Post independence period meaning in hindi

How do you evaluate the content regarding “the happiness of the people” that has become the highlight of the document at the 13th National Party Congress amid the COVID-19 pandemic upsetting lives and interfering with the peace of many people?

“The happiness of the people” is one of the labels contained in the Draft Political Report by the 12th Party Central Committee and submitted to the 13th National Party Congress.

Because the more “the happiness of the people” is integrated into the history of the world and the country in 2020, the more expressive, concise, shining and meaningful the statement becomes, not only in terms of politics and economics, but more profoundly, in the sedimentation and development of a new level in the social, cultural and humanistic aspects of Vietnam. Looking further, it is the order of comprehensive and synchronous renovation in the vision not only by 2025 or 2030 but also by 2045, under the Party’s flag. With a closer look, that is also the continuation of the century-long goal of Vietnam since 1930, when the Communist Party of Vietnam was born!

Remembering President Ho Chi Minh’s advice: “The Party is not an organisation for those who want to be mandarins and gain benefits. It must fulfil the task of national liberation, making the Fatherland rich and strong, and the people happy;” and “In addition to the interests of the nation and the Fatherland, the Party has no other interests”, the more we see the pride sparkling in such labels, but it remains also a great challenge and historic responsibility of our Party, as “the representative descendant of the Vietnamese working class”, towards our people.

By the end of 2020, the world was sinking in the COVID-19 pandemic, leading to unusual difficulties. One direct and immediate consequence was that the world economy has fallen into a deep and comprehensive crisis – something unprecedented in the past half century –into the mud of stagnation and depression while the risk of societal rupture exists in many countries. But, among 210 countries and territories, in 2020, Vietnam was one of the 10 countries in the world with the highest GDP growth rate, one of the 16 most successful emerging economies. With regard to humanity, the COVID-19 epidemic broke out, raged and devastated globally. Meanwhile, in Vietnam, the total number of infections so far is only 1,451, with 95 under treatment and 1,318 recoveries, while the death toll stands at only 35. All over the planet, everyone has the same desire and dream: the world quickly overcoming the pandemic and back to normal!

The “happiness of the people” that we pursue, strive for and even sacrifice, is natural and simple.

What do you think about happiness, an important element in the motto placed under Vietnam’s official name : “Independence – Freedom – Happiness”? From that point of view, how do you comment on the fact that many provincial and municipal Party Committees have included the criteria of people’s happiness in their political reports, which measure happiness through the criteria of satisfaction about life, environment, social welfare and public services?

I think happiness is harmony among individuals, society and the environment, for the sustainable development of each individual, society and of the environment. In other words, happiness is harmony and development. And, when placing happiness in the motto under Vietnam’s official name: “Independence – Freedom – Happiness”, the more we see a holistic combination: independent nation – civil rights and freedom – people with happiness, that the Vietnamese nation has steadfastly acted, even sacrificed to reach, retain and develop over the past 75 years. Remembering on July 17, 1966, President Ho Chi Minh saying: “There is nothing more precious than independence and freedom”, the more we see the issue of happiness we are discussing, really it is clear how bright, natural, gentle, and close the Vietnamese truth is.

The country must be independent – it is a sacred national right that no one, no force can contaminate and invade upon. But in an independent country, the people must enjoy freedom naturally and inevitably. Because, if the country is independent and the people do not enjoy happiness and freedom, independence does not mean anything, as President Ho Chi Minh affirmed on October 17, 1945.

Over the past 75 years, the proposition of happiness has completed a whole nation’s motto: Independence – Freedom – Happiness. It is the premise, the goal, the driving force and the legitimate path of development of the Socialist Republic of Vietnam, to build a mighty Vietnam with the goal of “a Rich people, strong country, democracy, justice and civilisation”.

In 2020, we saw that many Provincial and Municipal Party Committees included the criteria of people’s happiness in their political reports as submitted to the National Party Congress, which measure happiness through the criteria of satisfaction about life, the environment, social welfare and public services. It is indispensable, because it is a factor and driving force for comprehensive, strong and durable development.

To realise the country’s development vision and goals by the mid-21st century, the human factor will play a decisive role. In your opinion, how do we build an elite team to lead and promote the nation’s development in the coming decades? What qualities do they need and how does the personnel work serve as the “top issue among the key stages” – (as Party General Secretary and State President Nguyen Phu Trong says) with a need to innovate and attract such talented people to meet the requirements of progress?

Our ancestors said: For the interest in one year, we plant rice; for ten years, plant trees; and for one hundred years, we nurture people!

The historical reality in the past 90 years, especially during the 75 years of the Party’s rule, is it evident that: After having the right political direction, a decisive factor for the success of such direction is the cadres, first of all, the contingent of managers at all levels and the corresponding organisational apparatus. Especially during the renovation process over the past 35 years, we need to continue to innovate and make breakthroughs in order to build a contingent of leaders at Party committee, agency and enterprise levels to take on the ruling responsibility of the Party in leading the country. This is one of the basic factors that makes the national brand a key breakthrough and a meaningful success. As the political approach must be implemented directly and first of all by a contingent of worthy leaders, with a new style of thinking about the ruling Party, about the strategies for national development, and about the movement and development trends of the world today.

The position and role of leading the country is difficult to replace, and belongs only to an elite team. This contingent of Party officials and members must include the most elite members of the nation, representing true national strength. Party committees, government agencies and business boards at all levels must be elite agencies of the Party, the State and the nation, while they are also the environment for the training and nurturing of talent. On the other hand, it is necessary to accelerate the intellectualisation and rejuvenation of all contingents of Party cadres and members – a decisive factor that directly supplements quality and creates resources for Party rule, State governance and enterprise management. It is important to continue to regulate and build a contingent of strategic, elite and loyal staff with an extended sense of vision who are typical examples of political personality, culture and integrity. This is the root that ensures the strength and prestige of the Party, an important factor determining the success of the Party’s current and future work, as well as deciding success in national leadership and development, or in a broader manner, the development of the country’s position, strength and reputation.

Therefore, it is necessary to develop a national talent development strategy, at least in terms of the vision to 2030 and beyond, by 2045, to ensure compatibility with national development strategy.

Accordingly, first of all, in terms of thinking and attitude, it is necessary to understand that: Talent does not wait to mature. Regardless of who they are, if they are willing to serve the honour and might of Vietnam, for the happiness of the people and the longevity and development of the Vietnamese people, all must be respectfully admitted and appointed to important posts.

Second, in terms of mechanism, it is necessary to open all doors and amend the ways of “recruiting and treating well all talent”, so that talent in the country and from abroad converge in Vietnam, as well as screening, checking and monitoring officials periodically and regularly according to regulation, law and people’s confidence.

Third, in terms of institutions, we must definitely reward and punish strictly, while promoting democracy associated with the responsibility of attracting and appointing talent, especially in nomination and self-nomination.

Finally, for those who are in charge of personnel work and recruiting talent, it is necessary to have vision, honesty, courage, responsibility and integrity.

Whether the nation develops into a success or not, whether the people raise their heads or follow others or not, a fundamental part of this lies in studying and demanding the appreciation of talent!

Thank you very much!

During the period, total import-export revenue through border gates in Lao Cai reached over 11 million USD, including 2.4 million USD worth of imports, mainly fertilisers and farm produce, and 8.8 million USD worth of exports, mostly agricultural products.

In 2020, despite the impact of COVID-19, the Border Gate Customs Sub-Department under the Lao Cai Department of Customs completed its “twin targets” by processing customs clearance declarations for 516 businesses with import-export value of over 1 billion USD and ensuring safety from the pandemic.

In 2021, it will closely coordinate with other sectors to speed up administrative reform while exhibiting better performance in e-customs clearance activities to save time and cost, ensuring economic development and COVID-19 prevention and control at the same time./.

Local automobile group exports over 200 units, parts

Automobile producer THACO recently shipped more than 200 Kia vehicles and auto parts to Thailand, Myanmar, Japan, and the Republic of Korea (RoK).

The conglomerate’s largest export consignment to date, made on February 17, comprised of cars, buses and semi-trailers manufactured at its factories at the THACO-Chu Lai Industrial Park in central Quang Nam province.

The exports included 80 Grand Carnival cars to Thailand, the company’s seventh consignment to its partner, Yontrakit, since December 2019.

One hundred and twenty Kia Soluto cars were shipped to Myanmar, the sixth batch to this market.

Kia cars manufactured by THACO are increasingly appreciated by customers in ASEAN countries since their quality is equivalent to those made in the RoK and meets global Kia standards, while their prices are very competitive.

In 2021, THACO plans to export 1,480 automobiles to Thailand and Myanmar, expand exports to other markets, and gradually achieve its goal of becoming a production and export base for Kia Motors cars and spare parts in the ASEAN region.

This is THACO’s first export of semi-trailers to Japan, one of the most challenging markets in the world with stringent quality requirements.

It exported through its Nippon Trex, a leading manufacturer and exporter of semi-trailers in Japan.

Nippon Trex carried out extensive research on and technical discussions about semi-trailer product development in the Japan before appreciating THACO’s capacity and collaborating with it to manufacture and export semi-trailers to the market.

This time THACO also exported buses to Thailand via VOLVO Group’s VOLVO Buses Corporation, one of the world’s biggest manufacturers of large buses.

THACO buses were selected by VOLVO Buses for shipping and distributing in Thailand since they met all requirements in terms of technology, quality, safety, and competitive prices and Thailand’s standards and certification requirements (with respect to design, size, ECE certificates, and others). The company uses over 60 per cent locally made parts.

