Vietnam News Today (Aug. 20): Vietnamese Products Seek to Gain Firm Foothold in Global Supply Chain

Heads of delegations to 55th ASEAN Economic Ministers’ Meeting (Photo: ASEAN)

Vietnam contributes to intra-bloc cooperation at AEM-55

Minister of Industry and Trade Nguyen Hong Dien is leading a Vietnamese delegation to the 55th ASEAN Economic Ministers’ Meeting (AEM-55) which officially opened in Semarang, Indonesia, on August 19.

The Vietnamese representative gave comments on issues related to intra-ASEAN economic cooperation such as preparations for the signing of the second Protocol amending the agreement on the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), negotiations to upgrade the ASEAN Trade in Goods Agreement (ATIGA), and preparations for the launch of negotiations on the ASEAN Digital Economy Framework, thereby demonstrating Vietnam's strong commitment to regional economic integration and helping maintain its active role in activities that create a driving force for regional and global economic growth, promote post-COVID-19 economic recovery, and strengthen regional supply chains.

At the meeting, participating ministers shared information and updated the implementation of Indonesia's prioritised economic cooperation initiatives in its ASEAN Chairmanship Year 2023, and important tasks of the ASEAN Economic Community such as the ASEAN Strategy for Carbon Neutrality, preparations to launch negotiations on the ASEAN Digital Economy Framework, implementation and upgrade of the ATIGA as well as preparations for consultations between economic ministers of ASEAN member states and their partners.

They also exchanged views on recommendations by the High-Level Task Force on ASEAN Economic Integration related to the building of the post-2025 ASEAN Economic Community vision, and reviewed preparations for the upcoming ASEAN Summit and related summits, cited VOV.

In addition, the ministers also discussed economic cooperation activities between ASEAN and dialogue partners such as the US, China, the European Union, Japan, the Republic of Korea, Australia, New Zealand, India, Russia, Canada, and the UK, along with the implementation of free trade agreements (FTAs) between ASEAN and partner countries, including the upgrade of the ASEAN-China FTA, negotiations on an FTA between ASEAN and Canada, and the implementation of the Regional Comprehensive Economic Partnership (RCEP).

On the sidelines of the meeting, the ministers discussed with the ASEAN Business Advisory Council (ABAC) about the council’s recommendations and priorities related to promoting the use of electric vehicles in the region, strengthening regional trade and investment integration, facilitating collaboration activities on sustainable development, and maintaining health measures to respond to epidemics.

As planned, this meeting will be followed by a series of Economic Ministerial Consultations between ASEAN and its dialogue partners scheduled for August 20-22.

Vietnamese products seek to gain firm foothold in global supply chain

Vietnam is one of the world’s leading exporters of agricultural products and foods, although the proportion of its products directly exported to global distribution systems remains modest, reported Nhan Dan (People’s Daily).

Fresh Vietnamese longans hit the shelves on August 18 at Tops supermarket of Thailand’s Central Retail Group inside CentralWorld, a large shopping and trading complex in the Thai capital of Bangkok. It is expected that approximately 2.3 tonnes of Vietnamese longans meeting Global GAP standards will be marketed in Thailand over the coming days.

Longans make up one of the Vietnamese fruits which are among the favourites with Thai consumers, said Paul Le, vice president of Central Retail in Vietnam.

Longan, litchi, rice, and many other local agricultural products have directly been shipped and distributed to foreign retailers without any intermediary fees. And these products are being sold at supermarkets with their own brands.

This can be viewed as the initial result of the implementation of the Prime Minister’s Decision 1415 issued in November, 2022, that encourages Vietnamese businesses to get directly involved in the foreign distribution network up to 2030. So far, many Vietnamese goods have entered major distribution systems such as Central Retail, AEON, MM Mega Market, and Walmart.

The country is currently among a group of five that exports the most goods to the Walmart chain, with key products including textiles, home appliances, electronics, and ready-to-eat foods, said Nguyen Duc Trong, a sales manager of Walmart Asia.

Vietnamese goods are therefore being displayed for sale not only in Asia and the United States, but also in Europe. Scanesia AS, one of Norway’s largest importers of Asian agricultural products and food, has been purchasing food products from Vietnam over the past 10 years.

Vietnamese rice now available for sale at a supermarket in France. (Photo: Nhan Dan)

The past three years has seen the firm significantly increase orders from the country as the products have gradually improved a lot, from packaging design to product quality, said Emmy Jørgensen, head of the firm.

Sharing this perspective, Paul Le of Central Retail, noted that Vietnamese enterprises have made great strides in branding their products, which has ultimately made them better, easier to remember, and more relevant to the international market.

Through these changes, more Vietnamese goods will be able to reach out to global consumers easily, said Paul Le.

Vietnam is one of the world’s leading exporters of many agricultural products and foods. Indeed, the proportion of Vietnamese products directly distributed into supermarket chains overseas remains modest, according to VOV.

In order for businesses to reach out to Central Retail supermarket shelves in Thailand and from there to the rest of the world, Paul Le said that they must stand firm on Central Retail supermarket shelves right in the domestic market.

It can therefore be seen as necessary to first focus on the processing, packaging, and branding of the product, along with getting to know consumer tastes of the importing countries, he suggested.

Meanwhile, Emmy Jørgensen of Scanesia AS shared that it is important for suppliers to fully comply with and learn carefully about EU rules, with a primary focus on quality control systems such as HACCP, ISO, and BRC, before starting to export their products.

She also reminded the supplier of delivery deadlines which ensure the safety of the importer’s logistics. Indeed, she said that Norway in particular and the Nordic market in general have four seasons, and the consumption of goods is sometimes different from season to season.

