Export oriented industrialization

The EU is Vietnam’s second-largest trading partner and an export market that witnessed the euro fall below $1 for the first time in nearly 20 years on July 29. Euro-dollar parity threatens the nation’s exports, source: freepik.com Pham Van Viet, chairman of Viet Thang Jeans, the top 5 leading fashion companies in Indochina, said that the immediate impact on textile and garment export enterprises is a decrease in value. All customers in Europe pay in euros and Vietnamese businesses that receive money back home must exchange it for USD. Now that the euro has fallen to the level of the US dollar, the export value of each shipment will decrease accordingly. “Profits of businesses are low because input costs such as gasoline, input material prices, and labour costs have all increased, now the plunge in euro prices will drag profits down even more,” he told VIR. Viet added that the depreciation of the euro shows that the European market is currently unstable, and … [Read more...] about Euro-dollar parity threatens the nation’s exports

General Department of Vietnam Customs data show that in May 2022, Vietnam exported 9,340 tonnes of coffee worth US$22 million to the US, down 16.5 percent in volume but up 2.3 percent in value compared with May 2021. In the first five months, the export volume reached 50,580 tonnes, with the value reaching US$124.95 million, down 2.9 percent in volume but up 23.6 percent in value year-on-year. Harvesting coffee The average price of Vietnamese coffee exports to the US in May 2022 was US$2,359 per tonne, down 5.9 percent compared with April but up 22.4 percent compared with May 2021. In the first five months, the average price was US$2,470 per tonne, up 27.2 percent year-on-year. According to the Center for WTO and International Trade, in the first four months of 2022, the US imported 768,800 tonnes of coffee worth US$4.11 billion, up 10.8 percent in volume of 49.6 percent in value compared with the same period last year. The average import price was US$5,353 per … [Read more...] about Coffee exports to US rise in value

Kenneth Chan, senior director of Market Development at Renze Textile JSC, under Texhong Group, has unveiled a new process to monitor origin-tracing. A tracing system is slated to be put into operation in August for the subsidiaries of Texhong Group, after Chan informed the Vietnam Textile and Apparel Association and the American Cotton Association (CCI) at a meeting earlier in June. This US has made major decisions on cotton origin-tracing that affects Vietnam and beyond, Duc Thanh Renze, one of eight Texhong member companies, is using American cotton for its products to ensure product quality and comply with strict requirements for export to the United States and EU. From March, customers were able to access the Texhong cotton tracing system to trace the details of their orders. Chan noted that Renze is focusing on sustainability and transparency. He also informed the company’s partners about key development trends as well as viable solutions for Vietnamese suppliers to … [Read more...] about US ratchets up origin-tracing on cotton materials

As Vietnam steps into the post-pandemic era, experiences and learnings from the pandemic serve as a reminder of the importance of digital transformation and its crucial technology component. Eunjung Han, consultant at Rouse Legal Vietnam and vice chair of the Digital Sector Committee of the European Chamber of Commerce in Vietnam Despite COVID-19’s negative economic and social impact, Vietnam remains an attractive destination to European investors. According to the European Chamber of Commerce (EuroCham) 2021 White Book, Vietnam’s stable macro-economic climate, with inflation in the single digits, continues to increase investor confidence in the country’s trade and investment environment. Only adding to that, the EU-Vietnam Free Trade Agreement (EVFTA) is paving the way for continued foreign direct investment (FDI) from the EU and is viewed as a means for shared recovery and economic rebound. As the first comprehensive FTA between the EU and a developing country in … [Read more...] about EVFTA underpinning growth in Vietnamese tech market

In the updated draft national master plan for the rest of the decade and with orientations to 2050 that was released last week, the section on the nation’s urban and rural network highlighted that Hanoi and Ho Chi Minh City are continuing to promote their effectiveness and spillover effects. It is hoped that they will develop dynamically and creatively in order to compete internationally. Vietnam’s planning orientation for the next few years aims to push development of satellite towns, Le Toan At last week’s conference on the national master plan held by the Ministry of Planning and Investment in Hanoi, Tran Hong Quang, director general of the ministry’s Vietnam Institute for Development Strategies (VIDS), revealed that the two biggest cities will focus on developing high-quality and high-value-added services in sci-tech, health, training, and IT, as well as restricting processing and manufacturing industries that use a lot of land and labour. “We should push the … [Read more...] about Modern slant found through key planning