The shipment kicked off THACO’s plans to export 66 buses to Thailand and South Korea this year.

In addition to cars and semi-trailers, auto parts too were exported to the RoK, including seat covers, gearshift covers, air-conditioning radiators, and specialised vehicle components for Hyundai Santafe. The consignment was worth 200,000 USD.

With the import tax on CBU cars within the ASEAN bloc scrapped since the beginning of 2018, many car assemblers in Vietnam have switched to importing and distributing cars, whereas THACO has been expanding production and increasing the use of local parts to serve its strategy of exporting to Southeast Asia.

This year THACO will continue to export to existing markets Thailand, Myanmar, the Philippines, the US, and Japan and expand to other ASEAN countries, with a total of 2,500 vehicles. It expects to earn 30 million USD from exports of auto parts and other mechanical products.

Exports of large numbers of cars since last year have attested to the fact that cars made in Vietnam can compete in foreign markets, which is gradually helping raise the country’s profile in the global market.

THACO plans to increase exports to ASEAN and enter new markets in Africa, West Asia, South Asia, Australia, and elsewhere./.

Dinh An Economic Zone – driving force for Mekong Delta region

The Dinh An Economic Zone in the Mekong Delta province of Tra Vinh is one of eight coastal key economic zones in Vietnam. With an orientation to develop a multi-sector economic zone associated with sustainable marine economic development, Dinh An has focused on investment to become an economic driving force of the province and the Delta.

Dinh An has attracted nearly 50 projects to date with total investment capital of about 6.7 million USD. It is expected that by 2030 it will contribute up to 80 percent of the provincial budget.

Dinh An also has a strategic position in economic development associated with security and defence. Despite its huge potential, however, investment attraction in the zone is still lower than its potential.

Existing bottlenecks are hindering the Dinh An Economic Zone from becoming a driving force for economic development in Tra Vinh and the Mekong Delta as a whole./.

Conference discusses role of Vietnam in Asia-Europe partnership

A conference has been held in Moscow to discuss the outlook of the Eurasian Economic Union (EAEU) and the role of Vietnam and Belarus in the expansion of the Asia-Europe development space.

Addressing the event, President of the “Asia-Europe House” Association Alexander Makhlaev highlighted the role of Vietnam’s traditional values in the country’s development.

He held that the political stability has paved the way for Vietnam’s economic development.

Meanwhile, Natalya Ivanova, an expert from AV Group, underlined the significance of international business environment in the integration process of each country.

She asserted that the EAEU is creating a new motivation, especially for the strengthening of cooperation among member countries as well as with partners, including Vietnam.

According to Chairman of the Council of Experts of the Eurasian Research Fund Grigory Trofimchuk, Vietnam, a dynamic developing country and a member of many integration mechanisms and international organisations, is working hard to speed up integration process.

Vietnam is the first partner to sign a free trade agreement with the EAEU in 2015, he noted, adding that the union should focus more on partnership with Vietnam as the country is a door to the world.

The official highlighted the dynamism of Vietnamese firms in Russia as well as other countries in the world. However, he said that Vietnam and the EAEU have yet to optimise each other’s advantages and potential, while a number of trade barriers between the two sides are still existing.

He held that both sides should discuss the maintaining of trade defence measures to increase trade in the future, adding the EAEU should show its advantage in the current period when the COVID-19 pandemic is developing complicatedly in the world.

Within the conference’s framework, Trofimchuk introduced his book entitled “Vietnam wings up”, expressing his hope that the book will help Vietnam and Russia become closer together in economy, trade and humanity./.

Investment booms as Soc Trang improves business climate

Soc Trang province’s efforts to improve its business climate is paying off with more and more investors, both domestic and foreign, coming since 2016.

The Mekong Delta province has worked with hundreds of potential investors seeking to invest in areas where the province has strengths like hi-tech agriculture, tourism and wind and solar power.

It approved 116 projects with a total investment of 27.3 trillion VND (1.18 billion USD) in 2016-20, 5.5 times the amount in the previous five years.

Nine of them are FDI projects.

Soc Trang authorities have been making efforts to improve the investment climate and provincial competitiveness by focusing on infrastructure and providing lands for projects.

They are keen on projects that are sustainable and environment-friendly.

Nguyen Thi Thuy Nhi, deputy director of the province’s Department of Natural Resources and the Environment, said her department had been reforming administrative procedures, boosting the province’s competitiveness in terms of attracting investment and business climate.

One key infrastructure project is the upgrade of Tran De deep-water port, which will reduce logistics costs for exports from the Mekong Delta.

The recently approved Chau Doc – Can Tho – Soc Trang highway will connect to the port, aiding goods transportation and improving links with the rest of the country.

The province is also creating a start-up eco-system with development assistance, incubation programmes and sponsorship for creative small and medium-sized businesses.

In the last five years 1,900 new businesses were set up, a 47.2 percent increase from 2011 – 15. Many companies have invested in manufacturing in the An Nghiep Industrial Park, creating tens of thousands of jobs.

In 2021 – 25 Soc Trang seeks to further improve its business climate and competitiveness, focusing on business assistance services, labour training and helping investors start projects smoothly.

There are 3,300 registered businesses in the province with a total charter capital of 33 trillion VND.

Soc Trang’s economy grew by 6.75 percent in 2020./.

Legal move supports realty market development in 2021

According to Ha Quang Hung, deputy head of the Housing and Real Estate Market Management Department under the Ministry of Construction, many policies regulating housing and real estate market growth have been improved and aligned with the current regulatory system on investment, construction, and doing business.

Significantly, the Law on Construction 2020 has been united with the Law on Housing, Law on Real Estate Business, and the Law on Environmental Protection regarding investment proposal approval, investor approval, or developer recognition, creating a healthier and more transparent investment environment while mitigating speculation and price manipulation activities.

“In 2020, despite the impacts of COVID-19, the real estate market still managed fair growth of about 8-11%, if indirect factors like capital, land, and building materials were taken into account,” said Hung.

Le Hoang Chau, chairman of the Ho Chi Minh City Real Estate Association opined that several revised laws (Law on Investment, Law on Securities Business, and Law on Enterprises) coming into force from January 2021 have bolstered market growth.

“The realty market has undergone the most difficult period and will gradually rebound. Positive legal changes would motivate firms to join the affordable housing and mid-level segments more robustly,” he said.

From another angle, Su Ngoc Khuong, senior director at Savills Vietnam, a leading real estate consultancy firm, noted that the success of the 13th National Party Congress would bring vitality to the whole economy, particularly the real estate, especially in Ho Chi Minh City and Hanoi – Vietnam’s two growth engines.

The new “city in city” urban form of in Ho Chi Minh City is deemed an inspiring breakthrough, whereas in Hanoi transport infrastructure has witnessed noteworthy improvements.

In addition, experts assumed that fiscal and monetary policies in the past decade have proven successful, with well-controlled interest rates.

Nguyen Van Dinh, deputy general secretary of the Vietnam Real Estate Association (VNREA), outlined two scenarios for market development in 2021.

In the first scenario, with the mindset “cash is king” lingering in the first and second quarter of 2021, the market will be full of challenges due to low transaction volumes. COVID-19 will only be contained by the middle or the end of the first quarter with no new infections reported, allowing the market to gradually rebound.

In the second scenario, the pandemic would drag on to be contained no sooner than June. In this scenario difficulties would continue mounting. Accordingly, housing prices in the primary market are expected to shed an average 5% compared to last year, with sales volumes taking a plunge.

For commercial real estate, the lingering pandemic would lower operation efficiency as well as occupancy rates, while resort real estate would remain in “hibernation” the way it was in early 2021.

The latest report by Colliers International Vietnam forecast that more than 4,000 shop houses would be released in the Ho Chi Minh City market in 2021. The birth of Thu Duc City would fuel the development in the city’s northeast. Colliers data also show that products from six projects in Thu Duc, Binh Chanh, and Nha Be districts will enrich supply in the upcoming time.

Businesses urged to capitalise on opportunities to increase exports

Local businesses have been advised to diversify their markets to intensify import and export activities this year, alongside maximising the benefits of free trade agreements (FTAs), restructuring export products, developing stronger brands, whilst grasping market information and changes in the policies of importers, according to insiders.

With an impressive trade surplus of over US$19 billion last year, the industry and trade sector aims to increase the total export turnover for this year by between 4% and 5%, with the country’s trade surplus anticipated to maintain its momentum.

Despite this, Vietnamese exports this year are largely dependent on the prospects of the global economy, particularly if the novel coronavirus (COVID-19) pandemic can be brought under control.

With regard to the export situation in the year ahead, Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (VITAS), said textile and garment exports this year will continue to face numerous difficulties ahead in the post-pandemic period. In line with this, Vietnam is likely to export goods worth between US$37 billion and US$38 billion providing that the pandemic is brought under control globally.

Giang pointed out that over the long-run, the Vietnamese garment and textile sector will continue to encounter challenges over the subsequent three years, noting that exports to major markets gradually return to a normal state once the pandemic is successfully curbed by the end of the third quarter of 2023.

He emphasised that new-generation FTAs, especially the EU-Vietnam Free Trade Agreement (EVFTA), the Regional Comprehensive Economic Partnership (RCEP), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) can be expected to boost exports moving forward.

Experts have therefore attributed these difficulties to the current low level of market diversification among some agricultural and aquatic products, pointing out that although several products enjoy a tariff reduction of 0%, a number of domestic agricultural products have been not been allowed to gain entry into some markets.

Furthermore, despite the proportion of the FDI sector’s export value decreasing in recent years, it accounts for over 64% of the country’s total export value. This is due to the sector’s production and export activities being largely dependent on regional and global supply chains.

