Business

Farmers look to capitalise on increased agricultural product exports to China

Published

4 months ago

May 23, 2023

The quantity of Vietnamese agricultural goods exported to China via border gates in the northern mountainous province of Lao Cai has witnessed a significant upswing this year, surpassing figures from previous years.

Farmers look to capitalise on increased agricultural product exports to China hinh anh 1

Vehicles at Kim Thanh International Border Gate in the northern mountainous province of Lao Cai.(Photo chinhphu.vn)

Hanoi – The quantity of
Vietnamese agricultural goods exported to China via border gates in the
northern mountainous province of Lao Cai has witnessed a significant upswing
this year, surpassing figures from previous years.

The newfound export surge can be attributed to
China’s recent modifications in its COVID-19 prevention policies, leaving
farmers in a state of anticipation.

Vang Kim Sinh, a farmer of Tan Tien Hamlet, Trinh
Tuong commune, Bat Xat district said he and his neighbours have shifted to
plant bananas instead of cassava to earn a living in recent years.

The technique of growing bananas is simple,
bringing higher income than growing cassava, he said.

He said since the beginning of this year he
has sent several containers of bananas through Kim Thanh International Border
Gate.

One container contains about 3,300 boxes of
bananas, he said.

He said that the price of bananas, which are
exported to China, is more than doubled that of bananas he sells to the
domestic market.

When China closed its door due to the pandemic,
he said that bananas from the commune were only sold domestically with the
highest price of 3,000 VND (0.12 USD) per kg.

Now, he said the bananas had been exported to
China’s Yunnan province with the price over doubled, about 7,000 VND (0.30 USD)
per kg.

Statistics from Lao Cai province’s Customs
Department showed that in the first quarter of this year, import and export
turnover through local border gates reached nearly 186 million USD.

The export turnover reached 92.4 million USD,
about 90.1% higher than last year, while the import turnover reached 93.2
million USD, about 15% higher than last year.

Agricultural products are still the main exported
products, reaching more than 71 million USD, about 63.2% higher than last
year, Chinh phu (Government) News reported.

Agricultural products account for 76.8% of the
total export turnover. Main agricultural products include dragon fruit, banana,
rambutan, watermelon, cassava and durian.

Creating favourable conditions

Duong Xuan Sinh, deputy director of the
provincial Customs Department, said that the department had deployed the
electronic customs model and electronic tax collection-and-payment model to
assist businesses in saving time and costs in taking customs clearance
procedures at border gates.

The department has also maintained good
infrastructure to serve the operation of the “priority stream” for
agricultural products through a pair of international road border gates of
Vietnam’s Kim Thanh and China’s Beishan since June 28, 2019, he said.

Besides, he said that the border guard force had
arranged more staff to regulate traffic at the border gates, instructing
drivers to stop and park at the right places.

He said about 300 vehicles carrying imported and
exported goods run through Lao Cai International Border Gate daily.

“We have restored all activities on the
border areas to facilitate economic development and trade at the border gate,”
said Lieutenant Colonel Nguyen Trong Tue of the Lao Cai International Border
Gate’s Border Guard Station.

In addition, the border guard force has also
created favourable conditions for entry and exit for people, vehicles and goods
through the Kim Thanh International Border Gate based on the principle of
strictly implementing the agreement on border gates and regulations on the
management of the land border gate between Vietnam and China.

Enhancing connectivity

China has been an important export market for some agricultural
and aquatic products of Vietnam, and it is the largest export market for
Vietnamese vegetables, fruits, cassava and products from rubber. After the US
and Japan, it is the third largest export market for Vietnamese seafood
products.

Some commodity groups such as seafood, fruit, and coffee of Vietnam
are among the ten largest exporters to China.

During an official visit to China by Party General Secretary Nguyen
Phu Trong in late 2022, the two sides already signed several Protocols on the
export of agricultural products.

China officially reopened border gates on January 8 this year
after it changed COVID-19 prevention policies, offering an opportunity for many
types agricultural and aquatic products of Vietnam to export to China.

To Van Quang, China’s Dong Dang Investment Industry Company
Limited, said that this year, the company plans to buy 35,000 tonnes of durian,
including 15,000 tonnes from Vietnam.

Besides, the company also demands to buy 120,000 tonnes of purple
sweet potatoes and seafood such as catfish and pit fish.

With great help from large State-owned enterprises in China and
competent authorities in Vietnam, the company is promoting the establishment of
the Vietnam Seafood Trading Centre in Fangchenggang City in Guangxi Province,
he said.

Fangchenggang City’s administration has started the construction
of two large-scale seafood cold storages. The first cold storage has an area of
600 acres (2.4 million sq.m) with the capacity to store 200,000 tonnes of
seafood. He said the second cold storage has an area of 1,000 acres (over 4
million sq.m) with a storage capacity of 600,000 tonnes of seafood.

