Category: Business

Enterprises in the shipping industry reported disappointing third-quarter business results with several companies facing losses.

The lacklustre corporate profits can be attributed, in part, to the recovery of exports and imports in the third quarter of this year, which although improved, still declined in comparison to the same period last year.

Vietnam Sea Shipping Joint Stock Company (VOS) recently disclosed its business results with a substantial loss, reflecting the challenging conditions prevailing in the shipping market.

In the third quarter, VOS’s net revenue experienced a slight increase of nearly 8 billion VND (nearly 322,000 USD) compared to the same period last year, reaching 710 billion VND (29.4 million USD).

However, despite the revenue growth, the surge in the cost of goods, which rose by nearly 160% to VNÐ715 billion, resulted in VOS incurring a loss of nearly 25 billion VND. This is in stark contrast to the profit of nearly 152 billion VND recorded during the same period last year. Conse
quently, this marks the first quarter where the company reported a loss since the second quarter of 2021.

In the first nine months of 2023, VOS’s accumulated profit stood at approximately 48 billion VND, a significant decline of nearly 10 times compared to the same period last year.

Cai Lan Port Investment Joint Stock Company (CPI) faced a decline in net revenue, reaching only 8 billion VND, down by 46% compared to the same period last year. The company’s gross profit plummeted by 91% during this period, amounting to slightly over 250 million VND. Additionally, financial revenue experienced a sharp decrease of 92% to 3 billion VND, while business management costs rose by over 1.2 billion VND. Consequently, Cai Lan Port reported an after-tax loss of 770 million VND in the third quarter of 2023, compared to a profit of nearly 3 billion VND in the same period last year.

In the first nine months, Cai Lan Port’s revenue amounted to 23 billion VND, down by 49% compared to the same period last year. The company i
ncurred an after-tax loss of nearly 1.7 billion VND during this period, while it had a profit of 5.5 billion VND in the corresponding period last year. As of the end of the third quarter, Cai Lan Port’s accumulated loss exceeded 404 billion VND.

Similarly, Phuoc An Port Investment and Exploitation Petroleum Joint Stock Company (PAP) also reported a loss in the third quarter. With no recorded revenue during this period, the company solely incurred business management costs, resulting in an after-tax loss of nearly 1.7 billion VND. In comparison, it incurred a loss of 4.6 billion VND during the same period last year.

In the first nine months of 2023, Phu?c An Port recorded a loss of nearly 5 billion VND, whereas it reported a loss of 6 billion VND in the corresponding period last year.

Despite a decrease in net revenue, certain businesses have managed to achieve profit growth by capitalising on revenue from other sources.

Can Tho Port Joint Stock Company (CCT) experienced a net revenue decline of over 4% in
the same period, amounting to 34 billion VND. Simultaneously, the cost price rose by nearly 9% to over 28 billion VND, resulting in a 31% decrease in gross profit to 6 billion VND. Net profit from business activities also declined by more than half in the same period, reaching 675 million VND.

However, with the inclusion of income from the liquidation of fixed assets and after deducting expenses, the company reported a profit after tax of 3.3 billion VND, nearly 2.5 times higher than the same period last year.

In the accumulated nine months, Can Tho Port’s revenue reached 108 billion VND, reflecting a 14% increase compared to the same period last year, and the profit after tax surged by 20 times to 4.5 billion VND.

Among the various reasons hindering positive profits in the shipping industry, a significant factor is the decline in import and export activities compared to the same period last year, despite a recovery taking place.

According to the General Department of Customs, export turnover in the third
quarter of 2023 is estimated to reach 94.6 billion USD, displaying a 10.3% increase compared to the second quarter of 2023. However, it still represents a 1.2% decline compared to the same period last year. Import turnover is estimated at 86 billion USD, which is a 4.5% decrease compared to the same period last year but an 11% increase compared to the second quarter of 2023.

Significantly, after four consecutive months of growth, exports exhibited signs of decline in September, dropping by 4.1% compared to August.

Freight prices are currently rebounding, according to Yuanta Vietnam Securities Limited Company (YSVN).

