Illustrative image (Source: VNA)
Weakening shipments and southern industrial parks devastatingly stricken by COVID-19 in August and September have troubled industry players who were worried that the sector was not likely to achieve its 18-billion-USD export goal in 2021.
However, just two months after southern cities and provinces reopened its economy with flexible measures to sustain production and keep the virus at bay, the billions-dollar industry has seen unexpected breakthroughs, said Xuan, adding that exports will rise 5 percent compare to the previous year.
Vietnam’s accession to multiple free trade agreements (FTAs), particularly the Comprehensive and Progressive for Trans-Pacific Partnership (CPTPP), have channeled large FDI from major corporations from the Republic of Korea, China and others into Vietnam, constantly heightening the domestic production capacity.
Data from the World Footwear Yearbook shows that Vietnam exported 1.23 billion pairs of footwear in 2020, a 4.4-fold increase against 2011. It also marked the first time the country’s global market share had exceeded 10 percent.
Illustrative photo
Between 2016 – 2020, Vietnam’s footwear exports picked up 6.4 percent annually on average, with its revenue edging up from 10.3 percent in 2016 to 13.6 percent of the world's total in 2020.
Various world-famous brands, including Nike, Adidas, Reebok, and Puma, have selected Vietnam as a destination for outsourcing and setting production bases.
Deputy General Director of Golden Victory Co., Ltd., Le Thi Anh Dao said Vietnamese manufacturers has quite clear competitive edges over regional rivals in securing orders from brands. “Previously, many brands such as Nike have mainly placed outsourcing orders in China but now they are more likely to turn to Vietnam as global consumers are increasingly in favour of “Made-in-Vietnam” products,” Dao said.
According to Lefaso, Vietnam became the world’s biggest exporter of textile-capped shoes in 2020, accounting for 26.3 percent of total global shipments which has been on the rise this year.
Bamboo Airways launches Vietnam-Australia direct air route
Bamboo Airways on December 17 morning (Vietnam time) launched its direct air route linking Vietnam with Australia during an inaugural ceremony held in Melbourne international airport of Australia, reported Vietnam News Agency.
An aircraft of Bamboo Airways (Photo: VNA)
Commercial flights will be officially operated on the direct route starting early 2022, connecting two Vietnam’s major cities of Hanoi and Ho Chi Minh City with Australia’s busiest airports of Sydney and Melbourne.
Representative of both sides believed that the air route would facilitate travel of Vietnamese students and people working in Australia, as well as bolster the countries’ trade and tourism.
Earlier, the carrier joined hands with the BAA Training Vietnam aviation training institute to open a training course of Airbus A320 pilots.
The airline plans to arrange similar courses in the coming time.
THACO exports first batch of 870 semi-trailers to US
Truong Hai Auto Corporation (THACO) exported the first batch of 870 semi-trailers to the US on December 15, reported Vietnam News Agency.
The event marking THACO's export of semi-trailers to the US. (Photo: VNA)
They are among 15,500 semi-trailers worth 215 million USD to be shipped to the US in 2022 under an agreement signed between THACO Industries and PITTS Enterprises, one of the 15 largest semi-trailer manufacturers in North America.
Following this batch, another 1,400 vehicles will be shipped on January 3, 2022 and an additional 1,200 on February 7. About 1,200 semi-trailers will be exported each month on average after that. The US-based Liberty Global Logistics is in charge of the transportation.
At the launching ceremony held at PTSC Dung Quat Port in central Quang Ngai province, THACO Industries and PITTS Enterprises signed another agreement on the exclusive distribution of 25,000 semi-trailers worth over 350 million USD in the US market in 2023.
THACO said it has been boosting market research and seeking chances to export semi-trailers to the US, attracting attention from many US businesses, including PITTS Enterprises.
To increase the export to the US and other markets like Japan, Canada, and Australia, the firm will build a semi-trailer and heavy component factory able to manufacture 20,000 units per year.
It is also implementing a logistics development strategy in the Chu Lai Open Economic Zone of Quang Nam province, as well as the central region as a whole, in efforts to reduce logistics costs, THACO added.
Almost 23 billion USD of foreign ODA, concessional loans earmarked for 2021-2025
About 527.1 trillion VND (over 22.9 billion USD) in foreign official development assistance (ODA) and concessional loans will be allocated during the 2011 - 2025 period, reported Vietnam News Agency.
A view of Ho Chi Minh City. (Photo: VNA)
This is part of a plan on orientations for attracting, managing, and using ODA and concessional loans from foreign sponsors during the five years. The plan was recently approved by Permanent Deputy Prime Minister Pham Binh Minh.
Accordingly, non-refundable ODA capital is prioritised for implementing socio-economic infrastructure development programmes and projects; enhancing capacity; assisting policy and institutional building and reform; preventing, controlling and mitigating natural disaster risks, and adapting to climate change; ensuring social welfare; preparing for investment projects or co-funding projects that use foreign concessional loans.
ODA capital will be prioritised for programmes and projects on health care, education, vocational training, climate change adaptation, environmental protection, and building essential economic infrastructure facilities unable to directly recover capital.
Besides, the plan gives priority to spending foreign ODA capital and concessional loans on infrastructure improvement projects to help disadvantaged regions and localities develop their economy, and in regions and localities facing difficulties in mobilising domestic funding; as well as on projects dealing with pressing issues during the rapid urbanisation.
Foreign concessional loans will also prioritised for projects boosting connectivity among regions and provinces in the Northwestern, Central Highlands, and Mekong Delta regions so that they can develop faster, according to the plan./.