Business Archives - Vietnam Fact https://vietnamfact.com/category/business/ Sun, 20 Apr 2025 08:50:40 +0000 en-US hourly 1 https://wordpress.org/?v=6.9 https://vietnamfact.com/wp-content/uploads/2024/06/cropped-png-clipart-computer-icons-website-web-design-symmetry-thumbnail-32x32.png Business Archives - Vietnam Fact https://vietnamfact.com/category/business/ 32 32 Vietnam to develop trade defence early warning system https://vietnamfact.com/vietnam-to-develop-trade-defence-early-warning-system/ https://vietnamfact.com/vietnam-to-develop-trade-defence-early-warning-system/#respond Fri, 18 Apr 2025 08:48:58 +0000 https://vietnamfact.com/?p=2217 Part of a new Government decree, the early warning system aims to provide timely information to businesses and industry associations,

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Part of a new Government decree, the early warning system aims to provide timely information to businesses and industry associations, enabling them to take preventive measures and prepare appropriate responses.

The Ministry of Industry and Trade has been tasked with building and operating an early warning system for trade defence to detect potential lawsuits from foreign countries initiating trade remedy investigations against Vietnamese exports.

Part of a new Government decree, the early warning system aims to provide timely information to businesses and industry associations, enabling them to take preventive measures and prepare appropriate responses.

The system is one of the key provisions outlined in Decree 86/2025/NĐ-CP guiding the implementation of provisions under the Law on Foreign Trade Management regarding trade defence measures.

The Government has also explicitly directed the formulation of legal action plans, including the right to sue, claim compensation and impose measures when foreign countries apply trade safeguards against Vietnamese businesses.

Based on information collected or upon written requests from Vietnamese traders, associations or relevant business representative organisations, the MoIT will coordinate with other ministries and agencies to draft a lawsuit plan. It will be followed by Clause 1, Article 76 of the Law on Foreign Trade Management. MoIT will prepare the case dossier for submission to the Prime Minister.

Within 10 days of receiving the MoIT’s request, consulted ministries, agencies, organisations and individuals must provide their written opinions on the dossier.

The Prime Minister will review and decide whether to approve the lawsuit plan based on the submitted dossier.

The MoIT will take the lead in initiating lawsuits against importing countries or territories conducting trade remedy investigations against Vietnamese goods. Meanwhile, the Ministry of Finance ensures a budget for activities to support traders as prescribed in Article 76 of the Law on Foreign Trade Management. This process will follow the procedures and regulations of relevant international agreements to which Vietnam is a member.

Vietnamese traders, associations and relevant business representative organisations are responsible for cooperating during the process of initiating such lawsuits.

The decree provides detailed guidance on certain provisions of the Law on Foreign Trade Management, including methods for determining injury to domestic industries, measures against circumvention of trade remedies, as well as the basis, procedures, timelines and grounds for initiating and terminating trade remedy investigations.

It also outlines procedures for the application and review of trade remedies, criteria for identifying subsidies and applying countervailing measures, responsibilities of relevant agencies during investigations and the handling of trade remedy measures imposed on Vietnamese export goods.

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Green growth – an irreversible global trend: P4G discussions https://vietnamfact.com/green-growth-an-irreversible-global-trend-p4g-discussions/ https://vietnamfact.com/green-growth-an-irreversible-global-trend-p4g-discussions/#respond Thu, 17 Apr 2025 08:41:50 +0000 https://vietnamfact.com/?p=2214 Ministerial discussions were held on April 17 within the framework of the 4th Partnership for Green Growth and the Global

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Ministerial discussions were held on April 17 within the framework of the 4th Partnership for Green Growth and the Global Goals 2030 (P4G) Summit, bringing together domestic and international officials to address critical aspects of sustainable development and green transition.

Ministerial discussions were held on April 17 within the framework of the 4th Partnership for Green Growth and the Global Goals 2030 (P4G) Summit, bringing together domestic and international officials to address critical aspects of sustainable development and green transition.

A call to action

Vietnamese Minister of Agriculture and Environment Do Duc Duy, who chaired the session “Riding with the Green Revolution 4.0: The Journey of Transforming the Food System for a Sustainable Era”, emphasised that the revolution is not only an option but also an essential requirement and imperative for action amidst unprecedented challenges such as severe climate change, rapidly declining biodiversity, disrupted global food supply chains due to geopolitical instability, rising protectionism, threats to food security, and widening development gaps between nations.