Analysts also assert that the shipping, seaports and logistics sectors are poised to benefit from the recently upgraded comprehensive strategic partnership between Vietnam and the US.

The US remains Vietnam’s largest export market, with turnover to the US increasing by 13.6% in 2022. In the first nine months of 2023, Vietnam recorded a trade surplus of 60.7 billion USD with the US.

Mirae Asse
t Securities Joint Stock Company (Vietnam) predicts that Vietnam’s seaport and logistics industry will be among the sectors that benefit the most from the improved Vietnam – US relations, considering the US as the largest consumer of Vietnamese goods./.

Source: Vietnam News Agency

The target of 700 billion USD in import-export revenue for this year is a tough one amid current difficulties in the global market, said insiders.

According to the Ministry of Industry and Trade (MoIT), in the first 10 months of this year, Vietnam’s import-export revenue reached 558 billion USD, down 9.6% year on year, with exports dropping 7.1% and imports falling 12.3%.

The results make it challenging to fulfil the goal for the whole year, as from now to the end of the year, the revenue must reach 71 billion USD which is hard in the context of fierce strategic competition among world powers, increasing uncertainty and slow global economic recovery, the ministry said.

In this context, the MoIT is rolling out various measures to support businesses in promoting exports.

Do Ngoc Hung, head of the Vietnam Trade Office in the US, said that the agency is working to strengthen the connections between local buyers with Vietnamese suppliers, while assisting the selling of Vietnamese products in the distribution
system of the US.

Meanwhile, Mac Quoc Anh, Vice President and General Secretary of the Hanoi Association of Small and Medium-Sized Enterprises said that businesses hope that the State Bank of Vietnam and commercial banks consider the reduction of conditions for loan borrowing by 50% and only apply basic conditions, thus enabling enterprises to access loans more easily with larger amount.

Anh held that the most important thing at the moment is to ‘warm up’ the overall demands, helping business clear their inventories and get more cash flow for production and business activities.

He advised companies to actively engage in connections and promotion programmes in localities across the country, especially far-flung areas to stimulate people’s consumption./.

Source: Vietnam News Agency

Domestic investors outperformed their foreign counterparts in the southeastern region, as many localities have paid heed to luring capital flows at home to ensure sustainable growth.

The Ho Chi Minh City Export Processing and Industrial Zones Authority (HEPZA) reported that in the first 10 months of this year, domestic investors poured 17.95 trillion VND (764 million USD) into industrial parks in the metropolis, while foreign direct investment (FDI) stood at only 184 million USD.

Binh Duong province, an industrial hub, attracted 71.44 trillion VND and 1.3 billion USD in the reviewed period. The trend was also seen in its neighbour Dong Nai province with 50.75 trillion VND and over 1 billion USD, respectively.

Over the past time, the localities have been selective in investment attraction, prioritising high-tech, less labour-intensive and environmentally friendly projects, experts explained.

Moreover, the industrial land fund in many cities and provinces in the region have narrowed, while new industrial p
arks have yet to be formed, making them unable to house FDI projects.

Investors have seen great opportunities in the region whose infrastructure is expected to be completed by 2026 with Belt Road No. 3 in HCM City, Bien Hoa-Vung Tau and Ben Luc-Long Thanh Expressways, and Long Thanh International Airport.

Therefore, those from the US and Japan, and domestic firms have continuously proposed urban area, industrial park and high-tech agriculture projects in Dong Nai and Binh Duong.

Many have suggested the localities further improve their investment environment, upgrade infrastructure, and pay more attention to personnel training.

In response, leaders from such provinces as Binh Duong and Dong Nai have regularly met domestic associations and businesses to seek ways to remove their obstacles given declining orders, and support small- and medium-sized enterprises in digital transformation./.

Source: Vietnam News Agency

The Government has issued a resolution regarding the extension of the pilot use of telecom payment accounts for small-value goods and services until December 31, 2024.

Accordingly, the State Bank of Vietnam was assigned to partner with the Ministry of Information and Communications, the Ministry of Public Security, the Ministry of Justice, and relevant agencies to review and report the issuance of legal documents regulating Mobile-Money service before May 2024 to competent authorities.

