Vietnam targets US$200 bn garment, textile exports by 2035
With import tax cuts presented by free trade agreements (FTAs) to which, Vietnam is a member, increasing automation in production and quite favourable factors in the world market, the country’s garment and textile exports are forecast to hit US$200 billion by 2035.
Vu Duc Giang, president of Vietnam Textile and Apparel Association (VITAS), says the US remains Vietnam’s largest garment importer, trailed by the EU and member countries of the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP).
Giang optimistically told the Japanese and Vietnamese media that the garment sector is likely to earn US$34.5 billion from exports this year.
It is expected that after the CPTPP comes into effect in August 2018 and export taxes drop to zero, the country’s garment exports will surge by 3% compared to the estimated figure because Canada, Australia, Mexico, and New Zealand, major importers, currently import about US$40 billion worth of products annually.
The garment sector has great potential for development from now to 2035. However, the sector should make thorough preparations to fulfil the target of US$200 billion in export value by 2035.
The domestic material consumption rate should be raised, aiming at 80% of fibres and 60-65% of other materials by 2030-2035.
According to Vitas, with further investment in fiber production Vietnam is now less dependent on materials from China. Domestic materials can meet 40-45% of the sector’s demand while the rest is imported from China (37%), Japan, Indonesia, the Republic of Korea and Thailand.
Thua Thien-Hue develops specialties, souvenir items
The central province of Thua Thien-Hue has issued a strategy to develop brands for provincial specialities and souvenir items by 2020.
The strategy will introduce those products in mass media and support the launch of the province’s electronic commerce platform.
There are nine local products tourists favour as souvenirs, namely me xung (sesame candy), sour shrimp sauce, lotus seeds, cajuput ointment, Thanh Tra pomelo, embroidered paintings, Hue conical hats, ao dai (traditional long dress) and ao dai fabric.
This year, Thua Thien-Hue will enhance support for local businesses and manufacturing facilities to expand their markets and introduce their products to domestic and foreign consumers, thus establishing sustainable production chains and contributing to provincial development.
The province will also work to diversify handicrafts and gift items for visitors, aiming to restore and develop traditional craft villages and promote the national target programme on building new-style rural areas.
Chairman of the provincial People’s Committee Phan Ngoc Tho said the province will create a seal for its specialities and prioritise favourable products and organic goods. Those products will be promoted in domestic and international trade fairs.
In addition, Thua Thien-Hue will develop new souvenir items, including bamboo paintings, bamboo and rattan weaving products and pottery, along with building manufacturing facilities for those products, he added.
The province will also strengthen links with businesses, facilities and distributors to bring its products to other localities such as Hanoi, Ho Chi Minh City, Da Nang and new potential markets.
1st container vessel berths at SSIT
SP-SSA International Terminal (SSIT) in Cai Mep welcomed its first container vessel on Thursday.
MV MSC Rosaria is owned and operated by MSC Geneva, one of the world’s largest shipping lines, and will make regular port calls at SSIT in future.
SSIT is a joint venture port, with SSA Marine, with headquarters in Seattle, the US, being a 50 per cent owner of the facility.
Saigon Port controls 39 per cent and Vinalines Hanoi accounts for 11 per cent.
The port was purpose built to handle the largest container vessels in the world. These so called ultra large container vessels can carry up to 20,000 TEU with a deadweight capacity of almost 200,000 tonnes.
SSIT is a deep-water facility with a 16.5 m draft alongside the berth. The terminal is equipped with the largest container shore cranes in Viet Nam.
The overall operational berth length exceeds 1km of which 425 meters are dedicated to barge operations.
The port’s land area totals 60 hectares. The container handling capacity of SSIT is about 1.2 mill TEU a year.
It has been handling bulk vessels since October 2014. The terminal is today the largest and busiest bulk port in southern Viet Nam.
With effect from June, container operations will be added, complementing SSIT’s operations going forward.
VN needs criteria for sustainable development
Viet Nam needed a set of specific and measurable criteria for sustainable development, Deputy Prime Minister Vu Duc Dam said at a council meeting in the capital on Tuesday.
