Day: March 5, 2024

Hanoi: Solutions should be taken to create stable material areas to promote sustainable development of the wood industry, insiders have said. Vietnam's forest coverage rate is set to reach 42-43%, while the forest production value is expected to increase by 5-5%, according to the forestry development strategy for the 2021-2030 period. Under the strategy, the country aims to earn 23 - 25 billion USD from exporting forestry products, and grow 1 million ha of big timber forests nationwide by 2030 to form sustainable raw material zones for the wood processing industry serving export and domestic consumption. According to businesses, although the timber supply currently meets over 70% of the demand for processing wood for export, the stability and sustainability remain low due to the insufficient quality of planted trees. The Ministry of Agriculture and Rural Development (MARD)'s Forestry Department said that localities are facing difficulties in afforestation efforts, particularly in planting high-quality big timber forests, due to the small-scale planning land plots, fragmentation in many areas, and dispersed rather than contiguous regions. Due to the scarcity of supply from planted forests, wood processing enterprises are facing many difficulties in purchasing raw materials. To address this situation, enterprises are advised to promptly develop cooperative development plans along the forestry product value chain, and promote collaboration models between enterprises and growers granted sustainable forest management certificates in localities. These are important prerequisites for promoting stable and sustainable development of the wood industry, thus meeting the demand of the markets. Insiders said, to quickly address the shortage of wood materials, there is no better solution than developing high-quality production forests and sustainably certified forests by international and domestic authorised organisations. Statistics from the Forestry Department showed that the forest area nationwide has increased quit e rapidly, curently standing at about 14.74 million ha, with planted forests accounting for 4.57 million ha or 31%, and natural forests marking up 10.17 million ha or 69%. Apart from providing jobs for millions of farming households, planted forests have become the main source of supply for the wood processing industry and exports. Many localities have focused on developing big timber forests, improving productivity and quality of forests associated with promoting sustainable forest management and increasing the area of certified forests, thus providing legal and quality materials for processing, and increasing incomes for forest growers. To realise the forestry development strategy in the 2021-2030 period, the MARD devised several measures in its plan, including reviewing the land reserves and big timber forests eligible for development, connecting forest growers with businesses, and promoting sustainable forest management and forest certification. It will also step up the development of high-yield and h igh-quality plant varieties that meet the market's demand and are resistant to diseases and adverse environmental conditions to use for afforestation. Favourable mechanisms and policies such as exempting or reducing land rent and land use tax, supporting investment, and providing soft loans to attract private resources to developing big timber forests./. Source: Vietnam News Agency

Hanoi: The revenue of products sold through online business-to-consumer (B2C) retail model is forecast to surge in the coming time and reach 650 trillion VND (26.31 billion USD) in 2024, according to the E-Commerce and Digital Economy Agency under the Ministry of Industry and Trade (MoIT). Commenting on e-commerce growth in recent years, the agency noted that in 2018, B2C revenue reached 10.8 billion USD, which was raised to 11.8 billion USD in 2020 and 16.4 billion USD in 2022. In 2023, the figure hit 20.5 billion USD, accounting for 7.8-8% of the country's total retail sales of goods and revenue from consumer services in the year. A report on online retail market in 2023 released by e-commerce data platform Metric showed that 2.2 billion products were successfully delivered through five major e-commerce platforms in Vietnam, namely Shopee, Lazada, Tiki, Sendo and Tiktok Shop, a surge of 52.3% over 2022. The e-Conomy SEA 2022 report by Google, Temasek, and Brain and Company, Vietnam was one of the coun tries recording highest e-commerce growth. The B2C revenue and sales volume in Vietnam are predicted to continue uptrend, with the five leading e-commerce platforms expecting to earn 310 trillion VND in 2024, representing a year-on-year growth of 35%. However, experts held that e-commerce activities in Vietnam have still faced many challenges. Do Huu Hung, CEO of Accesstrade Vietnam, said that the e-commerce market in Vietnam has formed systems of service supply to the market, including basic technologies assisting e-commerce transactions, safe e-payment systems, marketing services, online marketing, and delivery services. The connections and sharing of the services have helped optimise the linkage between manufacturers and consumers. The establishment of a sustainable ecosystem will be a foundation for e-commerce to continue expanding in 2024. However, Hung said that issues related to origin of products, private information safety, logistics infrastructure serving e-commerce activities yet to catch up wi th the growth of the market, as well as customers' confidence are still challenges that Vietnam need to address in order to promote the development of e-commerce in the future. Experts underlined the need for the joint efforts of ministries and sectors in designing strategies and measures to boost e-commerce, including protecting customers' interests, promoting green and sustainable development, and narrowing gaps among localities and regions through digital platforms./. Source: Vietnam News Agency

