Day: November 30, 2021

The global instant noodles market size is projected to reach USD 65.77 billion by the end of 2026. The increasing demand for the product across the world will bode well for the market in the coming years. According to a report published by Fortune Business Insights, titled “Instant Noodles Market Size, Share & Industry Analysis, By Type (Chicken, Vegetable, Seafood, and Others), Ingredient (Oats, Rice, Wheat, and Others), Distribution Channel (Supermarkets/ Hypermarkets, Speciality Stores, Convenience Stores, and Online Retail), and Regional Forecast, 2019 – 2026,” the market was worth USD 41…. Continue reading “Instant Noodles Market Analysis By Key Players, Share, Revenue, Trends, Size, Growth, Opportunities, and Regional Forecast To 2026”

The State Bank of Vietnam (SBV) has extended the credit growth limits for the third time this year to some commercial banks to meet rising capital demands at year-end.

According to a report from the Bank for Investment and Development of Vietnam’s Securities Company (BSC), 11 banks have been given permission to increase their credit growth limit.

TPBank has the highest rising rate of 6 percent, from 17.4 percent to 23.4 percent, thanks to its strong capital adequacy ratio (CAR) according to Basel II standards and diverse investment portfolio.

In addition to TPBank, a number of other banks were allowed to expand their credit room by roughly 4-5 percent, including Techcombank (from 17.1 percent to 22.1 percent), MSB (from 16 percent to 22 percent) and MB (from 15 percent to 21 percent).

Credit room of VIB and VPBank was also expanded from 14.1 percent to 19.1 percent, and from 12.1 percent to 17.1 percent, respectively.

The SBV stated in its monetary policy management solutions for the last three months of the year that it will periodically assess and modify credit growth objectives for each bank based on its operational status, financial capacity and stability of credit expansion.

According to Nguyen Tuan Anh, head of the SBV’s Credit Department, credit growth rates were granted based on the particulars of each bank.

Moreover, banks that do not focus on hazardous and vulnerable businesses, with favourable interest rates are gaining the upper hand in terms of credit quota.

As a result, credit institutions that lower lending interest rates to support affected clients will be given priority consideration.

At the beginning of 2021, the SBV outlined three credit growth scenarios for the year.

The first scenario posits widespread COVID-19 vaccine coverage and the containment of the pandemic. This could see credit increases of 12-13 percent, perhaps even 14 percent.

In the second scenario, if the pandemic lasts until June, social distancing measures are still in place and vaccination rollout is prolonged, the rate could stand at 10-12 percent.

The third scenario suggests that credit growth could be at 7-8 percent if the pandemic lasts through the end of the year.

According to Anh, events so far are most similar to the third scenario as Vietnam suffers from the fourth outbreak of the COVID-19 pandemic.

However, credit growth in the first half of the year was far beyond the SBV’s expectation thanks to modest loan interest rates. As of June 21, the growth rate was 5.47 percent, considerably higher than the 2.45 percent over the same period last year.

The Asia Commercial Bank’s Securities Company forecast credit growth this year to be at 14 percent, equivalent to the highest rate in the best-case scenario, noting that it may even reach 15-20 percent among private banks.

ACB expects that credit demand will stay strong and credit growth will remain high in the second half of 2021, especially during the fourth quarter.

Source: Vietnam News Agency

Minister of Foreign Affairs Bui Thanh Son, officials from the ministries of Public Security and Justice, and some researchers and practitioners of international law in Vietnam are attending the 59th meeting of the Asian – African Legal Consultative Organisation (AALCO) via videoconference.

The Vietnamese delegation delivered speeches which highlight international law, respect for the rule of law at the international level, and support for the peaceful settlement of international disputes.

They also shared the country’s experience in handling external relations, as well as its viewpoints on the codification and progressive development of international law, according to the Foreign Ministry.

The AALCO, comprising 47 member states, is an international inter-governmental organisation established in 1956 in the Non-Aligned Movement of Asia and Africa. It aims to promote dialogue, exchange viewpoints, and enhance cooperation in many areas of international law.

Taking place from November 29 to December 1, this year’s event in Hong Kong (China) focuses on such legal issues as activities of the International Law Commission and international law in cyberspace. It is set to elect the AALCO Secretary-General for the 2021 – 2025 tenure.

Vietnam officially became an AALCO member at this organisation’s 56th meeting in Kenya in 2017 after serving as an observer for a period of time.

Source: Vietnam News Agency

The Ministry of Agriculture and Rural Development (MARD) expects to exceed its annual export target for agricultural, forest and fishery products, thanks to the restoration of production and business after the COVID-19 outbreak.

“This year, MARD has predicted that the export turnover of agricultural, forest and fishery products to reach over 44 billion USD, exceeding its initial target of 42 billion USD,” said Phung Duc Tien, Deputy Minister of Agriculture and Rural Development.

According to the Minister of Agriculture and Rural Development, Le Minh Hoan, there will be many export opportunities for local agricultural products in the fourth quarter of 2021, especially over Christmas and New Year of 2022 and the Lunar New Year.

The European market will be a big destination for Vietnamese agricultural products and strong trade with the Thai, South American, African markets is expected to continue, he said.

“I hope that the Government’s existing policies, along with the initiatives of localities, will encourage exporting enterprises to restore their trading activities,” Hoan said.

To seize opportunities to recovery and increase exports of agricultural, forestry and fishery products by this year-end, MARD will coordinate with ministries and sectors to implement trade promotion programmes that focus on opening new export markets, according to Nguyen Quoc Toan, Director of the Department of Agricultural Product Processing and Market Development.

They will also provide businesses with market information and regulations on goods that are traded between Vietnam and China, and quotas for local agricultural products under the EVFTA and UKVFTA agreements.

