Tetra Pak expands investment in Viet Nam
Tetra Pak has announced an additional investment of five million euros in its 120 million euro packaging material factory in Bình Dương Province on September 16.
The additional investment reaffirms its confidence in Việt Nam’s economic rebound from the COVID-19 pandemic and its continuing commitment to support food and beverage producers in Việt Nam.
“This additional investment of five million euros reflects our confidence in the strong recovery of Việt Nam’s post-pandemic economy,” said Eliseo Barcas, Managing Director for Tetra Pak Vietnam. “This investment also enables us to better serve our customers by offering greater capacity, more exciting packaging innovation and reducing our environmental footprint.”
The new investment is expected to increase the factory’s annual output from the current 11.5 billion to 16.5 billion packages, thereby meeting the growing needs for aseptic packages in Việt Nam and regional markets. In addition, it empowers the factory to produce premium carton packages to replace imports.
The upgrade will also include the installation of 2,300 solar panels on the factory’s roof. This effort is part of Tetra Pak’s ambition to achieve net zero greenhouse gas emissions in the company’s operations by 2030.
“As the business environment is being surrounded by many challenges brought on by COVID-19, the expansion of Tetra Pak factory in Bình Dương Province is indeed a refreshing highlight, reflecting the company’s leadership in the food packaging industry,” said Trần Quang Trung, President of the Vietnam Dairy Association.
“The expansion would surely give dairy producers peace of mind on the continuous supply and quality of the carton packaging, which has become very important in the context of the current disruptions in the global value chain. Sourcing packaging material from a local production as in Tetra Pak Bình Dương factory is, no doubt, a big advantage for not just dairy but other food and beverage manufacturers.”
With the investment, Tetra Pak continues to reinforce its strategic focus to protect food, people, and the planet, which is even more important during the pandemic.
“The pandemic has stressed the importance of safe and nutritious food in protecting people’s health. Working with local food manufacturers, we have delivered about seven billion units of liquid food packaged in cartons to Vietnamese people over the past nine months, an equivalent growth of almost 14 per cent on a year-over-year basis,” Barcas said.
Put into operation in mid-2019, Bình Dương factory was Tetra Pak’s eighth facilities in the Asia Pacific region that is set to produce aseptic cartons for domestic and export markets in ASEAN, Australia and New Zealand.
In 2020, Tetra Pak Bình Dương was certified with the most-demanding LEED Version 4 Gold, which helps the factory save 17.6 million litres of water, recycling or salvaging 65 per cent of generated waste, and decreasing 4,000 tonnes of CO2 emissions a year.
Vietnam’s tuna exports to EU see strong surge
Vietnam exported 15,870 tonnes of tuna worth 73.33 million USD to the European Union in the first half of 2021, up 39.3 percent and 31.6 percent, respectively, against the same period last year, according to a journal published by the Ministry of Industry and Trade (MoIT).
The tuna shipments accounted for about 15.1 percent of Vietnam’s total seafood export value to the EU.
In the second quarter of 2021, the country shipped 9,360 tonnes of tuna to this market, raking in 45.05 million USD, up 43.9 percent in volume and 59.3 percent in value from the previous quarter.
The surges were attributed to tariff reductions granted to Vietnam’s tuna products under the EU-Vietnam Free Trade Agreement (EVFTA), which took effect on August 1, 2020.
According to the MoIT, Vietnamese tuna was sold at 4.62 USD per kg on average to the EU in the first six months of the year, down 0.27 percent year on year. The global tuna prices have been declining on the back of weakening demand of canned tuna during the period.
Significant growth was seen in a number of EU markets, including Poland which recorded imports of Vietnamese tuna rocketing 989 percent in volume and 608.6 percent in value, and Bulgaria, 289 percent and 229 percent, respectively.
Data from the European Statistical Office (Eurostat) showed that Vietnam was the EU’s eighth largest provider of tuna outside the union in the first four months of 2021, making up a 4.9 percent share of the EU’s total tuna imports, compared to 4 percent in the same period last year.
The MoIT’s Agency of Foreign Trade warned that Vietnam’s tuna shipments are likely to continue facing difficulties from the EU as a result of the COVID-19 resurgence and the “yellow card” warning on the illegal, unreported and unregulated (IUU) fishing imposed.
FROM THE BEGINNING OF THIS YEAR
Sweden exports to Vietnam
Sweden imports from Vietnam
Denmark exports to Vietnam
Denmark imports from Vietnam
Norway exports to Vietnam
Norway imports from Vietnam
Nine-month FDI inflows up 4.4 percent despite COVID-19
Despite COVID-19 impacts, foreign direct investment (FDI) inflows into Vietnam during the first nine months of this year rose 4.4 percent year on year to 22.15 billion USD, reported the Foreign Investment Agency under the Ministry of Planning and Investment.
As of September 20, 12.5 billion USD was poured into 1,212 newly-licensed projects, up 20.6 percent in value but the number of projects was down 37.8 percent over the same period last year. Meanwhile, 6.6 billion USD was added into 678 underway projects, a year-on-year rise of 25.6 percent in capital but down 15.8 percent in project number.
Foreign investors also invested nearly 3.2 billion USD to share purchase deals, down 43.8 percent compared to the same period last year.