Moreover, the impact of the rising trend of protectionism, trade conflicts, and complicated developments of the COVID-19 pandemic globally have changed the structure of global supply chains, with several countries, especially the United States and western nations, strengthening trade protectionism measures.

Phan Thi Thanh Xuan, vice president and General Secretary of the Vietnam Leather, Footwear and Handbag Association, revealed that the leather and footwear sector has made the best use of the EVFTA, adding that the industry’s exports are poised to grow by between 15% and 20% this year if the COVID-19 epidemic is successfully contained.

Xuan underlined the need to devise stronger policies aimed at accelerating the development of the local supporting industry so it can independently produce raw materials and avoid a heavy reliance on imports.

In an effort to maintain the export growth in the year ahead, the Ministry of Industry and Trade is expected to help businesses take full advantage of opportunities from FTAs by removing barriers for market expansion and keeping a close watch on the developments of the COVID-19 pandemic in order to take timely response measures.

She pointed out that new generation FTAs ​​such as the CPTPP and the EVFTA are expected to provide fresh impetus to export growth over the coming year thanks to tariff incentives, adding that the shift in FDI investment flow from regional countries to the nation, along with the restructuring of supply chains, will also contribute to boosting exports this year.

Key solutions that can promote import and export activities moving forward will largely focus on diversifying markets, maximising the benefits from relevant FTAs​, restructuring export products, developing brands, whilst grasping market information and changes in policies of importers, Xuan noted.

Deputy Minister of Foreign Affairs Le Hoai Trung also underscored the importance of opportunities brought about by FTAs while urging the local ecnonomy to improve its autonomy to prepare for any worse-case scenarios and utilising the system of commercial counselors to perform tasks in line with these changes.

Minister of Industry and Trade and deputy head of the Party Central Committee’s Economic Commission Tran Tuan Anh, said there will be a positive outlook for the country in the years ahead thanks to favourable conditions from integration strategies and the enforcement of FTAs.

In addition, the Government’s schemes on economic restructuring, social security, reforms, open-door policies, and efforts to fine tune the legal system will also be beneficial.

Domestic food and beverage industry has development potential

The domestic food and beverage market has great potential for development despite the difficulties caused by the COVID-19 pandemic, according to experts.

Hanoi – The domestic food and beverage market has great potential for development despite the difficulties caused by the COVID-19 pandemic, according to experts.

Food and beverages are in the fast-moving consumer goods (FMCG) category. For many years, this has always been one of the important economic sectors with great potential for development, according to the Vietnam Report 2020.

The food and beverage market’s growth rate is forecasted to reach from 5-6 percent annually in 2020-2025.

Despite suffering negative impacts from the COVID-19 pandemic, the food and beverage industry in Vietnam also has many strong growth opportunities. At present, more and more consumers pay attention to nutritional foods of plant origin, organic foods or food with healthy ingredients.

A survey conducted by Vietnam Report at the end of 2020 showed due to COVID-19, half of customers have spent more on foods boosting their immune system and clean foods. Meanwhile, 63.7 percent of customers have cut spending on alcohol and beer. Therefore, businesses in this industry must adjust their production to suit demand.

Food businesses have to increase their production capacity by about 30 percent, while beverage businesses must reduce their production to lower than 80 percent compared to before the pandemic.

Besides that, Vu Dang Vinh, general director of the Vietnam Assessment Report Joint Stock Company, said COVID-19 has forced nearly 70 percent of food and beverage businesses to focus on the digital transformation for survival and development, reported the Vietnam News Agency.

Many businesses have built modern technology processes in production and management. Food and beverage companies have also sped up investment activities to renovate the distribution system and adjust the proportion between traditional and modern trading channels. They develop applications to enhance the customer experience when shopping and innovate packaging design, eco-branding and product line development.

Nguyen Dang Quang, chairman of Masan Group, said the COVID-19 pandemic is a good opportunity to promote e-commerce.

The group is building plans to attract more and more people to online shopping, he said.

Vinh said food and beverage businesses need to focus on strategies such as revenue growth, market development, promotion of research and improving product quality. They should also diversify supply sources with priority for domestic suppliers and develop online distribution channels on e-commerce platforms.

According to experts in the food and beverage industry, the stable macroeconomy and commitments in free trade agreements signed between Vietnam and its partners such as the European Union-Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) would bring export opportunities and more foreign investment. They would promote the transfer of technology and technological advancement in the industry.

Along with that, the food and beverage companies need to improve their competitiveness and increase investment in infrastructure systems and modernisation of production processes and corporate governance.

Foreign investors divest Ninh Van Bay due to bleak performance

Two foreign investors, namely Recapital Investments Pte., Ltd and Belton Investments Ltd., decided to divest Ninh Van Bay Travel Real Estate JSC, the developer of Six Senses Ninh Van Bay Resort in Nha Trang.

Notably, Recapital Investments Pte., Ltd. issued an announcement to sell 10.7 million shares at Ninh Van Bay Travel Real Estate to decrease its ownership from 11.9 per cent to zero. Recapital Investments is an investment fund owned by Rosan P. Roeslani, the former president of Inter Milan football club.

Besides, Belton Investments Ltd. has also registered to sell its entire 6.4 million shares, equaling 7.07 per cent of the stake, in this company. The sale is expected to be completed between February 5 and March 1.

Previously, in 2013 Recapital Investments bought 30 million shares at the price of VND7,500 (32.61 US cents) apiece. Belton Investments has been a large shareholder since 2012. However, since 2019, both investors started to decrease their ownership in Ninh Van Bay Travel Real Estate.

The reason for the divestment may be the bleak business results of Ninh Van Bay.

Notably, the company listed its stake on the Ho Chi Minh City Stock Exchange in 2010 with the initial price of VND30,000 ($1.30) apiece, however, the stocks plunged to VND1,000 (4.35 US cents) apiece in 2017. Besides, the company suffered a loss of VND479 billion ($20.83 million).

After two years of restructuring, the company reported a profit of VND27 billion ($1.17 million) in 2019, more than 13 times the figure of VND2 billion ($86,960) in 2018. In 2020, the company acquired VND211 billion ($9.17 million) in net revenue, down 24 per cent on-year. The main reason for this bleak business result came from the impact of the COVID-19 pandemic.

At present, Ninh Van Bay stocks are traded at VND5,680 (24.70 US cents), rising 22 per cent over the past three months.

Upbeat export-import picture in early 2021

Many of Vietnam’s growth engines have posted impressive export-import performance, with Ho Chi Minh City, Bac Ninh, and Binh Duong being the top performers.

The latest statistics from the Vietnam General Department of Customs show that the country raked in $55 billion in total export-import turnover in the first month of 2021, a 48 per cent jump on-year.

Many localities have posted fairly impressive growth in their export import value compared to the corresponding period in 2020 despite the impacts of the recent COVID-19 reemergence.

Leading the list is Ho Chi Minh City which counted $8.9 billion in total export-import value, followed by Bac Ninh with $7.7 billion, Binh Duong with $5 billion, Thai Nguyen with $4.4 billion, and Hanoi with $3.8 billion.

Many localities have posted fairly impressive growth in their export import value compared to the corresponding period in 2020 despite the impacts of the recent COVID-19 reemergence.

This is an impressive performance as Hai Duong needs to ramp up efforts to carry out the dual target of preventing and curing COVID-19, while still ensuring socio-economic development.

Last year, the province attracted nearly $7.76 billion in total export value and more than $6 billion in total import value, and carved out a place among the localities with biggest export-import value in the northern region.

Quang Ninh, Lao Cai, and Lang Son (the major export players) have increased business even during the Lunar New Year holiday. For instance, on the first three days of the new year, the Lao Cai International Border Gate’s Customs Bureau had completed customs clearance for 4,000 tonnes of export-import goods valued at more than $2 million.

In Ho Chi Minh City, right on the eve of the Lunar New Year, Saigon New Port Corporation conducted a ceremony to receive goods marking the New Year of the Ox.

In 2020, the cargo volume calling on Ho Chi Minh City’s Cat Lai port rose 8.2 per cent, making it one of the top performers worldwide in cargo throughput volume. This year, the cargo volume through Cat Lai port is expected to surge 5 per cent.

More than 7,000 tonnes of goods passed through each day Mong Cai International Border Gate Customs Bureau under Quang Ninh Customs Department during the Lunar New Year holiday.

The Ministry of Industry and Trade forecast that export business would maintain its growth momentum in February, especially in localities hosting the manufacturing complexes of South Korean tech giant Samsung Group, leveraging the proliferation from January 2021. The exports of handsets and accessories could lift up, capitalising on Samsung’s fresh roll-out of new items such as Samsung Galaxy S21, Samsung Galaxy S21 Plus, and Samsung Galaxy S21 Ultra.

Larger frame of mind for logistics

Throughout more than three decades of economic reform, Vietnamese companies from many sectors have been venturing abroad and become role models. Yet, the logistics sector remains too focused on the domestic market. Tran Thanh Hai, deputy director of the Ministry of Industry and Trade’s Agency of Foreign Trade, emphasised that local players should follow regional examples and take their business to international arena.

In this context, logistics activities were affected significantly, with railways, roads, and air transport being the most heavily affected, while waterways and warehouses remained largely unscathed and even saw growing business due to rising inventory.

Different from five years ago, logistics have been given due attention by all state levels, as shown in the directive documents of the government, ministries, and branches, that all considered logistics a crucial aspect of the economy. From there, policy changes and significant investments in infrastructure could be accomplished, along with the easing of administrative procedures for businesses in this sector.

