Businesses advised to stay vigilant to maintain export growth
Despite a rise in export revenue in the first four months of this year, experts suggested that businesses should not be too optimistic as the COVID-19 pandemic has seen complicated developments both in and outside the country.
Statistics from the Ministry of Industry and Trade (MoIT) showed that export value in April grew 44.9 percent over the same period last year, while that in the first four months of 2021 expanded 28.3 percent year on year to 103.9 billion USD.
The domestic economic sector earned 25.77 billion USD, up 12.8 percent, while the foreign-invested sector, including crude oil, raked in 78.14 billion USD, a rise of 34.4 percent and accounting for 75.2 percent of the total export value in the January-April period.
Tran Thanh Hai, Deputy Director of the Agency of Foreign Trade under the MoIT, said that in the first four months of this year, 19 products enjoyed export turnover of over 1 billion USD, accounting for 84.5 percent of the total export revenue, including five products earning over 5 billion USD.
Exports of agro-forestry-aquatic products reached 2.16 billion USD in April and 8.25 billion USD in the first four months of this year, up 7.9 percent year on year.
Meanwhile, fuel and minerals was the only group that suffered a reduction in export earnings, at 21.6 percent, to 922 million USD.
Hai said that processing sector was a bright spot in export in the first four months of this year with a rise of 31.2 percent to 89.73 billion USD.
Experts held that the export recovery of the majority of products will make important contributions to the country’s export revenue in 2021.
Meanwhile, imports in April reached 27 billion USD, up 43.5 percent year on year, resulting a trade deficit of 1.5 billion USD in the month. The figure in the first four months of this year was 102.61 billion USD, up 30.8 percent year on year, with a trade surplus of 1.29 billion USD.
Hai held that amid the complicated developments of COVID-19, businesses should be aware of changes in the world market to optimise opportunities and maintain the export growth trend.
The official advised exporters to further exploit markets in Africa and Oceania besides those in America and Europe.
It is forecast that import-export activities will continue to be expanded in the future when free trade agreements are being implemented in a comprehensive and effective manner, which will further facilitate Vietnam’s exports to other markets.
At the same time, prices of strong export products of Vietnam are forecast to rise, which will contribute to increasing export value.
However, according to MoIT’s Deputy Minister Do Thang Hai, import-export activities are still facing difficulties from difficult transportation, disrupted supply chains, and unstable market demands, as well as changes in food safety regulations in many markets.
He reminded businesses to continue improving their competitiveness and adaptation capacity to overcome difficulties, while actively reforming to tap new opportunities.
The deputy minister affirmed that in the future, the MoIT will continue to increase activities to support businesses in market expansion, administrative procedures, market information, while expanding trade promotions in online form to boost exports./.
VinFast to temporarily close Australian R&D division due to COVID-19
VinFast is planning to temporarily close its research and development (R&D) centre in Melbourne, Australia due to complications from the COVID-19 pandemic.
According to Australia-based newswire CarAdvice, the Vietnamese car maker will soon close its design and technical office in Port Melbourne after just over a year in the country. The establishment was home to nearly 50 former Holden, Ford, and Toyota engineers.
Responding to queries, VinFast stated that COVID-19 is the main reason behind the closure. The health crisis has hampered travel among the countries and the manufacturer is now looking to summon its strength to develop automobiles in Vietnam while the difficulties last. Employees who worked at the R&D centre will be arranged work in Vietnam.
However, VinFast’s Lang Lang test track in Australia will continue to operate normally.
VinFast in last June poured about $15-20 million to buy the test track and the emission laboratory in the suburbs of Melbourne. Its technical analyst department landed in the nation in December 2019.
Australia is one of the overseas markets VinFast eyes in its global expansion ambitions. According to Nguyen Thi Van Anh, deputy general director of VinFast, in the short term, the company focuses on researching vehicles using internal combustion engines and electric motors in Australia. VIR
Viet Nam needs to invest in processing, packaging of agricultural products: experts
Fruit and vegetable exporters should improve their processing technologies, especially in the post-harvest and packaging stages, to preserve their products longer and enhance their value, experts said.
Statistics from the Ministry of Agriculture and Rural Development show that the value of fruit and vegetable exports in the first quarter were worth US$950 million, a 6.1 per cent rise year-on-year.
Due to the impact of COVID-19, last year exports fell marginally to $3.26 billion.
According to Dang Phuc Nguyen, general secretary of the Viet Nam Vegetables Association, new-generation free trade agreements (FTAs) such as the EU-Viet Nam Free Trade Agreement (EVFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and Regional Comprehensive Economic Partnership (RCEP) are helping Vietnamese businesses increase fruit and vegetable exports this year.
The UK – Viet Nam Free Trade Agreement (UKFTA) effected late last year made more than 94 per cent of vegetables and fruits be exported tax-free, he said.
Many key products such as litchi, longan, rambutan, dragon fruit, and pineapple would benefit since tropical fruits originating from competing countries such as Brazil, Thailand and Malaysia do not have FTAs with the UK, he said.
Experts said to take advantage of opportunities and boost exports, businesses would need to improve the quality of their fruit and vegetable products to meet the standards required by importing markets.
Nguyen Quoc Toan, director general of the General Department for Agricultural Products Processing and Market Development, said post-harvest losses accounted for 10 per cent of rice output, 10-20 per cent of root and tuber crops and 10-30 per cent of fruits and vegetables.
In the Mekong Delta, Viet Nam’s rice bowl, post-harvest losses were worth more than VND3 trillion ($132 million) a year, he said.
The country’s preservation methods were basic and outdated, its transport, storage and cold storage were of poor quality, and there were very few deeply processed products, he said.
Packaging farm products also plays a very important role in preserving them after harvest, but Vietnamese businesses do not pay attention to that, according to experts.
Some 70 per cent of fruit and vegetable exports is to neighbouring China, mostly in fresh and unprocessed forms.
Little goes to South Korea, Japan, the US, or the EU because of storage and post-harvest processing limitations.
HCM City industrial revival well on course
With industrial production recovering month after month HCM City enterprises are confidently resuming investment and restoring production, especially of key industrial products, according to the city Department of Industry and Trade.
The index of industrial production (IIP) went up by 9.7 per cent year-on-year in the first four months of the year, a positive signal at a time when the global economy has been hit by the COVID-19 outbreak, it said.
Bui Ta Hoang Vu, the department’s director, said in April the IIP increased by 3.3 per cent from the preceding month, with manufacturing growing by 2.8 per cent and electricity production and distribution by 25.6 per cent.
