Hanoi: China was the biggest buyer of Vietnam’s agro-forestry-fishery products in 2023, and it is expected to remain a promising market with numerous opportunities for Vietnamese farm produce to increase the market share and export value.

Fourteen agricultural products of Vietnam have been licensed to be exported via the official channel to China, namely bird’s nest and related products, sweet potato, dragon fruit, longan, rambutan, mango, jackfruit, watermelon, banana, mangosteen, black jelly, lychee, passion fruit, and durian.

Ngo Xuan Nam, Deputy Director of the Vietnam Sanitary and Phytosanitary Notification Authority and Enquiry Point (SPS Vietnam), said Vietnamese businesses have paid more attention to the registration of farm produce and food for export to China over the last two years.

The General Administration of Customs China (GACC) has approved 3,013 farm produce and food codes for nearly 3,000 Vietnamese businesses permitted to export to this market. The majority of exports are aquatic and pla
nt-based products.

The companies have made use of the GACC’s registration software, he went on, noting that SPS Vietnam has also coordinated closely with the Chinese Embassy in the country to deal with difficulties and obstacles facing businesses in a timely manner, especially procedural ones.

These efforts have substantially helped with the export of many agricultural products to China, especially fruits, including durian that posted over 2 billion USD in revenue in 2023, Nam said, adding that China currently accounts for nearly 54% of Vietnam’s total fruit and vegetable exports.

In late 2023, the first batch of bird’s nest from Vietnam entered China under a protocol signed between the Vietnamese Ministry of Agriculture and Rural Development (MARD) and the GACC.

He considered this as a special landmark as the bird’s nest industry now has a chance to tap into the world’s second most populous market that consumes over 300 tonnes of this product each year.

The MARD is working with the GACC to complete proc
edures for opening the Chinese market for citrus fruit (pomelo, orange, mandarin), coconut, frozen durian, chilli, medicinal materials, and naturally caught aquatic products, which are also strong items of Vietnam. Once entering this market via the official channel, they will surely generate higher earnings for Vietnam’s agriculture, the official opined.

He added that not only fruits, vegetables, or aquatic products but many other agricultural products such as coffee are also standing a chance to raise their market shares in China.

Beverage consumption in China has tended to shift from tea to coffee in recent years. Though per capita coffee consumption in this market is still low, sales there have increased. Coffee is likely to become a favourite beverage in China in the time ahead, according to the Foreign Trade Agency under the Ministry of Industry and Trade.

Therefore, China is considered a potential market for coffee exporting countries, and still has much room to be tapped into in the coming years.

N
guyen Nam Hai, Chairman of the Vietnam Coffee – Cocoa Association, said China is the 10th largest market of Vietnamese coffee, but it mainly imports deeply processed products such as instant, roasted, and three-in-one coffee. Therefore, businesses should develop such products to gain a foothold in the neighbouring market./.

Source: Vietnam News Agency

Hanoi: The cryptocurrency market in Vietnam remained bleak in 2023, resulting in a lack of profitability for nearly 65% of investors.

Among them, a significant 43.6% of investors experienced losses, according to the Vietnam Crypto Market Report 2023 by Coin98 Insights.

The report was based on a survey conducted in December 2023, involving 1,200 participants.

The report revealed that the majority of crypto investors in Vietnam are men, accounting for 85.3% of the market. The investors were predominantly young, with ages ranging from 18 to 36 years old.

Specifically, 47.1% of investors fell within the 26-36 age bracket, while 37.9% were aged 18-25. Data from OKX and BingX indicated that most individual investors were concentrated in major cities, primarily Ho Chi Minh City (50-54%), Hanoi (25-30%) and Da Nang (3-5%).

In terms of income levels, a significant portion of crypto investors in Vietnam earned between 10 million VND and 25 million VND per month (45.82%), while 26.22% earn less than 10 million VND
per month. The report also highlighted that the majority of investors entered the market during the uptrend period of 2020-2022, accounting for 48.7% of participants.