However, one of the current challenges is the lack of large-scale Vietnamese enterprises with influence in the logistics industry, while large foreign-invested enterprises (FIEs) such as FedEx, UPS, and DHL from the United States and Europe dominating the country’s logistics sector.

In Vietnam, telecom, real estate, and manufacturing enterprises have built outstanding businesses that drive their respective industries. Within the logistics sphere, however, there is no such role model.

Companies like Saigon Newport, Gemadept JSC, Transimex JSC, and Sotrans Co., Ltd. are contributing their share but can hardly be called outstanding yet. The general picture of today’s businesses is stiffening, with competing FIEs operating in Vietnam, while those from other countries are integrating into global markets.

Additionally, the domestic logistics sector remains rather small with limited international operations, while this industry is really about going global and partaking in imports and exports. So far, the number of Vietnamese enterprises operating in foreign markets is also small, with even the bigger names not providing services to foreign markets. In the era of global integration, we must go to the world to develop, and thus this remains the Achilles heel of the domestic industry. Moreover, weak links with other service providers elsewhere have not been established and utilised sufficiently. Although Vietnamese manufacturers have been able to export goods to Europe in large volumes, there is no logistical presence of local companies.

As such, logistics groups stop all operations at Vietnam’s gates, after selling and delivering goods to customers, resulting in low added value and a lack of competitiveness against foreign counterparts.

Against this backdrop, the largest difficulties relate not to capital but to the awareness of Vietnamese entrepreneurs, who are typically shy in new environments, especially when confronting foreigners. Many businesses dare to run their operations but mostly focus on the domestic market as they feel that doing business in their own country is easier. Problems here can be handled the familiar Vietnamese way, while they would have to follow foreign rules outside and establish new personal networks and relations. Within the current logistics community, FIEs and state-owned enterprises are relatively stable, but the private sector consists mainly of small-scale businesses, with some newly established or separated from others.

In Vietnam, the number of FIEs is increasing constantly, with nearly 40 multinational corporations and many smaller ones present in the market. However, companies from Japan and South Korea are very ethnocentric and prefer to use the services of their country’s enterprises, which support and protect each other. Meanwhile, European and American businesses are somewhat more open-minded. They use traditional services but do not pay much attention to their partners’ country of origin. Multinationals have financial advantages, so it is easier for them to establish a foundation and attract high-quality human resources than it is for domestic ones. They also make great use of experienced CEOs.

The great advantage of FIEs is their cooperative relationship with partners worldwide. From these relationships, they provide most of the services requested by manufacturers at competitive prices. The service quality of these enterprises is often at a higher level than that of domestic ones, reflected in their professionalism, the assurance of standardised service quality, and strict rules and norms, which provide credibility for these businesses.

Those businesses also pay special attention to customer care and focus on the long-term benefits, instead of immediate returns. Therefore, at some stages, they even accept losses to win customers’ sympathy and build a reputation. Meanwhile, some Vietnamese businesses follow a fast-paced approach that aims for quick profits rather than long-term relationships and market presence. Such a mentality will also not pay attention to quality.

Models to follow

With a growth rate of 12-14 per cent per year, Vietnam’s logistics sector is growing, albeit merely gradually. It may take another 5-10 years to see strong differences today. As this speed remains slow, Vietnam’s logistics needs to go faster to avoid lagging behind other countries.

Up to now, Vietnam’s logistics growth has mainly relied on the scale of commodity production, consumption, and import-export, which are natural factors for growth advantages. However, these are not intrinsic factors of the logistics sector, they are just objective ones.

If one of these factors changes – such as COVID-19, natural disasters, and the declining domestic demand – the sector’s growth will suffer if it is not well established in foreign markets.

Thus, Vietnamese groups need to step out of their comfort zone, adapt quickly, and avoid thinking of themselves as small and inferior. Small does not mean weak.

At present, Vietnamese enterprises focus only on the domestic market, and give little thought to venturing abroad. Meanwhile, I am confident that Vietnam’s logistics can provide decent services to the regional market, such as Laos, Cambodia, and Thailand – all of which are close by and of similar development levels. Vietnam already has top enterprises in leather, footwear, steel, and automobiles. Thus, the logistics sector can build on their experience and develop leading groups from those sectors.

Singapore can also be a good example for Vietnam. Its government was determined to put all its advantages into developing the logistics sector and to turn Singapore into the largest transshipment port in the world. To do that, Singapore has largely sacrificed marine tourism. Nowadays, the island nation is housing some of the leading enterprises in logistics fields. It boasts PSA Co., Ltd., the world’s largest port operator, which also has a joint venture in Vietnam’s Cai Mep port complex in the south.

In the aviation industry, it has Singapore Airlines – a 5-star airline which for many years maintained its position as the world’s leading airline. Before the pandemic hit, Changi Airport was consistently one of the busiest airports in the world.

Another model is Taiwan, which has strong logistics development. Of course, there are also more developed economies like Japan or Germany whose level of development is already at a much higher level. The country needs it, the government needs it, and the businesses that want to grow strong also need to be bold and venture abroad with an outward-looking spirit. Vietnam opened its doors to global integration 35 years ago, but it is now up to businesses to step out or not. The government alone cannot do this.

Vietnam’s mobile devices reached the export value of $51 billion last year

Mobile devices and components produced in Vietnam last year were exported to 50 markets and reached the export value of more than $51.18 billion, according to the latest data published by the General Department of Vietnam Customs.

In comparison with 2019, export value was slightly down 0.4 per cent. Nevertheless, it is still one of the Vietnamese economy’s main sectors by occupying nearly one-fifth (18 per cent) of the export value.

China remained the largest consumption market for the goods category with $12.34 billion, making up 24 per cent of Vietnam’s export turnover from mobile phones, and up 48.8 per cent on-year. Europe was the second-largest export market with a turnover of $9.9 billion, up 18.9 per cent on-year.

The runners-up were the US, South Korea, and the United Arab Emirates with $8.79 billion, $4.58 billion, and $2.53 billion. In addition to China, other markets like Hong Kong, Canada, and Japan last year increased their purchasing of mobile devices and components from Vietnam by 44.14 per cent to $1.73 billion, 34.3 per cent to $826.23 million, and 16.5 per cent to $937.75 million, respectively.

2020 is the first year Vietnam has seen a plunge in the export turnover of mobile devices and components. Over the previous 10 years, the sector has been going from record to record, even recording triple-digit growth in a few years like in 2011 when it hit 178.3 per cent.

Thanks to that, mobile devices and components exceeded garment and footwear production to become the sector with the largest export value for Vietnam, mainly driven by foreign-invested enterprises, lead by Samsung. To date, about 60 per cent of the South Korean giant’s items are produced in Vietnam.

Impetus for rubber suppliers to bounce back even higher

Although expectations for an increase in rubber prices remain low, the recent spikes have left rubber growers in Vietnam less worried. Nevertheless, to cash in on the recovering carmakers and other industries after the pandemic, as well as compete with regional rivals, local latex gatherers may need to step up their game and apply for official certificates.

More than an hour’s drive from Pleiku, the capital of the Central Highlands province of Gia Lai, small roads are running through immense rubber forests. The town of Ia Kha is crowded with more than 8,000 people, but unlike in the past, these people are less occupied with farming than before.

Ro Mah Kiu, a worker in the 15 Corporation at 74 Company, often wakes up at 3am to scrape latex. When he was still farming, he lacked the necessary skills, often left behind a wasteland, and struggled all year round. As his life remained difficult, Kiu became worried about his future.

Eventually, he joined 74 Company’s local farmer support group to focus on latex extraction. But it was not easy to become a latex farmer. Proper care for mature rubber trees is tricky and learning the right technique for extracting the latex from the tree even more so.

The pandemic caused a scarcity in labourers and made it difficult to gather and process latex. Colonel Hoang Van Sy, commander of the 15 Corporation, told VIR, “The recruitment of new workers is cumbersome. Workers lost their jobs in other industries and returned to their localities in huge numbers, but after being recruited for latex exploitation, it always takes a lot of time training for them to become skilled enough for the job.”

In addition, between 2018 and 2019, the corps saw nearly 3,000 workers reaching retirement age, leaving a hole in the corps’ workforce that has yet to be filled.

Unlike in many other sectors, workers in the rubber industry are not just dependent on markets but also the weather, which sometimes leads to heavy impacts on price calculation.

“We are forced to cut input costs to a minimum, from over VND50 million ($2,175) per tonne of latex to VND32 million ($1,400) to reduce the pressure on prices,” Sy said.

The long chain of declining prices in the rubber sector had lasted for nearly 10 years, with few people thinking they would ever bounce back. However, in the last months of 2020, rubber prices at the Osaka exchange – the reference for the natural rubber market in Europe and Asia – experienced nine consecutive gains. On October 28, the most-traded April 2020 futures contract increased by ¥20 (19 US cents, equalling 7.9 per cent) to ¥274.3 ($2.65) per kilogramme, the highest closing price since March 2017. The increase in this session was also the highest since the end of 2008.

Reversing prices for rubber can be easily envisioned in a period of economic development, but with 2020, a year of stagnation and economic decline amid the pandemic, market interference from the Chinese market becomes more apparent. Statistics of the Chinese Customs Department said that in the first 11 months of 2020, China’s rubber imports reached $9.76 billion, up 4.5 per cent compared to the same period in 2019.

The staggering market recovery can also be explained by the fact that rubber production in China last year dropped by 30 per cent on-year, due to massive storms on Hainan Island and droughts in Yunnan province.

