Vietnam Newswire

Hanoi: The 2023 export performance is anticipated to serve as a catalyst for the rice sector, enabling it to explore new markets, strengthen the reputation of Vietnamese rice, enhance national food security, and foster sustainable production and exports in the future. Deputy Minister of Agriculture and Rural Development Phung Duc Tien forecasts a potential 11% year-on-year surge in rice export volume in 2023, reaching over eight million tonnes for Vietnam. The year 2023 is full of difficulties for rice export as geo-political conflicts in the world have disrupted food and input material supply. The El Nino phenomenon, which poses a risk of contraction in food production, has triggered some countries' concern over supply for domestic demand. The suspension of grain export by countries such as India, the UAE, and Russia has also caused big supply pressure, thus mounting concern in the global food market. However, as a leading exporter of farm produce, particularly rice, Vietnam has still managed to guarantee national food security and export growth. Facing complex developments in the rice market, the Prime Minister on August 5 issued a directive ordering national food security to be firmly ensured and sustainable rice production and export promoted in the current period. He has also assigned the Ministry of Industry and Trade to coordinate with relevant agencies to carry out rice trade promotion programmes appropriate to the new situation to improve Vietnamese rice's value. They were also asked to capitalise on preferential treatments under the free trade agreements to which Vietnam is a party to diversify markets and better the competitiveness of the Vietnamese grain. Under the strategy on developing rice export markets of Vietnam until 2030, agricultural authorities are ordering localities and key rice farming zones to conduct restructuring to produce more quality grain for export and raise the added value. Though domestic rice supply is low at present, there are still grounds to anticipate that this year's export volume will surpass eight million tonnes. About 7.75 million tonnes of rice worth 4.4 billion USD were exported during the first 11 months of 2023, rising 36.3% year on year, the Ministry of Agriculture and Rural Development reported, attributing the surge to a 17.3% increase in the average export price to 568 USD per tonne. Export prices now average 663 USD per tonne as a result of high demand, it said. In addition, the quality of Vietnamese rice in the global market has also been further affirmed after the ST25 variety once again obtained the 'World's Best Rice' title recently. Vu Van Dong, General Director of the Dai Duong Investment and Trade JSC, perceived that high prices form an advantage but also pose a risk to Vietnamese rice. Businesses can export much and earn big as India, the world's biggest rice exporter, is suspending overseas shipments of the grain. However, to those keeping large stockpile, if they do not make right assessments and proper preparations, they will face difficulties once India or China changes its policy, he pointed out. Businesses hope that rice prices in the winter - spring crop will stay high to benefit farmers. Meanwhile, export prices in the further future may decline but are unlikely to fall sharply, possibly to about 600 USD per tonne, Dong added./. Source: Vietnam News Agency

Hanoi: The Ministry of Finance (MoF) plans to implement several policies to support the business sector and people, and promote the country's economic growth in 2024, according to Minister Ho Duc Phoc. Initially, the ministry will focus on effectively implementing the policy to reduce the value added tax (VAT) by 2% as applied in 2023 on a number of goods and service groups subject for 10% VAT that was approved by the 15th National Assembly at its 6th session, the minister told the Vietnam News Agency. He said that the ministry will submit to the Government a proposal to issue a decree detailing the 2% VAT reduction policy, thus promptly bring the policy into life. The cost for this policy is estimated at 25 trillion VND (1.02 billion USD). At the same time, the ministry will propose the NA Standing Committee to continue to apply the policy to reduce the environmental protection tax rates on gasoline, oil, and lubricants as applied in 2023, said the minister, adding that this policy may cause a drop of abo ut 42.5 trillion VND in the State budget. The MoF also plans to issue a circular on fees and charges to encourage the use of online public services with a reduction from 10% to 50%, expecting to provide support to the people and businesses with about 100 billion VND per year, he said. Besides, the MoF will continue to speed up all-round reform and modernisation, while coordinating with relevant agencies to review export and import tax rates to support domestic production and business activities, and creating a favourable and equal