Category: Business

Recent interest cuts by the State Bank of Vietnam (SBV) could send trillions of VND in savings into the property market, according to the Vietnam Association of Realtors (VARs).

This could send investors hunting for good deals in the property market despite the tightening of monetary policies by the central bank and recent downturns in the market. The flow of capital could give a lifeline to the market, as well as dozens of industries including construction materials, machinery, equipment, furniture, and labour that are traditionally dependent on property sales.

There have been signals from the government that starting from the second quarter of 2023, additional policies will take place to provide additional money to the market.

In the meantime, local authorities have been told to step up efforts in resolving legal bottlenecks to allow property projects to take off. This time around, according to the association, developers have taken steps to address the market’s demand.

Factors that favour the market’s recovery include reduced interest rates, a move by commercial banks that have allowed developers access to much-needed capital injections, and where to start new projects or to finish ongoing ones.

Nguyen Van Dinh, Chairman of the VARs, said with credit room starting to open up and additional capital flowing into the market could look at a recovery phase in the near future. Traditionally, he added, properties were the preferred investment channel among Vietnamese investors that often yielded higher returns than others.

He said now could be a good time for investors to start looking for good deals as prices have had time to cool down significantly during last year.

According to the association, the tightening of monetary policy by the central bank and the government have shown signs of slowing down and could start opening up as soon as the second quarter of 2023.

Capital inflow could also be expected by the third quarter, he said.

Last year, total deposits by businesses and individuals in the banking system reached 900 trillion VND with individuals accounting for more than 565 trillion VND. The third quarter of 2023 would be a critical period as a large portion of said deposit would mature, with investors sitting on piles of cash looking for more profitable investments.

Reports from property brokers have been so far positive, with the market starting to see upticks in transactions and a higher number of requests for information by potential buyers.

Dang Quoc Viet, a representative from Smartland Real Estate Trading Floor in the northern province of Nghe An, said more prospective investors had made calls and visited his trading floor in recent weeks.

He said many had shown great interest in projects with good reputations and infrastructure, a markedly improved situation compared to last year. He added this could be a sign that investors’ confidence in the market was returning./.

Source: Vietnam News Agency

The first batch of Vietnamese seedless lychees arrived in the UK on June 16, becoming the fourth specialty fruit of Vietnam exported via the official channel to the demanding market this year.

The batch was imported by TT Meridian – a distributor of Vietnamese lychees and agricultural products in the UK. The seedless lychees were grown in the north central province of Thanh Hoa’s Ngoc Lac district.

Thai Tran, managing director of the company, said the retail price of the seedless lychee ranges from 16-18 GBP per kg, 3-4 GBP higher than the normal one.

If its quality and price are welcomed by the UK market, the company will import about one tonne a week in June and July – the harvest season of lychees in Vietnam, he noted.

He said that the company’s whole process from harvesting the fresh fruits at farms in Vietnam to selling them in the UK takes only 36 hours.

According to Thanh Hoa’s official portal, Ngoc Lac seedless lychees are produced following VietGAP, GlobalGAP, and organic standards qualified for export to Japan, Canada, and Europe. The fruit when ripen has a bright red colour, with its crispy pulp tasting slightly sweet. This variety, imported from Japan, has been grown across about 30ha in Ngoc Lac by Ho Guom – Song Am High Tech Agriculture Limited Liability Company since 2019. This is its first year of harvest with an estimated output of over 20 tonnes./.

Source: Vietnam News Agency

The Cuu Long (Mekong) Delta province of Ben Tre is expanding the development of value chains for key agricultural products.

The key agricultural products include coconut, rambutan, green-skin and pink-flesh grapefruit, longan, flowers and ornamental plants, pigs and cattle.

Ben Tre, which is the country’s largest coconut producing province, has more than 78,000ha of coconut with an annual output of 688 million nuts. More than 70% of the province’s population earns their income related to coconut growing and production.

Thirty-two co-operative groups and 28 cooperatives, with a total of more than 6,200 members, have developed value chains for a total of more than 5,648ha of coconut.

More than 348ha of rambutan, 98.5ha of longan and 374ha of green skin and pink flesh grapefruit in the province have value chains to secure the quality of the fruits, buyers and stable prices for farmers.

Nguyen Van Nhip in Giong Trom district’s Phuoc Long commune has linked with a processing company to grow coconut under organic methods for two years.

After linking with the company, he has secured buyers and gets a selling price of 5,000 – 8,000 VND per dozen of coconut higher than the market price.

The company teaches him organic growing techniques, and this helps reduce the cost of chemical fertilisers and pesticides.

The province has 67 cooperative groups and 67 cooperatives which link with companies to develop value chains for their agricultural production, according to its Department of Agriculture and Rural Development.

