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Tag: Vietnam

  • Ministry wants another electricity price hike

    Ministry wants another electricity price hike

    The Ministry of Industry and Trade has proposed a hike in electricity prices this year after pushing it up 7.5% last year to narrow down the loss of national utility Vietnam Electricity (EVN).

    The ministry eyes increasing prices in May this year to cover rising costs and help the state-owned EVN to pay for power generators. Vietnam allows an electricity price hike once every six months if production costs rise 3% or more. The last increase was in November last year, and before that, May.

    EVN recorded a combined loss of VND37 trillion ($1.5 billion) in 2022 and 2023. It also has VND14 trillion in debt incurred from previous years due to currency exchange rate changes.

    Last year, prices were raised 7.5% to VND2,092.78 per kilowatt-hour after years of staying flat.

    Analysts of Vietcobank Securities have recently anticipated an electricity price hike as the El Nino effect causes low water level at northern hydropower plants.

    Dinh Trong Thinh, an analyst from the Academy of Finance, said that raising prices was necessary to cover increasing costs but EVN needed to be transparent in its financial situation to avoid raising controversy among the public.

    Analyst Ngo Duc Lam, former head of the Energy Institution under the Ministry of Industry and Trade, said that Vietnam needed to be “very cautious” in raising electricity prices as it would push up the prices of transport and many essential goods.

    Phan The Cong, an analyst from Thuongmai University, said that two hikes last year have already had an impact on the economy and inflation, and therefore the timing of another hike needs to be considered carefully.

    Thinh added that in the long run electricity retail price needs to be regulated under market principles, which means it will rise when costs increase and fall when costs decrease. Changes in retail price therefore will become a normal part of people’s lives and will not have a major impact.

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  • Fruit, vegetable exports rise by 89%

    Fruit, vegetable exports rise by 89%

    According to the Vietnam Fruit and Vegetable Association, fruit and vegetable exports have risen by 89.2% this year to US$459 million due to a surge in demand from China.

    China has imported large volumes of durian, bananas and dragon fruit.

    Cold snaps in many places in that country have limited domestic banana supply since the fruit turns black when the temperature drops.

    China harvested dragon fruit in abundance last year, but the season is over, and Vietnam is able to export the fruit from January to May.

    Chinese use dragon fruit as an item of worship during the Lunar New Year, and so demand for imports from Vietnamese has skyrocketed.

    During President Xi Jinping’s recent visit to Vietnam, the Chinese side said it would open its market to many Vietnamese agricultural products, including fresh coconuts, frozen fruit products, citrus fruits, avocados, custard apples, and water apples.

    The two sides also signed a protocol for watermelon export.

    In addition to China, the U.S., the EU and some Asian countries are also set to open their doors to more Vietnamese fruits.

    The U.S. and Australia plan to import passion fruit, Japan, South Korea, Australia, and India want to buy grapefruit with India also eyeing durian imports.

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  • Airlines add more flights amid high holiday demand

    Airlines add more flights amid high holiday demand

    Vietnam Airlines has increased the number of flights with up to 66,200 more seats to meet high demand during the upcoming holiday.

    The group announced Tuesday morning that 310 flights will be added between Jan. 25 and Feb. 24. Air travel demand is expected to rise during the seven-day Lunar New Year holiday in early February.

    This means Vietnam Airlines Group, which includes Pacific Airlines and Vietnam Air Services Company, will offer a total of 12,374 flights during the holiday season, up 10% from the same period last year.

    The new flights will mostly be on domestic routes between Ho Chi Minh City/Hanoi and Da Nang, Hai Phong, Vinh, Thanh Hoa, Quy Nhon, Hue and Quang Nam.

    The hike came after the Civil Aviation Authority of Vietnam asked airlines to increase their number of night flights to meet high demand as most seats have been occupied.

    As of Jan. 12 Vietnamese airlines had sold 80-100% of seats departing HCMC and Hanoi between Jan. 24 and Feb. 25, the authority said.

