Blue steel industries

/ February 26, 2021

Vietnam’s timber industry growth in difficult period

Export growth despite challenges According to Do Xuan Lap, Chair of the Vietnam Timber and Forest Product Association (VIFORES), 2020 was an extremely difficult year for the industry. In addition to supply chain disruptions caused by Covid-19, the wood industry was hit with lawsuits related to trade defense, dumping, avoidance of origin indication, and skyrocketing prices of materials. The pandemic also had a negative impact on 6,000 enterprises in the forest production industry, especially over 1,600 enterprises processing and exporting forest products, forcing some of them to close. In addition, logistics activities faced many difficulties due to the lack of containers, increasing freight rates. Nonetheless, the export value of timber and wooden products rose 16.4 percent to US$13.17 billion, accounting for 31 percent of the agriculture sector’s total export value. Addressing a January 6 conference, Minister of Agriculture and Rural Development Nguyen Xuan Cuong said the sector has developed processing activities of wood and furniture products but few high-value handicraft products and furniture. He urged the sector to focus on development of the forestry economy and annual production growth of 10 percent. Cuong also said the forestry sector is facing many difficulties, including fiercer global trade competition. The Republic of Korea (RoK) and the US, two key furniture export markets of Vietnam, have started tax investigations against Vietnamese furniture exports, requiring it to speed up reforestation to supply timber with origin for exports and processing. Lap said the current forest coverage rate is 42 percent but the sector must pay attention to forest development in the three key areas of the northwest, Central Highlands, and coastal region. Mixed 2021 outlook In addition to the ongoing impact of the coronavirus pandemic, Vietnam faces the risk of a US anti-evasion tax on Vietnamese timber. Lap also emphasized that …

/ September 21, 2020

Support for domestic pharmaceutical industry to rise in Vietnam

Domestic pharmaceutical firms will play an increasingly dominant role in Vietnam. (Photo: gmp.com.vn) Hanoi (VNS/VNA) - The Vietnamese Government's support for the local pharmaceutical industry will remain steadfast, according to Fitch Solutions . Under a report released last week, the UK-based financial information group said this was in part driven by the authorities' push to meet domestic healthcare needs. In addition, the economic potential of the pharmaceutical sector will incentivise continued Government support for the domestic industry. Although the Government aims to increase the share of locally produced pharmaceuticals to 80 percent, an average of 55 percent of medicines in Vietnam are imported every year. One of the reasons for Vietnam’s reliance on imports is that most domestic companies lack research and development capabilities, and do not meet the European Union Good Manufacturing Practice (EU-GMP) or Pharmaceutical Inspection Co-operation Scheme Good Manufacturing Practice (PIC/S-GMP) standards required to manufacture high-quality generic drugs. Further, Vietnam imports more than 90 percent of drug inputs, half of which are from China. According to Fitch, partnerships with local firms are integral. As a result of Government initiatives, domestic pharmaceutical firms will play an increasingly dominant role in Vietnam. “This accentuates the need for multinational pharmaceutical companies to partner with local drugmakers to adapt to this trend. Finding a local company to start such a joint venture is an important first step to enter the market in Vietnam ,” Fitch said. Foreign companies often work with domestic companies, such as Diethelm Vietnam, Zuellig Pharma Vietnam, and Mega Lifesciences, to fill in different needs in the supply chain. Fitch forecast a shift from pharmaceutical production to a more research-based industry was likely. The boost in attractiveness of the Vietnamese market comes at a time when the business …

/ February 25, 2021

Vietnam needs US$320.6-billion for power industry by 2045

The Hanoitimes - Developing renewable energy sources are a priority of the National Power Development Plan VIII. The Ministry of Industry and Trade has predicted that Vietnam will need an investment of US$320.6 billion for developing the national power industry in the 2021-2045 periods. Cat Tuong solar project in the southern province of Long An. Photo: Cat Tuong company It is a major content in the draft National Power Development Plan VIII (PDP VIII) for which the Institute of Energy under the Ministry of Industry and Trade is collecting feedback from the relevant agencies. Vietnam’s electricity output is forecast to rise to 877 billion kWh by 2045 to meet the growing demand for economic expansion, according to the PDP VIII. By 2030, the power industry will need an investment of US$128.3 billion in building electricity generation and the power grid. The total investment in the 2031-2045 period will be some US$192.3 billion. Total installed capacity of electricity sources in Vietnam will reach 137.2GW by 2030, in which wind, solar and other renewable energies will make up the largest proportion (29%), followed by coal-fired thermal power (27%), gas thermal power (21%). Chart: Phi Nhat By 2045, the total installed capacity of power sources will gain nearly 276.7GW, in which wind, solar and other renewable energies account for the major portfolio (44%), besides gas thermal power (24%) and coal-fired thermal power (18%). The draft plan also revealed that Vietnam will continue to import electricity from China, Laos and Cambodia in the next 10 years. Vietnam Electricity, the state-owned company, is purchasing electricity from China through two 220kV power lines, with 1.5 billion kWh of power being bought annually during the 2016-2020 period. This northern neighboring market can sell up to 3,000MW of electricity or more to Vietnam from now until 2030. …