According to Duy, the Green Revolution 4.0 carries the expectation of comprehensively transforming food systems through the application of digital technology, AI, big data, biotechnology, and innovative solutions. The revolution helps increase productivity and product quality while contributing to reducing resource consumption, cutting emissions and enhancing resilience to climate change, thereby creating the foundation for improving farmers’ livelihoods and enhancing consumer welfare.

Regarding Vietnam’s food security situation aligned with the green agricultural transformation process, the minister noted that from a country that once faced poverty and food crises, Vietnam has now emerged as one of the world’s leading agricultural product exporters, with products present in nearly 200 countries and territories. However, with limited resources, an estimated 10.3 million hectares of land available for farming, Vietnam’s agricultural sector is facing formidable challenges.

To address these challenges, the ministry is gradually implementing agricultural transformation towards green, smart, and sustainable practices, identifying innovation and substantive focus on research, application of modern technologies, and digital transformation as core elements to create breakthrough for the sector, he said.

An opportunity to shape a sustainable development future

Chairing the discussion on “Innovative Solutions for the Effective and Sustainable Energy Transition”, Vietnamese Deputy Minister of Industry and Trade Nguyen Hoang Long underscored the need for energy transition amidst challenges and impacts from climate change, environmental degradation, and depletion of natural resources.

To realise its net-zero commitment made at the 26th UN Climate Change Conference in Glasgow (COP26), Vietnam has carried out various solutions, Long said, laying stress on the three orientations in the country’s sustainable energy transition, namely innovation, public-private partnership models and international cooperation, and people-centred approach.

He affirmed that innovation promoting green and sustainable energy transition is not only a goal but also an opportunity for countries, including Vietnam, to shape up a sustainable development future. He also expressed his confidence that Vietnam and other P4G member countries, along with many partners worldwide, can create a world where clean energy is not just a goal but a universal right, bringing sustainability and happiness to future generations.

At the event, domestic and international delegates exchanged views on innovative solutions and application of new technologies to increase efficiency and sustainability in energy development and use.

Developing green financial market

At the discussion themed “Revitalising and Unleasing Finance Strategy for Global Green Growth”, Vietnamese Deputy Minister of Finance Do Thanh Trung held that Vietnam has jumped to the green transition bandwagon – an irreversible global trend, showing its determination in green growth orientation by engaging and implementing multiple international commitments on sustainable development and climate change.

One of the most outstanding results in Vietnam’s green growth orientation is in the field of green finance and green credit, he said, elaborating green credit debt has increased from 71 trillion VND (nearly 2.9 billion USD) in 2015 to 564 trillion VND in 2023, accounting for 4.4% of the economy’s total outstanding debt.

For global commitments to achieve positive and substantial results, he suggested that countries need to consult on policies and coordinate actions more closely to develop and implement financial mobilisation strategies for green growth in accordance with the structure of the global financial system. In this process, repositioning the mission and role of national financial institutions in the global structure should be identified as a priority breakthrough solution.

At the discussion, delegates focused on topics including experiences in developing green financial markets, solutions to overcome technical, legal, and market barriers, and financial policies to attract investment from both public and private sectors.

Secretary-General of the UN Trade and Development (UNCTAD) Rebeca Grynspan said that although green capital flows are directed towards different sectors and fields, some climate-affected areas have not accessed the capital or still face difficulties in financial funding. She said P4G represents a historic opportunity to encourage global banks to provide financial capital and increase investment for the private sector.

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FDI inflow into Vietnam rises 34.7% in Q1 https://vietnamfact.com/fdi-inflow-into-vietnam-rises-34-7-in-q1-2/ https://vietnamfact.com/fdi-inflow-into-vietnam-rises-34-7-in-q1-2/#respond Sun, 06 Apr 2025 08:29:48 +0000 https://vietnamfact.com/?p=2140 This growth is driven by several factors, including a sharp increase in additional investment to existing projects, capital contribution, and

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This growth is driven by several factors, including a sharp increase in additional investment to existing projects, capital contribution, and share purchases.

Total registered foreign direct investment (FDI) into Vietnam hit nearly 10.98 billion USD in the first quarter of 2025, up 34.7% compared to the same period last year, reported the Foreign Investment Agency (FIA) under the Ministry of Finance.

