VIETNAM BUSINESS NEWS MAY 21


Phan Minh Thong, common director of Phuc Sinh Firm, which has been exporting pepper, espresso and farm produce for the final 20 years, stated Viet Nam is a really massive marketplace for espresso merchandise.

His firm exports 65,000-70,000 tonnes of espresso merchandise a 12 months, whereas home gross sales account for lower than 1 per cent of that.

Phuc Sinh would focus extra on selling its Blue Son La Espresso model within the home market, he added.

Viet Nam stands out as the world’s second largest espresso exporter, however Vietnamese should drink espresso blended with different elements, and that’s why his firm desires to supply native clients pure and export-quality espresso, he claimed.

He hoped customers would assist Ok Espresso when provided pure, good-quality espresso at cheap costs and advised about it.

In 2022, Phuc Sinh Group plans to construct extra espresso processing vegetation to provide the home market and enterprise additional into the spice business.

Le Ba Minh, director of Pacific Meals Joint Inventory Firm, a fish sauce exporter to the US, claimed his firm’s fish sauces are the highest sellers on Amazon after only a 12 months since launch.

In June, it began promoting within the home market via e-commerce platform Shopee.

“The fish sauces for the home market have the identical high quality as for exports. We ready for 2 years to develop our home market.”

Dang Ba Lengthy, director of the HCM Metropolis Honey Bee Joint Inventory Firm (Behonex), stated lately the corporate’s home gross sales have gone fairly effectively, rising at 15 per cent a 12 months.

Up to now, Behonex merchandise had been primarily exported, with little home gross sales as Vietnamese used to assume honey was solely consumed when sick, he stated.

However now honey is utilized by many individuals as an ingredient in cooking and drinks.

One other essential cause is that Vietnamese folks’s incomes are rising, they usually might afford premium meals, Lengthy stated.

Home merchandise are nonetheless going through fierce competitors from imports, he stated.

Analysts stated Vietnamese customers was price-conscious, however dwelling requirements are actually rising on account of fast financial development and meals security has change into an element, persuading exports-only companies to have a look at the home market, particularly with COVID hitting exports.

Capital proposes VND23 trillion highway undertaking

Hanoi has proposed an funding of VND22.8 trillion (USD991.37 million) to hold out a part of undertaking Belt Highway 4.

Town plans to speculate round VND19 trillion into the undertaking between 2021 and 2025, whereas the rest will likely be used for the 2026-2030 interval.

Based on the Hanoi Individuals’s Committee, the 112.8 kilometre Belt Highway 4, would value VND85.8 trillion.

An Giang strives for US$858 million funding in 2022
     
The Mekong Delta Province of An Giang has set a goal of attracting 15 initiatives with a mixed funding capital of over VND20 trillion (above US$858 million) by year-end, in line with its funding promotion programme in 2022.

These initiatives will likely be within the province’s prioritised areas resembling site visitors infrastructure, city improvement, housing, agriculture, in addition to business, commerce and providers, tradition and tourism, baodautu.vn reported.

Underneath the programme, authorised not too long ago by An Giang Individuals’s Committee, the province additionally hopes to draw overseas direct funding (FDI) inflows in a variety of sectors together with the event of commercial park infrastructure, industrial actual property, supporting industries, and agriculture.

Between now and the tip of this 12 months, the province plans to host three on-line funding promotion conferences which can see the attendance of traders from Japan, South Korea, Australia, USA, Taiwan, Israel, Thailand, Singapore and European international locations.

As per the programme, the locality will group up with the Ministry of Planning and Funding’s Southern Funding Promotion Centre to organise its funding promotion convention within the fourth quarter.

Giant industrial zones set as much as appeal to FDI
     
A number of large-scale industrial zones had been being arrange from the start of this 12 months to seize the chance of attracting each overseas and home producers within the wave of post-pandemic manufacturing and enterprise restoration.

