Month: April 2022

Vietnam’s geography gives it a logistical advantage in boosting production, export and logistics services. This year, the Government has set targets of tapping its full potential.

The comment was made by Deputy Minister of Trade and Industry Nguyen Sinh Nhat Tan at a seminar on “Enhancing competitiveness for logistics businesses”, held in Hanoi on April 28.

Delivering a speech at the seminar, Tan said the Government has identified logistics as an important service industry in the economy. The industry is playing a role in supporting, connecting and boosting socio-economic development, contributing to improving the competitiveness of the economy.

At the seminar, Truong Tan Loc, Marketing Director of Saigon Newport Corporation, said that in April this year the World Bank forecasted the country’s GDP growth to be around 5.3 percent in 2022 and then stabilise around 6.5 percent next year.

Loc said the country’s signed free trade agreements (FTAs) needed to be more proactively implemented for strong growth in domestic industries, especially in electronics, machinery and equipment, furniture, plastic, textiles and seafood. This was an opportunity to develop port and logistics services to serve the needs of connecting goods with major markets in the world.

Sharing the view of Loc, Pham Thi Lan Huong, general director of Vinafco JSC, said Vietnam’s logistics industry has a lot of potential but it is fragmented. She noted the number of small and medium-sized businesses accounted for a majority with 90 percent of them having capital of less than 10 billion VND (434,000 USD).

Currently, the number of businesses providing 3PL (third-party logistics) and 4PL services (fourth-party logistics) remains modest. They account for only 16 percent of the entire logistics industry. Huong said it needed to develop more 3PL and 4PL businesses to push the domestic logistics industry.

Another participant suggested that it was necessary to promote technology application in the domestic logistics industry to improve efficiency and optimise productivity, to save costs for logistics businesses. In addition, a close connection between logistics businesses was also a need to improve operational efficiency involving production, logistics and transport.

At the seminar, representatives of the authorities also pointed out the shortcomings in import and export activities in 2021, and logistics activities in Vietnam.

The Import and Export Report 2021 points out significant problems such as the continued high level of trade deficit or surplus for some markets, which is likely to affect sustainable import and export activities.

The export growth of some commodities is mainly based on the increase in quantity and price due to the scarce supply in the market. Exported goods still face congestion at border gates and seaports, especially from the end of 2021.

In logistics services, although there has been a strong development recorded, the logistics industry still has many limitations. One of them is that logistics enterprises have not yet developed up to the potential of the industry.

According to data from the Vietnam Logistics Business Association, currently, 90 percent of logistics enterprises operating are Vietnamese enterprises. However, they only account for about 30 percent of the market share. The rest belongs to foreign enterprises.

There are many enterprises, but mostly small ones, with limited scale in the capital, human resources and experience.

In the framework of the seminar, the Vietnam Import and Export Report 2021 compiled by the Ministry of Trade and Industry was also announced, highlighting the positive points in international trade activities. Despite many difficulties due to the COVID-19 pandemic, the country’s import and export still reached a record number with a total turnover of 668.55 billion USD. While, exports reached more than 336.3 billion USD, up 19 percent compared to 2020; imports reached 332.2 billion USD, up 26.5 percent; trade surplus of more than 4 billion USD.

With this result, Vietnam has entered the top 20 economies in terms of international trade. The export structure has changed positively, and the area of export products is diversified.

The group of processed products continues to be the driving force for the overall growth of exports. Vietnam has also made efforts to diversify export and import markets to meet the needs of domestic production and consumption.

Deputy Minister of Industry and Trade Tan passed comments on the results achieved in import and export activities in 202 and international trade activities of Vietnam.

Total import and export turnover of goods from 2010 up to now has increased 4.25 times up from 157.1 billion USD in 2010 to 668.5 billion USD in 2021. He said that the positive result was thanks to the contribution of the logistics service.

“During the COVID-19 pandemic, despite many difficulties, Vietnamese logistics enterprises have adapted and maintained their supply chains. They have supported other enterprises in finding solutions to optimise logistics activities, saving costs and time.

They propose the State’s strategic issues, contributing to maintaining and stabilising the supply chain and improving the competitiveness of Vietnamese goods and businesses. Businesses also make efforts to modernise technology to improve service quality and diversify services to overcome difficulties,” said the Deputy Minister.