A report from the city Statistics Office showed that production in the city’s four key sectors increased by 11.7 per cent year-on-year in April, with electronics output up by 27.7 per cent, mechanical engineering by 17.5 per cent, food and beverages by 7.4 per cent, and pharmaceutical chemicals by 2.4 per cent.
Of tier-2 industrial sectors, 24 out of 30 expanded in April, with wood, bamboo and rattan processing and electrical equipment manufacturing sectors achieving robust growth, it said.
But traditional sectors saw a decline of 4.4 per cent, with leather and leather-based products down by 3.2 per cent and garment production by 12.6 per cent.
The consumption index for the processing and manufacturing sectors increased by 11.9 per cent.
The stockpile index came down for a number of sectors, including by 33.3 per cent for coke and refined petroleum products, 19.7 per cent for motor vehicle manufacturing, and 11.8 per cent for other metal products.
Despite the pandemic and closed borders, the city’s exports managed to grow.
The Statistics Office said the city’s trade increased by 21.3 per cent, as exports rose by 13.9 per cent and imports by 27.7 per cent.
Foreign direct investment is a major driver of import-export growth.
China remained the largest export market for HCM City’s enterprises, buying over US$3.5 billion worth of goods, up 11 per cent, followed by the US, Hong Kong, Japan, and the EU.
Retail sales, services recover
Sales of retail products and services in the first four months of 2021 in HCM City rose by nearly 8 per cent year-on-year.
Revenues from them were worth VND366.2 trillion (US$15.85 billion)
In April alone growth was 23.3 per cent year-on-year.
April saw a large number of promotions during the Hung Kings Memorial Festival (April 21), Reunification Day (April 30) and International Labour Day (May 1), which boosted sales.
With the retail market recovering, many businesses, especially foodstuff and consumer goods companies such as Masan and Kido, saw revenues grow sharply in the first quarter compared to the same period last year.
Companies are now stabilising their production chains and cutting costs besides offering promotions to attract customers and stimulate demand.
The country’s retail products and services sales for the period were worth nearly VND1.7 quadrillion, a 10 per cent increase year-on-year.
Retail sales accounted for nearly 80 per cent of it.
April’s CPI inches down 0.04 percent
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Vietnam’s consumer price index (CPI) in April was down 0.04 percent against the previous month while up 2.7 percent year on year, according to the General Statistics Office.
The index in the first four months grew 0.89 percent year-on-year, the lowest growth rate since 2016.
Compared to the previous month, a downturn was seen in the prices of four out of 11 main groups of goods and services, with housing and construction materials taking the lead (0.43 percent), followed by post and telecommunication services; food and catering services, among others.
The General Statistics Office’s Price Statistics Department attributed the CPI price rise in the first four months to a hike in domestic and export prices of rice as well as the higher demand for the grain for the Lunar New Year (Tet) festival.
The core inflation rates in April and the first four months of 2021 compared to the same periods last year were the lowest in the past five years./.
E-commerce brings Vietnamese agricultural products to global market
Many Vietnamese small and medium enterprises are using e-commerce platforms to seek outlet for their products.
Chilica, a Vietnamese brand name of chili sauce and fermented ground chili, has become a familiar product of many Vietnamese families and those in many foreign countries over the world after nearly one year of being sold via e-commerce transactions.
In early 2020, Tomcare’s Director Nguyen Thanh Hien had to cancel the launch of the new product due to the Covid-19 outbreak. He then promoted and sold it on leading e-commerce platforms such as Tiki, Sendo, Lazada, Shopee. His efforts were paid off.
After promoting on the e-commerce sites in a few months, Chilica had its distributors in all provinces. Currently, this brand is found on the shelves of modern supermarkets such as Aeon Mall, Co. op Mart, and Satra, and being exported to Australia.
Furthermore, Tomcare Bio Tech Co., Ltd will sell products on Amazon in the coming months. “Through this channel, Chilica not only engages consumers in the US but also in many other countries in the world,” Hien told Hanoitimes.
Chilica was one of the many small and medium enterprises using e-commerce platforms to seek outlets for their products.
To expand customer network, the sachi nut business owned by Do Thi Kim Thong also decided to sell online. “Compared with traditional retail channels, sales on e-commerce floors have doubled in recent time,” said Do Thi Kim Thong, Chairman of Kim Thong Trade, Tourism, Import-Export Cooperatives said.
Like Hien and Thong, Tran Dinh Trong, Director of the Eatu Fair Agricultural Service Cooperative in Buon Me Thuot city in the Central Highlands province of Dao Lak, learned e-commerce sale techniques. She expected growth in sales and awareness of coffee products will increase through online platforms compared to traditional channels in the coming time.
“The quality of coffee is very good, but since it is sold through many intermediate channels, we don’t earn much profit. Through this e-commerce platforms, we believe more customers will understand our coffee, and our profit margin would increase,” she said.
Before the pandemic period, the item has not been popular on e-commerce channel. But now the situation is changing.
Due to the impact of the Covid-19 epidemic, online shopping is increasingly popular and an inevitable trend for the future.
Selling farm produce on e-commerce sites is a solution that local manufacturers and businesses have turned to in recent times in order to boost sales as well as the process of digital transformation, according to Dang Hoang Hai, Director of the Vietnam e-Commerce and Digital Economy Agency (iDEA) under the Ministry of Industry and Trade.
Since April 2020, Lazada has seen the opening of thousands of food and agricultural stores on the e-commerce site. Over the past six months, daily sales of fresh and processed food have grown enormously, especially during the year’s major shopping festivals, a representative from Lazada to Hanoitimes said.
Accelerating distribution channel via e-commerce
Recently, the iDEA shaking hands with leading e-commerce platforms have supported Vietnamese manufacturers to distribute goods via the online shopping channel, called the Vietnamese online booth.
The online booth also required local manufacturers to meet national standards in terms of quality, traceability and safety, so as to increase customers’ trust on products sold online. Many of them have opportunities to learn and build digital transformation plans, as well as operate on the e-commerce site amid the Covid-19 pandemic.
The iDEA will expand the cooperation with other e-commerce floors to promote Vietnamese products in the domestic and international markets in the coming time, Hai said.
Lazada’s representative said that the e-commerce floor will continue to expand cooperation with vendors and brands across the country to diversify supplies for customers. “The core issue is that the products need a reliable brand and a clear origin,” he said. “When customers receive the best quality products, they will shop on the online platforms more often.”
Hai Duong lychee to be sold on e-commerce sites
Hai Duong lychee brand has recently conquered many tough markets such as the US, Australia, EU, Japan, and Singapore.
