Category: Business

Hanoi: This year is forecasted to be the second consecutive year that Vietnam’s rice exports exceed 8 million tonnes, bringing in about 5 billion USD.

The global rice supply is decreasing, and countries such as the Philippines, Indonesia, China and some other markets are all increasing rice imports to ensure food security, which creates opportunities for Vietnamese rice export this year.

After many fluctuations in supply and price last year, global rice trade continues to be “hot” from the beginning of this year.

Limited supply due to unfavourable weather, exports being banned or restricted in some countries, increased import demand in many markets, and Red Sea tensions are the main reasons why the rice market heats up this year.

Global ending inventories for the 2023-2024 crop year are forecast at more than 167 million tonnes, down 8.6 million tonnes compared to the previous crop year and the lowest inventory in the past six crop years.

India, the largest exporting country, with more than 20 million ton
nes of rice per year, has applied policies restricting rice exports since the middle of last year.

Many countries have turned to finding alternative sources of rice supply, especially from Southeast Asia, creating opportunities for Vietnamese rice to increase exports, as well as get good export prices.

Vietnam’s rice exports earned more than 4 billion USD last year, with earnings expected to rise even more this year.

Nguyen Anh Son, Director of the Agency of Foreign Trade under the Ministry of Industry and Trade (MoIT), analysed that Vietnam’s rice industry has had remarkable growth through strong transformation in both production and export. The growth in output, product quality and improved production processes have helped expand the market and enhance the position of Vietnamese rice in the international market.

Selective markets such as Europe, the US, the Republic of Korea and some new markets in the Middle East tend to favour high-quality Vietnamese rice.

The MoIT requests localities and rice indust
ry business associations to share information and propose solutions in market development, with close co-ordination between units under the ministry and Vietnamese trade offices abroad in building and implementing practical, effective trade promotion activities to support rice industry enterprises in exploiting diverse export markets, building and enhancing the Vietnamese rice brand.

The Philippines can import up to 4.1 million tonnes of rice this year, up from the previous forecast of 3.9 million tonnes. Its rice imports soared due to the drought affecting domestic rice output.

China was Vietnam’s third largest rice import partner last year, with output of 917,255 tonnes, turnover of more than 530 million USD, with an average price of 578 USD per tonne.

It is predicted that this year, this market will increase rice imports to balance import and production to ensure food security, possibly exceeding the figure of more than 900,000 tonnes last year, while export price also has room for further increases.

T
he Voice of Vietnam (VOV) online newspaper quoted Nguyen Ngoc Nam, Chairman of the Vietnam Food Association, as saying that the association recommended that the MoIT strengthened information on import and export data this year, to balance rice supply and demand of the parties favourably.

He also recommended conducting market research to conduct trade promotion programmes in markets, to promptly update information about rice exporters to best orient exports.

Also vital are efforts to research and negotiate to sign preferential trade agreements with a number of potential markets to take advantage of the progress of the agreements that have been put into effect and request partners to open up more, increasing Vietnam’s rice quota.

Finally, there is the work of raising awareness of traders implementing free trade regulations to ensure sustainable production and export in Vietnam.

With timely support policies from the Government, ministries and branches, and solutions to open the market, circulate goods and pr
omote production, the export of rice has recorded a number of positive results, contributing to the consumption of rice and commodity rice at prices favourable to farmers.

Rice prices in Indonesia soared early this year due to a serious supply shortage.

Indonesia has experienced eight consecutive months of rice supply shortage compared to demand as of February this year, with rice scarcity in supermarkets, while in the Philippines the Department of Trade and Industry (DTI) has asked people to switch to buying rice with stabilisation prices to avoid rice prices rising too high in the free market.

Despite being one of the primary supply sources for Senegal, a country with one of the highest per capita rice consumption rates in West Africa, Vietnam’s rice exports to this nation remain modest.

According to the Vietnam Trade Office in Algeria and Senegal, Vietnam shipped 12,000 tonnes of rice to Senegal last year, resulting in a turnover of 5.35 million USD, up 215% year-on-year. However, the amount is small c
ompared to the African country’s purchase of 1.3 million tonnes of rice in that year.