VSIP Group, on the finish of March, began the development of the VSIP 3 Industrial Zone, which lined greater than 1,000 hectares in Hoi Nghia Commune, Tan Uyen City and Tan Lap Commune, Bac Tan Uyen District, Binh Duong Province

To this point, the economic zone attracted greater than 30 corporations, each home and overseas, to check the manufacturing alternative, with an anticipated whole funding of round US$1.8 billion.

Just lately, the Dai An City – Industrial Zone Improvement Company Joint Inventory Firm and Indian companions signed a cooperation settlement for creating a 960-hectare pharmaceutical park undertaking price round $10-12 billion in Hai Duong Province.

The park was anticipated to be the place well-known pharmaceutical corporations on the planet gathered for analysis and manufacturing.

Saigon Telecom Expertise Joint Inventory Firm (Saigontel) and VinaCapital signed a memorandum of understanding with Singapore – primarily based Aurous about cooperation in investing in a 700-ha city–business advanced in Bac Giang with an estimated funding of round $2.5 billion.

Based on SSI Analysis, the demand for hiring industrial land will likely be robust this 12 months, fuelled by a manufacturing shift to Viet Nam along with the completion of infrastructure initiatives resembling Bien Hoa – Vung Tau, Dau Giay – Phan Thiet, North-South expressways, Thi Vai – Cai Mep and Gemalink ports.

SSI Analysis forecast that industrial land rents in Viet Nam would enhance by 8-9 per cent within the Southern area and 6-8 per cent within the North this 12 months on account of a shortage of provide amid the rising demand.

Su Ngoc Khuong, senior director of Savills Viet Nam, stated that the constructive development prospect of the Vietnamese financial system after the pandemic attracted traders and created situations for the economic actual property market to be sturdy within the first months of this 12 months.

To draw multinational companies, Viet Nam wanted to develop not solely large-scale industrial parks but additionally the transportation and logistics infrastructure techniques and hasten administrative reforms to enhance the funding local weather, Khuong stated.

Localities and Vietnamese companies want to organize high-quality human sources, particularly for hi-tech industries, to fulfill the demand of multinational companies, an essential issue to draw them, because the Authorities prioritises attracting funding in hi-tech industries, not labour-intensive.

Based on David Jackson, CEO of Colliers Viet Nam, Viet Nam wanted to resume the economic park improvement mannequin to construct eco-industrial parks.

This mannequin would play an essential function within the sustainable improvement technique, decreasing useful resource exploitation and limiting the impression on the setting however not affecting the efficiency of companies, including that this mannequin would additionally contribute to the international locations and world effort to fight local weather change.

Particular steps to be taken had been to enhance the expertise switch capability of enterprises, apply superior applied sciences and minimise emissions, he added.

He stated that industrial zones ought to improve linkage to develop manufacturing and logistics chains to enhance competitiveness, decrease manufacturing prices and enhance sustainability.

HCM Metropolis meals companies below stress to hike costs as prices skyrocket
     
Rising uncooked materials and gas prices are placing stress on meals companies and eating places in HCM Metropolis to hike costs.

Saigon Meals JSC was quoted by Tuoi Tre newspaper as saying it has elevated processed meals costs by as much as 15 per cent on account of excessive prices.

Uncooked supplies and packaging prices have been rising for the previous two years as COVID-19 disrupted provide chains, whereas transport prices have gone up on account of rising gas costs.

Different meals corporations resembling Vissan JSC and Duy Anh Meals Firm additionally elevated their costs.

Pham Thi Huan, chairwoman of poultry merchandise provider Ba Huan JSC, stated her firm’s egg merchandise had been a part of the town’s value stabilisation programme, however rising prices had been creating nice stress.

Tran Quoc Thinh, founding father of the 109 Rooster Hotpot chain, stated uncooked materials prices had elevated by 15 per cent from final 12 months, and lease had additionally gone up.

Even low-cost eating places whose most important clients are college students and low-income employees are having to boost costs for the reason that prices of elements and cooking oil have doubled within the final two years. Some are dropping price-sensitive clients in consequence. 

