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Tag: Vietnam

  • Vietnam rice exports to Taiwan continue to rise

    Vietnam rice exports to Taiwan continue to rise

    Vietnam’s rice exports to Taiwan rose by 18.5% last year as quality improved and prices were competitive.

    It shipped 20,281 tons worth over US$10 million, accounting for more than 16% of Taiwan’s imports, the third highest market share.

    In recent years Vietnam’s exports of high-grade rice to the market have been steadily increasing as its prices are lower than Thailand’s, Taiwan’s second-largest source of imports at 23,042 tons.

    But Thailand’s exports declined by 20% last year. Vietnam’s sticky rice exports to Taiwan exceeded those of the U.S. and Thailand.

    Overall, Vietnam exported more than seven million tons of rice worth $3.5 billion to the global market last year.

    It was sold in European supermarkets for the first time.

  • Seafood exporter Minh Phu reports surge in profits

    Seafood exporter Minh Phu reports surge in profits

    Minh Phu Seafood Corp., a leading shrimp exporter, reported consolidated after-tax profits of nearly VND840 billion (US$35.6 million) last year, up 27% from 2021 and its highest since 2015.

    Its revenues rose by 20% to VND16.43 trillion.

    According to the Vietnam Association of Seafood Exporters and Producers, shrimp exports were worth a record $4.3 billion last year after rising by 11% on high demand and high prices in the first half.

    In the second half high inflation in major economies affected demand, and exports declined.

    In 2022 shrimp exports to China grew by 61%.

    Vietnam’s shrimp exports to it are expected to continue to surge this year after China’s reopening.

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  • Thai retail giant to invest $1.45B in Vietnam

    Thai retail giant to invest $1.45B in Vietnam

    Thailand’s Central Retail Corporation has announced it will double the number of its Vietnam stores with its largest ever local investment of 50 billion baht (US$1.45 billion).

    The chain’s number of stores will jump to over 600 in 57 of 63 cities and provinces with the new investment over the next five years.

    Central Retail CEO Yol Phokasub said the Vietnamese market has immense potential for continued economic growth.

    He predicted the country would post GDP growth of 6.7% this year and 7.2% next year, compared with Thailand’s average of 3.5% a year. “This will make Vietnam the fastest-growing market in Southeast Asia,” he said.

    Central Retail Vietnam has reported that in this year alone it will invest 6 billion of the baht in developing its businesses nationwide with a focus on food to reinforce its leading position in the nation’s hypermarket segment.

    The Thai company also plans to renovate 10-12 Nguyen Kim chain electronics supermarkets while opening 3-5 new supermarkets and Go! Hypermarkets.

    Central Retail Vietnam currently operates more than 340 stores. Its revenue surged from 300 million baht ($8.7 million) in 2014 to 38.6 billion baht ($1.12 billion) in 2021.

    A Central Retail manager said that in 2022 despite the impact of the economic recession, rising goods prices, and a consumer cut in spending, its sales grew in double digits thanks to its “always low price” policy.

    Japan’s Aeon plans to operate 100 supermarkets across Vietnam by 2025. South Korean retail giant Lotte has also said it will open more supermarkets in Vietnam.

    After gradually withdrawing from China, Lotte now regards Vietnam as its third most important market after South Korea and Japan.

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  • Vietnamese airlines race to find new investors

    Vietnamese airlines race to find new investors

    Pacific Airlines, Bamboo Airways, and Vietravel Airlines are seeking new investors to help them overcome financial difficulties and speed up their post-pandemic recovery.

    Vietnam Airlines, which owns approximately 98% of Pacific Airlines’ shares, has been searching for new investors for its subsidiary carrier since last year.

    The national flag carrier is also looking to sell its stake in jet fuel distributor Skypec to help alleviate some of its difficulties and gradually reduce its losses.

    By the end of last year, Vietnam Airlines was recording an accumulated loss of nearly VND34.2 trillion ($1.45 billion), and its shares are at risk of being delisted as the carrier is set to record three annual losses in a row.