    Customers have been complaining that they have trouble booking tickets due to low supply and prices being higher than in previous years.

  • Electrified vehicles rising to trendy choice in Vietnam

    Electrified vehicles rising to trendy choice in Vietnam

    Vietnamese users are becoming more familiar with hybrid and pure electric vehicles because numerous well-known brands have expanded to this category.

    Truong Huy, a technical expert for an electric vehicle software outsourcing company in Ho Chi Minh City, was one of the earliest to come to the Electrified Vehicle Exhibition at Yen So Park, Hanoi, last weekend to learn about the hybrid and pure electric car models.

    “As a person working in technology related to electric vehicles, this exhibition is a good opportunity for me to learn more about the companies,” Huy said while standing next to the chassis of a Hyundai electric car. “Mainly working in software, this is a rare time I have seen a complete hardware platform for an electric vehicle.”

    In the past three years, electric or hybrid cars have gradually become more familiar to Vietnamese customers. But Vietnam has never had an exhibition dedicated to this category, which means few opportunities for Huy and other customers to experience cars from different brands or learn about their software and hardware technologies.

    The Electrified Vehicle Exhibition organized on Jan. 13–14 can be considered the start of events dedicated to fuel-saving and environmentally friendly vehicle lines.

    In previous years, only a small number of electrochemical products were sold on the market, but now it is different.

    In 2020, except for Toyota with the small crossover Corolla Cross with a hybrid engine option, the market did not have a product with a similar or pure electric engine, specifically in the popular segment.

    By 2023, the number of electrochemical products and companies participating in the field has increased, creating a trend big enough to draw customers’ attention.

    The domestic EV segment was led by VinFast in 2023, with an ecosystem ranging from bicycles, motorbikes, cars, and buses. The company has been selling electric cars since 2021 with the VF e34 and has now added VF 5, VF 6, VF 7, VF 8, and VF 9 to the car category alone.

    In addition to VinFast, Hyundai is selling the Ioniq 5 series. Previously, the Korean company launched the Santa Fe hybrid for sale. Its distribution by Thanh Cong Group also hinted at the possibility of the company selling the G80 EV, a pure electric luxury sedan, in the near future.

    Hybrid cars are becoming more diverse with Kicks from Hyundai, CR-Vs from Honda, Sorentos from Kia, and H6s from Haval. Toyota specifically expanded this car segment in Vietnam with the addition of the Altis, Camry, Yaris Cross, Innova Cross, and Alphard.

    Besides Haval, the presence of other Chinese brands in Vietnam, such as Wuling and Haima, helps make the electrified vehicle segment more exciting. Pure electric car options from these brands include the market’s cheapest Wuling Mini EV, or the Haima 7X-E MPV.

    Most of these car models were present at the Electrified Vehicles Exhibition 2024.

    Xuan Huy drove more than 10 km from Ha Dong District to the exhibition to find a second car for his travel in the city. “I went to check all the booths because I do not favor any specific brands. There have been very few occasions when many companies display hybrid or pure electric car products like this.”

    Electrified vehicles are gradually becoming more popular. But many companies believe that customers still need orientation and education about the technology and how to use these products.

    Compared to the technology of internal combustion engine vehicles, which has been familiar to users for hundreds of years, electrified vehicles’s is new.

    “Many people are still concerned about whether electric vehicle technology is suitable for cars that they use every day,” said Son Lam, a representative of TMT Motors, the distributor of the Wuling brand in Vietnam. “Participating in this exhibition is also a way for the company to answer more customers’ concerns about electric vehicles, especially their technology.”

    A Hyundai Thanh Cong representative said that pure electric and hybrid technology is generally still new to the majority of Vietnamese customers. “Disseminating knowledge about electrified vehicles to customers is what the company is doing, this exhibition is one such occasion for us to do that.”

