Category: Business

The Vietnamese Trade Office in Singapore is working to promote the export of Vietnamese fruits, particularly longan and lychee, to Singapore.

Accordingly, a series of activities, including the Vietnamese Goods Week programme, as well as business networking and lychee testing events, have taken place in the island nation.

Further support from the office is also available for any Vietnamese localities and enterprises with intention to export fresh lychee and longan to the market.

As per data from the Singaporean business administration, last year, the country spent 6.78 million SGD (5.02 million USD) and 4.6 million SGD on importing fresh lychee and longan, respectively. Of the sums, shipments of the two fruits from Vietnam were worth 43,000 SGD and 4,000 SGD.

Vietnam's lychee and longan have so far entered many demanding markets such as Japan, the Republic of Korea, and Australia. With their quality, brand, and potential, they see ample room to gain a foothold in Singapore./.

Source: Vietnam News Agency

BANGKOK, 4 Jun- Good news for Thailand's export businesses. Expected growth trend in exports of fresh food, vegetables, fruits, processed products, industrial products expected to increase by 1-2%.

Mr. Kirati Ratchano, Permanent Secretary of the Ministry of Commerce revealed that from the event "THAIFEX-ANUGA ASIA 2023" at the end of May, it was considered very successful There were 3,034 exhibitors, 1,109 Thai companies and 1,925 foreign companies from 45 countries that brought fresh food and processed food to the exhibition, showing that Thai food products still have a lot of potential to grow with value. Trading from the event is 120,000 million baht, immediate trading is 1,106 million baht, and trading within a year is 118,600 million baht. It is expected that this year's overall food exports will reach 1.5 trillion baht, setting a target increase of 10%.

Mr. Jurin Laksanawisit, Deputy Prime Minister and Minister of Commerce Has informed the trade ambassadors around the world that Although it was during the period of the new government, but the commercial diplomacy was given to complete And after the Ministry of Commerce has discussed with the private sector. Many parties will work together to push this year's export numbers positive despite some negative factors. which reports from commercial ambassadors around the world, many markets still have opportunities to expand Because Thai products are in demand, whether fresh food, vegetables, fruits, processed products, industrial products. It is believed that the opportunity for Thai export numbers this year should increase by 1-2% positive .-Thai News Agency

Source: Thai News Agency

The index of industrial production (IIP) in May increased by 2.2% against the previous month, according to the General Statistics Office (GSO).

Compared to last year, the index inched up 0.1%, with power production and distribution as well as waste/waste water management and treatment expanding 5% and 6.8%, and processing-manufacturing and mining shrinking by 0.5% and 2.9%, respectively.

However, the IIP for the first five months of 2023 fell 2% over the same period in 2022 as the global economy continued to face numerous difficulties and the number of orders for exports declined.

Specifically, the sub-indexes of the processing-manufacturing dropped 2.5%, and mining fell 3.5%.

The five-month index saw annual rises in 49 provinces and cities. The northern province of Bac Giang took the lead with a growth of 15.4%., followed by Phu Tho (15.2%), Hau Giang (13.9%), and Thai Binh (13.2%)./.

Source: Vietnam News Agency

An investment promotion conference was held in Tokyo on June 2 to call for Japanese investment in localities of Vietnam.

The event drew the participation of leaders of the Vietnamese Ministry of Foreign Affairs, Embassy of Vietnam in Japan, representatives of four localities, namely Can Tho city, and Kon Tum, Bac Lieu and Thua Thien-Hue provinces, and businesses of the two countries. It was part of the activities to mark the 50th founding anniversary of Vietnam-Japan diplomatic ties.

Addressing the opening ceremony, Vietnamese Deputy Minister of Foreign Affairs Le Thi Thu Hang said ample room remains for the development of bilateral cooperation in general and cooperation between Vietnamese and Japanese localities, contributing to the enhancement of their relations and bringing benefits to the people of the two countries.

According to Tsukada Manabu, Senior Director for Global Strategy (Southeast Asia) at the Japan External Trade Organisation (JETRO), Vietnam plays an increasingly prominent role in the Association of Southeast Asian Nations (ASEAN) on attracting investment from Japanese enterprises.

The result of a recent survey conducted by JETRO showed that up to 60% of Japanese enterprises said they will expand their investment in Vietnam, while only 47% of businesses said they will expand their investment in Southeast Asia in general. This fact shows that Vietnam is appreciated by Japanese businesses more than ASEAN in terms of cooperation potential and market resilience.

Nguyen Huu Thap, Vice Chairman of the Kon Tum Provincial People's Committee, said that since 2017, the province has sent eight business delegations to Japan and welcomed 31 delegations of Japanese experts, scientists and representative agencies.

