Fruit and vegetable exports skyrocket in first four months

In April alone, the country bagged $380 million from fruit and vegetable exports, raising the total export value in the reported period to $1.35 billion.

The figures were lower than $610 million export revenue in the first 2 months of the year. With this positive signal, fruit and vegetable product is growing with many hopes for a strong breakthrough in the whole year 2021.

China remained as the biggest importer of Vietnamese fruit and vegetables during the first quarter, accounting for 64.7% of the overall market share as exports to the country reached $610.8 million, up 16.2% from a year earlier. Strong export growth was also recorded in the Ukrainian market, which represented a 7-fold increase.

Vietnam’s fruit and vegetable exports recorded a diversified market. In January, 2021, China also ranked first in the fruit and vegetable import market of Vietnam with 59.1% of market share, reaching $182.9 million, up 5.4% over the same period in 2020.

Fruit and vegetable exports achieved positive results, so it is completely possible to expect export turnover of these products to grow this year.

Fruit and vegetable processing industry has many advantages to increase production and export turnover thanks to the signed free trade agreements, said Mr. Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association.

Several types of vegetables and fruits from Vietnam have fully met the strictest criteria of high quality markets such as the US, EU, Japan, creating confidence for international importers, Nguyen said, adding that the industry needs to focus on improving product quality, ensuring the material origin, food safety on the basis of building planting areas in VietGAP, Global GAP standards, processing factory certified with ISO.

Recently, Louis Holdings Joint Stock Company has developed a processing plant named Toccoo in Long An province. This factory will focus on producing and bringing the world’s consumer the products from the mainly agricultural products of Long An Province and the surrounding area such as dragon fruit, jackfruit, pineapple, and mango.

With a capacity of 4 tons per hour, each year the factory is expected to produce 15,000 to 20,000 tons of products.

The VND250-billion factory was built on the land of the corporation with an area of 17,155 square meters. The factory’s annual revenue target was expected to reach VND800-1,000 billion.

Although being built and put into operation in the difficult time when the export sector of agricultural product is facing difficulties due to the COVID-19 pandemic, said Mr. Huynh Quang Vinh, General Director of Louis Holdings.

“There is always an opportunity in danger. We saw double-digit growth in Vietnam’s vegetable and fruit processing annually,” said Vinh, adding Toccoo Factory will focus on European, American, Japanese, Korean, Australian markets.

Vietnam to bag $10 billion from fruit and vegetable exports by 2030

Toccoo Factory is expected to contribute to Vietnam’s fruit and vegetable export target of $8-10 billion from in 2030 and revenue from processed products will account for at least 30% of the total.

Under a project to develop the fruit and vegetable process sector during 2021-2030 recently approved by the Prime Minister, Vietnam targets to attract investment in 50-60 fruit and vegetable processing establishments, and build several modern groups and enterprises who have good competitive capacity.

With a view to achieving the goals, Vietnam will invest heavily to improve processing ability, give priority to processing key fruits and vegetables which have high values, set up material zones, and develop markets for the products, according to the Vietnam News Agency.

The project laid stress on the necessity to build processing and packaging facilities and storage warehouses and install suitable equipment to reduce post-harvest losses.

Besides, it is crucial to attract investment to ensure that all of the production facilities will be well equipped with necessary machines by 2030.

Along with encouraging businesses to invest in food irradiation centres at large-scale fruit and vegetable farming areas so that their products meet international standards, the country will promote intensive processing and diversify processed products.

Additionally, the country will establish specialized fruit and vegetable cultivating areas which are able to provide some 5-6 million tonnes of high-quality products for processing by 2030.

Source: Nhip Cau Dau Tu Magazine

Photo : VNHAM

Vietnam would continue to be world’s second largest rice exporter: US department

According to the department, Vietnam will export 6.4 million tonnes of rice in 2011, an increase of 233,000 tonnes compared the volume recorded in the previous year.

It is likely that India will remain the largest rice exporter in the world, with 15.5 million tonnes rice shipped abroad this year. Thailand will rank third with an estimated export volume of 6.1 million tonnes.

