Vietnam invests over 115 million USD in outbound markets in first 2 months

Monday, 06/03/2023 17:04
Vietnam’s outbound investments reached 115.1 million USD in the first two months of this year, 2.16 times higher than that the same period last year, Vietnam News Agency quoted figures of the General Statistics Office (GSO) under the Ministry of Planning and Investment.
 Vietnam’s outbound investments reach 115.1 million USD in the first two months of this year, 2.16 times higher than that the same period last year. (Photo: VNA)

Of the sum, 109.4 million USD was poured into 10 new projects, a 2.1-fold rise year-on-year. Meanwhile, four other projects increased their capital by nearly 5.7 million USD.

Notably, Vietnamese conglomerate Masan Group’s subsidiary The Sherpa received a licence to place 105 million USD in Singapore-based tech firm Trust IQ Pte. Ltd. The project is part of Masan's strategic goal by 2025 to create a consumer - retail - technology ecosystem.

Vietnamese firms invested in 10 sectors abroad, including information-communications, services, wholesale and retail, health care, processing and manufacturing.

 Illustrative image (Source: VNA)

Singapore was the biggest recipient of the investments, with a combined capital of 105.5 million USD poured into a new project and another existing one. It was followed by Israel and Laos.

As of February 20, Vietnam counted 1,617 valid overseas projects valued at more than 21.89 billion USD, with 141 by State-invested firms worth some 11.67 billion USD, making up 53.3% of the total.

Laos, Cambodia and Venezuela lured the most Vietnamese investments, mainly in mining, and agriculture, forestry and fishery.

Cao Phong orange hits the shelves in UK

The Cao Phong orange from the northern province of Hoa Binh is now officially put up for sale in the UK, marking the return of this specialty to the global market after over 40 years, reported Vietnam News Agency.

Cao Phong oranges are sold with green-skinned pomelo and Dien pomelo at Longdan supermarket chain. (Photo: VNA) 

The nearly 7 tonnes of Cao Phong orange, exported via the official channel by the Hoa Binh-based RYB Joint Stock Company, met strict quality, food safety, and origin standards, including passing the testing for nearly 900 chemical elements in plant protection products.

The fruit is sold at the Longdan supermarket chain in London and some other cities in the UK. It is also distributed to other local wholesalers and retailers of Asian products.

In February, Longdan, the biggest importer of Vietnamese goods in the UK, also purchased over 5 tonnes of the red-flesh pomelo farmed in Tan Lac district and 11 tonnes of the Dien pomelo farmed in Yen Thuy district of Hoa Binh province. This was also the first time the citrus of the two varieties cultivated in Hoa Binh had been officially exported to the UK.

According to Nguyen Canh Cuong, Trade Counsellor of Vietnam’s Trade Office in the UK, while most of fresh fruits from Vietnam such as lychee, mango, and dragon fruit face certain preservation difficulties, orange and pomelo can be kept for a longer time thanks to their characteristics, especially pomelo.

However, businesses should pay attention to prices to stay competitive and expand their market share in the UK, he said. Besides, as the Vietnamese orange and pomelo are new products here, the firms also need to have appropriate marketing strategies, especially digital marketing, to introduce them to local consumers.

Export prices of Vietnamese rice up nearly 10%

Illustrative image (Photo: VNA) 

The export prices of Vietnamese rice in the first two months of 2023 rose by 9.8% year-on-year to 528.5 USD/tonne, Vietnam News Agency quoted figures of the Ministry of Agriculture and Rural Development (MARD).

Vietnam exported 789,000 tonnes of the grain in the reviewed period, earning 417 million USD, down 18.8% in volume and 10.8% in value compared to the same period last year.

The Philippines is the largest importer of the food from Vietnam in January with over 129,000 tonnes worth 64.55 million USD, accounting for 34.6% of Vietnam’s total export.

Vietnam recorded the highest increase price for rice exported to Taiwan (China) in January, with a surge of 54.6% year-on-year.

It is forecast to have favourable conditions for rice exports in 2023 as many countries such as the US and China, and those in Europe, are being affected by climate change and drought, which cause a shortage of rice supply.

Moreover, India - one of the largest rice exporters in the world, imposes a ban on broken rice exports and a 20-percent tax rate on white rice varieties.

Vietnam aims to export between 6.5 – 7 million tonnes of rice in 2023.

Its export is predicted to increase again as the demand in traditional markets such as Indonesia and Bangladesh has risen, and China – one of the largest importers of Vietnamese farm produce, has opened the market after the COVID-19 pandemic.

Seafood exports to UK record double-digit growth

Vietnamese seafood exports to the UK have maintained a high growth rate of 22% during the first two months of the year despite an annual fall of between 18% and 50% in 10 other large markets globally, VOV News quoted figures of the Vietnam Association of Seafood Exporters and Producers (VASEP).

Photo for illustration. (Source: VOV) 

Most notably, Tra fish (pangasius) exports to the UK reached approximately US$7 million between the beginning of the year to mid-February, accounting for 4.5% of the total export value of the product exported to foreign markets.

The first half of February alone witnessed Vietnamese pangasius exports to the demanding market dramatically increase by 142% against the same period from last year.

This surge can largely be attributed to the UK’s high inflation rate that has changed British people’s consumption trends, a factor that has made British consumers switch to consuming frozen seafood products instead of fresh ones.

White fish is a popular product in the UK, with the import turnover of this species reaching between US$800 million and US$1 billion annually. Vietnamese pangasius exports also account for 5% of the UK's total imports of the white fish. This proportion is expected to grow this year as the UK economy has been significantly affected by high inflation and the Russia-Ukraine conflict.

Moreover, tax incentives under the UK-Vietnam Trade Agreement (UKVFTA) are anticipated to create further opportunities for pangasius processors to make further inroads into this market, especially as importers are keen to seek support sources at competitive prices for their domestic market, according to the VASEP.

Last year the UK also ranked among the top six importers of Vietnamese pangasius, making up 2.6% of the country’s total imports with a value of nearly US$64 million, up 24% compared to 2021./.