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| On March 13, 2024 they ranges from 91,000-92,000 VND per kilo (Photo: VNA) |
On March 13, they ranged from 91,000-92,000 VND per kilo, which doubled those in the same period last year, and rose 30% over late 2023.
According to insiders, strong growth in exports has been a major factor leading to the domestic price hikes.
The Ministry of Agriculture and Rural Development (MARD) said that Vietnam exported 438,000 tonnes of coffee in the first two months of this year for 1.38 billion USD, a rise of 27.9% in volume and 85% in value over the same period last year.
In the first five months of the 2023-2024 coffee crop, Vietnam has shipped abroad 764,802 tonnes of coffee with a revenue of 2.36 billion USD, up 1.5% in volume and 39.4% in value compared to the same period of last crop.
Largest markets of Vietnamese coffee include Germany, Italy, Japan, and Spain.
Le Duc Huy, General Director of Simexco Daklak, said that the world's demand for Vietnamese Robusta coffee is high, while the domestic supply is lower than in previous years.
The Vietnam Coffee Cocoa Association (Vicofa) estimated that the coffee output in the 2024-2024 crop drops about 10% compared to the previous crop due to shrunken farming area, while inventories from the previous crop is at the lowest in many years and equivalent to one-third of that in the previous crop. This has led to a supply shortage, it said.
The MARD said that ICE-monitored Robusta coffee inventories as of the end of February continued to decline to a record low of 19,600 tonnes (326,667 sacks of 60 kilos), the lowest since 2014.
The International Coffee Organisation predicted that the coffee production of Indonesia will fall 16.6% in the 2023-2024 crop due to prolonged rains.
Meanwhile, Brazil’s coffee output in the 2024-2025 crop (from July 2024 to June 2025) is forecast to rise 4.2%.
Despite the high prices, experts warned farmers to carefully choose the appropriate time to sell their coffee as it is tough to give any forecast in coffee price fluctuations, which means coffee prices may continue to set new records or slump.
Expanded land use rights expected to attract OV investment in real estate
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| Apartment buildings in Ho Chi Minh City. (Photo: VNA) |
The expansion of land use rights for overseas Vietnamese (OV) in the recently passed 2024 Land Law is good news for OVs who want to own real estate in Vietnam, reported Vietnam News Agency.
Experts from Savills Vietnam said that this is even more meaningful considering the strong remittance flow to Vietnam in 2023, which exceeded 16 billion USD, up 32% annually, they said.
The 2024 Land Law, taking effect on January 1, 2025, introduces significant changes for OV land users. They will be entitled to almost all the land use rights previously reserved for Vietnamese citizens. Additionally, foreign-invested economic entities and people of Vietnamese origin abroad will benefit from the expanded rights, including receiving transferred land use rights and re-renting land use rights at industrial and hi-tech parks.
This change will bring more investment opportunities for the OV homebuyer group, said Deputy Managing Director of Savills Vietnam Troy Griffiths.
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| Illustrative image (Photo: baodautu.vn) |
According to the Savills Vietnam experts, in the past, OVs wanting to invest in property in Vietnam had to do so via family members or relatives, resulting in disputes. The new Land Law has solved this problem, facilitating investment and minimising risks for OV investors.
Statistics provided by the State Committee for Overseas Vietnamese Affairs revealed a substantial flow of remittances into Vietnam. From 1993, the first year remittance data was collected, to the end of 2022, the total amount of remittances surpassed 190 billion USD, almost equal to the FDI sum disbursed in the same period.
A significant portion of remittances, primarily from Asian countries through workers, has already been directed towards real estate sector, according to Griffiths.
FPT opens new branch in Chinese city of Dalian
Leading Vietnamese IT service provider FPT Software announced on March 13 the inauguration of its latest office in Dalian, China, as part of efforts to better serve the billion-people market, reported VOV News.
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| At the opening ceremony of FPT's new office (Photo: cafef.vn) |
Taking the advantages of its highly-skilled workforce which has diverse language proficiencies, the new office aims to provide high-quality information technology (IT) services to customers in Japan and China, with a specific target of extending its global customer base.
The opening of new branch will allow FPT to gain greater access to a high-quality talent pool of over 200,000 Japanese-proficient IT engineers locally, thereby serving its initial focus of supporting Japanese customers.
It can also help FPT to expand new business development opportunities, not only with Chinese businesses but also with thousands of Japanese businesses operating in Dalian.
Addressing the office opening ceremony, Chu Thi Thanh Ha, chairwoman of FPT Software, a subsidiary of FPT, stressed that as a leading IT firm in Vietnam, FPT aims to serve as a bridge for economic corporations among China, Japan, and Vietnam.
She expressed her belief that FPT Dalian can actively help to strengthen these relationships whilst promoting cross-border cooperation among companies there.
FPT Dalian will become FPT’s third office in China, following Shanghai and Nanning offices launched in 2017 and 2023 respectively.
Vietnam maintains spot as world's sixth largest fibre exporter
Vietnam has continued to retain its position as the sixth largest fibre exporter in the world, just behind China and Bangladesh, and above the Republic of Korea, since 2022, reported VOV News.
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| Photo for illustration. (Source: VOV) |
The General Department of Customs reported that in February alone Vietnam exported 282,059 tonnes of fibre and earned US$666.75 million, up 26.7% in volume and up 18.1% in value compared to the same period last year.
China made up Vietnam’s largest market as fiber exports reached 129,112 tonnes worth more than US$329 million, rising by 60% in volume and 35% on year on year.
The Republic of Korea (RoK) was the second largest consumer of Vietnamese fibre, spending US$74.1 million on 25,637 tonnes, showing increases of 4% in value and 19.5% in volume.
The United States ranked third, importing 24,598 tonnes valued at US$30.4 million, up 155% in volume and 508% in value.
Aside from these three major markets, Vietnam exported fibre to other large markets such as Indonesia, Bangladesh, Brazil, and Cambodia.
Since 2022 Vietnam has surpassed the Republic of Korea to become the world's sixth largest fiber exporter.
Last year saw Vietnamese fibre exports hit 1.7 million tonnes, valued at more than US$4.3 billion, up 13.4% in volume but down 7.6% in value against 2022./.