Last year, Vietnam shipped abroad 6.15 million tonnes of rice worth 3.07 billion USD, down 3.5 percent in volume but up 9.3 percent in value year-on-year.

Statistics show that in the first four months of this year, the country exported 1.89 million tonnes of rice, down 10.8 percent in volume but up 1.2 percent in value over the same period last year.

The Vietnam Food Association said Vietnam’s rice export structure has shifted towards quality types with higher prices and added values.

Source : Vietnamplus

Photo : VNHAM

US firm proposes two LNG projects in Van Phong EZ

Khanh Hoa  – Authorities of the south central coastal province of Khanh Hoa have sought the Prime Minister’s backing of two major projects with total investment of more than 27 billion USD proposed by the Millennium Energy Corp of the US at the Van Phong Economic Zone (EZ).

The projects aim to build a power plant fuelled by liquefied natural gas (LNG) and an LNG depot in the southern part of the Van Phong EZ.

The Khanh Hoa People’s Committee requested that the PM instruct the Ministry of Industry and Trade to consider and add the projects to the national power development plan and the master plan on national energy, both for the 2021-30 period, with a view to 2050, so as to enable the investor to carry out the projects in line with the regulations.

The US company surveyed the Van Phong EZ last July and signed a memorandum of understanding with the EZ on the building of documents to invest in the two projects, using about 360 ha of land.

It proposed the construction of a 4.7-billion-USD LNG-fuelled power plant with a capacity of 4,800MW with four turbines which will be built in two phases.

Commercial operation of the first phase is scheduled to begin some time during 2027-2030 while the second one is slated for after 2030.

Regarding the Van Phong LNG depot, the US firm is set to build a storage facility with a total capacity of 17 million cu.m., with an aim to supply LNG to its own plant and other projects in Vietnam, towards exporting the gas to other Asian nations. Total investment in the facility is estimated at 22.5 billion USD.

Khanh Hoa’s Van Phong EZ so far has attracted 153 investment projects with a combined registered capital of 4.1 billion USD, including 30 foreign projects nearing 1.4 billion USD.

Ninety four projects have come into operation.

The EZ is already home to a 1,320-MW thermal power plant costing 2.58 billion USD and a petrol and gas terminal worth 125 million USD, among others.

Source: VNA

Photo: File

German businesses expect Vietnam economic recovery by 2022: DIHK

German business leaders in Vietnam maintain positive view with the economic expectation while looking forward to a recovered year of 2021 and 2022.

German businesses show optimism about Vietnam’s economy in the medium term and look forward to its recovery by 2022.

The Association of German Chambers of Commerce and Industry (DIHK) revealed sentiment of German businesses in its world business outlook survey with Vietnam in focus, released on May 12.

According to the survey, while 46% had a positive view of the local economic development in 2020, 66% expects a significant improvement in 2021. One-third of survey participants think that the economy of Vietnam will recover in the first half of this year, and 30% says that the recovery will happen next year, in 2022.

“Vietnam will become a strategic investment destination in the process of restructuring the global and regional supply chain, a potential domestic market to attract international corporations,” stated the DIHK.

In this regard, “FDI enterprises, especially German businesses also show optimism about Vietnam’s economy in the medium and long term. German business leaders maintain positive view with the economic expectation while looking forward to a recovered year of 2021 and 2022,” it noted.

For the upcoming 12 months, 55% rate their current business situation in Vietnam as good and 11% as poor. This poses a stark contrast with last year, as only 33% had a positive view of their situation in Vietnam.

Another positive note is that 47% of German companies in Vietnam intend to expand their activities in Vietnam and 50% assume an increase in employment in 2021/2022.

However, DIHK also revealed that “lack of qualified workers and low demand [both at 42%] are the greatest business challenges for German investors in Vietnam,” followed by economic policy, financing, legal certainty and infrastructure.

To ensure sustainable supply chain, 67% of German participants would diversify their supply chain by finding additional suppliers, changing in delivery routes or increasing their inventory.

Despite Covid-19 pandemic, the Deutsche Bank forecast Vietnam to achieve a growth rate of 7.5% this year, which came on the back of a positive growth of 2.9% last year amid severe Covid-19 impacts.