This growth is driven by several factors, including a sharp increase in additional investment to existing projects, capital contribution, and share purchases.

In the reviewed period, 401 existing projects registered for capital adjustment, with additional funding of nearly 5.16 billion USD, respectively surging 44.8% and almost 5.1 times from the same period last year.

Nearly 1.49 billion USD was spent by foreign investors to contribute capital to and purchase shares of Vietnamese firms, shooting up 83.7% from a year earlier.

In contrast, over 4.33 billion USD was poured into new projects in Q1, down 31.5% year-on-year, due to the absence of large-scaled projects.

However, the FIA said that the situation has improved, with newly registered FDI rising sharply in March, up 66.5% from January and nearly 2.4 times from February. The number of new projects also increased, by 42.7% and 18.4% from January and February, respectively.

According to the agency, the higher overall number of new projects, capital-added cases, capital contributions, and share purchases demonstrates that Vietnam remains a trusted destination for foreign investors to pour capital into both new projects and existing ones.

In January–March, about 4.96 billion USD in FDI was disbursed, up 7.2% against the same period last year.

Foreign investors invested in 18 out of 21 sectors of the national economy. Among these, the processing and manufacturing industry led with total investment exceeding 6.79 billion USD, accounting for approximately 61.9% of the total, up 26% year-on-year. It was followed by real estate, with more than 2.39 billion USD, or 21.8% of the total, up 44.1% year-on-year.

In the reviewed period, Vietnam attracted investments from 73 countries and territories, with Singapore topping the list, pouring over 3 billion USD, equivalent to 27.6% of the total. The Republic of Korea ranked second with nearly 2.04 billion USD, almost 2.7 times higher than the same period last year.

The northern province of Bac Ninh led the nation in terms of FDI attraction, with nearly 1.9 billion USD, or 17.3% of the total, up 2.1 times. It was followed by Ho Chi Minh City with 1.43 billion USD, making up nearly 13% and surging by 58.3% year-on-year. Hanoi was in the third place with 1.42 billion USD, representing 12.9% of the total and rising 23.6%, statistics show.

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Vietnam’s GDP expands by 6.93% in Q1 https://vietnamfact.com/vietnams-gdp-expands-by-6-93-in-q1-2/ https://vietnamfact.com/vietnams-gdp-expands-by-6-93-in-q1-2/#respond Sun, 06 Apr 2025 08:24:24 +0000 https://vietnamfact.com/?p=2137 The agro-forestry-fishery, industry-construction, and service sectors expanded by 3.74%, 7.42% and 7.7%, contributing 6.09%, 40.17%, and 53.74% to the total

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The agro-forestry-fishery, industry-construction, and service sectors expanded by 3.74%, 7.42% and 7.7%, contributing 6.09%, 40.17%, and 53.74% to the total GDP expansion during January–March, respectively.

Vietnam’s gross domestic product (GDP) grew 6.93% in the first quarter of 2025 compared to the same period last year, the highest Q1 rate since 2020, the National Statistics Office (NSO) reported at a press conference in Hanoi on April 6.

NSO Director Nguyen Thi Huong said this is a positive growth rate, reflecting the high determination, great efforts, and decisive and effective actions taken by the entire political system in directing, managing, and implementing socio-economic development tasks amidst rapid and unexpected changes in the region and the world.

This figure exceeded the target set for Q1 under the Government’s Resolution No. 01/NQ-CP, but still fell short of expectations under Resolution No. 25/NQ-CP, dated February 5, 2025, due to rapid global changes and uncertainties that have affected the country’s socio-economic situation, she noted.

According to the NSO, the agro-forestry-fishery, industry-construction, and service sectors expanded by 3.74%, 7.42% and 7.7%, contributing 6.09%, 40.17%, and 53.74% to the total GDP expansion during January–March, respectively.

In particular, agriculture recorded its added value increasing 3.53% from a year earlier to contribute 0.32 percentage point to the GDP growth, forestry 6.67% and 0.03 percentage point, and fisheries 3.98% and 0.09 percentage point.

In the industry – construction sector, the added value of industry went up 7.32% compared to the same period last year to contribute 2.39 percentage point to the economic growth in Q1. Processing – manufacturing remained a growth driver of the whole economy as the activities rose 9.28% to contribute 2.33 percentage points to the overall growth. Meanwhile, a 7.99% increase was seen in construction, contributing 0.48 percentage point to the overall growth.

