HCM City (VNA) – An online conference was held in Ho Chi Minh City on May 5 to seek measures and strategies to effectively approach and exploit the promising but choosy European market.
Tran Thi Trang, head of the Training Office of the HCM City Center for Trade Promotion and Investment (ITPC) said that Europe is one of the largest trade partners of Vietnam, while Vietnam is the second biggest trade partner of Europe in Southeast Asia.
Despite impacts from the COVID-19 pandemic , trade exchange between the two sides has still been maintained, especially since the EU-Vietnam Free Trade Agreement (EVFTA) took effect, import-export activities have been on the rise and forecast to continue to grow in the future, she said.
Meanwhile, Zachaier, director for supply chain at Source of Asia (SOA), said that Europe is a potential market that is the target of many countries. Vietnam is the one of the important trade partners of Europe with outstanding advantages thanks to the EVFTA. By the end of 2020, four months after the deal took effect, Vietnam’s exports to the EU saw positive signs despite impacts from COVID-19.
Vietnam’s exports to Europe reached 42 billion USD, he noted, adding that the figure has accounted for only 2 percent of the total import value of the EU, showing that there is large room for Vietnamese goods to penetrate into the market.
He said that European consumers are paying greater attention to sustainability, including the origin trace, social responsibility and environmental protection.
In that context, Vietnamese exporters should assess the sustainability of their products and the regulations in the market, thus designing strategies to adjust the supply chain to suit international standards and rules, he suggested.
Huynh Thanh Trung, Director of LeanWares Company, said that Vietnamese enterprises have seen limitations in high added value stages such as designing, development research and marketing.
He said that Vietnamese businesses should focus on building standardised factories, while controlling the supply chain in an effective manner to meet the demands of the European market .
Do Van Huy, Manager of the Shire Oak International project in Vietnam, said that European consumers care a lot about the environment and climate change, and prioritise products produced with green energy.
Dinh Thi Tuyet Nhung, SOA’s international market development team leader, held that the similarity of successful enterprises such as Vinamilk, Viettel and Kova is focusing on their product quality right from the stage of developing the domestic market. Once winning the home market, they started studying and approaching foreign markets, she said./.
Vietnam is the largest gold market in Southeast Asia, according to a recent study of the World Gold Council (WGC).
|Customers buy gold at Phu Quy gold shop in Hanoi. VNA/VNS Photo Tran Viet|
The WGC also announced the country among the top 10 markets in the world, saying consumer demand for gold in Vietnam reached 39.8 tonnes in 2020, higher than the demand of 37.6 tonnes in Indonesia and 9.4 tonnes in Singapore.
The study of 2,000 local investors in March last year also said gold is the top asset class for 68 per cent of Vietnamese investors while the outlook for the precious metal was positive, adding 81 per cent of people who bought gold considered buying more. The average rate for buying more gold is 45 per cent globally.
According to the WGC, demand for gold in Vietnam is still very high as Vietnamese people believe gold helps fight inflation and currency fluctuations, helping investors feel secure in the long run. At the same time, new demand for gold also arises by buying gold on digital platforms or through available channels such as a bank.
In the study, 76 per cent of respondents were in favour of opening a gold investment account at a bank to support and formalise the gold market.
“Research shows demand for gold in Vietnam is strong and there is support to develop new investment products such as buying gold through digital platforms or opening a gold investment account,” Andrew Naylor, director in charge of ASEAN at the World Gold Council, said.
Ending the day (Monday), SJC gold price was bought at VND55.2 million (US$2,379) and sold at VND55.6 million ($2,396) per tael. Compared with gold prices listed on the global site of Kitco at $1,785 per ounce ($2,142 per tael), each tael of gold in Vietnam was $254 higher than the world price.
|More and more US-based businesses find Vietnam a good replacement for China|
Hong Kong-based QIMA specialised in providing supply chain compliance solutions has just released a survey of over 700 companies across the globe. Of this, the number of US-based respondents selecting the Southeast Asian country as the leading sourcing location has doubled against four years ago, to 43 per cent in early 2021.
Similarly, 25 per cent of EU companies also listed Vietnam as one of the three leading sourcing markets in this year’s first quarter, down 15 per cent on-year but up 11 per cent against the same period of 2019.
Of all establishments switching to suppliers in new geographic regions last year to avoid COVID-19 impacts, nearly one-third revealed that the 100-million population country is one of their best options. For US-based business, the rate was even higher, at 40 per cent.
QIMA also forecast the trend to continue this year. Of the companies asked for finding new suppliers over the next 12 months, 38 per cent of US-based establishments and 28 per cent of those from the EU stated that they are planning to relocate some sourcing to Vietnam or buy more from current suppliers there. On the other hand, only 6 per cent of US-based brands and 11 per cent of those from the EU were looking for suppliers in China.
Also, US-based respondents showed some signs of dissatisfaction with Chinese sourcing. While one-third of them are planning to purchase more from Chinese suppliers in 2021, almost as many reported plans to completely stop buying from the market.
Nevertheless, words and actions often differ. Pointedly, in the survey, 73 per cent of companies said they had plans to look for new suppliers in 2020 but only 38 per cent were able to follow through on those schemes. For brands headquartered in the US, 93 per cent declared to diversify supply chains in early 2020 but only 49 per cent carried out these plans.
By Huong Anh
The national brand program needs to select some high-quality and high-yield rice varieties to name them in a simple, easy-to-remember, easy-to-pronounce way along with the place where the rice is grown (Soc Trang Vietnam rice, for instance) or the name of the creator of that rice variety (like Mr. Cua rice) to easily register for brand protection abroad.
Although ST25 rice was awarded as the world’s best rice in 2019, a small number of British people know about it, and the marketing effectiveness in the UK market is not much.
By Van Phuc – Translated by Thanh Nha
The index was in the green throughout the day, peaking at 1,265 points in the afternoon before closing with a 14-point gain.
Trading value on the Ho Chi Minh Stock Exchange (HoSE), on which the index is based, was VND21.2 trillion ($922 million), down 1.26 percent. The session saw 330 tickers gain and 93 lose.
Ticker TCB of biggest private lender Techcombank contributed most to VN-Index’s gain this session with 2.4 points.
It rose 5.9 percent to a new historic peak, its fifth gaining session in a row. It has gained 16.47 percent in the last five sessions.
Meanwhile, VCB of state-owned lender Vietcombank contributed 2.08 points to the index’s growth, and the ticker closed with a 2.12 percent gain.
GAS of state-owned Petrovietnam Gas pushed the index up 1.12 points and rose 2.6 percent this session.
HDB of private lender HDBank was the biggest blue-chip gainer at 6.8 percent, hitting its new peak for this year.
KDH of real estate firm Khang Dien House fell 1.1 percent, ending its four-session gaining streak, while PDR of Phat Dat Real Estate Development dropped 1 percent.
Foreign investors were net sellers for the third session in a row to the tune of VND779.6 billion, with the strongest pressure on HPG of steelmaker Hoa Phat Group, VRE of mall operator Vincom Retail and CTG of state-owned lender VietinBank.
The HNX-Index for stocks on the Hanoi Stock Exchange, home to mid and small caps, rose 1.16 percent, while the UPCoM-Index for the Unlisted Public Companies Market rose 1 percent.