The Vietnam Oil and Gas Group (PetroVietnam) continues topping the PROFIT500 list, which names the 500 most profitable enterprises in Vietnam in 2024.

This is the sixth consecutive year the group has secured its leading position, affirming its operation efficacy over the past years with sound financial health, and flexible management capacity recognised by reputable domestic and international organisations.

Petrovietnam maintained stable and effective operations during January-July as most of its production and financial criteria exceeded the set plans by 4.4-75%, and were better than the results recorded in the same time last year.

During the seven-month span, the group’s total revenue was estimated at 567.4 trillion VND (over 23 billion USD), 31% higher than the set target and up 14% year-on-year. It contributed 84.6 trillion VND to the state budget, surpassing the plan by 54%, and up 8% against the same time last year. Meanwhile, its profit before tax was 29.6 trillion VND, exceeding the goal by 75%.

Other firms in the top ten most profitable list are military-run telecom service provider Viettel, Samsung Electronics Vietnam Thai Nguyen, Vietcombank, BIDV, MBBank, Agribank, VietinBank, Techcombank, and Petrovietnam Exploration Production Corporation.

Several subsidiaries of Petrovietnam were also named in the list, including Petrovietnam Gas Joint Stock Corporation (PV Gas) at 12th place, Binh Son Refining and Petrochemical JSC 19th, Petrovietnam Transportation Corporation 85th, and Petrovietnam Power Corporation 90th.

Launched by the Vietnam Report and the online newspaper Vietnamnet, the PROFIT500 list has recognised the contributions to the nation made by leading corporations over the past eight years, helping introduce and promote the Vietnamese brands among the domestic and international business community, and investors.

A ceremony to announce and honour the firms will be held in Hanoi in October./.

Lang Son applies effective measures to deal with congestions at border gates

Authorities in border gates in the northern province of Lang Son have applied various measures to prevent congestions in the gates amid increasing volume of vehicles carrying import-export products.

From September 15 afternoon, all empty vehicles arriving Tan Thanh border gate to receive imported goods have been regulated to the non-tariff zone for parking before moving to Bao Nguyen parking area for cargo loading.

Currently, Tan Thanh border gate handles 280 empty vehicles and 240 vehicles transporting export goods each day.

Nguyen Tien Cong, a driver transporting import goods from Tan Thanh to the domestic market said that all drivers are happy with the new regulation as it helps ease congestion, particularly when they can park in the non-tariff zone free of charge.

In Huu Nghi border gate, vehicles carrying goods for exporting through the gate have also been allowed to park in the non-tariff zone since September 10 until further notice.

The none-tariff zone is located in Tan My commune, Van Lang district, about 6 km from Tan Thanh border gate and about 8 km from Huu Nghi international border gate. The designation of the zone as the parking space for empty vehicles and vehicles with export goods has facilitated the movement of vehicles carrying import and export goods in and out of the customs clearance areas, minimising the risk of insecurity and disorder in the border gate area.

Besides, Lang Son authorities have taken initiative in requesting the Chinese side to prolong the time for customs clearance until 8pm (Vietnamese time) when the number of vehicles going through the gates surges.

As it is now the harvest season of many fruits and agricultural products, the number of vehicles transporting goods to the border gates in Lang Son has increased sharply with about 1,300 vehicles carrying imported and exported goods going through customs clearance each day and even 1,450 on peak days./.

IAPSIT International Sugar Conference kicks off in Binh Dinh

The 8th IAPSIT International Sugar Conference convened on September 16 in Quy Nhon city in the central coastal province of Binh Dinh, bringing together nearly 200 delegates from India, China, Thailand, Fiji, the Philippines, the US, and Vietnam.

Lasting four days, the event was co-organised by the “Rencontres du Vietnam” Association, the International Centre for Interdisciplinary Science and Education (ICISE), the International Association of Professionals in Sugar and Integrated Technologies (IAPSIT), and the Society for Sugar Research and Promotion (SSRP).

Participating delegates are set to discuss issues relating to the sustainability of the sugarcane industry in the Association of Southeast Asian Nations (ASEAN) region and the imminent risks posed by climate change and erratic weather patterns. Discussions will centre around leveraging technological innovations in fields such as bioenergy, green harvesting, carbon storage, climate-resilient crop varieties, and 4th-industrial-revolution-induced agricultural technologies. According to the organisers, the conference aims to propose bio-refinery models as a sustainable direction for the industry.