China has seen a significant increase in imports with only a gradual decrease in consumption. The 11-month data of Vietnam’s Ministry of Industry and Trade shows that China spent $4.34 billion, up 35.2 per cent over the same period in 2019, for the import of a popular mixture of natural and synthetic rubber.

Meanwhile, the Chinese auto industry – one of the key sectors for rubber consumption – remained on a downturn due to the global health crisis. Although the situation is slowly improving, the China Association of Automobile Manufacturers estimates that sales in 2020 dropped by 10 per cent, much lower than forecast.

The ability for rubber prices to recover globally stands in stark contrast to the decrease in supply. The Association of Natural Rubber Producing Countries (ANRPC) predicts that in 2021, global rubber production could recover to around 13.7 million tonnes, an increase of 8.6 per cent compared to last year. However, even with this increase, 2021’s production would still be lower than that of 2019 and 2018, with about 13.8 million tonnes.

Rubber production across Southeast Asia, which accounts for two-thirds of global natural rubber supply, has been severely affected by labour shortages due to the pandemic, natural disasters, and other disadvantages. The demand-supply gap is widening, while rubber traders fear the supply shortage will be further exacerbated by the continuing political instability in Thailand and the uncontrolled pandemic.

According to the ANRPC, 2020’s production decreased by about 6.8 per cent compared to 2019, to 12.9 million tonnes, mainly due to the decline in Thailand and India, of which Thailand’s output decreased by about 332,000 tonnes. This corresponds to the forecast of the Rubber Authority of Thailand on last year’s production, which was already estimated to be about 10 per cent lower due to the constant rains in the south of the country.

In Vietnam, the trend of decreasing latex plantation areas is also apparent at some large suppliers.

Dong Nai Rubber Co., Ltd., which had specialised in natural rubber supply, has started its plan to reduce 40-50 per cent of its exploitation and preliminary processing by 2025 to switch into fields with higher margins. According to Do Minh Tuan, general director of Dong Nai Rubber, latex exploitation so far contributed around 70-75 per cent of the company’s revenue. Last year, the firm even recruited 250 more locals as workers but remained unable to make up for the shortage to meet production goals.

Less worried farmers

Although some multilateral deals like the EU-Vietnam Free Trade Agreement have opened a door for exports to grow, Vietnam’s rubber sector has yet to make real use of these opportunities. The EU market has a large demand for high-end rubber, for which Vietnamese producers could provide the input materials. According to statistics from the General Department of Customs, the European market accounted for merely 5.1 per cent of the total export volume of 1.1 million tonnes of rubber within the first nine months of 2020.

Meanwhile, Huynh Tan Sieu, head of technology and environment at the Vietnam Rubber Industry Group, pointed out that local businesses also miss out on the opportunity to further the competitiveness of Vietnamese rubber in the global market by not applying for the FSC forest management certification, which confirms social and environmental characteristics of a company’s operations.

John Heath, commercial director at London-based natural rubber company Corrie MacColl Ltd., said in January that the European market is currently paying much attention to FSC-certified rubber. His company is distributing about 500 tonnes of certified latex to the European market each month, “a very small fraction of the growing demand for FSC-certified rubber in this market,” Heath explained.

In response to growing pressure from civil organisations and consumers, companies take more responsibility for supply chains, and Heath said that Corrie MacColl aims to “do the right thing, so it will not buy rubber from customers who cut primary tropical forests to plant rubber.”

Good products and official forest certifications have enabled 15 Corporation to access markets outside of China, led by the desire to reduce the focus on a single export market. As such, customers from Russia, Sweden, India, and Japan are considering buying the company’s latex and rubber.

However, since costs are currently higher for sourcing from the Central Highlands, “sustainable solutions with mutual benefits have to be agreed on,” said Sy of the 15 Corporation.

He hopes that the output of the 40,000ha will suffice this year to reach the targeted 10-15 per cent increase in revenue and secure the jobs of more than 10,000 workers. In 2020, the corporation banked a gross revenue of over VND1.5 billion ($65.2 million).

Vietnam leading car dealers struggle with Covid-19 impacts

While car prices in 2020 were significantly lower compared to the pre-Covid-19 period, customers had become more cautious in spending, leading to an 8% year-on-year drop in car sales to 296,634 units.

Major car dealers in Vietnam, including Savico, Haxaco and City Auto, posted modest return on sales (ROS) of 1-2% in 2020, mainly due to customers tightening their belt amid a difficult Covid-19 year.

“The pandemic had led to fierce competition in car prices, causing a downturn in the company’s business performance,” stated Savico in its financial statement.

Savico, a distributor of major car brands of Toyota, Volvo, Honda, Mitsubishi, recorded the highest revenue among the three with VND16.13 trillion (US$700.2 million), down 12% year-on-year, and profit of VND224 billion (US$9.72 million), or ROS of 1.38%.

While car prices in 2020 were significantly lower compared to pre-Covid-19 period, customers had become more cautious in spending, leading to an 8% year-on-year drop in car sales to 296,634 units, data from the Vietnam Automobile Manufacturers’ Association (VAMA) noted.

City Auto, a major distributor of Ford and Huyndai, suffered a same fate with a decline of 11% year-on-year in revenue to VND5.67 trillion (US$246.1 million) and net loss of over VND4 billion (US$173,800).

Last year, City Auto predicted a challenging year of 2021 for the automobile industry following a sharp drop in market demand.

In a letter to the Ho Chi Minh City Stock Exchange, City Auto attributed its negative business performance to lower car sales volume.

In contrast, Haxaco, a leading Mercedes-Benz car dealer in Vietnam, recorded a rise of 8% year-on-year in revenue to VND5.57 trillion (US$241.8 million) and after-tax profit of VND125 billion (US$5.42 million), up 150% year-on-year.

A senior official at Haxaco said the firm took advantage of the government’s policy of reducing 50% of the registration fee for domestically-produced cars to boost sales revenue. However, Haxaco’s ROS remained at a modest rate of 2.24%.

A study from SSI Securities Corporation suggested 2021 could start the upward trend of Vietnam’s automobile industry with a 16.3% year-on-year growth rate in terms of car sales number, citing high demand from the domestic market for cars.

Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes

Agricultural production has been affected by abnormal weather conditions, climate change, and diseases over recent years. Many farms in southern Dong Nai province have applied high-technology in agricultural production in order to cope with the situation, helping increase quality and output.

High-tech production requires massive investment, not just capital but also technology, equipment, and “grey matter”, to adapt to cutting-edge manufacturing methods.

High-tech manufacturing models have been expanded around Dong Nai, especially in animal husbandry and on poultry farms.

Dong Nai has more than 46,000 hectares of crops using water-saving technology and the province has gradually changed to green breeding in accordance with Vietnamese Good Agricultural Practice (VietGAP) standards.

Agriculture accounts for 8.3 percent of Dong Nai’s economic structure and agro-forestry-fisheries value currently stands at nearly 1.8 billion USD. The results reflect the province’s large-scale manufacturing development investment and high-tech application to adapt to unfavourable conditions and meet market demand.

Vietnam’s growth outlook to depend on authorities’ response to new outbreak: WB

Vietnam’s growth prospects will depend on how well and how quickly the authorities will bring the new coronavirus outbreak under control and how quickly international and national vaccinations will proceed, according to the World Bank (WB).

In its Vietnam Macro Monitoring report issued earlier this month, the WB said January’s industrial production index jumped by 24.5 percent year on year, the highest growth rate since the beginning of 2019. Merchandise exports and imports respectively grew 51.8 percent and 41.8 percent from the same period last year.

The preliminary January goods trade surplus is estimated at 1.1 billion USD. Exports to the US and China continued the robust growth of 2020 while those to the EU, ASEAN, Japan and the Republic of Korea (RoK) bounced back strongly. Similarly, imports from the RoK, ASEAN and the US joined those from China, Japan and the EU to stay in expansionary territory.

In the first month of 2021, the Government spent a total of 99.6 trillion VND, which is slightly, 1 percent, higher than a year ago. Public investment reached 15 trillion VND, making the disbursement rate of 3.25 percent.

However, the WB added, while Vietnam’s economy has been extremely resilient to the COVID-19 crisis, preliminary results from the COVID-19 World Bank high frequency household survey of January show that almost half of households still reported lower household income than the year before. About 9 percent of households took loans and 15 percent reduced their consumption.

If persistent, this prudent behaviour will negatively affect aggregate domestic demand in the future, according to the bank.

It held that growth prospects for 2021 will be affected by how well and how quickly the authorities will bring the new outbreak under control and how quickly international and national vaccinations will proceed.

If the crisis lingers, the authorities may consider further monetary and fiscal support. Yet, special attention will have to be given to the fiscal space, the health of the financial sector and possible social effects as lasting loss of income among some households may create new inequalities and tensions, the report noted.

Jacques Morisset, WB Lead Economist for Vietnam, said the WB expects with many positive signs like the considerable progress in vaccine development and gradually resumed trading activities, the country can obtain growth of 6 percent in 2021./.

Binh Duong sees high trade growth

The southern province of Binh Duong achieved impressive growth in exports in January.

They grew 61.7 percent year-on-year to 2.98 billion USD.

Many of its main export items such as computers, electronics and components (75 percent) and wooden products (89 percent) saw high growth.

The textile-garment and footwear sectors, which struggled last year due to COVID-19, picked up pace as businesses began receiving more orders.

Exports to the US, which accounted for 65.2 percent of the province’s total exports in January, grew by 68.9 percent.

Exports to other markets such as Hong Kong, Taiwan and Japan also saw growth.

Notably, Hai Duong province achieved 37 percent growth despite being severely affected by the COVID-19 pandemic./.