    Bamboo Airways is also seeking new investors to help its ambitious development plans.

    Although the airline was expected to be invested in by a large southern property company, the deal has yet to be finalized and the airline is still looking for new investors.

    Rookie Vietravel Airlines is also seeking investors and has requested the government to increase its charter capital sixfold to more than VND7.6 trillion, mainly to expand its fleet.

    By 2030 the airline seeks to have VND8.25 trillion in charter capital, in which shareholders contribute VND2 trillion, with the remainder coming from undistributed profits and other investors.

    Nguyen Quoc Ky, chairman of Vietravel Airlines, said “the airline is lucky as it has attracted interest from some investors.” He added that the airlines prioritizes domestic investors who can journey with the airline for a long time.

    Each airline has its own strengths to entice investors.

    Pacific Airlines and Vietnam Airlines possess prime flight slots at major airports like Noi Bai and Tan Son Nhat.

    Bamboo Airways is the fastest growing airline with a fleet of 30 jets just four years after it was launched. It also has a network covering both domestic and international markets.

    Vietravel Airlines is part of tourism firm Vietravel’s ecosystem and therefore has a large customer base and a connection with tourism markets.

    Nguyen Hai Quang, a lecturer at the University of Economics and Law under Vietnam National University, Ho Chi Minh City, acknowledged that the pandemic has severely impacted the airline industry and that finding new investors is essential.

    “The aviation business requires large capital and aircraft-related expenses,” he said, adding that this is a good time for investors to join the industry.

    The International Air Transport Association (IATA) has forecast that the global aviation industry will become profitable again this year with a profit to sales ratio of 0.4%.

    But Quang also said that challenges lie ahead for Vietnamese airlines, and one of these is the recovery of the international markets.

    “Only when international markets resume pre-pandemic levels can Vietnamese carriers report profits again,” he said.

    Other factors such as fuel price, currency exchange rates, global economic growth and inflation will also play important roles in the performance of airlines, Quang said.

    When new investors are found, airlines will have many opportunities for growth, he added.

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  • Vietnam needs to build national brands for fruits

    Vietnam needs to build national brands for fruits

    Experts said that Vietnam must develop national fruit product brands to increase added value and competitiveness in international markets.

    Although fruits bring in billions of U.S. dollars in export revenue annually, Vietnam has no well-established fruit brands.

    “When talking about apples, we think about the US,” said Nguyen Dinh Tung, Director of Vina T&T Import-Export Company. “Talking about kiwis, we think about New Zealand. Talking about melons, we think about Japan. Talking about Monthong durians, we think about Thailand. Talking about Musang King durians, we think about Malaysia… Meanwhile, where many types of fruits are grown, Vietnam has no famous fruit brands.”

    Tung said Vietnam has Ri6 durian, which could compete with durian from Thailand and Malaysia in terms of quality and is chosen by many companies as an export product.

    However, it is still falling behind in terms of brand identity and value.

    “Because there is no brand, the price of Ri6 is always about 20% lower than Monthong and much lower than Musang King,” he said.

    Le Thi Kieu Oanh, Director of Apple LLC, which exports Vietnam’s agricultural products to Japan, said Japan imported dragon fruit from Vietnam, but only 10% were sold at supermarkets under Vietnamese brand names.

    According to Ta Duc Minh, Vietnamese Trade Counselor in Japan, Vietnamese lychees are exported to many countries and have become popular with the Japanese market.

    However, Vietnamese lychees remain inferior to their Japanese counterparts in terms of economic value, even though Japan does not have a production advantage in lychees.

    Japanese lychees are grown in Miyazaki over an area of around 10,000 hectares, and Japan has built a brand for its lychees as a precious fruit. There was a time when each Japanese lychee was sold for as much as $10 each, and people still waited in line to buy them, Minh said.

    According to Tung, Vietnam must develop national fruit brands to increase their value and competitiveness in the international market.