According to the official, there are 33 official development assistance (ODA) projects funded by the Japanese Government in Kon Tum province to improve socio-economic infrastructure with a total investment of 16 million USD. It has also received more than 2.17 million USD from Japanese organisations for the implementation of 14 projects, focusing on healthcare, rural infrastructure construction and education-training.

Kon Tum province prioritises attracting investment in the fields of high-tech agriculture, renewable energy, urban development, eco-tourism and community, Thap added.

Meanwhile, Nguyen Ngoc He, Vice Chairman of the Can Tho City People's Committee, said it intends to offer favourable conditions for investors to push up the locality’s development in a sustainable manner. Accordingly, domestic and foreign businesses will enjoy preferential policies on customs procedures, corporate income tax and land rent exemption for the long term.

Within the framework of the conference, participants witnessed the granting of an investment certificate of Thua Thien-Hue province to Okura Industrial Company of Japan and the exchange of contracts between Saigon - Hue Investment Joint Stock Company and the Okura Industrial Company./.

Source: Vietnam News Agency

Vietnam's motorcycle market has been among some of the fastest-growing markets in the world in the last decades despite setbacks brought by the COVID-19 global pandemic, according to the Vietnam Association of Motorcycle Manufacturers (VAMM).

Currently, there are more than 70 million registered motorcycles in the Southeast Asian country with the figure projected to grow even larger in the future. In the first four months of 2023 alone, the country produced more than 1 million new motorcycles.

Five major manufacturers: Honda, Yamaha, Suzuki, Piaggio, and SYM hold over 90% of the market share in Vietnam, manufacturers also export fully assembled models to international markets.

VAMM said the stage has been set for Vietnam to become an attractive destination for motorcycle manufacturers in the Asia-Pacific region.

Due to supply chain difficulties and rising trade tension between the US and China, manufacturers have been shifting their investments to smaller markets in Asia to minimise risks. For example, the Japanese government has allocated a 2.2 billion USD fund in support of Japanese businesses relocating from China while the US government has been calling for US businesses to either return to the US or relocate to another country.

Against this backdrop, Vietnam has emerged as a promising new destination for many motorcycle manufacturers.

Honda Vietnam currently owns and operates three factories in the country with a production capacity of 2.5 million motorcycles a year. Yamaha Motor Vietnam owns and operates two factories. Piaggio Vietnam owns and operates two factories with a production capacity of 250,000-400,000 motorcycles a year.

However, the market is not without its challenges.

Vietnam's motorcycle market in recent years has shown signs of saturation. While annual motorcycle production continued to rise, demand and purchasing power have largely failed to keep up. This has forced manufacturers to start investing more in product diversification, particularly in the premium segment, as well as seeking ways to boost exports of fully assembled models, and spare parts to international markets.

For instance, Yamaha Motor Vietnam has been exporting models to supplement the Indonesian market since 2019. Last year, the company became the first foreign factory to produce and export the NEO'S electric motorcycle to European markets.

In May this year, Yamaha Motor Vietnam officially inaugurated its fourth assembly line, specifically for engine assembly for exports. This move demonstrated the Japanese company's confidence and commitment to Vietnam.

According to the company, the new line will produce engines for export to Thailand during Phase 1 with a localisation rate of up to 95%. Over the next three years, the company is to expand its exports to other markets including the Philippines, Indonesia, and Malaysia, with an expected export volume of around 200,000 units.

Similarly, Honda Vietnam has been pushing the export of fully assembled models and spare parts. Last year, the company exported 207,000 motorcycles with a total export turnover of over 462 million USD, a 25% increase in revenue over 2021, according to VAMM. The company said this year it has set a target to export nearly a quarter of a million models or a 9% increase over 2022.

According to industry experts, in order to maintain growth in the Vietnamese market companies must start investing in the development of new product lines to cater to customers' evolving preferences.

New trends include prioritising energy-efficient models, compact design and hassle-free operation.

According to MotorCycles Data, a website specialised in the motorcycles market data and forecast, Vietnam's electric bike segment has maintained a steady growth rate at 5.6% during the first quarter of 2023 in comparison to a contracted internal combustion segment./.

Source: Vietnam News Agency

Prime Minister Pham Minh Chinh on June 3 asked ministries, agencies and localities to push the three engines of export, investment and consumption in order to spur the country's economic growth in the time ahead.

Speaking at an online regular meeting between the Government and localities, the leader stressed the need to remove obstacles to production and business, and help enterprises in administrative procedures, interest rates and market expansion.

He also urged localities to accelerate the disbursement of public investment capital and the implementation of the socio-economic recovery and development programme as well as national target programmes, and focus on site clearance and material preparations for key projects.