Speaking at the event, Nguyen Huu Ha, Deputy Director of the Binh Dinh Department of Science and Technology, noted that the conference provides a valuable opportunity for domestic and international scientists and businesses to exchange experiences, update the latest sci-tech advances, and explore cooperation and market expansion opportunities.

SSRP President Dr. Sushil Solomon highlighted that organising the conference represents a significant effort to foster comprehensive technological cooperation.

He said agriculture plays a vital role in ASEAN nations, with eight out of the 10 members relying heavily on farming and relating activities. Sugarcane, in particular, is one of the region's key crops, covering nearly 2.8 million hectares and contributing around 10% of the world’s sugar production.

Solomon also shared insights into green technologies in sugarcane management, precision agriculture, integrated pest and disease management, crop monitoring, and the use of organic and biological fertilisers, among others. These advancements, he said, could reduce the environmental impact and boost crop productivity, especially in countries like Vietnam, the Philippines, Indonesia, Cambodia, and Myanmar.

He stated that by promoting cooperation, embracing technological advances, and prioritising sustainability, ASEAN states can maximise the potential of their sugar industries while maintaining high productivity levels, thus making significant contributions to regional economic development and food security./.

Industrial innovation to boost sustainable growth for southeastern region

Industrial production is supporting the steady growth of the southeastern region, with Ho Chi Minh City moving towards high-tech industries and Binh Duong province expanding its role as a key industrial centre.

In the southeast region, local authorities are using various strategies to facilitate industrial development, concentrating on new technologies, green materials and energy, and sustainable growth.

The People's Committee of HCM City said that the Industrial Production Index (IIP) increased by 6.4% in the first eight months of 2024 compared to the same period last year, with the mining sector growing by 51.4%, manufacturing by 6.1%, and electricity production and distribution by 6.7%.

In the same period, the manufacturing sector’s consumption index increased by 9.7%.

Significant growth was seen in rubber and plastic products, which rose by 41.2%, wood processing and wood-based products jumped 34.9%, and chemical products increased 18.9%.

However, the contribution of industry has been steadily decreasing, now making up only 17.8% of the city’s gross regional domestic product (GRDP), while the service sector accounts for 65.6% of the city’s economy.

Experts said that HCM City's industrial sector has become outdated, relying on resource-intensive and labour-heavy processes with low added value. Therefore, transitioning towards high-tech industries is seen as essential for the city’s ongoing development.

Nguyen Ngoc Hoa, Chairman of the HCM City Business Association, said that industrial transformation will add significant value to the city, meeting both domestic and international demand. This new direction will help HCM City avoid falling behind global standards and improve the quality of products for the local market.

In Binh Duong province, several industrial parks and multi-sector industrial clusters have been developed, with numerous large-scale supporting industry projects from international corporations such as Kolon (Republic of Korea), Polytex Far Eastern (Taiwan), Tetra Pak (Singapore), Mitsubishi (Japan), and Lego (Denmark).

Binh Duong is now a key industrial centre in Vietnam, featuring 28 active industrial parks covering 7,000 hectares, with more than 93% of the space already leased.

Key areas like electronics, telecommunications, mechanics, and export manufacturing are crucial to the province’s economic development.

HCM City is actively pursuing several initiatives to ensure sustainable development. One such effort includes transforming five outdated export processing zones into eco-industrial parks, high-tech areas, or logistics areas.

The city is also encouraging innovative startups that focus on sustainability through competitions and projects.

Binh Duong province aims to become a centre for smart manufacturing, with widespread application of automation in production to enhance productivity, quality, and competitiveness.

According to its vision until 2030, the industrial and construction sectors will constitute 64% of the economy, with 87% of the workforce trained to meet the demands of the industrial sector.

Binh Duong is also taking steps to boost growth, including setting up the “Binh Duong innovation zone” project to promote digital transformation and improving industrial infrastructure alongside urban development.

These initiatives will attract greater foreign investment and improve the province’s competitiveness, positioning Binh Duong as a leading destination for global companies in industrial production, high technology, and industrial services./.

Vietjet opens sales early for 2.6 million Tet tickets

To help people and tourists planning their flights for Lunar New Year (Tet) 2025, Vietjet opens sales early for 2.6 million tickets for the flying period from January 15, 2025 to February 12, 2025 (December 16 of the Year of Dragon to January 15 of the Year of Snake).