Senegal imports between 900,000 and 1 million tonnes of the grain annually, mostly low-priced 100 per cent broken rice. Its main suppliers include India, Thailand, China, Pakistan, Uruguay and Vietnam. Apart from serving the domestic market of over 18 million people, the country also imports rice for re-export to neighbouring Mauritania, Guinea-Bissau and Gambia.

In the context of scarce supply and Senegal gearing up for presidential elections this year, it is likely that the nation will increase imports of broken rice from Asia.

In the first two months this year, rice exports reached 920,000 tonnes, worth 640 million USD, up 2.1% in volume and 35.2% in value compared to the same period last year, which is a very positive sign in the context of global rice supply being tightened.

Vietnamese rice is currently present in more than 180 countries and territories, including demanding markets such as Europe, the US, the Republ
ic of Korea and Australia./.

Source: Vietnam News Agency

Hanoi: A Vietnam – Canada business forum was held in Hanoi on March 25, aiming to enhance the bilateral economic relations via the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

In his opening remarks, Vice Chairman of the State Committee for Overseas Vietnamese (OV) Affairs under the Ministry of Foreign Affairs Nguyen Manh Dong highlighted that OVs and OV businesses have unceasingly developed and affirmed their positions in foreign countries over the past time.

The Vietnamese entrepreneur community, which has been present in 130 countries and territories across the globe with 30 associations, has worked as bridges promoting economic-trade ties between Vietnam and other nations, he said, laying a stress on the contributions made by Vietnamese enterprises in Canada to consolidating and boosting the Vietnam – Canada Comprehensive Partnership in all areas, especially when both nations are members of the CPTPP.

He went on to point out that the Vietnam – Canada Business Associati
on (VCBA) has organised various trade and investment promotion activities in both nations.

Dong expressed his hope that the forum would create opportunities for competent quarters to contribute to delivering on the goals of the two nations under their comprehensive partnership as well as the trade pact.

At the event, participants discussed and introduced potential and opportunities of Vietnamese exports in the fields of construction, garment and textiles, footwear, furniture, steel and machines, among others to Canada and the North American market as a whole.

They held that Vietnam has effectively capitalised on the CPTPP to bolster shipments to Canada where Vietnamese goods are entitled to the Most Favoured Nation (MFN) tariff and Generalised System of Preferences

However, several businesses described stringent requirements and trade barriers in Canada and the North American market as challenges for Vietnamese exporters.

The VCBA was set up in October 2022 under the direction and accompany of the Vietna
m Consulate General in Vancouver. The association has connected Vietnamese and Canadian entrepreneurs with a desire to run business and land investments in the two countries, helping enhance the bilateral economic ties./.

Source: Vietnam News Agency

Tien Giang: Prime Minister Pham Minh Chinh has asked Tien Giang to transform itself into an industrial and service-oriented province, acting as an economic growth pole of the Mekong Delta.

At a conference on March 24 announcing the province’s master planning scheme for the 2021-2030 period with a vision to 2050, PM Chinh said focus should be placed on pooling all legitimate resources to leverage existing growth drivers such as exports, investment and consumption while making breakthroughs in new growth engines, including digital transformation, green transition; circular, sharing and knowledge-based economy, and climate change mitigation.

He called for improving workforce quality, ensuring social welfare, and strengthening regional, inter-regional and international connectivity through better transport links and closer integration of production and supply chains.

Attention must be paid to accelerating the construction of comprehensive, strategic, synchronous and inclusive infrastructure in the fields of tr
ansport, healthcare, education and social welfare; fostering the development of processing and manufacturing industries, especially in agricultural products with competitive advantages; promoting the application of sci-tech and innovation in production and trade, thus improving livelihoods for residents, he said.

Recognising the global push towards digital transformation and green economy, he urged Tien Giang to align its development model with these trends.

Ministries and agencies were assigned to promptly and effectively deal with proposals put forward by the province, its residents and businesses, and come up with solutions to improve the local business environment and help firms save costs.

The event also witnessed the provincial authorities granting in-principle approvals, investment certificates for 14 projects worth nearly 17 trillion VND (708 million USD), and investment feasibility approvals for 10 other projects totaling nearly 37 trillion VND.

A portfolio of 40 projects calling for investment w
as also announced, encompassing urban and residential development, trade, services, tourism, industry, healthcare infrastructure, education, culture, environment and agriculture, with a total capital of nearly 53 trillion VND.