Hotel occupancy rates in HCM City at less than 10 per cent

More independent trips, “free & easy” tours and guided small group tours will be high on travellers’ agendas for 2021, the HCM City Department of Tourism has said.

Staycations and luxury leisure vacations have been popular this year, the department said in a report. Short-distance itineraries to the southeastern region and Cửu Long (Mekong) Delta, following health and safety protocols, have been favoured by travellers.

Independent trips, including self-drive itineraries located near the city such as Vũng Tàu, Đà Lạt and Phan Thiết, saw a rise in visitors during the Tết holiday.

Lại Minh Duy, general director of TST Tourist, said domestic tours could be customised for each group or family, with socially-distanced and mask-wearing guidelines.

Many Tết tours had been delayed until the Reunification Day holiday on April 30, when COVID-19 outbreaks were expected to be contained by that time, Duy said.

Travellers scrambled to cancel trips and get refunds for tours during the Tết (Lunar New Year) holiday due to COVID-19 outbreaks in late January, just a few days ahead of Tết.

Around 500 customers cancelled Tết tours worth a total of VNĐ 6 billion (US$260,400) at leading travel firms in the city. Most of them required full refunds and refused to delay trips, firms said.

Travel demand during Tết was nearly at a standstill. During the holiday, popular tourist and entertainment sites in the city such as Đầm Sen Park, Suối Tiên Theme Park, Văn Thánh and Bình Quới tourist sites were closed to contain the spread of the virus.

Hotels in HCM City are now operating at occupancy rates of less than 10 per cent, according to the department. Many hotels prepared special F&B programmes and offered promotions to meet rising demand during the Tết season but were then affected by the new outbreaks.

As many as 29 hotels with a total of 2,053 rooms have been approved to serve as hotel quarantine areas, and four more, with a total of more than 440 rooms, are waiting for approval from city authorities.

Investor begins building ICT service chain in Đà Nẵng

Trung Nam Group has started construction of five factories at the Information Technology and Communication (ICT) Service Zone in Đà Nẵng to host the moves of global supply chains.

The general director of Trung Nam Group, Nguyễn Tâm Tiến said the factory chain would be built on 9.3ha at Đà Nẵng Information Technology Park with an investment of VNĐ1.5 trillion (US$65.2 million).

The group would also develop an apartment and villa zone for expert and engineers and an eco-park project on 26ha with a total of VNĐ2.1 trillion ($91.3 million) for accommodation facilities for investors and their families in the near future, he said.

Tiến said the group planned to build 23 more ICT factories and R&D zones to meet increasing demand from global partners

“We debuted the first surface-mount technology (SMT) factory with a capacity of 6.2 million electronic products per year at the Đà Nẵng Hi-tech Park last year after three months of research,” he said.

He said the operation of the SMT factories chain will be a key step in building the Đà Nẵng IT Park as central Việt Nam’s ‘Silicon Valley’, and call for investors from Silicon Valley and the US to invest in high-tech industries, artificial Intelligence (AI) and automation.

Trung Nam completed the first investment phase on 131ha at Đà Nẵng IT Park with an investment of $47 million. It plans to develop the second phase on another 210ha with estimated funds of $74 million.

Universal Alloy Corporation – a leading global manufacturer of aircraft components for aerospace companies – from the US launched its factory for aircraft components worth $170 million, at the city’s Hi-Tech Park last March.

Alton Industry from the US also plans to build a robot manufacturing project in the city’s Hi-tech Park.

In 2019, two of the first Silicon Valley-based businesses – Meritronics AMT Inc and Ai20X Silicon Valley – agreed with Trung Nam Group to develop the Đà Nẵng IT Park.

Last year, South Korea’s LG Electronics and Trung Nam Land JSC inked an agreement with a vision to transform Đà Nẵng into the centre of technology and R&D in Việt Nam.

Kien Giang expands lucrative shrimp-breeding models

The Cửu Long (Mekong) Delta province of Kiên Giang plans to expand its brackish-water shrimp farming areas this year in an aim to increase farmers’ incomes and adjust to soil, water and climatic conditions.

Quảng Trọng Thao, deputy director of the provincial Department of Agriculture and Rural Development, said that intensive industrial shrimp breeding with advanced techniques would be done in areas that have sufficient infrastructure and investment capacity, primarily in the Long Xuyên Quadrangle.

The province will also review and turn unproductive rice fields into rice – shrimp farming fields that rotate the cultivation of shrimp and rice on the same fields, he added.

The province is encouraging farmers to breed shrimp using advanced two-stage and three-stage industrial farming models, and apply Vietnamese good agricultural practice (VietGAP) standards and other international farming standards to meet export requirements.

The province is developing rice – shrimp farming areas in the districts An Biên, An Minh, Vĩnh Thuận, U Minh Thượng, Gò Quao, Hòn Đất, Kiên Lương and Giang Thành.

Kiên Giang, which is the country’s largest rice producing province, has turned thousands of hectares of unproductive rice fields in coastal areas into rice-and-shrimp rotation models in recent years.

With a coastline of more than 200 kilometres, the province has advantages to develop rice – shrimp farming models in coastal areas.

Hòn Đất District alone has conditions to develop its rice – shrimp farming area to 20,000ha. The district plans to expand the area to 16,000ha by 2030.

Under the rice – shrimp farming model, farmers rotate growing rice in the rainy season and breeding shrimp in the dry season in the same fields, or intercrop breeding shrimp in ditches around rice fields and growing rice at the same time.

The rice – shrimp farming model offers farmers an average profit of VNĐ70 – 100 million (US$3,000 – 4,400) per hectare a year, two to three times higher than only rice cultivation, according to farmers.

Farmer Huỳnh Văn Bạc has intercropped cultivating mùa rice and giant river prawn on 3ha in Châu Thành District’s Vĩnh Hòa Phú Commune since 2017.

He has earned an average profit of more than VNĐ160 million ($7,000) a crop.

Mùa rice is planted only in the rainy season and lasts about six months each crop.

“The cultivation of mùa rice helps farmers reduce production costs and get high prices. I also earn additional income from harvesting giant river prawn,” Bạc said.

He said that farmers need help from local agencies to access soft loans and advanced farming techniques.

Since early this year, farmers have received high prices for shrimp varieties because of high export demand.

The price of white-legged shrimp, for instance, increased to VNĐ150,000 – 198,000 ($6.5 – 8.6) a kilogramme early this year, up VNĐ10,000 – 15,000 against the end of last year.

Farmers who breed giant river prawn had a bumper harvest of shrimp before and after Tết (Lunar New Year). Traders are buying giant river prawn at a high price of VNĐ130,000 – 180,000 ($5.7 – 7.8) a kilogramme, depending on their size.

The brackish-water shrimp farming area will be expanded to 136,000 ha with an annual output of 98,000 tonnes this year, according to the province’s Department of Agriculture and Rural Development.

Of the figure, industrial and semi-industrial farming models will cover 4,000ha, shrimp – rice farming 104,500ha, and advanced extensive farming 27,500ha.

Last year, the province bred 134,235ha of brackish-water shrimp with an annual output of 92,490 tonnes.

HCM City to fill 30,000 job vacancies after Tet

There will be some 30,000 job vacancies in Ho Chi Minh City after the Lunar New Year (Tet) holiday, according to the city’s Human Resources Forecast and Labour Market Information (Falmi) Centre.

Most recruitment will be in business-trade, services, garment-leather footwear, food processing, chemical-plastic-rubber, customer service, transport-warehouse-port services, IT, and tourism-restaurant-hostels.

Falmi Centre Vice Director Do Thanh Van said that 85.8 percent of the total vacancies are for trained and skilled employees.

According to head of the Ho Chi Minh City Export Processing and Industrial Zones Authority Hua Quoc Hung, businesses at local export processing and industrial parks need to employ some 12,000 workers to satisfy their production plans, 2,540 of whom must hold university degrees and 4,700 secondary education certificates or college degrees.

Vacancies are seen in the garment and leather footwear sector and from enterprises at Tan Binh, Linh Trung 1 and 2, and Tan Tao processing and industrial zones, to cover for workers who left their jobs last year.

The Falmi Centre said that the city will have around 70,000-75,000 job vacancies in the first quarter, mostly in business-trade, services, garment-leather footwear, food processing, chemical-plastic-rubber, customer service, and IT, among others./.

Vietcombank offers interest reduction on COVID-19-affected customers

The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) – one of the major banks in Vietnam – on February 22 announced that it will reduce the interest rate on all existing loans for three months until May 22.

The decision is part of the bank’s effort to support its customers amid impacts of the COVID-19 pandemic.

Specifically, Vietcombank will lower interest rate for COVID-19-hit enterprises by 10 percent, and 5 percent for remaining customer groups that suffer negative impacts from the pandemic.

For individual customers, Vietnambank will reduce interest rate by 0.2 percent per year for those who take loans for production and business.

According to the bank, 105,000 customers will benefit from the programme with total credit of 350 trillion VND (15.18 billion USD), accounting for 40 percent of the total outstanding debt balance of the bank.

In 2020, Vietcombank offered five interest reduction programmes to support enterprises and people affected by COVID-19 and flooding, becoming the credit institution to offer largest reduction in many years, and bringing the loan interest to the lowest level in the banking system.

The total amount of loans covered by interest reduction programmes was 441.7 trillion VND, while the total value of interest reduction in 2020 was nearly 4 trillion VND.

Alongside, Vietnambank has restructured the payment date and maintained the debt group classification on over 5.15 trillion VND worth of loans.

