Several measures have been recommended to help Vietnamese exporters cope with dwindling demand in many markets around the world.

In the first half of 2022, countries took bold steps to resume economic and tourism activities after the COVID-19 pandemic was controlled, leading to a surge in consumption demand. Thanks to that, Vietnam recorded 187.2 billion USD in export revenue during the period, up 18% from a year earlier, statistics showed.

Since the third quarter of 2022, inflation has soared and even peaked in such key markets as the US and the EU compared to many previous years. Meanwhile, unimproved incomes and high unemployment rates have resulted in a sharp fall in consumption demand, especially for non-essential goods that are among Vietnam’s key exports.

In 2023, though counter-measures against inflation have been taken for a certain period of time in many countries, inflation is still high and their economies have faced risks of recession.

Besides, China’s post-pandemic reopening has also created a big source of supply, causing a strong competition pressure on Vietnamese goods because the two countries’ export structures are relatively similar.

Complex developments of the Russia - Ukraine conflict have also prolonged disrruptions to global supply chains, which have kept input material prices high.

All these problems have caused order shortages, forcing many exporters to reduce or even halt production.

Tran Thanh Hai, Deputy Director of the Foreign Trade Agency under the Ministry of Industry and Trade, said that export was highly vibrant and posted double-digit growth rates in 2021 and 2022. However, growth has slowed down this year due to inflation, recession, and lower purchasing power in many traditional markets.

According to the General Department of Vietnam Customs, foreign trade totalled 316 billion USD in the first six months of 2023.

In June alone, exports were estimated at 29.3 billion USD, rising 4.5% month on month. This was the second consecutive month overseas shipments had increased after a long decline thanks to bolstered trade promotion activities. However, the June revenue still dropped 11.4% year on year.

The six-month export value decreased 12.1% from the same period last year to 164.45 billion USD. Analysts pointed out that difficulties may linger on through the end of 2023, even until 2024.

Therefore, enterprises should organise production activities flexibly, strive to fulfill small and difficult orders, make in-depth investment instead of focusing on expansion programmes.

As global consumers are still concerned about economic prospects, enterprises need to keep a close watch on market developments to flexibly and appropriately respond to any changes, and cut unnecessary expenses, analysts said.

On the other hand, authorities should avoid issuing regulations and policies that many add difficulties to businesses, they noted.

Vietnam targets 393-394 billion USD in export revenue and 6% in year-on-year export growth for 2023.

To that end, Minister of Industry and Trade Nguyen Hong Dien stated that aside from tapping into new markets, the ministry will continue capitalising on free trade agreements (FTAs).

It will step up digital transformation in the grating of certificates of origin to help firms make use of the FTAs; facilitate logistics services to reduce costs and improve Vietnamese goods’ competitiveness; and boost foreign trade via cross-border e-commerce.

In particular, it will hold monthly meetings between its agencies, Vietnamese trade offices abroad and localities, associations, businesses, and related ministries and sectors to update firms and associations about marke-related information so as to fuel overseas shipments, according to Dien.

Vietnam set to become Southeast Asia renewable energy leader: conference

With its abundant resources and soaring demand for clean energy, Vietnam is poised to become a regional leader in renewable energy, heard a recent conference organised by Forbes Vietnam.

Ha Dang Son, Deputy Director of Vietnam Low Emission Energy Programme II (V-LEEP II), highlighted the country’s attractive prospects for local and foreign investors in renewables.

“Vietnam’s vast renewable resources, growing energy demand and supportive governmental policies are major contributing factors.”

Its ample solar resources offer favourable conditions for investors as do its extensive coastline and favourable wind conditions, he said.

Its well-established agricultural sector generates substantial biomass waste, which can be utilised for energy generation, Son said.

The Government approved in May a power development master plan that prioritises renewable energy, he said.

The plan includes an ambitious target to generate 20% of the country’s electricity from renewable sources by 2030.

Experts pointed out the country requires 135 billion USD for power plant and transmission grid development by 2030, and over 500 billion USD by 2050.

