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Post harvest processing

Vietnam targets 10 billion USD from fruit, vegetable exports by 2030

March 24, 2021 by en.vietnamplus.vn

Vietnam targets 10 billion USD from fruit, vegetable exports by 2030 hinh anh 1 Lychees are sterilised before being shipped to Japan. (Photo: VNA)

Hanoi (VNA) – Vietnam expects to gain 8-10 billion USD from shipping fruits and vegetables abroad, with revenue of processed products accounting for at least 30 percent of the total by 2030.

Under a project to develop the fruit and vegetable process sector during 2021-2030 recently approved by the Prime Minister, Vietnam targets to attract investment in 50-60 fruit and vegetable processing establishments , and build several modern groups and enterprises who have good competitive capacity.

With a view to achieving the goals, Vietnam will invest heavily to improve processing ability, give priority to processing key fruits and vegetables which have high values, set up material zones, and develop markets for the products.

The project laid stress on the necessity to build processing and packaging facilities and storage warehouses and install suitable equipment to reduce post-harvest losses.

Besides, it is crucial to attract investment to ensure that all of the production facilities will be well equipped with necessary machines by 2030.

Along with encouraging businesses to invest in food irradiation centres at large-scale fruit and vegetable farming areas so that their products meet international standards, the country will promote intensive processing and diversify processed products .

Additionally, the country will establish specialised fruit and vegetable cultivating areas which are able to provide some 5-6 million tonnes of high-quality products for processing by 2030./.

VNA

Filed Under: Business fruits and vegetables, exports, processed products, processing establishments, processing ability, material zones, post-harvest losses, Vietnam News Agency, ..., vietnam top 10 exports, top 10 contaminated fruits and vegetables, 10 most pesticide laden fruits and vegetables

VIETNAM BUSINESS NEWS MARCH 23

March 23, 2021 by vietnamnet.vn

Momentum needed to help aviation industry take off

Many domestic airlines incurred heavy losses last year after being seriously affected by Covid-19. Along with Government support and their own efforts, airlines, however, have overcome the difficulties and are now posting profits. Bamboo Airways can be viewed as a “miracle” in this regard.

Taking the initiative, however, it soon switched its focus to the domestic market.

It was the right decision, given that its business results for 2020 increased by 10% to 20%, with pre-tax profit standing at over 17.3 million USD, while other airlines either posted heavy losses or low profits.

Positive business results in 2020 became a driving force for not only Bamboo Airways itself but also for the private business sector to participate in fields that were previously only the domain of State-owned enterprises.

This has made the market more competitive, bringing extra benefits to customers.

Regarding the prospects for the aviation industry this year, analysts have said growth will remain low. It is necessary to create favourable conditions for private concerns to grow, and Bamboo Airlines is an excellent example./.

Vietnam Post launches automated package sorting system

Vietnam Post Corporation (Vietnam Post) on March 22 launched an automated packages sorting system at its logistics centre in the central region, which is located at the Hoa Khanh Industrial Park in Da Nang city.

Using bar code reading and image analysing technologies, the modern system is able to sort packages based on addresses to the district, even communal level, with a capacity of handling tens of thousands of parcels each hour.

Vietnam Post has integrated the system with the IT system, Vmap web-mapping application and Vpostcode – a postal address code system – in order to build an uninterrupted and synchronous delivery process.

Apart from the sorting system, the centre has also put into service new tools and equipment to standardise the entire process, thus absolutely keeping parcels safe during the delivery.

The modernisation is set to better serve customers and catch up with a growth rate of over 30 percent of domestic delivery services.

Speaking at the launching ceremony, Le Minh Trung, Vice Chairman of the municipal People’s Council, said the postal service has joined efforts to step up administrative reform.

He highlighted the important role of the sector in rolling out public services, saying digital transformation in the sector would contribute to the digital transformation of the city at large, thus promoting e-commerce and logistics, towards digital economy and digital society.

Chu Quang Hao, General Director of Vietnam Post, said the sorting system helps to cut labour and improve productivity by tens of times, meeting all requirements of domestic and foreign clients./.

Vietnamese tech firm exports first Bphone smartphones to EU

“Those who will use the high-end smartphones produced by us are very important people,” Quang shared. “We have worked with our partners to develop a highly-secure operating system which is based on our BOS for the model.”

The special order is expected to open up a new business model, which is suitable to Bkav’s strengths including cyber security and premium hardware production, Quang said. “We may see the image of a European leader using the Made-in-Vietnam smartphone one day.”

Bkav also plans to launch some new models from flagship to mid- low range smartphones this year, however, did not disclose the specific date and product name.

Last November, the Vietnamese maker exported its Al View security cameras to the US, which will be installed at the headquarters of Qualcomm Incorporated in San Diego, California, making a step closer to fulfill its goal of becoming the  five leading camera manufacturers in the world.

The Bkav executive also announced that the launch of its true wireless AirB headset using Qualcomm’s chipset will be available as planned.

Price management faces new conditions amid pandemic

The COVID-19 pandemic has impacted economies and commodity markets globally, including Vietnam, and domestic prices will continue to fluctuate and be more closely linked to the fluctuations of raw material and fuel prices on the world market.

At the 10th session, the 14th National Assembly set a target of an average consumer price index (CPI) growth rate of about 4 percent.

Economists forecast that there were many factors to make the consumer price index (CPI) increase this year.

Notably, the prices of many types of raw materials and fuels on the world market are expected to hike again when the COVID-19 pandemic in the world is gradually controlled, COVID-19 vaccines are distributed on a large scale and production, trade and international exchanges recover.

Dr Nguyen Ngoc Tuyen from the Academy of Finance predicted that the price of many essential goods would fluctuate this year, so the CPI would be higher than last year, but the average for the whole year would be below 4 percent, the target set by the National Assembly.

Nguyen Anh Tuan, Director of the Price Management Department under the Ministry of Finance, said there would be some factors that adversely affect the price situation this year such as fuel and petroleum product prices had changed continuously.

Essential goods, including pork, could also be impacted if the disease was not controlled well, he said.

However, in the opposite direction, amid many factors related to the pandemic and the aggregate demand of the economy unlikely to recover to levels seen pre-pandemic, the market prices of essential goods are not expected to have large fluctuations in general.

Therefore, Tuan said it was necessary to forecast both difficulties and advantages to prepare appropriate measures.

Authorities plan to strengthen management and inspection of the observance of the law on prices and of compliance with the laws on taxes and fees and to strictly manage the listing of prices and selling at listed prices of items with high demand during holidays.

In addition, authorities will closely monitor developments and implement solutions to balance supply and demand to stabilise the market and prices.

At the same time, there should be specific operation solutions for commodities such as petroleum.

Specifically, the Ministry of Industry and Trade must work with the Ministry of Finance to control the price of petroleum, taking into account market factors and working with the petrol price stabilisation fund, he said.

For electricity products, it would be necessary to carefully evaluate the cost factor affecting the price to consider the impact on electricity prices, Tuan noted./.

EU Industry Week features green manufacturing tech

Technology developers and users from Europe, Vietnam and other ASEAN countries can stimulate their cooperation and transfer green manufacturing technologies.

The event started with four hands-on practitioner workshops on green technologies on March 22, where participants could witness technology innovation and have the opportunity to discuss with peers the “do’s and don’ts” of successful green technology innovation.

The main conference, which is held online and at the World Trade Center Binh Duong New City in Binh Duong Province on March 23, provides participants with strategies for green growth, innovative green technologies and opportunities to innovate beyond borders in ASEAN-wide green technology-based cooperation.

Green technologies are key to sustainable new products, services and manufacturing processes, and are essential for realizing green growth. They combine the opportunity to fuel economic growth and socio-economic development.

They also have strong potential to contribute to sustainable development, environmental improvements, a reduction of greenhouse gases, a reduction or mitigation of the effects of climate change and achieving the Sustainable Development Goals.

For the manufacturing sector of Vietnam, green technologies are of particular importance. They are the basis for the best use of natural resources and energy and the protection of the health and well-being of workers and consumers.

Also, they contribute to the reduction of carbon dioxide and other greenhouse gas emissions and create new sustainable employment and economic growth with benefits for the industry, small and medium enterprises, the community and the economy.

Regulation on goods exempted from export, import tariffs under int’l treaties

The Government’s Decree No.18/2021/ND-CP dated March 11, 2021 has added a stipulation on the exemption of export and import duties of goods in line with international treaties to which Vietnam is a member.

Decree No.18/2021/ND-CP amends and supplements several articles of Decree No.134/2016/ND-CP dated September 1, 2016 stipulating in details the implementation of the Law on Export Duty and Import Duty.

Under Article 29a of Decree 18, the determination of goods eligible for import or export tax waiver should be made based on the types and quantities of goods specified in a treaty; or confirmation documents issued by the agency proposing the signing of or joining a treaty or a specialized management agency in case the international treaty does not specify the categories and quantities of goods.

In case an international treaty does not specify categories and quantities of goods subject for duty exempt, organisations and individuals using tax-free goods must make written requests to the agency proposing the signing of or joining a treaty or a specialized management agency to confirme the categories and quantities of such goods.

Within 15 days from receiving the request, the agency must reply with documents confirming the categories and quantities of goods eligible for duty exempt or refusing the confirmation in case the mentioned goods are not covered by the international treaty.

Decree 18 will take effect on April 25, 2021./.

Pangasius exports to China suffer sharp drop

The total export value of tra fish (pangasius) to China by mid-February plummeted by 38.6% on-year to US$13.55 million, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

The export value of pangasius to Hong Kong (China) also decreased by 40.5%, reported the VASEP.

The VASEP attributed this sharp decline to the adverse impact caused by the novel coronavirus (COVID-19) pandemic which has led many of Chinese seafood processing factories to delay their resumption of operations, thereby leading to disruption in trade exchange activities.

Since the end of the second quarter and the beginning of the third quarter of last year, exports to China have become more bustling, with the export price of frozen pangasius to the market increasing sharply to US$2.52 per kilo.

Despite this, China has moved to tighten control over goods which pass through ports and border gates, an action which has led to the suspension of imported seafood products.

Furthermore, Guangxi that a common border with Vietnam has also tightened frozen food imports in terms of product quarantine, sterilisation, and origin traceability.

Last year saw roughly 145 enterprises and co-operatives export pangasius to the Chinese market while 40 firms shipped tra fish products to Hong Kong.

Three local enterprises which recorded the largest export value to the Chinese market include IDI Corp., VINH HOAN Corp., and TG FISHERY, while the three largest pangasius exporters to Hong Kong include IDI Corp., VINH HOAN Corp., and VDTG FOOD.

Hanoi strives to have 900 firms in supporting industries

Hanoi has set a target of having 900 businesses operating in supporting industries this year, with 300 eligible to join global production networks of multinational groups in Vietnam.

The target was set in Plan No. 49/KH-UBND on the local supporting industry development programme in 2021, issued by the municipal People’s Committee earlier this month.

Under the plan, supporting industries would make up 16 percent of the total production value of the city’s processing and manufacturing sector. Those industries’ industrial development index will expand 11 percent annually.

The plan also put forth a raft of tasks to help with the development of supporting industries like connecting the enterprises and assisting them in becoming suppliers of domestic and foreign customers, attracting foreign investment in those industries, and supporting enterprises in adopting advanced business and production administration systems as well as in promoting R&D activities, technology transfer and modernization.

Hanoi has aligned the development of supporting industries with the orientation of industrial development, which will focus on making spare parts and accessories for high-tech industries, garment-textile, and leather and footwear./.

Strategy for sustainable development of Vietnam’s sea-based economy

The sea and marine economy play an increasingly important role today in Vietnam’s socio-economic development and also national security. In order to manage and exploit the advantageous resources of the sea, the 12th Party Central Committee issued Resolution 36 on the strategy for the sustainable development of Vietnam’s marine economy by 2030 and vision to 2045.

The strategy for the sustainable development of the marine economy defines the overall goal of making Vietnam a strong sea country, basically meeting the criteria for sustainable marine economic development by 2030 and becoming a strong, sustainable, and prosperous marine nation by 2045.

It also sets out specific targets to achieve its goals. By 2030, pure marine economic sectors will contribute about 10 percent of GDP. The economies of 28 coastal cities and provinces are estimated to account for 65-70 percent of GDP, while marine economic sectors will see sustainable development according to international standards.

The strategy sets out five major policies and seven groups of solutions to achieve these goals. The five major policies include developing the marine and coastal economy; sustainably developing marine areas based on advantages in natural conditions, while balancing conservation and development; protecting the environment, conserving and sustainably developing marine biodiversity, proactively responding to climate change and sea level rises, bolstering natural disaster prevention and control; improving people’s lives, building a sea culture that is close and friendly on the sea; and ensuring national defense, security, foreign affairs, and international cooperation.

On February 6, 2020, the Prime Minister issued Decision 203 on the establishment of the National Steering Committee on the implementation of the strategy for the sustainable development of Vietnam’s marine economy to 2030 and vision to 2045.