People and tourists can easily book Vietjet’s Lunar New Year flight tickets at the website www.vietjetair.com, the Vietjet Air mobile app, booking offices and the official agents worldwide.

Accordingly, ticket prices for flights from Ho Chi Minh City to Da Nang, Buon Ma Thuot, Pleiku, Nha Trang and Dalat start from 890,000 VND (36.22 USD) and from 1.79 million VND for flights from Ho Chi Minh City to Hanoi, Vinh, Thanh Hoa, Hai Phong. The vice versa tickets start from VND0.

“Book early to enjoy discounted prices and convenient flight times for family reunions or spring travel across Vietnam and internationally,” the airline said in its release.

Ministry to trial digital transformation of small enterprises in HCM City’s district

Ho Chi Minh City will implement a plan to support small and medium-sized enterprises (SMEs) with digital transformation to create a new growth driver for them while boosting socio-economic development, a conference has heard in HCM City last week.

The city's Department of Information and Communications and Phu Nhuan district organised the conference on September 13 titled "Implementing the Digital Transformation Support Programme and the Pilot Programme for Surveying, Measuring, and Assessing the Current Status and Readiness for E-commerce and Digital Transformation of Enterprises, Household Businesses, Wholesale and Retail Stores in Phu Nhuan district."

Tran Minh Tuan, Director of the Ministry of Information and Communications’ Department of Digital Economy and Digital, said Vietnam’s e-commerce retail market grew at 16-25% in 2018-2023 to rise to third in Southeast Asia behind only Malaysia and the Philippines.

Yet its proportion of e-commerce to total retail sales is only 8%, he said, far below the global average of 19.4% and especially that of China (43%), the UK (35%), the Republic of Korea (28%), and the US (26%). This shows there is substantial room for growth, he said.

But Tuan also referred to challenges like the dominance of foreign firms in e-commerce.

The ministry has approved a programme to help retailers make digital transformation and chosen Phu Nhuan district to pilot it before rolling it out nationwide, he said.

Within one month the district will conduct a survey to assess the current state of digital transformation among 2,000 local wholesale and retail businesses to identify their specific needs and accessibility, challenges and barriers to the process.

This would lay the groundwork for connecting them with technology solutions providers and offer support measures, he added.

Deputy Minister of Information and Communications Pham Duc Long, said: “Vietnam has 1.4 million grocery stores and 9,000 traditional markets. Wholesale and retail activities contributed 9.83% to GDP in 2023, highlighting the immense importance of this sector in driving the country’s economic development and job creation. Therefore, supporting the wholesale and retail sector with digital transformation is essential."

Do Dang Ai, Vice Chairman of the Phu Nhuan People's Committee, said the pilot implementation of the programme would create favourable conditions for businesses and households in his district to access digital transformation initiatives.

But 95% of them are small or micro businesses, and they face difficulties in going digital, he said.

Lam Dinh Thang, Director of the city’s Department of Information and Communications, said the data from the survey will also serve as a preference for the city in orienting its long-run digital economic development.

He highlighted that efforts to accelerate digital economy development are on, and the city hopes the digital economy would account for 22% of its economy in 2024, rising to 40% by 2030.

The city has identified digital technology as a driver of economic growth and is prioritising key sectors such as education, healthcare, tourism and social security.

It would provide financial support, consultancy and digital transformation solutions for businesses and organisations, including to cooperatives and household enterprises that meet the required criteria, he added./.

Vietnam develops border gates into key economic zones 
 
Building infrastructure, luring investment, and operating border gates on digital platforms are the focuses of northern provinces to develop local border gates into key economic zones and ensure border security and defense.      

Quang Ninh province, home to three border economic zones of Mong Cai, Hoanh Mo – Dong Van and Bac Phong Sinh, has carried out a breakthrough strategy on developing modern transport infrastructure, thus facilitating trade exchanges and economic development in zones.

The Van Don – Mong Cai Highway was put into operation two years ago, forming a network that connects Lao Cai, Hanoi, Hai Phong, Van Don and Mong Cai, and links Lao Cai and Mong Cai International Border Gates with China’s Hekou and Dongxing ones.

Meanwhile, the border gate economic zone in Lang Son province has attracted 154 domestic and foreign projects worth over US$738 million since 2016, most of which are in the area of infrastructure development, meeting the demand of trade exchanges in the border areas.

In Cao Bang province, nearly VND300 billion from the State budget was injected into its border gates for the construction of essential infrastructure during 2021-2023, helping the locality lure 54 domestic and foreign projects.