Thieu lychee under the One Commune One Product Program (OCOP) in the northern province of Hai Duong will be sold on Vietnam’s leading e-commerce sites from May 18.
This is the first time Hai Duong farmers to sell their lychee online via Alibaba.com, Voso.vn, Sendo.vn and Lazada.vn.
Traceability is a mandatory requirement for agricultural products to be sold on the e-commerce platform, said Nguyen Thi Minh Thuy, Director of the VTPA’s Information Technology Application Center.
To bring products to e-commerce, the Hai Duong Department of Agriculture and Rural Development in coordination with the Vietnam Trade Promotion Agency (VTPA) has recently organized a training program on traceability and promotion activities on the e-commerce platforms.
The training course draw 100 participants who are manufacturers of OCOP-labeled products and members of the Agricultural Service Cooperative. Through the course, they will be taught on techniques to improve the product quality and boost sale via e-commerce.
It’s reported that Hai Duong’s agricultural products are plentiful but the farmers are still struggling to sell because they depend on traditional channels, which are unstable.
Hai Duong lychee brand has recently conquered many tough markets such as the US, Australia, EU, Japan, and Singapore.
Hai Duong has been growing lychee in more than 9,000ha with an estimated production of 55,000 tons per year. Around 40% of the province’s litchi output is sold in the domestic market, and 5% for export.
Despite the Covid-19 pandemic, the province had a successful litchi crop with an estimated volume of 43,000 tons in 2020. The total value reached a record of over VND1.1 trillion (US$47.5 million), up nearly 50% against 2019.
Hai Duong province to develop 10 – 15 more industrial parks
Hai Duong is planning to develop an additional 10 – 15 industrial parks (IPs) with the total area of about 5,000ha so that this northern province will become a truly attractive destination for investors, according to a provincial leader.
Secretary of the provincial Party Committee and Chairman of the provincial People’s Council Pham Xuan Thang told a recent meeting that Hai Duong always stands side by side with businesses and will create the best possible conditions for investors in IP infrastructure to build facilities and attract secondary investors, thus generating practical economic benefits for businesses and the province.
At the event, local leaders handed over the Prime Minister’s approval of investment intention to investors in four IPs and the provincial People’s Committee’s decisions to set up four others.
The Prime Minister has so far approved 18 IPs covering 3,517ha of land in Hai Duong, 14 of which have been estabished with the total area of 2,567ha.
Among the 14 established parks, 11 that cover 1,732ha of land have had their infrastructure completed with an average occupancy rate of 82 percent. They are accommodating more than 300 projects from 21 countries and territories, including 235 FDI projects worth over 4.7 billion USD and 64 Vietnamese projects worth some 17.67 trillion VND (772 million USD). Those projects have created jobs for more than 108,000 people and contributed 1.7 trillion VND to the budget annually.
Thang said that apart from developing IPs, Hai Duong will also step up investment promotion, strongly improve its business climate and Provincial Competitiveness Index, and attract investment in a more selective manner./.
ADB proposes ending funding for coal power plants
The Asian Development Bank (ADB) will stop financing new coal power plants, the main source of power supply in developing countries, under a draft energy policy released earlier this week.
The ADB, which provides loans and grants for projects in the poorest countries in the Asia Pacific region, said its current policy was “no longer adequately aligned with the global consensus on climate change”.
“Coal and other fossil fuels have played a large part in ensuring access to energy for the region’s economic development, but they have not solved the energy access challenge, and their use harms the environment and accelerates climate change,” the Manila-based bank said in the document.
The lender will also no longer fund “any coal mining, oil and natural gas field exploration, drilling or extraction activities”, the document said.
However, under certain conditions, it would provide funds for natural gas projects and “hybrid electricity solutions” involving fossil fuels as backup systems, according to the draft.
Between 2009 and 2019 the ADB funnelled 42.5 billion USD into energy sector projects in Asia, where around 60 percent of electricity is generated by coal, its data show.
The final version of the energy policy is expected to be submitted to the ADB board of directors by October./.
Vietnam’s upholstered furniture subject to Canadian anti-dumping duties
Certain upholstered domestic seating originating from Vietnam and China now is subject to anti-dumping duties in Canada, according to the Ministry of Industry and Trade’s Trade Remedies Authority of Vietnam (TRAV).
Citing a preliminary determination of dumping released by the Canada Border Services Agency (CBSA) earlier this week, the TRAV said provisional duties will be collected on the subject goods that are released from customs on or after May 5, 2021.
Estimated amount of subsidy has been decided to be 0 percent for seven Vietnamese manufacturers, including Delancey Street Furniture Vietnam, Timberland, Motomotion Vietnam, UE Vietnam, Vietnam Hang Phong Furniture, Wendelbo Interiors A/S and Wendelbo SEA, and 11.73 percent for all other exporters in the country.
The seven producers will receive separate anti-dumping duty rates ranging from 17.44 percent to 89.77 percent while all others get 101.5 percent.
The CBSA is requesting Vietnamese manufacturers to answer additional questions for the final determination.
The TRAV has urged the concerned exporters to keep a close watch on the case and fully cooperate with the CBSA during its investigation. They must also closely coordinate with the TRAV to receive timely support./.
SBV allows rescheduling of debt repayments for borrowers
The State Bank of Vietnam (SBV) has told financial institutions to reschedule debt repayments to help customers affected by the COVID-19 pandemic.
Under Circular No 03/2021/TT-NHNN dated April 2, 2021, the central bank gives permission to financial institutions to reschedule debts with repayment obligations incurred from January 23, 2020 to the end of this year.
The time to restructure repayments is not to exceed 12 months from the day financial institutions begin the process.
The circular allows commercial banks and other financial institutions to keep the debt classification for COVID-19 borrowers unchanged.
Experts from the VNDIRECT Securities Corporation said the amount of restructured debts may increase but will not have a critical impact on banks’ return on assets.
According to the SBV’s figures, as of mid-November 2020, repayments on more than 341.8 trillion VND (14.83 billion USD) worth of outstanding debt had been rescheduled.
Secretary General of the Vietnam Banks Association Nguyen Quoc Hung said that the circular will help financial institutions handle the challenges that come with restructuring debts, adjusting payment terms, and reducing or exempting interest rates in a sensible fashion.
Circular No 03 amends and supplements a number of articles in Circular No 01/2020/TT-NHNN dated March 13, 2020./.
