Category: Business

Vietnamese garment and textile products are being showcased at Global Sourcing Expo Australia 2023 which kicked off in Melbourne on November 21.

The three-day event saw the participation of over 900 manufacturers and suppliers from 20 countries, including Vietnam, India, South Africa, Bangladesh, Pakistan, Indonesia and Turkey.

The Vietnam Trade Office in Australia has collaborated with the Vietnam Textile and Apparel Association (VITAS) and domestic enterprises to arrange 12 booths to introduce Vietnamese garment products, helping business representatives meet and connect with international partners and expand trade connections between the two sides.

Vietnamese exhibitors are VITAS and other companies such as Thai Son SP Co. Ltd., Dong Tam Caps Co. Ltd., FADATECH Company, An Sinh Trading Co. Ltd., Viet Y – Hung Yen Garment Joint Stock Company (VYG) and Viet Thanh Garment Trading Joint Stock Company.

Nguyen Thu Huong, Trade Consular at the Vietnamese Trade Office in Australia, said the office has carried
out activities to promote and introduce Vietnamese goods in the Australian market in different forms. Participating in large-scale fairs in the host country such as Global Sourcing Expo Australia 2023 is an extremely effective and practical form to bring “Made in Vietnam” goods closer to importers, buyers, traders and industry experts, and update with market trends.

Huong expressed her delight as the office’s booth at the expo attracted the attention of a large number of visitors as well as importers and distributors right from the opening day.

According to the official, the prospects and potential of Vietnamese textiles and garments are huge, especially after the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) was carried out, creating advantages for Vietnamese garment products to enter the Australian market and reducing competitive pressure with other countries due to preferential tariffs.

Cielo Quintero, a visitor to the expo, said she was very excited with the Vietnamese g
arment market and is looking for opportunities to cooperate with Vietnamese partners in the future, adding that her company has been operating in the industry for about 20 years.

She hoped to soon deploy cooperation activities with Vietnamese businesses with a belief that Vietnam can provide high quality products and favourable business environment./.

Source: Vietnam News Agency

Vietnamese firms should foster their imports of raw materials from the United Kingdom (UK) to enjoy preferential tariffs brought by the UK-Vietnam Free Trade Agreement (UKVFTA), trade experts have suggested.

According to experts, the UK can be a source of quality raw materials for Vietnam especially because raw materials that Vietnam needs to import for export production or domestic consumption are items that Vietnam offers preferential tariffs to the UK.

Under the trade deal, Vietnam commits to eliminate 48.5% of tariff lines from January 1, 2021; 91.8% of tariff lines from January 1, 2027 and 98.3% of tariff lines from January 1, 2029.

The remaining 1.7% of tariff lines are partially liberalised through tariff rate quotas (the quota volumes are consistent with Vietnam’s WTO commitments and duties within quotas will be removed by 2031) or not entitled to preferential treatment.

Typically, 61% of tariff lines for machinery and appliances imported from the UK have been removed since January 1, 2021, while
import tariffs for all other products will be eliminated after nine years.

For pharmaceutical products, Vietnam has eliminated 71% of tariff lines from January 1, 2021. All other products will have import taxes eliminated after four to six years.

Meanwhile, the Southeast Asian nation has lifted 80% of tariff lines imposed on raw materials for textiles, garments and footwear from January 1, 2021, while that of all other products will be eliminated after four to six years.

Statistics from the General Department of Customs revealed that Vietnam imported nearly 373 million USD worth of goods from the UK, equivalent to the same period in 2022.

Among staples recording high growth rate included seafood raw materials (233%); iron and steel products (95%); fabrics (72%); plastic products (15%) and machinery, equipment, tools and spare parts (6.4%).

According to the department, items that accounted for a large proportion of Vietnam’s import turnover from the UK in H1 included machinery, equipment, tools, and spare
parts (24%); pharmaceuticals (11.8%); chemicals (6.4%); textile, garment, leather, and shoe raw materials (5.2%); seafood and seafood materials 4.6%.

These above-mentioned goods are what Vietnam needs to import for export production and domestic consumption.

A recent survey by Vietnam Report, a market research company in Vietnam, showed that a top priority among Vietnamese businesses is to diversify their supply sources, especially for imported raw materials.

According to the report, 72.7% of all participants said they want to seek out new suppliers at lower prices and they want to do so in the near future./.

Source: Vietnam News Agency

A delegation from the US state of Oregon led by Commissioner at Port of Portland Katherine Lam on November 21 paid a working visit to the southern province of Binh Duong to learn about the investment environment in the locality.

Receiving the delegation, Vice Chairman of the provincial People’s Committee Nguyen Loc Ha introduced to the guests the province’s investment strategy, especially in areas such as finance, logistics, supporting industries, and high-tech agriculture.