According to the master planning scheme approved by the PM, Tien Giang will basically transform itself into a well-developed industrial hub boasting a modern and interconnected infrastructure system by 2030. Key areas focusing on industry, tourism, marine economy and urban development are envisioned to become economic powerhouses.

Tien Giang is also positioned to become a critical link connecting the Mekong Delta with Ho Chi Minh City and the southeastern region. The planning scheme anticipates a shift in the province’s economic structure, with the industry and construction sector projected to contribute 41.5-43.5% of the gross regional domestic product (GRDP), services 29.5-30%, and agro-forestry-fishery 21.5-23.5%. The urbanisation rate is expected to reach 45-47%./.

Source: Vietn
am News Agency

Binh Dinh: By rapidly building a favourable environment for investors, Binh Dinh province has grown to be an appealing economic hub in central Vietnam, attracting both domestic and foreign investments in all key sectors.

This is attributed to the effort in boosting infrastructure development, Nguyen Tuan Thanh, Standing Vice Chairman of the Provincial People’s Committee, said at a press conference on March 23.

‘Infrastructure investment is seen as the province’s ultimate competitive edge. With airports, seaports, airways, railways, waterways and interconnected routes along the North-South and East-West economic corridors, as well as inter-regional and inter-district connections, Binh Dinh has essentially completed its infrastructure,’ Thanh said.

‘This comprehensive infrastructure network positions the province as a highly attractive destination for investment.’

Binh Dinh province also focuses on building industrial zones and clusters to attract major investors and manufacturers.

As per the development p
lan for industrial zones and clusters in the province, there are plans to establish 10-15 industrial zones covering a total area of about 7,500ha by 2030. Currently, seven industrial zones have been successfully launched and are in operation.

Meanwhile, it aims to establish 68 industrial clusters spanning an area of 3,470ha by 2030. Currently, there are already 42 operational industrial clusters, boasting an impressive occupancy rate of over 78%.

‘The land clearance process has been expedited and there has been a relatively cohesive investment in infrastructure,’ Thanh added.

Also contributing to the province’s successes are the improvements in labour force and administrative procedures.

Currently, 50% of the province’s population is of working age and they have been well trained to meet employment needs.

‘Every year, we can provide up to 3,000 appropriately trained workers for businesses,’ Thanh said.

On the other hand, the province has created optimal conditions for businesses, aiming to expedite admi
nistrative procedures.

In 2023, Binh Dinh province ranked 18 out of 63 provinces and centrally-run cities in terms of competitiveness index, while securing the top position in terms of satisfaction among its residents and businesses.

Furthermore, it organised numerous investment promotion conferences in the province and in various countries in Europe, North America and Asia last year.

These conferences are crucial opportunities for both domestic and foreign investors to learn about the potential, advantages and opportunities offered by Binh Dinh province.

Later this month, a trade promotion conference with the Vietnamese – Canadian Business Association (VCBA) will be held in Binh Dinh, the province’s leader shared.

Future AI hub

Given the core target of sustainable and green growth, the province has shown interest in developing the information technology industry, especially AI technology.

‘We use our best land fund for research and science. We have made extensive efforts to attract software companies,
including FPT, to set up their factories here,’ Thanh said, adding that the establishment of such an ecosystem will drive the province to become a powerhouse in artificial intelligence and advanced science and technology in Vietnam as well as the region.

In 2021, FPT officially launched the Quy Nhon Artificial Intelligence Research and Application Centre in Quy Nhon city, Binh Dinh. And last May, the company continued to build a research, production and expert training centre complex here. The construction project has a total investment of more than 2 trillion VND (44.7 million USD)./.

Source: Vietnam News Agency

Binh Dinh: By rapidly building a favourable environment for investors, Binh Dinh province has grown to be an appealing economic hub in central Vietnam, attracting both domestic and foreign investments in all key sectors.

This is attributed to the effort in boosting infrastructure development, Nguyen Tuan Thanh, Standing Vice Chairman of the Provincial People’s Committee, said at a press conference on March 23.

‘Infrastructure investment is seen as the province’s ultimate competitive edge. With airports, seaports, airways, railways, waterways and interconnected routes along the North-South and East-West economic corridors, as well as inter-regional and inter-district connections, Binh Dinh has essentially completed its infrastructure,’ Thanh said.

