Category: Business

Vietnam’s vegetable export revenue is forecast to reach about 1-1.5 billion USD by 2030 under a project recently approved by the Ministry of Agriculture and Rural Development.

The nationwide vegetable production is estimated at 23-24 million tonnes, with around 1-1.3 million tonnes designated for processing.

Under the project, safe and concentrated vegetable growing areas with clear origin will be developed in order to meet domestic and export demand, contributing to national food security, food safety and hygiene, and improving community health.

By 2030, the national vegetable cultivation is projected to cover an area of some 1.2-1.3 million hectares. The area dedicated to safe and concentrated vegetable production will be around 360,000-400,000 ha, roughly 50,000-60,000 of which will be for processed vegetables, including various types of tomato, cucumber, chilli, potatoe, and leafy greens.

Provinces and centrally-run cities must draw investments in agriculture and rural areas and step up the formation
of integrated production chains for vegetables, starting from cultivation zones to processing and consumption.

Regarding the domestic market, the focus is on continuing to assist enterprises, cooperatives and households in building brands for safe vegetables. This involves linking these brands with cultivation zone codes and geographical indications. Distribution channels for safe vegetables will be diversified with the establishment of trading platforms, supply-demand connectivity, exhibitions, and trade promotion activities.

For exports, the strategy involves maintaining existing traditional markets for while actively expanding into new ones. Proactive negotiation to eliminate trade barriers is crucial, thus making it easier for Vietnamese vegetable products to be widely consumed in the global market./.

Source: Vietnam News Agency

Amidst fierce competition with road and air transport, the railway sector has worked on improving its service quality in recent times to bring new experiences to passengers, and achieved excellent results.

Robust business results

The Hanoi Railway Transport Joint Stock Company (Haraco) reported a profit of over 97 billion VND (USD) during January – September, a year-on-year surge of 177.9%. Meanwhile, the Sai Gon Railway Transport Joint Stock Company gained over 80 billion VND in profit, accounting for 210% of the figure recorded in the same time last year.

This is an encouraging sign for the industry as train operators had hit rock bottom from 2019 to 2021. This was the railway sector’s toughest-ever period as they ran the risk of grinding business to a halt due to mounting losses.

The sector has got back on track with the operation of five-star trains on the Hanoi – Ho Chi Minh City (Reunification Express), Sai Gon – Nha Trang, and Hanoi-Sa Pa lines. Most recently, a pair of luxury trains connecting Ha
noi with Da Nang went into service on October 20. With the carriage interiors and exteriors refreshed, and sleeper cabins designed with elegant style and equipped with new blankets, sheets, pillows and curtains, the trains are widely expected to attract more passengers, especially foreign tourists.

General Director of the Vietnam Railway Hoang Gia Khanh described the British travel guide Lonely Plant’s listing the Reunification Express among the world’s most incredible train journeys as an advantage that the railway sector needs to capitalize on.

In fact, train operators have channeled focus on upgrading services to lure more passengers to the line, he said.

The industry’s update of new technologies has offered passengers a new experience. With a quick scan of the provided QR codes, they are able to access a website and seek out 34 cities and provinces with train routes.

Passengers have been impressed with the launch of the executive lounge with private boarding entrance at Hanoi Railway Station and sever
al large stations across the country.

Infrastructure upgrade needed

Despite robust signs, the railway is yet to compete with road and air transport, said Deputy Minister of Transport Nguyen Danh Huy.

He suggested the sector make investment in infrastructure upgrade while waiting capital for the high-speed railway, elaborating the move will help it maintain the foothold as the key transport sector of the country.

He said the renovation of railway infrastructure lays a foundation for the sector to fine-tune its service quality in the transport of both passengers and goods.

In the coming time, railway enterprises will enhance container freight train service and better engage in the global logistics chain, with transport costs adjusted to attract customers.

Additionally, it will provide international freight service at eight stations, namely Dong Dang (Lang Son), Lao Cai, Yen Vien (Hanoi), Kep (Bac Giang), Song Than (Binh Duong), Kim Lien (Da Nang), Dieu Binh (Binh Dinh), and Trang Bom (Dong Nai), where goo
ds will undergo customs clearance procedures.

The Government has issued Resolution No 178/NQ-CP on an action plan for implementing the Politburo’s Conclusion No 49-KL/TW on the development orientation of Vietnam’s railway transport to 2045.

