankings on HoSE. In the previous quarter, KIS held the tenth position with a 2.84 per cent of market share. 

Real estate business in HCM City shows signs of recovery in Q1

The real estate market in HCM City, which accounts for 15 per cent of the city’s economy, showed signs of recovery in the first quarter of the year.

Revenue of the real estate sector reached over VNĐ61 trillion in the first quarter, up 15.7 per cent year-on-year, according to a report by the HCM City Statistics Office.

In the first quarter of 2023, the revenue of the sector had decreased by over 10 per cent, it said.

The real estate business contributes nearly 23 per cent of the total retail sales of goods and services, and accounts for about 15 per cent of the city’s GRDP.

The real estate sector has encountered challenges in recent years but has shown signs of improvement in the first quarter of the year, with demand continuing to rise in the industrial and office rental segments.

In addition, foreign investments in real estate have started flowing into the city, positively impacting the industry’s stock prices.

According to a report by the HCM City Real Estate Association (HoREA), as of the beginning of this year, about 30 per cent of the more than 148 projects facing legal issues in the city have been resolved thanks to the efforts of authorised agencies at the central and city levels.

The market in the city is expected to recover in the second half of the year due to factors such as foreign direct investment inflows, consumer demand, and infrastructure development.

Another factor is the multiple policies implemented by the city government related to legal matters and interest rates, which have increased liquidity and project implementation progress.

The market is predicted to fully recover from 2025 onwards, driven by the Government’s policies and support from real estate enterprises.

However, experts have also pointed out that the housing market continues to face limited supply.

Only one housing project was approved for investment in the city in the first quarter. There have been no new projects launched for sale since the beginning of the year, according to a recent report by the Department of Construction.

Other hurdles facing the market include the scarcity of land, high prices, and problems related to legal issues in licensing projects, which particularly affect the townhouse market.

Lê Hoàng Châu, chairman of HoREA, recommended real estate firms should restructure their operations and invest in affordable housing to match people’s incomes.

Real estate businesses must consider reducing selling prices and providing more attractive promotional and after-sales policies to stimulate consumer demand.

The Southeast Asian nation is currently grappling with issues in its corporate bond markets, particularly in the real estate sector.

Numerous major developers have missed interest payment deadlines on both domestic and foreign bonds, leading to a standoff with international creditors.

The arrest of the chairwoman of Vạn Thịnh Phát Group over financial fraud at the end of 2022 was a turning point after which market confidence dropped.

The Government has formed a task force involving various ministries and agencies to address all the issues related to the markets.

U.S firms seek investment opportunities in Việt Nam

Deputy Prime Minister Lê Minh Khái, welcomed the interest of nearly 30 top U.S. companies across various sectors and emphasised the favorable investment environment for American businesses in Việt Nam.

Khái made his remarks in a recent business dialogue held by the US Chamber of Commerce (USCC) and the US-ASEAN Business Council (USABC) that there is a growing interest among U.S. companies to invest in Việt Nam.

The discussions between Vietnamese and American officials highlighted the strong desire of U.S. enterprises to tap into Vietnam's thriving market. Deputy Prime Minister Lê Minh Khái engaged with prominent American figures, including John Podesta, Jared Bernstein, and Nisha Biswa, showcasing Việt Nam's readiness to support U.S. business ventures.

The focus of the discussions revolved around collaboration in clean energy development, technology transfer, and financial support mechanisms. Việt Nam expressed its commitment to nurturing the semiconductor industry and facilitating expansion opportunities for leading U.S. corporations such as Intel, Dell, Apple, and Boeing.

Both sides recognised the significance of the Comprehensive Strategic Partnership and positioned Việt Nam as a prime investment destination with a dynamic economy and supportive government policies. There is optimism about deepening cooperation and realizing the full potential of bilateral trade and investment opportunities in the future.

In conclusion, the engagements between Việt Nam and the United States underscored the mutual interest in strengthening economic ties. Việt Nam is ready to welcome and support American businesses seeking investment opportunities in its vibrant and rapidly growing market. 

Hà Nội keen to remove difficulties for businesses in industrial zones and clusters

The capital city will make greater efforts to promptly remove difficulties for businesses operating in its industrial zones (IZs) and industrial clusters (IC) in the future, Chairman of the municipal People's Committee Trần Sỹ Thanh said.

During a conference in Hà Nội on Friday, Thanh said the city will always accompany the business community and continue to firmly and synchronously implement solutions to support businesses and improve the business and investment environment.

Top priority will be given to accelerating administrative reform to facilitate the business community, which is considered an important driving force in promoting the capital's socio-economic development, he added.

The committee's Deputy Chairman Nguyễn Mạnh Quyền said that local authorities are willing to organise dialogues with businesses, especially those in the city's IZs and ICs, to find the most optimal solutions to remove their obstacles.

He added that Hà Nội will continue to speed up the infrastructure construction of new IZs and ICs. As planned, the city will have up to five IZs by 2025 and 159 ICs by 2030.

During the conference, city leaders also said they would focus on solving the fragmented industrial development and small-scale IZs that fail to ensure environmental standards and fire and explosion prevention.

Accordingly, the city's ICs must have a minimum scale of 30ha and craft village clusters must have a minimum scale of 15ha so that they would have sufficient land funds for synchronous investment in technical infrastructure by the city's regulations and standards.

Relevant departments and branches are also required to regularly issue guiding documents to solve each problem of investors in the zones and shorten the time to resolve related administrative procedures.

During the conference, Phạm Thùy Trang, director of Hanel Mirolin JSC, an investor of Đại Thắng craft village cluster in Phú Xuyên District, said that most IC investors are small-sized enterprises. So, she petitioned the city's committee, sectors and departments to allow them to pay land rent once instead of paying annually.

Trang said a lump sum payment could be considered an accounted asset eligible for a mortgage for a bank loan. When businesses pay land rent annually, they can only mortgage assets on land.

Deputy General Director of the Urban Infrastructure Development Investment Corporation Nguyễn Hoàng Hải said his firm is developing a 78.15ha industrial cluster in Sóc Sơn District.

Though over 56ha of this cluster has been cleared, his firm now faces problems with site clearance for the remaining area that is entangled in a cemetery area. He suggests local authorities extend the project implementation time while petitioning Sóc Sơn District to relocate this cemetery.

At the conference, businesses also proposed to departments and branches to speed up the progress of construction permits and procedures for establishing industrial clusters and ensuring stable power supply.

Hà Nội currently has 10 operational IZs covering an area of over 1,340ha, according to the municipal Industry and Trade Department,

To date, the IZs have attracted 709 investment projects, including 300 foreign-invested projects worth nearly $6.7 billion, the department said.

Also, the city is home to 70 operational ICs which have lured about 3,864 investors, creating 60,000 jobs.

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