When it comes to investment strategies, centralised exchanges (CEXs) remained the most trusted platforms for storing crypto assets among investors. The second choice was hot wallets or cold wallets. Hot wallets, which were connected to the internet for easier access, were favoured, while cold wallets, which kept crypto keys offline for enhanced security, are also utilised.

Vietnam was recognised as one of the fastest-growing markets, according to OKX Global’s assessment. BingX exchange experienced a substantial increase of 138.41% in the number of Vietnamese users, reaching 143,025 users in 2023.

The report emphasised that the market remained gloomy for most of 2023, with nearly 65% of investors failing to generate profits. However, the percentage of investors experiencing losses has decreased compared to 2022 (57.5%).

The challenging market
conditions have led investors to adjust their risk appetite, with only 25% regularly utilising leverage. OKX trading floor data reveals that Vietnamese investors generally opt for leverage of 2.5x or higher.

The reasons behind investor losses in 2023 in Vietnam were quite diverse, with two prominent factors accounting for over 66% of the cases: FOMO (Fear of Missing Out) and a lack of careful transaction planning.

Vietnamese investors typically considered multiple aspects before making investment decisions. Instead of relying on a single factor or investment style, they often combined various options to arrive at their final choices.

Most investors in Vietnam preferred to store their assets on centralised exchanges (CEXs) and utilise these exchanges as their primary method for investing, buying/selling, and holding crypto assets. In 2023, new investment trends gaining popularity included Airdrop and Retroactive strategies. Interestingly, Bitcoin (BTC) was not the most invested asset. Instead, tokens from l
ayer 1 and layer 2 Blockchains receive more attention.

Regarding investment strategies in 2024, the report suggests that, in line with the overall market trend, the majority of Vietnamese investors are focusing on AI projects, Blockchain layer 1 and layer 2, NFT and SocialFi projects, rather than DeFi and RWA. Investors hold positive expectations for the market in 2024, with projections of BTC prices surpassing previous peaks. As a result, many plan to increase their allocation to the crypto market in hopes of achieving high profits.

The success or failure of investors was influenced by various factors, as highlighted by a report from Coin98 Insights. Investors who judiciously use leverage at appropriate times tend to have higher profit rates. Conversely, those who regularly employ leverage often experience losses.

The number of years of investor experience was also a significant factor related to investment outcomes in the crypto market. Veteran investors, who participated before 2017 or during the 2017-2
020 period, exhibit lower loss rates compared to new investors (from 2022 onwards).

Interestingly, profitable investors often relied on macroeconomic conditions, news and on-chain data for decision-making, whereas unsuccessful investors tended to follow the advice of friends or Key Opinion Leaders (KOLs).

The ratio of crypto asset allocation to the total portfolio also impacts investment results. Data indicated that investors who allocate smaller amounts of capital (less than 10% and 10-30%) tend to have higher loss rates and lower profit rates compared to other groups. This may be attributed to the fact that investors with smaller allocations often do not closely follow the market as compared to those with larger allocations.

Notably, investors who experienced losses in 2023 were more inclined to invest in Memecoins and NFTs, while holding less Bitcoin. This serves as a valuable lesson for investors to exercise caution when dealing with Memecoins and NFTs.

Trends in 2024

Predictions for 2024 varied amon
g three different groups of investors. Investors who broke even or made profits in 2023 displayed higher confidence in Blockchain layer 2, DeFi and RWA (Real World Assets). On the other hand, investors who incurred losses in 2023 showed more faith in Memecoins and AI projects.

Profitable investors are expected to continue focusing on Blockchain layer 1, layer 2, DeFi, RWA and AI projects in 2024.

The Coin98 Insights report acknowledged the challenging year of 2022 and the first half of 2023, which created an overall subdued sentiment in the market. However, by the end of 2023, with the anticipation surrounding the Bitcoin ETF and other factors, the market regained its vibrancy. Many investors believe that a new growth cycle is on the horizon.

Therefore, 2024 is expected to carry forward the momentum from the end of 2023, marked by significant news and events that will impact the entire market, such as the outcomes of the Bitcoin ETF, the Bitcoin Halving and the DenCun upgrade of Ethereum.