Dam, who is chairman of the National Council on Sustainable Development and Competitiveness Improvement, said Viet Nam had launched numerous programmes and action plans to achieve the criteria for sustainable development set by the United Nations, but did not have specific criteria of its own.
He urged ministries to define specific criteria based on their fields of expertise.
He also asked the Viet Nam National Academy of Social Sciences to study a set of indicators to assess sustainable development according to international trends across all areas.
The Ministry of Industry and Trade and the Ministry of Natural Resources and Environment should focus on clean energy development and climate change, particularly rising sea levels and landslides in the Mekong Delta.
According to Dam, ministries should also look at the issues relating to culture and people in the process of keeping environmental hygiene, such as the habit of leaving litter and use of plastic bags. Those are part of the many criteria used to assess a country’s development level.
Regarding education, Dam said more attention should be paid to teaching moral values as well as knowledge.
The council should focus on the issue and give policy advice to the government, he added.
To take advantage of the Fourth Industrial Revolution, aside from common tasks such as building e-governance and ensuring the activities at all administrative agencies are transparent, the council must choose areas with the potential for development, such as textiles and logistics, according to Dam.
He also gave specific feedback on the organisation and operation of committees under the council, emphasising the council’s role of gathering core expert groups with professional qualifications and reputations to integrate science into the council’s operations.
During the meeting, members focused their discussions on the coordination and working mechanisms within the council, especially in issues of public concern.
Minister of Natural Resources and Environment Tran Hong Ha suggested the council should undertake practical activities on monthly, quarterly and yearly bases to advise the Prime Minister.
Vice President of the Viet Nam National Academy of Social Sciences Nguyen Quang Thuan underlined that sustainable development was only achievable if growth was rapid, the environment was protected and social problems were resolved.
He said it was necessary to take advantage of new scientific and technological achievements and look towards reducing the proportion of agricultural labour and increasing the number of labourers working in the industry and service sectors.
To Hoai Nam,vice chairman of the Viet Nam Association of Small and Medium-Sized Enterprises (SMEs), asked the council to look at promoting untapped strengths, adding that Viet Nam lacked businesses capable of leading SMEs to create value chains or building connections among enterprises.
Int’l exhibitions open in HCMC
Paper Vietnam, Rubber and Tyre Vietnam, and Coatings Expo Vietnam – They are showcasing a wide range of machinery and equipment and products used in the paper and pulp, rubber and tyre, and coating, dyeing, and inking industries.
They have attracted 250 companies from 15 countries and territories, including India, Japan, South Korea, China, Taiwan, the US, Germany, the UK, Malaysia, and Viet Nam.
There will be several seminars on their sidelines, a business matching programme to help exhibitors and visitors learn about the latest trends and market demands, find business opportunities and more.
Speaking at the opening ceremony, K Srikar Reddy, the Indian consul general in the city, said 50 Indian companies are exhibiting their products at the expos.
They include 42 at Coating Vietnam, where an India Pavilion has been set up by the Basic Chemicals, Cosmetics and Dyes Export Council (CHEMEXIL) of India.
“The three trade fairs provide an excellent opportunity for the Indian exhibitors to showcase their products and build bridges with their Vietnamese partners in order to establish a long-term beneficial business relationship.”
Vo Hoang An, deputy chairman of the Viet Nam Rubber Association, said amid deeper integration and increasing competition, the association and businesses have enhanced trade promotion.
Trade fairs and exhibitions are an effective forum for Vietnamese firms to introduce their new products and technologies and brands to local and international customers, he said.
Organised by the Minh Vi Exhibition and Advertisement Services Co, Ltd, and CNCIC China, Paper Vietnam, Rubber and Tyre Vietnam and Coatings Expo Vietnam, being held at the Saigon Exhibition and Convention Centre until June 15, are expected to welcome 7,000 trade visitors.
Viet Nam, India chemical sector eyes closer ties
On the same day, the Indian consulate organised a B2B meeting between Indian exhibitors at the three expo and Vietnamese companies.