Sustainability the goal for agricultural goods

The consumption of agricultural products will move towards diversity and sustainability, according to a newly-approved plan.

Prime Minister Nguyen Xuan Phuc recently approved a plan to change agricultural product consumption in 2021 – 2025, with a vision to 2030.

The plan, designed by the Ministry of Industry and Trade, aims to reorganise agricultural production on a large scale in accordance with the planning and requirements of the market, accelerating the use of science and technology, and applying traceability of agricultural products.

Along with that, trade and services cooperatives will be consolidated and developed as a necessary intermediary between farmers, businesses and banks to organise consumption for farmers.

The plan will build a binding mechanism linking the main parties in the agricultural product consumption channel and supportive policies to encourage all parties to link organically from material supply, production to the consumption of agricultural products.

The plan is also set to promote communication and raise awareness of organisations and individuals about innovating methods of trading and consuming agricultural products.

In addition, the management of safe production processes and product quality control will be strictly enhanced before selling to the market, ensuring agro-products meet not only domestic standards but also standards of importing countries.

The plan states the modernisation of production and business will focus on trade promotion, agricultural branding activities gradually, domestic and international market expansion to limit dependence on certain markets to reduce risks and improve the values of agricultural products; research, and science and technology application enhancement./.

Public investment disbursement must be sped up: minister

Speeding up the disbursement of public investment from the start of this year was an important solution to accelerate economic recovery amid the COVID-19 pandemic, Minister of Finance Dinh Tien Dung has said.

The global economy was expected to embark on the recovery process after a deep downturn in 2020 due to the pandemic. However, the recovery would be different from country to country, depending on the developments of the pandemic and efforts to contain the virus.

“It is necessary to drastically implement measures to accelerate the disbursement of public investment in 2021, right from the first months of the year to create the impetus for economic growth to meet and even exceed targets,” the minister said.

Accountability must be enhanced, he stressed.

To make public investment a pillar for economic growth, the finance ministry is developing a programme with a focus on removing legal bottlenecks to disbursement of public investment.

Inspections would also be enhanced to ensure the allocation and use of public investment to follow National Assembly and Government plans while close watch would be kept on the process to tackle problems.

Regarding the disbursement of public investment from foreign loans, Dung said the progress remained stagnant, partly due to the pandemic.

There were also subjective reasons for the stagnation, including slow site clearance, a lack of accountability and poor preparation which required adjustments and slowed disbursement, he said.

He said that to fulfil the public investment plan for 2021-25, it was important to enhance the accountability of all parties relevant to the use of public investment in all stages, from preparation to implementation and settlement.

Projects which failed to meet planned progress should have their capital revoked, he stressed.

Statistics of the Ministry of Planning and Investment showed the disbursement of public investment was estimated at 398 trillion VND (17.3 billion USD) as of the end of December, meeting 82.8 percent of the Government’s plan – the highest rate in the 2016-20, thanks to the Government’s determination to speed up the disbursement of public investment as a major driver for economic growth.

According to the General Statistics Office, every increase by 1 percent in public investment disbursement would push GDP by 0.06 percentage points.

The Vietnamese economy expanded at 2.91 percent in 2020, the lowest rate in the past decade but this was considered a big success in the context of the COVID-19 pandemic./.

Binh Duong sees high export and import growth in January

Binh Duong Province achieved impressive growth in exports in January to rank third in the country behind only HCM City and Bac Ninh Province.

They grew 61.7 per cent year-on-year to US$2.98 billion.

Many of its main export items such as computers, electronics and components (75 per cent) and wooden products (89 per cent) saw high growth.

The textile-garment and footwear sectors, which struggled last year due to COVID-19, picked up pace as businesses began receiving more orders.

Exports to the US, which accounted for 65.2 per cent of the province’s total exports in January, grew by 68.9 per cent.

Exports to other markets such as Hong Kong, Taiwan and Japan also saw growth.

HCM City led the country with exports of $8.9 billion, and Bac Ninh followed with $7.7 billion.

Notably, Hai Duong Province achieved 37 per cent growth despite being severely affected by the Covid-19 pandemic.

Sustainability the goal for agricultural product consumption

The consumption of agricultural products will move towards diversity and sustainability, according to a newly-approved plan.

Prime Minister Nguyen Xuan Phuc recently approved a plan to change agricultural product consumption in 2021 – 2025, with a vision to 2030.

The plan, designed by the Ministry of Industry and Trade, aims to reorganise agricultural production on a large scale in accordance with the planning and requirements of the market, accelerating the use of science and technology, and applying traceability of agricultural products.

Along with that, trade and services co-operatives will be consolidated and developed as a necessary intermediary between farmers, businesses and banks to organise consumption for farmers.

The plan will build a binding mechanism linking the main parties in the agricultural product consumption channel and supportive policies to encourage all parties to link organically from material supply, production to the consumption of agricultural products.

The plan is also set to promote communication and raise awareness of organisations and individuals about innovating methods of trading and consuming agricultural products.

In addition, the management of safe production processes and product quality control will be strictly enhanced before selling to the market, ensuring agro-products meet not only domestic standards but also standards of importing countries.

The plan states the modernisation of production and business will focus on trade promotion, agricultural branding activities gradually, domestic and international market expansion to limit dependence on certain markets to reduce risks and improve the values of agricultural products; research, and science and technology application enhancement.

HCM City developers move to provinces on cheaper prices, improving transport infrastructure

While the HCM City housing market has gone quiet after the renewed outbreak of COVID-19, the market in neighbouring provinces like Dong Nai, Long An and Binh Duong has seen robust growth this year, experts said.

Distance is no longer a problem for developers in and around HCM City thanks to improved transport infrastructure, and they are increasingly looking at neighbouring provinces where prices are more reasonable and have potential for property development.

A recent report by the Viet Nam Association of Realtors (VARS) said the development of Long Thanh International Airport in Dong Nai and Thu Duc City and the construction of new roads and bridges connecting the south-eastern region with HCM City have led to increased activity in the real estate market.

This is creating a wave of investment in emerging markets while traditional markets are reaching saturation point, general director of real estate services firm DKRA Viet Nam, Pham Lam, said.

In Binh Duong Province, land in areas adjacent to HCM City which have potential for economic development, such as Thuan An and Di An cities, have become ideal for affordable apartment projects, a product the city lacks.

VARS said apartment prices in Binh Duong increased sharply last year despite Covid-19 — from VND25-30 million (US$1,080-1,300) per square meter to VND30-35 million (US$1,300-1,500) — but remain much lower than in the city.

In Dong Nai, land prices in areas close to the eastern part of HCM City have also increased, especially thanks to the construction of the airport in Long Thanh.

In 2019 the average land price was VND12-14 million per square metre, and rose to VND22 million last year. In Long Thanh Town, the price has surged to VND100 million in some areas.

The real estate market in Ba Ria – Vung Tau Province is also hot since it is adjacent to HCM City and has great potential for tourism development.

Investors also are keen on Long An Province, which too borders HCM City. Some projects with high potential go for VND21-26 million per square metre while in other areas is VND13-15 million.

No land is available in recent projects at less than VND15 million.

Covid-19 causes insolvency of real estate enterprises

The real estate industry has accounted for about 4.42% of Vietnam’s total gross domestic product in 2020.

Nearly 1,000 real estate enterprises have completed dissolution procedures in 2020 in Vietnam due to the impact of Covid-19, according to the Ministry of Construction.

A number of real estate enterprises had to go bankrupt due to Covid-19 in 2020. Photo: Doan Thanh

Last year, many real estate enterprises had to improve their capacity and increase adaptability to the pandemic. The number of the newly-established enterprises in the sector in 2020 was 6,694, down 15.5% compared to 2019.

In the last quarter of 2020, the sector slightly expanded compared to growth in the first quarter mainly thanks to the rapid recovery of the housing and industrial segments. This led to a positive growth for the whole year of 2020.

According to the Ministry of Construction, the real estate credit kept expanding in the whole year of 2020, except for the first quarter because of the Covid-19 outbreak.

In addition to bank credit, which was the main source of capital, the real estate market lured inflows from other sources such as individuals, remittances and capital from the issuance of stocks, bonds of listed companies and foreign-invested enterprises.

Bình Dương sees high export and import growth in January

Bình Dương Province achieved impressive growth in exports in January to rank third in the country behind only HCM City and Bắc Ninh Province.

They grew 61.7 per cent year-on-year to US$2.98 billion.

Many of its main export items such as computers, electronics and components (75 per cent) and wooden products (89 per cent) saw high growth.

The textile-garment and footwear sectors, which struggled last year due to COVID-19, picked up pace as businesses began receiving more orders.

Exports to the US, which accounted for 65.2 per cent of the province’s total exports in January, grew by 68.9 per cent.

Exports to other markets such as Hong Kong, Taiwan and Japan also saw growth.

HCM City led the country with exports of $8.9 billion, and Bắc Ninh followed with $7.7 billion.

Notably, Hải Dương Province achieved 37 per cent growth despite being severely affected by the Covid-19 pandemic.

HCM City developers move to provinces on cheaper prices, improving transport infrastructure

While the HCM City housing market has gone quiet after the renewed outbreak of Covid-19, the market in neighbouring provinces like Đồng Nai, Long An and Bình Dương has seen robust growth this year, experts said.

Distance is no longer a problem for developers in and around HCM City thanks to improved transport infrastructure, and they are increasingly looking at neighbouring provinces where prices are more reasonable and have potential for property development.

A recent report by the Việt Nam Association of Realtors (VARS) said the development of Long Thành International Airport in Đồng Nai and Thủ Đức City and the construction of new roads and bridges connecting the south-eastern region with HCM City have led to increased activity in the real estate market.