As State capital has also been arranged for the development of the border gate economic areas in Ha Giang and Lai Chau provinces, they have seen robust trade activities and better State budget collection.

However, several localities are facing challenges in developing economy at their border gates, including poor transport connectivity between Ha Giang and economic hubs, and import-export procedures in Cao Bang province.

Earlier, the Prime Minister agreed to select eight key border gate economic zones to receive state budget for development in the 2021-2025 period. They are Mong Cai, Dong Dang-Lang Son, Lao Cai, and Cao Bang border gate economic zones in the northern provinces of Quang Ninh, Lang Son, Lao Cai, and Cao Bang, respectively.

Also on the radar for development is the Cau Treo international border gate economic zone in the central province of Ha Tinh, the Lao Bao special economic-trade zone in the central province of Quang Tri, the Moc Bai border gate economic zone in the southern province of Tay Ninh, and the Mekong Delta province of An Giang’s border gate economic zone.

Vietnam Airlines Group opens ticket sales for upcoming Tet Holiday

Vietnam Airlines Group, which manages Vietnam Airlines, Pacific Airlines, and VASCO, has opened ticket sales for the Lunar New Year, known locally as Tet, in the period from January 13 to February 12, 2025.

Accordingly, in order to meet travel demand for the peak period during Tet, the airlines will provide a total of 1.5 million seats, mostly dedicated to domestic flights connecting the three cities of Hanoi, Da Nang, and Ho Chi Minh City with provinces and cities nationwide, including Hai Phong, Vinh, Thanh Hoa, Hue, Quy Nhon, Quang Nam, Pleiku, Da Lat, Buon Ma Thuot, Nha Trang, and Phu Quoc, among others.

Tickets have been available on Vietnam Airlines’ website, mobile app, and official ticket offices and agents nationwide from September 16.

In order to get a ticket and avoid the high seasonal prices, Vietnam Airlines has advised passengers to proactively book air tickets early in the peak season.

They should also carry out check-in process in advance through telephone, website, mobile application, or at kiosks at airports in order to save time.

HCM City to host international exhibition on textile materials

An international exhibition on printing, embroidery technology, and textile materials in Vietnam ITCPE – Vietnam Texprint 2024 is scheduled to take place from November 27 to November 29 at the Saigon Exhibition and Convention Centre (SECC) in Ho Chi Minh City.
      
Ho Chi Minh City will host international exhibition on textile materials this November. (Photo: congthuong.vn)
The exhibition is set to feature over 150 booths showcasing cutting-edge technologies from the nation’s printing and textile industry, as well as those from other countries and territories worldwide.

On display will be a range of smart garment production equipment, automated digital fabric printing machinery and materials, advanced embroidery devices and smart garment hanging systems, and printing and dyeing chemicals and auxiliaries.

Visitors will have the opportunity to explore plenty of advanced technologies, including Industry 4.0 and automation, which will in turn help the textile industry to continually enhance both productivity and quality.

Furthermore, visitors will have the chance to showcase smart garment production equipment, automatic digital printing machines, advanced embroidery systems, and meet industry experts as part of efforts to expand their international network.

Statistics released by the General Statistics Office of Vietnam revealed that last year Vietnamese textile exports reached approximately US$45 billion, marking a 5% growth compared to the previous year.

The Vietnam Textile and Apparel Association (VITAS) also reported that many companies had invested in new technologies, with over 30% of them applying Industry 4.0 and automation in production. In addition, 20% of textile companies in the country are actively carrying out sustainability initiatives, according to the Global Fashion Agenda.

Swiss investors keen on exploring investment opportunities in Nam Dinh province: workshop

Swiss enterprises have expressed their interest in exploring investment opportunities in the northern province of Nam Dinh while attending a workshop recently co-organised by the Swiss-Viet Economic Forum (SVEF) and the Vietnamese Embassy in the European country.

At the event, which drew the participation of leaders of enterprises from Switzerland and Europe, strategic advantages of Nam Dinh were spotlighted, including competitive rental prices for industrial land, and abundant workforce with better skills and productivity.

Director of the provincial Department of Planning and Investment Mai Van Quyet provided delegates with detials about the locality’s investment incentives, and plans to lure foreign firms.Petra Keil of Syngenta Group, which has landed investment in Nam Dinh for years, told the Vietnam News Agency's resident reporter that competitive costs and talented labour force have made Nam Dinh a strategic choice of the corporation, adding it has set up a strong partnership with the province, and had suitable human resources for development.

