Vietnam News Today (Apr. 22): Vietnam to Have Opportunities From Digitalization, Green Transformation

Photo: VOV

Vietnam to have opportunities from digitalization, green transformation: IMF

Vietnam’s economic growth is predicted to expand by about 6.5% this year based on numerous potentials, significant foreign direct investment, and ongoing efforts to improve the business environment and infrastructure.

The International Monetary Fund (IMF) has forecast that Vietnam will have many opportunities from digitalization and green transformation.

Addressing a press conference on the Regional Economic Outlook for Asia and Pacific in Washington DC on April 18, IMF Asia and Pacific Department Director Krishna Srinivasan said Vietnam’s economic growth was likely to expand by about 6.5% based on numerous potentials, significant foreign direct investment, and ongoing efforts to improve the business environment and infrastructure.

According to the expert, growth surprised on the upside in the second half of last year, as robust domestic demand fueled activities, especially in emerging Asian economies. Malaysia, the Philippines, Vietnam, and, most notably, India recorded sizable positive growth surprises.

He stated that growth for the region reached 5% last year - much stronger than the growth of 3.9% in 2022 - and is 0.4% higher than what IMF had projected in the Regional Economic Outlook in October last year, cited VNS.

The fund projects the region to grow by 4.5% this year - an upward revision of 0.3% relative to October, saying that with this, Asia will contribute about 60% of global growth.

Srinivasan said that promoting growth would depend on each country individually. In China and India, the IMF expects investment to contribute disproportionately to growth. Meanwhile, in emerging Asia outside China and India, robust private consumption will remain the main growth engine.

He also mentioned the monetary policy challenge, recommending that governments should focus on consolidation to curb the rise in public debt and rebuild fiscal buffers.

Quang Ninh aims to become international tourism hub

Quang Ninh aims to become an international tourism hub and a world leading destination by 2050 through establishing the brand of Ha Long Bay - Bai Tu Long Bay as a landscape paradise and harmonizing the development of economic-social-environmental ecosystems, along with raising the quality of life of local residents to meet international standards.

Those are among important targets of the province's tourism development scheme to 2030 with a vision to 2050, which is being finalized by the provincial People's Committee.

Under the project, from now until 2030, Quang Ninh will continue to strengthen its role as a national tourism locomotive with tourism turned into a spearhead economic sector in connection with sustainable development of marine economy towards green growth. The province will strive to attract tourists all year round and become a destination not to be missed in Vietnam.

The province will focus on diversifying tourism products, expanding the tourist market, promoting cooperation in tourism development, improving local capacity in state management and implementation of tourism development policies. Priority will be given to the development of high-quality tourism human resources and digital transformation in the field, according to VNA.

Quang Ninh targets to become an international tourism hub and a world leading destination by 2050 (Photo: VietnamPlus)

Quang Ninh will consistently follow the policy of sustainable and inclusive tourism development on the foundation of green growth. The province aims to develop tourism in a professional, quality and sustainable manner, and link tourism development with preserving and promoting national cultural values and identities. The province also envisions unique tourism products with high added-value in different types of tourism and the formation of national tourism sites.

This year, Quang Ninh expects to welcome 17 million visitors, including three million foreigners. To this end, it is rolling out such solutions as attracting tourists from Northeast Asia and China, Europe, the US, and developing new markets such as India, Middle East, Russia and Australia through promotion activities.

The province will host 186 cultural and sporting events in 2024 to stimulate tourism, among them are many traditional events that have become trademarks of Quang Ninh such as Hạ Long Summer Tourism Week 2024, Bach Dang Traditional Festival, Quang Ninh Ethnic Culture Day, a culinary festival, a three-region circus gala, the OCOP summer 2024 fair, a national festival for music, the Quang Ninh Open golf tournament and the Ha Long Heritage Marathon. It also plans to offer 62 more new tourism products in 2024.

Vietnam wins two more 2024 Paris Olympics spots

Vietnam secured two more tickets to the 2024 Paris Olympics this summer after clinching medals at Olympic qualifications in Japan and the Republic of Korea.

Nguyen Thi Huong took silver in the women’s C1 200m of the 2024 Asian Canoe Sprint Championships that ended in Japan on April 21.

The multi-time SEA Games champion competed against rowers from Uzbekistan, Kazakhstan, Thailand, Indonesia, Iran, Japan, the Republic of Korea and Taiwan (China).

She managed to finish second with a time of 49.351sec, leaving behind Mariya Brovkova of Kazakhstan in third place with a time of 49.423sec.

First place went to Nilufar Zokirova of Uzbekistan, clocking a time of 49.109 second, VNS reported.

Nguyen Thi Huong (first left) finishes second in the women’s C1 200m of the 2024 Asian Canoe Sprint Championships in Japan, claiming an Olympic spot for Vietnam. (Photo: Vietnam sport team)

In the women’s C1 200m category, only the gold and silver medalists are eligible for the 2024 Paris Olympics spots, meaning Nguyen Thi Huong of Vietnam and Nilufar Zokirova of Uzbekistan won the tickets.

The 2024 Asian Canoe Sprint Championships took place in Tokyo, Japan, from 18 to 21 April 2024, and served as the continental qualification for the 2024 Summer Olympics in Paris.

Meanwhile, Pham Thi Hue grabbed another Olympic spot after coming in fifth place at the World Rowing Asian and Oceanian Olympic and Paralympic Qualification Regatta in the Republic of Korea.

In the women’s singles scull, Hue competed against opponents from Singapore, the Philippines, Japan, Iran, and Uzbekistan.

