Malaysia News Gazette

The Tra Vinh Farm Co., Ltd (Sokfarm) in the Mekong Delta province of Tra Vinh has successfully exported its first shipment of organic coconut flower nectar products to Australia – the fifth main importer of the locality’s product.

As scheduled, the firm will continue to export its second shipment to this market after two weeks.

Pham Dinh Ngai, CEO of Sokfarm, said blossom products from coconut flower nectar of the company have been officially exported to Japan, the Netherlands, Germany, the US, and Australia.

The company currently owns a 20-hectare coconut plantation certified with international organic certifications such as USDA (US), EU (Europe), JAS (Japan), and Canada Organic (Canada).

Currently, Sokfarm is investing in constructing new production facilities with a daily production capacity of 10-12 tonnes of coconut flower nectar.

The firm plans to expand its raw material plantation area to 50 ha and purchase the nectar from 80 local coconut-growing households, generating jobs for 100 labourers.

By 2029, the company aims to develop a 300-hectare raw material area, establish production linkages with and consume products of 500 households, and create jobs for 400 local workers.

Le Van Dong, Deputy Director of the provincial Department of Agriculture and Rural Development, said Sokfarm’s organic condensed coconut nectar has been recognised as a specialty of Tra Vinh. The product has been sold in more than 30 provinces and cities nationwide, and exported to many demanding markets. Currently, the company is marketing six main products to.

Tra Vinh, the country’s second largest coconut producer after neighbouring Ben Tre province, has nearly 27,400 ha of coconut, mostly in Cang Long, Tieu Can, and Cau Ke districts. It plans to widen its coconut growing area to 30,000ha by 2030.

The locality is home to more than 50 companies, co-operatives, and households which make products such as dried coconut flesh, coconut milk, coconut oil, and others for both domestic consumption and exports./.

Source: Vietnam N
ews Agency

The People’s Committee of the southern province of Long An on April 16 held a dialogue with enterprises from the Republic of Korea (RoK) to help them deal with difficulties and obstacles when doing business in the locality.

At the event, Korean businesses raised difficulties facing them such as fire prevention and fighting procedures, construction permits, infrastructure construction support to indirectly attract investment in hotels and resorts, and the establishment of Korean language faculties at universities and educational establishments in the province.

Ho Joong, Chairman of the Korean Chamber of Commerce (KOCHAM)’s chapter in Long An, proposed local authorities consider establishing a specialised post-licensing support unit dedicated to FDI enterprises, and learn from the similar function of the RoK’s ‘After Service’ system.

Kang Chunseok, CEO of the Korea Speed Vina company, suggested Long An review value added tax refund procedures by cutting unnecessary ones, or simplifying them on a reasonable
manner.

Speaking at the event, Secretary of the provincial Party Committee and Chairman of the provincial People’s Council Nguyen Van Duoc spoke highly of the role of Korean investors for economic development.

Chairman of the provincial People’s Committee Nguyen Van Ut assigned tasks to each department and unit to help RoK firms solve obstacles.

The RoK is one of Long An’s largest partners, ranking third among the 40 nations and territories pouring capital into the province with 208 projects worth 975 million USD. In the first quarter of this year, the province attracted six Korean-invested projects with a total capital of 26.4 million USD, accounting for 16% of its total FDI./.

Source: Vietnam News Agency

The US dollar has continued to strengthen against the Vietnamese dong (VND) as the exchange rate hit the ceiling limit across commercial banks on April 16 morning.

At noon, Vietcombank posted rates ranging from 24,978 VND to 25,348 VND for buying and selling, marking an increase of 168 VND from April 15. Similarly, BIDV’s rates were recorded at 25,036 VND and 25,346 VND, while Vietinbank’s rates stood at 25,020 VND and 25,348 VND.

The State Bank of Vietnam (SBV)’s official rate was posted at 24,141 VND, an increase of 45 VND from the previous day. Under the /-5% margin, banks are implementing a ceiling exchange rate of 25,348 VND per US dollar and a floor exchange rate of 22,933 VND per US dollar.

On April 15, the exchange rate experienced significant fluctuations following a week of pronounced dollar gains. The US Dollar Index (DXY), gauging the greenback’s strength against a basket of six major currencies, surged by 2.6% last week and presently maintains a sideways movement around the 106-point threshol
d.