According to the General Statistics Office, Viet Nam imported chemicals and chemical products worth US$8.63 billion last year, a year-on-year increase of 23 per cent, including $206 million from India.
Its exports grew by over 26 per cent to $2.15 billion, with exports to India being worth $299 million.
Indian consul general K Srikar Reddy said there had been an impressive growth in bilateral trade in the area of chemicals and chemical products between both countries during the year 2017.
“However, there is great potential for bilateral co-operation as consumption of chemicals and chemical products has increased considerably in Viet Nam in recent times and a significant portion of the total consumption is met by imports,” he said.
India is the sixth largest producer of chemicals globally and ranks third globally in the production of agro-chemicals, he added.
Litchi week kicks off in Ha Noi
Litchi fruit lovers can enjoy Luc Ngan litchi at the ‘2018 Luc Ngan – Bac Giang Litchi Week’ which began at Big C Thang Long Supermarket today in Ha Noi.
This is the third year Big C has hosted this event, which will run until June 20.
It is part of activities to promote the consumption of Bac Giang Province’s Luc Ngan District litchi, which is famous for its sweet taste, thick flesh and tiny seeds.
Speaking at the ceremony, Hoang Anh Tuan, deputy head of the Ministry of Industry and Trade’s Domestic Market Department, said the litchi week was a useful activity to promote the brand of high-quality Luc Ngan litchi, which is grown according to VietGAP and GlobalGAP standards, to Ha Noi consumers.
Tuan said litchi is present in most provinces and cities nationwide. The promotion activities have been fostered and helped avoid pricing pressure from domestic and foreign traders, thereby improving the value of litchi and income of farmers.
According to Tran Quang Tan, director of the Bac Giang Industry and Trade Department, this year’s event was hosted earlier than two years ago as it aimed to connect with businesses to sign consumption contracts in both domestic and foreign markets.
Litchi is planted in a total area of 15,200 hectares in Luc Ngan District with annual yeild of about 100,000 tonnes, with the production area in line with VietGAP criteria reaching 11,400 hectares.
‘Luc Ngan litchi’ has been registered with the Trademark and Geographical Indication in seven countries and exported to 30 countries, including China, the US, Australia, Britain, France and Thailand.
Big C Vietnam said the first shipment of Luc Ngan litchi this year will be exported to Thailand by Central Group Vietnam and Big C Vietnam with the amount three times higher than in 2017.
To promote this event, Big C Thang Long will showcase the fruit together with other attractive promotions. Eight kind of food and drinks processed from litchi will also be introduced to customers during the event.
Luc Ngan Lychee Week gets underway in Hanoi
The Luc Ngan Lychee Week is being held at BigC Thang Long in Hanoi from June 13-20, aiming to promote the special fruit of Luc Ngan district, Bac Giang province to Hanoians.
Tran Quang Tan, director of the Bac Giang provincial Department of Industry and Trade, says the constructive activity continues to set up and maintain points of sale for Bac Giang specialties in Hanoi and serve Hanoians’ demands.
Le Thi Mai Linh, Executive Vice President of Central Group Vietnam, says the promotion for Luc Ngan lychee brand will see the roll out of eight foods and drinks processed from Luc Ngan lychees at the chain of Big C supermarkets during the week.
Big C Vietnam will set aside their most beautiful display space to show off Luc Ngan lychees with full information such as their VietGap certificate, codes to trace the origin of products, geographic indication and attractive designs.
After the week, the chain of Big C supermarkets will continue to display and sell lychees and related products to serve customers in the hope of helping Luc Ngan lychees become stably consumed on the domestic market, said Mrs Linh.
The first batch of lychees will be shipped to Thailand by Central Group Vietnam and Big C Vietnam in the next two weeks. The export volume of Luc Ngan lychees to Thailand is expected to triple this year compared to last year.
Netherlands wants to set up agricultural partnership with Can Tho
The Netherlands wishes to establish a partnership with Vietnam’s Mekong Delta city of Can Tho in agriculture as the two sides share many similarities in soil and climate conditions, as well as major agricultural products, said Dutch Consul General in Ho Chi Minh City Simon van der Burg.