Currently, Scanesia AS is in the midst of facing fierce competition from different suppliers, and hopefully that Vietnamese goods can hold competitive and stable prices, she expected.

Ta Hoang Linh, director of the European - American Market Department under the Ministry of Industry and Trade, pointed out that many businesses still have not made the most of the foreign distribution system, due to certain difficulties in their supply capacity.

In a bid to address the challenge, Linh suggested that small and medium sized businesses team up together to create a strong supply chain in an efforts to effectively supply products to large retail distribution groups.

These businesses should also get capital assistance from financial organizations such as commercial banks which can help them to modernize machinery, production lines, and technology, in order to enter foreign supply chains, he concluded.

Vietnam now a leading game producer: insiders

A blog dedicated to exploring artificial intelligence (AI) and other trending technologies in the 21st century has said Vietnam is consolidating its role in the development of electronic games worldwide.

Fagen Wasanni Technologies, also said the country is part of the Southeast Asia region, one of the fastest-growing gaming markets worldwide, with a market size of US$5 billion and 270 million gamers.

Among them, the mobile gaming sector is leading the growth trajectory due to its affordability and market penetration capabilities, as evaluated by the game-focused website Pocketgamer.

In this developmental context, there are now many Vietnamese enterprises capable of producing and operating online games instead of relying on imported products.

Vietnam has risen to the 5th position in the list of top countries for game production worldwide, according to a report from data tracking company DataAI & AppMagic.

In the first quarter of this year, 4.2 billion app downloads from games were created by Vietnamese developers, which highlights the country’s growing position in the industry, reported VNA.

Axie Infinity is one of Vietnamese successful online games. (Photo: axieinfinity.com)

Several Vietnamese app developers, including major names like Falcon Global, ABI Global, Zego Global, and Rocket Studio, are among the top 50 companies in e-game production. The applications developed by these companies were downloaded more than 100,000 times in 2022.

A recent assessment by Bloomberg also acknowledges Vietnam as a powerhouse in the gaming industry, being among the top five countries globally in terms of mobile game production, based on download numbers in the first half of 2023.

Vietnam’s thriving talent pool and proximity to the culturally diverse region are also reasons for this growth, as cited by Samuel Stevenin, the general manager of Virtuos, a game maker that entered the Vietnamese market in 2011.

He also highlights the cultural emphasis on developing mobile products in Vietnam and Southeast Asia as a whole, as well as the expertise and passion of local talents in creating high-quality digital content and world-class games. The explosive success of games like Axie Infinity and Flappy Bird are among many inspiring success stories that have made a significant impact.

Hanoi among top five Asia-Pacific’s culinary gems for travelers

Travel website Booking.com has named Hanoi among the top five culinary gems in the Asia-Pacific region for a richer travel experience.

According to the website, from an exceptional culinary journey at the nation’s various Michelin star restaurants to the hidden hole-in-the-wall joints of Japan, travelers can embark on a mouthwatering adventure that is sure to leave their taste buds dancing with delight.

Delicious and eye catching food of Tam Vi restaurant (Photo: foody.vn)

Booking.com stressed that Hanoi boasts Michelin Star restaurants Gia, Hibana by Koki, and Tam Vi.

At Gia, chef Sam Tran creates a rotating, seasonal contemporary Vietnamese menu, whilst Hibana by Koki serves Japanese cuisine at an intimate 14-seat counter which has ingredients flown in twice a week from Japan, while Tam Vi focuses on northern Vietnamese dishes such as ham with snails and crab soup with Malabar spinach.

“These eateries which were awarded the prestigious Michelin star in June 2023 serve beautifully crafted dishes and exceptional culinary experiences that are worth stopping by on a trip to Vietnam,” the website noted.

It also recommended that holiday goers enjoy a stay at Capella Hanoi which is located close to the famous Hoan Kiem lake and Hanoi’s Old Quarter. Indeed, guests can visit several popular tourist attractions near their accommodation such as Hanoi Opera House, Trang Tien Plaza, and Thang Long Water Puppet Theater.

Rounding off the list is Seoul of the Republic of Korea, Tokyo of Japan, Singapore, and finally Kaohsiung of Taiwan (China).

Five Vietnamese airports launch automatic entry systems

The police at five Vietnamese international airports - Da Nang, Noi Bai, Cam Ranh, Tan Son Nhat, and Phu Quoc - have officially put their automatic entry system (Autogate) into operation.

The Autogate application will contribute to speeding up immigration procedures, reduce the number of personnel serving at security desks at airports, whilst simultaneously enhancing security measures.

The changes will see the systems installed in the departure and arrival areas.

Photo: VOV

In the initial phase of operation, Autogate will be applied to Vietnamese citizens with valid passports.

The system will be accessible to all Vietnamese citizens holding chip-based passports upon arrival. Passengers without such passports will be guided to register at the airport, a process which takes around four minutes and involves passport and fingerprint scanning, as well as biometric and facial recognition, cited VOV.

As such, travelers only need to register for a permit once for all subsequent entry and exit occasions as long as the passport remains valid.

For departures, the system is available only for Vietnamese citizens who hold diplomatic and official passports, along with those possessing APEC business travel cards, and with cabin crew members.

The Autogate area comprises two layers. In the first layer, passengers scan their passports and boarding passes. After they successfully scan, face recognition and fingerprint scanning will follow, thereby eliminating the need for customs officers to stamp the passport.

The Autogate has not yet been applied to foreign passengers upon their arrival, but their departure if they possess valid residence cards or temporary residence cards issued by authorised agencies of Vietnam.

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