During the three months, the service sector was fuelled considerably by the high consumption demand during the Lunar New Year holiday and a surge in the number of international arrivals.

In particular, transportation and warehousing grew 9.9% year on year, contributing 0.67 percentage point to the GDP growth. Accommodation and food services expanded 9.31% to contribute 0.27 percentage point, wholesale and retail 7.47% and 0.83 percentage point, while finance – banking – insurance 6.83% and 0.41 percentage point.

Regarding the economic structure in the reviewed period, the agro-forestry-fishery sector made up 11.56%, industry – construction 36.31%, services 43.44%, and product taxes minus product subsidies 8.69%, according to the NSO.

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Vietnam posts trade surplus of 3.16 billion USD in Q1 https://vietnamfact.com/vietnam-posts-trade-surplus-of-3-16-billion-usd-in-q1/ https://vietnamfact.com/vietnam-posts-trade-surplus-of-3-16-billion-usd-in-q1/#respond Sun, 06 Apr 2025 08:22:10 +0000 https://vietnamfact.com/?p=2134 In March alone, the total trade revenue reached 75.39 billion USD, up 18.2% compared to the previous month, and 16.6%

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In March alone, the total trade revenue reached 75.39 billion USD, up 18.2% compared to the previous month, and 16.6% year-on-year.

Vietnam’s total import-export turnover hit 202.52 billion USD in the first three months of 2025, marking a 13.7% increase compared to the same period last year, the National Statistics Office (NSO) reported on April 6.

The country’s export earnings grew by 10.6%, while its import turnover rose by 17%, resulting in a trade surplus of 3.16 billion USD in the period.

In March alone, the total trade revenue reached 75.39 billion USD, up 18.2% compared to the previous month, and 16.6% year-on-year.

The export value in the month stood at 38.51 billion USD, up 23.8% month-on-month. The domestic economic sector posted an impressive growth rate of 32.1% to 11.08 billion USD, while the foreign-invested sector, including crude oil, increased by 20.7% to 27.43 billion USD.

For the first quarter, Vietnam’s export turnover reached 102.84 billion USD, a 10.6% year-on-year rise. The domestic sector contributed 29.02 billion USD (up 15%), accounting for 28.2% of total exports, while the foreign-invested sector, including crude oil, earned 73.82 billion USD (up 9%), making up 71.8% of total exports.

During this period, 18 export items surpassed the 1 billion USD mark, accounting for 84.5% of total export value. Five of these items exceeded 5 billion USD, or 59.9%.

On the import side, Vietnam spent 99.68 billion on imports in the Jan – March period, up 17% year-on-year. The domestic sector imported 36.78 billion USD worth of goods (up 19.3%), while the foreign-invested sector’s import value stood at 62.9 billion USD (up 15.8%).

Seventeen imported items exceeded 1 billion USD in value, comprising 77.2% of total imports, with two of those surpassed the 5 billion USD mark, accounting for 44.4%.

The US remained Vietnam’s largest export market, with turnover reaching 31.4 billion USD. Meanwhile, China continued to be the country’s biggest import source, with imports valued at 38.1 billion USD.

In the first quarter, Vietnam ran a trade surplus of 27.3 billion USD with the US, a 22.1% increase year-on-year, while its surplus with the EU expanded by 15.7% to 9.9 billion USD. Notably, the country’s trade surplus with Japan surged to 0.6 billion USD, over 5 times higher than the same period in 2024.

The first quarter ended with impressive growth figures in the import-export sector. However, with potential challenges ahead, the Government, ministries, and the business community need to have proactive and flexible approach and take timely solutions to maintain this growth momentum in the coming period, said insiders.

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CPI rises 3.22%, inflation remains under control in Q1 https://vietnamfact.com/cpi-rises-3-22-inflation-remains-under-control-in-q1/ https://vietnamfact.com/cpi-rises-3-22-inflation-remains-under-control-in-q1/#respond Sun, 06 Apr 2025 08:20:11 +0000 https://vietnamfact.com/?p=2130 The Government has implemented numerous measures to keep market prices stable and inflation under control. Vietnam’s consumer price index (CPI)

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The Government has implemented numerous measures to keep market prices stable and inflation under control.

