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| Chili exports to Taiwan (China) skyrocket in seven months. (Photo: congthuong.vn) |
China retained its top position as Vietnam’s largest chili export market in the reviewed period with 6,834 tonnes, accounting for 85.2% of the total export output and enduring a fall of 1.9% on-year.
Laos ranked second with 810 tonnes, up 44.6% on-year, followed by the United States with 134 tonnes, up 157.7% against the same period from last year.
Insiders pointed out that the impressive growth can largely be attributed to the fact that China has permitted the Vietnamese side to officially export chili to this market since March, 2022.
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| Photo for illustration. (Source: CPV) |
Currently, chili exports are facing a number of challenges as the EU has moved to tighten food and safety hygiene over Vietnamese agricultural products, including chili, dragon fruit, and okra.
Local enterprises are therefore required to improve management over product quality as they seek to export agricultural products to the EU market in a stable manner moving forward.
Statistics indicate that from January to July, the country exported 8,023 tonnes of chill, representing an increase of 3.5% on-year. Indeed, the Asian market continued to play a leading role with 7,727 tonnes, up 2.1% on-year; trailed by the American market with 143 tonnes, up 123.4%; the European market with 80 tonnes; and Africa with 73 tonnes.
Exports to the UK market enjoy robust growth
In the first half of this year, the total trade turnover between Vietnam and the UK reached more than US$3.9 billion, an increase of 21.7% over the same period from 2023, with Vietnam recording a trade surplus of more than US$3.2 billion, up 28.5% on-year, VOV News quoted preliminary statistics by the General Department of Customs.
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| Computers, electronic products and components are among Vietnam's key export items to the UK market. (Photo: VOV) |
Vietnamese export turnover to the UK market in June alone grossed US$573.3 million, up 10.7% over the previous month, bringing six-month exports to US$3.5 billion, up 24.6% over the same period from last year.
The leading export items during the six-month period was the group of phones of all kinds and components, raking in more than US$638.4 million, accounting for 17.8% of the export proportion. It was followed by the group of other machinery, equipment, tools and spare parts with US$606.9 million, up 44.7%, and footwear of all kinds with US$ 479.8 million, up 27.7% on-year.
Throughout the reviewed period, some item saw a significant increase in export turnover compared to the previous year including computers, electronic products and components, rubber, electric wires and cables, machinery, equipment and tools fruits and vegetables, garments and textiles, leather, footwear materials and all kinds of footwear.
According to the assessment of the Vietnam Trade Office in the UK and Northern Ireland, the UK market provides plenty of opportunities for Vietnamese exports, first of all, the preferential tariff basis under the UK-Vietnam Free Trade Agreement (UKVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Vietnamese enterprises will have the opportunity to increase exports of rubber, electric wires and cables, telephones and components of all kinds, coffee, cereals, confectionery, ceramics, fruit and vegetables, food, leather shoes, garments and textiles, seafood, wooden furniture, and rice to the highly lucrative market as recently, the UK has tended to increase its demand for importing these products.
Furthermore, the UK market is quite big with roughly 68 million people alongside diverse needs, and an Asian community of more than 5.5 million people, which is also a favorable condition for Vietnamese enterprises to increase exports to this market, including wooden furniture.
To be able to capitalize on the opportunities brought about by the UKVFTA, Vietnamese businesses need to ensure that their products and production processes meet UK standards.
Growth in int’l passengers helps promote airlines' growth
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| The remarkable growth in international tourist arrivals contributes to positive business results for domestic airlines in H1. (Photo: VNA) |
The remarkable growth in international tourist arrivals has contributed to positive business results for domestic airlines in the first six months of 2024, reported Vietnam News Agency.
Accordingly, the consolidated pre-tax profit of the national flag carrier Vietnam Airlines topped 5.67 trillion VND (nearly 226 million USD). Meanwhile, Vietjet earned 1.31 trillion VND in consolidated pre-tax profit, surging by 433% year-on-year, exceeding the annual plan by 21%.
These are positive results in the context of high fuel prices, unfavourable exchange rate fluctuations, low seasonal demand in the second quarter, and a shortage of aircraft due to global engine recalls by Pratt & Whitney.
Airlines have effectively leveraged the growth of the international passengers to promote recovery.
Vietnam Airlines reported consolidated revenue reached over 53.12 trillion VND in the reviewed period, up 20% year-on-year.
Meanwhile, Vietjet’s cumulative revenue and pre-tax profit from aviation transport totaled nearly 32.9 trillion VND and over 1.17 trillion VND, representing surges of 31% and 690% year-on-year, respectively. Its cumulative business revenue topped 34 trillion VND and pre-tax profit 1.31 trillion VND, up 15% and 433% year on year, respectively.
According to Saigon Ratings, an independent credit rating organisation, Vietjet has maintained a long-term credit rating of vnBBB- with a "stable outlook”. Given the airline’s remarkable recovery and proactive planning during the past two years, Vietjet is expected to make breakthrough developments faster and more sustainably in the medium to long term.
The airlines have also added new international routes in the period, ready to meet transportation demand and plans to further expand their international networks in the future, towards promoting the country’s socio-economic development.
By showcasing Vietnam to the world through aviation and tourism promotion activities, airlines have made positive contributions to improving the image and position of the country and its people on the international stage, said the Civil Aviation Authority of Vietnam (CAAV).
Vietnam's finished steel production projected at 30 million tonnes
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| At Hoa Phat steel manufacturing assembly in Dung Quat (Photo: VNA) |
Vietnam's finished steel production is projected to hit 30 million tonnes this year, marking a 7% annual increase, Vietnam News Agency quoted figures of the Ministry of Industry and Trade (MoIT).
However, this anticipated recovery is fraught with uncertainty, as the domestic market grapples with oversupply, surging imports, and global market instability.
The domestic steel market is currently inundated with various steel products, while imported steel continues to flood in, intensifying price competition for local producers. Soaring international shipping costs and global market volatility further exacerbate the challenges faced by steel industry enterprises.
Despite these headwinds, industry expert Nguyen Van Sua sees positive market signals, such as the typical year-end recovery driven by the construction season. Moreover, the MoIT's recent decision to investigate and potentially impose anti-dumping measures on certain imported steel products could foster fairer competition in the coming years.
To truly become a foundational industry and achieve sustained growth, the steel sector needs State support in trade defence measures, Sua stressed. He also urged companies to focus on improving product quality, enhancing competitiveness, and strengthening their ability to defend against dumping investigations from importing countries.
In the past seven months, finished steel production reached nearly 17 million tonnes, up 9.4% year on year. Coated and colour-coated steel led the growth with a 29.2% surge, followed by construction steel (14.6%) and hot-rolled coil (HRC) (2.9%). Finished steel consumption also climbed by 14.3%, reaching 16.75 million tonnes.
Steel exports totalled nearly 4.9 million tonnes, marking a 6.8% increase. Cold-rolled coils (CRC) saw the highest growth at 40.6%, followed by coated and colour-coated steel, and construction steel. However, exports of steel pipes and HRC declined by 1.2% and 0.8%, respectively.
The Vietnam Steel Association (VSA) noted that the continued growth in the industrial production sector and the recent enactment of new real estate and land laws could spur a positive recovery in the steel market during the latter part of the year./.