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  • Rice exports reach record high

    Rice exports reach record high

    Vietnam’s rice exports soared to 8.13 million tons, valued at US$4.7 billion in 2023, setting a new national record, as per the General Department of Customs.

    This marked a 14.4% increase in volume and a 35.3% rise in value from the previous year, despite challenges from the El Nino weather pattern.

    The export surge is partly attributed to India’s export ban on non-basmati white rice, which has affected global rice trade.

    India, a major player in the global rice market, contributes 40% to the worldwide rice trade. Its largest buyers include Iran, Saudi Arabia, and China.

    In 2023, several countries increased their rice imports from Vietnam as the global supply dwindled. A rice export business director from Dong Thap Province said some countries that typically imported little rice from Vietnam began placing substantial orders.

    The ongoing Indian export ban has left many countries seeking reliable rice sources, creating an optimistic outlook for Vietnam’s rice exports in 2024.

    In 2023, the Philippines was the largest importer of Vietnamese rice, purchasing 3.1 million tons, followed by Indonesia, China, and Ghana. Vietnam now is the world’s fifth-largest rice producer and third-largest exporter.

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  • Bridgestone Vietnam builds 10th bridge in Soc Trang

    Continuing its journey of the “Bridges to Knowledge” project, Bridgestone Vietnam built and inaugurated the 10th bridge, Truong Tho in Soc Trang, on Dec. 27.

    The project was implemented by Bridgestone Tire Sales Vietnam Limited Liability Company to realize Empowerment (Committed to contributing to a society that ensures accessibility and dignity for all) and Ease (Committed to bringing comfort and peace of mind to mobility life).

    The two are part of corporate commitments announced under the “Bridgestone E8 Commitment” in March 2022.

    Soc Trang is known as a beautiful land rich in culture and home to the Kinh, Khmer and Chinese ethnic groups. Though it has advantages in terms of soil and water resources that allow it to grow a range of crops, the life and work of people here still face many difficulties in terms of the movement and transport of agricultural produce.

    For people living in Truong Tho hamlet, Truong Khanh village, Long Phu District, Soc Trang Province, the Truong Tho bridge built in 2008, located on the main road and connecting the village, serves the transportation needs of over 225 households including 153 children.

    The old Truong Tho Bridge was severely damaged on the side, its base had broken concrete and the iron reinforcement was badly rusted.

    According to the local government’s assessment, the bridge was damaged to an alarming extent and needed urgent investment in new construction to ensure users’ safety.

    Bridgestone Vietnam invested in building a new Truong Tho Bridge with a total length of 27 m, width of 3.3 m and a load capacity of up to three tons.

    This new bridge will enable hundreds of students to take a safer path to knowledge, help people transport and trade goods and agricultural products conveniently and improve safety for the community in general and residents of Truong Tho hamlet and Truong Khanh village in particular.

    This is the 10th bridge under its “Bridge to Knowledge” project by Bridgestone Vietnam, which started in 2019. The company said it would continue the journey of serving the community as part of its “Serving Society with Superior Quality” mission.

    Stressing the significance of the Truong Tho construction project, Naoki Inutsuka of Bridgestone Tire Sales Vietnam Limited Liability Company said the 10th bridge is a very important milestone for the company’s commitment to society.

    Bridgestone’s Truong Tho Bridge project received cooperation from the local government, Dealer Vu Manh Thang (Bridgestone’s distributor in Soc Trang), E-XPRO Advertising Company Limited and created enthusiasm among people in Truong Khanh village.

  • Vietnam Electricity eyes wind power import from Laos

    Vietnam Electricity eyes wind power import from Laos

    Vietnam Electricity wants to import wind power from Laos as it seeks to combat a looming shortage in the northern region.

    Several wind power investors in Laos with a combined capacity of 4,149 megawatts want to sell electricity to Vietnam, the national utility said in a report to the Ministry of Industry and Trade.

    The imports will help bridge a supply gap in the northern region between 2024 and 2030, especially in summer when water levels plummet in hydropower dams.

    Power Development Plan 8 focuses on the development of liquefied natural gas and renewable power sources, which are costly, and does not prioritize cheaper sources such as hydropower.

    This means importing power from Laos will help reduce costs somewhat.

    Laos’s maximum wind power feed-in tariff is 6.95 U.S. cents per kilowatt-hour for plants that become operational by the end of 2025, which is much more competitive than Vietnam’s 8.5 cents for onshore and 9.8 cents for offshore plants that went on stream before November 2021. But the Laos price is higher than for some plants in Vietnam that went on stream after that date. Their tariffs start at 6.42 cents.

    Some hydropower plants in Laos with whom it has signed purchase agreements would only begin generating power after 2025, meaning alternative sources are needed in the next two years, EVN said.

    It called on the government to install more transmission lines to increase imports from Laos.

    In the first 11 months of this year Vietnam’s electricity imports – from Laos but also China — accounted for 1.5% of total supply.

  • National Citizen Bank to double charter capital with private placement

    National Citizen Bank to double charter capital with private placement

    National Citizen Bank (NCB) has approved a private placement to issue 620 million new shares in 2024 to double its capital.

    The issuance is scheduled for the second quarter. The issued shares will be blocked from trading for one year.

    If the plan succeeds, NCB’s charter capital will rise from VND5.6 trillion to VND11.8 trillion ($213 million to 487 million).

    NCB has for years been among the banks with the lowest amount of capital in Vietnam.

    The minimum charter capital requirement in the country is VND3 trillion. Household appliance maker Sun Group became a shareholder in the bank last year.

    NCB is in the process of restructuring. It has a bad debt ratio of more than 3%.

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  • New transmission line proposed to import more electricity from Laos

    New transmission line proposed to import more electricity from Laos

    The Ministry of Industry and Trade has proposed installing another power transmission line to Laos to increase supply.

    It would help ensure energy security for northern Vietnam, especially during the dry season, as no new major power plant is set to go on stream until 2025, Minister of Industry and Trade Nguyen Hong Dien said at a recent meeting.

    Vietnam imports 3,000 megawatts of electricity from Laos through a 220-kilovolt line.

    In October Vietnam Electricity already began laying a 500-kilovolt line strong spanning 45 kilometers to connect the two countries.

    The work, to cost VND1.1trillion ($45.26 million), will be completed by the end of next year when it will increase import capacity to 2,500 MW a year.

    Vietnam signed a deal with Laos in 2019 to buy 3,000 MW until 2025 and 5,000 MW a year in 2026-30.

    In the first 11 months of this year Vietnam’s imports – also from China — accounted for 1.5% of total electricity supply.

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  • Apple to move key iPad engineering resources to Vietnam

    Apple to move key iPad engineering resources to Vietnam

    Apple is allocating product development resources for iPad to Vietnam, Nikkei reported on Friday, citing sources briefed on the matter.

    Apple is working with China’s BYD, a key iPad assembler, to move new product introduction (NPI) resources to Vietnam, the report said, adding that this is the first time the company has shifted NPI resources to Vietnam for such a core device.

    Engineering verification for test production of an iPad model will start around mid-February and the model will be available in the second half of next year, it said.

    Apple and BYD did not immediately respond to Reuters’s request for comment.

    Apple suppliers including Luxshare and Foxconn also invested in the Southeast Asian country earlier this year to further diversify production away from China.

  • Citi organizes Vietnam Digital Leaders Summit 2023

    Citi organizes Vietnam Digital Leaders Summit 2023

    Citi brought together about 100 leaders in the Vietnam technology landscape, including founders, management teams, and investors, to discuss how the new economy is shaping the future of Vietnam.

    The Vietnam Digital Leaders Summit 2023, hosted by Citi Commercial Bank (CCB) and Citi’s Investment Bank, featured keynote speeches and lively panel discussions covering various topics, from scale-up journeys and macroeconomic challenges to fundraising strategies.

    Speakers and panels also touched on investor perspectives on opportunities in Vietnam and stories on the strategic shift in focus from exponential growth to sustainable profitability. Many speakers addressed the opportunities and pitfalls of harnessing AI throughout the day.

    Shervone Saw, CCB’s Asia Digital Head, highlighted that Citi established its technology industry vertical eight years ago to support the startup ecosystem. The unit supports technology startups from infancy to maturity, offering customized solutions for every step of the journey.

    Citi’s global network powers companies as they expand into new geographies. Citi is a pioneer in the technology industry in Vietnam, witnessing the rapid rise of companies to the unicorn stage.

    At the event, James Perry, APAC Co-Head of TMT Investment Banking, showed that in 2023, private investment into technology companies in Southeast Asia is on track to surpass pre-Covid levels, despite substantial declines from the peak levels in 2021.

    “We understand the importance of having a structured and dedicated approach to support the demands of fast-growing tech firms, particularly in a low-growth and volatile macro-environment. Our goal is to work with clients to form a winning strategy, to achieve new milestones, and to help them deliver their strategic objectives,” said Lin Hsiu-Yi, ASEAN & Singapore Head of Citi Commercial Bank.

    In Vietnam, Citi has supported and served clients for nearly three decades, helping them navigate the opportunities and challenges of rapid growth and international expansion by enabling them to scale faster.

    This flagship event served as a platform for engagement, connection, and exploration of new growth opportunities for clients, investors, industry veterans, and the Citi team.

    “Whether clients are considering expansion, exploring partnerships, or seeking strategic financing, our dedicated team is ready to support their needs and enable their businesses to get into the next phase of growth,” said Ramachandran A.S., Vietnam Citi Country Officer.

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  • Nvidia aims to set up a base in Vietnam

    Nvidia aims to set up a base in Vietnam

    Nvidia wishes to establish a base in Vietnam to develop the country’s semiconductor industry as it considers the Vietnamese market an important one, the Vietnamese government said, citing the U.S. chipmaker’s chief executive.

    In his first visit to the Southeast Asian country, Nvidia’s CEO, Jensen Huang, said the company viewed Vietnam as its home and affirmed its plans to set up a center in the country.

    “The base will be for attracting talent from around the world to contribute to the development of Vietnam’s semiconductor ecosystem and digitalization,” the Vietnamese government statement cited Huang after his meeting with Prime Minister Pham Minh Chinh.

    Nvidia, which has already invested $250 million in Vietnam, is set to discuss cooperation deals on semiconductors with Vietnamese tech companies and authorities in a meeting on Monday, Reuters reported on Friday.

    Vietnam, which is home to large chip assembling factories including Intel’s biggest globally, is trying to expand into chip designing and possibly chip-making.

    The chipmaker has already partnered with Vietnam’s leading tech companies to deploy AI in the cloud, automotive and healthcare industries, a document published by the White House in September showed when Washington upgraded diplomatic relations with Vietnam.

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  • Japan destroys five tons of durian, chili from Vietnam

    Japan destroys five tons of durian, chili from Vietnam

    In October, over five tons of Vietnamese durian and chili were destroyed in Japan for containing a higher dose of pesticide than the country’s standard.

    The batch of 1.4 tons of durian was exported on Oct. 5 by a company in Vietnam to Japan, where it was found to contain 0.03 parts per million (ppm) of procymidone over the Japanese standard of 0.01 ppm, according to a recent report by the commercial counselor of Vietnam in Japan.

    The batch of 4 tons of chili contained 0.2 ppm of tricyclazole and 0.03 ppm of hexaconazole against the standards of 0.01 ppm for both.

    Japanese quarantine authorities destroyed all the produce.

    Procymidone is used to kill unwanted ferns. Tricyclazole kills fungus, and hexaconazole prevents powdery mildew and other diseases.