They highlighted the need for foreign investment, green credit and domestic private capital to achieve the transformation towards a sustainable energy model.

They also spoke about the major challenges faced by investors such as uncertainty and inconsistency in the Government’s renewable energy policies and regulations.

Trinh Quoc Vu, CEO of a HCM City-based renewable energy company, said the shortage of infrastructure to accommodate the rising renewable energy capacity is another obstacle.

Dang Quoc Toan, Chairman and General Director of the Asia Petroleum Energy Corporation, said the lack of transparency in the bidding for renewable energy projects is also a critical issue.

Financing remains a challenge despite the decreasing costs of renewable energy technologies, he added.

The complex and time-consuming land acquisition process in Vietnam is another hurdle for investors in renewable energy projects.

The shortage of skilled professionals and limited domestic manufacturing capabilities escalate project costs and timelines in Vietnam since developing large-scale renewable energy projects requires skilled labour and robust supply chain networks.

Supa Waisayarat, Vietnam country manager for Thailand’s Super Energy Corporation, said investors should stay updated on government policies, regulations and incentives related to renewable energy in Vietnam.

Measures taken to curb cross-border poultry smuggling

The animal health sector has been strengthening animal and animal product quarantine and inspection to early detect avian influenza outbreaks and prevent the spread of the disease.

The Ministry of Agriculture and Rural Development has coordinated with localities, ministries, and agencies to handle cases of illegal cross-order transportation of poultry and poultry products into Vietnam.

Previously, the ministry asked the People's Committees of provinces and centrally-run cities to direct departments, agencies, and local authorities at all levels to organise the synchronous implementation of solutions on disease prevention and control for the period of 2019-2025.

The ministry also suggested provinces and cities strengthen inspection and supervision, especially at border gates, crossings, seaports, and waterways to promptly detect and handle violations relating to illegal trading, slaughtering, and transporting poultry and poultry products into Vietnam, especially in the southern border provinces.

Illegally-transported animals and animal products will be destroyed immediately.

The ministry has assigned the Department of Animal Health and related units to organise inspections and instruct localities in disease prevention and control; proactively coordinate with international organisations and other countries in disease prevention and control.

Currently, there are 463 concentrated slaughterhouses and over 24,000 small-sized establishments that failed to meet requirements in terms of facilities, finance, and food safety.

French firms eye maritime economic cooperation with Vietnam

A seminar on boosting economic cooperation between French enterprises and Vietnam was held in Lorient city of the Bretagne region on June 30 by the Chamber of Commerce of Industry (CCI) of Morbihan province with the participation of representatives from the Vietnamese Embassy and Ministry of Trade and Investment Planning in France as well as local businesses.

Speaking at the event, Chairman of the Morbihan CCI Philippe Rouault expressed his delight at the working trip to the province by Vietnamese Ambassador Dinh Toan Thang, especially when the two countries are celebrating the 50th founding anniversary of Vietnam-France diplomatic relations and the 10th anniversary of their strategic partnership.

Rouault also introduced economic cooperation potential of Morbihan province, especially in the field of marine economy and management, and marine environment protection.

He said that many businesses in the province in particular and the region in general are eyeing to develop operations in Vietnam and Southeast Asia, adding that the seminar was an opportunity for the two sides to better understand the situation and potential of cooperation between the two sides.

For his part, Thang briefed participants on the situation of the Vietnamese economy, one of the most dynamic economies in Southeast Asia and the Asia-Pacific region with many bilateral and multilateral free trade agreements with countries and regions around the world.
         
The ambassador affirmed that France is one of Vietnam’s important economic partners in Europe in term of trade and investment, and hoped that Morbihan's businesses will promote economic cooperation and investment projects in Vietnam in the coming time.

At the seminar, French businesses introduced projects that are cooperating with Vietnamese partners as well as orientations and wishes to cooperate with Vietnam in the near future in a number of fields such as seabed and coastal survey, sea water treatment to produce fresh water for offshore fishing boats or islands lacking fresh water, among others.