Hanoi: After a quiet year in 2023, many banks will promote stock offering to foreign investors again and some of them may complete the deals this year, analysts forecast. In an analysis report released recently, Vietcap Securities Company (VCSC) said with predicted faster economic growth in Vietnam by 2024, capital raising activities will be stronger from the second half of 2024. Notably, Vietcombank, BIDV and LPBank are expected to mobilise new capital through private placement with an estimated total value of 64.9 trillion VND (2.63 billion USD) in 2024, VCSC said. According to a plan approved in the bank's 2023 annual general meeting of shareholders (AGM), Vietcombank will conduct a private placement in the 2023-2024 period, offering 6.5% of shares to foreign investors. At a recent extraordinary AGM, BIDV also approved to adjust the implementation time for offering additional shares in the bank's plan to increase charter capital in 2023. Specifically, the AGM decided to delay the implementation time to 2024. Under the plan, BIDV will issue an additional 455 million shares in the form of public offering or private offering. BIDV has not announced details of the offering plan, but it has long had a plan for a private placement for foreign investors. Besides State-owned banks Vietcombank and BIDV, private banks such as LPBank, SHB and HDBank have also planned for stock offering to foreign investors in 2024. LPBank is implementing steps in its plan to issue 300 million shares under private placement to foreign investors. The specific offering time will be decided by the bank's board of directors after approval by competent State agencies. The shares offered to foreign investors are subject to a three-year transfer restriction for strategic investors and a one-year transfer restriction for professional securities investors. SHB Chairman Do Quang Hien informed the bank's shareholders that the share offering to foreign investors will be completed in 2023 or early 2024. Previously, at SHB's 2023 AGM, the bank ap proved the continued implementation of increasing capital from the issuance of shares for foreign investors and foreign strategic investors. At a recent meeting with investors, Hoang Thanh Tung, Director of HDBank's Investment Relations Division, said that HDBank has made the necessary preparations for issuance to increase capital as it reserves about 10% foreign ownership room to strategic partners. According to Tung, HDBank has so far received interest from a number of foreign partners from the Republic of Korea, Europe and the US. Selecting investors to issue capital and attracting strategic shareholders are always within HDBank's orientation to improve financial strength to meet growth needs, while still ensuring the central bank's regulated capital adequacy ratio and liquidity./. Source: Vietnam News Agency

Hanoi: With orders secured for the second quarter, activities are in full swing in many leather and footwear production plants, bringing about the hope for a year of buoyant exports. According to data from the General Statistics Office, as of February 15, leather and footwear product exports raked in more than 2.46 billion USD, up 16% year-on-year. Phan Thi Thanh Xuan, Vice Chairwoman and General Secretary of the Vietnam Leather, Footwear and Handbag Association (LEFASO), said the sector still focus on its five key export markets, namely the US, which accounts for about 35% of its total export revenue, the EU, Japan, the Republic of Korea, and China. Notably, the growing turnover from the Chinese market has come as a boon for the sale of these products abroad this year, she assessed. Despite the current surge in the number of orders, experts believed that difficulties and challenges remain ahead. Green and sustainable standards that require eco-product policies, extended producer responsibility, and suppl y chain traceability, among many others, are likely to be applied on Vietnamese goods by their major importers. The compulsory adherence to those requirements means a significant pressure for enterprises. Nguyen Quang Vu, Chairman of the Leather, Footwear and Handbag Association of the southern province of Binh Duong, underscored business connectivity as a solution, because an individual firm might lack investment to build such a production ecosystem as required. It is the only path toward development, he said. In a bid to support the sector, the Ministry of Industry and Trade has planned large-scale trade promotion events for its key products, helping them to expand their export markets./. Source: Vietnam News Agency