Since April 12, the US dollar has been strengthening against the Vietnamese dong for four consecutive days from an exchange rate of 24,096 VND per US dollar.

Since the beginning of the year, the greenback has gained 3.6% against the Vietnamese dong, pushing the exchange rate to the ceiling limit set by the central bank./.

Source: Vietnam News Agency

Deputy Prime Minister Le Minh Khai received Tony Blair, former UK Prime Minister and Executive Chairman of the Tony Blair Institute for Global Change (TBI), in Hanoi on April 16.

Welcoming the guest back to Vietnam, Khai appreciated the fact that Blair and his colleagues have given high priority to promoting cooperation between the TBI and Vietnamese ministries and agencies recently.

He said with focused cooperation and regular exchanges, the cooperation between the two sides will be expanded effectively in line with the interests of Vietnam and the TBI.

The Deputy PM said Vietnam wants to build an independent and self-reliant economy and expand international cooperation for sustainable development. Therefore, the country wants to learn from the world’s experiences and good practices, including in the development of financial centres, to mobilise resources to overcome the middle-income trap and become a developed country by 2045.

He hoped the TBI will continue to share experiences and research, and offer
advice to Vietnam over the issues.

Khai also asked the TBI and Blair himself to continue to support Vietnam in implementing its commitments at the 26th United Nations Climate Change Conference (COP26), including attracting financial resources to achieve this goal as well as promoting digital transformation and the development of artificial intelligence (AI) and chip technology.

For his part, Blair expressed his delight to return to Vietnam, adding that he is impressed by Vietnam’s growth and strong innovations.

He shared some more information and suggested some ideas to help Vietnam attract investment and financial resources and develop the semiconductor industry and AI applications.

He affirmed his readiness to accompany Vietnam in the three fields of finance, energy, and technology./.

Source: Vietnam News Agency

Vietnam is an attractive choice for businesses who are looking for outsource solutions, given its affordable workforce, highly skilled human resources and the constantly developing infrastructure of information technology and the telecommunications industry, said real estate consultancy firm Knight Frank in its report Asia-Pacific Horizon: Harnessing the Potential of Offshoring.

The report studies the essential factors that define the region’s appeal as the best location for offshore services and sheds light on the significant changes in the industry.

Amid a challenging business environment that saw a reduction in sentiment among corporate real estate leaders, the Asia-Pacific offshoring market is forecast to more than double to 185.1 billion USD by 2032.

In the global context, the market is forecast to grow to 544.8 billion USD in 2032, reflecting an 8.5% compound annual growth rate (CAGR). Although North America will continue to retain its dominant market share, Asia-Pacific is expected to record the hi
ghest CAGR globally at 10.2%.

According to the Knight Frank’s report, global companies increasingly seek cost-effective solutions to minimise expenses. A growing number are now looking towards offshoring functions as a strategic avenue. Within the Asian-Pacific region, four markets – India, the Philippines, Malaysia and Vietnam- offer the best offshoring locations around the world.

For Vietnam, the offshoring market revenue is expected to reach 840 million USD with a 2024-2028, CARG of 8.78%, the report said, citing statistics of Statista. The country is ranked the 7th best global outsourcing location. The presence of major technology firms positions the country as a global digital hub.

Vietnam is a popular choice in Business Process Outsourcing (BPO), especially in the information technology industry, with skilled human resources just after India. Vietnam also offers the highest value for business costs, specifically in terms of labour, together with a bright outlook for tenants when office rent, which ca
n account for 10% to 15% of operating costs, is decreasing. It is expected that office rents in major cities in India will be higher than rents in Ho Chi Minh City in the next three years. With abundant supply from new and upcoming office building projects in Thu Thiem new urban area in Thu Duc City, rents are expected to decrease by more than 20% by 2026.

Analysing the trends and main factors developing the outsourcing market, Knight Frank experts said that Vietnam’s affordable labour force is the main factor to attract outsourcing activities. A notable trend in the offshore market in Vietnam is the shift toward high-value services such as software programming or research and development.

On the other hand, Vietnam has human resources with high skills and foreign language proficiency. Consulting firm A.T. Kearney ranks Vietnam seventh in the Global Service Location Index (GSLI) for top outsourcing destinations.