At a working session with representatives of the municipal People’s Committee on June 13, the Consul General said efforts made by local authorities and businesses to develop the farming sector in chains and upgrade machines and technologies have drawn the attention of many Dutch firms, including De Heus, Friesland Campina and Nova Exhibitions.
He pointed out bottlenecks in the local agricultural sector regarding logistics services and the planning of high-tech agricultural areas. Besides, investors have to face challenges relating to capital, market and partners in organisation and management, he said.
Against the backdrop, Simon van der Burg suggested Can Tho improve legal documents, review planning schemes of agricultural production areas, raise quality and competitiveness of products and focus on personnel training and technological transfer to businesses.
The Dutch Consulate General would like to coordinate with the municipal authorities to connect local businesses and farming households with foreign partners, including those from the Netherlands, he said.
Besides, the Netherlands will send experts in post-harvest technologies to Can Tho, helping the locality reduce post-harvest losses, while assisting the city in importing state-of-the-art machines and equipment for agricultural product processing, preservation and packaging, according to the diplomat.
He urged Can Tho to form a legal network friendly with businesses, improve the local infrastructure system and the quality of human resources and intensify promotion activities in order to lure enterprises that target sustainable development, social responsibility and environmentally friendly operation.
Instead of devising planning schemes for short terms of five or ten years, Can Tho should set forth long-term and specific goals, the Consul General suggested.
Speaking at the working session, Nguyen Thi Kieu, Deputy Director of the municipal Department of Agriculture and Rural Development, said Can Tho has regarded high-tech as a key for the local agricultural sector amidst international integration.
She briefed the Dutch diplomat on high-tech application in the city over the past time, which, the official said, has brought about positive outcomes.
Vice Chairman of the municipal People’s Committee Truong Quang Hoai Nam expressed his belief in cooperation prospects between the two sides, pledging to offer the most preferential policies, and an open, favourable investment environment to Dutch businesses.
Forecast on automobile consumption growth to 2025
Vietnam’s automobile market has potential for strong growth from now to 2025, with a vision to 2035, considering factors with major impacts on the auto industry.
Prudential commits long-term investment in Vietnam
Prudential Vietnam has got approval from the Ministry of Finance to increase its chartered capital to VND4,128 billion (around US$181.8 million).
The move affirmed the company’s commitment to make long-term investment in the Vietnamese market.
Besides strengthening the company’s financial capacity, the additional capital will also enable Prudential Vietnam to further improve its products and services and expanding its reach across the country.
In recent years, Prudential Vietnam has actively expanded its business activities and recorded strong growth. In 2017, it reported revenues of VND16,019 billion (some US$705.7 million), an increase of 20% year on year.
It paid out VND6,261 billion (US$275.8 million) in insurance settlements last year.
The company’s total assets were valued at VND74,112 billion (US$3.26 billion) by the end of 2017, while its total investment into the economy was VND66,241 billion (US$2.91 billion) in 2017, the highest by a life insurance company in the country.
In line with its long-term business strategies, Prudential Vietnam has acquired VND5,188 billion (US$228.5 million) and VND2,100 billion (US$92.5 million) worth of 30-year and 20-year bonds.
Showing appearance in Vietnam in 1995 and officially commencing operations in 1999 with the motto of “Always Listening. Always Understanding”, Prudential Vietnam has successfully been the pioneer of the life insurance sector.
The business system of Prudential Vietnam has stretched nationwide with more than 300 customer care centres and branches located in 63 cities and provinces of Vietnam thanks to the cooperation with seven partner banks.
Prudential Vietnam has achieved multiple awards from domestic and foreign prestigious organisations. Especially, in 2014, it was awarded a second-class Labour Order by the Vietnamese President in recognition for its contributions to the country’s socio-economic development.
Along with business activities, Prudential Vietnam has paid due attention to the social contributions for the community development and sustainable growth purposes.
