BUY VIETNAM THIS MONTH
QDH JSC, plastic
Handy Silk, silk
Binh Minh Group, packaging
NPH, steel
TNI, coffee
Thi Decor, furniture
Phuc Lam Technologies, plywood
HEADLINES
Ministry to develop project to adapt with CBAM
The Vietnamese Government has asked the Ministry of Industry and Trade to join with relevant ministries and agencies to develop and implement solutions to conform to possible revisions to the EU’s Carbon Border Adjustment Mechanism (CBAM).
Negotiations and dialogues will be increased with the EU and the UK to clarify the consistency of CBAM with existing international commitments under the World Trade Organisation (WTO), the EU – Việt Nam FTA (EVFTA) and the UK – Việt Nam FTA (UKVFTA).
The ministry will also study the possibility of expanding the scope of CBAM, especially for agricultural and forestry products, together with suitable support and exemption mechanisms for Việt Nam. Close watch will be made on the application of similar mechanisms in other countries such as the US and Canada.
Việt Nam will increase negotiations and join bilateral and multilateral international forums and frameworks to enhance international cooperation and recognition of Việt Nam’s policies and regulations related to carbon pricing.
Support must be provided to enterprises to adapt with CBAM. In addition, policies related to carbon pricing will be raised to ensure consistency with international practices, including the development of a domestic carbon market, along with carbon and green credits.
CBAM is a mechanism in which the EU will impose a carbon tax on all goods imported into the bloc based on the greenhouse gas emissions during production.
Việt Nam is the 11th largest exporter to the EU.
Currently, most Việt Nam’s exports to the EU are not subject to CBAM – apart from iron and steel, cement, fertiliser and aluminum. However, the CBAM’s scope might be expanded in the future. — VNS
OTHER NEWS
Sweden exports to Vietnam
| Products | 7M/2023 | 7M/2024 | Change (%) |
|---|---|---|---|
| All products (USD) | 570,339,727.00 | 606,097,087.00 | 6.30 |
| Fish and crustaceans, molluscs and other aquatic invertebrates | 11,106,710.00 | 13,772,721.00 | 24.00 |
| Plastic products | 7,108,372.00 | 12,084,958.00 | 70.00 |
| Rubber | 239,702.00 | 271,051.00 | 13.10 |
| Bags, purses, suitcases, hats, umbrellas | 13,890,550.00 | 15,057,732.00 | 8.40 |
| Products of rattan, bamboo, sedge and carpet | 5,235,408.00 | 5,108,639.00 | -2.40 |
| Wood and articles of wood | 9,128,455.00 | 12,667,310.00 | 38.80 |
| Textiles and garments | 55,663,187.00 | 53,430,246.00 | -4.00 |
| Footwears, parts of such articles | 33,006,662.00 | 32,582,509.00 | -1.30 |
| Materials for textiles and garments, and footwares | 2,116,479.00 | 2,505,062.00 | 18.40 |
| Ceramic products | 924,076.00 | 1,618,068.00 | 75.10 |
| Articles of iron or steel | 7,830,503.00 | 6,055,048.00 | -22.70 |
| Other metals and products | 398,281.00 | 518,921.00 | 30.30 |
| Computers, electrical products, part thereof | 44,875,269.00 | 55,232,969.00 | 23.10 |
| Telephone sets, parts thereof | 241,998,945.00 | 218,776,097.00 | -9.60 |
| Machinery, mechanical appliances, equipment, parts thereof | 67,094,736.00 | 67,435,970.00 | 0.50 |
| Toys, sports equipment and parts | 4,645,260.00 | 6,471,586.00 | 39.30 |
Sweden imports from Vietnam
| Products | 7M/2023 | 7M/2024 | Change (%) |
|---|---|---|---|
| All products (USD) | 204,799,186.00 | 240,244,104.00 | 17.30 |
| Other petroleum products | 1,644,048.00 | 2,075,373.00 | 26.20 |
| Chemical products | 12,098,422.00 | 6,522,229.00 | -46.09 |
| Pharmaceutical products | 48,564,766.00 | 73,690,679.00 | 51.74 |
| Plastic materials | 1,760,594.00 | 1,786,628.00 | 1.48 |
| Plastic products | 4,067,128.00 | 4,357,418.00 | 7.14 |