According to Knight Frank, another notable point is that Vietnam’s information technology and t
elecommunications industry infrastructure is constantly developing. The Vietnamese government has been increasing investment to improve internet speed, build data centres and technology infrastructure, and ensure a high-speed, reliable communication network to serve offshore activities./.

Source: Vietnam News Agency

Hanoi: A series of activities within the framework of the programme to support businesses in digital transformation for 2021-2025 have been implemented by the Enterprise Development Department (EDD) under the Ministry of Planning and Investment (MPI) in collaboration with ministries, sectors, and localities, concentrating on raising awareness of digital transformation among businesses nationwide.

According to EDD Deputy Director Nguyen Duc Trung, this effort helped raise businesses’ awareness of the necessity of digital transformation.

Many enterprises have embarked on digitising data, standardising process, and accelerating the application of digital technology, and moving towards more extensive and synchronised digital transformation, Trung said.

According to the annual Report on Digital Transformation 2023 recently launched by the MPI and the German Agency for International Cooperation (GIZ), there is a significant improvement in the scores evaluating businesses’ readiness for digital transformation, wh
ich rose by 0.7-1.4 points compared to the previous year to 2.5 points.

Firms have understood the significance of digital transformation, with many proactively integrating digital transformation target into their development strategy as well as mobilising necessary resources for digital transformation projects, the report revealed.

According to Le Thi Quyen, head of the EDD’s electronic information office, the twin green and digital transition trend is becoming increasingly important in the world, focusing on three main pillars of increasing sustainable productivity and economic efficiency, strengthening resilience and adaptation to climate change, and minimising or eliminating greenhouse gas emissions.

In Vietnam, digital technology and digital transformation are expected to be a motivation to bolster green economic transition and realise strategic targets on green growth.

Despite having adequate awareness and knowledge about digital transformation, Vietnamese businesses often find it difficult to indepe
ndently carry out this comprehensive change process.

Therefore, it is necessary to have policies, support programmes, and consultation for businesses on digital transformation roadmap, as well as assistance in applying appropriate digital transformation solutions, thus helping them make breakthroughs in the coming time, said insiders./.

Source: Vietnam News Agency

Hanoi: China, the US and Japan were the three largest importers of Vietnam’s fishery products in the first quarter of this year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

Exports to the US saw the highest increase in the period, by 16%, to 330 million USD, with shrimp shipments rising by 15%, and that of tuna, tra fish and crab surging by between 13% and 53%.

Meanwhile, exports to China and Hong Kong (China) increased by 15%. China was the biggest importer of Vietnamese tra fish, white-legged shrimp, lobster, anchovy and crabs.

According to VASEP, as China is tightening control of lobster import from Ecuador, Vietnam sees an opportunity to increase its exports. In the first quarter of this year, Vietnam’s lobster export to China was seven times higher than that of the same period last year. Moreover, its export of white-legged shrimp also increased 2.5 times.

Vietnam’s exports of fishery products to Japan also saw positive signals, VASEP’s communication director Le H
ang said.

The export of Vietnamese white-legged shrimp, crab and tra fish to Japan picked up by 20%, 23% and 25% respectively compared to the same period last year.

Exports of Vietnamese shrimp and tra fish to the EU and the Republic of Korea (RoK) have not seen clear signs of recovery. However, Vietnam’s tuna shipments to these markets grew positively – up 27% to the EU and up 15% to the RoK.

In general, tuna exports to major markets saw good growth in the first quarter with increases of 30% to the US and 9% to Japan.

Hang said that after international fishery product fairs held in the EU, the US and Japan, it’s expected that Vietnamese exporters can gain more orders and Vietnamese products can be sold at better prices.

VASEP forecasted that in 2024, Vietnam’s shrimp industry will continue to compete with Ecuador and India in terms of prices and supply. Oversupply will likely happen in the first half of this year. Meanwhile, tra fish inventory in the US, China, and the EU will shrink and export prices w
ill increase again in those markets.

As Vietnam’s fishery exports are expected to gradually recover in the second half of this year, the country’s exports in the whole year 2024 is estimated to reach 9.5-10 billion USD with shrimp bringing home 4 billion USD, tra fish 1.9 billion USD and other fishery products 3.6-3.8 billion USD, according to VASEP./.

Source: Vietnam News Agency