The action plan sets out tasks including perfecting institutions and policies, completing railway planning and related plans and mobilising resources to invest in rail transport. From 2025 to 2045, the Ministry of Planning and Investment is authorised to prioritise the allocation of medium-term and annual State budgets to invest in railway infrastructure, especially in the North-South high-speed railway project, while the Ministry of Finance should give priority to increasing State budget allocation for railway infrastructure maintenance.

From 2023 – 2045, the Ministry of Transport is assigned to call on economic sectors to participate in railway business and transport support services.

In the conclusion issued in February on orientations for railway transport developm
ent by 2030 and a vision to 2045, the Politburo identified the North-South high-speed railway as the backbone railway of the country. The conclusion’s objective is to complete the approval of the investment policies of the North-South high-speed railway project and start the construction of priority sections in 2026-30, including the Hanoi – Vinh section and the Ho Chi Minh City – Nha Trang section.

According to the feasibility report, the project will pass through 20 provinces. It will encompass of total length of 1,545 km, with a maximum operating speed of about 320 km per hour. The total estimated investment of the rapid transit project is about 58.71 billion USD.

Vietnam currently has 2,440km of railway running throughout the country./.

Source: Vietnam News Agency

The first batch of Vietnamese bird’s nests has smoothly gone through customs at the Youyi Guan international border gate in Pingxiang city, the Guangxi Zhuang Autonomous Region of China, to enter China, according to Chinese media.

The batch comprises 100kg of bird’s nests worth 907,000 RMB (over 126,00 USD).

China is the world largest bird’s nest consuming market with a demand of more than 300 tonnes per year, accounting for about 80% of the global consumption.

Chinese data showed that China imported 220 tonnes of bird’s nests in 2020, more than 300 tonnes in 2021 and 425 tonnes in 2022, mostly from Indonesia, Malaysia, Thailand and now Vietnam.

In Vietnam, swift farming for nests for commercial purposes is a new industry, which started in 2004 in southern provinces and has since developed rapidly over the last decade.

Currently, 42 out of 63 provinces engage in bird’s nest farming with over 22,000 bird’s nest houses. Vietnam’s annual bird’s nest output is about 150 tonnes worth over 600 million USD. Wi
th the effectiveness of the protocol with China, the bird’s nest industry has many opportunities for development.

Following durian and dragon fruit, the export of bird’s nests of Vietnam to China are expected to bring high export value for the country./.

Source: Vietnam News Agency

A conference promoting business opportunities and connection between the northern port city of Hai Phong and Indian partners has been held in both face-to-face and online formats as part of the Red River Delta – Hai Phong Industry and Trade Fair hosted by the municipal People’s Committee.

Jointly organised by the municipal Department of Industry and Trade, the Asia-Africa Market Department under the Ministry of Industry and Trade (MoIT), and the Vietnam Trade Office in India, the event saw the participation of representatives from 100 businesses of India and Hai Phong city.

Addressing the event, Vice Director of the municipal Department of Industry and Trade Nguyen Cong Han said the ASEAN-India Free Trade Agreement, which officially took effect in 2010, has helped boost trade relations between Vietnam and India in general, and between Hai Phong and India in particular.

However, the trade turnover between Hai Phong and India remains modest. The trade value between the two sides reached over 202.5 million U
SD in 2022, down 3.72% compared to 2021. Meanwhile, the figure in the first 10 months of 2023 was 160.86 million USD, up 6.26% year-on-year, he said.

With its advantages in terms of seaports, manufacturing, textiles, footwear, and aquaculture, Hai Phong’s industries satisfy the demand and preferences of the Indian market. The event was expected to further boost trade connections between Hai Phong and India firms, contributing to promoting bilateral export-import activities.

Do Quoc Hung, Deputy Director of the Asia-Africa Market Department, said this was a significant event in the context that there remains potential and opportunities for stronger cooperation between Vietnam and India.

The Indo-Vietnamese Chamber of Commerce and Industry (IVCCI), the Confederation of Indian Industry (CII), the Federation of Indian Chambers of Commerce and Industry (FICCI), and the Federation of Indian Export Organisations (FIEO), have consistently supported the MoIT and the Vietnam Trade Office in India in promoting econ
omic, trade, and investment relations between the two countries, he added

Chairman of IVCCI in Hanoi Indronil Senguta highly evaluated the business and investment environment in Vietnam, saying that the Southeast Asian country has effectively leveraged the global trend of production chain diversification by major corporations in the world.

Numerous Indian investors are very interested in the Vietnamese market, especially in provinces and cities with convenient connectivity and transport like Hai Phong, which is considered Vietnam’s northern gateway, he said.

Hai Phong is one of the most important economic hubs in Vietnam, ranking third among the largest contributors to the national budget. Hai Phong is the largest import-export centre in the North, having trading relations with more than 40 countries and territories around the world.