What are the concerns surrounding the Uyghur Forced Labor Prevention Act (UFLPA) implementation among Vietnamese garment exporters to the US? Association chairman Vu Duc Giang Some of the concerns are real. Since the UFLPA became effective in June, Vietnam has witnessed certain impacts on its garment exports to the US. Vietnam has maintained its position as the world’s third-largest cotton importer with a volume of 1.5 million tonnes per year. This includes 800,000 tonnes of cotton imported from the US, accounting for 60 per cent of the total imports. In January 2021, US Customs and Border Protection announced a ban on raw fibres, apparel, and textiles made from Xinjiang-grown cotton, which also covers cotton products made in third countries. Customs will detain imported merchandise unless the importer can prove by clear and convincing evidence that the goods were not from Xinjiang. What is the status of the recommendations from the US on Chinese cotton? Vietnam … [Read more...] about Facilitating recovery of Vietnam’s yarn sector in midst of US policy enforcement

Thanh Cong Textile Garment Investment Trading JSC exported over one-third of its products to the United States in 2021. However, the company started to face challenges following the US’ blanket ban on all Xinjiang cotton. Last year, President Joe Biden signed into law the Uyghur Forced Labor Prevention Act. Vietnam’s cotton imports reach up to one million tonnes each year, Photo: Shutterstock Tran Nhu Tung, chairman of the company, said that the company has adopted regulations this year related to this act. Accordingly, buyers have to be responsible for export orders to the US which source Chinese cotton materials. Thanh Cong secures many large orders from the US. In 2022, the company sets a target to generate $179 million in revenues and $10.87 million in profit, up 120 per cent and 188 per cent respectively against last year. Tung noted that yarn exports are the main driving force for Thanh Cong. “There is a rapidly growing demand for yarn imports in the global … [Read more...] about Demand for cotton forces adjustments

At a meeting with the leader of the southern province of Binh Duong last week, chairman of Sharp Corporation Yoshihiro Hashimoto revealed an expansion plan in the locality. Investors already with factories in the country are demonstrating that they trust the business climate here, Photo: Le Toan Sharp Group is exploring opportunities in the southern provinces of Vietnam, including Binh Duong, to move the supply chain away from the Chinese market, promoting market diversification and distribution, according to Hashimoto. “In the coming time, Sharp will continue to expand and build one more large-scale factory, oriented to develop high-tech and advanced products,” he said. Binh Duong is assessed as a locality with an attractive investment environment, in line with Sharp’s criteria. The group has two production factories located in Vietnam, at Singapore Industrial Park (VSIP) I and an extended VSIP II. Sharp hopes to be supported in construction land, labour, and … [Read more...] about New foreign capital stutters despite overall deal boost

Delegates attend the webinar (Photo: VNA) Hanoi (VNA) - The Vietnamese Embassy in Morocco and Côte d'Ivoire has recently collaborated with the Ministry of Industry and Trade’s Vietnam Trade Promotion Agency and the Côte d'Ivoire Chamber of Commerce and Industry to organise a webinar connecting businesses of the two countries, and introducing the Vietnamese market. Speaking at the event, Dang Thi Thu Ha , Vietnamese Ambassador to Morocco and Côte d'Ivoire, said that Côte d'Ivoire is one of the leading economies in West Africa and has great potential in economic and trade cooperation with Vietnam. With a population of nearly 26.5 million people, this is a country with strong commodity consumption, but its requirements for product standards are not too strict. Côte d'Ivoire is also rich in natural resources, with an abundant source of raw materials for many manufacturing industries that Vietnam can access and exploit, including some products that Vietnam has been … [Read more...] about Webinar connects Vietnamese, Côte d’Ivoire businesses

Scores of businesses have already unveiled their second-quarter business results, with many showing healthy figures. In the first half of this year, Hang Xanh Motors Service JSC (Haxaco) reaped $7.5 million in pre-tax profit, soaring 134 per cent on-year. This year, the company aims to reach $9.2 million in its profit-before-tax target, meaning it has completed 81 per cent after just six months. Haxaco’s board chairman Do Tien Dung unveiled that the company is committed to fulfilling its profit target in only nine months. However, Dung is cautious saying that the auto trade relies heavily on macro factors like fuel price, inflation, and interest rates. Haxaco is confident in reaching its full-year business targets early The auto industry is facing many challenges as customers find it harder to borrow after the central bank declined to loosen credit limits for banks and the scarcity of auto components continues. “Haxaco avoids heavy reliance on bank capital … [Read more...] about Businesses remain optimistic for remainder of the year