However, the rep
ort also emphasises the need for investors to remain attentive to macroeconomic factors that can influence the overall economy and the crypto market specifically. Factors such as the US Federal Reserve maintaining high-interest rates, geopolitical tensions, food security and environmental issues should be taken into consideration./.

Source: Vietnam News Agency

Hanoi: The Ministry of Industry and Trade (MoIT) has ordered local firms to ensure sufficient supply of goods of affordable prices for the upcoming Tet (Lunar New Year) holiday, as demand on this occasion is forecast to increase 10% from the same time last year.

Businesses have rushed to stockpile essential items, with the volume of inventory rising 10-25% year-on-year. They have committed to launching an array of price stabilisation and promotion programmes in the runup to Tet.

Affordable goods available

Vissan Joint Stock Company, which processes and sells fresh and frozen meat and other foods, plans to provide the market with nearly 1,100 tonnes of fresh products and 3,800 tonnes of processed ones. Besides, it has increased stockpiling by 10-20% in anticipation of the scarcity of goods and rolled out 10-20% discount programmes on weekends, and will even offer an up to 30% discount on the days leading up to Tet.

Right in September 2023, renowned retailers such as GO!, Big C and Tops Market signed deals
with their partners to increase the supply of Tet commodities by 20%. They have carried out the ‘price lock’ programme on more than 10,000 consumer goods, and launched attractive discounts on over 50% of their high-quality products. Additionally, over 3 billion VND (122,500 USD) worth of awards is up for grabs in the supermarkets’ lucky draws.

Meanwhile, the Co.opmart supermarket chain has made meticulous preparation for the Tet season, with the amount of foods stocked up rising 30% year-on-year. As top priority is given to promote Vietnamese brands, Co.opmart has arranged shelves to introduce ‘One Commune, One Product’ goods.

Experts said Tet is a golden time for food businesses as customers are in good mood to splurge on items like confectionary. Currently, domestic producers are making concerted efforts to improve product quality and brand with competitive prices so as to meet the market demand and win the lion share in the domestic playground.

Orion Food Vina Company Limited will supply the market with
32,000 tonnes of confectionery at rational prices, up 5-10% from the previous Tet season. Meanwhile, the Hanoi Confectionery Joint Stock Company plans to sell 350 tonnes of goods stable prices although input costs pick up 5-12%.

High expectation for purchasing power

An array of products at stable prices are available at large supermarkets like Co.opmart, Big C, and Aeon, who are ‘holding their breath’ for the increases in the purchasing power.

They have been concerned about the market fluctuation after seeing shopping demand for the year-end season expand only 10-15% as compared to the normal days, which forced them to accelerate promotion and reduce profit on several product lines to ensure the set consumption plans.

As part of the efforts to encourage locals’ spending, competent ministries, sectors, and authorities have carried out trade promotion programmes, and the ‘Vietnamese people prioritise Vietnamese goods’ campaign.

The MoIT has directed market management authorities in localities to enhance in
spection and handle violations of speculation of goods during Tet season.

According to Acting Deputy Director of the Hanoi Department of Industry and Trade Tran Thi Phuong Lan, local enterprises have outlined plans to serve the demand for Tet commodities, with total necessary goods on supply valued some 40.9 trillion VND, up 10% from the previous season.

In Ho Chi Minh City, credit institutions have set aside around 9 trillion VND in loans with short-term interest rates of 4-6% for enterprises to carry out the market stabilisation programme for the Tet holiday./.

Source: Vietnam News Agency

Hanoi: Vietnam Airlines Group which comprises Vietnam Airlines, Pacific Airlines, and Vietnam Air Services Company (VASCO) has announced an addition of over 66,200 seats, equivalent to more than 310 flights, for the peak Lunar New Year (Tet) holiday from January 25 to February 24, 2024.

These figures bring its total to about 2.64 million seats and 12,374 flights during the period.