By September 30, 2023, the port city attracted over 1,000 foreign direct investment (FDI) projects worth nearly 28 billion USD. In the first nine months of this year, FDI inf
lows in the city hit over 3 billion USD, up over 140% compared to the same period last year./.

Source: Vietnam News Agency

Ho Chi Minh City topped the first-ever Vietnam Provincial Logistics Competitiveness Index (LCI) 2022, followed by Hai Phong, Binh Duong, and Ba Ria – Vung Tau and Hanoi, according to a report recently announced by the Vietnam Logistics Association (VLA).

At the report announcing ceremony, VLA Chairman Le Duy Hiep said that during August 2022 – November 2023, the VLA, in collaboration with the Vietnam Logistics Research and Development Institute (VLI) and consulting service provider Dream Incubator, drew the report based on a survey on 26 cities and provinces nationwide with the most outstanding GRDP, volume of transported goods, and number of logistics businesses.

The report also highlighted that infrastructure, human resources, logistics service providers, logistics service users and regulatory frameworks are important to shape up a sound logistics system, he added.

The LCI, an index that evaluates the development speed, quality, infrastructure, and policies of municipal and provincial authorities for lo
gistics service businesses in Vietnam, will be conducted yearly, providing an insight into localities’ logistics industry based on five pillars namely economy, logistics services, regulatory frameworks – policies, logistics infrastructure, and workforce.

According to VLI Director Ho Thi Thu Hoa, the LCI provides a foundation for organisations and enterprises to outline business strategies and make wise investment decisions so as to improve competitive edge.

Furthermore, the index will play an important role in promoting logistics development in the region and in Vietnam as a whole, she said.

Vietnam is now home to 4,000 logistics firms, 70% of them are located in Ho Chi Minh City and neighbouring localities. Most of the businesses are operating at a small scale, with 90% of them having less than 10 billion VND (over 413,800 USD) in capital, and 1% more than 100 billion VND./.

Source: Vietnam News Agency

Amid difficulties in the world market, greater attention should be paid to promoting the domestic market, one of the “healthy” pillars at present of the economy, to boost growth, according to Prof. Dr. Bui Quang Tuan, Director of the Vietnam Institute of Economics.

The expert noted that in 2023, Vietnam has encountered headwinds coming from the unfavourable circumstances both inside and outside the country, coupled with difficulties of an open economy depending on export.

However, achievements that the country gained in the first 10 months of this year have reflected the proper response of the Government as well as efforts and determination of the whole economy.

Pr. Dr. Tuan noted that in the January-October period, Vietnam posted a trade surplus of 24.6 billion USD. The country welcomed 10 million visitors in the period, 4.2 times higher than that in the same period last year, exceeding the target for the whole year. At the same time, the disbursement of public investment capital reached 65% of the plan,
a 23% surge year on year. Total foreign direct investment (FDI) that the country attracted in the period hit 33.3 billion USD, the highest level since 2019.

Particularly, the average inflation in the first 10 months of this year rose 3.2%, much lower than the target of 4.5%, he said.

However, the expert was cautious when forecasting the growth target, suggesting that a goal of 5 – 5.5% is reasonable.

Prof. Dr. Tuan underlined that as it is impossible to depend on the outside for economic recovery, the country should rely more on the domestic market. Healthy pillars should be promoted, while backup plans should be made for weaker ones, he said.

Tuan asserted that currently, export is a weak pillar, while domestic consumption has great potential to lead the market in the year-end period.

He pointed out that total retail sales of goods in the first 10 months of this year increased sharply, showing the recovery of consumers’ confidence. At the same time, investment from non-State sector has considerably reco
vered, while FDI attraction has also gained speed and public investment capital disbursement has improved in both terms of quality and quantity.

In the remaining two months of this year that leads to the new year holiday, the domestic demand is likely to surge, providing opportunities for the country’s economy to make breakthroughs, the expert held.

Forecasting the economic outlook in 2024, Tuan said that it is difficult to give a particular figure. Instead, more attention should be paid to guiding policies to create a more foundation for the future, which are policies in promoting digital economy, green economy and sustainable development, he said, stressing that the sooner these orientations are made public, the better businesses can adjust their plan for the rest of the year and also for longer term.

Only when promoting and restoring internal strength will the economy quickly overcome the current difficult and challenging period, said Tuan. By that way, businesses can consolidate and improve their compe
titiveness to develop faster and stronger in the future, the expert held./.

Source: Vietnam News Agency