Ngo Tuong Vy, General Director of Chanh Thu Export and Import Fruit Company Limited in Cho Lach district, said her company supported the linkage between farmers, cooperatives and companies, and this linkage needed to focus on the long term and sustainability.

The company hopes the department will assist it to develop a value chain for 100-200ha of durian.

It is willing to invest in co-operatives and assist in managing and operating them properly, according to Vy.

Huynh Quang Duc, deputy director of the department, said cooperative groups and cooperatives were weak in linkages with other related stakeholders in their production.

The linkage between farmers and companies in some localities was not sustainable and effective, he said.

Most companies participating in value chains which buy agricultural produce, except coconut, were small or medium sized, did not have stable buyers and were easily affected by many reasons, he said.

“The province will strengthen implementing advocacy activities, transfer farming techniques and provide consultancy for developing value chains,” he said.

Nguyen Minh Canh, Vice Chairman of the provincial People’s Committee, said the province would take measures to effectively develop value chains for key agricultural products and improve the lives of people.

The measures would include developing linkages among farmers through cooperative groups and co-operatives, between cooperative groups and cooperatives and companies, and developing companies which lead related stakeholders to develop strong value chains, he said.

Dam Van Hung, owner of Huong Mien Tay in Mo Cay Bac district, which is the province’s largest establishment specialising in exporting green skin and pink flesh grapefruit, said that to develop a value chain for an agricultural product, it should be developed through the collective economy.

His establishment has linked with cooperative groups and cooperatives which grow green skin and pink flesh grape fruit to buy the fruit, and this secures both buyers for farmers and quality fruits for his establishment to export, he said.

The province aims to get production value of 1 billion USD for coconut and shrimp each in 2025, and 500 million USD for cattle, and flowers and ornamental plants each.

It will develop six concentrated coconut growing areas, including five organic coconut growing areas for a total of 1,826ha and a 20ha coconut growing area for harvesting young nuts for drinking juice.

More farmers in the province have switched to growing their agricultural produce with good agricultural practices (GAP) standards, along with origin traceability and brand names, to improve value.

The province has more than 24,240ha of coconut, fruits and aquaculture which are cultivated under GAP or organic standards./.

Source: Vietnam News Agency

President Ferdinand R. Marcos Jr. on Friday expressed gratitude to China for its ‘generous’ donation of some 20,000 metric tons of urea fertilizers to the Philippines, saying the act is a testament to the two nations’ improving ties. During the turnover ceremony at the National Food Authority (NFA) warehouse in Malanday, Valenzuela City, Marcos inspected the donated urea fertilizers from China. Marcos also received the certificate of handover on fertilizer donation from Chinese Ambassador to the Philippines Huang Xilian who represented the Chinese government. ‘In behalf of the Filipino people, let me extend our deepest gratitude and appreciation to the Chinese government and its people for this donation – a solid gesture of friendship and goodwill,’ the President said in a keynote speech. ‘I am not surprised that immediately, upon our request for any assistance in terms of fertilizer supply, China immediately understood the predicament that we’re in. Thus, we have today the turnover of 20,000 metric tons of urea fertilizer from China to the Philippines,’ Marcos added. Marcos said the donation would help realize his administration’s bid to boost agricultural production in pursuit of food security. In a chance interview, Marcos said the donated fertilizers will be distributed to farmers in Luzon through the Department of Agriculture’s (DA) existing voucher system. ‘Inuna muna natin dito sa Luzon. So idi-distribute ito sa Luzon (We will prioritize Luzon. We will distribute these in Luzon) through the voucher system that we already have. So, isasama na lang natin itong supply ng fertilizer na ito (these will be included in the supply of fertilizers [that we will give to local farmers]),’ he said. ‘The diligence and hard work of our farmers are the realizable goal of food self-sufficiency and the lasting beneficial impact of the long-standing friendly ties between our two nations,’ he added. The donated urea fertilizers worth renminbi (RMB)100 million (PHP782.68 million) are part of the grant provided in the Agreement on Economic and Technical Cooperation between the Philippine and Chinese governments on April 25, 2019. Urea is widely used in the agriculture sector both as a fertilizer and animal feed additive. With its high nitrogen content of about 46 percent, urea fertilizer initiates vegetative growth and makes the plants look lush. It is a white crystalline organic chemical compound that is neutral and can adapt to almost all types of soil and crops. ‘Promising’ agri cooperation Marcos said the agricultural cooperation between the Philippines and China turns out to be ‘very, very promising.’ This, as he acknowledged the similarities in the two nations’ initiatives to improve their food production and ease their farmers’ plight. ‘So, we can learn from one another in many, many ways, and that has been an ongoing process for long time now. Not just now, because of the food crisis that we are feeling around the world but also we have a very similar priorities when it comes to agriculture, so I am very optimistic,’ Marcos said. Strengthening ties Following China’s donation of urea fertilizers, Marcos reassured the Chinese government that he is committed to further elevating Manila’s ties with Beijing. ‘These generous acts symbolize the value of the relationship between our two countries. We must continue to nurture, we must continue to care for that through acts of mutual assistance and constant and amicable dialogue,’ he said. ‘I assure the Chinese government that the Philippines will always work for the strengthening of our ties and the advancement of our mutual interests and they are many. As we walk to the next half-century of our diplomatic ties, let this day be a celebration of many things for us,’ Marcos added. The Chief Executive made the vow, as he recognized China’s latest move as a ‘solid gesture of friendship and goodwill.’ ‘World-class’ agriculture Marcos also reiterated his vow to improve Philippine agriculture as he continues to take on the DA portfolio. He said he is keen on boosting the agriculture industry’s global competitiveness, as well as on making it ‘world-class.’ ‘We are a global economy, and we have to compete in the global economy. And that is why our agriculture has to be brought to a level where we can say it is world class and can compete with all the agricultural producers around the world, especially in our region,’ Marcos said.