Hanoi: Vietjet has opened a direct route from Hanoi to Hiroshima, connecting the capital of Vietnam with the famous city of Japan, bringing more convenient tourism and trade opportunities between the two cities and two countries as a whole. Operating from May 12, 2024 with two return flights per week on Thursdays and Sundays, people and tourists can easily travel between Hanoi and Hiroshima with a flight time of around 4 hours per leg. The flights depart from Hanoi at 6:00 (local time) and arrive in Hiroshima at 12:30 (local time). The return flights depart from Hiroshima Airport at 13:30 (local time) and arrive at Noi Bai Airport (Hanoi) at 16:20 (local time). Hiroshima is located in the Southwestern region of Japan and has two UNESCO World Heritage Sites: the Hiroshima Peace Memorial Park and the mysterious Itsukushima Shrine with the Torii gate on the Seto Inland Sea, and many other famous landmarks such as Ueno-Hiroshima Park, Senkoji Park. Meanwhile, Hanoi being known as the heart of Vietnam, is the cu ltural, economic, and political centre imbued with Vietnamese identity and world-famous diverse cuisines. Vietjet currently operates many flights connecting the largest cities in Vietnam as Ho Chi Minh City and Hanoi, to famous cities in Japan including Tokyo, Osaka, Nayoga and Fukuoka. With Vietjet's extensive flight network, passengers can easily connect from Hanoi and Hiroshima to various destinations in Vietnam and the region by Vietjet's routes. To celebrate the new route, Vietjet opens for sale thousands of promotional tickets starting from 0 VND (excluding taxes and fees) on the website www.vietjetair.com and the Vietjet Air mobile app, applies to all international flights on Fridays from March 8, 2024, with flexible flight times from March 8, 2024 to December 31, 2024 (except for holidays, depending on each market and route). In every Vietjet flight, passengers can enjoy unique Vietnamese cuisines including Pho Thin, Banh mi, milk iced coffee, etc. and international ones served by professional and dedicated cabin crews on modern, eco-friendly fleet together with free Sky Care insurance. Additionally, members of the loyalty program Vietjet SkyJoy can accumulate points to redeem vouchers from Vietjet and over 250 leading brands./. Source: Vietnam News Agency

Hanoi: The Trade Remedies Authority of Vietnam (TRAV) under the Ministry of Industry and Trade (MoIT) has warned of a risk of Canada's trade remedy investigations into steel wire products imported from Vietnam. According to statistics from TRAV, Canada has initiated eight trade remedy investigations into steel products imported from Vietnam, including five anti-dumping, two countervailing, and one safeguard. Therefore, Canada is targeting most of Vietnam's key steel export products/types, such as rebar, corrosion-resistant steel sheets, rolled steel, pil country tubular goods (OCTG) pipes, among others. The authority said that with its policy of monitoring and tightening management of imported steel to protect the domestic market, Canada will continue the investigations to apply measures against the remaining steel products/types from Vietnam, including steel wire. Data from Trademap shows that the export value of steel wire products from Vietnam to Canada has been increasing rapidly in recent years. In 20 20, Vietnam exported about 10 million USD worth of steel wires to the northern American country. The figure doubled to 21 million USD in 2021 and quadrupled to 40 million USD in 2022. TRAV recommended that relevant associations and businesses review their exports of steel wire to the Canadian market; and prepare response measures in case Canada initiates a trade remedy investigation. Businesses should also proactively grasp Canada's regulations and procedures for trade remedy investigations, it noted./. Source: Vietnam News Agency