Bac Ninh’s IPs strive to realise dual goals
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The fourth outbreak of COVID-19 in Vietnam has had a negative impact on socio-economic development in pandemic-hit localities. In order to continue to successfully carry out the “dual goals” of maintaining effective production while combating the pandemic, the northern province of Bac Ninh has strengthened measures to ensure safety at its industrial parks.
These are the compulsory regulations of one enterprise at the Thuan Thanh II Industrial Park in Thuan Thanh district, Bac Ninh province. All workers entering the company’s grounds must wear a face mask, have their temperature checked, and wash their hands with sanitiser.
Workers must also keep a safe distance from each other.
The TalWay Vietnam Company Limited at the Que Vo Industrial Park started operations in 2019 and was then heavily affected by COVID-19 throughout 2020. It developed a specific strategy of exploiting its stronger products to achieve its targets for this year.
Bac Ninh has 10 industrial zones with more than 300,000 workers, and most businesses have maintained production and strictly followed regulations on COVID-19 prevention and control./.
Steel sector making rapid strides forward
Vietnam’s steel sector has witnessed strong development in terms of capacity, output, and products in the recent past.
Data from the Vietnam Steel Association (VSA) shows that steel billet output surged 40-fold to surpass 12 million tonnes in 2015 from just 300,000 tonnes in 2000.
Meanwhile, output of finished steel products hit more than 26 million tonnes in 2015, growing over ten-fold since 2000.
Product diversification also helps Vietnam’s steel sector make great strides forward in the region and have a more important role to play in the international arena.
The country will switch to electric arc furnaces from the current blast furnaces, according to steel expert Nguyen Van Sua.
Another point of note in domestic steel development is the scale of projects. Since 2004, world-calibre projects have been built by firms such as Hung Nghiep Formosa Ha Tinh and the Hoa Phat Group.
Deputy Director of the Hoa Phat Dung Quat Integrated Complex, Dinh Van Chung, said its hot-rolled coil (HRC) has been in constant demand.
Hoa Phat will invest in another project with a capacity of 5 million tonnes a year at Dung Quat by early 2022, which will primarily be involved in HRC production and will use modern technology, he added.
Vietnam is likely to develop special-purpose steel in the time to come.
VSA President Nghiem Xuan Da underlined that steel companies must keep a close eye on the market and enhance their competitive edge to promptly make adjustments and sustain long-term development.
The State also needs to devise suitable strategies for the sector, towards guiding companies to invest more in technology./.
Disbursement of State-funded public investment in April at record since 2017
The disbursement of public investment sourced from the State budget in April was estimated at 30.4 trillion VND (1.32 billion USD), a year-on-year surge of 23.9 percent, and reaching the highest monthly level since 2017, according to the General Statistics Office.
During January-April, 98.7 trillion VND worth of investment from the State budget was disbursed, accounting for 21.5 percent of the annual plan, and rising 16.3 percent from the same time in 2020.
Of the total figure, 15.1 trillion VND was disbursed by central agencies, or 19.6 percent of the yearly plan, and up 25.5 percent year-on-year. The remainder was disbursed by localities, making up 21.9 percent of the plan, and rising 14.8 percent.
Meanwhile, the amount of public investment capital disbursed in the four-month period reached more than 86 trillion VND, or 18.65 percent of the plan assigned by the Prime Minister. The rate of disbursement of domestic capital was 20.74 percent and foreign capital – 2.02 percent, much lower than the same period last year.
Localities and sector with high disbursement rate were Thai Binh province (76.74 percent), Ha Nam province (50.57 percent), the State Audit (46.89 percent), Hung Yen province (43.21 percent), Thanh Hoa province (42.39 percent), and Quang Ninh province (39.62 percent).
Earlier this year, Minister of Planning and Investment Nguyen Chi Dung said public investment would focus on key national projects with important roles in enhancing regional links and creating new drivers and room for economic growth.
Last year saw the highest public investment disbursement rate in 2016-2020 as the Government identified public investment as a major driver for growth in the context of the COVID-19 pandemic./.
Vietnam maps out plan to develop collective economy, cooperatives
The Ministry of Planning and Investment (MoPI) has submitted a plan on developing the collective economy and cooperatives for the 2021-2025 period to the Prime Minister for approval.
The plan is part of efforts to carry out the strategy on developing the collective economy and cooperatives for the 2021-2030 period, thus laying a ground for ministries, agencies and localities to devise annual programmes and schemes in fields under their management.
It comprises goals, development orientations, measures, costs and ways of implementation.
The MoPI’s Agency for Cooperative Development said amid the global integration era in the next decade, cooperatives enjoy many chances to access new technologies, attract foreign investment, especially from major partners in farm produce processing and export.
However, they will face increasingly intense competition both at home and abroad due to climate change, growing population, and rapid urbanisation which fuel stronger demand for safe and quality products.
In order to develop the collective economy and cooperatives sustainably, the agency suggested raising public awareness and their role and position in the new situation.
According to the agency, there were over 26,000 cooperatives nationwide last year, with 6.1 million members. Up to 100 cooperative alliances group more than 630 cooperatives and over 119,000 cooperative groups with about 1.6 million members.
Due to small scale and uneven development among regions, their growth remained low and contributions to the country’s gross domestic product fail to meet demand.
Linkages between collective economic entities and cooperatives, and other economic sectors remains weak while coordination among State management agencies, socio-political and mass organisations in the effort is limited and ineffective/.
Vietnamese firms’ overseas investment surges in first four months
Vietnamese firms invested 545.9 million USD in overseas projects in the first four months of 2021, a year-on-year rise of 7.9-fold, according to the Ministry of Planning and Investment.
There were 18 new projects receiving investment certificates with total registered capital worth 142.8 million USD, up 2.7-fold against the same period last year.
In addition, 403.2 million USD was pumped into nine existing projects, surging 25.5-fold.
A major part of the capital outflow – 270.8 million USD – was poured into science-technology projects, accounting for 19.6 percent of the total figure. Wholesale and retails followed with 147.8 million USD.
The US was the top destination for Vietnamese capital in the period with 302.3 million USD, holding a lion’s share of 55.4 percent.
Cambodia came second with 89.1 million USD, followed by France, Canada, Germany and the Netherlands.
As of April 20, Vietnam had 1,417 valid overseas projects totaling 21.8 billion USD, mainly in the sectors of mining (36 percent of total capital) and agro-forestry-fisheries./.
Hanoi boosts sale of rural products
With many craft villages and a huge amount of products qualified for the One Commune One Product (OCOP) programme, Hanoi has many strengths in rural economic development.