On March 5, 2020, Prime Minister Nguyen Xuan Phuc signed Resolution 26 on the issuance of a master plan and five-year plan from the Government, which offers six contents and solutions on sea and ocean governance and coastal management; marine and coastal economic development; and guaranteeing national defence, security, foreign affairs, and international cooperation, among others./.

Policies to support firms should be practical

Policies to support firms to overcome the negative impacts of the COVID-19 pandemic should be more practical to ensure companies really benefit.

According to the Viet Nam Chamber of Commerce and Industry (VCCI), from the outbreak of the virus to the end of last year, about 95 documents were issued to support enterprises and residents with four major packages including VND250 trillion in credit support, VND180 trillion in tax deferrals, VND16 trillion in preferential loans with zero rate and VND62 trillion in social welfare.

However, the efficiency of these policies was not as high as expected due to complicated procedures and requirements which deterred firms from applying for the support policies, some business associations said.

Agreeing it was necessary to launch a so-called second economic stimulus package, Pham Xuan Hoe, former Deputy Director of the Banking Strategy Institute, said that policy-makers must renovate their thinking in raising policies to ensure the support really benefits firms in the new normal.

Policies should aim to simplify criteria and requirements as well as ensuring fairness in access among those who were subjects to the assistance.

Policy-makers needed to understand what were the problems enterprises were encountering so that could raise practical solutions, Hoe said.

Interest rates should also be strongly reduced to support enterprises, Hoe said.

Vinh Phuc Province Enterprise Association proposed further cuts in taxes, specifically value-added tax from 10 per cent to eight per cent over the next three to five years and corporate income tax from 20 per cent to 13-15 per cent.

According to Nguyen Xuan Tot, President of Thai Nguyen Province Association of Small and Medium-Sized Enterprises, the tax deferral policy did not help much as the majority of enterprises suffered from declines in revenue and even losses.

Vu Thi An, Director of C&A Tax Consultancy Company, said the tax support policies remained modest, mainly tax deferral, adding that it was understandable in the context of limited national financial capacity.

An also said that enterprises should not expect too much from tax reduction and exemption policies. The better way to support enterprises would be reducing the number of time-consuming inspections, An said, adding that they should only be carried out when there were signs of violations.

VCCI’s survey found that 87.2 per cent of enterprises were suffering from negative impacts of the pandemic.

Domestic travel bouncing back quickly

Many travel companies said domestic tourism is recovering quickly, and even a number of tours for the South Liberation and National Reunification Day (April 30) and the May Day holidays have been fully booked.

The Dau tu (Vietnam Investment Review) newspaper reported that travel firms have continually offered new tours and combos with attractive prices and services.

Thanks to the containment of the latest COVID-19 outbreak that began in late January, the number of domestic travellers booking tours and combos has been growing strongly.

Nguyen Nguyet Van Khanh, Deputy Director of the marketing division at Vietravel, said since early March, her company has carried out a new programme in which clients booking four- or five-star resort rooms for two or three nights for trips in March and April will be offered round-trip tickets priced from only VND990,000 (nearly US$43) for certain routes of Vietravel Airlines.

This enterprise reported that the number of visitors rose five-fold during March 1-7, and most of them selected destinations in the Central Highlands, the central region, and Phu Quoc Island for their holidays.

Doan Thi Thanh Tra, head of the communications division at Saigontourist, noted that for travel businesses, the domestic market is still their lifesaver in 2021.

Tour prices at present are “very good” compared to the pre-outbreak period as hotels and restaurants are offering the best prices while service quality is still maintained, she said, adding that Saigontourist has also seen a large number of clients asking for information or booking tours and combos for the coming national holidays in late April.

Besides, flight tickets have also been discounted to the lowest possible level, according to Dau tu.

Vietnam Airlines and Pacific Airlines has sold tickets for the domestic flights conducted between February 19 and December 31 this year, except for some peak times, for only VND88,000, or VND567,000 including tax and fees. Passengers can change tickets for unlimited times before the flight date, with the change free of VND500,000 per ticket.

Apart from travel companies and airlines, many localities have also been launching a wide range of activities to attract visitors this summer.

Da Nang city, a tourist magnet in the central region, is set to organise the Danang By Night programme on April 30 featuring numerous events like artistic lighting on the Han River and its banks, bridges, and some skycrapers; night-time travel activities at the An Thuong tourism zone; and music shows at many places of interest.

Hanoi capital is scheduled to hold a travel stimulus and culinary festival on April 14-16 at the pedestrian zone around Hoan Kiem Lake.

Meanwhile, businesses in Ho Chi Minh City has also recorded positive signs when the number of people with travel demand is recovering, Chairwoman of the city’s Tourism Association Nguyen Thi Khanh said, adding that many of the association’s member companies have inked contracts with hundreds or even thousands of clients for trips through April.

She noted that residents in HCM City love travelling, so a demand rebound is inevitable after a long period of staying at home due to the coronavirus outbreak.

To deal with the agro-market

Prices in commodity exchanges have suddenly soared over the past few months. Prices of many commodities with their production forecast to increase like Arabica coffee in Brazil causing a gloomy market sentiment have also risen strongly.

Many farmers have begun to study the seemingly unfamiliar word economic “super cycle.” To many economic researchers, this is not a new word, but to farmers, it sounds strange and aroused true curiosity.

The hot growth of commodity prices, especially agro-commodities, has raised quite a suspicion. Further, while Covid-19 has disrupted production, the oil price has surged to US$63 per barrel, the highest since December 2019, the time before the pandemic. Is it true that the pandemic is gone?

Economic experts said that the economic “super cycle” is not like the trading cycle of a single commodity. It is a long phase, some times up to even 40 years. The distinction between the two cycles is the troughs of prices of representative commodities, including crude oil, basic metals, meat/livestock and agro-products. The “dawn” of a super cycle may commence with the kickstart of the consumption demand after a period of recession of the global market and economy. It is not like the upward and downward trends of a single commodity market, which is usually triggered by the daily supply and demand of that commodity.

Since 2008, the world situation has had too many unfavorable upheavals for economic growth, such as the negative contract price of the WTI crude oil, geo-political instability in the Middle East, the trade war between the United States and her competitors as well as traditional allies and the sluggish Chinese economy. However, risk turns out to be luck, as Covid-19 is like the last drop of water that spilled the glass.

Countries in the world have pumped out massive money with tens of trillions of U.S. dollars. The whole world is confident to have Covid-19 vaccine, workers are preparing to return to factories and farms, and countries are ready for a “jump” in production to get back what have been lost. After a long time of idleness, the shipping industry now does not have enough containers for cargo transport. Many countries are planning to increase production of containers to ensure timely cargo deliveries.

Once prices in the energy and metal markets increase, they often lift prices of agro-commodities along. When prices in many commodity exchanges rise together, it is one of the signs for the price rally in a common market, which is called the “super cycle” of the commodity market.

When the global economy grows stronger, the demand for materials is greater, which pushes up prices higher. In agricultural production, when there is big demand, agro-products are not always available for supply as it needs time for soil preparation, cultivation, harvest, processing and so on; so the demand is becoming hotter. However, the massive rush for cultivation to have large production prompted by a price rise may backlash later.

The export price of Vietnamese rice has increased the highest over the past tens of years, which is a good sign. Viewed from the “super cycle” angle, the Ministry of Agriculture and Rural Development’s target for agro-, forestry and fisheries exports of US$50-51 billion by 2025 seems not hard to achieve.

The general target is set, but it is still an expectation. Farmers should study carefully the “super cycle” of the market and examine short- and long-term trends to invest and trade in the agro-products they produce. With these efforts, they can control the price trend, taking advantage when prices are high to offset the losses from the market slump earlier.

Nevertheless, the “super cycle” should not be seen as something unchangeable. Farmers should not rush for cultivation and production of a crop because of its strong price rise. Meanwhile, they should increase production of commodities which the domestic market is in shortage and must import so as to proactively cope with future market upheavals.

HCMC to shorten time needed to handle enterprises’ requests

The government of HCMC will study how to reduce at least 30% of the time needed to deal with the requests of enterprises operating in the city compared to the amount of time currently being taken by the municipal departments and agencies, said Nguyen Thanh Phong, chairman of the municipal government.

This is part of the city’s efforts to improve its investment environment this year, Phong said at a conference held on March 19 in the city to review the performance of the HCMC government’s investment working group and to collect the feedback of enterprises to improve the city’s investment environment.

The city at the event put forward 10 groups of solutions, such as facilitating administrative reform, enhancing the coordination among State agencies citywide, accessing land resources and stepping up digital and technology transformation.

Specifically, over 60% of public administrative procedures under the authority of the city are eligible to go online.

To cushion the tardiness in conducting administrative procedures, if the relevant departments and agencies fail to respond to enterprises’ requests in more than 15 working days, it will be assumed that they agreed with the requests and must take responsibility for the associated issues.

Phong stressed that there are a number of projects and issues that are beyond the authority of the city, so the city has to seek approval from the higher authorities, prolonging the time needed to handle enterprises’ investment procedures or requests. Therefore, Phong hoped that enterprises would share this obstacle with the city.

The city’s government expected that more projects will have their obstacles eliminated through the operations of the investment working group in the upcoming period. This will contribute to building an investment-friendly environment and make enterprises’ investment more effective, the chairman continued.

Earlier at the conference, many enterprises voiced their complaints about prolonged administrative procedures for making investments in HCMC.

Do Phuoc Tong, chairman of the HCMC Association of Mechanical-Electrical Enterprises, said that some members of the association were licensed to invest in the Saigon Hi-Tech Park in 2017 and 2018. However, they have not been able to start work on their projects as construction licenses were granted too late.

Similarly, Tran Viet Anh, vice chairman of the HCMC Union Business Associations, said it took a long time to complete essential procedures to invest in the city’s industrial parks. He cited an example of an enterprise seeking to invest in the Hiep Phuoc Industrial Park as saying that the firm took two to three years to finish all of the procedures. Meanwhile, at the same time, another enterprise investing in the neighboring provinces had already started the construction of its plant.

To entice investors to HCMC, Anh suggested the city build a database on enterprises that have invested in the city for the past 5-10 years to offer them investment incentives. Also, the city needs to develop specialized industrial zones deploying novel technology and employing highly-skilled employees to attract major corporations.

Not only local enterprises but foreign firms also complained about the time-consuming administrative procedures in the city.

A representative of chipmaker Intel Products Vietnam, which operates at the Saigon Hi-Tech Park, said that the park’s one-door service had turned unattractive; the firm had to wait for months to get administrative procedures processed.

Seafood shipments returned by China surge

In the first quarter of this year, China returned 15 of the 40 seafood shipments of Vietnam as they failed to meet food safety regulations, well above the six shipments in the whole of 2020, said Ngo Hong Phong, deputy head of the National Agro-Forestry-Fisheries Quality Assurance Department (NAFIQAD) under the Ministry of Agriculture and Rural Development.

At a conference on seafood disease prevention and control in the north held on March 19 in Hanoi, Phong said that despite the quality of Vietnamese seafood products having improved significantly, the number of returned shipments from China remained high, Thanh Nien Online newspaper reported.

China has informed that some Vietnamese frozen and heat-processed shrimp shipments were found to be positive for the infectious hypodermal and haematopoietic necrosis and white spot syndrome viruses.

NAFIQAD has asked the Chinese competent agencies to provide scientific and legal foundations to arrive at such a conclusion.

Besides China, some other importing markets have changed their regulations on the food safety certification for imports.

Specifically, in South Korea, shrimp products meeting requirements on heat processing will be exempted from tests for diseases. However, the long heat processing can affect the color and taste of the products.

NAFIQAD has asked the competent agencies in South Korea to amend this regulation to ensure the safety and quality of the products.

In addition, this country has required that exporters must have certificates proving that their seafood products do not catch the decapod iridescent virus 1, tilapia lake virus, necrotizing hepatopancreatitis, salmonid alphavirus and acute hepatopancreatic necrosis disease.

This regulation will be applied from August 1.

HCMC’s investment working group removes obstacles facing 35 projects

An investment working group of the HCMC government has removed obstacles facing 35 projects with a combined investment of VND320 trillion over the past three years, said director of the municipal Department of Planning and Investment Le Thi Huynh Mai.

On March 19, the HCMC government held a conference to review the working group’s performance after three years of establishment with the participation of local and foreign enterprises, the local media reported.

At the conference, Mai said that the obstacles are removed, the next phases of the 35 projects will be executed.

The working group has given instructions on the removal of obstacles for 92 projects, comprising 51 real estate projects, 21 traffic infrastructure projects, 18 social infrastructure projects and two others relating to production activities.

As for the remaining 57 projects, the competent agencies have directed specialized agencies to consult with the relevant ministries and agencies or asked for the prime minister’s directions to complete procedures to continue work on the projects.

In addition, the investment working group has received, classified and handled 108 proposals of enterprises and investors.