Meanwhile, Jing Lu, a representative of Energy Depot, said the firm is keen on the wind energy sector that Nam Dinh is planning to develop.

The technology and energy industries that the province is focusing on are in accordance with Energy Depot’s development target in the coming time.

The company is hoping for cooperation with Nam Dinh to explore new areas so as to expand operation in the locality, and Vietnam as a whole, she stated.

Laying stress on the Vietnam – Switzerland cooperation, Vietnamese Ambassador to Switzerland Phung The Long, who is also Vice Chairman of the SVEF, affirmed that Nam Dinh province and the Vietnamese Government always have priority policies for foreign enterprises.

Switzerland has been a time-tested partner of Vietnam, and the former’s investment in Nam Dinh is an important step to consolidate the traditional relationship, he underscored, saying Vietnam encourages more Swiss companies to explore investment opportunities in the province, and other localities in the nation, and the SVEF pledges to accompany them in their development journey./.

Dong Nai eyes 2.5 billion USD in forestry product export value by 2025

The southern province of Dong Nai is striving to nearly double its yearly export turnover of forestry products to 2.5 billion USD by 2025, and 2.8 billion USD by 2030.

The targets are set in a project to develop the multi-purpose values of the forest ecosystem by 2030, with a vision to 2050, recently approved by the provincial People’s Committee. It aims to maximise the value of forest ecosystems in terms of economic, social, and environmental benefits, on the basis of promoting sustainable, multi-purpose, and multi-value forestry development and the sustainable use of forest resources.

Accordingly, Dong Nai encourages organisations, individuals, and communities to invest in, exploit, and share the benefits from the multi-purpose values of the forest ecosystem based on harmonising the interests of the State with those of forest owners, organisations, individuals, and communities involved in the development and exploitation of these multi-functional forest values.

The provincial People's Committee sets specific goals, including increasing the added value of forest products and services, timber processing, eco-tourism, forest environmental services, non-timber forest products, and medicinal plants; and achieving an average annual growth rate of 1.5% in forest production value.

Additionally, the plan aims to develop raw materials from planted forests within the province to meet at least 28% of the demand for timber and forest products for export, while gradually reducing reliance on imported raw materials and ensuring the legality of the wood used.

It also strives for an average annual revenue of 45 billion VND (1.8 million USD) from forest environmental services by 2025 and 50 billion VND per year by 2030.

The annual export value of wood and wood products of Dong Nai accounts for 12-14% of the total national export value of these products, making it the second-largest exporter after neighbouring Binh Duong province. Dong Nai's wood products are exported to over 80 countries, with an average annual value of 1.3 billion USD in recent years. In 2024, the province is aiming to raise the figure to 1.5 billion USD./.

HCM City to promote sustainable green tourism

In line with the global trend, HCM City has identified green tourism as a development strategy to raise its competitive advantage in the coming years.

Municipal People's Committee vice chairman Nguyễn Văn Dũng said tourism trends have evolved into more sustainable practices that protect the environment, natural resources, and local cultures.

About 97 per cent of Vietnamese tourists surveyed expressed a desire for more sustainable travel in the next 12 months.

Some 75 per cent of tourists were willing to pay more for certified sustainable travel options, and 83 per cent displayed a desire to contribute to making their destination cleaner and greener after their visit.

The city has received six prestigious awards at the World Travel Awards held in Manila, the Philippines, and the World MICE Awards in Berlin, which recognise the efforts of the city’s tourism industry and related sectors.

“These validate the city’s strategy of developing key tourism products aligned with the city's strengths including festival - event tourism, MICE tourism, and business tourism,” he said.

To further promote and develop these key products, the municipal People's Committee has tasked the Department of Tourism with coordinating with other departments to develop policies and implement comprehensive solutions, including integrating tourism development with the city's socioeconomic and overall development plans.

Dũng said that after researching the market, the city’s current priority in tourism is holidaymakers from Northeast Asia (Japan, the Republic of Korea and China), North America (the US and Canada), Western Europe (Germany, the UK and France), Australia, and Southeast Asia.

Other markets like India and the Middle East are classified as having potential, and should lead to more promotional campaigns, he said.

However, the city’s growth is facing numerous challenges, including the imperative of sustainable development.

As a comprehensive and highly influential economic sector, tourism is positioned to lead the green transition, aligning with the UN's 17 sustainable development goals and the commitment to reducing emissions and achieving net-zero emissions by 2050.