Vietnam’s consumer price index (CPI) climbed 3.22% year-on-year while core inflation rose by 3.01% in the first quarter of 2025, Director of the National Statistics Office (NSO) Nguyen Thi Huong said at a press conference in Hanoi on April 6.

Huong explained that the first quarter saw significant fluctuations in the global commodity markets due to various political, economic, and social factors across different countries. She said strategic competition between major powers continues to intensify, particularly with the new US tariff policies causing trade tensions and affecting global supply chains.

Ongoing military conflicts and political instability across the globe have forced many countries to maintain tight monetary policies, resulting in weak aggregate demand and slow global economic growth, she added.

Director of the NSO’s Service and Price Statistics Department Nguyen Thu Oanh identified factors contributing to the CPI increase in Q1, saying the food and food service group rising by 3.78%, contributing 1.27 percentage points to the overall CPI growth. Within this category, pork prices increased by 12.49% due to supply shortages amid high demand during holidays, adding 0.42 percentage point to the overall CPI increase. Rice prices went up 0.97%, contributing 0.02 percentage point, while fresh poultry prices climbed 1.06%.

Housing, electricity, water, fuel, and construction materials hiked 5.11% due to higher prices of cement, steel, sand, and rental housing, contributing 0.96 percentage point to the CPI expansion. Household electricity prices increased by 5.11% due to higher demand and the Vietnam Electricity’s adjustment of average retail electricity prices from October 11, 2024, adding 0.17 percentage point to the overall CPI.

Pharmaceutical products and medical services jumped by 14.4%, contributing 0.78 percentage point to the CPI growth.

These increases were partially offset by a 2.4% decrease in transport costs as fuel prices dropped 9.73% and railway passenger transport services down 6.06% in Q1. Besides, the education group decreased by 0.61%, lowering the overall CPI by 0.04 percentage point, as several provinces and centrally-run cities exempted or reduced tuition fees for the 2024-2025 academic year. The postal and telecommunications group fell by 0.59%, reducing the CPI by 0.02 percentage point.

The NSO said core inflation, 3.01%, was lower than the average CPI increase primarily because food prices, electricity, and medical services – major contributors to CPI growth – are excluded when calculating core inflation.

In March alone, the CPI dropped slightly, by 0.03% from the previous month. However, it still rose 1.3% from December 2024 and 3.13% from the same period last year.

The Government has implemented numerous measures including ensuring stable supply chains, reducing lending rates, accelerating public investment, and cutting value added tax, Huong said, adding market prices remain stable and inflation under control.

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AmCham proposes US postpone reciprocal tariffs on Vietnam’s goods https://vietnamfact.com/amcham-proposes-us-postpone-reciprocal-tariffs-on-vietnams-goods/ https://vietnamfact.com/amcham-proposes-us-postpone-reciprocal-tariffs-on-vietnams-goods/#respond Fri, 04 Apr 2025 08:37:43 +0000 https://vietnamfact.com/?p=2144 While AmCham acknowledges the need to address the growing trade deficit between the two nations, it strongly urges the US

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While AmCham acknowledges the need to address the growing trade deficit between the two nations, it strongly urges the US administration to consider implementing a grace period.

The American Chamber of Commerce in Vietnam (AmCham) on April 4 issued a statement outlining the wide-ranging impact of the US’s new tariff policy on Vietnamese exports.

AmCham reaffirmed its mission to promote trade and investment between the US and Vietnam, grounded in free and fair economic and trade policies, with the goal of ensuring a stable and predictable business environment.

However, the scale and abruptness of the 46% reciprocal tariffs announced by the US government on April 2 were described as wholly inconsistent with these objectives.

The sudden imposition and significant magnitude of the tariffs have created considerable uncertainty and the potential for serious disruption to businesses operating in Vietnam, AmCham noted.

While acknowledging the need to address the growing trade deficit between the two countries, AmCham strongly urged the US administration to consider a grace period before the tariffs take effect.

Such a period, the organisation stated, would provide businesses on both sides with time to adjust to the new regulations, thereby reducing unnecessary disruption and financial loss.

At present, the immediate implementation of the tariffs leaves no opportunity for businesses to adapt, as many commercial decisions have already been made under the assumptions of previous trade agreements.

AmCham noted that both the US and Vietnamese governments recognise that the current trajectory of the trade deficit is unsustainable. It added that one of the US administration’s stated aims in introducing reciprocal tariffs is to establish greater parity in tariff rates between the two countries.