New decree clarifies PPP projects
The Government will abolish administrative procedures for issuing investment registration certificates for Public-Private-Partnership (PPP) projects, according to the government’s Decree 63.
This is one of the key contents of the newly-issued decree on investment under the PPP model, which is set to replace a previous one. It will come into effect on June 19 this year and is expected to simplify administrative procedures and save time for investors.
Deputy Minister of Planning and Investment (MPI) Vu Dai Thang said that the PPP investment model was not new in Vietnam. It had been developed with the participation of the private sector and foreign investors at different levels. There were infrastructure projects, notably those in the transport and energy sectors, that had been deployed.
With some important amendments, Thang said the new decree introduced regulations and made procedures for PPP projects clearer and more transparent. Meanwhile, the authority to decide PPP projects was also detailed.
“This increases transparency and publicity in PPP investment projects. The abolition of the procedures for issuing investment registration certificates for PPPs will contribute to simplifying administrative procedures for investors,” said Thang.
With the new points introduced in the decree, Thang said he hoped that there would be practical innovations in the implementation of the PPP model for ministries, departments, provinces, localities and investors in the future.
To overcome the problems arising from this abolition, ensuring that information on the project contract is publicly supporting State management agencies and the communities in supervision, the decree supplemented the regulation on the disclosure of project contract information. The contractors are required to make their bids accessible to the public on the National Procurement Network (NPN).
Tran Viet Dung, Chief of the Office of the MPI’S Procurement Management, said that Decree 63 also contained some other important new points such as strengthening decentralisation (more authority given to localities), self-control and self-responsibility at ministries, sectors and localities.
Dung said it was necessary to remove the investors who were weak in financial capacity, increase participation of the State in PPP projects and vice versa, and strengthen participation of investors in public investment projects converted to PPP projects, helping reduce the burden on the State budget.
At the meeting, the participants also discussed and gathered ideas for the orientation for the development of the circular guiding the implementation of the Decree 63.
Vietnam – attractive destination for French startups
French startup firms are eyeing the Vietnamese market, especially the southern economic hub of Ho Chi Minh City thanks to open and dynamic business environment.
French Ambassador to Vietnam Bertrand Lortholary made the remark in a recent interview granted to Thoi bao Kinh te Viet Nam (Vietnam Economic Times) on the occasion of the 45th anniversary of Vietnam-France diplomatic ties (1973-2018).
He said the development of the start-up community in HCM City is just a start, and in the coming time, the city as well as Vietnam would become a must-go destination for startup businesses, especially in the field of technology, he said.
The Ambassador added that French businesses are making more investment in this field in Vietnam and consider it as an attractive market.
French tech firms operating in the Southeast Asian country have set up a network called “French Tech Vietnam” to serve as a bridge for startups between the two countries, he unveiled.
This network has been recognised by France as a new technological centre in Vietnam, the first of its kind in Southeast Asia, he noted.
According to the Ambassador, the first things he could see in the relations between Vietnam and France are opportunities for cooperation in transport infrastructure, water, consumption, and especially technology.
In recent time, the two countries’ governments have created favourable conditions for French startups to work in Vietnam.
Stressing that there are three things that make successful startups, namely startup capacity, favourable business climate and connection of domestic and global startups, the Ambassador suggested the Vietnamese Government design more policies to facilitate startup operation in the time to come.
Ho Chi Minh City is striving to become Vietnam’s startup centre with the target establishment of 500,000 enterprises from now through 2020.
HCM City to host Vietfood & Beverage – Propack Vietnam 2018
Around 600 domestic and foreign businesses will take part in the VietFood, Beverage and Professional Packing Machines (VietFood & Beverage – ProPack) international exhibition in Ho Chi Minh City from August 8-11.
The annual event is part of trade promotion activities of the food and beverage sector. Through 21 exhibitions, it has witnessed the increasing number of participating domestic and foreign exhibitors.
The four-day exhibition will include a wide range of sidelines activities, symposiums and visits to factories and industrial zones. It will provide participating businesses with many useful information and trade opportunities.