At the conference, the HCMC government granted investment certificates for eight projects with a total investment of over VND23.1 trillion and approved the investment in five projects with a combined investment of nearly VND15 trillion.

The city also granted the construction license for the Co Giang apartment building project in District 1 of Dat Viet Development JSC with an estimated investment of VND3 trillion.

The municipal government also handed over the Government’s resolution to Lotte Properties HCMC Co., Ltd, allowing it to execute the Thu Thiem Eco Smart City project costing VND20.1 trillion at the 2A functional area in the Thu Thiem New Urban Area in Thu Duc City.

The investment working group was established in 2017 by the HCMC government and led by municipal chairman Nguyen Thanh Phong. Its members are municipal vice chairmen and representatives of some departments and agencies.

HCMC approves toll collection plan for Hanoi Highway expansion project

The Standing Board of the HCMC Party Committee has given the green light for a toll collection plan to recoup the investment capital for a build-operate-transfer (BOT) project expanding the Hanoi Highway and a section of the National Highway No.1, with fee collection scheduled to start from April 1.

The municipal Party Committee on March 18 announced the conclusion of its standing board on the toll collection issue, stating that the HCMC Government will issue the maximum road tolls at least 10 days before the start of the toll collection.

After one year of collecting toll fees, the city government will have to order the Department of Transport to work with the project’s investor to review the number of vehicles traveling through the toll gate on the highway, compare it to the earlier approved toll revenue estimate and send it to the city government for adjustment if need be. The review is aimed at ensuring a fair share of the benefit for the State, road users, the investor.

Besides this, the city’s Party Committee told the city government to review the signed BOT contract and annex to the contract, the financial plans and maximum road toll rates that were issued to sign the adjusted annex to the contract in line with prevailing regulations.

In late December 2017, the city government suspended the fee collection as it had recovered the capital for the existing Rach Chiec Bridge on the highway, with a total investment cost of VND1 trillion at that time.

The fee collection plan for the BOT Hanoi Highway expansion project was originally planned to start after the completion of the fee collection to recoup investment for the Rach Chiec Bridge. However, the plan could not be executed as the expansion project did not reach completion as scheduled.

The Hanoi Highway expansion project was approved in 2009, with total investment exceeding VND2.5 trillion. In 2016, its investment was revised upward to over VND4.9 trillion.

VND36 trillion expy planned to link HCMC, Binh Duong, Binh Phuoc

The HCMC Party Committee worked with the Binh Phuoc Party Committee today, March 18, to come up with a plan to build an expressway linking HCMC, Binh Duong and Binh Phuoc from now until 2025, with total capital of VND36 trillion.

The expressway running through HCMC, Thu Dau Mot (Binh Duong Province) and Chon Thanh (Binh Phuoc Province) will contribute to completing the traffic network of the southern region, the local media reported.

Approved at the prime minister’s Decision 568/2013, the HCMC-Thu Dau Mot-Chon Thanh expressway would be 69 kilometers long and have six to eight lanes, with a total investment of VND24 trillion. The projected expressway, which would be carried out before 2030, is set to start from Binh Phuoc Intersection in HCMC and end at Chon Thanh District in Binh Phuoc.

The project would be expanded to the Hoa Lu International Border Gate to connect with Cambodia.

However, Binh Phuoc proposed changing the direction of the expressway to further develop traffic infrastructure for the three localities in the coming time.

As such, the total investment of the expressway will be revised up by VND12 trillion to VND36 trillion.

Accordingly, the expressway will be 70 kilometers long and 64 meters wide and have six to eight lanes. The section running across HCMC will be 1.5 kilometers long from Go Dua Intersection to the border with Binh Duong, with total capital of VND3 trillion.

The section running through Binh Duong will be 57 kilometers and cost VND30 trillion, while the remaining 11.5 kilometers of the expressway in Binh Phuoc is set to require VND3 trillion.

The expressway project will receive VND17 trillion from the State budget and investors, according to Binh Phuoc Province’s proposal.

In January, while working with Binh Phuoc Province, Prime Minister Nguyen Xuan Phuc assigned the province to develop the HCMC-Thu Dau Mot-Chon Thanh expressway under the public-private-partnership format.

Once in place, the expressway will help shorten the travel time from HCMC to Binh Duong and Binh Phuoc.

TAB makes multiple proposals on international tourism resumption

The Vietnam Tourism Advisory Board (TAB) has sent Prime Minister Nguyen Xuan Phuc multiple proposals to resume the international tourism segment, including studying Covid-19 vaccine passports and Covid-19 travel insurance and testing tourists before flights and after arriving at tourist sites.

TAB threw its support behind the Government’s viewpoint that it would not compromise on public health for economic benefits.

However, tourism is a key economic sector of Vietnam, generating a revenue of more than US$30 billion per year and employing a large number of people. Therefore, it is necessary to facilitate international flights and seek markets for travel firms and hotels.

Creating favorable conditions for international flights will also help foreign-invested firms which are operating in Vietnam as they need foreign experts for their projects.

Besides the Covid-19 vaccination programs, many countries that are Vietnam’s rivals in the tourism sector have come up with plans to open their markets to facilitate the travel of entrepreneurs, experts and tourists.

The Vietnamese Government and competent agencies should consider opening the market in a safe and sustainable manner in order not to lag behind. However, there should be a roadmap to reopen the market.

TAB supported the Government’s policies to ensure safety for tourists, experts and others to prevent risks of community transmission, adding that the Ministry of Finance should allow insurance companies in Vietnam to sell Covid-19 travel insurance products, applicable to all foreigners coming to Vietnam and Vietnamese tourists traveling abroad.

The insurance will ensure benefits and safety for tourists, travel companies and local authorities in case of tour delays or cancellations.

In addition, TAB proposed including tourism sector employees in the list of priority people to receive Covid-19 vaccines. The Government can also consider allowing enterprises’ owners to import Covid-19 vaccines.

Together with activities to reopen the market safely, marketing activities are also important to attract visitors.

According to TAB, the local tourism sector should develop promotional programs aimed at foreign tourists with the participation of both the State and the private sector. TAB is willing to cooperate with the Vietnam National Administration of Tourism and other organizations to develop promotion programs.

Regarding the visa policies, to improve the local market’s competitiveness, Vietnam should improve its policies. TAB suggested continuing the visa exemption policy for 30 days for citizens from the countries eligible for the policy before the pandemic and adding Australia, New Zealand, India and the remaining European countries to the list of countries entitled to the visa-waiver program.

Southern localities act to entice more tourists

Tourism authorities and travel operators in the south have adopted various measures to attract tourists to their regions during the post-Covid-19 period, including practicing Covid-19 safety measures effectively, opening new tourist attractions and offering new tourism products and services.

Nguyen Ngoc Thuong, director of the Department of Culture, Sports and Tourism in Dong Thap Province, said that the province has recognized 14 more community-based tourism sites in the year to date, which contributed to diversifying tourism products in this Mekong Delta province known for lotus fields, reported VietnamPlus.

In HCMC, travel operators have designed and introduced tours with convenient itineraries to safe destinations to meet the demands of various groups of customers.

Tran Doan The Duy, general director of Vietravel, said that Vietravel is offering customers a number of tours using small-sized cars as well as others where customers can use their own vehicles.

Besides this, many tourists have opted for HCMC tours via waterway vehicles.

In addition, a Saigontourist representative said that the HCMC-based travel company had designed tourism products suited to customers’ needs such as tours to domestic, virus-free destinations across the country, with one-day or two- to five-day tours to the Rin Rin Park tourist area in HCMC’s Hoc Mon District, Cu Chi Tunnel in the city’s Cu Chi District or other tourist hotspots in Tay Ninh Province and the Central Highlands.

As for the neighboring province of Dong Nai, Buu Long Investment and Development Company and Hoang Gia Bao Trading and Services Company in the province inked a deal to operate water-based tourism routes on the Dong Nai River, aimed at attracting domestic visitors as international tourism is yet to resume due to the pandemic.

Aside from these measures to boost the domestic tourism segment, local tourism authorities have come up with strategic plans to develop sustainable tourism and contribute to the local socioeconomic growth.

Cao Xuan Thu Van, vice chairwoman of the government in Bac Lieu Province, revealed that this Mekong Delta province set goals to develop its tourism in a sustainable and humane manner by developing wind power tourism and hi-tech agro tourism.

In the coastal Ba Ria-Vung Tau Province, the province has plans to design tourism products by effectively tapping local natural resources, leisure tourism, eco tourism, cultural and festival tourism, community-based tourism and hi-tech agro tourism, according to Trinh Hang, director of the provincial Tourism Department.

Vietnam becomes second largest woodwork exporter

Despite the impact of the coronavirus pandemic, in 2020, Vietnam surpassed Poland, Germany and Italy to become the world’s second biggest wood and woodwork exporter, after China.

Vietnam’s forestry export revenue amounted to US$13.2 billion in 2020, up 16.4% against 2019, Nguyen Chanh Phuong, vice chairman of the Handicraft and Wood Industry Association of HCMC (HAWA), announced at a ceremony to launch the Vietnam Furniture Matching Week on March 17.

This was the only sector in Vietnam to achieve strong growth for many consecutive years. Between January and February this year, Vietnam exported wood and woodwork worth US$2.4 billion, up 50% year-on-year.

The growth resulted from the order shift of many customers from some countries which have been hit hard by the coronavirus. Besides, many firms said that the Sino-U.S. trade tension hindered China’s woodwork exports to the United States.

Local woodwork players have secured many orders for wood and woodwork from U.S. customers.

“Due to the ongoing health crisis, to overcome the hardship and develop the sector, local wood firms should use new technology, speed up digital transformation and diversify their methods to access customers,” said Phuong.

Echoing the view, Duong Thi Minh Tue, a member of the Standing Committee of HAWA, said that to maintain the position, retaining customers and tapping more import markets should be taken into account.

In March and April each year, a large number of orders are often placed by international buyers at multiple big fairs in Asia.

However, due to the coronavirus pandemic, these annual events will not take place, so firms should optimize online channels and ecommerce platforms to attract customers.

The Vietnam Furniture Matching Week is set to take place from April 12 to 19 with the aim of digitalizing exhibition, fair and trade activities, said Tue.

The event will feature the Furniture Sourcing Day in HCMC on April 14, which will attract the participation of over 300 local and international manufacturers and partners such as Kingfisher, IKEA, Ashley and Te Rite.

The Vietnam Furniture Matching Week will access global furniture importers though some online programs on the online platform, hopefairs.com.

The Online Exhibition and Online B2B Matching will introduce over 100 Vietnamese producers with some 10,000 products.

As the world’s second largest furniture exporter, Vietnam is one of the first destinations for international woodwork buyers, Phuong said.

Plan to develop largest port in Mekong Delta to be submitted next month

The Ministry of Transport will supplement an infrastructure development plan to build Tran De Port in the Mekong Delta province of Soc Trang as the largest seaport in the delta. This scheme will be included in a proposal the ministry will submit to the Government for approval next month to develop five traffic subsectors—roads, waterways, railways, aviation and navigation— in the Mekong Delta and the country as a whole.

At the third conference on climate resilient and sustainable development of the Mekong Delta held in Can Tho City last weekend, Minister of Transport Nguyen Van The said the port would be developed to be able to receive vessels of up to 100,000 tons.

The ministry has asked 13 Mekong Delta localities to adjust their traffic development plans to match the central traffic system.

The said the region needed a deep-water port to directly transport cargo to other parts of the world and vice versa.

Private investment will be mobilized for the port development project. Together with the Can Tho International Airport, the Tran De International port will help the region in economic restructuring.

In addition, some areas with limited strengths and potential will be converted into industrial parks or clusters to create jobs for local laborers and a driving force for the region’s development.

The Tran De port has been proposed to cover some 5,750 hectares, including service and logistics areas and a wharf. The port development project needs some VND40 trillion.

The port will be connected with the Chau Doc-Long Xuyen-Can Tho-Soc Trang Expressway, The added.

As for the public investment plan in the 2021-2025 period, the Ministries of Transport and Planning-Investment have agreed that VND57 trillion will be spent on the transport sector in the Mekong Delta, surging 96% over the 2016-2020 period.

Completion of two key projects in Thu Thiem delayed to 2023

The competent departments and agencies in HCMC are completing procedures to extend the deadline for the completion of two key projects in the Thu Thiem New Urban Area in Thu Duc City—four main roads and the Thu Thiem 2 Bridge—to 2023.

The two projects are important to connect the new urban area with the central business District 1 but have been repeatedly delayed, Thanh Nien Online newspaper reported.

In August last year, the State Audit of Vietnam (SAV) pointed out shortcomings in the two projects: slow site clearance, tardiness in signing an appendix to extend the execution time of the projects and slow confirmation of the completed workload to make payments.

In addition, the approved technical design for the Thu Thiem 2 Bridge project had some adjustments but the initial design has yet to be updated.