So far this year, the disbursement of FDI fell 3.5 percent year on year.
Leaders of the Foreign Investment Agency attributed the decreases in the numbers of new and expanded projects to the travel restrictions and long quarantine policy, which made it hard for foreign investors to make surveys for their planned projects. Lockdown and travel restriction measures also affected operations of FDI firms, they added.
Among 18 sectors receiving investment from foreign investors in the first nine months of this year, processing manufacturing took the lead with 11.8 billion USD, accounting for 53.4 percent of the total FDI. It was followed by power production and distribution with over 5.5 billion USD.
Meanwhile, Singapore led 94 countries and territories investing in Vietnam in the period with total investment capital of nearly 6.3 billion USD, followed by the Republic of Korea with over 3.9 billion USD, and Japan with nearly 3.3 billion USD.
The Mekong Delta province of Long An attracted the highest amount of FDI during the period with over 3.6 billion USD, including 3.1 billion USD in a big energy project.
Northern port city of Hai Phong came second with 2.7 billion USD, while Ho Chi Minh City came third with nearly 2.4 billion USD.
The export revenue of the FDI sector still increased in the January-September period by 22.9 percent to nearly 178 billion USD.
Vietnam’s shrimp exports expected to increase by year-end
Many local seafood export enterprises forecast that the US and European markets will have high demand for importing shrimp at year-end.
Lê Văn Quang, chairman of the Minh Phú Seafood Corporation’s Board of Directors, said that the corporation had signed contracts with partners to supply shrimp until the end of the year. Now, its factory runs at full capacity but there is not enough shrimp supply for customers.
The export markets have high demand for large-size shrimp with 10-30 units per kilo. If farmers harvest shrimp in November, the shrimp would be exported to the European and US markets. After November, the shrimp will be sold to China, Japan, and South Korea, according to Quang.
The selling price of a 20-shrimp kilo is at VNĐ195,000-198,000, so the farmers could gain a profit of VNĐ50-60 million per tonne of shrimp.
According to Võ Quan Huy, chairman of the Mỹ Thanh Shrimp Association in Sóc Trăng Province, shrimp producers and traders in the province said that now they have gained good results in shrimp exports.
The Việt Nam Association of Seafood Exporters and Producers (VASEP) reported in the first seven months of 2021, Việt Nam’s shrimp exports reached US$2.2 billion, up 14 per cent over the same period last year. Of which, shrimp exports reached $584.6 million to the US (up 34 per cent year on year) and $320 million (up 26 per cent) to the EU.
However, domestic shrimp production is facing difficulties, according to the Directorate of Fisheries.
Shrimp production facilities in the Southern localities reduced their output by 30-40 per cent from early July and 50 per cent from August 15. Some of them are even temporarily suspending operations.
Besides that, in localities applying social distancing measures under the Prime Minister’s Directive 16/CT-TTg, shrimp consumption is currently suspended because the supermarkets and stores must implement those distancing measures or close.
Some shrimp processing factories must stop working or implement the “3 on-site” model, which involves on-site production, dining and rest, so the capacity has decreased, leading to the risk of the domestic shrimp supply chain breaking while the global demand for shrimp is increasing.
Quang of Minh Phú said that it is very difficult to transport shrimp to its processing factories. The difficulty in consuming shrimp means farmers will not have plans for reproduction. Meanwhile, the fourth quarter often sees high demand for shrimp, so there could be a serious shortage of raw materials.
A representative of the Kiên Giang Department of Agriculture and Rural Development said that in the last months of the year, the Directorate of Fisheries and the association should have an assessment and forecast of the consumption market because there is very little information.
Project looks to bolster Việt Nam’s dragon fruit exports to Europe
A project to improve the quality of tropical fruit grown in Việt Nam sponsored by the Dutch government has kicked off, offering chances for sustainable exports of dragon fruit to the challenging market of Europe.
Việt Nam’s dragon fruit growing areas have been quickly expanded over the years to about 60,000ha. At present, consumption of the fruit heavily depends on the Chinese market.
The project aims to enhance chances for exports of the fruit to the European market, heard a recent webinar arranged by an affiliate of Eurofins Scientific testing laboratories company.
It is also hoped to support farmers to apply farming methods to meet technical standards of European importers, as well as connect importers in the Netherlands and tropical fruit growers in Việt Nam.
The project focuses on introducing tools, solutions and technology to help farmers enjoy higher yield.
Of note, it will apply Eurofins Scientific’s quality testing technology on soil for dragon fruit cultivation, along with in-field activities on farming techniques based on its own recommendations and process. Outcomes will be publicised widely.
Together with product quality and a trustworthy long-term supply planning, control over the use of pesticides is an important factor for the export of dragon fruit to Europe.
Vietnamese exporters are advised to learn about eligible substances and the accurate amount required by each importer so as to inform fruit growers.
In addition to the Netherlands, countries in western and eastern Europe are viewed as potential importers of Việt Nam’s dragon fruit.
The project, which runs until March 2024, is to support four southern Vietnamese provinces – Bình Thuận, Long An, Bến Tre and Đồng Tháp – to improve the quality of three local tropical fruits – dragon fruit, mango and grapefruit – for export to the European market.