On the occasion of the 50th anniversary of diplomatic relations, the Vietnamese Embassy in France has carried out many activities to further promote economic, trade and investment relations between the two sides.

After the seminar, the delegation of the Vietnamese Embassy visited a number of local businesses that are carrying out cooperation projects with Vietnamese partners.

Cuba wants to exchange trade union experience in oil and gas sector with Vietnam

A delegation of the Central Union of Cuban Workers (CTC), led by its Secretary General Ulises Guilarte de Nacimiento, had working sessions with the Vietnam National Union of Oil and Gas Workers and the Russia-Vietnam oil and gas joint venture Vietsovpetro in the southern province of Ba Ria-Vung Tau on July 1.

At these meetings, Ulises Guilarte de Nacimiento, who is also Vice President of the World Federation of Trade Unions, said the working trip to Ba Ria-Vung Tau held significant meaning in tightening the friendship and cooperation between the CTC and the Vietnam General Confederation of Labour (VGCL) and serves as an opportunity for the CTC to learn from the experience of the trade unions given the current process of renovation and development.

He noted the delegation’s visit to Vietsovpetro was part of a cooperation agreement signed between the CTC and VGCL with the aim of enhancing and strengthening the solidarity between the two organisations and the two working classes of Cuba and Vietnam.

The official said after concluding this visit, the delegation will have discussions with the VGCL Chairman about new areas of cooperation involving experience sharing and personnel training in the oil and gas industry.

He expressed his desire to welcome a Vietsovpetro delegation to visit Cuba soon and provide advice on oil exploration and drilling for Cuba.

Speaking at the working sessions, VGCL Chairman Nguyen Dinh Khang emphasised that the oil and gas industry is a spearhead sector in Vietnam's economy.

Vietnam is willing to share information about the activities of the Vietnam National Union of Oil and Gas Workers with the trade union of the Cuban oil and gas industry, he said.

French firms eye maritime economic cooperation with Vietnam

A seminar on boosting economic cooperation between French enterprises and Vietnam was held in Lorient city of the Bretagne region on June 30 by the Chamber of Commerce of Industry (CCI) of Morbihan province with the participation of representatives from the Vietnamese Embassy and Ministry of Trade and Investment Planning in France as well as local businesses.

Speaking at the event, Chairman of the Morbihan CCI Philippe Rouault expressed his delight at the working trip to the province by Vietnamese Ambassador Dinh Toan Thang, especially when the two countries are celebrating the 50th founding anniversary of Vietnam-France diplomatic relations and the 10th anniversary of their strategic partnership.

Rouault also introduced economic cooperation potential of Morbihan province, especially in the field of marine economy and management, and marine environment protection.

He said that many businesses in the province in particular and the region in general are eyeing to develop operations in Vietnam and Southeast Asia, adding that the seminar was an opportunity for the two sides to better understand the situation and potential of cooperation between the two sides.

For his part, Thang briefed participants on the situation of the Vietnamese economy, one of the most dynamic economies in Southeast Asia and the Asia-Pacific region with many bilateral and multilateral free trade agreements with countries and regions around the world.
         
The ambassador affirmed that France is one of Vietnam’s important economic partners in Europe in term of trade and investment, and hoped that Morbihan's businesses will promote economic cooperation and investment projects in Vietnam in the coming time.

At the seminar, French businesses introduced projects that are cooperating with Vietnamese partners as well as orientations and wishes to cooperate with Vietnam in the near future in a number of fields such as seabed and coastal survey, sea water treatment to produce fresh water for offshore fishing boats or islands lacking fresh water, among others.

On the occasion of the 50th anniversary of diplomatic relations, the Vietnamese Embassy in France has carried out many activities to further promote economic, trade and investment relations between the two sides.

After the seminar, the delegation of the Vietnamese Embassy visited a number of local businesses that are carrying out cooperation projects with Vietnamese partners.

Thua Thien-Hue welcomes first air passengers from China’s Kunming City

Phu Bai International Airport received the first charter flight bringing 230 Chinese tourists from Kunming City to the central province of Thua Thien-Hue on July 2.      

They are scheduled to tour around several places in Thua Thien-Hue province, including the Complex of Hue Monuments which was honoured as a World Cultural Heritage by UNESCO in 1993.

In addition to Hue City's must-see attractions, other tourist sites in neighbouring localities such as Da Nang and Quang Nam attract Chinese tourists during their six-day trip.

Budget carrier VietJet Air is set to operate charter flights from Chinese cities to Phu Bai International Airport by October this year. During the period, there will be around 6 flights to per month.

Thua Thien Hue province welcomed more than 1.6 million travelers, including 567,000 foreign visitors, in the first half of the year, earning a total tourism revenue of roughly VND3.5 trillion.

The provincial tourism industry is therefore aiming to receive 3.5 million visitors this year, of which domestic tourists account for around 70%- 80% of the overall figure, with a total tourism revenue, reaching about between VND6 trillion and VND7 trillion.

Logistic system associated with seaports, airports to be prioritised in central region

The Ministry of Transport (MoT) has called for more investments to be prioritised for the logistic system in the north central and central coast regions.

This is part of the MoT’s recently-issued plan on developing modern, comprehensive and cost-effective transport that also guarantees defence and security for the north central and central coast regions by 2030, with a vision to 2045.

Under the plan, priority will be given to developing a national and international logistic system associated with seaports, airports, international border gates, key economic corridors and inter-regional trade routes in 14 provinces and cities, including Thanh Hóa, Nghệ An, Hà Tĩnh, Quảng Bình, Quảng Trị, Thừa Thiên-Huế, Đà Nẵng, Quảng Nam and Quảng Ngãi.

In addition to the construction of the two airports in the central provinces of Quảng Trị and Bình Thuận, the ministry will upgrade nine other airports already operational in the region.

A new logistics centre will be established to facilitate freight transportation activities at Đà Nẵng International Airport and Chu Lai Airport.

The ministry also plans to develop logistics hubs at airports with an annual transportation demand exceeding 250,000 tonnes.

Enterprises will be encouraged to increase investment in container transport, modernise transport vehicles and cargo handling equipment and improve the service quality.

To achieve the above-mentioned goals, the ministry will focus on perfecting the system of legal documents related to construction investment in the form of public-private partnership, application of information technology and creating a full legal environment for the management and development of the transport market.

Priority will be given to the development of multi-modal transport on corridors, especially the North-South corridor and those linking to international seaports to increase the volume of goods transported and reduce costs. The development of the inland port system will be stepped up to facilitate the connection between modes of transport and logistics services.

The MoT will promote the linkage of transport services between modes of transport; creating favourable conditions for forming large-scale transport enterprises capable of joining domestic-international transport chains.

Regarding transportation services, the ministry will focus on improving the efficiency of transport and logistics exchanges, facilitating the connection between transport units and goods owners as well as enhancing the transparency of the transport market.

It will mobilise all resources and prioritise investment in upgrading essential infrastructure works to attract more transport enterprises.

The MoT will boost applying information technology in all fields of the transport sector as well as transport management and operation. 

Over $136.65 million of public investment from foreign sources disbursed in H1 
 
More than 3.22 trillion VND (136.65 million USD) of public investment capital from foreign sources was disbursed in the first six months of this year, completing 27.2% of the target set for the whole year, according to Truong Hung Long, Director of the Department of Debt Management and External Finance under the Ministry of Finance (MoF).

Long said that over 11.85 trillion VND of public investment capital from foreign sources has been allocated to ministries and sectors this year.

The Vietnam Academy of Science and Technology, the Ministry of Transport and the Ministry of Agriculture and Rural Development led all ministries and agencies in the disbursement rate with 47.42%, 30.97% and 30.56%, respectively.

Meanwhile, the amount of capital left from 2022 is 1.04 trillion VND. Currently, ministries and sector have started to disburse the amount.