Therefore, SAV asked the HCMC government to direct the governments of District 1 and Thu Duc City, the HCMC Transportation Works Construction Investment Project Management Authority (TCIP), the Thu Thiem New Urban Area’s management board and other relevant agencies to adjust the deadline for the completion of these two projects and specifically complete the site clearance and infrastructure relocation to hand over the cleared site to the investors at the earliest.

The HCMC government later assigned the municipal Department of Transport to review and make proposals on the adjustment of the projects’ completion deadline. Early last month, the department consulted with other departments and agencies over the draft content of an appendix of a build-transfer contract with the investor of the projects, Dai Quang Minh Real Estate Investment JSC.

The Thu Thiem 2 Bridge project costs nearly VND3.1 trillion. Work on it started in 2015 and was expected to be completed in April 2018 but has been repeatedly delayed as the site clearance for the project has yet to be completed.

Land lots of six households, two organizations, Ba Son JSC, the High Command of the Navy and the Government Office in District 1 have yet to be handed over.

In September 2020, the investor reported to TCIP that it had completed works valued at some VND499 billion. However, TCIP has yet to make the payment due to the lack of the unit price at the time of signing the contract to confirm the value of the completed workload.

Dai Quang Minh also proposed the city issue the land use right certificate for it as it has paid some VND800 billion to the city’s budget.

Meanwhile, the four main roads in the new urban area require an estimated investment of nearly VND12.2 trillion. Work on them began in February 2014 and was expected to be completed within 36 months. However, they are over 87% complete.

More than 1.8 hectares of land needed for the project has yet to be handed over. In June 2017, the municipal government and Dai Quang Minh signed an appendix to extend the deadline for their completion.

Deputy director of the HCMC Department of Transport Phan Cong Bang said the District 1 government affirmed to hand over the cleared site for the Thu Thiem 2 Bridge project next quarter. If the site is handed over in June, the project will be completed next year as the investors have committed to completing the project 12 months after receiving the cleared site, Bang noted.

Regarding the four main roads, Bang said the Thu Duc City government has yet to confirm the deadline to hand over the site.

Vietnam’s auto imports surge in Feb

The number of completely-built-up (CBU) automobiles, mainly from Thailand and Indonesia, imported into Vietnam in February surged by some 2,000 units, or 20.3%, from the January figure, according to data from the General Department of Vietnam Customs.

Vietnam imported some 10,040 cars worth US$209 million last month, with over 5,190 Thai vehicles, 3,300 units from Indonesia and 589 from China. The number of autos imported into Vietnam from the three countries accounted for 90% of the total auto imports.

Of the total, over 6,920 under-nine-seat cars valued at US$127 million have undergone customs clearance procedures, soaring 33% month-on-month, Phap Luat Online reported.

Among the imported under-nine-seat cars, Thailand shipped some 3,280 units to Vietnam, up 13.7% month-on-month, while Indonesia supplied 3,060 cars, a 2.2-fold increase.

Besides, the number of trucks undergoing customs clearance procedures was some 2,520 worth US$57 million, up 12% in volume but down 5.9% in value, month-on-month.

As many as 1,920 trucks were shipped to Vietnam from Thailand, up 31.5% month-on-month, while Indonesia and China exported 241 and 202 trucks, respectively, to Vietnam. In addition, Vietnam imported 600 special-use vehicles valued at US$25.3 million.

As of February, over 18,360 CBU cars had been imported into Vietnam, up 23.7% year-on-year, with the number of under-nine-seat autos rising by 13%.

MAUR suggests using domestic construction materials to continue HCMC’s first metro line

To cushion the impact of the Covid-19 pandemic on HCMC’s first metro line project, the HCMC Management Authority for Urban Railways (MAUR), the project’s investor, has proposed using locally-made construction materials and equipment that meet technique requirements to continue the development of the project.

This was among the proposals that MAUR sent to the HCMC government on March 17 amid the pandemic hindering the import of materials, equipment and the entry of foreign experts working on the metro line, reported VnExpress.

MAUR also came up with a plan in which it will call on eligible subcontractors in Vietnam to join the project. Besides this, the investor suggested hiring a third party to participate in the test and check of the project as well as employing the third party’s personnel to work in their countries to minimize travel amid the health crisis.

The investor also planned to allow contractors to test and import equipment for the metro line from countries that have brought Covid-19 under control and eased travel restrictions.

These measures are expected to facilitate the construction of the metro, as the project is reaching the installation and trial run stage, while most of the materials, equipment and experts to serve the work come from abroad.

Due to the impact of Covid-19, the city’s first metro line in 2020 is just 82% complete, falling behind the schedule previously set at 85%.

According to MAUR, the two construction packages—CP1b (an underground section running from Ba Son to Opera House stations) and CP2 (which comprises an elevated track and depots)—felt the major impact as the entry of foreign experts in charge of these packages has been delayed since last year. Consequently, a package consisting of the purchase and installation of electrical systems, the rolling stock and rail was delayed as well, impacting other works and resulting in higher costs.

MAUR said it had adopted many measures earlier to address these issues, such as providing support in entry procedures and work permits for foreign experts and engineers as well as organizing remote working sessions.

Private investment proposed for HCMC-Can Tho express railway project

The Southern Institute of Science and Technology has proposed executing the HCMC-Can Tho high-speed railway project under the public-private-partnership (PPP) model, and the total required investment of some US$10 billion will be sourced from private enterprises.

Under the proposal sent to the Ministry of Transport, the institute also mentioned the adjustment of the railway’s direction and the development of nine stations in satellite urban areas, Dan Tri news site reported.

The main route from HCMC to Can Tho will need an estimated investment of more than US$4.4 billion, while a branch from the Thanh Phu station in Long An Province to the Hiep Phuoc Port in HCMC will require US$791.35 million. The remaining US$4.6 billion will be spent on stations and other facilities.

The express railway will have a total length of 134.9 kilometers, passing through five localities, comprising HCMC, Long An, Tien Giang, Vinh Long and Can Tho. The railway will stop at nine stations, beginning at Tan Kien Station in HCMC and ending at Can Tho Station in Can Tho City.

In addition, the Thanh Phu-Hiep Phuoc branch will be 44 kilometers long, running through HCMC and Long An.

The Southern Institute of Science and Technology has also proposed adjusting the direction of the railway to the right of the HCMC-Trung Luong-My Thuan Expressway, completely different from the previous plan.

According to the institute, with the adjustment, the railway will share a corridor with the expressway, reducing the separation between residential areas and industrial parks. Moreover, the land bank for the satellite urban area development will be larger.

The adjustment will also help shorten the length of the railway by five kilometers, saving nearly US$200 million.

A leader of the Vietnam Railway Authority said the HCMC-Can Tho express railway is an important traffic route which will help ease the traffic on roads.

The authority assigned the project’s management board to choose a consulting firm to conduct a prefeasibility report for the project using the State budget.

As for the financial plan proposed by the Southern Institute of Science and Technology, the authority asked the institute to make it more specific. The institute should clarify the investment method and financial plan in case foreign investors want to get involved in the project.

Completion of two key projects in Thu Thiem delayed to 2023

The competent departments and agencies in HCMC are completing procedures to extend the deadline for the completion of two key projects in the Thu Thiem New Urban Area in Thu Duc City—four main roads and the Thu Thiem 2 Bridge—to 2023.

The two projects are important to connect the new urban area with the central business District 1 but have been repeatedly delayed, Thanh Nien Online newspaper reported.

In August last year, the State Audit of Vietnam (SAV) pointed out shortcomings in the two projects: slow site clearance, tardiness in signing an appendix to extend the execution time of the projects and slow confirmation of the completed workload to make payments.

In addition, the approved technical design for the Thu Thiem 2 Bridge project had some adjustments but the initial design has yet to be updated.

Therefore, SAV asked the HCMC government to direct the governments of District 1 and Thu Duc City, the HCMC Transportation Works Construction Investment Project Management Authority (TCIP), the Thu Thiem New Urban Area’s management board and other relevant agencies to adjust the deadline for the completion of these two projects and specifically complete the site clearance and infrastructure relocation to hand over the cleared site to the investors at the earliest.

The HCMC government later assigned the municipal Department of Transport to review and make proposals on the adjustment of the projects’ completion deadline. Early last month, the department consulted with other departments and agencies over the draft content of an appendix of a build-transfer contract with the investor of the projects, Dai Quang Minh Real Estate Investment JSC.

The Thu Thiem 2 Bridge project costs nearly VND3.1 trillion. Work on it started in 2015 and was expected to be completed in April 2018 but has been repeatedly delayed as the site clearance for the project has yet to be completed.

Land lots of six households, two organizations, Ba Son JSC, the High Command of the Navy and the Government Office in District 1 have yet to be handed over.

In September 2020, the investor reported to TCIP that it had completed works valued at some VND499 billion. However, TCIP has yet to make the payment due to the lack of the unit price at the time of signing the contract to confirm the value of the completed workload.

Dai Quang Minh also proposed the city issue the land use right certificate for it as it has paid some VND800 billion to the city’s budget.

Meanwhile, the four main roads in the new urban area require an estimated investment of nearly VND12.2 trillion. Work on them began in February 2014 and was expected to be completed within 36 months. However, they are over 87% complete.

More than 1.8 hectares of land needed for the project has yet to be handed over. In June 2017, the municipal government and Dai Quang Minh signed an appendix to extend the deadline for their completion.

Deputy director of the HCMC Department of Transport Phan Cong Bang said the District 1 government affirmed to hand over the cleared site for the Thu Thiem 2 Bridge project next quarter. If the site is handed over in June, the project will be completed next year as the investors have committed to completing the project 12 months after receiving the cleared site, Bang noted.

Regarding the four main roads, Bang said the Thu Duc City government has yet to confirm the deadline to hand over the site.

Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes

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Vietnam targets US$10 billion from fruit, vegetable exports by 2030

March 25, 2021 by en.nhandan.org.vn

Under a project to develop the fruit and vegetable process sector during 2021-2030 recently approved by the Prime Minister, Vietnam targets to attract investment in 50-60 fruit and vegetable processing establishments, and build several modern groups and enterprises who have good competitive capacity.

With a view to achieving the goals, Vietnam will invest heavily to improve processing ability, give priority to processing key fruits and vegetables which have high values, set up material zones, and develop markets for the products.

The project laid stress on the necessity to build processing and packaging facilities and storage warehouses and install suitable equipment to reduce post-harvest losses.

Besides, it is crucial to attract investment to ensure that all of the production facilities will be well equipped with necessary machines by 2030.

Along with encouraging businesses to invest in food irradiation centres at large-scale fruit and vegetable farming areas so that their products meet international standards, the country will promote intensive processing and diversify processed products.

Additionally, the country will establish specialised fruit and vegetable cultivating areas which are able to provide some 5-6 million tonnes of high-quality products for processing by 2030.

Filed Under: Uncategorized vietnam news, vietnam business, vietnam travel, vietnam culture, vietnam sports, vietnam politics, hanoi, saigon, ho chi minh city, apec, da nang, hue, hoi an, ..., top 10 exported fruits in the philippines, dirty 10 fruits vegetables, 10 day fruit and vegetable diet

VIETNAM BUSINESS NEWS MARCH 26

March 26, 2021 by vietnamnet.vn

Anti-dumping investigations launched into imported welding material products

The Ministry of Industry and Trade (MoIT) has issued Decision No. 947/QD-BCT on launching an anti-dumping investigation into some types of welding material products originated from China, Thailand and Malaysi.

The materials subjected to the investigation belong to the following HS codes: 7217.10.10; 7217.30.19; 7217.90.10; 7229.20.00; 7229.90.20; 7229.90.99; 8311.10.10; 8311.10.90; 8311.30.91; 8311.30.99; 8311.90.00.

According to the law, after initiating the investigation, the ministry will send questionnaires to relevant parties to collect information so as to analyse and evaluate the situation. If necessary, based on preliminary investigation results, the ministry may apply temporary anti-dumping measures to prevent losses for domestic production.

Along with information verification, the ministry will organise public consultations so that relevant parties can discuss and provide information and have a voice in the issue before giving out final conclusion.

At the same time, the ministry recommends all organisations and individuals that are importing, exporting, distributing, trading and using the investigated products to register as related parties and provide necessary information for the ministry to protect their legitimate rights and interests.

Besides, the ministry may apply retroactive anti-dumping duty on products subjected to taxation within 90 days before the imposition of temporary anti-dumping duty.

Therefore, the ministry recommended that organisations and individuals in the process of signing contracts for importing, distributing, trading and using goods under investigation should pay attention to the possibility of being subject to temporary anti-dumping and retroactive anti-dumping taxes.

Vietnam ranks 96th on global sustainable tourism list

A Euromonitor International report ranked Vietnam as 96th of 99 countries for sustainable tourism.

The report analysed seven aspects of sustainable tourism, including environmental, social and economic sustainability, country risk, and sustainable tourism demand, transport and lodging.

Globally, Sweden was ranked the most sustainable destination for travel, followed by Finland and Austria. Rounding out the top five were Estonia and Norway.

The research firm predicted there would be growing awareness among consumers, businesses and governments to prioritize the planet alongside people and profit when global tourism resumes following travel restrictions amid the pandemic.