In this context, AmCham expressed support for the reduction of tariffs on US goods entering Vietnam as a means of addressing the imbalance and easing reciprocal duties.

The chamber stated that tariffs on US goods should, at a minimum, be aligned with those applied to Vietnam’s other trading partners, as well as those imposed on Vietnamese exports entering the US.

“We are hopeful that both countries can agree on reducing tariffs to mutually acceptable levels, allowing us to maintain a trade relationship that has brought benefits to all parties involved,” said Mark Gillin, Chairman of AmCham Vietnam.

He emphasised that AmCham members require certainty and stability to operate effectively.

“We urge both governments to accelerate negotiations aimed at reducing these duties to the lowest possible levels,” he said. “AmCham stands ready to provide constructive input and facilitate dialogue between the US and Vietnamese governments to strengthen the trade relationship.”

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Vietnam’s seafood exports surge to 2.45 billion USD in Q1 https://vietnamfact.com/vietnams-seafood-exports-surge-to-2-45-billion-usd-in-q1/ https://vietnamfact.com/vietnams-seafood-exports-surge-to-2-45-billion-usd-in-q1/#respond Thu, 03 Apr 2025 08:40:40 +0000 https://vietnamfact.com/?p=2147 Industry insiders pointed to stable raw material prices and a strategic shift towards higher-value processed products as key factors underpinning

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Industry insiders pointed to stable raw material prices and a strategic shift towards higher-value processed products as key factors underpinning the strong performance of the two top earners -shrimp and tra fish.

Vietnam’s seafood exports staged a remarkable recovery in the first quarter, reaching a total value of 2.45 billion USD, up 26% year-on-year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

Shrimp and tra fish remained the key drivers of growth. By the end of Q1, shrimp exports totalled 931.6 million USD, a sharp increase of 35.7% compared to the same period last year. This surge was largely attributed to robust demand from major markets such as China, the US, and the EU. Meanwhile, tra fish exports contributed 465 million USD, an annual rise of 13%.

Industry insiders pointed to stable raw material prices and a strategic shift towards higher-value processed products as key factors underpinning the strong performance of the two top earners. However, tra fish exports experienced a slower growth rate compared to shrimp, reflecting a cooling market in early 2025 amid geopolitical uncertainties and continued anti-dumping duties in the US. Vietnamese shrimp, while maintaining upward momentum, faced intense competition from Ecuador and India, both of which benefit from cost and production scale advantages.

In addition, revenue from overseas shipments of crabs, swimming crabs, and molluscs with shell fish stood out as a highlight in the first quarter, reaching 86.4 million USD, a staggering 66% increase year-on-year, driven by soaring demand from China during its Lunar New Year period.

Tuna exports saw modest growth of 3.6%, with cumulative earnings of 222.7 million between January and March. Nguyen Ha, a VASEP expert on the tuna market, cautioned that the EU’s regulations on illegal, unreported, and unregulated (IUU) fishing continue to pose significant challenges for Vietnam’s seafood industry, particularly for the tuna sector.

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Vietnam’s manufacturing production increases for first time in 3 months https://vietnamfact.com/vietnams-manufacturing-production-increases-for-first-time-in-3-months/ https://vietnamfact.com/vietnams-manufacturing-production-increases-for-first-time-in-3-months/#respond Wed, 02 Apr 2025 09:06:03 +0000 https://vietnamfact.com/?p=2019 Manufacturing production in Vietnam grew for the first time in three months during March, and to the largest degree since

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Manufacturing production in Vietnam grew for the first time in three months during March, and to the largest degree since August last year amid renewed increases in both output and total new orders, according to S&P Global.

That said, international demand weakened, and firms were cautious around hiring and purchasing as business confidence softened, the firm said in a release on Tuesday.

“Meanwhile, the rate of input cost inflation eased and manufacturers lowered their selling prices for the third month running,” it noted.

The S&P Global Vietnam Manufacturing Purchasing Managers’ Index (PMI) posted above the 50.0 no-change mark for the first time in four months during March, thereby signalling an improvement in business conditions at the end of Q1/2025.

At 50.5, the PMI was up from 49.2 in February and pointed to a slight strengthening in the health of the sector.

Vietnam’s General Statistics Office is expected to announce the country’s Q1 growth data this week.