Long explained that difficulties in land clearance and resettlement as well as investment procedures are major reasons behind the slow disbursement of public investment capital from foreign sources.

According to the MoF, in order to speed up the disbursement of the capital, it has proposed a number of measures to the Government and the Prime Minister, while coordinating with relevant agencies to speed up the disbursement of public investment capital, including the amount sourced from foreign loans.

The MoF advised ministries and agencies to review the amount allocated to particular projects and keep a close watch on their progress, thus focusing capital on effective projects.

Six-month ODA disbursement rate in localities remains low

The disbursement of public investment funded by official development assistance (ODA) in localities in the first six months of this year has reached only 7.6% of the year’s target, according to the Ministry of Finance (MoF).

Speaking at a conference in Hanoi on June 28, Truong Hung Long, Director of the Department of Debt Management and External Finance under the Ministry of Finance, said that the disbursement rate of ODA-funded public investment remains very low while a total of over 34.5 trillion VND (1.5 billion USD) was allocated to provinces and centrally-run cities this year.

Just 8 out of 50 provinces and cities had a disbursement rate of over 15% while 13 localities have yet to disburse any capital they were allocated.

According to Long, the slow disbursement was caused by the adjustments of investment policies, projects, extension of disbursement, extension of project implementation term, and use of surplus capital.

Meanwhile, other public investment projects using ODA have problems in bidding or commercial contracts, land clearance, design adjustment, fluctuations in raw material prices, and a shortage of workers.

To speed up the disbursement, according to the Ministry of Finance, the Ministry of Construction should study and propose solutions to handle problems in design appraisal to ensure the progress of projects. The Ministry of Health was called on to find solutions to handling problems relating to medical equipment purchase and use.

For its part, the Ministry of Finance will implement measures such as ensuring the correct processing time for capital withdrawal applications, removing difficulties in public investment, and discussing with donors to solve their problems.

In addition, localities need to conduct a detailed and specific review and assessment of the disbursement ability of each project, and transfer capital from projects with slow disbursement progress to projects with better disbursement.

Handbook on digital transformation for SMEs introduced

A handbook on digital transformation for small- and medium-sized enterprises (SMEs) in the food processing and distribution sector was introduced at a press conference held in Hanoi on June 28.

The event was jointly held by the Department of Business Development under the Ministry of Planning and Investment (MPI), the Centre for Digital Transformation and Agricultural Statistics under the Ministry of Agriculture and Rural Development (MARD) and the United States Agency for International Development (USAID) in Vietnam as part of a programme to support enterprises in digital transformation for the period of 2021-2025.

Speaking at the event, Nguyen Duc Trung, Deputy Director of the Department of Business Development, said that in the context of digital era, the digital economy and the fourth Industrial Revolution are taking place strongly. Innovation and digital transformation is considered as an effective way to create new impulses and values for the country’s economic development, as well as improving the competitiveness of enterprises.

Trung emphasised that digital transformation has become a pressing issue, particularly in the post COVID-19 period as the pandemic's impacts have drastically changed people's habits as well as the whole society, requiring organisations, individuals and businesses to adapt to.

The programme to support businesses in digital transformation in the 2021-2025 period strives to enhance awareness of digital transformation among all businesses; at least 100,000 enterprises receive technical support on digital transformation; at least 100 supported businesses are typical successful digital transformation models; establish a network of experts including at least 100 organisations and individuals to consult, provide solutions to promote digital transformation for businesses, and support digital platform development.

According to the 2022 Enterprise Digital Transformation Annual Report of the Department of Business Development, digital transformation has shown signs of increasing and many businesses have set aside specific budgets for digital transformation.

Ministry urges effort to hasten disbursement of foreign-sourced public investment

The Ministry of Finance has urged drastic efforts to speed up the disbursement of public investment sourced from foreign borrowings in the remaining months of this year.

The disbursement of foreign–sourced public investment remained slow in the first half of this year, the ministry said, citing statistics that only around VND3.2 trillion was disbursed in the period, equivalent to 27.2 per cent of the planned amount.