Some popular tourist destinations in Vietnam have been eyeing sustainable tourism development. For instance, Hoi An in central Vietnam is restricting the use of single-use plastic items and plastic bags as it looks to boost sustainable travel growth.

Vietnam becomes 10th largest supplier of wooden furniture to French market

VIETNAM BUSINESS NEWS MARCH 26

With France moving to increase its wooden furniture imports, Vietnam has become the 10th largest supplier of this product to the fastidious market, according to data released by Eurostat, the statistical office of the European Union.

These statistics show that the European country imported 1.08 million tonnes of wooden furniture worth a total of US$3.75 billion last year, posting a decline of 6.8% in volume and 6.9% in value compared to figures recorded in 2019.

According to the Italian Centre for Industrial Studies, France represents an important part of the furniture sector both in Europe and globally, making up the second largest import market in Europe.

Most notably, France has always been a key Vietnamese trading partner within the EU, with the country making up the Southeast Asian nation’s fourth largest export market in the bloc.

Furthermore, the nation is the 10th largest supplier of wooden furniture to the French market, accounting for only 3.2% of the total import volume, a relatively low figure in comparison to import demand within the fastidious market.

Trade experts have therefore advised Vietnamese firms to seize upon the various opportunities brought about by the EU-Vietnam Free Trade Agreement (EVFTA) in order to boost their export of furniture products to the French market in an effective manner.

At present, China remains the largest supplier of living room and dining room furniture to France, followed by Poland, Italy, Belgium, Spain, Portugal, and Vietnam.

With the country being the fifth largest supplier of wood frame chairs to France, it is trailed by China, Italy, Romania, and Poland. However, the import volume and value of Vietnamese wooden framed chairs endured a downward trajectory last year.

HCM City helping RoK businesses to tackle difficulties

The People’s Committee of Ho Chi Minh City, in collaboration with the Consulate General of the Republic of Korea (RoK), for the first time organised a dialogue between city leaders and RoK enterprises on March 25 to help them deal with difficulties in investment and business.

Chairman of the municipal People’s Committee Nguyen Thanh Phong told the dialogue that since diplomatic ties were set up in 1992, Vietnam and the RoK have seen rapid development in bilateral relations, becoming strategic cooperative partners in 2009.

Economic cooperation has always been an important pillar in the bilateral relations, and the RoK has been a key economic partner of Vietnam for many years.

As of the end of 2020, the RoK had over 8,900 valid investment projects in Vietnam totalling 70.65 billion USD, ranking it first among 139 countries and territories investing in the country, in terms of both capital and project numbers.

Last year, the RoK was Vietnam’s third-largest trading partner, with two-way trade hitting 66 billion USD.

For HCM City, the RoK was the fifth-largest export market and third-largest import market, with turnover reaching 1.8 billion USD and 2.8 billion USD, respectively.

In the first two months of 2021, the city and the RoK saw two-way export and import value of 366 million USD and 701 million USD, up 30.3 percent and 47.3 percent year-on-year, respectively.

Addressing the dialogue via videoconference from Hanoi, RoK Ambassador to Vietnam Park Noh-wan said his country’s enterprises always pay attention to and hope to participate in large-scale infrastructure projects, such as the city’s smart city planning and the Long Thanh International Airport project.

Kim Heung Soo, President of the Korean Business Association in Vietnam, proposed simplifying and improving administrative procedures related to foreign investment.

Simplifying administrative procedures can help reduce time and costs for businesses, thus contributing to directly increasing business competitiveness, improving the city’s business and investment environment and attracting more foreign investment, Kim said.

Phong requested local departments and sectors collect ideas and recommendations from RoK for submission to higher levels for settlement./.

Binh Duong holds trade promotion event to attract Thai investors

Authorities in Binh Duong province, in collaboration with Becamex IDC – a leading developer of industrial, urban and transportation infrastructure in Vietnam – held an online conference on March 25 to promote Thai investment in the southern province.

Despite COVID-19, foreign capital poured into the province in the first three months of 2021 exceeded 400 million USD.

Boasting an attractive and open business climate, the accumulated number of FDI projects in Binh Duong as of the end of February neared 4,000 worth close to 38.8 billion USD. As such, the province ranked third nationwide in term of FDI attraction, just behind Ho Chi Minh City and Hanoi.

Thailand has so far injected over 647 million USD in 39 projects in Binh Duong, making it the 12th-largest of 65 countries and territories investing in the province. Thai investors have a preference for producing high-quality plastic products and industrial plastics, and for manufacturing and assembling civil electrical products.

Sanan Angubolkul, President of the Thailand-Vietnam Business Council and Vice Chairman of the Thai Chamber of Commerce, said Binh Duong’s dynamic growth has long been on the radar of the Thai business community.

Nguyen Thanh Truc, Vice Chairman of the provincial People’s Committee, highlighted that there is tremendous space for investment cooperation between Binh Duong and Thailand to grow, adding that local authorities always create favourable conditions for Thai investors./.

Khanh Hoa promotes cooperation with Indian businesses

The leader of the south-central province of Khanh Hoa called on Indian investors to explore its potential and strengths and the cooperation opportunities available in localities during an online conference to promote cooperation between the two sides on March 25.

Speaking at the event, which was part of activities to realise the Vietnam-India Joint Vision on peace, prosperity, and people, reached by the Prime Ministers of the two countries on December 21, 2020, Chairman of the Khanh Hoa People’s Committee Nguyen Tan Tuan said the province boasts abundant advantages in natural landscapes and resources.

Khanh Hoa lies on a strategic location and is a gateway to the East Sea, he added.

For his part, Indian Ambassador to Vietnam Pranay Verma noted that as of last year, India had 294 projects in Vietnam with total investment of 898 million USD, mostly in the fields of energy, natural resources exploration, agricultural product processing, and coffee, sugar, and tea production.

At the same time, Vietnamese businesses had also invested about 29 million USD in the sectors of pharmaceuticals, IT, chemicals, and construction materials in India.

He said these figures should move upwards, adding that the natural landscapes and cultural diversity in Khanh Hoa could appeal to Indian visitors.

Vietnamese Ambassador to India Pham Sanh Chau highlighted India’s strengths that Khanh Hoa businesses could explore further, including infrastructure building, solar energy, IT, water resources management and use, and heritage conservation.

The Indian side underlined the country’s fields of strength, such as aquatic processing, water resources management, and waste management.

Khanh Hoa businesses also introduced cooperation opportunities in local economic, trade, and investment, especially in manufacturing, electronics, construction materials, home appliances, supporting industries, and shipbuilding and repair and warehousing at the Ninh Thuy Industrial Park (IP), one of the large IPs in the Van Phong Economic Zone.

India’s tourism sector and tourism cooperation opportunities were also explored.

Vietnam textile industry combats pandemic with PPE switch: Forbes

A surge in demand for personal protective equipment (PPE) from the manufacturing sector in Vietnam due to COVID-19 pandemic, along with the orders that flowed in from around the world helped to buoy the country’s important garment-making industry with many manufacturers rejigging their facilities to produce PPE, said an article on the forbes.com website.

The article cited statistics from Vietnam’s Ministry of Industry and Trade showing that there are more than 6,000 garment factories and textile mills in the country, and the sector employed some 3 million workers in 2020.

The Vietnamese government had initially restricted the export of goods, such as face masks, to ensure there was an adequate domestic supply to help combat the virus. But once the restrictions were lifted in March of last year, Vietnam’s manufacturers exported almost 1.2 billion masks through to December 2020 to North America, Europe and around Asia, it noted.

The article mentioned as an example Vietnam Goods and Exports (VGE) which turned to making cloth face masks.

It quoted VGE founder Anh Tran as saying that he made the decision to switch in early 2020, and sees an ongoing demand for his product.

“Despite vaccines now rolling out, the [Centers for Disease Control] is still recommending people to wear masks because it is a slow rollout, and there are still many at-risk people you can affect or be affected by,” he said.

“If vaccines are effective, you will probably see a drop-off in the wearing of masks near the end of 2021, but from now until then, it is still a massive industry that just exploded overnight.”

“Vietnam has definitely become a shining star in the global PPE trade in 2020 because prior to that most PPE was manufactured in China or the United States,” he added.

Vietnam, ASEAN countries urged to adopt green manufacturing technologies: conference

Vietnam and ASEAN countries need to adopt green manufacturing technologies to make sustainable new products and services, heard a recent international conference in southern Binh Duong province.

Dr Michael Braun, coordinator of the Enhanced Regional EU-ASEAN Dialogue Instrument project, told the ‘Cooperating with Europe for Green Manufacturing Technologies’ conference that it is important to promote technological cooperation between the European and Southeast Asian blocs for mutual benefit.

ASEAN countries have emerged as important manufacturing hubs in global supply chains, he said.

“The growing demand for environmentally sound, resource- and energy-efficient products and manufacturing has created a hunger for new green manufacturing technologies.”

With its rich technology and research landscape, innovative enterprises and dedicated green growth strategies, Europe is a major source of such green technologies, he said.

“Green technologies are key to sustainable new products, services and manufacturing processes, and are essential for realising green growth.”

For ASEAN member states, green technologies will help make the best possible use of their natural and energy resources and protect the health and well-being of workers and consumers.

Hans Farnhammer, head of Cooperation for the European Union Delegation to Indonesia, Brunei, Darussalam and ASEAN, said: “Green production has become the core of sustainable development.”

Prof TAN, Reginald Beng Hee, of the National University of Singapore, said, “Binh Duong province is set to become the next destination for green technology transfer.”

Nguyen Viet Long, director of the province Department of Science and Technology, said comprehensive transport infrastructure and quality human resources play a major role in attracting foreign investors, especially from Europe, with green manufacturing technologies.

The Government needs to invest in improving infrastructure and offer incentives to promote the triple helix model of university–industry–government cooperation, he said.

Joanna Drake, deputy director of the European Commission’s Directorate-General for the Environment, said under the European Green Deal, the EU recognises that climate change and environmental degradation are an existential threat to Europe and the world.

To overcome the challenges, the EU needs a new growth strategy that would transform it into a modern, resource-efficient and competitive economy in which there are no net emissions of greenhouse gases by 2050, and economic growth is decoupled from resource use, she said.

The Deal aims to make the EU’s economy sustainable by turning climate and environmental challenges into opportunities, focusing on investments in green technologies, sustainable solutions and innovative businesses, she said.

It also lays out a path for a sustainable transition that is socially fair and ensures ‘no person or place is left behind’, she said.

The EU therefore supports ASEAN and its member states with initiatives related to climate-change resilience and adaptation, environmental protection, including protecting bio-diversity, and disaster preparedness and response, she added.

The two-day conference that began on March 22 was held as part of the 2021 EU Industry Week organised by the provincial People’s Committee and the European Commission./.

Expansion of sugarcane expected to balance sugar market

The government needs to apply customs duties policies that would help increase the purchase price of sugarcane.

The prompt imposition of anti-dumping and countervailing duties on sugar originating from Thailand has encouraged domestic farmers continue to expanding raw material areas. However, local experts suggested that strengthening the link between farmers and businesses is a long-term measure to ensure the sustainable development of the sugar industry.

Since the imposition took effect from this March, the retail price of sugar has increased from VND1,500 (US$0.06)-VND2,000 (US$0.08) per kg compared to the end of 2020. The purchase price of raw sugarcane from local growers also increased by VND50,000 (US$2.1) to VND100,000 (US$4.3) per ton.

The average buying price is currently at about VND950,000 (US$41.2)-VND1 million (US$43.3) per ton, Nguyen Cam Trang, Deputy Director of Import and Export Department under the Ministry of Industry and Trade (MoIT) told the seminar entitled “Opportunities and challenges for the sugar industry” held on March 23 in Hanoi.

Being of the same mind, Chu Thang Trung, Deputy Director of the MoIT’s Trade Remedies Authority of Vietnam, said that local manufacturers have increased the purchase price of sugarcane materials by 10%-13% compared to the previous crops.

“This helps farmers remove difficulties and encourages them to consider replanting sugarcane and expanding areas of cultivation,” he said.

Nguyen Van Loc, Acting General Secretary of the Vietnam Sugarcane and Sugar Association (VSSA) said that the domestic sugar industry has been badly damaged by massive import of sugar in the past, so the recovery process takes a long time.

“However, the government needs take on a policy on customs duties that would help increase the purchase price of sugarcane,” he said.

The Department of Agricultural Products Processing and Market Development under the Ministry of Agricultural and Rural Development forecast a shortage of  raw sugarcane supply for factories in this year’s crop.

Currently, only 29 out of 40 sugar factories are still in operation. The total output of sugarcane in Vietnam is only around 5.3 million tons, equivalent to 530,000 tons of sugar.

Vietnam’s domestic sugar price remains the lowest in the region. Local experts said that in order to develop sustainably, it is still necessary to build a close linkages between businesses and farmers, developing quality and sustainable sugarcane material areas, and investing in technology to improve product quality.