“Therefore, going green is an inevitable trend to protect natural resources and indigenous culture,” he said.

When it comes to green spaces, tourists are impressed by destinations like Củ Chi and Cần Giờ districts, the latter being recognised by UNESCO as Việt Nam's first biosphere reserve.

Cần Giờ District is also the pilot area chosen by the city government to transition from fossil fuels to clean energy.

In recent times, there has been a surge in community-based tourism, and eco-tourism activities such as tree planting, cycling, and environmental cleanup in the city.

The community-based tourism model in Thiềng Liềng Island in Cần Giờ District, which is being developed as a net-zero destination, has garnered significant attention from tourists and travel businesses.

With the theme "Sustainable Travel - Creating Future” for the 18th International Travel Expo HCM City held from September 5 to 7, the city also offered a series of forums and workshops on this topic that marked a significant step in developing the city's green tourism strategy.

This includes reviewing and refining solutions, criteria, and specific action plans, as well as developing dynamic mechanisms and policies to drive the city’s tourism industry forward.

This also aligns with the National Assembly's Resolution 98 on piloting some specific mechanisms and policies for the city's development.

In the first eight months of this year, the city welcomed more than 3.4 million international tourists, an increase of 21 per cent compared to the same period last year, and about 23 million domestic tourists.

Revenue of the tourism sector is estimated to reach VNĐ123 trillion (US$5 million), an increase of 15 per cent year-on-year. 

State Treasury buys large amounts of US dollar from banks

With a sharp depreciation of the US dollar against the Vietnamese đồng, the State Treasury has continuously bought large amounts of the greenback from commercial banks

This week, the Treasury announced it would purchase the dollar from commercial banks for an expected maximum value of US$100 million. 

The purchase was a spot trade on September 12, and the expected payment date is September 16. Based on the State Bank of Vietnam (SBV)’s dollar purchasing price of VNĐ23,400 per dollar, it is estimated that the State Treasury will spend VNĐ2.3 trillion to carry out this transaction. 

This was the third time since the beginning of this year that they have announced the purchase of the dollar from commercial banks. Last week, it offered to buy a maximum of $150 million and in mid May, $100 million. 

The State Treasury offered to buy foreign currency in the context of the sharp decline in the USD/VNĐ exchange rate in recent weeks.

Currently, the USD/VNĐ exchange rate on the interbank market has dropped to VNĐ24,565 per dollar. The interbank USD/VNĐ exchange rate decreased by about three per cent compared to the peak period at the end of May and by nearly two per cent since the beginning of August. 

The exchange rate listed at domestic commercial banks has also continuously fallen. The dollar selling price listed at banks is around VNĐ24,355 per dollar, while the buying price is at VNĐ24,725 per dollar. Since the beginning of August, the dollar price at banks has decreased by more than VNĐ500, equivalent to a decline of more than two per cent. 

The exchange rate on the unofficial market has also decreased sharply in recent trading sessions. It is currently trading at VNĐ25,140 per dollar for buying and VNĐ25,240 for selling.

In the context of the cooling exchange rate, the SBV has also taken a more relaxed approach to monetary policies. 

The SBV announced late last month that commercial banks whose outstanding loans have reached 80 per cent of the credit growth quota allocated by the SBV will be automatically allowed to expand credit room based on their ranking.

On the open market operation (OMO) channel, the SBV has also proactively stopped issuing on the treasury bill channel and reduced interest rates on the OMO channel to support liquidity for the banking system. 

Bad weather hits fruit, vegetable output, prices surge

Unseasonable weather has severely affected the farming of many fruits and vegetables in the south.

Lê Hữu Hoàng of Bình Thuận Province said prolonged heavy rains caused flooding that severely damaged his dragon fruit farm, and despite his efforts to mitigate the damage his year-end harvest is unlikely to recover fully.

Flash floods and inundation caused by the rain have affected 230 farmers who grow hundreds of hectares of the fruit.

Some provinces in the Mekong Delta are also facing similar challenges.

Heavy rains and erratic weather have made it difficult for crops to bear fruit.

Trần Kim Thuận, a farmer in Đồng Tháp Province, said the weather has reduced his mango yield by 30 per cent from last year.

Agriculture departments in southern provinces have reported that the harvests of many key fruits such as mangosteen, mango and dragon fruit decreased by 10-20 per cent in August from the previous month and the same period last year.