| Wood and articles of wood | 5,685,098.00 | 3,044,195.00 | -46.45 |
| Paper products | 18,829,622.00 | 24,102,332.00 | 28.00 |
| Iron or steel | 9,734,913.00 | 8,209,914.00 | -15.67 |
| Articles of iron or steel | 4,049,489.00 | 4,842,454.00 | 19.58 |
| Computers, electrical products, part thereof | 2,172,843.00 | 4,266,045.00 | 96.33 |
| Telephone sets, parts thereof | 34,487.00 | 59,670.00 | - |
| Other machinery, equipment, tools and spare parts | 59,875,475.00 | 77,408,912.00 | 29.28 |
Denmark exports to Vietnam
| Products | 7T/2023 | 7T/2024 | Change (%) |
|---|---|---|---|
| All products (USD) | 193,571,604.00 | 252,483,320.00 | 30.40 |
| Fish and crustaceans, molluscs and other aquatic invertebrates | 24,525,229.00 | 30,727,235.00 | 25.30 |
| Coffee | 2,196,323.00 | 3,126,599.00 | 42.40 |
| Plastic products | 10,358,952.00 | 14,710,936.00 | 42.00 |
| Bags, purses, suitcases, hats, umbrellas | 5,048,349.00 | 9,637,815.00 | 90.90 |
| Products of rattan, bamboo, sedge and carpet | 2,346,246.00 | 3,609,404.00 | 53.80 |
| Wood and articles of wood | 14,638,684.00 | 17,270,984.00 | 18.00 |
| Textiles and garments | 38,614,681.00 | 35,068,764.00 | -9.20 |
| Footwears, parts of such articles | 12,388,714.00 | 14,934,790.00 | 20.60 |
| Ceramic products | 2,434,130.00 | 2,902,779.00 | 19.30 |
| Articles of iron or steel | 10,327,924.00 | 24,089,454.00 | 133.20 |
| Other machinery, equipment, tools and spare parts | 10,039,020.00 | 11,338,378.00 | 12.90 |
| Electric wires and cables | 14,398,854.00 | 21,672,916.00 | 50.50 |
| Transport vehicles and spare parts | 3,016,264.00 | 3,411,543.00 | 13.10 |
| Furniture products from materials other than wood | 10,025,235.00 | 15,163,673.00 | 51.30 |
| Toys, sports equipment and parts | 5,131,548.00 | 3,004,406.00 | -41.50 |
Denmark imports from Vietnam
| Products | 7T/2023 | 7T/2024 | Change (%) |
|---|---|---|---|
| All products (USD) | 124,227,013.00 | 125,223,760.00 | 0.80 |
| Fish and crustaceans, molluscs and other aquatic invertebrates | 14,639,638.00 | 6,302,294.00 | -56.95 |
| Milk and dairy products | 3,669,236.00 | 3,275,952.00 | -10.72 |
| Chemical products | 12,058,263.00 | 15,383,240.00 | 27.57 |
| Pharmaceutical products | 7,941,619.00 | 11,597,619.00 | 46.04 |
| Plastic products | 4,096,042.00 | 6,318,777.00 | 54.27 |
| Materials for textiles and garments, and footwares | 86,488.00 | 105,672.00 | 22.18 |
| Iron or steel | 67,082.00 | 128,339.00 | 91.32 |
| Articles of iron or steel | 2,232,100.00 | 4,046,697.00 | 81.30 |
| Computers, electrical products, part thereof | 1,800,134.00 | 3,831,702.00 | 112.86 |
| Other machinery, equipment. tools and spare parts | 24,770,912.00 | 35,699,986.00 | 44.12 |
| Electric wires and cables | 953,557.00 | 1,463,135.00 | 53.44 |
Norway exports to Vietnam
| Products | 7T/2023 | 7T/2024 | Change (%) |
|---|---|---|---|
| All products (USD) | 170,125,739.00 | 72,403,204.00 | -57.40 |
| Fish and crustaceans, molluscs and other aquatic invertebrates | 3,791,951.00 | 5,659,844.00 | 49.30 |
| Fruits and vegetables | 1,464,390.00 | 1,935,400.00 | 32.20 |
| Cashew nuts | 4,391,855.00 | 4,076,125.00 | -7.20 |
| Plastic products | 2,085,575.00 | 1,701,275.00 | -18.40 |
| Bags, purses, suitcases, hats, umbrellas | 3,576,587.00 | 3,307,996.00 | -7.50 |
| Wood and articles of wood | 1,910,899.00 | 1,393,843.00 | -27.10 |
| Textiles and garments | 11,545,363.00 | 5,895,316.00 | -48.90 |
| Footwears, parts of such articles | 8,385,180.00 | 11,439,150.00 | 36.40 |
| Articles of iron or steel | 1,463,700.00 | 1,028,729.00 | -29.70 |
| Cameras, camcorders and components | 3,704,248.00 | 2,147,094.00 | -42.00 |
| Other machinery, equipment, tools and spare parts | 4,923,962.00 | 8,628,167.00 | 75.20 |