Recently, the government has slapped temporary anti-dumping duty of 33.88% and countervailing duty of 44.88% on sugar originating from Thailand.

The decision comes after the MoIT last September initiated an anti-dumping and countervailing investigation on imported sugar from Thailand on the basis of the request of  the VSSA and domestic sugar producers.

VIB eyes over 7.5 trillion VND in pre-tax profit in 2021

The Vietnam International Bank (VIB) targets posting a pre-tax profit of more than 7.5 trillion VND (324.18 million USD) in 2021, a year-on-year rise of 29 percent, the bank’s extraordinary shareholder’s meeting on March 24 heard.

Under its business plan, the bank aims to have more than 300 trillion VND in total assets, up 26 percent against 2020.

With strong financial capacity and a specific business strategy, the bank decided to increase its capital by paying dividends in bonus shares and issuing stocks. With this, its charter capital will increase from over 11 trillion VND to nearly 16 trillion VND, helping it optimise asset growth while ensuring business safety ratios in 2021.

It will continue to develop new financial measures to bring an excellent experiences to customers.

VIB’s total assets increased 33 percent last year to 245 trillion VND. As its pre-tax profit grew 42 percent to more than 5.8 trillion VND, the return on equity (ROE) ratio reached 30 percent, helping VIB retain its top position in the banking sector in terms of business efficiency in the context of bad debts falling under 1.5 percent.

VIB is a pioneer in applying Basel III standards in risk management, after becoming the first bank in Vietnam to complete the three pillars of Basel II.

VIB began trading its stock on the Ho Chi Minh Stock Exchange in November 2020. The stock is now fluctuating around 43,800 VND./.

Vinh Long expects to turn tourism into spearhead economic sector

The Mekong Delta province of Vinh Long has mobilised resources to promote tourism development, with the aim of turning tourism into a spearhead economic sector by 2030.

During a conference held on March 24 to review the implementation of a resolution on tourism development in Vinh Long in the 2015-2021 period, participants discussed the province’s potential and advantages for tourism development, as well as measures to fully tap those strengths.

Their discussions specially focused on how to stimulate tourism demand in the province amid complex developments of the COVID-19 pandemic.

Vice Secretary of the provincial Party Committee Bui Van Nghiem said the local authorities have mobilised all resources for tourism development, and encouraged travel businesses and local community to build and popularise Vinh Long’s image to visitors, gradually developing the sector into a key contributor to its economy.

The province will also continue to complete and effectively implement tourism development projects, and consider organising a tourism festival as an annual event to draw more holiday-makers.

Dialogues between the local authorities and businesses will be increased with the aim of removing difficulties facing travel companies.

Vinh Long welcomed over 6.1 million domestic and foreign visitors in the 2015-2019 period, earning nearly 1.7 trillion VND (over 73.6 million USD). The number of tourists and revenue averagely increased 11.6 percent and 25.7 percent per year.

Ba Ria – Vung Tau industrial parks await FDI post-pandemic

Industrial parks in the southern coastal province of Ba Ria – Vung Tau are making preparations to attract foreign investments that are expected to surge after the COVID-19 pandemic passes.

The 500ha Dat Do 1 Industrial Park in Dat Do district wants FDI to account for 70 percent of all investment and domestic projects for only 30 percent, with priority given to supporting industries and hi-tech projects.

This year it attracted six local investors but no foreign investment.

Due to the ongoing COVID-19 pandemic, foreign investment had been severely impacted, Nguyen Khac Thanh, general director of Tin Nghia – Phuong Dong Industrial Park JSC, the developer of Dat Do 1 Industrial Park, said.

Many foreign investors have rented land in the park but delayed their projects since it was impossible for them to enter the country due to the travel restrictions and border closure, he said.

But his company had maintained contact with global customers and resorted to online marketing to introduce the opportunities and the procedures they have to complete to invest in the park, he said.

As a result, it managed to sign memorandums of understanding and took deposits for leases from 11 foreign investors, he revealed.

The park had helped foreign investors with investment procedures as part of efforts to attract them, he added.

The 999ha Phu My 3 Specialized Industrial Park in the province’s Phu My town has not attracted a single foreign project for more than a year due to the pandemic.

It has signed lease agreements with 10 foreign customers thanks to webinars and online marketing.

Nguyen Anh Triet, head of the provincial Industrial Park Authority, said there were incentives for industrial parks to attract investment, and administrative and land clearance procedures were being streamlined to develop industrial infrastructure.

Nearly 50 potential investors had signed MoUs and registered to lease more than 1,000 hectares of industrial land, he said.

The province planned to build eight industrial zones with more than 8,000ha by 2030 to meet the huge demand, he added./.

Vietnam targets 10 billion USD from fruit, vegetable exports by 2030

Vietnam expects to gain 8-10 billion USD from shipping fruits and vegetables abroad, with revenue of processed products accounting for at least 30 percent of the total by 2030.

Under a project to develop the fruit and vegetable process sector during 2021-2030 recently approved by the Prime Minister, Vietnam targets to attract investment in 50-60 fruit and vegetable processing establishments, and build several modern groups and enterprises who have good competitive capacity.

With a view to achieving the goals, Vietnam will invest heavily to improve processing ability, give priority to processing key fruits and vegetables which have high values, set up material zones, and develop markets for the products.

The project laid stress on the necessity to build processing and packaging facilities and storage warehouses and install suitable equipment to reduce post-harvest losses.

Besides, it is crucial to attract investment to ensure that all of the production facilities will be well equipped with necessary machines by 2030.

Along with encouraging businesses to invest in food irradiation centres at large-scale fruit and vegetable farming areas so that their products meet international standards, the country will promote intensive processing and diversify processed products.

Additionally, the country will establish specialised fruit and vegetable cultivating areas which are able to provide some 5-6 million tonnes of high-quality products for processing by 2030./.

Strong bonds with South Korean partners for deeper integration

Vietnam and South Korean businesses are expected to enjoy more investment opportunities soon and participate in the global supply chains thanks to new deals enabling them to implement investment promotion programmes.

The members of the supporting projects – Korea Electronics Technology Institute, Innovation Tech Lat, Korea Polytechnic University, and Innovative Technology Lat – will also sign similar deals with authorities and IZs in South Korea.

The agreements will help to reinforce the role of VITASK in investment promotion, along with the task of having a deep and thorough supporting programme.

According to Kyoung-Jin An, deputy director of VITASK, the cooperation will bring benefits for all sides. “We will introduce South Korean to invest in Vietnam, while simultaneously cooperating with departments and IZs to implement investment promotion programmes. Besides that, we will also connect Vietnamese businesses that want to penetrate the South

Korean market with local partners,” he said. “Regarding VITASK, the centre will be more convenient in approaching businesses, which have demand on supporting industries. In addition, it will help to improve the centre’s presence in both Vietnam and South Korea.”

After the first appraisal round of around 40 dossiers, VITASK selected 24 local suppliers to visit manufacturing facilities for the first time. The representatives of centres will visit these suppliers for a second time during the next months to select the final 16 eligible candidates.

“The scheme of this supporting programme was expected to be implemented in March, however, it will be delayed to May due to the impacts of the pandemic,” An explained. “According to the initial plan, we will select 12 candidates for the first phase. However, now the figure increases to 16 with the expectation of supporting more suppliers.”

VITASK currently cooperates with local authorities to work with the business community, which has the demand on technical support, but faces difficulties in approaching them.

“We hope to receive support from the government and relevant authorities to find suitable local suppliers, so that we can effectively implement the project,” An said.

Cooperating with South Korean ministries to establish the VITASK programme is a part of the Vietnamese government’s approach to help local suppliers improve their competitiveness.

The Vietnamese government has issued numerous regulations to promote development of local supporting industries, including Decree No.111/2015/ND-CP on incentive policies for businesses operating in supporting industries; Decision No.68/QD-TTg approving the Supporting Industry Development Programme from 2016 to 2025; the Law on Support for Small- and Medium-sized Enterprises; and Resolution No.115/NQ-CP dated August 2020 on solutions to promote supporting industry development.

The Ministry of Industry and Trade (MoIT) has also been working on an international cooperation project in terms of supporting industries, including the cooperation with Samsung to develop vendors, a scheme with South Korea’s Ministry of Trade, Industry and Energy to train technical engineers, and an additional World Bank project, among others.

Le Huyen Nga, deputy head of the Supporting Industry Division under the MoIT’s Agency for Industrial Development said, “Implementing synchronised solutions to support businesses in supporting industries will contribute to improving their competitiveness, improving the productivity and quality of their products, and leading towards smoother entry into global supply chains.”

Hanoi plans to begin construction of 43 industrial clusters in 2021

The capital city of Hanoi is planning to start construction of 43 industrial clusters in 2021, which were set up during the 2018-2020 period.

Accordingly, the municipal People’s Committee will begin construction of one industrial cluster in Quarter 1, 23 in Quarter 2, 13 in Quarter 3, and six in Quarter 4.

The city is striving to complete technical infrastructure for at least 20 industrial clusters, while attracting investment into 10-15 clusters.

All of the operating industrial clusters will have synchronous technical infrastructure, which will be managed in line with the current regulations. Furthermore, all of the newly-built industrial parks will have standardised sewage treatment stations.

Besides pushing technical infrastructure development, the city will create favourable conditions for investors to shorten investment procedures.

Hanoi has already developed mechanisms to support businesses who land investment in the industrial clusters, and issued regulations on service prices at the clusters.

Due attention will be paid to investment promotion, aiming to reach full occupancy at these industrial clusters. Competent authorities will work to improve its management over the clusters, and keep close watch on land use and illegal construction at the sites.

The city will tighten the examination of the establishment of new industrial clusters in accordance with existing regulations.

Hopes escalating for post-pandemic growth in M&A

Vietnam’s mergers and acquisitions, though rather muted in the beginning months of 2021, are expected to revive on the back of both vaccination programmes and legislative changes.

Vietnam has witnessed only a few merger and acquisition (M&A) deals since the beginning of 2021. Thailand’s SCG acquired 70 per cent stake in Duy Tan Plastics while Danish group BioMar scooped up a majority share in Viet-Uc.

Commenting on this trend, Masataka Sam Yoshida, head of the Cross-border Division of RECOF Corporation, said that this situation is just temporary, and a bright future is expected ahead. For instance, Japanese investors have become more cautious than ever after the latest wave of the pandemic in Japan.

Vietnam has been extremely successful in keeping the pandemic under control, but the strict travel restrictions make it difficult for Japanese companies to arrange short-term business travels, which are fundamental and crucial in considering and proceeding with M&A transactions. “Having said that, the rationale for the investment in Vietnam has not changed. Vietnam has much higher growth potential than Japan where the economy is too mature. We are aware that Japanese companies remain interested in Vietnam, even though they are not active at this moment,” he said.

According to RECOF’s M&A database, the number of outbound transactions from Japan decreased by 33 per cent to 557 transactions in 2020, while the same number in Vietnam declined by 30 per cent to 23. Vietnam ranked sixth as the destination country for Japan among all countries worldwide, and second only to Singapore in Southeast Asia.

Yoshida added, “COVID-19 has been the sole reason for the recent sluggish M&A transactions between Vietnam and Japan, so assuming the COVID-19 will be subdued with the start of vaccinations and the removal of travel restrictions, we are more than confident that the market will recover in the latter half of 2021.”

Meanwhile, Vo Ha Duyen, chairwoman of Vietnam International Law Firm, cited data by the Corporate Investment and Mergers & Acquisitions Center showing that the value of M&A deals in Vietnam in 2020 dropped by about a half from 2019. Various factors may have affected such activities, she said – the pandemic has had a significant impact on the global economy and also caused difficulties to dealmaking, while travel bans and lockdowns have hampered M&A due diligences and negotiation meetings.

According to Duyen, the ongoing changes to the laws of Vietnam have also contributed to some uncertainties. Under the new Law on Competition, a substantially higher percentage of M&A deals are subject to merger control filing requirements than under the old laws. Investors initially hoped that the introduction of the 30-day “preliminary review” track to the merger control filing procedure under the new law would help reduce procedural burdens.

Nonetheless, because sub-law regulatory guidance has not been issued, it seems that a majority of filing cases have not seen application of the 30-day preliminary review and have been subject to complex and uncertain evaluations which last for months.

In addition, local departments of planning and investment have had difficulties in applying the new Law on Investment as documents guiding the implementation of the law have not been issued. This could increase cases in which the licensing authorities have to seek opinions from other relevant authorities, which may contribute to delays in the M&A process.

“We hope that new decrees and circulars providing detailed and favourable regulatory guidance will be issued soon to support the competition and investment authorities in dealing efficiently with M&A transactions and to effectively reduce the time gap and uncertainties in the procedures, helping boost the recovery of M&A activities when the pandemic settles down,” Duyen said.