Meanwhile, a World Bank study suggested the simultaneous implementation of the EVFTA and CPTPP would help Vietnam’s GDP increase by up to 3.2% in the decade 2021-2030.

Since 2015, the world business outlook survey conducted by the network of German Chambers of Commerce Abroad (AHKs) encompasses the feedback from more than 4,500 German companies, branches and subsidiaries worldwide and in Vietnam as well as international companies with close links to Germany.

As such, it is widely seen as a key indicator of German business situation, business expectation as well as economic expectations.

 

Source : The Hanoitimes

Photo : DIHK

US and EU buyers to choose Vietnam as sourcing destination in 2021

Global supply chains will turn to Vietnam, India and Turkey for more diverse sourcing.

US and other global buyers continue to choose Vietnam as one of the leading sourcing countries this year as they are seeking to diversify their buying away from China.

The latest report, conducted by Qima, a provider of supply chain compliance solutions, showed that roughly a third of global buyers and 38% of US-based buyers named Vietnam as a place they intend to increase sourcing from 2021.

A traditional first choice for buyers diversifying away from China, Vietnam saw its popularity among Western buyers grow by leaps and bounds over the past few years – a trend that has remained in effect so far in 2021.

The data showed a 16% year-over-year increase in demand for inspections and audits in Vietnam in the first quarter (Q1). It was a third consecutive quarter of growth that had initially begun as a post-lockdown rebound in mid-2020.

The growth was more than just a return to pre-pandemic levels, as the Q1 inspection demand has doubled compared to Q1 2019, according to the report.

The inspection surge in Vietnam is in line with the findings of the QIMA global sourcing survey, where 43% of US-based respondents cited Vietnam among their top three buying geographies as of early 2021, doubled from 2019.

Vietnam is not the only country in the region to benefit from expanded business volumes. Qima data on inspection and audits demand in Southeast Asia showed double-digit growth across the board, fueled by the renewed interest from American and European brands alike.

The report was conducted on more than 700 businesses with international supply chains.

Source : The Hanoitimes

Photo : File

Vietnam’s PMI in April 54.7

Vietnam’s PMI reading hit highest level since November 2018. Vietnam’s Purchasing Manager Index (PMI) of the manufacturing sector increased to 54.7 in April — the strongest improvement in operating conditions of the manufacturing sector since November 2018. The sharp improvement in the manufacturing sector was driven by rising domestic and overseas demand. While the recent spike in new virus cases globally could affect the global recovery pace, rapid vaccination rollouts in the US and the control of COVID-19 in China (the top two markets that account for nearly half Vietnam’s exports) should help to partly support Vietnam’s export-oriented manufacturing sector.

Source. VCSC

Photo: VNHAM

Two more Japanese-made metro trains arrive in Ho Chi Minh City

The second and third trains of Ho Chi Minh City’s metro line No. 1 have reached a seaport in the southern metropolis after a nine-day journey.

The trains were transported by the Kaisa cargo vessel, which docked at Khanh Hoi Port in District 4 at around 6:00 am on Monday.

The ship began its voyage at the Port of Kasado in Japan on May 1.

After being unloaded from the ship, the second and third trains will be transported by road from the port to the Long Binh depot of the metro line in Thu Duc City on May 11 and 13, respectively.

They will then be installed on the T1 track at the depot for trial operations.

This is a very important milestone of the metro project, marking the official transition from construction and installation to trial operations, said the municipal Management Authority for Urban Railways.

To date, three out of the metro line’s 17 trains, consisting of 51 carriages, have been delivered to Vietnam from Japan, with the first arriving at the port on October 8, 2020.

The next trains will be brought home in the coming time and the line is expected to be put into commercial operation next year.

Each train has three carriages and can carry a total of 930 passengers, including 147 seated and 783 standing guests.

The metro line is 19.7 kilometers long, including 2.6 kilometers of underground railways and 17.1 kilometers of elevated tracks.

The route runs from Ben Thanh Market in District 1 to Suoi Tien Theme Park in Thu Duc City through three underground stations and 11 stops above the ground.