To increase the products’ value and boost exports, the city will adopt a number of solutions to facilitate sales of OCOP and craft products.
According to Nguyen Van Chi, head of Hanoi’s Rural Development Division under the municipal Department of Agriculture and Rural Development, the city has more than 1,300 craft villages, 5,000 agricultural products tagged with QR codes and 1,054 OCOP products.
The products are diverse in design and type and are of good quality. Many of them have been exported to large markets such as the US, Japan, the EU and Russia, namely garment and ceramic products, textile and embroidery and wooden furniture.
“Hanoi has focused on connecting with provinces and cities across the country and building product value chains to promote trade to enhance the products’ value and promote exports,” Chi said.
Nguyen Thi Kim Loan, Vice Chairman of the Thach That District People’s Committee, said the district plans to set up cooperatives to act as focal points for cooperation with firms in the sale of products because domestic and foreign enterprises can’t sign contracts with each household.
In addition, coordination from businesses and distributors was essential to provide information on consumption trends to help locals produce handicraft and OCOP products that meet market demands, she said.
Nguyen Trung Thanh, an artisan from Bat Trang ceramics village in Gia Lam district, said besides quality and design, it was necessary to show the cultural value contained in each product to satisfy the demand of foreign customers.
Tran Thi Phuong Lan, Acting Director of Hanoi’s Department of Industry and Trade, said together with craft and OCOP product development, the city focused on trade promotion activities.
Last year, Hanoi held four events to promote the trade of OCOP products associated with the culture of regions across the country. The events attracted large numbers of foreigners who live and work in Hanoi.
In the future, the department would continue to support businesses, co-operatives and households to promote products consumption through fairs, conferences and trade connection activities, Lan said.
She also said on April 28, the Hanoi Department of Industry and Trade in collaboration with the Department of E-Commerce and Digital Economy under the Ministry of Industry and Trade and Amazon Global Selling held a seminar on exporting Vietnamese goods to the world with Amazon.
Facilitating Vietnam’s development of cross-border e-commerce were among issues discussed at the seminar.
“Given the complex development of the COVID-19 pandemic, cross-border commerce is becoming an indispensable tool for enterprises to expand their business and export handicraft and OCOP products,” Lan said.
Deputy Director of the Hanoi Investment, Trade and Tourism Promotion Centre Nguyen Thi Mai Anh, said this year the centre would work with five districts in the city to train producers about trade promotion for OCOP products, equipping them with more skills in marketing and selling products at home and abroad.
Nguyen Ngoc Son, Deputy Director of the municipal Department of Agriculture and Rural Development, said the city recently issued a plan on rural development in 2021.
Under the plan, the city would assist 10 craft villages in building and registering collective trademarks and provide financial support for 5-10 rural development projects.
Special attention would be paid to strengthening links for product consumption, he said.
Hanoi aims to evaluate and classify at least 2,000 OCOP products by 2025. To obtain the goal, the city needs to boost information dissemination and urge broader participation.
In accordance with Plan No 42 on the development of OCOP showrooms associated with craft village tourism in Hanoi this year, the city will set up 30-40 new showrooms displaying and selling OCOP products. Each district and town will have at least two OCOP showrooms.
The municipal People’s Committee will ask agencies and localities to inspect and supervise the operation of OCOP showrooms and organise promotional programs to enhance the consumption of quality products, including those from cities and provinces nationwide.
The city so far has 630 OCOP products with a three-star rating and above, exceeding the target of having at least 500 OCOP products./.
Local enterprises must deal with challenges in FTA implementation
Vietnamese enterprises need to be proactive in terms of gaining knowledge of incentives, whilst simultaneously managing themselves in order to deal with gaps and weaknesses occurring in the implementation of free trade agreements (FTAs), according to economic experts.
The negotiation, signing, and implementation of a series of FTAs in recent years has offered positive conditions for local firms to promote their exports and connections, whilst enjoying deeper participation in the global value chain and production network.
In the context of the novel coronavirus (COVID-19) pandemic both last year and in the early months of this year, FTAs have increasingly emerged as a bright spot in the overall picture of the nation’s economic growth.
The Ministry of Industry and Trade reports that as of April, authorised agencies and organisations have issued more than 127,296 sets of C/O form EUR.1 (Certificate of Origin), with a turnover of more than US$4.78 billion to 27 EU countries. In addition, enterprises exporting goods to the EU market also self-certify the origin for roughly 3,585 consignments worth over US$10.88 million in order to enjoy tariff preferences in line with the EU-Vietnam Free Trade Agreement (EVFTA).
Tran Thanh Hai, deputy director of the Import and Export Department under the Ministry of Industry and Trade (MoIT), says that goods with C/O form EUR.1 mainly consist of footwear, seafood, garments and textiles, agricultural products, and products such as cereals and electronics. Import markets are mostly based in countries that have seaports, distribution hubs, and transshipment centres within the EU, such as Belgium, Germany, the Netherlands, and France.
Alongside the EVFTA, the Regional Comprehensive Economic Partnership (RCEP) will cover a vast market with 2.2 billion consumers, thereby accounting for approximately 30% of global GDP and being the largest free trade area in the world.
Furthermore, the UK-Vietnam Free Trade Agreement (UKVFTA) also appears to have shown many positive signs in recent times, with Vietnamese exports to the UK during the first half of the year increasing by 22.1% over the same period from last year.
In terms of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), in just two years since the implementation of the deal, trade turnover between the nation and the other 10 CPTPP countries has reached US$77.4 and US$78.2 billion, up by 3.9% and 5%, respectively compared to 2018.
Nguyen Thi Cam Trang, deputy director of the Import and Export Department under the Ministry of Industry and Trade, says that in the context of almost all CPTPP partners reducing imports, the country has still achieved growth which indicates that the CPTPP has been creating a range of positive effects.
There is no denying that participating in new generation FTAs is benefiting the nation in terms of tariff reduction. However, the implementation of these trade deals also poses numerous challenges to many industries, especially in relation to quality and standards.
Nguyen Khanh Ngoc, deputy director of the Europe – America Market Department under the MoIT, commented that FTAs are also contributing to increasing competition pressure for the national economy and local enterprises. This thereby requires local businesses to comply with high standards of rules as a means of taking full advantage of opportunities and limit commercial disputes.
“Non-tariff barriers to imported goods in the markets of FTA participating countries with Vietnam will tend to increase with the high trend of protection and application of technical, labor and protection standards. This is seen as a big challenge for businesses, affecting the ability to capitalize on tariffs,” Ngoc states.