Apart from promoting domestic consumption, it is necessary to expand export markets, the PM said, highlighting other tasks such as effectively optimising free trade agreements, materialising the National Power Development Plan VIII which has been approved recently, ensuring food for domestic consumption and exports, having the European Commission (EC)'s “yellow card” warning against Vietnam's seafood exports lifted, and dealing with the shortage of medicines, vaccines and medical equipment, among others.

The move is to maintain the macro-economic stability, control inflation, boost growth and ensure major economic balances, PM Chinh emphasised.

According to the leader, over the past five months, thanks to joint efforts by the Government, ministries, agencies and localities, progress has been made in production, business, export, foreign direct investment (FDI) attraction and the real estate market.

The socio-cultural and sport fields have also recorded development, he continued, adding that people’s lives have remained stable, social order and safety and national defence and security have been ensured, and external affairs and international integration have been stepped up.

The participating Deputy PMs, and representatives of ministries, agencies and localities shared the view on the drastic, close instruction and the flexible, effective management of the Government and the PM over the past time, leading to positive changes in the socio-economic situation despite a range of difficulties and challenges.

They also pointed to the huge growth pressure in the remaining months of this year, saying the growth rate must be higher than that recorded in the previous period.

To that end, they raised proposals regarding the implementation of big investment and construction projects, credit and tax policies, work permit and visa, and wage, among others./.

Source: Vietnam News Agency

The Tourism Authority of Thailand (TAT) has predicted that the country’s tourism industry can earn 3 trillion THB (86.75 billion USD) in revenue in 2024, equivalent to the level of 2019.

Tanes Petsuwan, Deputy Governor for Asia and the South Pacific at TAT, said the agency is working on new promotional plans for the next fiscal year and expects to finalise its proposal to the new government next month.

The key strategies are intended to promote high-value tourism, meaningful travel and sustainability, he said.

The official said the delay in forming a government will not affect its promotional plans for the fourth quarter, even though fiscal 2024 starts in October.

TAT is targeting 2 trillion THB in revenue from international tourists and 1 trillion THB from the domestic market next year, according to Tanes.

As foreign tourist arrivals hit almost 11 million in the first five months of this year, Tanes said Thailand is on track to reach at least 25 million international visitors in 2023, generating 2.38 trillion THB.

The short-haul market will be a key driver for Thailand’s tourism, accounting for 70% of frequency and 62% of revenue contribution, he said, adding that the recovery rate of international flights was 70% and will increase during the cool season./.

Source: Vietnam News Agency

Vietnam will develop and diversify rice export markets with a reasonable, stable, and effective scale, market and product structure under a strategy recently approved by the Prime Minister.

The Strategy on Development of Vietnam's Rice Export Markets until 2030 sets the targets of improving the value of exported rice, and reducing export volume by 2030 to about 4 million tonnes with a turnover of about 2.62 billion USD.

The Ministry of Agriculture and Rural Development reported that last May, Vietnam shipped abroad some 1 million tonnes of rice valued at 489 million USD, raising rice export volume and value in the first five months of this year to nearly 3.9 million tonnes and 2.02 billion USD, representing year-on-year increases of 40.8% and 49%, respectively.

In the first four months of this year, the Philippines was Vietnam’s biggest rice importer, making up 42.4% of the market share.

Among Vietnam’s 15 biggest rice buyers, Indonesia experienced the sharpest rise in value (26.3 times), according to the ministry.

Under the strategy, Vietnam's rice sector will also increase exports of high-quality rice. Specifically, between 2023 and 2025, the proportion of low- and medium-grade white rice will not exceed 15%; high-grade white rice will account for about 20%; fragrant rice, japonica rice and specialty rice 40%; sticky rice 20%; rice products with high added value such as nutritious rice, parboiled rice, organic rice, rice flour, rice-processed products, rice bran and some other rice by-products 5%; and rice with brand names 20%.

Nguyen Van Thanh, Chairman and CEO of Phuoc Thanh IV Trading - Production Company Limited, said the adjustments are suitable, explaining that the Mekong Delta, Vietnam's rice bowl, reduced the number of rice crops to only one from three.

Experts said intensive processing will help Vietnam raise its rice value by multiple times, noting it requires investment in science-technology to put the grain on market shelves in Europe, the US, Canada, Japan and the Republic of Korea (RoK).

Deputy Minister of Agriculture and Rural Development Phung Duc Tien said up to 85% of Vietnamese rice varieties are high-quality ones. Therefore, prices of Vietnamese rice have exceeded those of Thailand to stand at 485-495 USD per tonne.

Given requirements of markets and free trade agreements, the research of high-quality rice varieties with affordable prices has proven effective in rice production, especially in terms of food security, he said./.

Source: Vietnam News Agency