Source: Vietnam News Agency

Deputy Prime Minister Le Van Thanh on April 14 signed Decision No. 461/QD-TTg approving a planning scheme for the Central Highlands through 2021-2030, with a vision to 2050.

The planning aims to concretise socio-economic orientations, tasks, targets and solutions for the region, as set in the 2021-2030 socio-economic development strategy.

Accordingly, the Central Highlands will increase plantations of industrial trees and medicinal plants, form linkage chains in production, processing, preservation and distribution, and build brands for its products in the international market.

Attention will be paid to forest-based economic recovery and development, renewable energy and the development of major tourism centres.

Other targets include human resources development, the preservation and restoration of traditional values, the building of expressways, and upgrades to the transport network.

The Central Highlands will also work harder to safeguard political security, social order and safety, and national defence and security.

The scheme also includes the development space of sectors in the Central Highlands as mentioned in the national plans.

It will serve as a database for other provincial and urban plans.

The planning sets out orientations, tasks and solutions to speed up the implementation of strategic breakthroughs to utilise the region’s advantages in terms of geo-economy, helping it further integrate into the world. It is also expected to facilitate the development of localities in the region.

It will be rolled out in line with the Law on Planning and Government Decree No. 37/2019/ND-CP dated May 7, 2019 stipulating the execution of a number of articles in the Planning Law.

Specific targets in socio-economic development, national defence and security, infrastructure development, and the use and protection of natural resources are included in the scheme.

The decision came into force on April 14.

Source: Vietnam News Agency

President Nguyen Xuan Phuc and many military and government officials attended a flag-hoisting ceremony held by the central province of Quang Tri at the local Hien Luong – Ben Hai special national monument on April 30 to mark the 46th anniversary of the Liberation of the South and National Reunification Day.

President attends Quang Tri’s flag-raising ceremony marking Reunification Day hinh anh 2

The event also drew the participation of heroic mothers, war veterans, locals, and tourists.

After the ceremony, a military parade and a boat race on Ben Hai River took place, among other activities.

President attends Quang Tri’s flag-raising ceremony marking Reunification Day hinh anh 3

Quang Tri was one of the most heavily bombed areas during the anti-US resistance war. It was also renowned for the fierce 81-day-and-night battle at the ancient Quang Tri Citadel.

The local Hien Luong Bridge crosses Ben Hai River, which divided the North and the South of Vietnam after the signing of the Geneva Accords in 1954. Though the river is just over 100m wide, it took 21 years for Vietnamese on the two banks to be united. The river and the bridge witnessed the Vietnamese people’s fierce but glorious struggle against foreign invaders, reflecting their desire for and belief in victory and peace.

Also on April 30, President Phuc attended a ceremony to kick off the 481ha Quang Tri Industrial Park project. Located in Dien Sanh township and the communes of Hai Lam and Hai Truong, the project costs more than 2.07 trillion VND (90.14 million USD) and is set to operate for 50 years.

Source: Vietnam News Agency

Australia has been a long-term partner of Vietnam in the Mekong Delta, affirmed Australian Ambassador Robyn Mudie during a recent interview with the Vietnam News Agency (VNA).

The ambassador expressed her delight to be back to the Mekong Delta, following her visit in December 2020, saying it’s a wonderful opportunity for her to reconnect with the people and the environment in the region, and to see some of the chances that have been taking place in the past year.

She noted that Australia has invested 650 million AUD in projects in the region since 2000 like Cao Lanh and My Thuan bridges, along with others in agriculture and climate change adaptation.

“At the moment, we are focusing on projects which look at maintaining productivity and environmental resilience because we know that this is vital to the Mekong Delta’s ability to adapt to a changing climate, and to preserve food security, sustainability and development in the future,” the diplomat said.

She added that Australia has a number of interesting projects underway, including one connecting aquaculture farmers to enhance productivity and profitability, helping them maximise productivity.

Another is in the Tram Chim National Park in Dong Thap province, she said, further explaining that it is informed by the AI and high technology solutions, which are geared to supporting sustainable environmental management in the park.