| Transport vehicles and spare parts | 105,986,790.00 | 5,811,184.00 | -94.50 |
| Furniture products from materials other than wood | 1,068,110.00 | 1,480,063.00 | 38.60 |
Norway imports from Vietnam
| Products | 7T/2023 | 7T/2024 | Change (%) |
|---|---|---|---|
| All products (USD) | 246,801,687.00 | 274,580,243.00 | 11.26 |
| Fish and crustaceans, molluscs and other aquatic invertebrates | 161,816,884.00 | 178,604,954.00 | 10.37 |
| Chemical products | 2,794,127.00 | 2,688,512.00 | -3.78 |
| Fertilizers | 12,713,739.00 | 20,734,345.00 | 63.09 |
| Articles of iron or steel | 5,538,017.00 | 3,933,742.00 | -28.97 |
| Other machinery, equipment. tools and spare parts | 27,781,966.00 | 32,548,139.00 | 17.16 |
OTHER NEWS
Agricultural sector posts a trade surplus of $11.8 billion in eight months
The agro-forestry-fishery sector ran a trade surplus of US$11.8 billion in the first eight months of this year, representing a rise of 68.4 per cent over the same period last year, according to statistics from the Ministry of Agriculture and Rural Development.
Exports of most agricultural products saw increases in January – August, bringing the total export value to $40.08 billion in the period, up 18.6 per cent.
Major export products included timber from wood products, with a total export value of $10.24 billion, up 20.6 per cent; coffee $4.03 billion, up 36.1 per cent; rice $3.85 billion, up 21.7 per cent; cashews $2.77 billion, up 21.7 per cent; fruits and vegetables $4.63 billion, up 30.6 per cent; shrimp $2.41 billion, up 9.5 per cent; and tra fish $1.2 billion, up 8.2 per cent.
Average export prices of many agricultural products also increased significantly, including rice up by 14.8 per cent to $625 per tonne, coffee up 54.5 per cent to $3,805 per tonne, rubber up 16.6 per cent to $1,567 per tonne, pepper up 47 per cent to $4,810 per tonne and tea up 2.2 per cent to 1,756 per tonne.
Only cashew price saw a slight drop, by 1 per cent to $5,701 per tonne.
The US, China and Japan remain the three largest export market for Việt Nam’s agro-forestry-fishery products. Exports to the US accounted for 21.4 per cent of Việt Nam’s total agricultural export value, up 23.5 per cent. China accounted for 20.4 per cent, up 10.2 per cent and Japan accounted for 6.7 per cent, up 4.6 per cent.
The agriculture ministry said that the focus will be on accelerating domestic consumption and promoting exports in the remaining months of this year, taking advantage of trade deals and enhancing negotiations for official exports to China, the US and the EU.
Efforts will also be made to strengthen and expand potential markets such as Muslim countries, the Middle East and Africa, the ministry said.
In August, Việt Nam and China signed three protocols for the official exports of fresh coconuts, frozen durian and crocodiles to China, opening significant opportunities for farming.
Việt Nam and the US also in August reached an agreement on technical requirements for passion fruits to be exported to the US and initiated reviews for some other fruits including seedless lemons, guava and jackfruit. — VNS
MARD reports a plan to use nearly 6 million tonnes of CO2
The Ministry of Agriculture and Rural Development (MARD) has revised the amount of CO2 transferred in 2018-2019 in the north central region.
The ministry sent a report to the Prime Minister on the authority to transfer nearly six million tonnes of residual carbon dioxide (CO2) in the region in that time.
The report states that, by the end of 2023, the MARD has transferred 10.3 million tonnes of CO2 to the World Bank (WB). WB also had a letter confirming the transfer of about 95 per cent of the transferred emission reduction results to Việt Nam.