According to the organizing board, last year’s event drew around 7,280 normal visitors and 10,400 commercial visitors, most of whom were business owners, food and beverage companies, importers, distributors, retailers, and hotel and restaurant owners.
Leather and footwear sector imports 60% of materials
The leather and footwear sector has not developed its support industry despite huge export value.
According to the Vietnam Leather, Footwear and Handbag Association (Lefaso), leather and footwear exports account for nearly 10% of the country’s total export value. The sector meets 50% of domestic demand and generates more than 1 million jobs. However, most of its companies provide outsourcing services and the whole sector imports nearly 60% of raw materials.
Some businesses have invested in the support industry to produce leather, technical fabrics, plastics, adhesives and chemicals, but, they only meet around 40% of demand. Therefore, producers have to spend much money on importing materials for production.
Footwear experts suggest the building of industrial zones producing materials with standard waste water treatment systems. They also say that domestic businesses should be encouraged to connect with foreign direct investment (FDI) companies in joining chains of material supply.
The leather and footwear sector sets a target for US$20 billion export value this year, up 10% against last year.
Vietnam poised to build on IT outsourcing gains
Businesses urged to embrace the Fourth Industrial Revolution
The Fourth Industrial Revolution technological foundation presents huge opportunities for businesses to join the global supply chain, say economists.
Multinational companies have offered opportunities for Vietnamese businesses to become a part of global supply chains through support programs on capacity building and productivity and competitiveness improvement.
Vietnamese businesses can overcome any technological and financial challenges to seek clients and get involved in the global value chain if they take full advantage of these opportunities.
According to Associate Prof. Dr. Nguyen Manh Quan, head of Institute of Business Research and Development, Vietnamese businesses lack much of knowledge and experience in international business in the market economy mechanism. He maintains that the Fourth Industrial Revolution will provide connections to the global networks in which businesses will gain benefit.
Vietnamese businesses ready to cash in on FIFA World Cup
The market for products and services meeting the particular demand of FIFA World Cup fans is getting busier than ever in Vietnam, as the June 14 to July 15 football fiesta is only a few days away.
Businesses that offer TVs and projectors for lease have been mushrooming as the opening of Russia 2018 is drawing near.
As of last weekend, some TV rental companies have even stopped receiving new orders and started delivery and installation for customers.
Televisions from 32 inches to 100 inches are receiving high attention, particularly the latter with 5K resolution.
The giant TV costs VND10-12 million (US$440-US$528) per eight-hour rental period per day or VND40 million (US$$1,760) for the whole month of the FIFA World Cup.
In addition to providing ID documents when making contracts, customers have to deposit up to VND150 million (US$$6,600) to be able to rent the 100-inch device, according to a Hanoi-based company.
Nguyen Thai Trinh, a representative of Tat Thanh Co., which provides electronics rentals in Tan Phu District, Ho Chi Minh City, has managed to lease up to 400 products, including TVs, projectors and large-screen displays, much higher than normal revenue.
According to Trinh, the price of renting a television in about one month of the FIFA World Cup varies from VND3 million (US$$132) for a 40-inch TV to VND6 million (US$$264) for a 60-inch TV.
“Besides, we also offer a projector plus a projection screen for lease at VND4.5 million [US$$198] during the tournament. All prices include installation, warranty and delivery fees,” she said.
Likewise, Tran Quang Sang, a business insider in Ho Chi Minh City’s Tan Binh District, said a 60-inch LCD or smart TV, which is 80%-90% new, is available for rent at around VND1.6 million (US$$70) per day.
Fees for the smaller 40-inch device range from VND350,000 (US$$15) to VND500,000 (US$$22) a day.
Customers have to deposit an amount equal to the value of the device and sign a rental contract.
As of Sunday, four days ahead of the FIFA World Cup opening, Sang had managed to lease all of his available devices, he said.
Electronics stores across Vietnam are also launching promotion campaigns to embrace football’s biggest competition, with some chains reporting TV sales having jumped 30% from normal figures.