The additional flights will mostly be operated on domestic routes connecting Ho Chi Minh City to Hanoi, Da Nang, Hai Phong, Vinh, Thanh Hoa, Hue, Quang Nam, Tuy Hoa, Da Lat, Cam Ranh, Buon Ma Thuot, Pleiku, and Phu Quoc.

Passengers are advised to proactively book air tickets early in the peak season. They should also carry out check-in process in advance through telephone, website, mobile application, or at kiosks at airports in order to save time./.

Source: Vietnam News Agency

Hanoi: The domestic logistics sector has made big strides over the past time, significantly contributing to national economic growth and generating jobs for labourers.

According to the World Bank’s ranking, Vietnam currently ranks 64th out of the 160 countries in terms of logistics development and 4th in the Association of Southeast Asian Nations (ASEAN) after Singapore, Malaysia, and Thailand.

The country was also among the top 10 places in the 2023 Agility Emerging Markets Logistics Index compiled by Agility, one of the world’s top freight forwarding and contract logistics providers.

Among the Southeast Asian countries, Vietnam was fourth, behind Malaysia, Indonesia, and Thailand.

Agility ranked 50 economies based on three factors which make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers, and distributors. The factors include domestic logistics opportunities, international logistics opportunities, digital readiness, and business fundamentals.

However, Vie
tnam’s logistics costs are equal to 16.8%-17% of the national GDP, much higher than the global average of only 10.6%, leading to the weakening competition of Vietnamese goods globally, Chairman of the Vietnam Logistics Association (VLA) Le Duy Hiep said, pointing to limitations in logistics infrastructure, seaport planning, and connectivity between means of transport, among others.

The WB also noted that Vietnam’s logistics industry still shows many shortcomings in terms of capacity as well as the digital transformation pace of most logistics businesses.

Although the Government, ministries and agencies have pushed ahead with the implementation of a project on building the national logistics development strategy by 2035 with a vision towards 2045, in which digital transformation has been integrated, it still requires greater efforts by relevant sides to boost the digitalisation in the sector.

Besides, the domestic international railway system has yet to be fully tapped to serve trade between Vietnam and Chi
na and other ASEAN member countries despite its substantial potential.

Given that, Hiep suggested more incentives to help logistics firms raise their competitiveness in the region and globally./.

Source: Vietnam News Agency

Can Tho: The Netherlands Development Organisation (SNV), in collaboration with related parties, on January 16 organised a workshop announcing the project ‘Transforming Rice Value Chains for Climate Resilient and Sustainable Development in the Mekong Delta’ (TRVC).

The project will be implemented from the Summer-Autumn crop in 2024, with funding of 16 million AUD (10.5 million USD) from the Australian Embassy in Vietnam.

It will be carried out by the SNV, in collaboration with the Ministry of Agriculture and Rural Development, and the Departments of Agriculture and Rural Development of An Giang, Dong Thap and Kien Giang provinces.

The project’s over-arching goal is to shift to low carbon rice cultivation on over 200,000 hectares in the Mekong Delta, contributing to the project on cultivating high-quality and low-emissions rice on 1 million hectares in the delta to 2030.

Using Pay-for-Results mechanism, it incentivises and attracts the participation of private enterprises in the rice value chain, aiming to
develop innovative technologies to achieve higher economic outcomes for smallholder farmers and all rice value chain actors, improve rice quality, reduce greenhouse gas (GHG) emissions and promote inclusive social values.

Committing to supporting Vietnam in achieving its net zero emissions target by 2050, Cherie Russell, Counsellor for Development Cooperation at the Australian Embassy, expressed her hope that rice production in Vietnam will prosper in a green and sustainable manner, thus helping increase Vietnamese rice’s access to high-value export markets which are increasingly promoting the import of low-carbon products.

The Mekong Delta is a key rice production region in Vietnam. However, rice cultivation in the region and in Vietnam in general is currently one of the major sources of greenhouse emissions.

Towards realising its commitment on net zero emission by 2050, the Government has taken actions, one of which is the project on 1 million hectares of high-quality and low-emissions rice in associatio
n with green growth in the Mekong Delta to 2030./.

Source: Vietnam News Agency