Viet Nam ought to prioritise worth added cashew merchandise for EU market
     
Enterprises ought to prioritise funding in creating value-added cashew merchandise to keep away from dropping its market share as a substitute of solely specializing in wholesale, in line with consultants.

Viet Nam’s cashew nut is dominant within the EU market, nonetheless, it’s primarily uncooked materials and there are only a few processed merchandise, particularly roasted and spiced merchandise in line with the style of EU clients.

In the meantime, merchandise comprised of cashews, particularly spiced cashews, chocolate lined cashews, cashew milk, and cashew yoghurt, have gotten increasingly fashionable for EU customers as a result of they’re wholesome various meals.

As well as, to take care of the market shares of Viet Nam’s cashew nuts within the EU market, consultants have beneficial that the home enterprises ought to take consultancy from legislation companies on EU laws on imported items, together with cashews, as a result of the laws are very sophisticated and are regularly up to date. In addition they want the legislation companies’ assist throughout implementing enterprise transactions to keep away from dangers.

Within the meals sector, the EU has no necessary laws, however meals security certifications, social duty certifications, and packaging and label necessities are notable plus factors for the companies when exporting meals to the EU, in line with the consultants.

Natural cashew merchandise are highly regarded within the EU so it is a potential area of interest marketplace for Vietnamese companies.

Nonetheless, the consultants have warned that Viet Nam’s cashew nuts have confronted competitors within the EU market. Particularly, in 2019-2020, Viet Nam’s cashew market shares in France decreased from 61 per cent to 46 per cent. At supermarkets and hypermarkets, there are virtually no Vietnamese-branded cashew merchandise as a result of the home enterprises have primarily targeted on wholesale, not retail.

Son stated the cashew nut provide chain in France had modified markedly with declining volumes of the large suppliers, resembling Viet Nam and India, and the emergence of another suppliers, particularly Cambodia.

He additionally added that EU enterprises might put money into the African area to diversify the provision of cashew nuts and keep away from dependence on Viet Nam and different Asian international locations.

The EU, particularly France, has a really particular relationship with Africa, which not solely has a better geographical location than Viet Nam but additionally has a historic relationship with France. Due to this fact, Viet Nam additionally wants to concentrate to this concern, in line with Son.

As well as, in line with Dang Hoang Giang, common secretary of the Viet Nam Cashew Affiliation, home cashew enterprises are missing market details about buyer tastes, particularly the purchasers who’re considering roasted Vietnamese cashew merchandise offered in EU comfort shops.

Inspectorate urges HCM Metropolis to hurry up restructuring of SOEs
     
HCM Metropolis wants to hurry up equitisation to restructure state-owned enterprises and enhance their effectivity, in line with the Authorities Inspectorate.

The equitisation of state corporations is progressing at a tardy tempo, a latest report by the inspectorate says.

It additionally has shortcomings by way of allocation of belongings for equitisation, willpower of enterprise worth, willpower of the ratio of state capital post-equitisation, and choice of strategic traders.

Based on the Ministry of Finance’s company finance division, many SOEs within the metropolis are massive and have sophisticated monetary and land possession buildings, and so equitisation, particularly evaluating their belongings, is just not simple.

As of 2016 the town had 62 SOEs totally owned by the state, in line with the Authorities Inspectorate.

Phan Thi Thang, vice chairwoman of the town Individuals’s Committee, has sought the HCM Metropolis Enterprise Administration Innovation Board’s recommendation to take away obstacles and velocity up equitisation of SOEs.

Equitisation plans for 2016-20 had not been fruitful, she admitted.

She stated the Individuals’s Committee would proceed to examine the usage of public properties and actual property to make sure they’re utilized in accordance with pointers.

Specialists stated the restructuring of SOEs should concentrate on resolving points confronted by weak and loss-making enterprises whereas sustaining, consolidating and creating environment friendly ones via good branding.