Andrew Harker, economics director at S&P GlobalMarket Intelligence, commented: “The Vietnamese manufacturing sector kicked into gear in March, seeing the first increases in output and new orders in 2025 so far. Firms will hopefully be able to build on these improvements in the months ahead.”

“For now though, there is still a fair amount of caution among manufacturers, leading to a reluctance to hire additional staff or purchase extra inputs. This potentially reflects an uncertain international environment, with new export orders falling sharply during March.”

The rise in output in part reflected improvements in the availability of goods, but also a renewed increase in new orders, which likewise expanded following a two-month sequence of decline.

Growth of new orders was recorded amid signs of improving customer demand, but was only slight amid ongoing weakness in international demand.

In fact, new export orders decreased markedly and at the fastest pace since July 2023. New business from abroad has now fallen in five successive months, according to S&P Global.

The company noted that while output and total new orders returned to growth, firms were slightly less confident in the year-ahead outlook for production than was the case in February.

“Sentiment remained positive amid higher new orders and hopes for stable demand, but optimism was below the series average.”

Manufacturers exhibited caution with regards to employmentand purchasing in March. Staffing levels decreased for the sixth consecutive month, linked to a recent period of subdued demand and staff resignations.

That said, the drop in workforce numbers was the weakest in 2025 so far. Purchasing activity, meanwhile, decreased for the first time in four months, with firms suggesting that the recent period of input buying meant that holdings of goods were sufficient to support output requirements.

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Vietnam – The Fastest-Growing Economy in Southeast Asia, Says New Zealand News Site https://vietnamfact.com/vietnam-the-fastest-growing-economy-in-southeast-asia-says-new-zealand-news-site/ https://vietnamfact.com/vietnam-the-fastest-growing-economy-in-southeast-asia-says-new-zealand-news-site/#respond Sat, 29 Mar 2025 09:09:00 +0000 https://vietnamfact.com/?p=2022 With its rapidly expanding economy and increasing demand for high-end products, Vietnam is emerging as an attractive destination for New

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With its rapidly expanding economy and increasing demand for high-end products, Vietnam is emerging as an attractive destination for New Zealand exporters, creating numerous opportunities for cooperation and sustainable development in the near future.

New Zealand’s news site rnz.co.nz has reported that Vietnam is currently the fastest-growing economy in Southeast Asia. Bilateral trade between Vietnam and New Zealand has reached 2.68 billion NZD (1.54 billion USD), reflecting a 40% increase over the past five years, according to the article.

Recognizing the immense potential of the Vietnamese market, New Zealand exporters are actively working to strengthen their position as strategic business partners, particularly in the high-value food and beverage sector.

The article highlights that New Zealand’s Minister of State for Trade and Investment, Nicola Grigg, informed the New Zealand Parliament that as Vietnam becomes wealthier, its consumers are increasingly seeking high-quality products from global markets. Meanwhile, New Zealand is home to some of the world’s leading food and beverage producers and innovative businesses.

Last year, New Zealand fruit companies generated 172 million NZD in exports to Vietnam, with apples being the primary export, followed by kiwifruit and cherries, according to data from the Ministry for Primary Industries.

Ben McLeod, Head of Sales and Marketing at Hawke’s Bay-based Mr Apple, owned by Scales Corporation, described Vietnam’s economic growth as remarkable.

He noted that Vietnam has experienced rapid development over the past 10 to 15 years, transitioning from a low-income nation to a lower-middle-income country.

McLeod also emphasized that several free trade agreements between New Zealand and Vietnam have positioned New Zealand favorably against other competing fruit markets, particularly in fruit exports.

Brendon Osborn, Sales and Marketing Manager at Nelson’s Heartland Fruit, pointed out that Vietnam’s rising affluence is evident in the emergence of large, locally-owned retail super-malls catering to middle and high-income consumers.

Osborn explained that Vietnam is a highly competitive market, which is why his company has concentrated on the premium import segment, ensuring strict quality standards to build consumer trust in Vietnam.

As Vietnam’s economy continues to expand and demand for high-end products grows, the country remains an attractive market for New Zealand exporters, paving the way for enhanced cooperation and sustainable development in the future.

The post Vietnam – The Fastest-Growing Economy in Southeast Asia, Says New Zealand News Site appeared first on Vietnam Fact.

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