WB previously confirmed the results of reducing emissions in the North Central region in the 2018-19 period, reaching 16.21 million tonnes of CO2. Of which, the amount of CO2 credit transferred to the WB under the Emission Reductions Payment Agreement (ERPA) is 10.3 million tonnes.
According to the signed ERPA, the WB has the right to purchase up to five million additional tonnes of CO2 at US$5/tonne and about 95 per cent of the transfer results will be transferred back to Việt Nam to contribute to the nationally determined contribution (NDC) according to commitments in ERPA and regulations in Decree No 107/2022/ND-CP.
WB has offered to buy an additional one million tonnes of CO2 from reducing emissions in the north central region in the 2018-2019 period. The MARD has reported to the Prime Minister, proposing a plan to transfer an additional one million tonnes of CO2 to the WB.
At the same time, MARD also proposed to handle 4.91 million tonnes of CO2 in the 2018-2019 period in previously sent documents.
The ministry also consulted ministries and People’s Committees of six provinces in the region, including Thanh Hóa, Nghệ An, Hà Tĩnh, Quảng Bình, Quảng Trị and Thừa Thiên Huế, on a plan to transfer one million tonnes of CO2 to the WB and propose to handle the remaining carbon credit.
Regarding the additional transfer of one million tonnes of CO2 to the WB within the maximum additional volume of five million tonnes of CO2, authorised by the Government and on behalf of the Government of Việt Nam and forest owners in six provinces in that area of Việt Nam, the MARD will transfer it to the WB during the implementation of ERPA.
The WB does not propose to buy more for the remaining 4.91 million tonnes of CO2 from emissions reductions. Therefore, the ministry proposed, Việt Nam has the right to transfer to other potential partners.
However, up to now, the ministry has not received proposals on the exchange and transfer of this emission reduction. Accordingly, Việt Nam can use this remaining emission reduction to contribute to the NDC.
In case an organisation or partner is interested and proposes an exchange or transfer, the ministry will research and propose a plan to manage and use this revenue source and get opinions from the Ministry of Finance, the Ministry of Natural Resources and Environment and the six north central provinces, then report to the Prime Minister for consideration and decision to ensure it does not affect the results of contributions to the NDC.
In case there is no agreement from the Prime Minister on the transfer of remaining emission reductions in the 2018-19 period (including one million tonnes of CO2 as proposed by the WB and 4.91 million tonnes of remaining CO2), the MARD proposed the Prime Minister to allow the ministry to send a letter to the WB about not transferring an additional one million tonnes of CO2.
Until there are evaluation results of the implementation of Decree No 107/2022/ND-CP, the MARD will propose a management and use plan for the remaining emissions reduction and report to the Prime Minister. — VNS
ADB keeps Việt Nam’s growth outlook unchanged
The Asian Development Bank (ADB) has kept the growth outlook for Việt Nam in 2024 and 2025 unchanged at 6 per cent and 6.2 per cent respectively, on the back of a strong first-half performance in 2024.
The forecast was released on Wednesday in the latest edition of Asian Development Outlook (ADO), which periodically provides assessment of recent economic developments in Asia and the Pacific and medium-term macroeconomic projections for the region.
The report said that trade-related manufacturing – one of the main drivers of recovery – is expected to slow down over the near term, while domestic demand will also remain subdued. Inflation is projected to stabilise at 4 per cent.
Shantanu Chakraborty, ADB Country Director for Việt Nam said: “The first half of 2024 was quite impressive, with GDP growth at 6.4 per cent compared to the same period last year. This was mainly driven by strong trade recovery, where exports grew by 14.5 per cent and import by 17 per cent over last year. However, the domestic segment remained sluggish, with final consumption growing by only 5.8 per cent.
“Việt Nam can maintain its growth momentum in 2024 through sustained trade recovery in export-led manufacturing and positive inflows of FDI and remittances, while making more efforts for growth restoration in services, stable agriculture production and domestic consumption recovery.”
He said that though the economy is expected to post solid growth this year and grow at a slightly higher pace next year, the bank sees several external downside risks that could slow down Việt Nam’s momentum, including softened global demand caused by slow economic recovery among its trading partners and continued geopolitical tensions.