Various economic experts believe that in order to make the most of opportunities from FTAs and to minimise the challenges faced, domestic businesses need to be proactive in grasping the advantages that FTAs bring, whilst also dealing with their “holes” and weakness.
To increase opportunities enjoyed by Vietnamese businesses to expand their export markets through the CPTPP, Do Thi Thu Huong, Vietnam Trade Counselor in Canada, notes that local firms must be more proactive in terms of grasping the advantages in the framework of the trade deal. In particular, import tax incentives can have a direct impact on the price mechanism between both buyers and sellers, therefore it can be considered as a basis for negotiation with partners.
“The rules of origin in the CPTPP are new and very complicated, so local businesses need to invest human resources to learn the rules and procedures to prove the origin to be able to enjoy tax incentives. Besides, management agencies should promote more online tools, organise seminars and instructions in each field and industry so that businesses can learn and seek useful information,” Huong adds.
Vĩnh Long follows safe-tourism criteria
The Cửu Long (Mekong) Delta province of Vĩnh Long’s Department of Culture, Sports and Tourism has released safe tourism criteria to ensure control and prevention of COVID-19.
Tourist agencies must strictly follow the Ministry of Health’s 5K messages to wear masks, frequently disinfect hands, keep a safe distance, refrain from gatherings, and make health declarations to all visitors.
The department has also encouraged tourist agencies and tourism service suppliers to offer new promotions.
Nguyễn Trọng Tín, head of the tourism management office of the department, said the province has asked every tourism business to implement safety criteria, and regularly self-assess COVID-19 prevention and control requirements.
The businesses must monitor customers’ daily health and notify medical facilities and local authorities when detecting a suspected case of SARS-CoV-2 infection.
The department has sent a group of investigators to check the COVID-19 prevention and control measures at accommodations, tourism areas and service suppliers. Measures include temperature measuring devices, medical masks, hand sanitisers and health declaration.
Vĩnh Long is known for special tourism products in four groups: homestays and ecological tours to fruit gardens, tours to understand local cultural figures, agriculture tours, and tours to handicraft villages.
The province now has nearly 100 homestays, guesthouses and hotels and 40 tourism areas, mostly located in Long Hồ District.
It has 25 standard homestays, two of which reached the ASEAN homestay standard in the 2017-2019 and 2019-2021 periods.
With a dense system of canals and rivers and rich gardens of tropical fruits, the province has 50 gardens offering snacks, meals and fruits like custard apple, dragon fruit, grapefruit and rambutan.
It also hosts 44 provincial level historical-cultural sites and 11 national level sites, and 25 handicraft villages making rattanware, leaf weaving, rice crepes, ceramics, and forging metals.
Phạm Thị Ngọc Trinh, owner of Út Trinh Homestay in Long Hồ District, said the homestay has several activities interacting with local culture to attract more visitors after the effects of COVID-19.
The homestay offers cooking classes of special dishes in the region, traditional games, and tours to handicraft villages that attract a large number of visitors every weekend.
The facility is also organising classical drama shows, allowing tourists to enjoy the performance and meet with artists and learn how to act and do make-up for a performance.
Trinh said although the homestay welcomes a large number of visitors on weekends and holidays, they take all preventive measures.
According to the province’s Department of Culture, Sports and Tourism, Vĩnh Long’s tourism sector has revived this year despite facing difficulties caused by COVID-19.
The number of visitors reached more than 240,000 in the first four months of this year, including 9,000 visitors during the Reunification Day and International Labour Day holiday from April 30 to May 3.
The tourism sector earned around VNĐ122 billion (US$5.25 million), including VNĐ5.6 billion ($240,800) from the holiday.
Increase in Viet Nam – Belgium trade brings more opportunities for investors: experts
The vietnam-briefing.com published by Dezan Shira & Associates – a consultancy firm on foreign investment in Asia – has run an article, emphasising that since the EU-Viet Nam Free Trade Agreement (EVFTA) took effect in August 2020, Belgium has played a significant role in promoting trade and foreign investment into Viet Nam.
According to the article, major sectors that Belgian investors have particularly shown interest in are industrial zones, food and beverage, processing and manufacturing, pharmaceutical, and renewable energy.
It notes that with increasing trade and investment between Belgium and Viet Nam, Belgian investors have opportunities to invest in Vietnamese industries, favouring the economic and political landscape between the two countries.
Over the past decade, trade and investment relations between Viet Nam and Belgium have improved considerably. This has been attributed to Viet Nam’s growing economy and the expansion and globalisation of some Belgian corporations.
The article quotes Riccardo Benussi, Head of European Business Development of Dezan Shira & Associates, saying that more Belgian companies are looking to invest in Viet Nam, especially with the implementation of the EVFTA and subsequent reduced tariffs.
As of March 2021, Belgium has 78 investment projects in Viet Nam, with a total registered capital of US$1.1 billion, ranking 23rd among 131 countries and territories investing in Viet Nam.
Viet Nam is Belgium’s 14th largest trade partner, with a trade value reaching approximately $707.55 million in 2020, up 6.7 per cent compared to 2019.
In the first seven months of 2020, due to the COVID-19 pandemic, Viet Nam’s export value to Belgium totalled $1.4 billion, down 17.7 per cent year-on-year. Viet Nam imported $459 million worth of goods from Belgium, up 11.9 per cent year on year.
The article says these figures demonstrate that while Vietnamese exports to Belgium experienced a depression, Belgium’s exports to Viet Nam still grew, which is a positive signal for the future of bilateral trade between the two countries.
In 2019, within the EU, Belgium was the seventh-largest exporter to Viet Nam and the sixth largest in 2018. Belgium’s top exports to Viet Nam in 2020 were chemicals (46.2 per cent), and machinery and equipment (13.7 per cent). Meanwhile, Viet Nam’s top exports to Belgium were textiles, footwear and headgear, and base metals.
The most substantial Belgium investment in Viet Nam is the development and operation of an industrial park cluster known as the Deep C Industrial Zone (initially named the Dinh Vu Industrial Zone – DVIZ).
Geert Dom, Head of Marketing & Sales for DEEP C Europe and the US, said that DEEP C had attracted over 130 projects with foreign investors of different nationalities such as Belgium, Germany, Japan, the Republic of Korea, the US, and Singapore. Looking towards the future, DEEP C would still be attracting more Belgian and other investors to do business and establish factories and warehouses in this industrial zone.
Meanwhile, Filippo Bortoletti, Senior Manager for Dezan Shira’s Ha Noi Office, noted that apart from industrial zones, Belgian investors also played a significant role in the Vietnamese food and beverage (F&B) industry.