Customers who buy televisions of well-known brands at electronics stores in Vietnam during this event will have the opportunity to win valuable gifts.
Supermarket chains also join by giving a wide range of discounts on fashion and beverage products.
Meanwhile, many eateries and restaurants have plans to turn their premises into a ‘football fan zone,’ equipped with big screens and new menus plus discounted prices.
Some restaurants will offer discounts to diners who wear football jerseys.
Son La ships 3 tons of mangoes to Australia
Agricare Vietnam Co.Ltd has so far bought 3 tons of this year’s crop of mangoes from farmers in Yen Chau district of the northern province of Son La to export to Australia.
This is only the second year that mangoes grown in Yen Chau district have been shipped to Australia.
Yen Chau mangoes have been granted a certificate of geographic indication by the National Office of Intellectual Property of Vietnam.
The district has around 1,200ha of mango plantations with a total output of about 3,500 tons.
To promote Yen Chau mango brand, the district People’s Committee held the 2018 mango festival on June 10-11 with a wide range of activities, such as an opening ceremony with a special art performance, a display of local agricultural and handicraft products, a mango harvesting contest, a ceremony to honour growers, tours of mango gardens, and traditional games and sports.
Addressing the opening ceremony, chairman of Yen Chau district People’s Committee Ha Nhu Hue said the festival aims to promote its mango brand and honour mango growers as well as showcasing Yen Chau’s land and people to domestic and foreign visitors, while laying the foundations for tourism development in line with local potential.
Vietnamese goods become popular purchases at Japan’s AEON malls
A Vietnam-Hanoi Goods Week has been held in the AEON shopping mall chain in Japan as part of events to realize a memorandum of understanding on cooperation on infrastructure investment and promotion of commodity sale between Hanoi and Japan’s AEON group.
Addressing the opening ceremony, vice chairman of the Hanoi People’s Committee, Nguyen The Hung, said Japan became Vietnam’s leading trade partner last year with a two-way trade turnover of more than US$33.4 billion.
Japanese businesses have registered to invest around US$5.8 billion in about 900 projects in Hanoi, said Mr Hung.
The promotional week is one of the activities marking 45 years of Vietnam-Japan diplomatic ties. It aims to promote domestic brands and products, Vietnamese tourism, culture and cuisine to Japanese and Vietnamese people in Japan, trade and connectivity between the two countries’ businesses, and directly send Vietnamese products to the AEON chain of distribution.
Fourteen domestic businesses operating in agriculture, processed food, tea, coffee, cocoa, fresh coconut, herbal soap, essential oil, saffron starch, chili, functional food, bags, and fine arts and handicrafts joined the event.
During the week, from June 7-10, there were trade exchanges between Vietnamese businesses and AEON importers, performances of Vietnamese traditional arts, and a presentation of Vietnamese cuisine.
Vietnamese goods were displayed and sold at 40 shops in the AEON retail network.
Over 7,000 tons of lychees shipped to China via Lao Cai border gate
More than 7,000 tons of lychees worth US$3.8 million from northern provinces of Bac Giang and Hai Duong were exported to Hekou, Yunnan, China from May 17 to June 14, according to the Lao Cai International Border Gate’s Customs Office.
The Lao Cai Customs Office, border guards and quarantine forces at Kim Thanh border gate have strictly coordinated to facilitate the shipment of fresh lychees to China.
Priority has been given to trucks carrying fresh lychees to perform customs clearance before others to ensure the quality of the fruits.
Thailand, China – two largest suppliers of fruit, veg to Vietnam
Vietnam imported over US$600 million worth of fruit and vegetables in the first five months of this year, US$110 million more than the same period last year, according to the General Department of Vietnam Customs.
Thailand and China were the biggest fruit and vegetable suppliers with a value of US$384 million, accounting for over 60% of the country’s total imports. Of the figure, Thailand made up more than US$274 million while China held over US$110 million. It means the Vietnamese people spend more than VND58 billion (around US$2.75 million) a day purchasing fruit and vegetables from the two countries.