The maximum speed is 110 kilometers per hour along the elevated section and 80 kilometers an hour underground.

About 84.44 percent of the workload of the project, which started in August 2012, has completed so far, Tien Phong newspaper reported.

The project costs more than VND43.7 trillion (US$1.9 billion), most of which has come from Japan’s official development assistance (ODA).

Source: Tuoi Tre News

Photo: Tuoi Tre News

Banks want central bank to hike credit growth quotas as economy rebounds

Nguyễn Xuân Dương, chairman of Hưng Yên Garment Corporation, said his company expects its turnover to increase by 5-10 per cent this year, a higher rate than before the COVID-19 pandemic broke out.

It has received orders for until July, he revealed.

Dương’s is just one of many companies in a number of industries in Việt Nam and the world experiencing a strong recovery as the COVID-19 pandemic is hoped to be controlled in many countries thanks to vaccines.

This led to a sharp increase in demand for bank credit to import raw materials, pay salaries and expand production, Dương said.

SeAbank, for instance, said loans outstanding grew by 14.3 per cent year-on-year in the first quarter to VNĐ111.05 trillion.

Vietcombank chairman Nghiêm Xuân Thành said his bank achieved credit growth of 3.69 per cent, its highest rate in several years.

Nguyễn Hoàng Linh, general director of MSB, said his bank’s credit growth was 9 per cent.

According to data released by the General Statistics Office, as of March 19 overall banking credit was up 1.47 per cent, 2.16 times the rate a year earlier.

Because of the rapid credit growth in recent months, the managements of several banks believe growth for the full year is likely to top 14 per cent, much higher than the central bank’s estimations of 7-8 per cent or 10 12 per cent.

Analysts attribute this possibility to businesses’ expectation of a strong economic recovery this year and keenness therefore to step up their activities.

Besides, lenders have achieved digital transformation and reduced deposit interest rates, which have helped them significantly cut costs and cost of funds, thus enabling them to lend at low interest rates.

Credit growth expansion

To fully tap the opportunities created by the economic recovery and expand lending, banks want the central bank to soon enlarge credit quotas.

Nguyễn Đình Tùng of OCB said liquidity in the banking system was so plentiful that lenders had had to reduce deposit mobilization by cutting interest rates.

They want to pump the money into the economy as soon as possible and several have already tabled ambitious credit growth targets at their annual general meeting this year for shareholders’ approval.

Notably, some are twice, thrice or even four times the quotas they have been allocated by the central bank.

Vietcombank for instance expects to have its credit growth quota adjusted upward from 10.5 per cent to 14 per cent.

VIB was allotted a quota of 8.5 per cent but its shareholders approved a target of 31 per cent.

Its chairman, Đăng Khắc Vỹ, said he believed the new target would be approved by the State Bank of Việt Nam since it was always ready to adjust credit growth limits based on market developments.

Analysts agreed with him, saying the central bank’s allocation is aimed at both ensuring there is adequate credit to serve the economy’s needs and controlling the quality of credit, thus precluding bad debts.

It also assigns the annual credit growth quota for each bank by taking into account the macro picture of the entire banking system and money supply and inflation targets set by the Government.

Banks have got used to the central bank’s flexibility in fixing the quotas based on their credit quality and ability to achieve credit growth and the economy’s funding requirements.

Economist Dr Lê Xuân Nghĩa said it was time for the central bank to think of removing the credit quotas since they pose obstacles to businesses including the banks themselves.

Retail sales recover 

According to a recent report by the General Statistics Office (GSO), revenues from retail sales and services in the first quarter of the year were over VNĐ1,291 trillion (US$56 million), a year on year increase of 5.1 per cent.

In March they rose 9.2 per cent to VNĐ322.8 trillion following an 8.2 per cent increase the previous month.

This marked the 10th straight month of growth in retail trade and the fastest pace in three months amid strengthening consumption as the economy recovered further from the COVID-19 shocks in the first quarter.

Sales were up in most categories compared to a year ago. Even the travel category saw somewhat of an improvement, falling by only 34.6 per cent as against 60.8 per cent.