    “We should select several types of fruits to build national brands for,” Tung said. “Like New Zealand, this country successfully built brands for kiwis, which have markets around the world with the export value of over $3 billion per year, equal to the whole fruit and vegetable export of Vietnam.”

    To build fruit brands of national pride, Tung said it was necessary to pay attention to factors including varieties associated with soil, Vietnamese culture, quality, food hygiene and safety, planting area, high yield and preservation technology.

    Tung said that grapefruit, coconut and durian were fruits with large potential for export.

    He said that to build national fruit brands, it was vital to control the granting of geographical indication certificates strictly.

    Each type of fruit is only suitable for the climate and soil of certain localities. However, many kinds of fruit, such as pomelo, dragon fruit and lychee, are grown all over the country, which can affect branding, according to Tung.

    Therefore, it is important to select products associated with local culture and history to grant and manage geographical indication certificates.

    For example, the best quality coconuts are from Ben Tre province, lychees from Bac Giang and Hai Duong, white-flesh dragon fruit from Binh Thuan and red-flesh dragon fruit from Long An. Vietnam could choose typical products of each locality and upgrade them to national brands.

    Ngo Tuong Vy, General Director of Chanh Thu Company, said that among dozens of fruits exported, Vietnam could choose from three to five fruits to focus the resource on to build brands of Vietnam’s pride.

    “It’s time for Vietnamese fruits to focus on improving quality and adding cultural and creative elements to farming methods so that products contain stories that appeal to consumers,” Minh said.

    Minh pointed out that Japan focused on the quality of some world-famous fruits of the country. Even output was controlled to maintain selling prices. For some, special farming techniques were incorporated into the story to ensure the best quality.

    Building national brands and quality management databases and traceability systems would be the focus of the Ministry of Agriculture to increase the export value, Deputy Minister Tran Thanh Nam said, adding that growth should not be based on output any longer.

    He said that the agriculture ministry must work with the Ministry of Industry and Trade to propose to the Government a program to build national brands for agricultural products.

    The branding should also be integrated with a digitalization process in traceability, field diary, fruit chain management, and registration and protection of fruit brands in foreign markets.

    Vietnam’s export of fruit and vegetables reached nearly $3.34 billion in 2022, 80% of which were fruit exports.

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  • Japanese firm looks to raise export-quality oysters in Vietnam

    Japanese firm looks to raise export-quality oysters in Vietnam

    Japanese seafood producer Yamanaka wants to partner with Vietnam agencies to raise oysters locally for both domestic and international markets.

    A feasibility research conducted by Yamanaka in the central province of Khanh Hoa since June last year, with the support of the Japan International Cooperation Agency (JICA), found that raising oysters in Vietnam under two Japanese methods brought high yields as well as oysters of a quality high enough to be eaten raw.

    “With this project we hope to establish a foundation for raising oysters with natural disaster resistance to improve productivity and farmer incomes,” said Shinji Takada, CEO of Yamanaka.

    Yakamana sells Japanese oysters in 350 sales points in Vietnam, but the company is now seeking to grow the shellfish locally and sell them in Vietnam, Taiwan and Thailand.

    Vietnam has nearly 3,000 hectares for oyster farming. The shellfish is being raised in 20 out of 28 seaside localities, with Khanh Hoa and Quang Ninh leading in numbers, according to the International Collaborating Centre for Agriculture and Fisheries Sustainability (ICAFIS).

    A farmer in Khanh Hoa needs around VND45 million ($1,904.44) to invest in an oyster raft which would fetch him VND30-50 million worth of oysters in a season. Each household typically has three to five rafts. There are three seasons each year in Vietnam, ICAFIS said.

    However, the added value of oysters in Vietnam remains low and therefore only a small amount of them are exported. In Khanh Hoa 95% of oysters are used as lobster food, while 4% goes to domestic consumption and 1% are exported.

    Ho Chi Minh City oyster farms produce over 21,000 tonnes of oysters a year but mostly for domestic consumption. Only two companies, BIM Group and VINABS, export oysters regularly.