The ambassador also highlighted the Mekong-Australia Partnership, worth 232 million AUD over four years across all Mekong countries, and support through the Australian Centre for International Agricultural Research (ACIAR), which has been focusing on the Mekong Delta for almost 30 years, and collectively invested 23 million AUD in 20 collaboration projects.

Australia – Vietnam’s long-term partner in Mekong Delta: Ambassador hinh anh 2

Mekong Delta provinces have been working together on shared solutions to climate change. (Photo: VNA)

Asked about Vietnam’s efforts in climate change response, Mudie said Mekong Delta provinces have been working together on shared solutions, and commended the Vietnamese government’s decision to introduce an integrated response plan for the Mekong Delta’s development.

“This will be really important to connect government, business and community so that all can work together to identify where the challenges are and to work out sustainable and shared long-term mitigation strategies,” she said.

The ambassador expressed a hope that the government will take forward its plan for an integrated response, stressing that Australia will look for opportunities that match its existing support once the plan is adopted.

Source: Vietnam News Agency

Several key construction materials have seen a sharp price hike during the first three months of 2022, putting significant pressure on property prices, according to the Vietnam Association of Construction Contractors (VACC).

VACC said prices for concrete and sand have increased by 100,000 VND (4.4 USD) per tonne or per cubic metre, bricks by up to 10 percent and decorative tiles by 10-15 percent.

Notably, since the beginning of the year, steel prices have increased to over 19 million VND per tonne after seven price hikes.

VACC President Nguyen Quoc Hiep said rampant price hikes had hit contractors the hardest as they could no longer maintain a profit margin as input prices increased.

“I’m not confident that most contractors can hold out for much longer. There have been many who were forced to exit the market as prices kept rising while investors kept delaying payment,” said Hiep. “I’ve seen contractors going into the red because they didn’t receive their payments in time due to their overwhelming financial obligations.”

Hiep said the average construction price for low-rise buildings had increased by 50 percent. By his estimation, newly signed contracts must readjust construction costs by a 20-25 percent increase.

Nguyen Thi Thanh Huong, Director General of Dai Phuc Land SJC, said rising petrol prices were another factor that has driven prices up for contractors since the beginning of 2022. However, it’s difficult to predict how much impact it will have on property prices.

Huong said the rising costs would likely hurt property developers, especially those who failed to sign long-term contracts with suppliers and contractors. She said developers might be forced to increase their prices sometime in the second or third quarter this year.

In a recent report, the Ministry of Construction said construction material prices are likely to keep going up in line with the global trend in the near future. The ministry said while supply remained ample for current demand, the rising cost has forced suppliers to increase their prices. The report said Vietnam’s total concrete output stayed at over 106 million tonnes per year and could hit over 122 million tonnes if needed.

Source: Vietnam News Agency

Vietnamese national squads are working hard with a high determination for the best achievements at the upcoming 31st Southeast Asian Games (SEA Games 31), which will begin in about two weeks.

In more than two years, the sport sector in general suffered the COVID-19 blow. Most of the teams were unable to train and compete abroad.

When the pandemic outbreaks were at their peaks across localities, drastic and suitable directions were promptly made. Currently, the situation has been placed under control, with normal activities resumed.

According to head coach Pham Anh Tuan of the national fencing team, significant efforts were made to keep all members of the squad free from the novel coronavirus during 2019 – 2021.

It was a really hard process; and there were “closed” phases when coaches and athletes practiced together in an almost completely closed environment, he added.

Tuan said to prepare for SEA Games 31, the fencing team currently has 24 outstanding members to compete in 12 events towards the goal of winning at least three gold medals.

Meanwhile, the coach of the national women’s wrestling team, Nguyen Huy Ha, said the athletes are practicing advanced technique – tactic exercises and are in a stable psychological state. The six-member squad is eyeing 4-5 gold medals, Ha noted.

According to head coach of the national Taekwondo team Vu Anh Tuan, the team recently trained in the Republic of Korea for a month, then returned to Ho Chi Minh City to attend a tournament.

Currently, they are practicing hard towards SEA Games 31, targeting at least three gold medals, Tuan said.

SEA Games 31, themed “For a Stronger South East Asia”, will be held in the capital city of Hanoi and 11 neighbouring provinces and cities from May 12 to 23.