He affirmed that the province is committed to prioritising environmentally friendly and non-labour-intensive industries to create high-added value.

The official said currently, there are 4,191 investment projects from 65 countries and territories with a total registered capital of more than 40.2 billion USD in Binh Duong. The province is ranked second nationwide in attracting foreign investment capital, just behind Ho Chi Minh City.

He noted that the US now ranks 10th among countries and territories investing in Binh Duong, with 135 p
rojects and a total investment capital of 1.36 billion USD, adding that the province always creates favourable conditions for US businesses including those from Oregon to invest in Binh Duong.

For her part, Lam, who is also President and CEO at Bambuza Hospitality Group, highly appreciated the dynamic development of Binh Duong and expressed the wish of the Oregon government that Binh Duong will continue to create favourable conditions for US businesses, particularly those from Oregon, to expand the business and invest in the province./.

Source: Vietnam News Agency

The cooperation potential in trade and investment between Vietnam and India in general and between Ho Chi Minh City and India in particular remains huge and has not been fully exploited, heard at a forum held in the city on November 21.

Experts shared the view at the ‘India – Ho Chi Minh City Business Forum’ co-organised by the HCM City Investment and Trade Promotion Centre (ITPC) and the Consulate General of India in HCM City.

Speaking at the event, ITPC Deputy Director Ho Thi Quyen said that since the establishment of diplomatic relations between the two countries in 1972 and the upgrade to a comprehensive strategic partnership in 2016, the Vietnam-India relationship has witnessed great achievements.

According to data from the General Department of Vietnam Customs, in 2022, the bilateral trade value between Vietnam and India hit 15.05 billion USD, of which Vietnam’s exports to India reached 7.96 billion USD, and its imports from India were 7.09 billion USD.

India became Vietnam’s 8th largest trading pa
rtner. India currently has more than 400 investment projects in Vietnam with total registered capital of more than 1 billion USD, ranking 26th out of 141 countries and territories investing in Vietnam.

Vietnam and India still have a lot of room to expand trade and investment cooperation because of their large market size. Moreover, the commodity structures of the two countries complement each other well.

Vietnam and India have already signed a Double Taxation Avoidance Agreement, an Investment Promotion and Protection Agreement and a Commercial and Economic Cooperation Agreement, which are the foundation for enterprises of the two countries to seek investment and business opportunities.

Meanwhile, in the past years, HCM City and India have continuously strengthened and developed their relationship in trade and investment cooperation, as well as people-to-people exchanges.

As of October 2023, India had 237 investment projects with total capital of more than 131 million USD, ranking 23rd among 120 countries
and territories investing in the city.

The Vietnamese official said that the city sees great potential for cooperation with Indian partners and hopes that India will continue to create conditions for businesses from both sides to meet, seek opportunities, and promote cooperation in fields including trade, tourism, science-technology, health, and education.

For her part, Sunaina Khanna, Assistant Vice President of Invest India, said that India is one of the five largest economies in the world with its GDP reaching 3.75 trillion USD in 2023 and export turnover of 770 billion USD.

It is estimated that by 2030, India’s digital economy will reach 800 billion USD and it is a huge consumer market with 357 million young consumers under 30 years old. Exporting countries, including Vietnam, can take advantage of the market for development, she said.

At the same time, India is also an ideal investment destination that Vietnamese businesses and investors can consider as the country’s corporate tax is among the lowest
in the world and it offers many preferential policies to develop the semiconductor and screen manufacturing ecosystem, tax exemptions for exported goods, simple one-stop administrative procedures and abundant industrial land areas.

At the forum, Indian and HCM City businesses expressed their wishes to seek new areas of cooperation, striving to increase two-way trade, strengthen cooperation in tourism, culture, science, and technology, as well as promote people-to-people exchanges./.

Source: Vietnam News Agency

The upgrade of the Vietnam – US relations to the comprehensive strategic partnership is opening considerable opportunities for both sides to activate new and breakthrough cooperation fields so that Vietnam can engage more deeply in global supply chains, said Deputy Minister of Industry and Trade Do Thang Hai.

Addressing the annual bilateral trade forum held in Ho Chi Minh City on November 21, he highlighted Vietnam’s consistent policy of viewing the US as one of the most important economic and trading partners.

That Party General Secretary Nguyen Phu Trong and US President Joe Biden officially announced the relationship elevation to the comprehensive strategic partnership on September 11, 2023 has provided a solid foundation for bilateral cooperation to become more substantive in all pillars, with economic, trade, and investment ties remaining the central impetus for the countries’ relations, he noted.