According to the statistics from the Vietnam Customs and the Ministry of Agriculture and Rural Development (MARD), many types of the imported fruit and vegetables can be found in Vietnam. They include mango, rambutan, dragon fruit, jackfruit, durian and longan from Thailand, or plum, apple, pear, yellow melon, pomegranate, grapefruit and mandarin orange, and cabbage, carrot, kohlrabi, cauliflower and potato from China.
The MARD’s Plantation Protection Department says while Vietnam can grow similar fruit and vegetables, imports of farm produce from China and Thailand will lead to an unhealthy competition.
An Giang to call for investment in more than 50 projects
The Mekong Delta province of An Giang plans to launch more than 50 projects to lure domestic and foreign investment, heard a meeting held in the province on June 14.
The projects will be introduced at a conference to promote investment in the province, set for September 10-12. They include 14 projects in agriculture, 22 in services-tourism, 14 in industry and three in construction and urban development, along with others in transportation and health care.
The event is expected to attract about 380 domestic and international delegates. Meanwhile, products of 27 local businesses and craft villages will be on display.
At the meeting, which was to prepare for the investment promotion conference, Chairman of the provincial People’s Committee Vuong Binh Thanh instructed agencies to complete contents related to investment incentives, especially in the province’s two spearhead sectors of tourism and agriculture, as well as policies to support investors.
Through the conference, An Giang wants to provide investors with information on the province’s economic potential and investment opportunities and incentives, thus drawing more investment in the province and expanding cooperation with businesses and investors.
The event aims to offer a platform for investors and international organisations to meet and enhance cooperation and exchange between local and foreign businesses. It will comprise two sessions on high technology agriculture and An Giang’s tourism potential.
Hanoi sets up large-scale aquatic farming areas in eight districts
Hanoi has established 56 areas for large-scale aquaculture production in eight rural districts, according to the municipal Department of Agriculture and Rural Development. –
The areas are located in the districts of Ung Hoa, Phu Xuyen, Thanh Oai, My Duc, Ba Vi, Chuong My, Thanh Tri and Thuong Tin.
To expand the aquaculture farming area, Hanoi has transformed lowland fields into farms for large-scale aquaculture production, mostly of common carp, grass carp and tilapia, and fruit farming. Some farms started cultivating higher-value fish like black carp, hemibagrus guttatus and bass. Many of them also offer eco-tours.
However, farmers here mainly use traditional fish farming techniques and have yet to apply advanced agricultural practices like VietGAP.
According to a survey in 2017, the city’s total fish farming area was estimated at more than 23,000 hectares, producing a combined output of approximately 98,000 tonnes of fish.
Seafood exports to China surge
China is projected to become Vietnam’s leading seafood importer from this year’s second quarter with growth of 37%, said Deputy Minister of Agriculture and Rural Development Tran Thanh Nam.
Vietnam’s seafood export value to China rose to US$1.28 billion in 2017, helping the country become Vietnam’s fourth biggest seafood importer and accounting for 15% of total import turnover.
Nam revealed that the Ministry of Agriculture and Rural Development will soon hold a trade promotion event in the northern province of Quang Ninh with Chinese importers.
The ministry will also pay working visits to China to address trade barriers for exports of Vietnam’s staples such as seafood, fruits and rice, among others.
China is currently Vietnam’s biggest trade partner, while Vietnam is China’s largest trader in ASEAN.
Two-way trade reached US$93.6 billion in 2017, up 30% year-on-year, and accounting for 22% of Vietnam’s total import-export turnover. Of the total, US$35.4 billion came from Vietnam’s exports.
In the first five months of 2018, Vietnam recorded a year-on-year rise of 9.7% in aquatic export value to US$3.12 billion. The figure for May alone was estimated at US$671 million.
The US, Japan, China and the Republic of Korea were the four biggest importers of Vietnamese aquatic products between January and April, making up 52.7% of total fishery exports in the period.
Meanwhile, markets with strong growth in aquatic imports from Vietnam were the Netherlands (60.2%), China (28.8%), the UK (27.4%) and Germany (27%).
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