As a result, retail sales made up the bulk of total trade and service revenues at more than VNĐ1,033 trillion, or 80.1 per cent, up 6.8 per cent.

Revenues from accommodation and catering services were worth VNĐ124 trillion, down 3 per cent. Revenues from other services were estimated at VNĐ130.8 trillion, up 3.9 per cent.

Income from tourism was only VNĐ3.1 trillion, down 60.1 per cent.

Analysts said the retail segment had begun to recover since the COVID-19 pandemic was brought under control, becoming one of the strong areas of the economy.

Last year too the retail market had achieved good growth because of the Government’s quick control of the pandemic.

The GSO said retail sales of goods had been worth nearly VNĐ4 quadrillion ($172.8 billion), 6.8 per cent up from 2019.

The retail market had maintained double-digit growth for five years before 2020, and is all set to reach $200 billion in the next two years if its growth continues.

According to the Ministry of Industry and Trade, retail sales of goods and services registered high growth in Hải Phòng, Cần Thơ, Hà Nội, Đà Nẵng, and Đồng Nai.

Source : VNS

Photo : File

Vingroup to stop production of smartphones and TVs

Hanoi – Vingroup is to halt the production of TVs and smartphones to focus on the development of its Internet-of-Things and Infotainment for VinFast cars, according to a press release by the country’s largest conglomerate on May 9.

„Production of smartphones and smart TVs is no longer able to deliver breakthroughs and added-value for consumers. We have decided to instead invest in the development of smart vehicles, smart home and smart city solutions, areas in which we are confident we can deliver excellent customer experience and value,“ said Vingroup’s Vice President and CEO Nguyen Viet Quang.

VinSmart’s factories, however, will continue their production on current models of smartphones and TVs until their life cycle is completed before going through reconfiguration.

Owners of Vingroup’s smartphones and TVs are still entitled to the same after-sales services and warranty, the group also promised to continue its software support for their products.

The group is set to shore up its capacity in the production of electronics, battery cells and electric engines. Vinhomes Smart City and Vinhomes Ocean Park are among the latest of the group’s ventures into smart home solutions.

Announced in June 2018, VinSmart has since sold 19 smartphone and five TV models. The brand has made headlines by breaking into the top three of the most popular phones in Vietnam with a market share of 16.7 percent, which is mostly made up of affordable models, as reported in April 2020. There have been signs of slowdown by the end of 2020 as the group only announced one new model since.

 

Source : VNS/VNS

Photo : File

HSBC: foreign investors hard to ignore Vietnamese stock market for longer

Vietnam is frontier equity market which has been interested in and liked, with its turnover now almost the same level as Singapore and far more than Malaysia and Indonesia, according a report by HSBC.

The report said a record 113,000 new domestic trading accounts were opened last March, taking the total to 3.02 million.

Average trading value per session was estimated at US$725 million in April, much higher than $596 million in the previous month. One year ago, this figure just stopped at $130 million.

As a result, the Vietnam market turnover is now almost at the same levels as Singapore and far more than Malaysia and Indonesia.

The VN-Index is up 12.4 percent since the beginning of this year, outperforming all the major regional benchmarks, and it has breached the psychological barrier of 1,200 for the first time, a level it failed to reach during previous bull markets in 2007 and 2018.

The effective containment of COVID-19 has led to a strong rebound in economic growth, and domestic liquidity has fueled the rally, which is being driven by new retail investors, the report noted.

HSBC believes that it will be difficult for foreign investors to ignore Vietnam for much longer for several reasons.

Vietnam offers a favourable risk-reward opportunity in one of the most resilient growth economies, it explained, adding that the Vietnamese market is getting deeper, broader and more liquid.

Foreign ownership limits (FOLs) are a key issue for foreign investors but HSBC argued it’s not a deal-breaker. Of the 30 major companies that make up the VN30 Index, 24 still have room available for foreign investors.

Stocks that have reached their FOL can be bought by paying a foreign premium. As they generate strong earnings growth but trade at cheaper valuations than their Asian peers, the premium doesn’t look excessive. Furthermore, policy reforms underway, although slow, are positive for the market.

Source: vietnamtimes.org.vn

Photo: VNHAM