Hanoi: The export of products of the foreign direct investment (FDI) and traditional products of domestic enterprises are expected to rebound this year, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan has said in a recent interview with the Vietnam News Agency (VNA). The official revealed that the number of export products logging over 1 billion USD in turnover each has increased over the years and accounts for a significant proportion of the country's total export value. There were only 23 commodities with export earnings of over 1 billion USD in 2013, and the figure increased to 29 in 2018 and 35 in 2023. In 2024, the global and domestic economic situation has boded well for trade activities. The country's efforts to enhance negotiations and diversify export markets are likely to provide a competitive edge for its overseas shipments in the time to come, said Tan. According to the deputy minister, Vietnam is increasingly playing a vital role in the global supply chain for electronic products. M any major corporations such as Samsung, Apple, and Intel have chosen the country to establish large-scale manufacturing centres serving their exports worldwide. Recently, the sale of electronic products abroad has posted robust growth, contributing significantly to the total export turnover. Vietnam is also witnessing an influx of investment shifting from semiconductor businesses. The production and export development of high-tech products have been included in the country's import-export strategy towards 2030. Particularly, the government has implemented comprehensive programmes to attract investment, improve the business climate, develop supporting industries, and enhance the quality of human resources serving better value-added of the exports. The deputy minister said that to capitalise on these opportunities, enterprises need to innovate manufacturing activities, improve product quality, and closely align production with consumer demand. Additionally, they must research and adopt new technologies, while promoting automation to reduce production costs. He noted the Ministry of Industry and Trade, as the leading agency in managing and overseeing trade, will continue to monitor market developments to provide suitable advice and recommendations, and will organise regular trade promotion conferences with Vietnam's trade missions abroad. Furthermore, the ministry is working to accelerate efforts to conclude negotiations for the Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates (UAE). Also planned are the conduction of diverse promotion events to introduce the advantages and incentives brought about by free trade agreements (FTA). It will also develop logistics services and push for sustainable border trade by promoting exports through official channels, the deputy minister added./. Source: Vietnam News Agency

Hanoi: The total retail sales of goods and consumer service revenue in February increased by 8.5% over the same period last year to 509.7 trillion VND (20.63 billion USD), according to the General Statistics Office (GSO). The figure contributed to a year-on-year rise of 8.1% in total retail sales of goods and revenue from consumer services in the first two months of this year to 1.03 quadrillion VND. Of the total, retail sales of goods were estimated at 798.3 trillion VND, accounting for 77.4% of the total and up 6.8% over the same period last year (up 4.5% if excluding the price factor). Of which, retail revenue of food and foodstuffs rose by 10.8%, while that of household appliances and tools was up 18.1%, garment 9.8%, vehicles (except cars) 1.8%, and cultural and educational products 16.5%. Particularly, revenue from accommodation and catering services rose by 14%, while that from travel services surged by 35.8%. Thanks to the favourable visa policies, tourism stimulus programmes as well as the effor ts of the Government and people, the number of foreign visitors to Vietnam in February reached more than 1.5 million, up 1.3% over the previous month and 64.1% over the same period last year. The number for the first two months of this year hit more than 3 million, an increase of 68.7% over the same period last year. As a result, revenue from tourism services in the first two months of this year reached 9 trillion VND. Meanwhile, revenue from other services was estimated at 105.9 trillion VND, accounting for 10.2% of the total and increasing 9.7% over the same period last year. Economists held that the shopping season during the Lunar New Year (Tet) festival was a leverage for retailers to boost domestic demand and increase revenue right from the beginning of the year. The business outcomes in Tet also showed the consumption trend of the year, helping enterprises decide their market development strategies and business plans for the year, they added./. Source: Vietnam News Agency