Source: Philippines News Agency

A business dialogue between ASEAN and the Eurasian Economic Union (EAEU) was held on June 15 in the framework of the 26th St. Petersburg International Economic Forum (SPIEF) in Russia.

The year 2023 marks the 5th anniversary of the signing of the Memorandum of Understanding between ASEAN and the EAEU on economic cooperation, as well as the 5th anniversary of the ASEAN-Russia Strategic Partnership.

The ASEAN-EAEU dialogue on June 15 aimed at creating additional impetus to strengthen and diversify cooperation in all areas of the economic and trade agenda, including the circular economy, energy efficiency, industry, food security, logistics, digital technology and tourism.

At the dialogue, speakers all affirmed the great potential of economic cooperation between ASEAN and the EAEU.

Member of the Board – Minister in charge of Integration and Macroeconomics of the Eurasian Economic Commission Sergey Glazyev said that for the EAEU, ASEAN is the most important partner in terms of the system of agreements. However, the low bilateral trade turnover shows that there are great potential and many development opportunities between the two blocs, and it is necessary to convert these potentials into actual results.

One of the limitations affecting trade exchanges between the two blocs is the issue of payment, he said, proposing making payment in local currency, or by developing gold standard electronic currency. However, Glazyev said that the most important thing is that businesses should get more information and increase understanding of each other.

Deputy Secretary-General for the ASEAN Economic Community for 2021-2024 Satwinder Singh suggested three directions to strengthen cooperation between the two blocs, namely energy security, digital technology, and agricultural products and food processing.

Russia’s Deputy Minister of Economic Development Evgeny Zagainov said that ASEAN and its member countries have a significant position in the pivot strategy of Russia – the most important member state in the EAEU.

Zagainov said that within the past year, he has joined Russian delegations to Indonesia, Vietnam, Cambodia, Thailand, and Myanmar to promote trade.

ASEAN is an important market for Russia due to its high economic growth rate, large population, which lead to a large and attractive consumer market, he said, adding that the tourism sector also has a lot of potential for people of both blocs./

Source: Lao News Agency

The share of tourism to the country’s gross domestic product (GDP) could reach as high as eight percent this year due to the further reopening of the Philippine economy, an economist said on Friday. In an interview with the Philippine News Agency (PNA), Rizal Commercial Banking Corporation chief economist Michael Ricafort said the share of tourism to the GDP could grow to 7 to 8 percent, from more than 6 percent in 2022, given the continued recovery and growth in foreign and local tourism due to the easing of restrictions since early 2022. “Tourism’s contribution to the economy continued to increase as the economy reopened towards greater normalcy, with no more large lockdowns since 2022 that eased restrictions on the movement of tourists around the country as increased vaccination doses effectively reduced new COVID-19 cases,” Ricafort said. Data from the Philippine Statistics Authority (PSA) showed that in 2022, the share of Tourism Direct Gross Value Added (TDGVA) to the Philippine economy, as measured by the GDP, is estimated at 6.2 percent. The TDGVA amounted to PHP1.38 trillion last year, higher by 36.9 percent from PHP1.00 trillion in 2021. Ricafort said the government’s policy to keep the economy as open as possible and the optional wearing of face masks further boosted both local and foreign tourism activities around the country. He added that China, which is one of the biggest sources of tourists for the country, also eased restrictions last December 2022, thereby allowing more foreign tourists from the said country to come to the Philippines. “For the coming months, tourism, both local and foreign, could still contribute more as a bright spot for the local economy, as a source of additional jobs and other business opportunities in various tourist destinations around the country, especially outside Metro Manila, also positively contributing to business and other economic activities in nearby areas of major tourist destinations,” said Ricafort. Ricafort however cited the importance of further investing in adequate infrastructure such as airports, seaports, toll roads, mass transport systems, among others to support a higher number of foreign and local tourists.

Source: Philippines News Agency