‘This comprehensive infrastructure network positions the province as a highly attractive destination for investment.’

Binh Dinh province also focuses on building industrial zones and clusters to attract major investors and manufacturers.

As per the development p
lan for industrial zones and clusters in the province, there are plans to establish 10-15 industrial zones covering a total area of about 7,500ha by 2030. Currently, seven industrial zones have been successfully launched and are in operation.

Meanwhile, it aims to establish 68 industrial clusters spanning an area of 3,470ha by 2030. Currently, there are already 42 operational industrial clusters, boasting an impressive occupancy rate of over 78%.

‘The land clearance process has been expedited and there has been a relatively cohesive investment in infrastructure,’ Thanh added.

Also contributing to the province’s successes are the improvements in labour force and administrative procedures.

Currently, 50% of the province’s population is of working age and they have been well trained to meet employment needs.

‘Every year, we can provide up to 3,000 appropriately trained workers for businesses,’ Thanh said.

On the other hand, the province has created optimal conditions for businesses, aiming to expedite admi
nistrative procedures.

In 2023, Binh Dinh province ranked 18 out of 63 provinces and centrally-run cities in terms of competitiveness index, while securing the top position in terms of satisfaction among its residents and businesses.

Furthermore, it organised numerous investment promotion conferences in the province and in various countries in Europe, North America and Asia last year.

These conferences are crucial opportunities for both domestic and foreign investors to learn about the potential, advantages and opportunities offered by Binh Dinh province.

Later this month, a trade promotion conference with the Vietnamese – Canadian Business Association (VCBA) will be held in Binh Dinh, the province’s leader shared.

Future AI hub

Given the core target of sustainable and green growth, the province has shown interest in developing the information technology industry, especially AI technology.

‘We use our best land fund for research and science. We have made extensive efforts to attract software companies,
including FPT, to set up their factories here,’ Thanh said, adding that the establishment of such an ecosystem will drive the province to become a powerhouse in artificial intelligence and advanced science and technology in Vietnam as well as the region.

In 2021, FPT officially launched the Quy Nhon Artificial Intelligence Research and Application Centre in Quy Nhon city, Binh Dinh. And last May, the company continued to build a research, production and expert training centre complex here. The construction project has a total investment of more than 2 trillion VND (44.7 million USD)./.

Source: Vietnam News Agency

Hanoi: Vietnam’s ambition to elevate its stock market from “frontier” to “emerging” status by 2025 faces two key hurdles, including pre-trade margin requirements for foreign investors and foreign ownership ratios in certain sectors, said Deputy Director of the Securities Market Development Department under the State Securities Commission (SSC) Pham Thi Thuy Linh.

Despite successfully meeting 7 out of the 9 established criteria for the upgrade, the two other requirements remain considerable roadblocks.

To tackle the pre-trade margin requirement challenge, Linh revealed ongoing discussions with international rating agencies are being conducted to seek viable solutions. Additionally, the SSC has proposed regulatory amendments and supplements to the Ministry of Finance (MoF). These revisions, if implemented, would eliminate the need for a 100% cash margin requirement for foreign institutional investors, provided they can demonstrate a secure payment process.

Regarding the foreign ownership ratios, the SSC is c
ollaborating with the MoF and the Ministry of Planning and Investment (MPI) to conduct a comprehensive review across various industries. The SSC has proposed that the MPI work alongside other relevant ministries and agencies to expand foreign ownership limits in non-essential sectors. This critical information, translated into English, is expected to be publicly available soon.

The SSC is also making efforts to improve information disclosure regulations, specifically for public and large-scale listed companies. The proposed amendments, once approved by the MoF, would mandate English disclosure for both regular and irregular information updates. The implementation timeline for these changes would see English disclosures become mandatory for regular information and large-scale company listings starting January 1, 2025. Irregular information disclosures would follow suit by January 1, 2026, with the requirement encompassing all public companies by January 1, 2028.

The World Bank has projected that if Vietnam’s
stock market achieves the coveted “emerging” status, it could attract an additional 25 billion USD in fresh investment capital from international investors by 2030./.

Source: Vietnam News Agency