Both could slow down the recovery of Việt Nam’s export-led growth and lower pace of normalisation of interest rates in the US and other advanced economies, which would continue to put pressure on the exchange rate. Growth in 2024 also depends on effective implementation of the Government’s fiscal measures and public investment.
“In recent years, the relative slowdown in growth has exposed the risks of structural fragilities in the Việt Nam economy, for example the reliance on FDI-led export manufacturing, the incipient capital markets and overreliance on bank credit, among others. If these risks are addressed in a timely fashion, Việt Nam could achieve stronger growth. Policy measures in 2024 would therefore need to combine short-term growth support measures to strengthen domestic demand with long-term structural remedies to promote sustainable development,” he said.
ADB has also slightly raised its economic growth forecast for developing Asia and the Pacific this year to 5.0 per cent from a previous projection of 4.9 per cent, as rising regional exports complement resilient domestic demand. The growth outlook for next year is maintained at 4.9 per cent.
Inflation is forecast to slow to 2.9 per cent this year amid easing global food prices and the lingering effects of higher interest rates.
After a post-pandemic recovery that was driven mainly by domestic demand, exports are rebounding and helping propel the region’s economic growth. Strong global demand for electronics, particularly semiconductors used for high-technology and artificial intelligence applications, is boosting exports from several Asian economies.
“Most of Asia and the Pacific is seeing faster economic growth compared with the second half of last year,” said ADB Chief Economist Albert Park. “The region’s fundamentals remain strong, but policymakers still need to pay attention to a number of risks that could affect the outlook, from uncertainty related to election outcomes in major economies to interest rate decisions and geopolitical tensions.”
While inflation is moderating toward pre-pandemic levels in the region as a whole, price pressures remain elevated in some economies. Food inflation is still high in South Asia, Southeast Asia and the Pacific, in part due to adverse weather and food export restrictions in some economies.
The growth forecast for the People’s Republic of China (PRC), the region’s largest economy, is maintained at 4.8 per cent this year. A continued recovery in services consumption and stronger-than-expected exports and industrial activity are supporting the expansion, even as the PRC’s struggling property sector has yet to stabilise. The Government introduced additional policy measures in May to support the property market.
The outlook for India, the region’s fastest-growing economy, is also unchanged at 7 per cent for the fiscal year 2024. India’s industrial sector is projected to grow robustly, driven by manufacturing and strong demand in construction. Agriculture is expected to rebound amid forecasts for an above-normal monsoon, while investment demand remains strong, led by public investment.
For Southeast Asia, the growth forecast is maintained at 4.6 per cent this year amid solid improvements in both domestic and external demand.
This year’s outlook for the Caucasus and Central Asia is raised to 4.5 per cent, from a previous projection of 4.3 per cent, driven in part by stronger-than-expected growth in Azerbaijan and the Kyrgyz Republic.
In the Pacific, the outlook for 2024 is maintained at 3.3 per cent growth, driven by tourism and infrastructure spending, along with revived mining activity in Papua New Guinea. — VNS
Long An plans 14 new industrial clusters
Long An Province will call for investment and develop 14 new industrial clusters by 2025, according to the locality’s recently announced development plan for industrial clusters for this decade.
To come up in the districts of Đức Hòa, Cần Đước, Thạnh Hóa, Đức Huệ, Bến Lức, Thủ Thừa, and Tân Trụ, their combined area will be 976ha.
Huỳnh Văn Sơn, deputy chairman of its People’s Committee, said by 2030 all industrial clusters would have infrastructure and centralised wastewater treatment systems.
With respect to exisiting industrial clusters, it has instructed relevant agencies to draft regulations for their efficient management and evaluate their technical infrastructure.
They need to attract tenants to fill up existing clusters and ensure new ones are built to plan, helping investors resolve the difficulties they face with respect to procedures, land acquisition and others.
Huỳnh Văn Quang Hùng, director of the provincial Department of Industry and Trade, said Long An has 18 operational industrial clusters with a total area of over 1,100ha.
Their infrastructure is more or less in place though some have not completed wastewater treatment systems and land acquisition or face problems with it.
Another 27 (over 1,300ha), are completing procedures related to investment, land and infrastructure, but progress is somewhat tardy due to lengthy land acquisition procedures.
The province is also soliciting investment for a further 28 (1,808ha) industrial clusters, including the 14 slated to be developed next year. VNS