Hai went on to say that Vietnam is positioning itself well to become a major manufacturing hub in the wo
rld. Its businesses have been producing a diversity of products with competitive prices and improving quality.

Given the post-pandemic situation and recent political and economic uncertainties, many enterprises, retailers, and wholesalers are stepping up diversification strategies to ensure supply sustainability, and they have chosen Vietnam as one of the strategic destinations of their global supply chains. This is a big opportunity, but great efforts from producers and exporters are required to grasp it, he said.

Suggesting new and breakthrough cooperation fields, the official said focus should be put on boosting Vietnamese firms’ participation in the supply of materials, components, and equipment for the energy, aviation, digital economy, semiconductor, and artificial intelligence sectors.

Barbara Weisel, an expert in international trade law and former assistant to the US Trade Representative, said that the establishment of the comprehensive strategic partnership showed the determination of the two coun
tries to develop a dynamic relationship with many cooperation promises and bigger opportunities in the future.

In recent years, she said, the Vietnamese market has been growing strongly and stably. Its young, educated, and entrepreneurial workforce and the network of free trade agreements have turned the country into a leading beneficiary from many countries and companies’ interest in supply chain diversification to guarantee better resilience and economic security.

Thanks to the shift of supply chains and other factors, Vietnam has recorded the biggest market share expansion in the US compared to others. The North American country has become the largest import market of Vietnam, accounting for nearly one-third of the latter’s exports. As of September this year, Vietnam’s exports to the US rose nearly 15% while the US’s shipments to the former have yet to post such strong growth, she pointed out.

Foreign direct investment in Vietnam is on the rise, Weisel continued, adding that US businesses from many sect
ors are heading towards the dynamic Southeast Asian market while an increasing number of Vietnamese firms, including electric vehicle producers, have also seen investment chances in the US.

The two countries should actively work together to build concrete and detailed action plans to enhance the resilience and competitiveness of the fields that both prioritise. They need to act quickly to generating economic benefits as global businesses are paying attention to new investments in the region and seeking to diversify supply chains, the expert recommended.

Do Thien Anh Tuan, senior expert at Fulbright University Vietnam, said Vietnam should continue creating optimal conditions for US enterprises to invest and do business, especially in the fields matching the US’s strength and Vietnam’s demand.

Besides, Vietnamese companies should improve product quality, build brands, and actively join global supply chains through the cooperation with US partners, he added./.

Source: Vietnam News Agency

A “Made in Vietnam Energy Forum” was held online by the Vietnam Business Forum (VBF)’s Power and Energy Working Group on November 21, focusing on analysing issues related to the electricity and energy sector in Vietnam in the context of global energy transition.

As the 2nd event of this kind in 2023, the forum also discussed strategies to attract investment for the ongoing energy transition process in the country.

In his opening remarks, Nitin Kapoor, Co-Chair of the VBF, said that Vietnam has been actively implementing various policies regarding energy transition, including prioritising renewable energy sources in electricity production, and researching new technologies in the field of electricity and energy.

On the threshold of the upcoming 28th UN Climate Change Conference of the Parties (COP28) in Dubai, the United Arab Emirates, the forum promoted dialogue between the private sector both at home and abroad and state management agencies on important issues of the energy sector, including the upcomin
g establishment of a national steering committee for key energy projects, he said.

Issues discussed at the event will support the Vietnamese Government’s efforts to achieve international commitments to net zero emissions, Kapoor added.

Luong Quang Huy, Head of GHG Mitigation and Ozone Layer Protection Division under the Deapartment of Climate Change at the Ministry of Natural Resources and Environment (MONRE), briefed participants on energy transition strategies and policies, and updated information on Vietnam’s international commitments and energy policy.

Representatives from financial institutions, funding organisations, and power companies also discussed how the public and private sectors can work together to promote renewable energy development, and leverage decarbonization efforts to advance development goals, thus achieving the net zero emission target and promoting the country’s GDP growth.

Kojima Masao, Country Head of the Bank of Tokyo Mitsubishi UFJ Ltd (MUFG) in Vietnam, mentioned main issues r
elated to power purchase agreement (PPA) between producers and customers, and risk mitigation measures.

On the occasion, the third edition of the Made in Vietnam Energy Plan Report (MVEP 3.0) was introduced.

The report provides an overview of Vietnam’s electricity industry, explains the energy transition process in Vietnam, and existing strategies and policies to promote this process. Vietnam’s successes in promoting renewable energy development, and challenges to achieve the country’s goals are also mentioned in the report.

The report also features experience from economies in the region and around the world in building an effective legal framework to promote the energy transition process as well as ways to arrange capital for renewable energy projects, determine an electricity price roadmap, and ensure national energy security./

Source: Vietnam News Agency