In 2021, the Prime Minister approved the pilot of Mobile-Money service nationwide for two years, starting from March 9, 2021.

The service allows customers to use their telecom accounts to conduct various transactions, including payment for small-value goods and services, money transfer, direct deposit and withdrawal at outlets and transaction points of telecom providers throughout the country, without requiring a bank account, a smart phone, or Internet connection.

According to the Ministry of Information and Communication
s, the number of clients using Mobile-Money service exceeded 3.9 million as of early May 2023, tripling the figure for the same period last year.

Among them, the number of clients in rural, remote and mountainous areas reached over 2.7 million, accounting for 69% of the total.

There were 9,953 Mobile Money service points nationwide, up 12% from March; and 15,326 units accepting payment via Mobile Money, up 0.2%. The total number of withdrawals, transfers and payments through Mobile-Money was over 26.1 million, with a total value of roughly 1.683 trillion VND (70.1 million USD)./.

Source: Vietnam News Agency

The Vietnam Export Promotion Forum 2023 with the theme of ‘green export promotion’ will be held in Hanoi on November 24, the Ministry of Industry and Trade (MoIT) has announced.

The event is expected to gather 300 experts, enterprises and international organisations in Vietnam, aiming to create a channel for dialogue and consultation with many stakeholders to shape, identify difficult problems and opportunities in green trade development, and propose solutions and support policies for green trade.

It is also an opportunity to share practical experiences of pioneering businesses in green production and sustainable export development to meet global green consumption trends.

According to the MoIT, green growth and circular economy are becoming a global trend, drastically practiced in the world’s most developed economies as a solution to reduce greenhouse gas emissions, aiming for a long-term carbon neutral economy.

The ministry said that responsible business and environmental protection are mandatory requir
ements for businesses producing exports as these factors affect the global value chain of the product. Therefore, the ministry has been promoting information to support businesses in meeting standards and criteria for sustainable development and green growth.

Experts acknowledged that Vietnam is one of the countries with strong commitments to environment at the Climate Change Summit (COP26), including a commitment to pioneer in energy transformation, along with green and digital transformation.

Statistics of the MoIT revealed that import-export is a bright spot of Vietnam’s economy with a total import export turnover reaching 732.5 billion USD in 2022.

In the first 10 months of 2023, the country’s total import-export turnover achieved 558 billion USD, a decrease of 9.6% year on year. Besides a fall in market demand, many foreign markets such as the US, the UK and the EU have raised standards for imports as an attempt to boost green transition and emission neutralisation.

Source: Vietnam News Agency

An event was held in the Central Highlands province of Dak Lak on November 20 to review a project on promoting sustainable production and trade of Vietnamese pepper.

The event was co-hosted by the Sustainable Trade Initiative (IDH), the European Union (EU) Delegation to Vietnam, the Ministry of Agriculture and Rural Development’s Plant Protection Department and the Vietnam Pepper Association.

In her opening statement, Director of the IDH Vietnam Programme Phan Thi Van said the Central Highlands accounts for around 60% of the country’s pepper cultivation area with over 70,000 ha. In recent years, the Vietnamese pepper industry has struggled with global competitiveness in terms of quality and prices, impacting the livelihoods of local pepper farmers. It is attributable to the improper use of agricultural chemicals, unsustainable farming practices, and a lack of updates on trends and new market requirements.

Funded by the EU and the IDH, the project is carried out from 2021-2023 in the provinces of Dak Lak,
Dak Nong and Gia Lai in order to help Vietnam reap the benefits of bilateral trade commitments and boost the export of quality products and services to the EU.

Through the project, nearly 8,000 farmers have improved their knowledge and green agricultural practices over an area of 8,500ha. Over the course of three years, the project has achieved several outcomes, such as a 60% increase in the volume of pepper seeds adhering to the residue requirements of the premium market; 50% of pesticide dealers committing to comply with pesticide management regulations; a 98% reduction in the use of banned pesticides, among others.

From November 19-20, representatives from the EU Delegation to Vietnam, the IDH and other partners visited the project area in Cu M’Gar district and a pepper processing plant in Dak Lak./.

Source: Vietnam News Agency