According to data from the Ministry of Industry and Trade, dragon fruit output in August was only down 38,000 tonnes from the previous month to 59,700 tonnes.

The mango output is down 10,900 tonnes to an estimated 75,700 tonnes.

This year, the weather has been affected by El Nino. 

The rains have affected the quality of vegetables while supply has decreased sharply, and is not enough to meet market demand.

HCM City wholesale markets report vegetable supply is down 2-10 per cent compared to last month.

The low supply has caused the prices of fruits and vegetables at wholesale markets, traditional markets and modern sales channels to increase by 20-60 per cent.

Nguyễn Thanh Tuấn, a trader in the city, expected the shortage to persist since the north has suffered from Typhoon Yagi, which has caused floods and landslides. The storm destroyed thousands hectares of crops, forcing part of the supply in the South to be transported to the North, making the shortage even more serious.

Prices are likely to continue to rise, he added.

Agricultural exports are also on the rise, reducing domestic supply during the year's final months. 

Việt Nam recently signed two protocols with China to export frozen durian and fresh coconut starting in mid-August.

This is expected to sharply drive up fruit and vegetable exports.

Besides, global demand for fruit and vegetables increases at the end of the year, especially for durian and coconut.

It is estimated that durian exports will top US$3.2 billion this year, a 45 per cent rise from 2023.

Fresh coconut exports are expected to increase by 50 per cent to US$200 million.

Total fruit and vegetable exports will likely be $6.5-6.6 billion, a 17 per cent increase.

In the first seven months, they were worth $3.8 billion, a 25.9 per cent year-on-year increase. 

Companies need support to recover from Typhoon Yagi

The need to set out detailed policies to support companies in the northern regions to recover production and restart their businesses, is a matter of urgency.

Phạm Đắc Yên, director of a gemstone painting company in Yên Bái Province, which faced unprecedented flooding due to heavy rains induced by Typhoon Yagi, estimated that it might take one month or longer for his business to come back to normal operations.

An agricultural cooperative in Chương Mỹ District, Hà Nội, is being forced to replant its farm after the flooding destroyed nearly ten hectares of vegetables.

Some companies in industrial zones in Hải Phòng, Bắc Giang, Bắc Ninh and Quảng Ninh have resumed operations, but not all.

Chairman of the Korean Business Association in Việt Nam, Hong Sun, said that local authorities quickly took measures to help companies recover from the storm, especially in terms of restoring electricity and telecommunications services.

However, many businesses are still in a lot of trouble, especially seafood enterprises in Quảng Ninh and Hải Phòng.

Nguyễn Trường, director of a seafood processing company in Hải Phòng said that it might take 20 days for his company to clean up, repair and restore production. He estimated that his company suffered damage of around VNĐ100 billion.

Ngô Hùng Dũng, director of Tân An Seafood Company in Quảng Ninh Province, said that all his oyster rafts at sea were swept away, while shrimp died due to power cuts. The damage was estimated at VNĐ100 billion.

He said what is now important is how to retain workers and restore production. Dũng said he expected that payment deadline extensions would be used to service existing debts while lending packages with preferential rates would be introduced to support businesses during the current adverse conditions.

Statistics of Quảng Ninh Province showed that more than 11,000 customers, including numerous aquaculture businesses with total outstanding loans of VNĐ10.654 trillion, were seriously affected by Typhoon Yagi.

The State Bank of Việt Nam estimated that outstanding loans in provinces and cities hit by the typhoon and flooding amounted to VNĐ80 trillion or five per cent of the total, with many sectors hit, from agriculture and industry to trade and services.

In Quảng Ninh and Hải Phòng alone, about 11,7000 customers were affected with a total outstanding debt of about VNĐ23.1 trillion.

The central bank said that to help affected enterprises, it will raise support such as restructuring payment deadlines and preferential rates.

According to Tô Hoài Nam, Deputy President of the Việt Nam Association of Small and Medium-Sized Enterprises, the first priority should be to provide preferential loans to enable them to pay salaries and insurance for employees for the next three to six months.

He said it is necessary to extend payment deadlines and reduce corporate income tax, value-added tax (VAT), and land fees for affected enterprises.

Companies will also need support in market, transportation and labour to recover production and business, he added.

Prime Minister Phạm Minh Chính, at a meeting on Sunday, asked the State Bank of Việt Nam, the Ministry of Finance and the Bank for Social Policies, to raise policies to support affected businesses to recover from the storm, including debt payment deadline extensions and preferential lending packages.