Vietnam to introduce nationwide improvement methods at 2022 Davos WEF: Ambassador

Deputy Prime Minister Le Minh Khai will attend the 52nd World Financial Discussion board (WEF) annual assembly from Could 23-24 in Davos, Switzerland, on the invitation of WEF Founder and Government Chairman Professor Klaus Schwab.

This will likely be one of many main multilateral overseas relations actions of Vietnam in 2022, particularly within the context that the annual assembly of this main world financial discussion board has been postponed over the previous two years on account of COVID-19, in line with Ambassador Le Thi Tuyet Mai, Everlasting Consultant of Vietnam to the United Nations, the World Commerce Organisation (WTO) and different worldwide organisations in Geneva.

She stated that since Vietnam and the WEF arrange their relationship in 1989, leaders of each side have paid nice consideration to the promotion of bilateral ties in lots of fields.

Vietnam attended 4 WEF annual conferences at prime ministerial degree in 2007, 2010, 2017 and 2019, and joined the WEF on ASEAN at prime ministerial degree 4 instances in 2012, 2013, 2014 and 2017. The nation hosted the WEF on ASEAN in 2018, the WEF on Mekong in 2016 and the WEF on East Asia in 2010.

120 companies to affix Automechanika Ho Chi Minh 2022 exhibition

As many as 120 home and overseas exhibitors are set to show auto merchandise of well-known worldwide manufacturers resembling DTE system, Dunlop Tech, Exedy, CEPSA, and Respol at Automechanika Ho Chi Minh 2022, which can happen within the southern metropolis from June 29 to July 1.

Automechanika Ho Chi Minh 2022 will likely be carried out in each on-line and conventional codecs and can characteristic the participation of worldwide enterprises from 15 international locations and areas, together with China, Germany, Hong Kong (China), India, Italy, the Republic of Korea, Malaysia, Center East, Poland, Spain, Taiwan, Vietnam, and Singapore.

This 12 months, as a way of satisfying the wants of the regional market in addition to the excessive necessities for high-quality merchandise, the exhibition will function a platform as a connection and interactive channel for companies. The occasion will even present skilled social networks about vehicles as a way of enhancing advertising actions.

A automotive upkeep and care competition at Automechanika Ho Chi Minh 2022 will signify a brand new playground for automotive house owners to expertise and realise the significance of upkeep, in addition to being a possibility for them to entry new expertise merchandise. This can contribute to serving to the automobile working course of obtain optimum effectivity and security.

Moreover, main home and overseas consultants will share the most recent data on the auto business and a few improvement orientations, together with outlining methods of enhancing the information of automotive mechanics via apply classes and seminars held inside the occasion.

Automechanika Ho Chi Minh 2022 will provide a correct resolution for the auto business’s improvement and assist companies to advertise commerce exchanges with each home and overseas clients.

Discussion board promotes Vietnamese and Latvian enterprise connectivity

The Vietnam – Latvia enterprise discussion board slated for Could 31 is anticipated to spice up commerce change and improvement between the 2 international locations transferring ahead.

The organisation of the discussion board is a part of a spread of actions being held to mark the thirtieth anniversary of diplomatic relations between the 2 sides.

The Vietnam Commerce Workplace in Sweden, concurrently of the Nordic area, stated that Latvia is without doubt one of the three nations within the Baltic area.

Within the three many years following the preliminary institution of diplomatic relations, Vietnam and Latvia have loved a sound co-operative relationship. Nonetheless, by way of commerce, turnover between the 2 international locations stays extraordinarily restricted.

At the moment, Vietnamese export staples embrace seafood, cashew nuts, espresso, pepper, plastic merchandise, bamboo and rattan merchandise, wooden and wooden merchandise, clothes and textiles, footwear and different merchandise.

Vietnam imports gadgets from Latvia resembling rubber, timber and wooden merchandise, cotton, materials of all types, uncooked supplies for textiles and clothes, leather-based, equipment, gear, and prescription drugs.

Latvia is broadly seen as a possible import marketplace for seafood and canned fish merchandise from 40 international locations globally because it offers crucial supplies for the nation’s seafood processing business.