business and investment environment, ensuring the sustainability of the economy, said Phoc. The minister underlined that in 2024, the financial sector's tasks are heavy, including State budget collection of 1.7 quadrillion VND, State budget expenditure of 2.1 quadrillion VND and State budget deficit of 399.4 trillion VND, equivalent to about 3.6% of the country's GDP. This requires the sector to ensure the proper deployment of fiscal policies to promote economic growth, ensure ma cro-economic stability, rein in inflation and protecting the national financial safety at the same time. Therefore, the level of policy relaxation needs to be carefully calculated and considered to achieve the above goals, in which, macroeconomic stability and inflation control are still considered top priorities, said Phoc. The ministry will strive to give accurate forecasts on the world and domestic situation on fiscal policy. It will also look at legal policies regarding State budget collection and spending, ensuring a stable financial sector, and strictly handle violations, he said. The minister stressed that in the coming time, the ministry will concentrate on implementing finance-budget tasks during the upcoming Lunar New Year, making sure that production and business activities are implemented smoothly before, during and after the holidays./. Source: Vietnam News Agency

Hanoi: The Ministry of Industry and Trade (MoIT) aims to increase total export turnover in 2024 by about 6% compared to 2023 and maintain a trade surplus of about 15 billion USD for the ninth consecutive year. To reach this target next year, it is forecast to face many difficulties and challenges as the export value target in 2023 has not been completed. Specifically, the export value in 2023 is estimated to reach about $355 billion, down 4.5% over the same period last year. It does not reach the planned growth target of 6%. According to the ministry, along with taking full advantage of existing free trade agreements (FTAs), FTAs with new markets such as Israel and the UAE will create more opportunities to promote trade and investment, especially exports, of Vietnam in 2024. Good political relations have been strengthened and upgraded with major partners such as China, the US and the EU, creating a premise for expanding economic, trade and investment cooperation. Now, a number of Vietnam's key export ind ustries have set growth targets for 2024. Truong Van Cam, vice chairman and general secretary of the Vietnam Textile and Apparel Association (VITAS), said that with 2023 export turnover reaching 40.3 billion USD, the industry sets an export target of 2024 to reach 44 billion USD, an increase of 9.2%. The seafood industry sets an export target of 9.5 billion USD despite predicting that this industry will continue to face many difficulties in 2024, especially the European Commission (EC) maintaining a yellow card warning for exploited seafood products in Vietnam. The Ministry of Industry and Trade believes that by 2024, the world and domestic economic situation will have more positive factors for import and export activities. Of which, the US Federal Reserve (FED) has issued a message to stop raising interest rates and consider reducing interest rates in 2024. However, the ministry has also noted the trend of having more and more trade protection. Some countries bring investment back home, and erect trade barriers to protect and promote their country's production. Therefore, Nguyen Cam Trang, deputy director of the MoIT's Import-Export Department, emphasised that to achieve the export growth target of 6% next year, the ministry will promote negotiations and signing of new agreements, commitments, and trade links, sign FTAs and trade agreements with other potential partners, such as the UAE and South America, to diversify markets, products and supply chains. The Import-Export Department will continue to support the businesses to take advantage of commitments in the FTA to boost exports, and shift to official exports associated with brand building. Trade promotion is one of the important activities to promote export growth. Therefore, the Department of Trade Promotion in 2024 will exchange and coordinate with localities, industry associations and businesses to evaluate the export situation and support them to develop markets and promote the consumption of goods. In addition, the Department of Trade Promot ion will regularly update policies and changes in standards and conditions of export markets so that businesses and industry associations can understand and have suitable plans and strategies for production and business. For the textile and garment industry, to achieve the export target of 44 billion USD, Cam said VITAS will promote solutions on market, human resources, science - technology and raise capital, and investment in sustainable development. The textile and garment industry will continue to diversify its supply