    “A challenge in the oyster farming industry is setting up a clean source of water,” said Dinh Xuan Lap, deputy director of ICAFIS. “In Vietnam there is lack of technology to ensure the quality of oysters and to help them cope with natural disasters.”

    The hanging method and Australian basket method have both proved to be suitable for producing export-standard oysters in Vietnam, Japanese researchers have found.

    “We plan to set up an oyster cleaning system for commercial use, hopefully this or next year,” said Takada.

    One important step is identifying which oyster breed to farm, as the popular breeds in Vietnam cannot be raised with the hanging method, said Nguyen Thanh Luan, a seafood farming expert.

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  • iPhone 14 prices in Vietnam cheapest in the world only after US

    iPhone 14 prices in Vietnam cheapest in the world only after US

    Low demand has driven iPhone 14 prices in Vietnam to the second lowest levels in the world after only the U.S. According to German data portal Statista, the price starts at US$799 in the U.S. while authorized Apple resellers in Vietnam sell it at VND19.7 million ($834.7).

    “The iPhone 14 is not popular, and so stores are selling them at close to import prices to recover capital,” said Thanh Son, the owner of a mobile phone showroom in HCMC’s District 1.

    But in other Asian markets, the prices are higher. They start at VND22.3 million in Singapore, VND20.7 million in Hong Kong, and VND23 million in Thailand.

    In Vietnam, the prices of two high-end models, 14 Pro, and 14 Pro Max, are only VND1 million lower than in the U.S.

    The iPhone 14 Pro Max costs VND28 million, down VND3.5 million within just one month. “This is an unexpected development because in previous years, it was not until June or July that iPhone prices fell steeply,” Nguyen Lac Huy, a manager at retail chain CellPhoneS, said.

    Unlike at the end of last year, the supply of iPhone 14s is now abundant, so people can choose colors and capacities.

    Nguyen Minh Khue, a manager at another retail chain, Viettel Store, said the prices of the entire iPhone 14 range were recently cut by up to VND2 million due to the falling demand and increasing supply.

    Some other Apple products are also among the cheapest in the world in Vietnam. An iPad 9 starts at VND7.5 million and a MacBook Air M1 at VND19.9 million, while in the second cheapest market, Hong Kong, the latter still sells at VND23.4 million.

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  • Foreign startups eye Vietnam’s young population

    Foreign startups eye Vietnam’s young population

    Foreign startups are eyeing Vietnam as one of their main markets thanks to the country’s large and young population, low costs and cheap and abundant labor force abundant.

    Vietnam has been among the top markets in terms of revenue for Singapore’s insurance startup Igloo ever since the company was launched in 2021.

    “Vietnam is becoming one of our key markets,” Nguyen Huu Tu Tri, CEO of Igloo Vietnam. “The country’s insurance industry is set to reach $3.5 billion in 2026, but only 2-3% of that goes to tech insurance,” he said, adding that this means there is a large room for tech insurance growth.

    In its two years of operation, Igloo has sold 13 million insurance policies in Vietnam,10 million in last year alone. The target customers are people with low incomes who are not yet insured.

    The company also chose Vietnam as a site to launch its first insurance policy aimed at protecting rice farmers using weather data and blockchain.

    Igloo hopes to become the top insurtech company in Vietnam.

    For India’s car rental startup Zoomcar, the market in Vietnam is promising as the country has a population of nearly 100 million people and a growing demand for cars.

    Zoomcar connects unused car owners with renters and has recorded over 100,000 registered users, including 3,000 car owners.

    “We are approaching the breakeven point on each trip and expect to grow 200%-300% this year,” said Kiet Pham, national manager of Zoomcar Vietnam.

    Vietnam’s advantage lies in its young and tech-savvy population and its rising middle-class, the two startup leaders said.

    Tri said that after the Covid-19 pandemic people are starting to be more interested in insurance products, with a surge in the number of those who are ready to make purchases.

    Zoomcar sees a large demand for car usage in Vietnam. However, the company says that the cost of owning a vehicle is high, which means there will be a large demand for rental services.