This year exports of agricultural, forestry and fishery products have faced many challenges caused by the COVID-19 pandemic. In particular, the fourth outbreak that began in late April led to disruption across the economy, impacting farm produce supply chains, production and export activities nationwide, according to MARD.

The agriculture industry has maintained export growth for many products in both quantity and value. In the first ten months of this year, the export value of agricultural, forestry and fishery products was estimated at 38.8 billion USD, up 13.1 percent over the same period in 2020, the ministry said.

Nudging closer to the target of 44 billion USD in export value for this whole year, the sector’s export turnover reached at least 5.2 billion USD in the last two months, according to the ministry.

This is a great success in the context of the complicated development of the pandemic that has disrupted the supply chains of agricultural raw products, directly affecting the processing and export of agricultural, forestry and aquatic products.

The disruption in the supply chain of agricultural products is due to localities implementing the Government’s regulations on prevention and control of the COVID-19 in different ways, according to Tien.

He also believes that the Government’s goal of recovering economic development may face some difficulties if the pandemic continues to reemerge in new localities.

Agricultural development faces challenges from other areas too; crop and animals diseases, climate change, natural disasters, drought and saltwater intrusion also continue to negatively affect production.

Other problems include the slow recovery of production chains, a lack of labour and the congestion in transporting agricultural, forestry and fishery products. Many processing enterprises are also short of the capital needed to continue production and business. Others have not yet met the material conditions to maintain production.

Higher freight along some routes and an increase in the price of animal feed and fertiliser have also created more difficulties for enterprises.

MARD plans to help restore agricultural development through the Government policies that were issued after the COVID-19 outbreak. MARD and the Ministry of Industry and Trade are coordinating to reduce inventories of agricultural products and ensure supply for the export agricultural products. They will also have solutions to reduce the price of input materials that have increased recently.

“The higher input price in Vietnam is caused by an increase in prices around the world, due to the COVID-19 pandemic. Agricultural input in the country depends on imports, which accounts for 70-80 percent of demand. If imports are interrupted due to transportation difficulties, this will lead to a shortage of input material on the domestic market,” Tien remarked.

The two ministries have recommended that the Government produce policies that encourage the domestic production of input materials and introduce a mechanism that cuts the volume of export commodities that could be used for raw material production in the future.

It has also been suggested that farmers be more conservative with their input materials usage, as often they use more input materials than is needed. If farmers can adapt to using only what they need, it could reduce usage by up to 40 percent.

In addition, to restore supply chains, the agriculture sector has proposed that the Ministry of Health increase the number of vaccines available to industry workers, as farming products must be transported across many regions.

According to Tien: “In the future, Vietnam’s agriculture sector must ensure seeds and input material as well diversifying markets and products. The sector also needs to build raw material areas and supply chains based on enterprises and cooperatives, meeting standards of export markets.”

Dinh Cao Khue, Chairman of the Dong Giao Foodstuff Export Joint Stock Company (DOVECO), an enterprise that exports agricultural products and fruits to 55 countries, said that his company has maintained exports during the fourth outbreak of COVID-19.

“We have faced many difficulties, especially in purchasing and transporting raw materials as many localities have applied social distancing measures to control the pandemic, according to Directive 16,” said Khue.

At the same time, the cost of exporting to the US and European markets continues to rise compared to before the pandemic, which is creating financial pressure on exporting enterprises.

Despite this, Nguyen Dinh Tung, General Director of Vina T&T Group, argues that: “the last months of the year are an opportunity for fruit export, as fruit demand is highest in those months for festivals at the end of the year and the early next year. We hope to increase the volume of exports because of increasing orders from partners.”

Ngo Tuong Vy, Deputy Director of Chánh Thu Fruit Import-Export Co, Ltd, said that to increase capacity to export key fruit products, her company will purchase more mangoes, durian and jackfruit in Dong Thap. These are key export products; mangoes for the US and Australia, jackfruit for China and durian for China, Japan and Australia.

To help meet demand, Vy’s company will support cooperatives in technical consulting, the building of raw material regions and the establishment of production and supply chains to create a stable supply of exports, she said.

Nguyen Hai Nam, Chairman of the Vietnam Pepper Association, said the pepper industry has quickly restored production and business after the COVID-19 outbreak. They expect to gain growth in both quantity and value of pepper exports this year due to convenience in transporting raw materials.

Source: Vietnam News Agency

The US remains a promising market of Vietnam and there remained large room for more exports, Minister Counsellor Bui Huy Son of the Vietnam Trade Office in the US told a consultation session on export to the US held via conference on November 30.

Son said the US is importing more Vietnamese farm produce, food and wooden furniture. Between 2021-2025, its demand for food and farm produce is forecast to keep rising.

In the remaining months of this year, the prospect of exporting wooden furniture to the US is bright on the back of growing shopping demand during holidays, he said.

Deputy Director of the Ministry of Industry and Trade’s Vietnam Trade Promotion Agency Le Hoang Tai said the US economy is recovering strongly with a gross domestic product growth of 4.9 percent in the third quarter this year. Despite the pandemic, two-way trade between Vietnam and the US is about to hit 100 billion USD in 2021.

As online shopping trend is becoming popular, several opinions suggested tapping major e-commerce sites such as Amazon to introduce products. Therefore, firms need to make difference via design or marketing strategies.

In order to help Vietnamese goods successfully enter the US market, they were advised to ensure the origin of materials and step up trade promotion activities.

Experts instructed them how to set up a distribution system, accelerate the use of advanced technologies and actively link up with Vietnamese business associations in US states.

Source: Vietnam News Agency