Belgium investments were focused on the supply chain of the industry, catering ingredients to restaurants, F&B factories, and retail, he said.
Viet Nam’s manufacturing and processing industry also proves to be a prospective investment sector for Belgium corporations. Over the years, most of the investments that Belgian investors have made in Viet Nam are in seaports, infrastructure, real estate, manufacturing, and power generation.
Pharmaceuticals is also a significant sector for foreign investment in Viet Nam. Most EU investors source raw pharmaceutical materials from the EU, ship them to Viet Nam, manufacture and process the products in Viet Nam before they re-export the products back to the EU.
Thanks to the EVFTA, about 71 per cent of import tariffs have been eliminated. Moreover, non-tariff barriers also brought opportunities in improving intellectual property rights and direct pharmaceutical imports. This means that Belgian investors can establish an entity to import pharmaceutical products and sell to local distributors or wholesalers. In addition, Belgian investors are also eligible to build warehouses and perform clinical research and trials, the article said.
The article also notes that Viet Nam is an attractive investment destination for green energy production projects, and it is predicted that many foreign investors, especially those from the EU, will continue to establish and expand their businesses in this sector in the country.
The increase in bilateral trade between Belgium and Viet Nam, as well as the increasing FDI from Belgium, demonstrate bright prospects for the two countries’ relations, it says, adding that the long-term presence and successful investment of Belgian companies in Viet Nam offer a good indication and reference for business opportunities in the country.
US firms interested in Vietnamese supply chain
A new report has found 43 per cent of US-based respondent companies cited Viet Nam among their top three buying geographies as of early 2021, doubled from 2019, according to the Q1 2021 report from QIMA, a US provider of supply chain compliance solutions.
The report surveyed more than 700 businesses with international supply chains.
The data shows a 16 per cent year-on-year increase in demand for inspections and audits in Viet Nam in the first quarter of this year, which represents a third consecutive quarter of growth that had initially begun as a post-lockdown rebound in mid-2020, the article cited a report from QIMA, a provider of supply chain compliance solutions.
This growth is more than just a return to pre-pandemic levels, as Q1 2021 inspection demand has, on average, doubled compared to Q1 2019.
The appetite for Viet Nam sourcing is far from satisfied and is poised to redefine the sourcing landscape in 2021: around a third of buyers globally and 38 percent of US-based buyers name it among countries from where they plan to buy more in 2021.
The website says Viet Nam was not the only country in the region to benefit from expanded business volumes, as data on inspection and audits demand in Southeast Asia show double-digit growth across the board, fueled by the renewed interest from American and European brands alike.
Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes
Banking industry forecast to grow slower on economic slowdown
Following a period of rapid expansion, the banking sector’s earnings obviously decreased in the first half of 2023 as a result of the significant effects of the race between deposit interest rates and falling loan demand. In particular, the listed banks’ profits declined in light of the broader market challenges.
In a recent report, the research departments of local securities firms simultaneously forecast that the entire banking industry’s profit will grow by about 10% compared to 2022. Credit growth reached 10-12%.
According to the VCBS research, there will be differences in the profit outlooks of the various banking groups, with some small banks continuing to slow down and even seeing negative growth in the real estate market. The macroeconomic situation around the globe is deteriorating, which slows credit growth and makes it challenging to recover customers’ debt-paying capacity.
Low credit growth
Data from the State Bank show that as of the end of July 2023, credit had expanded by 9% since the beginning of the year and by 4.56% since then. This is a modest gain compared to previous years when the majority of the production and commercial sectors experienced a reduction in credit growth contributions.
Over the past several years, the rise of all types of credit has been fueled by real estate-related credit, which makes up around 20% of total outstanding credit. Real estate credit growth was slower than overall credit growth as a result of the market shock.
For instance, real estate credit, which made up the majority (65% of outstanding loans) in the first half of the year and is driven by demand for house loans, fell by 1.12%. In the previous three years, a decreasing tendency has just recently begun to manifest.
However, lending interest rates for house loans have returned to advantageous levels, and it is anticipated that projects scheduled to go on sale at the end of this year will continue to be the primary factor boosting homeowner credit demand. growth and personal development in 2023 and 2024’s second half.
Dr. Can Van Luc, a member of the National Financial and Monetary Policy Advisory Council, asserts that since the year’s beginning, policies have been released to support the trend of falling interest rates, which has resulted in faster capital mobilization and credit growth. For the entire year 2023, loan growth is anticipated to be between 14 and 15%.
Bad debt increases
For the third consecutive quarter, bad debt climbed, rising to 2.1% in the second quarter from 1.6% at the end of 2022. Summary of information from 27 commercial banks’ second quarter financial statements for The entire amount of bad debt (groups 3-5) is estimated to be VND187,475 billion, up 10% from the previous quarter and 37.4% from the end of 2022.
When compared to the end of 2022, the ratio of group 2 debt throughout the whole banking sector climbed by up to 45% at the end of the first quarter of 2023. In the following quarter, the trend continued to rise, albeit at a slower rate.
During this time, the industry’s bad debt coverage ratio (LLR), which was 143% a year ago, is now only 99.4%. There are now just two banks, Bac A Bank (0.7%) and Vietcombank (0.8%), that maintain a bad debt level below 1%. In addition to VietinBank (1.3%), MB (1.4%), and BIDV (1.6%), the few banks with bad debt percentages below 1% include ACB and Techcombank.
When the bad debt ratio increases on a large scale, it will lead to interbank system risks and, more seriously, can cause a financial crisis. Mr. Nguyen Quoc Hung, General Secretary of the Vietnam Banks Association (VNBA), said that the bad debt situation of credit institutions is currently “very worrying” when many businesses are still unable to repay their debts. Debts have been restructured and are due, affecting credit quality.
According to MBS Chief Economist Hoang Cong Tuan, the initiatives to cut operational interest rates open the door for decreasing lending interest rates to lower levels, which would increase credit demand. Additionally, the State Bank’s aforementioned move assists banks in potentially increasing their net profit margins in the second half of the year.
Generally speaking, the banking sector may differ in 2023, when banks with backup buffers and solid asset quality will have a larger edge over the current year’s economic challenges. The choice to give some commercial banks more breathing room has also significantly boosted banks’ financial performance.
The largest potential for the banking sector in the second half of this year, according to Ms. Pham Lien Ha, Director of Financial Services Industry Research at HSC, is interest rates. Lower deposit interest rates will reduce bank capital expenses. In addition, the ongoing trend of interest rate reductions will support credit expansion and economic growth in both the second half of 2023 and 2024.