    Vietnam’s car rental market is set to reach $884 million by 2027 with a compound annual growth rate of nearly 14%, according to market researcher Mordor Intelligence.

    “Vietnam is the fastest growing market for Zoomcar in Southeast Asia,” Kiet Pham said.

    The number of start-ups from Singapore venturing overseas through Enterprise Singapore’s Global Innovation Alliance (GIA) acceleration programs has ballooned to more than 400 in less than five years. And one of the more popular destinations is Vietnam, with its large workforce, lower labor costs and sizable market.

    From 2020 to 2022, nearly $2 billion has been poured into startups, according to the Ministry of Planning and Investment.

    The Vietnam Silicon Valley Capital Investment Fund, a partner of Lotte Ventures and Korean government agency KISED, last year introduced 14 excellent Korean startups, which plan to bring new products to Vietnam.

    Hong Sun, vice president of the Korean Chamber of Commerce and Industry, said that Korean startups tend to invest in Vietnam after they see many successful companies in the market. He also forecast that many new startups will come to Vietnam in the near future.

    Last year, a report by the World Intellectual Property Organization (WIPO) said that Vietnam ranked 48th out of 132 countries and territories in achieving the greatest progress in the past decade.

    Although Vietnam has fallen four places compared to 2021, it is still in the third position in Southeast Asia, after Singapore and Thailand. Vietnam is also ranked 54th in the global innovative startup ecosystem, up five places compared to 2021

    But startup insiders have found many challenges, especially in changing user attitudes.

    The technology insurance industry, people’s confidence in insurance in general is low and therefore people are not willing to pay for it.

    Furthermore, the lack of high-quality human resources in the technology sector will make it a struggle for Vietnam to meet the development needs of foreign startups.

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  • Gasoline prices up, oil down

    Gasoline prices up, oil down

    Gasoline prices unexpectedly rose Monday by VND540-620 (US$2.3-2.6 cents) per liter, while oil products dropped by VND300-980 per liter.

    This is the fifth time retail fuel prices have been adjusted in only six weeks this year.

    The price of the Vietnam’s number one selling gasoline RON 95-III went up by VND620 to VND23,760 per liter, and the cost of E5 RON 92 increased by VND540 to VND22,860.

    Meanwhile, the diesel price fell by VND960 to VND21,560, kerosene dropped by VND980 to VND21,590 dong per liter, and mazut oil decreased VND300 to VND13,630.

    The price hikes announced by the Ministry of Industry and Trade and the Ministry of Finance surprised businesses because it went against the previous forecast.

    However, the two ministries said their fuel price management plan would help curb inflation and stabilize the market.

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  • Samsung wants to make its Vietnam R&D center global hub

    Samsung wants to make its Vietnam R&D center global hub

    It is his mission to turn the Samsung R&D Centerin Hanoi into the Korean company’s top global research and development center, its Vietnam chief, Choi Joo Ho, has said.

    “The first mission is to expand its research activities and enhance expertise,” the head of Samsung Vietnam Complex said at a conference on Sunday.

    The conglomerate opened the US$220-million research center in Hanoi last December.

    It would take Vietnam from being a global production hub for Samsung to a strategic base for major research and development, the company had said at the opening ceremony.

    Choi said the second mission is to help develop technology talent and industry in Vietnam.

    For this, Samsung plans to step up training through scholarships and internships for promising tech students and cooperation with universities, he said.

    “We wish to strengthen our partnership with Vietnamese businesses to help them develop and become part of Samsung’s global value chain.”

    By the end of last year the number of Vietnamese tier 1 and tier 2 suppliers in Samsung’s global supply chain had increased to 257, 10 times the number in 2014.

    Since 2015 experts from Samsung Korea have worked with some 400 Vietnamese companies to improve their product quality.

    Samsung established its first smartphone factory in Vietnam in 2008 and has invested $18.2 billion so far. The figure could rise to $20 billion by the end of this year.

    The company makes around half of all its smartphones in the country.