Featuring 40 sports with 526 events, it is expected to attract around 10,000 participants. The biennial event was initially slated for late 2021 but delayed due to the COVID-19 pandemic.

Source: Vietnam News Agency

National Assembly Chairman Vuong Dinh Hue has asked the Mekong Delta province of Tra Vinh to mobilise all resources to successfully implement its strategy on agriculture, farmers and rural areas, towards eco-agriculture, modern rural areas and smart farmers.

Speaking at a ceremony marking 30 years of Tra Vinh’s re-establishment on April 29, the top legislator said Tra Vinh needs to continue with the implementation of Party resolutions.

The province’s planning scheme should match that of the Mekong Delta and the country at large, he stressed, urging the locality to soon become a centre of clean energy, especially renewable energy, in the region.

Collective economy needs to be enhanced with new-style agricultural cooperatives playing the core role, the NA Chairman emphasised.

He also asked Tra Vinh to step up administrative reform, improve its business environment, boost investment promotion and intensify regional and sub-regional connectivity to tap its potential and strength, particularly in marine economy.

Economic development should go closely with socio-economic development, he said, underlining the need for the locality to raise the quality of education-training and pay more heed to social welfare, environmental protection and poverty reduction.

The leader mentioned other tasks regarding national defence and security, and Party and political system building.

On behalf of Party and State leaders, the NA Chairman presented first-class Labour Order to the Party organisation, authorities and people of Tra Vinh.

Source: Vietnam News Agency

The number of Vietnamese labourers aged from 15 reached some 51.2 million in the first quarter of this year, up 200,000 as compared with the same period last year, according to the General Statistics Office (GSO).

Of the figure, 50 million people have got jobs, up 132,200 year-on-year, with those working in the service sector making the largest share (38.7 percent), followed by industry and construction (33.5 percent), and agro-forestry-fishery (27.8 percent).

The office said the programme on socio-economic recovery and development in line with Resolution No. 11/NQ-CP with specific measures has warmed up the labour market in the first three months.

Meanwhile, around 1.3 million people were unemployed, down 135,200 from the previous quarter.

Living standards of labourers have been improved and their average income has been restored significantly.

The Business Registration under the Ministry of Planning and Investment said despite severe impacts of the COVID-19 pandemic, business operations have bounced back since December 2021 thanks to the Government’s flexible measures in response to the pandemic.

ILO Vietnam Labour Economist Valentina Barcucci said in 2000, 65.3 percent of the employed labour force was in agriculture. Twenty years later, those two-thirds fell to a little more than one third (37.2 percent). That additional third is roughly split between services and industry.

While in 2000, agriculture was by far the biggest employer in the country, today services and agriculture are virtually equal (37.3 and 37.2 percent respectively), followed closely by the industry sector (25.5 percent of employment).

Vietnam sees increasing workforce quality hinh anh 2

Between 2010 and 2020, the Human Capital Index (HCI) value for Vietnam increased from 0.66 to 0.69. (Photo: VNA)

The low value-added manufacturing that accounts for most of the current FDI has been instrumental to fuel economic growth. To secure further economic development, a higher value-added industry, more innovation and a higher-skilled labour force are necessary.

The country will need a new growth model to move out of the risk of a lower middle-income trap and achieve modernisation, industrialisation, as well as sustained growth. This calls for a modernized labour market too, she said.

Labour productivity of the whole economy at the current price is estimated at 171.3 million VND (7,398 USD) per worker, 538 USD higher than that of 2020. The labour productivity in 2021 increased by 4.71 percent due to improved qualifications of workers with the proportion of trained workers with degrees and certificates in 2021 reaching 26.1 percent, higher than the 25.3 percent of 2020.

The productivity, however, is still much lower than that in other countries in the region like Singapore, Malaysia, Thailand and Indonesia, said Bui Quang Tuan, Director of the Vietnam Institute of Economics.

According to the World Bank (WB), between 2010 and 2020, the Human Capital Index (HCI) value for Vietnam increased from 0.66 to 0.69, higher than the average of the countries that have the same income with Vietnam.

Vietnam is one of the countries in East Asia-Pacific that have the highest HCI, reflecting its great achievements in education and health care over the past years, the bank said.

Source: Vietnam News Agency