Therefore, he said Vietnamese seafood could enter the Chinese
market in large quantities very quickly in the future.

He added that the centre in Fangchenggang City is also a place
where buyers and sellers can directly meet and transact.

Vu Ba Phu, Director of the Vietnam Trade Promotion Agency under
the Ministry of Industry and Trade, said that trade promotion activities with
the Chinese market have been active since the first months of this year.

He said this year’s export promotion activities for the Chinese
market focus on supporting Vietnamese businesses and localities to export their
products through official channels to China.

Vietnam has a northern border with China with a length of over
1,449 km. Cross-border import and export activities in seven northern border
mountainous provinces, with seven international border gates, six bilateral
border gates, and 21 sub-border gates, are getting busier and busier./.

Source: https://en.vietnamplus.vn/farmers-look-to-capitalise-on-increased-agricultural-product-exports-to-china/253389.vnp

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Business

Development of Vietnamese brands in CPTPP member markets under discussion

Published

1 hour ago

October 1, 2023

TienphongNews

Solutions to promote the development of Vietnamese brands in member countries of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) agreement were discussed at a seminar hosted by the Cong Thuong (Industry and Trade) magazine in Hanoi on September 27.

Development of Vietnamese brands in CPTPP member markets under discussion hinh anh 1

At the event (Photo: VNA)

Hanoi – Solutions to promote the development of Vietnamese brands
in member countries of the Comprehensive and
Progressive Agreement for Trans-Pacific Partnership (CPTPP) agreement were discussed at a seminar hosted by the Cong Thuong (Industry and Trade) magazine in Hanoi on September
27.

Ngo Chung Khanh, Deputy Director of the Multilateral Trade Policy
Department under the Ministry of Industry and Trade (MoIT), said Vietnam has enjoyed stable
growth in its exports to Canada and Mexico since the CPTPP agreement took effect in January 2019, even during the
COVID-19 pandemic or amidst geopolitical fluctuations in the world.

Additionally, Vietnam’s trade surplus with the two markets usually accounts for
one-third to half of the combined trade surplus with countries, Khanh stressed.

Khanh pointed out ample room to promote exports to Canada,
Mexico and Peru, but noting that the image of Vietnamese brands in these
markets still remains modest.

According
to Trade Counselor Tran Thu Quynh from the Vietnam Trade Office in Canada, the
North American country is now one of Vietnam’s 10 most important trading
partners globally.

According to data from the Canadian government, including
transshipment through the US, Vietnam’s exports to Canada in 2022 increased by
26.4% in trade value compared to 2021.

Notably, five years after the implementation of the CPTPP,
Vietnam’s exports to Canada rose to 9.9 billion USD in 2022 from 4.1
billion USD in 2018.

The data from Vietnam Customs indicates that Vietnam’s export
value to Canada increased by a remarkable 110% over five years, meaning that Canada
is one of the billion-USD markets with the highest export growth among the
CPTPP member countries.

Quynh said CPTPP serves as a lever to encourage businesses from
both countries to pay more attention to each other’s product structures and
markets. It also helps promote the further development of supply chains, and transportation
and logistics services between Vietnam and Canada.

However, the utilisation of preferential tariffs under
the CPTPP still remains low. Up to over 60% of Vietnam’s exports to the country are products from foreign-invested
firms with their own brands, while Vietnamese businesses primarily export raw
materials or processed products.

Quynh advised domestic exporters to promote connection in production,
investment and development of technology and brand with Canadian partners, towards
effectively exploiting the CPTPP agreement.

According to Quynh, apart from supporting businesses in trade
promotion activities, participating in trade fairs and exhibitions, and seeking
orders, the Vietnam Trade Office in Canada always pays heed to raising awareness of how to utilise the CPTPP in Canada, and benefits and opportunities
provided by the trade agreement.

It also collaborated with Canadian ministries and sectors to hold
seminars, thus helping local firms understand more about opportunities to
partner with Vietnamese companies, she added./.

Source: https://en.vietnamplus.vn/development-of-vietnamese-brands-in-cptpp-member-markets-under-discussion/268696.vnp

Business

HSBC says Vietnam remains an appealing destination for global enterprises

The HSBC Global Connections survey found that Vietnam’s economic resilience and competitive wages rank foremost in attracting international firms.

Published

2 hours ago

October 1, 2023

TienphongNews

fdi_2_121034318-1

According to the study, 27 percent of respondents ranked Vietnam’s trained labor as one of the most appealing features for foreign enterprises, highlighting the country’s desirability as a manufacturing base.

The same percentage is drawn to Vietnam’s expanding consumer market, emphasizing the allure of rising consumer income. Meanwhile, 23% believe that the country’s rising digital economy is a crucial selling factor for foreign corporate expansion.