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  • Airlines report losses in 2022

    Airlines report losses in 2022

    Vietnam Airlines and Vietjet incurred losses of VND10 trillion (US$423.7 million) and VND2.17 trillion last year mainly due to higher fuel prices and forex volatility.

    Vietnam Airlines reported consolidated revenues of VND71 trillion, higher than the combined revenues of 2020 and 2021 but only 70% of pre-pandemic levels.

    Last year, its losses of VND10 trillion took its accumulated losses to VND34 trillion.

    Vietjet reported revenues of VND39.34 trillion, more than triple the 2021 figure.

    The average price of jet fuel jumped to $130 per barrel last year from $72 the previous year. At one time in mid-2022 it was selling at over $160.

    The increase in bank interest rates and the soaring dollar also contributed to losses.

    Vietnam Airlines lost over VND2.25 trillion due to exchange rate differences last year as against only VND173 billion the previous year.

    Vietjet incurred exchange rate losses of roughly VND570 billion in the fourth quarter of last year compared with less than VND4 billion in the same period of 2021.

    Two other carriers, Bamboo Airways and Vietravel Airlines, have not released their financial reports for 2022, but experts said they are unlikely to have made profits.

    Vietnamese carriers transported 11 million foreign passengers in 2022, up 22 times from 2021 but down 70% from 2019, the year before the Covid pandemic began.

    They also carried 55 million domestic passengers, up 3.7 times from 2021.

    Many aviation-related service providers reported big profits, however.

    Southern Airports Services JSC (Sasco) reported pre-tax profits of VND230 billion, up 77 times from 2021.

    The profits of Saigon Ground Services (SGN) and Saigon Cargo Service Corporation (SCS) reached VND1 trillion and VND696 billion, respectively.

    The Airports Corporation of Vietnam posted pre-tax profits of over VND8.8 trillion as against less than VND1 trillion the previous year.

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  • Auto dealers offer up to $4,000 in discounts to boost sales

    Auto dealers offer up to $4,000 in discounts to boost sales

    Auto dealers are offering discounts of up to VND100 million ($4,243) to boost sales after the Lunar New Year shopping season is over.

    As many Vietnamese bought their new cars before the annual Tet holidays, which fell from January 20-26, dealerships are seeing a decline in customers showing up or making inquiries online.

    Toyota

    Toyota dealerships are offering a VND20-VND30 million discount on the Vios, its best-selling model in Vietnam last year.

    The MPV Veloz Cross is on sale with a discount of VND35-VND45 million plus gifts.

    The SUV Fortuner, which accounted for 8% of Toyota sales in Vietnam last year, is being sold at some dealerships at a discount of over VND100 million.

    Honda

    Since earlier February Honda has been offering free registration for its two main models: the City and the SUV CR-V.

    Honda City is discounted by VND50-60 million, while the cost of bringing the CR-V home is now VND100 million lower than before Tet.

    Mitsubishi

    The Japanese automaker is offering a 50% discount on registration fees for its Attar, Triton and Outlander models.

    Rearview cameras are also being given as gifts.

    Buyers of the MPV Xpander, Mitsubishi’s best-selling model in Vietnam, will also receive VND10-VND20 million in fuel coupons.

    Hyundai

    The South Korean manufacturer is selling its i10 at a discount of VND15-VND35 million and the sedan Accent for VND20-VND55 million less.

    Discounts of VND25-VND60 million are being offered on the Elantra sedan and the crossover Creta.

    The company is also offering a VND70 million discount on the MPV Stargazer and up to VND120 million on the SUV Santa Fe.

    Kia

    The biggest discount in Kia’s lineup falls on the SUV Sorento at VND70 million.

    The crossover Sportage, which is assembled in Vietnam, is being discounted by VND50 million, and three SUV models, the Sonet, Seltos and Carens, are now priced at a VND40 million discount.

    The cheapest Kia car Morning has a discount of VND30 million.

    Suzuki

    A 50% reduction in the registration fee, which equates to around VND30 million, is being offered on the SUV XL7 and the MPV Ertiga.