She finished fifth overall after athletes from Uzbekistan, Japan, Iran and the Philippines, but the result was just enough for her to qualify for the Paris Games.

So far, nine Vietnamese athletes have won tickets to the Olympic Games in Paris this summer. Seven spots were earlier claimed by cyclist Nguyen Thi That, shooters Trinh Thu Vinh and Le Thi Mong Tuyen, boxer Vo Thi Kim Anh, swimmer Nguyen Huy Hoang, weightlifter Trinh Van Vinh, badminton player Nguyen Thuy Linh.

Factors influencing Vietnam’s FMCG market

Economic outlook, demographic transformation and changing consumer trends are among macro shifts reshaping Vietnam’s fast-moving consumer goods (FMCG) landscape, according to marketing data and analytics company Kantar Worldpanel.

In its recent report on the Vietnam FMCG market outlook for 2024, Kantar has a positive outlook for Vietnam’s economy, saying that despite obstacles and short-term headwinds, the long-term economic trajectory remains robust.

Nevertheless, rising costs have had and will continue to have an impact on shoppers’ budget management strategy. Value remains a key driver, with consumers making conscious choices about where to allocate their budgets.

“While rising prices and economic uncertainty may present a picture of tightened belts across the board, the consumer landscape is nuanced.

“Essential categories remain at the forefront of budgets, discretionary spending may see cuts, particularly in categories like eating out and entertainment.”

However, consumers have not entirely shut down their wallets, according to the report. They are still willing to "splurge," but their spending is driven by value.

Added values in health, experiences and convenience may prompt them to seek out products that justify their worth.

This presents a unique opportunity for FMCG brands to navigate challenging times and position themselves for growth.

The key lies in understanding how different consumer segments are adapting their behavior and adopting strategies that cater to these shifts.

In addition, rising prices have led to a slowdown in in-home FMCG volume growth, even as average spending continues to rise. This raises the question: Is this increase driven solely by inflation, or are consumers changing their shopping baskets? Understanding the answer is crucial for developing effective marketing strategies.

Even in difficult times, some brands thrive while others find growth elusive. While competitive pricing coupled with strategic promotions is a must, success in securing consumers’ share of wallet hinges on brands’ ability to seize the opportunities to offer consumers smarter solutions and value-driven choices.

As for the impact of changing demographics on the FMCG market, the report says Việt Nam's demographic structure is painting a new picture.

The once "golden population" is maturing, with an aging, urbanizing population and smaller household sizes emerging, cited VNA.

Customers shop at a supermarket in HCM City. Several key macro trends are shaping Vietnam's FMCG landscape in 2024 and beyond. (Photo: VNA)

This shift holds significant potential for FMCG businesses as demand for diverse products surges across different age clusters. Rising household incomes and decreasing household sizes, however, indicate a demand for evolving value propositions, where affordability might not be the sole driver.

Kantar suggested strategies for FMCG brands and manufacturers such as decoding drivers of changes in consumers’ shopping behavior, mastering the multi-channel landscape, building a winning portfolio with consumer-centric innovation, and maximizing promotions by focusing on quality over quantity.

Its data reveals that over half of FMCG brands struggled to keep pace with the competition in 2023, particularly within growing categories where approximately one-third of brands began to lag.

As competition intensifies in 2024, this highlights the urgent need for brands to identify their unique growth drivers to stay ahead of the competition.

The FMCG retail landscape in Vietnam is shifting to more convenient and modern formats but not all modern trade channels can win, according to the company.

To succeed, brands need to understand the reason behind a shopper's visit to each channel and adapt their approach accordingly.

Concerning building a winning portfolio with consumer-centric innovation, different strategies are required for different categories, depending on size, growth, and competition landscape.

For FMCG manufacturers with a vast portfolio, identifying key categories to prioritize investments is crucial.

There are opportunities for rising FMCG categories as well as mature categories.

Finally, promotions are one of the most effective ways to drive immediate volume sales uplift though not all have the same impact.

By understanding the true effectiveness of different promotion types on brand growth, brands can harness the power of promotions to not only drive impact on revenue but also build brand loyalty.

HCM City named among world’s best short-haul holiday destinations

Australian daily The Sydney Morning Herald has added Ho Chi Minh City of Vietnam to the world’s list of best short-haul holiday destinations for Australian family holidays looking to travel abroad.

Ho Chi Minh City is a frenetic and underrated financial center that offers year-round balmy weather, a rich history, and one of the most exciting food scenes throughout Southeast Asia.

During a holiday lasting four to six days, there are plenty of things to do across the city, according to the news wire.

Once travelers master crossing the road safely, many popular attractions are within strolling distance of one another. Popular sites include the grand French colonial City Hall, the Opera House, the Saigon Central Post Office, Notre Dame Cathedral, and sun-dappled Book Street, all of which can be done in one trip.

HCM City has been named among the world’s best short-haul holiday destinations. (Photo courtesy of Sydney Morning Herald)

Nearby, Café Apartments, a boxy 1960s modernist block located on Nguyen Hue Walking Street that once housed military personnel, is now a treasure trove of eccentrically decorated cafes, bars, and boutiques worthy of exploration, the Australian Daily wrote.

The article also suggested street food sites such as Binh Tay and Phung Hung markets. Ben Nghe Street Food is far more tourist-friendly, although it feels more Brooklyn food hall than a wet market.

A scooter or motorbike tour will cover more territory for foodies than one could ever hope to complete solo, the Australian media outlet shared.

Elsewhere, Singapore and Malaysia are the other Southeast Asian destinations to be named on the world’s list of the best short-haul holiday destinations for Australian families.

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