To date, only 5 out of 11 ministries and agencies which were allocated with foreign-sourced public investment managed to disburse some of the capital, including the Viet Nam Academy of Science and Technology, the Ministry of Transport, the Ministry of Agriculture and Rural Development, the Ministry of Natural Resources and Environment and the Ministry of Education and Training.

Truong Hung Long, Director of the Department of Debt Management and External Finance, said at the ministry's meeting about speeding up foreign-sourced public investment yesterday that although the disbursement result was better than in 2021 and 2022, the rate remained disappointing.

There were a number of causes for the slow disbursement of public investment sourced from foreign borrowings, including slow site clearance, incompletion of design consultancy contracts, and disagreements between investors and contractors about pricing and volume.

In addition, the slow adjustment of investment policies and loan agreements also caused delays in signing contracts, Long pointed out. Another problem was the slow response of donors about bidding documents and related documents, which fell under the responsibility of the project management boards, the project management agencies and the donors, he said.

Being one among three key players in public investment disbursement, the Ministry of Transport said that the ministry disbursed a sum worth more than VND2 trillion of foreign–sourced public investment in the first half of this year, or 40.7 per cent of the plan, to 14 out of 19 foreign–funded projects.

During the implementation, the ministry encountered problems related to site clearance, land purpose conversion and slow response times from donors.

The Ministry of Agriculture and Rural Development, which disbursed around VND576 billion in public investment sourced from foreign borrowing as of June 30, or 32 per cent, said that the disbursement faced a problem of rising prices of raw materials which affected construction cost estimations.

The ministry said that coordination between central and local agencies must be enhanced to speed up the evaluation and implementation of projects.

Drastic efforts are required from the Government, ministries, agencies and localities to achieve the goal of public investment disbursement this year, the Ministry of Finance said.

Long said that the Ministry of Finance would keep a close watch to solve problems that were hindering the disbursement of public investment.

He added that the application of information technology should be increased in the disbursement of foreign–sourced public investment to speed up the process and ensure efficiency.

Public investment should be focused on projects with good progress and that are in priority fields. Projects with prolonged problems which remained unsolved should have funds transferred to other projects with higher readiness. 

Number of new businesses hits record high in June

Viet Nam saw a record-high number of new business registrations, including those resuming operations, in June, according to the Department for Business Registration Management under the Ministry of Planning and Investment.

This is a positive signal seeing as firms are still facing many difficulties in production and business activities, the department said.

There were 13,904 newly established enterprises in June 2023, an increase of 4.8 per cent over the same period in 2022. A further 7,098 enterprises resumed their operations in June, an increase of 215 per cent over the same period in 2022.

In the first six months of the year, there were about 113,000 newly established and resumed enterprises. Thus, each month about 19,000 enterprises were set up or resumed operations.

Meanwhile, about 100,000 enterprises withdrew from the market during the first six months, including 12,333 enterprises in June.

The average number of enterprises withdrawing from the market reached 16,600 per month. This number decreased compared to 17,600 enterprises each month during the first five months and 19,000 units each month during the first four months.

The department reported that the registered capital of newly established enterprises continued to decrease during the first six months.

The total registered capital of newly established enterprises was just VND707,457 billion, or 75-80 per cent of the total registered capital in the same period of the years affected by the Covid-19 pandemic. The figure was VND942,648 billion in 2021 and 882,122 billion in 2022.

The average registered capital per new enterprise in the first six months of 2023 only reached VND9.3 billion, the lowest level for the first six months of the year since 2017.

During the six months, total capital that was registered to increase by operating enterprises also decreased by 48.1 per cent over the same period in 2022.

The department also said that the real estate businesses continued to face the most difficulty in the first six months of the year.

Both numbers of enterprises entering the market and the registered capital of the new enterprises in the real estate sector decreased sharply compared to the same period last year at 58.9 per cent and 54.1 per cent, respectively.

The number of real estate businesses withdrawing from the market increased by 40.4 per cent over the same period in 2022, the highest rate among 17 economic sectors.