This is creating a wave of investment in emerging markets while traditional markets are reaching saturation point, general director of real estate services firm DKRA Việt Nam, Phạm Lâm, said.

In Bình Dương Province, land in areas adjacent to HCM City which have potential for economic development, such as Thuận An and Dĩ An cities, have become ideal for affordable apartment projects, a product the city lacks.

VARS said apartment prices in Bình Dương increased sharply last year despite Covid-19 — from VNĐ25-30 million (US$1,080-1,300) per square meter to VNĐ30-35 million (US$1,300-1,500) — but remain much lower than in the city.

In Đồng Nai, land prices in areas close to the eastern part of HCM City have also increased, especially thanks to the construction of the airport in Long Thành.

In 2019 the average land price was VNĐ12-14 million per square metre, and rose to VNĐ22 million last year. In Long Thành Town, the price has surged to VNĐ100 million in some areas.

The real estate market in Bà Rịa – Vũng Tàu Province is also hot since it is adjacent to HCM City and has great potential for tourism development.

Investors also are keen on Long An Province, which too borders HCM City. Some projects with high potential go for VNĐ21-26 million per square metre while in other areas is VNĐ13-15 million.

No land is available in recent projects at less than VNĐ15 million.

Enhancing added value for rice industry

The Ministry of Agriculture and Rural Development has just approved a project on restructuring the Vietnam’s rice industry until 2025 with a vision to 2030.

Accordingly, Vietnam will continue to restructure the rice industry in the direction of improving efficiency and sustainable development towards the objectives of fully meeting domestic consumption demand, being the core in ensuring national food security, and enhancing the efficiency of the rice value chain.

Under the project, Vietnam also expects to adapt to climate change and mitigate the impacts of climate change, make efficient use of natural resources and protect the ecological environment, and increase income for farmers and benefits for consumers, in addition to exporting high quality and high value rice.

The country also plans to keep its rice area at 3.6 to 3.7 million hectares by 2025, with rice production of 40 to 41 million tonnes per year.

The rice industry also aims at exporting 5 million tonnes of rice each year by 2025, including 40% fragrant rice, specialty rice and japonica rice, 20% sticky rice, 20% high quality rice, 15% medium and low-grade rice, and 5% products processed from rice. The percentage of branded rice exports is over 20%.

The country sets the target of exporting 4 million tonnes of rice by 2030, including 45% fragrant rice, specialty rice and japonica rice, 20% sticky rice, 15% high quality rice, 10% medium and low-grade rice, and 10% products processed from rice, with over 40% branded rice exports.

A notable aspect of the project is that the rice export volume has decreased gradually in each period, but the criteria for specialty rice, high quality rice, processed products from rice, and percentage of branded rice exports sees increases year by year.

This shows that the future direction of the rice industry is to reduce the area and output for export towards a focus on improving rice quality and selling prices.

This is the right target which is suitable to the current situation of rice production and export, particularly in the context that Vietnam has signed many free trade agreements (FTAs) with international partners, such as the EU-Vietnam Free Trade Agreement (EVFTA), the Regional Comprehensive Economic Partnership (RCEP), and the UK-Vietnam Free Trade Agreement (UKVFTA).

To make the best use of the advantages from FTAs, the rice industry has to constantly improve product quality to meet the increasingly strict requirements of importing countries.

Rice is a strategic commodity of our country, not only contributing to the economic development but also playing an important role in ensuring national food security. Therefore, promoting the restructuring of this industry is essential to better boost the achieved results while igniting untapped potential.

The solution for the coming time is to develop concentrated rice production areas with identified varieties and the links between production, consumption and export. It is also important to strictly control the production process, obey the limit of pesticide residue, and ensure traceability.

The rice industry also needs to apply advanced technology in terms of post-harvest preservation and processing to reduce losses, ensure uniform quality of rice products, and fully satisfy food hygiene and safety regulations.

EVN gets nod to develop major thermal power plant in Quang Binh

The estimated investment for the project, which was designed to have a capacity of 1,200 megawatts, will include EVN’s equity of more than VND9.6 trillion and loans of over VND38.5 trillion, the local media reported.

The first generator of the plant is expected to be put into commercial operation in 2028 and the second generator in the following year.

The prime minister has urged the government of Quang Binh Province to accelerate the issuance of the investment registration certificate, the handover of land for EVN and the conversion of the land use purpose as well as to supervise the execution of the project. The Government leader has also asked the province to coordinate with the Ministry of Natural Resources and Environment and EVN to assess the possible impacts of the project on the environment.

Meanwhile, EVN must be responsible for capital mobilization solutions of the project. It must also ensure the effectiveness of the State capital poured into the project.

Vietnam urged to increase added value for rice industry

The Ministry of Agriculture and Rural Development has granted approval to a project aimed at restructuring the Vietnamese rice sector by 2025 and 2030, with a primary focus on improving the sector’s added value.

Under the scheme, the local rice sector will boost restructuring, meet domestic consumption demand, constantly ensure national food security, improve the quality and nutritional value of products, and establish.

Furthermore, restructuring operations will aim to adapt to and mitigate climate change, whilst making use of natural resources in an effective manner, protecting the environment, increasing farmer income, and exporting high-quality rice.

With regards to rice exports, the sector has set the aim of exporting five million tonnes of rice by 2025 and four million tonnes by 2030, of which fragrant, specialty and japonica rice will account for the largest proportion with 40% and 45%, respectively.

Most notably, despite the rice export volume enduring a downward trajectory, the quality and price of rice has significantly improved in recent times.

According to experts, to take full advantage of free trade agreements (FTAs) such as the EU-Vietnam FTA (EVFTA), the Regional Comprehensive Economic Partnership (RCEP), and the UK-Vietnam FTA (UKVFTA), the rice sector will be required to improve product quality to meet the stringent requirements of importers.

They also emphasised the necessity of developing rice farming areas that grow high-quality rice varieties, with a specific focus on boosting connectivity among production, consumption, and export, whilst strictly controlling the maximum limit of pesticide residue and origin traceability.

The sector has been advised to apply preservation and processing technologies in the post-harvest period to churn out high-quality products that are in line with food hygiene and safety regulations.

HCM City: Korean bank proposes investment study for Metro Line No. 5

The Export-Import Bank of the Republic of Korea (KEXIM) has asked Ho Chi Minh City’s authorities for permission to conduct an investment study for Phase 2 of Metro Line No. 5, set to be carried out in the public-private partnership (PPP) format.

In its letter sent to the Chairman of the municipal People’s Committee and the city’s Management Authority for Urban Railways (MAUR), KEXIM said it will soon provide funding for the update of the project’s pre-feasibility study, which covers technical, financial, and legal aspects, according to the MAUR.

The bank noted that members of the research group and participating investors have experience in building and operating urban railway routes, including Metro Line No. 9 of the RoK’s Seoul capital, in the PPP format.

The MAUR said it had a working session on January 19 with some investors and consultancies from the RoK to discuss the study and related orientations for the project.

The Korean side, including KEXIM and some businesses and consultancies, presented the plan to update the pre-feasibility study, whose final version is expected to be submitted by the end of 2021.

The pre-feasibility study for Phase 2 of Metro Line No. 5 was previously financed by the Korea International Cooperation Agency (KOICA). However, due to certain objective reasons, the project was unable to be funded through official development assistance (ODA) loans, but the PPP format.

The 23.39km-long Metro Line No. 5 is developed in two phases.

The first one, from the Bay Hien intersection to Sai Gon Bridge, is about 8.8km long and invested with around 1.66 billion USD. It is funded with ODA capital from the Spanish Government, the Asian Development Bank (ADB), the European Investment Bank (EIB), and the German development bank KfW.

Meanwhile, Phase 2 is about 14.5km long./.

Aquatic product exports forecast to reach 9.4 billion USD in 2021

Vietnam’s aquatic product exports are expected to rake in 9.4 billion USD this year, a surge from 8.5 billion USD in 2020, driven by a strong rebound in demand of export markets and the support of free trade agreements, according to the Vietnam Association of Seafood Producers and Exporters (VASEP).

Analysts of FPT Securities JSC (FPTS) predicted Vietnam to continue increasing shrimp output in 2021, reaching 730,000 tonnes, up 4 percent year-on-year.

Stable supply will be an advantage for Vietnamese shrimp exporters to expand their market shares in export markets.

The prices of exported shrimps are also forecast to rise slightly by 5 percent to an average of 9.6 USD per kg, according to an FPTS report.

Meanwhile, experts from BIDV Securities Company said that it is difficult for Vietnam’s shrimp sector to enjoy high export growth in 2021, as the production of competitive countries such as India and Ecuador begin strong recovery, especially when the two countries’ shrimp prices are 10-15 percent lower than that of Vietnam.

However, the shipment of shrimps to the EU, which accounts for 21 percent of Vietnam’s total shrimp export turnover, is expected to be supported by the EU-Vietnam Free Trade Agreement (EVFTA).

The tariffs imposed on frozen shrimps were slashed to zero percent immediately after the EVFTA became effective on August 1, 2020, while those on processed shrimps will reduce to zero percent from January 1, 2027.

The output of Vietnam’s tra fish is also forecast to maintain uptrend this year.

FPTS expects that the export will bounce back thanks to increasing demand of Vietnam’s main importers such as China, the US, and the EU.

Vietnamese businesses’ efforts to focus on value added processed products which meet all requirements on food safety and origin traceability of products will be paid off, with the export value of processed tra fish to surge in 2021./.

Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes