Day: December 24, 2023

Hanoi: Export results in 2023 are believed to be a stepping stone for the rice sector to seek new markets, affirm the brand of Vietnamese rice, better guarantee national food security, and promote sustainable production and export in the time ahead.

Vietnam may record a year-on-year increase of 11% in the rice export volume in 2023 to over 8 million tonnes, predicted Deputy Minister of Agriculture and Rural Development Phung Duc Tien.

The year 2023 is full of difficulties for rice export as geo-political conflicts in the world have disrupted food and input material supply. The El Nino phenomenon, which poses a risk of contraction in food production, has triggered some countries’ concern over supply for domestic demand. The suspension of grain export by such countries as India, the UAE, and Russia has also caused big supply pressure, thus mounting concern in the global food market.

However, as a leading exporter of farm produce, particularly rice, Vietnam has still managed to guarantee national food securit
y and export growth.

Facing complex developments in the rice market, the Prime Minister on August 5 issued a directive ordering national food security to be firmly ensured and sustainable rice production and export promoted in the current period.

He has also assigned the Ministry of Industry and Trade to coordinate with relevant agencies to carry out rice trade promotion programmes appropriate to the new situation to improve Vietnamese rice’s value. They were also asked to capitalise on preferential treatments under the free trade agreements to which Vietnam is a party to diversify markets and better the competitiveness of the Vietnamese grain.

Under the strategy on developing rice export markets of Vietnam until 2030, agricultural authorities are ordering localities and key rice farming zones to conduct restructuring to produce more quality grain for export and raise the added value.

Though domestic rice supply is low at present, there are still grounds to anticipate that this year’s export volume will s
urpass 8 million tonnes.

About 7.75 million tonnes of rice worth 4.41 billion USD were exported during the first 11 months of 2023, rising 36.3% year on year, the Ministry of Agriculture and Rural Development reported, attributing the surge to a 17.3% increase in the average export price to 568 USD per tonne.

Export prices now average 663 USD per tonne as a result of high demand, it said.

In addition, the quality of Vietnamese rice in the global market has also been further affirmed after the ST25 variety once again obtained the ‘World’s Best Rice’ title recently.

Vu Van Dong, General Director of the Dai Duong Investment and Trade JSC, perceived that high prices form an advantage but also pose a risk to Vietnamese rice.

Businesses can export much and earn big as India, the world’s biggest rice exporter, is suspending overseas shipments of the grain. However, to those keeping large stockpile, if they do not make right assessments and proper preparations, they will face difficulties once India or China cha
nges its policy, he pointed out.

Businesses hope that rice prices in the winter – spring crop will stay high to benefit farmers. Meanwhile, export prices in the further future may decline but are unlikely to fall sharply, possibly to about 600 USD per tonne, Dong added./.
Source: Vietnam News Agency

Dien Bien: Four important transport projects nationwide were inaugurated in the presence of Prime Minister Pham Minh Chinh on December 24.

The inauguration ceremonies for Dien Bien Airport, Tuyen Quang – Phu Tho and My Thuan – Can Tho expressways, and My Thuan 2 Bridge were held via videoconference in the provinces accommodating the projects, namely the northwestern province of Dien Bien, the northern province of Phu Tho, and the Mekong Delta provinces of Vinh Long and Tien Giang.

The project on building and expanding Dien Bien Airport in Dien Bien province started on January 22, 2022, and had total investment of nearly 1.47 trillion VND (60.6 million USD). The airport is capable of handling A320s/A321s and similar planes, and 500,000 passengers per year. It is serving the Hanoi – Dien Bien and Ho Chi Minh City – Dien Bien air routes at present.

Tuyen Quang – Phu Tho Expressway, connected with Noi Bai – Lao Cai Expressway, is 40.2km long in total, comprising 11.63km traversing the northern province of Tuye
n Quang and 28.57km through Phu Tho. The four-lane road with a design speed of 120km per hour, invested with a total of 3.75 trillion VND, had its construction started in early 2021.

Meanwhile, My Thuan – Can Tho Expressway, part of the eastern North – South Expressway project, is almost 23km long and has investment totalling over 4.8 trillion VND. Work started on this expressway in January 2021. It begins at the intersection of My Thuan 2 Bridge and Trung Luong – My Thuan Expressway. Its end is temporarily connected with National Highway 1 but will be linked with Can Tho – Ca Mau Expressway in the future. In the first phase, this road has four lanes and a design speed of 80km per hour.

The 6.61km My Thuan 2 Bridge, which spans the Tien River and links Tien Giang with Vinh Long, is the first cable-stayed one completely designed and built by Vietnamese engineers and workers. It has total investment of 5 trillion VND and had work started in February 2020. This bridge not only connects Trung Luong – My Thuan a
nd My Thuan – Can Tho expressways but also shortens the distance between HCM City and Can Tho city.

Speaking from the ceremony in Dien Bien Phu city of Dien Bien province, PM Chinh highlighted the importance of transport infrastructure to socio-economic development.