Many respondents stated they were drawn to the country because of its high smartphone penetration rate and thriving start-up scene.

According to Tim Evans, CEO of HSBC Vietnam, the country, which has become known for its quick economic growth, also stands out as one of the best performers in the ASEAN area due to its excellent economic resilience during and after the COVID-19 pandemic.

Tim Evans noted that the country’s resiliency, together with its hardworking, competent workforce and attractive cost structures, continues to attract significant foreign direct investment (FDI).

However, Vietnam is more than an “FDI in, export out” story. The country’s rapidly increasing middle class is also a great potential for multinational corporations eager to get into the consumer story that will see Viet Nam become the world’s tenth largest consumer market by 2030, he observed.

“Despite some short-term headwinds, Vietnam remains an attractive destination for foreign businesses, and we continue to see very strong interest in the Viet Nam story from customers across the HSBC network,” said the CEO of HSBC Viet Nam. According to new research commissioned by HSBC, international businesses from nine major economies are becoming more enthusiastic about their growth prospects in Southeast Asia.

They anticipate 23.2 percent growth in the region’s sales over the next 12 months, compared to 20.1 percent in the previous year’s survey, and 4-5 times the pace of GDP development in Southeast Asia. This demonstrates foreign firms’ growing trust in the region.

HSBC commissioned an online survey of 3,509 enterprises from nine markets: mainland China, India, the United Kingdom, France, Germany, the United States, Australia, Hong Kong, and GCC countries (United Arab Emirates, Saudi Arabia, Bahrain, Qatar, Oman, and Kuwait).

Respondents to the survey were key decision-makers from companies with an annual revenue of at least $5 million that are already doing business in Southeast Asia or are considering doing so. The survey was open from July 25 through August 2, 2023.

Source: https://e.nhipcaudautu.vn/economy/hsbc-says-vietnam-remains-an-appealing-destination-for-global-enterprises-3355005/

Business

Interest rates for social housing developers and buyers proposed to be cut

Property market specialists advocated lowering interest rates on loans for investing in or purchasing social housing items to 4.5-6% per year, down from the current 8.2-8.7%.

Published

3 hours ago

October 1, 2023

TienphongNews

interest_rates_231549687-1

Vietnam Real Estate Association (VNREA) polls show that social housing investors and buyers must take out high-interest loans. Investors pay 8.7% and homebuyers 8.2% annually. Buyers and investors are struggling with these interest rates.

The loan package of VND 120 trillion, according to Le Hoang Chau, Chairman of the HCM City Real Estate Association (HoREA), does not match the conditions of a preferential credit package for social housing. A preferred financing package for social housing projects must meet two critical criteria: a low-interest rate and a long repayment period.

Chau claims that when compared to low-income people’s financial capabilities, the average interest rate commercial banks charge buyers is still too high.

According to Nguyen Chi Thanh, Deputy Chairman of the Vietnam Real Estate Brokers Association, interest rates for qualified buyers of social housing projects remain high. At the same time, buyers of social housing have substantially lower incomes than real estate prices.

As a result, Thanh believes that interest rates for homebuyers must be reduced.

Many studies show that workers’ earnings are frequently quite low. According to the Vietnam General Confederation of Labour, 75% of them must borrow money to cover their living expenses. They are unable to purchase social housing since the loan interest rate is 8.2% per year.

Someone with a steady monthly salary of VND 12 million must repay the loan at a high-interest rate over a period of up to 37 years.

He claims that if they can borrow at a lower interest rate of approximately 4.5% per year, the payment term will be reduced to about 19 years.

VNREA has recommended a 6% annual interest rate for social housing developers and a 4.5% annual interest rate for homebuyers, which is lower than the current rates of 8.7% and 8.2%.

In addition, VNREA suggests that the state implement appealing policies for investors, such as land plots, investor selection, and land allocation. The time required to complete investment procedures should be reduced from 24-36 months to 12 months.

VNREA advises real estate companies to rearrange their goods and select housing categories based on buyer income and market demand. They must also strengthen their corporate governance capabilities and re-determine the selling price.

At the same time, they must strictly adhere to investor agreements.

According to the Ministry of Construction, around 108 social housing projects are now being invested in and built.

Based on reports from 11 provinces and centrally-run cities, the ministry has issued a list of 24 eligible projects to participate in the 120 trillion VND credit package. These projects have a total investment capital of 31.67 trillion VND. The borrowing need for the projects is 12.44 trillion VND.

Ten projects of social housing and housing for industrial park workers began development in the first seven months of this year, totaling 19,853 units.

Source: Vietnamplus

Source: https://e.nhipcaudautu.vn/real-estate/interest-ratesfor-social-housing-developers-and-buyers-proposed-to-be-cut-3354687/