    Nissan

    Nissan is giving a full discount on the registration fee on the Navara VL 4WD and the Pro 4X manufactured in 2022. The standard version is discounted by 50% on the fee.

    The sedan Almera also has a free registration fee.

    Volkswagen

    The German automaker is giving customers a cashback of VND35 million on its Polo Hatchback and VND100 million on the SUV Tiguan manufactured in 2022.

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  • Vietravel Airlines plans 6-fold increase in charter capital by 2025

    Vietravel Airlines plans 6-fold increase in charter capital by 2025

    Rookie carrier Vietravel Airlines wants to gradually increase its charter capital nearly sixfold to VND7.64 trillion ($323.66 million) by 2025.

    The airline recently made this proposal to the government after two years of operating with a charter capital of VND1.3 trillion. It owns three narrow-body Airbus A321 jets.

    Viettravel made this proposal to boost development and enlarge its fleet, Chairman Nguyen Quoc Ky said.

    “Investing in fleet expansion is important for a new airline to survive and grow,” said Ky. “Only with a large fleet can we make profits.”

    For the last two years Vietravel Airlines has not been profitable but it expects that with a larger fleet it can take advantage of an expected surge in demand after Covid-19.

    The capital increase will come from a combination of shareholder investment, selling stakes to other investors, and financial tools.

    Shareholders of Vietravel Airlines plan to invest an additional VND700 billion by 2025, bringing their total investment to VND2 trillion.

    The airline also plans to increase its charter capital to VND8.25 trillion by 2030.

    Viettravel projects that by 2030, if business is favorable, it could record a VND2.2 trillion in accumulated profit which it could use it to pump up its capital.

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  • Vietnam rice exports plummet on lower global demand

    Vietnam rice exports plummet on lower global demand

    Rice exports fell 17.4% year-on-year in January to US$203 million as global demand shrank.

    In volume terms, they declined by 20.9% to 400,000 tons, according to the Ministry of Agriculture and Rural Development.

    Global demand was lower since inventories remained high in many countries, it said.

    The U.S. Department of Agriculture said in its January report that the global rice trade is set to fall by 4% this year to 54.4 million tons, the first drop since 2019.

    The Thai Rice Exporters Association has lowered the export target for this year from 8 million tons to 7.5 million tons, fearing global crises would affect trade.

    Vietnam expects exports to recover by the end of March as the Thai baht continues to gain against the U.S. dollar, making that country’s rice less competitive.

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  • Vietnam raises electricity price range

    Vietnam raises electricity price range

    Vietnam has raised its electricity price range by double-digits for the first time since 2017, paving the way for a hike in retail prices.

    The minimum electricity price was increased 13.7% to VND1,826.22 (7.8 U.S. cents) per kilowatt-hour beginning February 3, according to a decision signed by Deputy Prime Minister Le Minh Khai.

    The maximum price was raised 28.2% to VND2,444.09 per kilowatt-hour.

    An increase in the electricity price range does not necessarily equate to a retail price hikevi. However, the new range, along with an updated cost of electricity production in 2022, will be key inputs for the Ministry of Industry and Trade to determine Vietnam’s retail prices for this year.

    Vietnam’s electricity retail price had remained unchanged since 2019 at VND1,864.44 per kilowatt-hour.

    Vietnam Electricity posted a loss of VND31 trillion last year, which it blamed on rising input and production costs. It recently proposed an increase in retail prices.

    The industry ministry has said that it was reviewing the proposal and will announce a “reasonable plan” to raise prices.

    Prime Minister Pham Minh Chinh said last week that the electricity price hike should be kept reasonable and in line with real Vietnamese incomes.

    Vietnam’s electricity price is 50% lower than that of the Philippines, where electricity is more expensive than anywhere else in Southeast Asia. Vietnamese prices are also lower than those in Indonesia and Thailand, according to energy data platform GlobalPetroPrices.

    On the other hand, electricity costs more in Vietnam than it does in Laos, Russia, Bangladesh, India and Turkey.