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Rice export volume up but value falls The ministry said the total rice export volume and value in the first nine months of this year reached 5.2 million tonnes and $2.24 billion, respectively. The figures represented a rise of 5.9 per cent in volume and a drop of 9.8 per cent in value compared to the same period in 2018. Of which, Viet Nam shipped abroad 586,000 tonnes of rice in September for $251 million. The Philippines was the top market for Vietnamese rice in the first eight months of this year, consuming 1.76 million tonnes worth $720 million, 2.9 times higher in volume and 2.6 times in value over the same period last year. Strong growth was also seen in other markets, including Australia (75 per cent), Ivory Coast (nearly 35 per cent) and Hong Kong (nearly 35 per cent). The average rice price in the first eight months fell 13.8 per cent year on year to $435 per tonne. White rice led the way in the period, accounting for 47 per cent of total revenue, followed by Jasmine rice … [Read more...] about VIETNAM BUSINESS NEWS OCTOBER 14

Companies issue $7.7b worth of bonds in nine months The nine-month value is equal to nearly 80 per cent of the total bond issuance value in 2018. The figure is also lower than the total registered value of nearly VND276.9 trillion (nearly $12 billion), which means nearly VND98 trillion bonds were unsold. In September, 28 companies made 60 issuances with total capital raised of VND19.4 trillion (excluding international bond issues). Most bonds were three-year term with total value of VND13.5 trillion. Interest rates of bonds issued in September ranged between 6 per cent and 11 per cent per annum. Banks were the main player in the bond market with total issuance value of VND14.1 trillion in September, accounting for 72.78 per cent of total market value. Real estate companies followed with VND965 billion (4.97 per cent) and securities firm with VND413 billion (2.13 per cent). Bonds issued by banks also had the lowest interest rate, averaging only 6.71 per cent per year. Some companies … [Read more...] about VIETNAM BUSINESS NEWS OCTOBER 18

Vietnamese supporting industries lag far behind Thailand Compared with Thailand, Vietnamese supporting industries are still in a nascent stage. The localization ratio of the Thai automotive industry is roughly 60-70% compared with 7-10% in Vietnam, stated Vu Trong Tai, general manager of Reed Tradex Vietnam. Tai told the Saigon Times that the supporting industries in Vietnam have made impressive progress over the last few years. The country has seen more small and medium enterprises (SMEs) participating in the global supply chain, and the localization ratio has increased. Many local companies can now supply high-quality products to Samsung, Intel and other giants. However, there is still much room for development to fill existing gaps. The number of SMEs qualified to serve the global supply chain is limited, modest in scale and lacks collaboration, resulting in low supply capability. In addition, the lack of proper investment in the latest technology hinders competitiveness in terms … [Read more...] about VIETNAM BUSINESS NEWS HEADLINES OCTOBER 20

Plastics industry confident of achieving 3.2 billion USD export target The local plastic industry, with solid growth in shipments, will surely meet its yearly export target of 3.2 billion USD, according to the Vietnam Plastics Association. According to Ho Duc Lam, its chairman, said exports saw impressive growth last year to 3 billion USD while overall revenues jumped to 12 billion USD. “Exports in the first nine months of the year increased by 5 percent and will continue to enjoy good growth in the rest months of the year. “The US-China trade war has offered opportunities to Vietnamese plastics firms to boost exports.” According to the association, exports go to more than 150 countries and territories, with the US and Japan being key markets. In the domestic market, some industries, even those such as aerospace which use high-grade materials, are shifting to plastic products, and as a result sales have grown rapidly, Lam said. Locally-made plastic products are … [Read more...] about VIETNAM BUSINESS NEWS HEADLINES OCTOBER 16

Outdated database, policies hinder sharing economy development Databases and policies that have failed to keep pace with the market’s development have hindered the development of the sharing economic model. At a workshop themed “Strengthening the implementation of the project to promote the sharing economy model,” held in Hanoi on October 10, Pham Xuan Hoe, deputy director of the Banking Strategy Institute, noted that the project had been approved by the prime minister on August 12. The project is aimed at creating a fair business environment for enterprises applying the sharing economy and traditional models and encouraging innovation and the application of digital technology. Vietnam holds strong potential for developing the sharing economy. Recently, Google, Temasek and Bain & Company released a report on the e-economy in Southeast Asia this year. Accordingly, Vietnam’s digital economy will be worth US$12 billion this year and US$43 billion by 2025 … [Read more...] about VIETNAM BUSINESS NEWS HEADLINES