As Vietnam progressively enters the recovery era, analysts from VNDirect Securities Company predict that banks with a large share of retail loans, including VIB and ACB, will have numerous opportunities to boost credit growth. starting out. On the other hand, when Circular 06/2023 (which will be in force starting in September 2023) restricts access to capital for enterprises, banks with a large share of real estate loans may find it challenging to increase credit.
The last quarter of 2023 will see credit growth rates and NIM rates higher than the industry average for banks with a significant number of retail customers and a focus on this market.
Legal changes expected to increase appeal of Vietnam’s real estate market
Responding to the situation, Vietnam has issued policies on economic recovery and development, particularly for the recovery of the real estate market.
Speaking at a recent workshop seeking measures to increase the attractiveness of the market held by Nha dau tu (Investors) magazine, its Editor-in-Chief Nguyen Anh Tuan said that Vietnam is considering amendments to the Land Law, the Law on Real Estate Business (amended) and the Law on Housing (amended). These moves should bring positive changes to the market.
Deputy Minister of Construction Nguyen Tuong Van said that on average, the construction and real estate industries contributed about 11% of GDP in recent years, in which the real estate industry directly made up about 4.5%.
Foreign investment in this field has continuously increased and made an important contribution to the development of the market.
Up to now, FDI capital in the real estate sector has reached 66.4 billion USD, accounting for 15.1% of total FDI capital in Vietnam and continuously maintaining the 2nd or 3rd position in FDI attraction. However, in the last few years, the real estate market has faced many difficulties and challenges.
Van said the Ministry of Construction has presided over the drafting of the Law on Housing (amended) and the Law on Real Estate Business (amended). These are two laws of great significance, attracting the attention of people and the business community at home and abroad.
The amendment and completion of the two laws will have a positive impact on the housing and real estate market, drastically improving confidence in the investment environment, and creating transparency and stability for the housing market in Vietnam.
“Once approved, the amended laws will also help Vietnam’s real estate market become more attractive to foreigners living and working in Vietnam and foreign investors,” Van confirmed.
Nguyen Anh Tuan, Deputy Director of the Foreign Investment Agency under the Ministry of Planning and Investment, said that real estate is one of the fields that have attracted many foreign investors to Vietnam. Currently, investors from 48 countries and territories are investing in the real estate market in Vietnam.
To get high-quality FDI real estate investors, Vietnam needs to focus on several solutions, including perfecting legal regulations on the real estate market. This includes new types of real estate such as smart cities, resort real estate, real estate combined with healthcare, condotels, and officetels in line with international practices.
The country should target investors that have good financial capacity and solutions associated with green and sustainable economic transformation, he said.
Investors have a responsibility to the environment and society during the investment process in Vietnam, he added.
In addition, the flexible and systematic management of monetary policy tools is needed to meet the credit capital demand for the development of the real estate market, creating favourable conditions for businesses, home buyers, and investors to access credit sources.
Reducing lending interest rates is also a solution, according to the official.
He said that along with the continued improvement in infrastructure which facilitates the development of the real estate market, Vietnam needs to improve the business investment environment, and promptly remove difficulties relating to policies, especially for projects that use large areas of land and have been long delayed.
Vietnam’s VinFast to deliver EVs to Europe this year as EU probes China rivals
Under the plan, about 3,000 of its VF8 crossovers would be delivered to France, Germany and the Netherlands in the fourth quarter of this year from VinFast’s factory in northern Vietnam, a person familiar with the plan told Reuters. The source declined to be named because these details were not yet public.
The Nasdaq-listed company’s plan to expand into Europe would represent a four-fold increase from a previous unmet target of delivering 700 cars by last July, and comes as the EU probe into Chinese EV makers creates a possible gap in the market.
If fulfilled, Europe could become VinFast’s biggest overseas market this year. The company had shipped about 2,100 EVs earlier this year to the United States and planned to ship more VF9 models, according to its first filing to the U.S. Securities and Exchange Commission (SEC) after the listing.
“We expect to deliver the first VF8 models to French, German and Dutch customers in the fourth quarter of this year,” Le Thi Thu Thuy, VinFast’s chief executive, said, adding the company’s other models VF6, VF7, and VF9 would be launched in the European market next year.
Thuy did not indicate the number of VF8 sport utility vehicles (SUVs), but the person familiar with the matter said it would be around 3,000 vehicles, including some for Israel.
The loss-making company repeatedly revises its targets.
The VF8 SUV has already been approved by a European regulator as compliant with EU standards, and can be sold within the 27-country bloc, Thuy said.
The company is also completing the procedures to obtain the voluntary Euro NCAP safety rating, she added.
Europe is one of the biggest markets for Chinese automakers, which shipped almost 70,000 EVs in the first seven months of this year, nearly triple the same year-ago period, according to consultancy Inovev.
Should the EU probe conclude that punitive duties on China-made EVs are warranted, VinFast could find its cars are more competitively priced.
Its VF8 model will start at 50,990 euro ($54,218) in France. The China-made Tesla Y model, which is also threatened with EU tariffs, starts from 46,000 euros.
VinFast’s expansion into Europe is part of a global plan that includes building new factories in the United States and in Indonesia and targeting also India, the Middle East, Africa and Latin America.
Just before its Nasdaq debut in August, the company stepped up deliveries of cars in the second quarter, with a total number of 11,315 EVs made available to clients by the end of June, largely to the domestic market thanks to a scheme to turn its cars into green taxis in Vietnam’s main cities.
VinFast’s reported second-quarter revenue rose 131.2% to $327 million. Its net loss in the quarter was $526.7 million, down 8.2% from the same period last year.
VinFast, which is part of Vietnamese conglomerate Vingroup, was formed in 2017 and began making EVs in 2021 after dropping its manufacturing of cars with internal combustion engines.
Banking industry forecast to grow slower on economic slowdown
Rikkeisoft to invest up to $30 million in U.S. by 2026
Legal changes expected to increase appeal of Vietnam’s real estate market
Vietnam’s VinFast to deliver EVs to Europe this year as EU probes China rivals
Over $380mn needed to upgrade 3 highways linking Vietnam with Laos, China
Ninh Thuan reports 7.4% increase in seafood catch in H1
Digital assets raise unprecedented issues for policymaking
Japan supports Vietnam to enhance laboratory capacity for agricultural, fisheries product testing
Vietnamese cartoon producer cries for help as YouTube removes 3,000 videos
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First Vietnamese representative at a Winter Olympic
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