    Do Van Dung, head of the community health faculty at Ho Chi Minh City University of Medicine and Pharmacy, said that the three pesticides are approved in many countries, and their harmful effects have only been researched on animals.

    It is, therefore, normal for these pesticides to be present on produce exported to Japan, and the fact that they exceeded Japanese standards does not mean that they would harm Vietnamese consumers.

    Some countries, such as Australia, allow a procymidone level in garlic by up to 5 milligrams per kilogram against Japan’s 0.1 mg/kg.

    Ta Duc Minh, the commercial counselor of Vietnam in Japan, said that he has informed Vietnamese authorities to prevent a similar incident.

    Many other developed countries also fail to meet Japan’s standards from time to time as this is a difficult market that requires high quality.

    Japan was Vietnam’s third biggest export market of agriculture, forestry and seafood in the first 10 months, accounting for 7.4% of the total.

    Vegetables and fruits exports rose 6.6% year-on-year to $150 million.

    Durian exports to Japan fell 12.3% year-on-year to $1.3 million.

  • Vietnam secures title for World’s Best Rice

    Vietnam secures title for World’s Best Rice

    Vietnam has been named the winner of the World’s Best Rice Contest for the second time, with six varieties, including the renowned ST25.

    The six varieties were submitted by two each from three companies: Ho Quang Tri Private Company, Loc Troi and Thaibinh Seed.

    They include the ST25 rice developed by farmer-scientist Ho Quang Tri which won the same contest in 2019.

    The organizer did not give an award for one specific variety this year but instead awarded a country as a whole. Cambodia came second and India third.

    30 rice samples were submitted by more than 10 countries for this contest.

    ST25 rice is the result of 25 years of work by farmer-scientist Ho Quang Cua and his colleagues who cross-bred the premium fragrant rice of Soc Trang Province described as having a sweet taste and a hint of pineapple flavor.

    The World’s Best Rice Contest, hosted by the Philippines this year, is held annually since 2009 by U.S. firm The Rice Trader. Last year, Cambodia claimed the first place.

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  • Vietnam calls on China to resume import of ornate rock lobsters

    Vietnam calls on China to resume import of ornate rock lobsters

    Minister of Industry and Trade Nguyen Hong Dien has urged China to consider resuming imports of ornate rock lobsters from Vietnam at an early date.

    He made the request Monday at the 12th meeting of the inter-governmental China-Vietnam Economic and Trade Cooperation Committee.

    Exports of the lobsters, one of Vietnam’s major seafood products, to China were stopped two months ago due to that country’s amendments to wildlife conservation laws that now require clear proof of the farming process, including using only second-generation (F2) lobsters raised in farms for breeding and not wild ones.

    Importers in China need to apply for a certification from its Bureau of Fisheries.

    Responding to the request, Chinese Commerce Minister Wang Wentao said Vietnamese ornate rock lobster farms and packing facilities need to register with China Customs.

    Relevant departments in both countries need to inspect and review businesses and aquaculture facilities that export the lobsters to China, he said further.

    He praised Vietnam for its high-quality agricultural products, citing the example of durian fruits, which make up nearly US$2 billion of its exports to China.

    Agricultural products from Vietnam are highly sought-after on Chinese e-commerce sites.

    Wang also said his ministry would help Vietnamese brands establish themselves in the Chinese market and work with Vietnam’s Ministry of Industry and Trade to set up an agency for promoting Vietnamese goods.

    Dien concurred with Wang’s suggestions and expressed Vietnam’s willingness to cooperate in setting up smart customs in Lang Son Province to expedite movement of goods and strengthen bilateral agricultural cooperation.

    China is Vietnam’s biggest trade partner, with their trade valued at $175.6 billion last year. Vietnam is China’s fourth biggest partner.

    The country is also one of the top importers of Vietnam ornate rock lobsters, but the recent legal hurdle has significantly affected their exports.

    In the year to August Vietnam had exported $76 million worth of ornate rock lobsters to China, a 42% year-on-year decline.

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