He said that only 1,163km of expressways were put into use during 2000 – 2021 while the resolution of the 13th National Party Congress targets about 5,000km to be built by 2030. That means the length of expressways that must be built during 2021 – 2030 is almost four-fold that constructed over the last 20 years.

To that end, he noted, the Party and State have provided great resources, enabled different forms of investment, and issued appropriate policies to mobilise the private engagement in transport infrastructure development.

The inauguration of the four projects is a step to carry out the policy of delegating power to localities and mobilising investment from non-state budget sources for infrastructure development, the PM said.

The Govern
ment leader attributed that result to the leadership by the Party Central Committee; support from the National Assembly, local People’s Councils, the Vietnam Fatherland Front, social-economic organisations, and residents in the areas housing the projects; as well as efforts by ministries, sectors, investors, project management boards, designers, contractors, workers, and local residents.

He asked relevant sides to operate the facilities in an effective manner, continue perfecting and connecting those facilities with related structures, and ensure the people displaced to serve the projects have better or at least similar life quality compared to their previous living places./.
Source: Vietnam News Agency

Hanoi: The wood industry market shows some signs of recovery, yet 2024 still poses some potential difficulties for the industry.

Growth is expected to slow by about 10 – 12% compared to the last quarters of 2023.

Do Xuan Lap, chairman of the Vietnam Timber and Forest Products Association (VIFOREST), gave the forecast at a recent seminar on sustainable development and challenges for the wood industry held by VIFOREST, along with various associations and member organisations, and Forest Trends in Hanoi.

This year is challenging for Vietnam’s wood industry. Consumer demand in main export markets such as the US and the EU has dropped sharply, leading to a decline in orders. Many businesses have had to reduce production, and some businesses even had to stop production.

Therefore, according to him, Vietnam’s exports of wood and wooden furniture will reach only about 13.5 billion USD in 2023, down 15.5% year on year.

Nguyen Chanh Phuong, vice chairman and general secretary of the Handicraft and Wood Industry As
sociation of HCM City (HAWA) also said that the businesses have had recovery in export orders to have enough jobs for workers. Some of them have started to purchase raw materials and prepare for production to meet demand in next year’s peak season.

He said the recovery of the wood industry being sustainable or not, will depend on the fair season in March-April 2024.

Vietnam’s wood product processors must adapt to overcome existing difficulties, including new regulations in key export markets, according to VIFOREST.

Currently, global markets have not shown many signs of a quick recovery in purchasing power for wood products, especially the US market which has often ordered over 50% of Vietnam’s export wood products.

Most wood processing enterprises in Vietnam have received orders again, but they are still facing many difficulties and are operating at moderate production levels.

The world situation is still too uncertain, so the domestic wood processing industry’s prospects for recovery and growth in 2024
will be very challenging, insiders said.

For niche markets, the wood processing enterprises certainly will not ignore opportunities to enter those markets, including strict markets, they said, adding this will minimise risks in export./.
Source: Vietnam News Agency

Hanoi: Many localities in Vietnam have promoted converting traditional industrial parks to eco-industrial parks and also developed new green industrial parks.

This is a crucial task of the National Green Growth Strategy 2021-2030, vision to 2050, and the National Action Plan for implementing the 2030 sustainable development agenda.

According to experts, developing a circular economy has become a trend among countries, especially as the world’s resources are increasingly depleted.

For the long term, besides converting existing industrial parks, Vietnam will build new ecological industrial parks meeting the requirements of design and planning and attracting investment projects that have environmentally friendly production processes and technologies, efficient use of resources, waste reduction, and re-use of raw materials and energy.

Vuong Thi Minh Hieu, deputy director of the Department of Economic Zones Management, Ministry of Planning and Investment, said the ministry has coordinated with the United Natio
ns Industrial Development Organisation (UNIDO) to further replicate the eco-industrial park model in Hai Phong, Dong Nai and Ho Chi Minh City via the project on deployment of eco-industrial parks in Vietnam according to the approach from the Global Eco-Industrial Park Programme. That effort has achieved very encouraging results.

However, there are some limitations in developing industrial parks because industrial park development planning has not clearly shown a strategic and overall vision.

In some locations, industrial park development planning does not reflect the actual development needs and ability to attract investment. That has led to the quality and efficiency of investment attraction falling short of expectations in terms of effectively using land for national socio-economic development and ensuring sustainable and balanced development of economic, environmental and social pillars.

Besides, the traditional industrial parks in the same locality still lacked cooperation to increase competitiveness a
nd connection with industrial parks in neighbouring localities.

Vietnam is attracting more high-quality foreign direct investment (FDI) to promote economic growth and international economic integration. Therefore, preparing industrial infrastructure is an urgent requirement to meet the increasingly strict requirements of foreign investors.

Of this, the development of eco-industrial parks is considered vital to solve environmental limitations and inadequacies, reduce resource waste, and increase value chain engagement.

Therefore, Vietnam must continue innovating and improving existing institutions, policies and regulations and adjusting goals and orientations for developing industrial parks and economic zones. These steps will adapt to the new context and contribute to implementing the national socio-economic development strategy./.
Source: Vietnam News Agency