Tan Son Nhat Worldwide Airport’s Terminal 3 building to kick off in Could

Airports Company Vietnam (ACV) has proposed starting the development of Tan Son Nhat Worldwide Airport’s Terminal 3 this month after an extended delay.

The most recent plan means that the development of the brand new terminal will likely be accomplished inside 37 months.

Based on ACV, the preparation work for the development is principally accomplished and the investor is simply ready for the land handover. The Ministry of Defence has requested the prime minister to approve handing over 16 hectares of land in Tan Binh district – which is managed by this ministry – to serve for the development.

At current, Ho Chi Minh Metropolis is ready for opinions from the Ministry of Finance after which it would construct a report back to undergo the prime minister for approval.

The terminal has a designed capability of 20 million passengers a 12 months, which might assist ease the overload at Terminal 1. It should additionally contribute to coping with the site visitors jams on the metropolis’s gates, selling financial and tourism improvement for Ho Chi Minh Metropolis and different components of the southern area.

UN guarantees assist for Vietnam’s vitality transition scheme

The United Nations (UN) has affirmed its willingness to assist Vietnam in establishing a partnership on vitality transition with the Group of Seven (G7) nations in a letter of UN Secretary-Basic Antonio Guterres to Vietnamese Prime Minister Pham Minh Chinh.

Particular Adviser to the UN Secretary Basic on Local weather Motion Selwin Hart handed over the letter to Ambassador Dang Hoang Giang, Everlasting Consultant of Vietnam to the UN at a gathering in New York on Could 18.

Within the letter, the UN Secretary Basic applauded Vietnam’s resolution to make a robust dedication to net-zero emissions by 2050 and decreasing home coal-fired electrical energy consumption on the twenty sixth United Nations Local weather Change Convention of the Events (COP26), affirming that the UN totally helps Vietnam’s efforts to part out coal-fired energy by 2040.

Guterres welcomed G7 nations’ latest settlement to prioritise the institution of partnership with Vietnam on vitality transition.

Ambassador Giang thanked the UN and the Secretary Basic for the assist for Vietnam, saying that he’ll quickly ship the letter to PM Chinh and can proceed to work intently with the particular adviser and UN companies on this concern.

SCG kicks off the first-ever Hacks to Heal our Planet competitors in Vietnam

SCG has introduced the Hacks to Heal our Planet contest in Thailand, Indonesia, and Vietnam. It is a chance for the brand new technology to indicate their inventive concepts to enhance the setting, construct a greater society, and guarantee a greater world for future generations.

In Vietnam, SCG is cooperating with the Pupil Help Heart to ask residents aged 15 to 30 to unleash their expertise and share their revolutionary concepts within the environmental sector with a complete prize of as much as VND100 million ($4,315). By means of the competition, SCG not solely hopes to create a large-scale playground for the proficient new technology but additionally reaffirms its duty of main younger folks to work collectively to construct a greener and higher planet.

Adopting the environmental, social, and governance (ESG) strategy, the idea-pitching contest Hacks to Heal our Planet is split into three classes, together with concepts to unravel environmental issues and inequality, enhance inclusion, range, and transparency, and struggle injustice.

The competition contains two rounds, the Vietnamese nationwide spherical from Could 10 to June 6 and the ASEAN regional spherical from June 6 to July 19.

Persons are in a position to apply for the competition individually or as a group – with a most of 5 members per group. Vietnamese contributors are required to submit a video idea presentation, an art work poster, a undertaking proposal, and participant data at scg.sac.vn/ytuongxanh by the tip of Could 24.

The highest 10 awards in Vietnam will likely be introduced on June 6 and chosen for the regional spherical to compete with different international locations. Within the ultimate spherical, the highest three in every class will current their concepts on-line on June 10 and the winners will likely be introduced on the ESG Symposium in Thailand on July 19.

As well as, to inspire the 9 finest contributors within the ultimate regional spherical, the competition will likely be open for voting on the web site from June 17 to July 12.

Supply: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes

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