of raw materials and accessories as well as expand export markets, by improving marketing capacity and seeking for direct customers, Cam said. Currently, requirements on green and sustainable economic development are gradually forming new rules in the trade. Many economies around the world have set stricter environmental regulations for imported goods. Green export is an inevitable trend, so Vietnam is not out of this game. VITAS representative also hopes support in interest rate will be implemented faster to create favourable conditions for the businesses in expanding production and having more resources for green transformation according to new regulations of the world market. Meanwhile, Trang proposed the MoIT to have supports for the businesses to overcome new trade barriers in import markets. The ministry will support for them in the development and implementation of large-scale trade promotion activities for key products and industries in target markets, she said. Minister of Industry and Trade Nguyen Hong Dien said that Vietnam trade offices abroad need to provide information about the market and new regulations and policies of the host country. Thereby, they have early warning of new barriers from partners, help State management agencies and the businesses to have appropriate policy responses, and improve efficiency in export activities. Economic expert Dr Can Van Luc said that in addition to reduced export orders, many businesses face difficulties because the supply chain is sti ll risky and input costs are high. In particular, the trend of greening and circular business is a big challenge for the enterprises. Therefore, the enterprises need to diversify capital sources, markets, partners, and supply sources. They also need to proactively apply green production, green consumption, and circular business models to improve efficiency in production and export./. Source: Vietnam News Agency

Hanoi: Deputy Prime Minister Le Minh Khai on December 27 asked the Ministry of Finance (MoF) to effectively put in place issued policies and those expected to be adopted in order to untangle knots facing businesses, control inflation, and spur socio-economic recovery and development, thus achieving the targets set for 2024. The Deputy PM made the request while addressing a conference reviewing the monitoring over the implementation of finance-state budget tasks in 2023, and putting forth tasks for next year, during which he lauded the ministry's performance over the past time. He urged the ministry to quickly roll out action plans and programmes, and take drastic actions right in early 2024 to materialise the socio-economic development plan in 2024, and state budget estimate, as well as the Government's instructions. The ministry needs to focus on building and perfecting finance-state budget institutions and policies, and speed up the building of digital government, while continue studying and proposing ad justments and supplements to duty laws and regulations, Khai said. The Deputy PM reminded the MoF to pay more heed to state budget collection management, and suggested it optimise science-technology in the work. He also asked the chairpersons of provincial and municipal People's Committees to closely supervise the implementation of finance-budget solutions, saying localities should coordinate with tax and customs agencies and seriously follow regulations relating to the use of electronic invoices, thus preventing revenue losses. According to a report presented at the meeting, as of December 25, state budget revenue surpassed 1.693 quadrillion VND (nearly 69.5 billion USD), up 4.5% compared to the yearly estimate. Meanwhile, the total state budget expenditure in the year stood at about 1.73 quadrillion VND or 83.4% of the estimate. The Deputy PM lauded the financial sector for promoting e-government building, streamlining the apparatus, stepping up inspections and supervisions, and implementing policies t o remove difficulties for businesses./. Source: Vietnam News Agency

Hanoi: The forestry sector is set to harvest 17.5 billion USD from exports and 23 million m3 of wood from planted forests in 2024, Trieu Van Luc, Deputy Director of the Forestry Department under the Ministry of Agriculture and Rural Development, has unveiled. Luc revealed the targets at the department's conference on December 27, which reviewed the sector's performances this year and outlined development orientations for 2024. He stressed that the sector is committed to developing sustainable forestry economy and leveraging the multifaceted value of forest ecosystems through efficient resource management and use. It plans to protect and sustainably develop 100% of the existing forest area, while steering towards green, sustainable, and circular production practices. Another goal is to promote diverse forms of collaboration in the forestry production and business chain. The department reported an estimated