According to Vietnam M&A Forum Research Team, a number of mega deals are expected to be secured in 2021. Foreign investors from South Korea, Japan, Singapore, and Thailand will continue to dominate the market with the value of deals reaching up to $500 million. At present, Vietnam’s M&A market remains attractive to investors despite the impact of the global health crisis – in particular, in the second and third quarter of 2020 Vietnam witnessed more M&A deals after the country successfully contained the summer wave of infections.

That being said, Vietnam is hopeful about potential for post-pandemic M&A growth. Some experts have forecast that the main sectors that will contribute to the recovery of value in Vietnam are telecommunications, energy, infrastructure, pharmaceuticals, education, and e-commerce.

Yoshida from RECOF said that Japanese companies are concerned with stability of global supply chains. Vietnam is not only competitive as a location for manufacturing, but also it stands at the crossroads in terms of free trade agreements with major economic zones and so is well positioned.

“Additionally, more Japanese companies are paying attention to sustainability and technology innovations, and they are eagerly looking for opportunities to apply their expertise, such as in renewable energy, smart cities, AI, and more in Vietnam, where the people are open to new ideas,” he said. “As for the pandemic, we highly evaluate Vietnam’s success in keeping the pandemic under control, and this fact makes the country even more attractive for the Japanese investors.”

Garment sector set for full recovery in second half of next year

The local textile and garment sector is anticipated to bounce back during the third quarter of 2022, according to Le Tien Truong, chairman of the Vietnam National Textile and Garment Group (Vinatex).

Last year witnessed Vietnamese textile and garment exports grow by minus 10.5% due to the impact of the COVID-19 pandemic, just raking in US$35 billion, in contrast to regional peers who endured a decline of between 15% and 20%.

This is the first major setback the sector has suffered after 25 years of penetrating the global market says Truong, adding though the global market is showing signs of recovery, the number of orders and prices remain modest.

The executive reveals several local enterprises, including Vinatex, have received orders up until the end of April or even July and August for some commodities such as knitwear and other popular items.

The sector is poised to fully recover from the COVID-19 crisis in the third quarter of 2022 at the earliest possible time, says the CEO.

Truong speaks of disadvantages that the garment sector addresses during the COVID-19 pandemic time, noting garment firms are unlikely to fulfil signed contracts and more importantly the sector’s position in the global supply chain is also threatened.

Experiencing three coronavirus waves, the Vinatex representative therefore advises businesses to strictly take drastic COVID-19 prevention measures at work, with workers from epidemic hit areas being subject to a 21-day quarantine period.

During the course of the year ahead the domestic textile and garment sector is forecast to achieve an export turnover of approximately US$39 billion.

To meet the target, local firms will strive to expand into fresh markets while the implementation of various free trade agreements (FTAs) is anticipated to create a wealth of opportunities which will serve to boost exports.

The Vinatex leader also says as a means of taking full advantage of the tariff reduction and benefits from recently-signed FTAs, local firms are required to prove their origin of production, either in Vietnam or in intra-bloc countries. This is in line with the rule of yarn and fabric set out within both the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA).

Experts consider how Vietnam can attract greater investment from global firms

Vietnam must stay active in inviting multinational corporations and renowned companies to invest locally, especially those from countries with advantages in terms of technology, capital, and management skills, including the United States, the EU, and Japan, according to insiders.

The past five years has seen the foreign-invested sector make significant contributions to Vietnamese socio-economic development.

Furthermore, the country has always represented an attractive investment destination for foreign investors due to Vietnamese FDI attraction increasing from US$24.1 billion in 2015 to US$38 billion in 2019, with the figure being recorded at US$28.53 billion in 2020 despite the impact of the novel coronavirus (COVID-19) pandemic.

Do Nhat Hoang, director of the Foreign Investment Agency under the Ministry of Planning and Investment, attributes investment inflows into the country to a number of recently-signed free trade agreements (FTAs). This includes the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EVFTA), and the Regional Comprehensive Economic Partnership (RCEP).

The enforcement of these various FTAs has created a wealth of opportunities for large foreign corporations, especially those in hi-tech fields, to invest domestically as they can maximise the benefits and incentives from these FTAs, Hoang adds.

Furthermore, he underscores the importance of attracting technology projects relating to AI, blochain, fintech, and training high-quality human resources that can meet the requirements for Vietnamese socio-economic development.

Nguyen Hoa Cuong, deputy director of the Central Institute for Economic Management (CIEM), emphasises the need to effectively invest in innovation for businesses whilst helping small firms gain access to funding sources from banks.

He therefore stressed that although the country can be considered vulnerable to the spread of the COVID-19 pandemic, the international community has highlighted Vietnamese containment efforts and determination to improve the local business environment and turn the country into an ideal destination for investors.

Nakajima Takeo, chief representative of Japan External Trade Organization (JETRO) in Hanoi, says while other countries are still struggling with the impact of the COVID-19 pandemic, the Vietnamese economy has rapidly recovered, with Vietnam becoming the first nation to enjoy the various advantages of the diversification of the global supply chains.

Moreover, with keen interest from foreign investors, including Japanese investors, the country should strive to improve the local business climate to attract more high-tech investors whilst fine-tuning the legal system and supporting firms to overcome the adverse impact of the COVID-19 epidemic, the JETRO representative states.

According to Nguyen Van Toan, vice chairman of the Vietnam Association of Foreign Investment Enterprises, it is essential to promote technology transfer and corporate governance for Vietnamese enterprises, while also being proactive in inviting multinational corporations and companies with popular brands to invest in the country.

Economic experts have therefore stated that it is necessary to complete the legal framework regarding anti-transfer pricing, revise regulations on tax management, whilst also increasing fines and penalties for acts of transfer pricing to ensure the strictness of law. This should be done alongside building and perfecting the database system and national information on FDI projects and enterprises.

Thousands of products qualified for OCOP standards

Thousands of products have been rated and qualified for the standards of the One Commune-One Product (OCOP) programme during the 2018-2020 period, said Deputy Prime Minister Trịnh Đình Dũng.

Addressing a national conference reviewing the OCOP programme in the 2018-2020 period in Hà Nội on Tuesday, Dũng said that all 63 provinces and cities across the country have rolled out the programme, in which 59 provinces and cities have verified and rated products.

The trade promotion for OCOP products has been also actively and effectively implemented by provinces, cities and agencies, he said.

A report from the Ministry of Agriculture and Rural Development (MARD) said that the OCOP programme has 4,469 products with three-star and above ratings in 59 provinces and cities, 1.86 times higher than the target set for 2018-2020.

Localities nationwide have so far organised 66 OCOP fairs.

Retail systems and trade centres have actively participated in consuming OCOP products.

The deputy prime minister emphasised that OCOP is a rural economic development programme, not only contributing to improving the incomes and the lives of people in rural areas, but also actively supporting agricultural restructuring and programmes on new-style rural area building.

The quality and design of the OCOP products improve day by day, bringing economic benefits to people, cooperatives, businesses and localities, he said.

However, the implementation of the programme still revealed several shortcomings, he added.

Several localities faced difficulties in defining their advantages and potential, and many only focused on existing products and did not pay attention to developing new products.

Trade promotion is still fragmented, not synchronous, and has not attracted consumers. Source of capital for OCOP development, the governance capacity of economic organisations and entities in OCOP are still limited.

The deputy prime minister requested ministries, sectors and localities to strengthen management over the implementation of the programme, guide the classification of products in localities, and supplement and complete a set of criteria assessing and rating OCOP products.

He also emphasised the need to absolutely avoid complaisance in assessing and recognising OCOP products, without paying attention to product quality, affecting the effectiveness of the programme.

For proposals and recommendations of ministries, sectors and localities, Deputy PM Dũng asked the MARD to consider thoroughly and continue working with them to build the OCOP programme for 2021-2025.

According to agriculture minister Nguyễn Xuân Cường, after three years of implementing the OCOP programme, business households, cooperatives, and small and medium-sized businesses have developed their production in the direction of professionalism.

The programme has promoted the potentials and strengths of localities in specialty products, production conditions as well as raw material areas with more than 145 OCOP products that have effectively exploited the local raw material areas, said agriculture deputy minister Trần Thanh Nam.

Vietnam looks to boost economic, trade ties with Russian localities

Vietnam attaches great importance to economic, trade and investment cooperation with Russian localities, Vietnamese Ambassador to Russia Ngo Duc Manh has said.

The Vietnamese diplomat made the statement during his meetings with governors of the southwestern Kursk and Bryansk regions of Russia on the occasion of his visits to these localities on March 23-24, as part of activities to further strengthen cooperation between Vietnam and Russia in general and their localities in particular.

Manh and Governor of the Kursk region Roman Starovoit, in their meeting, expressed their joy at the increasing development of Vietnam-Russia comprehensive strategic partnership, especially in recent times.

Starovoit called on Vietnamese businesses to increase their investment in promising sectors such as agriculture and tourism.

In 2020, trade turnover between Kursk and Vietnam hit 30 million USD, he said.

Meanwhile, Governor of the Bryansk region Alexander Bogomaz briefed Manh on the locality’s socio-economic development, noting that the Russian locality still maintained positive growth despite impacts of the COVID-19 pandemic.

He thanked the Vietnamese diplomat and relevant agencies for their efforts to promote cooperation between businesses of the two countries, especially in agriculture.

For his part, Manh said he is pleased with the Kursk region’s cooperation agreement with its sister Ninh Thuan province of Vietnam.

He thanked the two local governments for supporting the Vietnamese community to lead a stable life in Russia, thus contributing to the development of the Russian localities and their homeland.

Despite the COVID-19 pandemic, trade value between Vietnam and Russia still increased 8 percent to 5 billion USD. Notably, in the first two months of this year, it surged by over 30 percent, hitting nearly 800 million USD. Vietnam is the largest market of Russia’s meat products, accounting for nearly 45 percent of its total meat exports.

On the occasion, Ambassador Manh and his entourage visited food processing establishments, livestock and poultry production complexes of Miratorg Group in Kursk and Bryansk./.

Thua Thien Hue strives to develop tourism in new normal

The central province of Thua Thien Hue has put in a great deal of effort to restore the local tourism industry as the world moves into a new normal in the post-COVID-19 period.

The province has therefore taken a range of solutions aimed at stimulating domestic tourism demand through  diversifying its tourism products and services, creating entertainment spots at night, providing guests with exciting experiences at cultural heritage sites, and developing different types of tourism, including eco-tourism, beach holidays, and resort tourism.

In an effort to attract more guests to the ancient capital, travel firms are currently offering discounts of up to 50% on entrance fees to heritage sites between March 1 and August 31.

Furthermore, the province will also put on a wide range of festivals each month, including a traditional craft festival, the Lotus Festival, a food festival, the Hue Dragon Dance Festival, and the Hue Ao Dai Festival, in a bid to stimulate tourism.

Duong Thi Cong Ly, director of the Hue branch of the Hanoi Tourism Joint Stock Company, said the firm has paid close attention to the quality of its tourism products as it offers a fresh experience for visitors through unique products, including check-in tours around the Huong river and cycling tours which take guests throughout the city.

Tran Trong Kien, chairman of the National Tourism Advisory Council, emphasized the need to focus on digital transformation and development of the city’s brand so it is renowned for being green, clean, and safe.

Le Huu Minh, acting director of Thua Thien Hue Department of Tourism, said to turn Thua Thien Hue into a safe, friendly, and attractive destination, localities have been advised to strengthen connectivity by launching special tours, such as the Thua Thien Hue-Da Nang-Quang Nam tour which has proved popular in recent years.

Foreign brokerages rack up agreements

Several international banks, particularly from Taiwan, are boosting their financing offers to Vietnam’s brokerages, betting on the tremendous growth of the financial market.

The negotiations began at the end of 2020 and were completed after three months, despite the ongoing pandemic restrictions. The syndicated loan facilities are expected to fund the brokerage’s future operations and business expansion plans in the fast-growing equity market of Vietnam.

Ho Thi Thu Hien, chairwoman of the board at VietinBank Securities said, “The access to foreign capital could give the company an upper hand in taking advantage of lower interest rates, compared to other foreign brokerages which are backed by their foreign parent banks.”

The expansion of foreign loan limits, Hien added, would continue to add fuel to VietinBank Securities’ synergy to provide best customer-centric and diverse services. This deal is slated to pave the way for the company to boost its activities related to international loan advisory and financing arrangements.

Last December, Vietnam’s largest brokerage Saigon Securities Incorporation (SSI) was ahead of the curve when it signed a mortgage loan agreement of $85 million with a group of nine foreign banks, also led by Taipei-headquartered Union Bank of Taiwan.

Earlier in 2019, SSI also entered into a syndicated loan of $55 million from a group of financial institutions led by SinoPac Bank and became the first securities company in the country to be granted such large-scale credit in the form of an unsecured loan.

An SSI representative told VIR that the expansion of foreign loans with high value and low cost of capital laid a firm foundation for the company to boost its competitiveness through the provision of more cheap capital, especially for margin loans to investors.

Although the representative did not disclose specific rates or loan costs, SSI has an ace up its sleeve due to preferential interest rates thanks to its good risk management capacity, large-scale assets, and extensive network nationwide.

Up to now, only a few of Vietnam’s top securities firms are able to obtain sizable unsecured loans from foreign banks. Specifically, SinoPac, one of the leading Taiwanese lenders, has continuously displayed its eagerness to latch onto Vietnam’s lucrative equity market by cooperating with local prominent brokerages.

Ho Chi Minh City Securities Company also inked an agreement to receive a $50 million unsecured loan from 10 foreign financial institutions, also led by SinoPac, in 2019.

On the same track, SinoPac arranged a $40 million unsecured syndicated loan, together with other foreign banks, to lend to Viet Capital Securities Company in May 2020.

Local securities companies are not the only beneficiaries of unsecured syndicated loans from international funds. Last year, the $500 million syndicated term loan of Techcombank was named the second-largest in Southeast Asia, and the largest ever in Vietnam.

The loan facility was arranged by United Overseas Bank as coordinator and facility agent, and ANZ, CTBC Bank, First Abu Dhabi Bank, and Taishin Bank as mandated lead arrangers, underwriters, and bookrunners.

HDBank has also entered a $71-million syndicated loan led by a consortium of eight Taiwanese banks and an Indian bank arranged by Mega International Commercial Bank.

Market experts believed access to relatively cheap financing sources is one of the pivotal elements to help securities companies grow and stay competitive, especially in comparison with other foreign-backed brokerages such as Mirae Asset Securities, KB Securities, and KIS.

Regarding abundant capital to support margin loans, some foreign banks operating in Vietnam such as Wooribank, CTBC, Indovinabank, and Shinhan Bank Vietnam have actively backed securities firms to bolster margin lending.

For instance, Wooribank provided more than VND2.81 trillion ($121 million) to major brokerages, including KIS, MBS, ACBS, while KBSV. Indovinabank has also issued loans to securities firms such as MBS, KBSV, and TCBS.

Mekong Delta drives attractiveness to foreign investors

Foreign investors from Thailand, South Korea, and Japan are eyeing investment opportunities in garment and textiles, construction, solar power, manufacturing, and retail in the Mekong Delta.

“Central Group is looking for newly-built trade centres from 4,000-20,000 hectares. In the next 1-2 years we hope to develop two centres and a series of convenience shops in An Giang province,” Le said.

The dialogue was held between An Giang People’s Committee and foreign investors on March 23 in Ho Chi Minh City by the Investment Promotion Centre-South Vietnam (IPCSV) under the Ministry of Planning and Investment.

JS Construction from Korea, meanwhile, is looking for a minimum of 1,000ha for agricultural planting. Kim Jong Seong, director of JS Construction said that this land site needs clean land and infrastructure, especially water for irrigation.

Thai investors, meanwhile, expressed interest in the development of the border gate economy and industrial parks.

Audsitti Sroithong, minister counsellor from Office of the Board of Investment, shared that in the establishment of the border gate economy, the most important factor was the infrastructure system which must facilitate logistics.

According to Tran Thi Hai Yen, director of the IPCS, the investment promotion activities so far have not been effective enough as each province was working alone.

Many provinces are offering similar incentives while they need a unique offering that suits their natural resources and geographical position, as well the investment directions of the central government.

“Although the investment demand in the Mekong Delta provinces is great, investment promotion activities have remained ineffective,” Yen said at another meeting held on the same day where regional promotion centres shared experiences and discussed solutions to improve investment promotion in the region.

Yen added that the IPCS has received many diplomatic delegations (both online and offline) as well as large corporations that are very interested in investing in the southern region, especially the Mekong Delta.

The unit has also been tasked by the Ministry of Planning and Investmentwith promoting cooperation with provinces, enhancing investment promotion, and preparing steps to welcome and support the shift of foreign direct investment (FDI) flows in the coming time.

Regarding regional investment promotion links, Nguyen Thi Huyen Ngoc, deputy head of IPCS Investment Promotion Department, said there is an overlap in investment promotion activities run by many agencies.

In addition, these agencies are uncoordinated, partly due to the weakness of local investment promotion agency in reporting, exchanging information and promoting activities.

That is why Ngoc claimed regional linkages are essential to be set up, to reduce costs, better harness resources, and promote common interests while creating a common brand and a unifying driving force in investment promotion.

It is known that the Ministry of Planning and Investment has just assigned IPCS to set up a national electronic portal and the official launching ceremony is scheduled to be held in April 2021.

This will be a platform for all local authorities of the 13 cities and provinces of the Mekong Delta where the foreign business community can share and request information on opportunities in this region.

The IPCS has also been working with the consulates general of many countries in Ho Chi Minh City which are sending articles covering information on investment opportunities and investment needs of foreign enterprises through the industry associations in their country in this portal.

The Mekong Delta accounts for 12 per cent of the country’s area and 19 per cent of its population (about 17 million people). It is often referred to as the “rice bowl” of the country as it accounts for half of its total rice output and 95 per cent of its export rice output.

According to the World Bank, this region accounts for 20 per cent of the global rice trade.

Fishery production is also the region’s strength, accounting for 65 per cent of Vietnam’s production volume.

However, for many years, the Mekong Delta has been overlooked by foreign investors, receiving only 8 per cent of the total FDI capital pouring into the country each year on average.

This rate has increased significantly last year, when FDI in the Mekong Delta region reached $6.08 billion, accounting for 21.3 per cent of the total. Outstanding projects included the $4 billion liquefied natural gas (LNG) thermal power plant in Bac Lieu invested by Delta Offshore Energy (Singapore), the O Mon II thermal power plant project with the total investment of $1.3 billion from Marubeni (Japan) and Vietnam Investment Construction and Trading Joint Stock Corporation (Constrexim Holding), and especially the $3 billion LNG-to-power project invested by VinaCapital GS Energy, a joint venture between South Korean GS Energy and VinaCapital which received the investment certificate on March 21.

Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes

Filed Under: Uncategorized vietnam economy, Vietnam business news, business news, vietnamnet bridge, english news, Vietnam news, vietnamnet news, vietnam latest news, Vietnam breaking..., vietnam travel news, vietnam business visa, vietnam english news, vietnam economy news, vietnam breaking news, vietnam pepper news, vietnam today news, vietnam football news, vietnam business visa requirements, vietnam business visa on arrival

Global market remains potential for Vietnam’s mango industry

April 12, 2021 by sggpnews.org.vn

Global market remains potential for Vietnam's mango industry ảnh 1 The scene of the workshop. (Photo: SGGP)

According to the report of the MARD, the Mekong Delta region has more than 47,000 hectares of all kinds of mango, with an average yield of 11-13 tons per hectare, and an output of about 567,732 tons per year. Among these, there are 1,789 hectares of mango grown under the VietGAP and GlobalGAP standards for export. In 2020, mango exports exceeded US$180 million. The Chinese market alone accounted for nearly 84 percent of total mango exports, followed by Russia, the US, South Korea, the EU, Australia, and Japan.

At the workshop, experts and exporters said that in the past year, the total global export value of mango reached about $12.3 billion, but Vietnam’s mango exports remained modest with more than $180 million. This shows the potential of the global mango demand.

Global market remains potential for Vietnam's mango industry ảnh 2 Mango exports exceeded US$180 million in 2020. (Photo: SGGP)

Mr. Nguyen Dinh Tung, Chairman of Vina T&T Group Company, said that from April last year, his company had exported the first batch of mangoes with an output of 27 tons to the US by air and sea. In the first three months of this year, the company exported about 35 tons of mangoes a week. The current advantage is that mangoes have been licensed to be exported to the US and Australia with 30-day storage technology. At the same time, signed free trade agreements have helped Vietnam to easily access regional and global markets. Moreover, mango is available all year round with stable quality, so enterprises can take initiative in signing export contracts.

According to the MARD, by 2030, the whole country targets to have about 140,000 hectares of mango, with a production of 1.5 million tons, export turnover increasing to $650 million, and over 70 percent of processing and preservation establishments with advanced technologies.

The Department of Plant Protection suggested localities in the Mekong Delta continuing to register mango growing-area codes, apply good agricultural practices in production, and use plant protection drugs following recommendations. Packing and handling establishments must be periodically inspected and supervised and accepted by importing countries.

Global market remains potential for Vietnam's mango industry ảnh 3 Cat Chu Mango is a kind of specialty mango of Dong Thap Province. (Photo: SGGP)

Deputy Minister of Agriculture and Rural Development Tran Thanh Nam said that the country currently has about 87,000 hectares of mango. Of which, the Mekong Delta accounts for 48 percent of the total growing area, which is a very good factor to improve quality and ensure export standards, as well as domestic consumption. To improve the quality standards of mango, the role of cooperatives is extremely important. Cooperatives are the hub to coordinate and link the value chain with exporters. Cooperatives will gather members to reorganize production associated with enterprises, forming a large raw material area to ensure quality according to the export requirements of many different markets.

Mr. Pham Thien Nghia, Chairman of the People’s Committee of Dong Thap Province, revealed that from the years of 2005 and 2006, the province had focused on investing in the mango industry, such as building technical infrastructure and flood-protection dikes, applying technology to production, improving varieties, and producing under the GAP standards. Especially, it built the “my home mango tree” model to sell mangoes online. Since then, the concentrated mango growing areas were established in Cao Lanh District and Cao Lanh City. Mango is also one of five commodities that the province has implemented agricultural restructuring. Currently, Dong Thap has 977.6 hectares of mango which have been granted growing-area codes for export to fastidious markets and 4,228 hectares of mango have been granted growing-area codes for export to China. The province has also established eight cooperatives, 37 cooperative groups, and 23 associations of mango farmers, linked the production and long-term consumption for 1,073 hectares of mango with more than 10 enterprises. However, the post-harvest loss rate is still quite high, sometimes up to 70 percent. The preservation of fresh mangoes has a high loss rate. The production area that meets the GAP standards is limited. These are problems that need to be overcome in the coming time.

By Huynh Loi – Translated by Gia Bao

Filed Under: Uncategorized mango industry, mango exports, Mekong Delta, MARD, growing-area codes, Business, cnn global markets, emerging global market, sunrise global marketing, vietnam singapore industrial park, affiliate marketing earning potential, vietnam furniture industry, vietnam cashew industry, vietnam retail industry analysis, vietnam retail industry, vietnam clothing industry, vietnam plastic industry, vietnam shoes industry

High logistics cost undermines Vietnam’s farming competitiveness

April 14, 2021 by tuoitrenews.vn

Vietnam’s competitive edge in agricultural exports is lower than those of China, Thailand, Indonesia, and the Philippines because of its costly logistics costs, a logistics expert said during a panel discussion last week.

Such expenses accounts for 30 percent of the production cost in Vietnam in comparison to 12.5 percent ​​in Thailand and 14 percent in the world, Pham Tien Hoai, general director of Hanh Nguyen Logistics, said at the panel discussion on leveraging logistics for farm produce in the Mekong Delta held in Hau Giang Province on April 9.

As part of the total logistics cost, air freight for fresh fruits exported from Vietnam to the U.S. currently amounts to US$6.62 per kilogram, far higher than $3-3.5 per kilogram previously, Ngo Tuong Vy, deputy director of the Chanh Thu Fruit Import & Export Co. Ltd., said at the event.

Logistics costs for shipments to many key markets such as the U.S. or Europe have doubled, lessening the competitive edge of Vietnam’s fresh fruit products and creating a bottleneck for export, the panel discussion heard.

On the other hand, a number of fruit items have to be exported by air instead of by sea owing to the lack of advanced storage technologies that help maintain fruit quality during time-consuming sea transport.

A part of the kumquat juice production line at Tien Thinh Agricultural Product Processing Co., Ltd. Photo: Le Dan / Tuoi Tre

A part of the kumquat juice production line at Tien Thinh Agricultural Product Processing Co. Ltd. in Vietnam. Photo : Le Dan / Tuoi Tre

Air fruit exports have increasingly decreased because of unaffordable air freight that is much higher than sea freight.

With the perspective of an export fruit processor, Vy laid emphasis on improving post-harvest storage technologies as a solution for enhancing the exported fruit quality and thereby making them qualified for sea transport.

Sea transport helps reduce the overall logistics cost greatly, as air freight is 15 times costlier than sea freight.

“The sea freight for lychees exported to Japan is $3.8-4.2 per kilogram, which, together with many other costs, pushes up the price of this commodity,” Vy said, adding that such a high price makes Vietnam’s lychee less competitive than that of Thailand.

Meanwhile, Le Thi Thu Truc, deputy general director of Phu Thinh Food Processing Export JSC, based in Hau Giang Province, pointed out that many enterprises build warehouses only when they win contracts to export fruits.

As fruits are seasonally harvested, Phu Thinh faces difficulty in ensuring enough fruit volume for export contracts, Truc said.

Sometimes, the company obtains contracts but it does not have enough fruits and vice versa.

“Enterprises should have enough storage for fruit preservation,” she advised.

“Finished products may be stored at deep cold temperatures.”

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