The Government has asked the State Bank of Việt Nam to double the credit package for forestry and fishery sector to VNĐ50-60 trillion as a measure to support enterprises after Typhoon Yagi.

The Ministry of Planning and Investment estimated property damage caused by the typhoon at around VNĐ40 trillion (US$1.629 billion).

The ministry forecast that the typhoon and its aftermath could damage economic growth, pushing it 0.15 percentage point lower compared to the growth scenario of 8.6-7 per cent previously expected for the full year. 

Cooperatives enter the beauty, personal care market

Many cooperatives are taking the opportunity to enter the beauty and personal care segment, creating jobs and increasing income streams for members.  

The Tâm Ngọc Cooperative in Hà Nội's Sóc Sơn District said it has joined the personal care sector, in addition to the growing, cultivating and processing of medicinal herbs. 

The director of the cooperative Trần Thị Thuần, told business.vn that the cosmetic arena has been developing strongly in recent years, and her cooperative has invested in this field, which has facilitated the participation of many female members. 

Thuần said most of her cooperative's beauty and personal care products are made from oriental medicine. This is also an advantage as her cooperative can use available medicines provided by members.

Also investing in this field, the HCM City-based Tâm Vĩnh Phát Cooperative is developing a system of mini spas. It aims to open about 500 small spas from now to 2030, creating jobs for up to a thousand workers who will earn a monthly income of between VNĐ6-15 million.  

Many other cooperatives have also taken advantage of abundant raw materials from agricultural products, investing in machinery to provide products for the beauty and personal care segment.

The Việt Yên Agricultural Cooperative in Bắc Giang Province is a good example.

In addition to developing a large growing area of gấc fruit (red sweet gourd), it has also invested in machinery to turn the fruit into beauty and personal care products, such as gấc powder and gấc oil. 

Meanwhile, the Trường Sơn Medicinal Herbs Cooperative in the central province of Quảng Trị has teamed up with schools and institutes to research and produce cosmetics from avocado oil. 

The cooperative's director, Lê Thanh Huệ, said investing in this segment has also opened up opportunities for his cohort to foster the consumption of agricultural products and other goods.  

Huệ told business.vn that avocado is a popular fruit in many localities, but when harvested, the fruit quickly spoils, resulting in reduced prices, which in turn impacts the economy of growers. 

Processing avocado oil has solved the problem of having a good harvest but low price, increasing the value of this agricultural product, Huệ said, adding that each litre of avocado oil is sold at a price ofVNĐ20 million.

Many cooperatives, however, have still encountered challenges in investing in the beauty and personal care segment. 

Currently, every year in Việt Nam, about 2,000 spas and beauty salons are set up  so that means cooperatives that go down this commercial route are facing fierce competition.

Thuần from the Tâm Ngọc Cooperative outlined a shortage of skilled workers as one of the main reasons that has reduced the competitiveness and affected the development of cooperatives in the market. 

In addition, many cooperatives are facing difficulties in investing in processing medicinal and agricultural products into high-end cosmetic products. Most of them currently only produce basic products like oils, herbal shampoos, dried herbal medicines and herbal face masks.

Deputy President of the Vietnam Association of Natural Products Sciences Nguyễn Xuân Hoàng said that cosmetic products made by Vietnamese businesses can only account for about 30-40 per cent of the total number of products in the local market.

That means there is plenty of untapped potential in the personal care market in Việt Nam, offering plenty of room for growth and opportunities for cooperatives to become huge, he said.  

According to trade experts, opportunities will also come with challenges. Therefore, cooperatives should focus on training their workers. 

In addition, they suggested that the State develop support policies and create conditions for cooperatives to access modern and imported machinery and equipment, which normally require large investment capitals, increasing costs for cooperatives. 

The revenue in the beauty and personal care market in Việt Nam is projected to reach US$2.66 billion by 2024, with an annual growth rate of 2.97 per cent in 2024-28, according to Statista, a global data and business intelligence platform.

Using extensive statistical models, the company forecasts that the per-person revenue in Việt Nam is projected to be at $26.77 in 2024. 

Furthermore, online sales are expected to contribute 20.2 per cent of the total revenue in the beauty and personal care market by 2024.

Statista said Vietnamese consumers are increasingly embracing natural and organic beauty products, driving the growth of the beauty and personal care market in the country. 

VNS/VOV/VNN/VNA