forestry product export value of 14.39 billion USD this year, down 15.8% year-on-year. This decline wa s attributed to market instability influenced by the political conflict between Russia and Ukraine, coupled with tightened consumer spending on non-essential products, including wood, in the US and the EU. In 2023, Vietnam's forestry sector saw an important milestone as procedures were successfully completed to transfer a reduced carbon emission volume of 10.3 million tonnes to the Forest Carbon Partnership Facility (FCPF) through the World Bank (WB). The deal, valued at 5 USD per tonne of CO2, amounts to 51.5 million USD. The Vietnam Forest Protection and Development Fund has already received an initial payment of 41.2 million USD from the WB and promptly disbursed the entire amount serving the urgent payment planning for forest owners in the six north-central provinces of Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, and Thua Thien-Hue. The sector has also faced challenges in 2023 due to the El Nino phenomenon, resulting in unusual weather conditions and high risks of forest fires. Meanwhile, illeg al deforestation, trading, and transport of forestry products have been catalogued across various localities. However, with significant efforts, the sector strived to maintain a forest coverage rate of 42.02%./. Source: Vietnam News Agency

Hanoi: The Ministry of Transport has recently issued a circular on seaport services fees, including cargo loading and unloading fees. Accordingly, the fees range from 260,000 VND (10.67 USD) to 427,000 VND for each domestic 20-foot container, from 439,000 VND to 627,000 VND per 40-foot container, and from 658,000 VND to 940,000 VND per more than 40-foot container. The fees for imported, exported, temporarily imported and re-exported containers are between 23 USD and 81 USD, depending on the types of container. For oversized and overloaded cargo containers, and those with dangerous goods, or special loading, unloading, and preservation requirements that incur additional costs, the applicable fees will not exceed 150% of the prescribed price bracket. Circular No. 39/2023/TT-BGTVT will take effect from February 15, 2024, applicable to Vietnamese organisations and individuals and foreign organisations and individuals related to the provision and use of services at Vietnamese seaports. According to the Vietna m Maritime Administration (Vinamarine), Vietnam's container loading and unloading charges remain lower than the regional average. Vinamarine's statistics show that the loading and unloading charges at deep-water seaports in Vietnam are equivalent to just 59% of those in the ASEAN region and neighbouring countries, and 85% of Phnompenh Port, Cambodia - an inland port with a lower investment value. Increasing container handling fees, a major part of terminal handling charges (THCs), is reasonable to help ports secure resources for reinvestment, expansion, and enhancing service quality, according to Vinamarine./. Source: Vietnam News Agency

Hanoi: The Vietnam News Agency's Economic News Department has selected the top ten noteworthy events that shaped the country's economic landscape in the year 2023. 1. Vietnam emerges as beacon of economic recovery Despite falling slightly short of the year's set target of 6.5%, Vietnam's 5% GDP growth has been assessed by international financial institutions as outperforming many economies given the ongoing global economic downturn. Factors contributing to the country's economic recovery included record-breaking exports, public investment disbursement efforts, the highest FDI since 2020, and a rebound in domestic services. Major media outlets have acknowledged Vietnam's growth efforts, positioning it as an attractive trade partner and investment destination. 2. Politburo issues resolution on harnessing Vietnamese entrepreneurs' role in new era On October 10, the Politburo issued Resolution No. 41-NQ/TW, outlining ways to build and leverage the role of Vietnamese entrepreneurs in the new era. As the second resolution of its kind focusing on the group in the past 12 years, it highlighted seven key tasks and solutions to develop capable entrepreneurs and a group of globally recognised businesses that lead some global supply and value chains. 3. Record public investment disbursement The country's public investment disbursement is estimated to reach an unprecedented value of over 461 trillion VND (19 billion USD), the highest to date. This achievement is attributed to the relentless efforts of the Government, ministries, and local authorities in addressing administrative hurdles and streamlining procedures. Swift and efficient disbursement of public investment has become a vital driving force, propelling rapid and sustainable economic growth in the upcoming period. 