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Agriculture has long been the backbone of Vietnam’s economy and has posted a range of achievements in the 30 years since the country’s economic reform (Doi Moi) process got underway.

In the thirty years of Doi Moi, Vietnam’s agricultural sector brought the country out of a prolonged period of poverty and became a net exporter in 1989. Local agriculture has maintained average growth of some 3.5% each year in the time since.

Vietnam’s agricultural sector posted export value of a mere 486.2 million USD in 1986, when the Doi Moi process kicked off. Fourteen years later, the figure had soared to 4.2 billion USD and by 2018 stood at a record 40.2 billion USD. With ten commodities earning annual export value of more than a billion dollars, Vietnam now counts among the world’s largest exporters of agro, forestry, and fisheries products.

In 2018, the agricultural sector’s GDP reached 3.76%, against Vietnam’s nearly 7%, revealing the important contribution the sector makes to the national economy.

Still, given the complex developments of climate change and the challenges posed by increasingly deep international cooperation, the local agricultural sector must continually reform to adapt and thrive.

The Government has set several targets for the agricultural sector over a ten-year timeframe, including Vietnam joining the list of the 15 leading countries with the most developed agricultural sector and the top 10 in farm produce processing, and becoming a global production hub for wood and wooden products as well as a major shrimp production house for the world. Annual agricultural growth is set to be at least 3%, with annual export value of between 42 and 43 billion USD./.VNA



Vietravel Airlines to offer 50,000 tickets at zero dong starting today



Passengers on board a Vietravel Airlines plane. The new carrier started opening ticket sales for commercial flights from 1 a.m. today, January 19 – PHOTO: COURTESY OF VIETRAVEL AIRLINES

HCMC – Vietravel Airlines began selling tickets for commercial flights from 1 a.m. today, January 19, with 50,000 tickets at zero Vietnam dong (excluding taxes and fees), with many other special deals being launched as part of the newest local air carrier’s promotional program.

According to Vietnam’s sixth carrier, it will offer 50,000 zero-dong tickets from January 19 to 25 or until the tickets are sold out.

Passengers can book tickets on its website for commercial flights operated on the HCMC-Hanoi/Phu Quoc/Danang/Nha Trang and Hanoi-Phu Quoc/Danang/Hue routes.

Vu Duc Bien, general director of Vietravel Airlines, said that its first commercial flights are scheduled to take off on January 25.

The carrier is set to operate 1-2 daily flight(s) on each route and will increase the flight frequency as well as expand its flight network, especially during the upcoming Lunar New Year or Tet.

Aside from launching zero-dong tickets, the carrier is also offering various special deals. For instance, its first customers will receive vouchers and those traveling in groups can get a partial refund.

Chairman of Vietravel Airlines told the Saigon Times that the carrier has not announced its detailed ticket prices for commercial flights. Its airfare will be lower than that offered by national flag carrier Vietnam Airlines, but will be higher than that of local low-cost carrier Vietjet Air on some routes.

Vietravel Airlines is the first leisure airline in Vietnam. Its fleet comprises two aircraft, with a third one expected to arrive on January 21.


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Vietnam becomes fourth most important market for Taiwanese investors

Vietnam was rated by businesses from Taiwan (China) as having great potential for development prospects, with the country’s importance increasing from 18% in 2018 to 24% by the end of 2020.



This assessment was given at a recent seminar held by PwC Taiwan, a member firm of the PwC Global Alliance in Taiwan (China), aimed at analysing and discussing the digital transformation strategy of the six leading ASEAN countries, including Vietnam.

Despite hundreds of Taiwanese investors being unable to enter the country to survey and invest in new projects due to the nation’s entry suspension, foreign direct investment (FDI) capital from Taiwan (China) continued to pour into the country last year, with an increase of 53%.

Of which, there were many major projects in the electronics sector, such as Pegatron project in Hai Phong worth US$485 million, in addition to the Wistron project in the northern province of Ha Nam valued at approximately $300 million.