This was in contrast to the impressive growth in the number of new real estate businesses entering the market at 44.8 per cent in the first six months of 2021 compared to 2020. 

Vietnamese dried chillies fail South Korean pesticide residue levels

Several batches of Vietnamese dried chilli have been recalled in South Korea after they exceeded pesticide residues.

The batches produced by Long Thanh Ltd. Co. headquartered in the northern province of Hai Duong have a tricyclazole content of 0.02-0.04 mg/kg which exceeds South Korea’s permitted level of 0.01 mg/kg.  

The Plant Protection Department under the Ministry of Agriculture and Rural Development has requested Long Thanh Ltd. Co. to trace the affected batches and review the entire process of production, collection and export.

The Hai Duong Department of Agriculture and Rural Development has also been asked to participate in the investigation.

The Plant Protection Department also said they had not yet received any official information regarding South Korea's ban or import suspension of Vietnamese chilli products, as circulated on social media.

In March, the Ministry of Agriculture and Rural Development informed local departments of agriculture and rural development and exporters about South Korea’s chilli import criteria.

Individuals and businesses in Vietnam have to have pesticide residue test results approved by authorised laboratories under the South Korean Ministry of Food and Drug Safety. Applications run from March 31st, 2023 to March 30th, 2024.

THACO to issue new shares at 10% to strategic investors
 
On June 28, THACO Vice Chairman Nguyen Hung Minh announced that THACO and its financial consultant, Ho Chi Minh City Securities Corporation (HSC) are working on a plan to issue new shares equivalent to a 10% stake of THACO AUTO (THACO’s automotive sub-holding) to strategic investors.

On the other hand, THACO’s employee stock ownership plan (ESOP) in 2018 will also be converted into shares to transform THACO AUTO into a public company in preparation for it to be listed on the stock market within the next three years.

The capital raised from this share issue will be used to serve THACO AUTO’s production and business operations, its retail network expansion and product development in the near future.

Responding to the information that THACO has plans for an auto factory in Vietnam’s northern province of Hung Yen, Mr. Minh denied, saying “The information is incorrect as all manufacturing activities of THACO AUTO only take place at our industrial park in Chu Lai in Quang Nam Province.”

At the moment, Vietnamese and foreign investors are working with THACO to negotiate the share issuance deal. The share issue is expected to be completed this year.

Green logistics crucial in food sector: Experts

Green logistics is a growing trend that is expected to become a requirement in the supply chain of food sector, heard a conference themed “Green logistics – from trend to practice and its role in the food production and export” held in Ho Chi Minh City on June 28.

Nguyen Tuan, Vice Director of the HCM City Investment and Trade Promotion Centre (ITPC), said that this year, the logistics sector is facing many difficulties from high inflation pressure and economic crisis in major economies as well as the disruption of supply chains, which affect import-export and logistics activities.

Greening up trade and logistic activities is becoming a crucial need, leading to higher standards and cost for trade and logistics activities.

Tuan said that currently, logistics is an important link to "green up" the supply chain towards a sustainable development roadmap. In the context that consumers increasingly prefer environmentally friendly products and the trend of transition to a green economy is taking place globally, green logistics has received greater attention from businesses, he held.

Tuan said that the greening up of the logistics sector and the diversification of measures to green up the sector in all aspects will help businesses better meet requirements in environmental protection, enhancing their competitiveness and secure sustainable growth.

Ton That Tu, a logistics expert, said that there remain many challenges for Vietnam to promote green logistics. He noted that 74.4% of the total goods is being transported by roads, and the switching of transportation methods to railway and waterway has been slow.

Meanwhile, the majority of logistics businesses in Vietnam are of small and medium sizes without close coordination and standardisation of logistics services. Many of them have yet to have necessary capacity and technologies to provide high quality services, he said.

Tu held that for the food sector, green logistics can help improve food safety and quality, and reduce cost, which is crucial for Vietnam currently.