4. Eighth consecutive year of trade surplus 2023 has marked the country's eighth consecutive year of trade surplus with an impressive figure of about 26 billion USD, nearly tripling that of 2022. Various agricultural product groups have capitalised o n export opportunities, with more than 8 million tonnes of rice sold overseas for over 4.4 billion USD, the highest value since 2009. The favourable export structure has facilitated deeper integration of Vietnamese goods into global production and supply chains, and the trade surplus has contributed positively to the balance of payments, thus increasing foreign currency reserves and stabilising exchange rates. 5. Putting into operation 475 km of new highways in a single year The completion of 14 key transportation projects, including components of the North-South Expressway - Phase 1, extending the total length of the country's expressways to 1,892 km. This achievement aligns with one of the three breakthroughs outlined in the nation's socio-economic development strategy for 2021-2030. 6. Central bank's unprecedented consecutive policy interest rate reductions In an unprecedented move, the State Bank of Vietnam (SBV) has made four consecutive reductions of policy interest rates from March to June by 0.5-2 percentage points per annum. This flexible measure served as a foundation for credit institutions to lower lending rates, thus aiding economic recovery and growth. 7. National Power Development Plan VIII approved After years of preparation, review, and revision, on May 15, 2023, the Prime Minister signed Decision No. 500/QD-TTg approving the National Power Development Plan VIII for 2021-2030, with a vision to 2050. This plan has opened up new space for Vietnam's sustainable and just energy development, aligning with the Party's and State's guidelines and policies and the country's practical capabilities. 8. Unprecedented policies released to support real estate market The Government and various ministries and agencies have introduced unprecedented legal and financial mechanisms to remove legal and financial hurdles for and recover the real estate market. Notable among these are the Government's Resolution No. 33/NQ-CP, outlining measures to promote a safe, healthy, and sustainable realty market, and Decre e No. 10/2023/ND-CP amending and supplementing some articles of decrees guiding the implementation of the Land Law, as well as an initiative to invest in constructing at least one million social housing units for low-income individuals and industrial zone workers between 2021 and 2030. 9. Coordination to rectify vehicle registration Widespread irregularities related to corrupt practices by certain personnel in the vehicle registration and inspection sector were uncovered on a broad scale. At the peak of the crisis, 106 out of 281 motor vehicle registration centres across the country were forced to suspend operations. This marked the first occurence of long queues of cars and trucks waiting for registration, adversely affecting citizens, transport businesses, and logistics activities. The Government, relevant ministries, and law enforcement agencies had to collaboratively address the issue, with the Ministry of Transport proposing the involvement of the police and military forces to support the registration of civilian motor vehicles. On June 8, the Government issued Decree No. 30/2023/ND-CP, amending and supplementing some provisions of Decree No. 139/2018/ND-CP dated October 8, 2018 regarding the business of motor vehicle registration services. 10. Tightening monitoring of 'mini apartments' construction The tragic September 12 fire incident at a "mini apartment" complex on Hanoi's Khuong Ha street resulted in 56 fatalities and 37 injuries. This catastrophe rang the alarm about lax construction management in urban and residential areas. Following the direction of the Prime Minister, authorities at all levels and relevant sectors conducted a comprehensive review to rectify and tighten construction management and take urgent measures to prevent and control fires in apartment buildings, multi-unit residences, and rental housing facilities./. Source: Vietnam News Agency

HCM City: The Sai Gon Railway Transport Joint Stock Company (Saratrans) has initially added 3,000 tickets for the Lunar New Year (Tet) holidays - the biggest festival in a year of Vietnamese people. These tickets are being on sale from December 26 on all channels of the railway sector. They are for passengers travelling from Sai Gon station (Ho Chi Minh City), Di An (Binh Duong) and Bien Hoa (Dong Nai) in the south to stations from Quang Ngai province in the central region to Hanoi capital city and vice versa, from January 31 to February 19, 2024 (the 21st day of the last lunar month to the 10th day of the first lunar month). Previously, the railway sector planned to provide over 200,000 seats on 390 trains for the Tet holidays. Saratrans general director Thai Van Truyen said that after more than two months on sale from October 20, over 130,000 tickets have been sold./. Source: Vietnam News Agency