In the context the ongoing US-China trade war and potential risks, Taiwanese businesses all recognise and evaluate the country as a crucial link in Southeast Asia in terms of supply chain shifts, with a particular focus on the electronics and telecommunications sector.

Hundreds of industrial parks with attractive incentives are gradually transforming northern Vietnamese provinces into technology production ecosystems, while southern provinces still prove to be attractive for Taiwanese investors. This is the case in traditional fields such as fiber, garments and textiles, footwear, mechanics, and wood processing.

Vietnamese digital transformation promotion attracts greater investment

PwC Taiwan said that the digital transformation being promoted by the Vietnamese Government will almost be a free “incentive” policy aimed at all foreign investors in the nation. This is due to digital transformation not only boosting production and business efficiency nationwide, but also helping to reduce production costs faced by firms.

Furthermore, Vietnamese economic development indicators in 2020 were highly impressive. In addition, the market and its population of roughly 100 million people, the majority of whom are young consumers enjoying rapidly increasing incomes, will prove to be very attractive to Taiwanese businesses in the domestic consumption sector.

Taiwan (China) has so far opened branches of more than 10 banks throughout Vietnam, with the consumer payment field making use of electronic payment applications as a means of promoting future development. This is also part of digital transformation in order to develop a transparent and competitive payment environment in the country.

Due to these factors, there remains ample room for domestic and foreign banks to exploit e-commerce, especially in the context that per capita Vietnamese income is forecast to increase by between 6% and 10% annually throughout the 2021 to 2025 period.

Challenges remain ahead

According to Taiwanese digital economists, Vietnamese digital transformation is set to encounter some difficulties, with three main bottlenecks, including human resources, applied technology platforms, and the gap between large and small and medium sized enterprises. These are similar to the issues Taiwan (China) has been working hard to solve in recent years.

Despite these challenges, the implementation of commitments from many new generation free trade agreements (FTAs) will serve as a tool to prompt Vietnamese enterprises to conduct digital transformation more strongly in order to meet strict requirements set by development partners such as the EU and Japan.

Moreover, these FTAs also represent the driving force for enterprises with high technology and new technology to invest in the nation to promote production and business. According to the latest data released by the Ministry of Economic Affairs of Taiwan in 2020, the nation was among the top five countries and territories that Taiwanese enterprises invest in, after Hungary, Hong Kong (China), and the US.

In terms of the ASEAN region, Taiwanese investment in the country cumulatively accounts for roughly 55%, far exceeding second place which is Indonesia, making up about 23%.

The Ministry of Economic Affairs of Taiwan indicated that if the Vietnamese Government considers loosening permission for Taiwanese businessmen and investors to enter the nation to survey for investment in 2021, the number of new investment projects will increase above the level recorded last year.

Source: VOV


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Azelis acquires a majority stakes in MKVN Chemicals and Viet Chemi

Azelis, a leading distributor of specialty chemicals and food ingredients, has increased its market presence in Vietnam by purchasing a majority stakes in MKVN Chemicals and Viet Chemi Trading and Service.



Value of the deal which was done through their parent company Bellekimia Singapore was not disclosed in a statement posted on ACN Newswire and Azelis’ website. Both companies are active in personal care, industrial chemicals, agro and food segments as well as supply chain solutions.

Founded in 2000 and with offices in Hanoi and Ho Chi Minh, MKVN Chemicals and Viet Chemi have a strong reputation in Vietnam, serving first-class international principals and 700 customers.

Kamal Hezry Kassim, Managing Director of MKVN and VIET CHEMI, will continue to manage the business and will report to Azelis.

“Growth in Asia Pacific has been one of the strategic priorities for Azelis. By strengthening our presence in Vietnam, we will gain better coverage in the entire region which is key for us to attract new mandates with our existing principals,” said Laurent Nataf, CEO & President of Azelis Asia Pacific.

Vietnam is the 15th most populated country in the world with a very young workforce, increasing purchasing power and growing access to premium products, the statement said.

Azelis has been active in Vietnam since 2015 and employs some of the best industry professionals in the country. Azelis runs application laboratories for Personal Care, Home Care, CASE and Textiles in Vietnam.


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