In an effort to encourage exports in the context of the trade war, the Chinese central bank PBOC has set the yuan/US dollar reference exchange rate at 6.8365 yuan per US dollar, the lowest level since January 2019. The weakened Chinese yuan has raised big concerns for Vietnam, because China is one of the biggest export markets of the country. This will make Vietnamese exports to China more expensive. Seafood, fruits, farm produce and rubber, the biggest export items, are expected to suffer the most. According to the Ministry of Agriculture and Rural Development (MARD), Vietnam exported $1.4 billion worth of vegetables and fruits in the first four months of the year, an increase of 7.2 percent over the same period last year. China is now the biggest consumer of Vietnam’s vegetables and fruits, amounting to 72 percent of Vietnam’s export value. China is now the biggest consumer of Vietnam’s vegetables and fruits, amounting to 72 percent of Vietnam’s … [Read more...] about Vietnam’s producers meet difficulties as yuan weakens.
When trade grows, promoting supply chain financing will help improve the competitiveness of micro, small and medium enterprises (MSEME) in Vietnam, enabling them to join global supply chains, Overview of the conference. Experts said local producers and suppliers urgently need efficient financing to support their trade cycles with global partners. — Photo courtesy of IFC Vietnam’s foreign trade volume has increased in recent years, with free trade agreements opening up new market opportunities for local businesses, experts said at the fourth annual conference on supply chain financing in Asia-Pacific in HCM City on Monday. However, lack of working capital and transaction banking services such as supply chain finance (SCF) partially hinders producers and suppliers from accepting large orders or developing new relationships with their value chain actors. Without SCF solutions, suppliers and distributors are not able to optimise their working capital management by … [Read more...] about Vietnam needs to promote access to supply chain financing : experts
The air travel market grew in the first half of this year, however the growth rate slowed down compared to the same period last year, according to the Civil Aviation Authority of Vietnam (CAAV). Passengers make check-in procedures at the Noi Bai International Airport. A CAAV report on aviation service quality in the first half of this year found that aviation sector, including local and international airlines, transported 38.5 million passengers, up 9.4 per cent year-on-year. Vietnamese airlines operate 48 domestic routes connecting 22 airports, of which national carrier Vietnam Airlines runs 33 routes, budget carrier Vietjet Air 35 routes, Jetstar Pacific 23 routes, Vietnam Air Services (VASCO) manages nine routes and newly-opened Bamboo Airways with 24 routes. Total passengers transported by Vietnamese airlines reached 18.3 million, up 6.2 per cent year-on-year, with the national carrier Vietnam Airlines accounting for 35.9 of market share, VASCO at 2 per cent, Vietjet Air 44 … [Read more...] about Vietnam aviation sector growth slows
Malaysian carrier remains keen on Vietnam's aviation market despite failure of fourth attempt at establishing a low-cost airline. AirAsia is continuing to look for new partners for it to join Vietnam’s aviation market after the failure of its deal with local tourism company the Thien Minh Group, a representative from AirAsia told VET. At the end of 2018, AirAsia announced its cooperation with the Thien Minh Group to establish a low-cost airline in the country. Under the agreement, AirAsia would own 30 per cent of the new joint venture, which is the maximum a foreign company can own in Vietnam’s aviation industry. However, in April, AirAsia issued a notice terminating its cooperation with the Thien Minh Group after more than a year of negotiations. It was its fourth effort to penetrate into Vietnam’s aviation market. Previously, the Malaysian airline proposed cooperating with Pacific Airlines, the predecessor of Jetstar Pacific, but failed to agree to terms with its … [Read more...] about AirAsia still seeking partners in Vietnam
Increasing numbers of airlines and aircraft are putting serious pressure on Viet Nam’s aviation infrastructure. Aircraft at Tan Son Nhat International Airport in HCM City. Competition in Viet Nam's aviation sector looks to soar as more new players enter the fray. — Photo vnfinance.vn As competition for market share and skilled labour intensifies, the Government must take measures to ensure a fair playground and long-term development, said industry experts and authorities. The Civil Aviation Authority of Vietnam (CAAV) has recently approved an air operator’s certificate (AOC) submitted by Vietstar Airlines, bringing the total number of licensed air operators in the country to seven. CAAV also confirmed two more AOC applications submitted by Vinpearl Air and Vietravel Airlines were pending. Vinpearl Air said it would field a fleet of six aircraft in July next year and bring in 30 more by 2025 to fly both domestic and international routes. Vietravel Airlines said … [Read more...] about Competition in Vietnam’s airline industry set to intensify