Experts advised the logistics sector of Vietnam to design policies to increase investment to the infrastructure system to upgrade roads, railways, airports and seaports to facilitate goods transport.

Relevant ministries and agencies should also simplify administrative procedures to remove obstacle for logistics forms and encourage them to renovate their operation towards becoming more friendly to the environment, they said.

They also advised logistics and food firms to be more active in digital transformation and apply new technologies in their operations.

Consumer price index rises 3.29% in H1

Consumer price index (CPI) in the first six months of this year increased 3.29% year on year, while core inflation was estimated to rise 4.74%, said Nguyen Thi Huong, General Director of the General Statistics Office (GSO), at a press conference on June 29.

The official said that in June alone, CPI rose 0.27% over that of May and 2% over the same period last year, mostly due to an increase in the electricity retail prices. In the month, rise was seen in the prices of 10 groups of goods, led by food and catering services at 0.57%. Only post and telecommunications saw a decrease in prices, she said.

In the second quarter of this year, CPI was up 2.41% year on year, with a strong rise in prices of construction materials at 6.03% and education at 5.81%. In the period, the fall was recorded in prices of two groups – post and telecommunications (0.47%) and transport (8.34%).

In the first half of 2023, education-related prices rose 7.95% year on year, while the prices of housing and construction materials also increased 6.6%.

Upturn was also seen in the prices of cultural, entertainment and tourism services at 3.47% due to high demands after the COVID-19 pandemic was controlled, along with prices of food and foodstuff at 3.6% due to an increase in demands during the festive season in the beginning of the year. The 3% increase in electricity prices from May 4 also pushed the prices of the product in the people's daily life consumption by 3.12%, contributing 0.1 percentage point to the CPI rise in the first six months of this year.

Meanwhile, factors contributing to the slowing down of the CPI rise in the January-June period was a fall in the prices of fuels and post and telecommunication services.

According to the GSO, core inflation in June increase 0.24% over May and 4.33% compared to the same period last year, pushing the inflation rate in the first six months of this year to 4.74%.

VN to learn from Australia in trade remedies

VN is eager to learn from Australia about trade remedies as the country is a relative newcomer to the field.

That was the remark made by Trịnh Anh Tuấn, General Director of the Trade Remedies Authority of Việt Nam, at the workshop 'Introduction of Vietnam's and Australia's trade remedy systems for importers and exporters' held in Hà Nội on Wednesday.

Tuấn said Việt Nam did not have much experience in trade remedies because it was not until 2015 that the country began to conduct trade defence investigations to counteract unfair commercial practices.

Meanwhile, Australia has been around a lot longer with more than 400 investigations since 1995, having much experience to share in this regard.

"Việt Nam appreciates every single opportunity to learn from trade-savvy countries, such as Australia," said Tuấn.

The general director also revealed that Vietnamese exporters had been subject to 231 investigations to date, of which Australia initiated 18. Those incidents caused severe financial damages to the companies involved.

He said the growing entry of foreign goods into Vietnamese markets, which was facilitated by the country's favourable trade policy and the removal of trade barriers under FTAs, had exposed the need for more trade measures to control the commercial flow and prevent unfair practices. 

Andrew Goledzinowski, Australia's Ambassador to Việt Nam, said the bilateral relationship had made significant progress over the past years, with close economic ties at its heart.

He said Việt Nam's steady growth after the COVID-19 pandemic had been a testament to its effort in restructuring the economy in the light of the Fourth Industrial Revolution.

The year 2023 would mark the 50th anniversary of the Việt Nam-Australia diplomatic relationship, which is an opportunity for both countries to bring the economic tie to a new height.  

It is also worth noting that Việt Nam and Australia both have been admitted to three shared FTAs, namely the ASEAN-Australia-New Zealand Free Trade Agreement, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and the Regional Comprehensive Economic Partnership. 

Việt Nam remains the 10th largest trade partners of Austrlia while Australia the 7th largest to Việt Nam. In 2022, bilateral trade hit US$15.7 billion, up 27 per cent year by year.

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