Vietnam News Today (Feb. 15): US Remains a Top Trading Partner for Vietnam

Photo: VOV

Vietnam – China trade hits over US$10 billion in January

China was Vietnam’s only trading partner to have an import and export turnover reaching more than US$10 billion in January, according to the General Department of Vietnam Customs.

Of the figure, Vietnamese export turnover was US$3.87 billion while the country spent US$7.23 billion on importing goods from the northern neighbour.

Vietnam’s key export commodities include phones and components, while major imported items are electronic products and components, machinery, equipment, tools and spare parts, materials, consumer goods, and agricultural products.

At present, China is an important export market for some Vietnamese agricultural products. It is the country’s third largest importer of seafood products, behind only the United States and Japan.

With China moving to reopen its border gates on January 8, there are positive signs for businesses to boost the export of local agricultural products to the northern neighbour, cited VOV.

Industry insiders emphasised the need to develop brands and build large-scale farming areas in order to comply with stringent requirements set by Chinese market in terms of code of the growing area, packaging facilities, origin traceability, and export business registration as a means of increasing exports to the market.

The General Administration of Customs of China has so far granted 435 codes to Vietnamese agricultural product exporters this year.

Vietnam People’s Army soldiers join search, rescue efforts in Turkey

A delegation of the Vietnam People’s Army, including 76 soldiers who bring with them six service dogs, arrived in Antakya city of Turkey’s Hatay province on February 13 evening (local time), to join search and rescue activities for earthquake-hit victims.

At the airport, the delegation talked to representatives from the Turkish Disaster and Emergency Management Authority to learn about the needs of the host country, according to VNA.

Vietnam People’s Army soldiers arrive in Hatay (Photo: VNA)

Earlier, a 24-member team of the Vietnamese Ministry of Public Security engaged in search and rescue efforts in the Turkish southeastern city of Adiyaman, which is among the localities bearing the brunt of the earthquake, after they arrived in Istanbul International Airport on February 10.

As of 9pm on February 13 (Vietnam time), the deadly disaster had killed more than 37,000 people in not only Turkey but also Syria.

According to the Vietnamese embassies in Turkey and Syria, so far, there was no information on Vietnamese citizens dead or injured in the disaster.

US remains a top trading partner for Vietnam, trade minister

The United States is among the top trading partners, and at the same time one of the world’s leading export markets for Vietnam, affirmed Industry and Trade Minister Nguyen Hong Dien.

The effective and substantial cooperation between the two countries was resulted from the two governments’ strategic vision and the active coordination as well as effective implementation of their relevant agencies, including the United States Trade Representative (USTR), Dien recently told USTR representative Katherine Tai, who was in Hanoi for a working visit to Vietnam.

Minister of Industry and Trade Nguyen Hong Dien at the meeting. (Photo: MoIT)

Dien emphasized there is great potential for enhancing bilateral cooperation in the fields of climate change response, energy transformation, digital transformation and green growth, reported VOV.

Vietnam supports efforts to deepen bilateral relations, as well as multilateral cooperation mechanisms and initiatives led by the US which are beneficial to ensuring peace, stability and development regionally and globally, including within the Indo-Pacific Economic Framework for Prosperity (IPEF), he said.

The minister suggested that USTR continue to promote its role as an important bridge between the two Governments to help strengthen the Vietnam - US Comprehensive Partnership.

He also suggested that the US soon realize its commitments to support Vietnam and other countries in implementing international agreements on climate change response, including the declaration on a Just Energy Transition Partnership.

Vietnam is ready to coordinate with the United States to successfully organize the APEC Year 2023, he assured his guest.

Both host and guest acknowledged the sound Vietnam – US trade performance in recent times, with their two-way trade turnover reaching more than US$123 billion last year, up 11% year on year.

They examined cooperation between the two countries within the framework of the Asia-Pacific Economic Cooperation (APEC), the Indo-Pacific Economic Framework for Prosperity (IPEF), sub-regional cooperation, cooperation in climate change response, energy transition, and digital transformation among others.

The two sides emphasized the significance of promoting free, open, fair trade based on international law and sustainable and inclusive growth in the region, in which ASEAN countries play a central role.

Katherine Tai for her part affirmed that bilateral trade has been promoted, especially since September 2020. She revealed in 2023, the US will cooperate more closely with Vietnam in the field of e-commerce alongside existing fields.

The US Government’s current major priority is to promote trade recovery and economic growth in a sustainable, resilient and inclusive manner on the back of lessons learned from the recent COVID-19 pandemic response, she emphasized.

Accordingly, she said the US focuses on strengthening partnerships with countries in the Asia-Pacific and Indian Ocean regions, and at the same time ensuring benefits for local people and workers.

The US will give priority to promoting cooperation frameworks to build an efficient and sustainable economic and investment ecosystem, thereby creating a new impetus for the development of the regional economy, she said.

Katherine Tai briefed her host on the US’ preparations for hosting the APEC Year 2023 and the connotation of the Indo-Pacific Economic Framework for Prosperity, in order to build trust among partners, enhance digital technology transfer, prevent unfair trade activities, and strengthen digital trade recovery for countries in the region.

Vietnamese continue to shop online: report

According to Vietnam E-Business White Paper 2022, the online marketplace is an important distribution channel in the digital era.

A report by the international auditing firm PwC shows that Covid-19 has had a profound impact on consumer shopping behavior, switching from offline to online shopping. This trend continued in the "new normal" period when online shopping behavior became a habit.

The percentage of people shopping in-store decreased from 76% in 2019 to 67% by the end of 2021, while shopping via mobile devices and smartphones increased from 55% to 69%.

Daily necessities, which were previously consumed mainly through traditional channels, became best-selling online items in social-distancing periods.

According to Vietnam E-Business White Paper 2022, the online marketplace is an important distribution channel in the digital era. Businesses are investing more in expanding their presence on e-commerce platforms. Businesses on social networks grew 41% in 2021 and 57% in 2022.

According to Grab's 2022 Food and Goods Delivery Trends Report, Vietnamese users order the most frequently in the region. The order with the largest value was VND 1,998,000 (US$90).

The people who use the delivery service the most tend to be young families. About 72% of food delivery users in Vietnam are families with young children, and they order delivery at least seven times a month. Similarly, the delivery service recorded 76% of users with young children, using the service more than 14 times per month.

Lazada's statistics show that Vietnamese consumers shopped online for household products such as clothes, canned food, packaged dry food, breakfast cereals; garden supplies; cooking utensils, food supplements, and more. The online department store recorded an increase in the number of searches for fresh food categories such as vegetables, fruits, meat and seafood, increasing by nearly none times compared to 2020.

According to Google, Temasek and Bain&Company, the growth momentum of online grocery shopping will not stop after social distancing due to Covid-19. Some 58% of Vietnamese consumers surveyed said that they have continued to shop for groceries on e-commerce platforms because of convenience. And 53% of Vietnamese consumers said that online grocery shopping has become part of their routine.

Challenges

However, there are many barriers to bringing markets and department stores online. Online shopping and online payments still face obstacles due to the lack of trust of consumers. Many customers are afraid of being cheated, or feel that it is risky when making a purchase, especially when paying online.

Photo: VNN

One of the typical challenges in online business is persuading customers to buy a product without being able to "touch it with their own hands and see it with their own eyes". Sellers need to find ways to make their products stand out and convince them that the product or service they offer is superior.

While traditional retailers can design eye-catching billboards or participate in community events, an online store marketing plan is heavily focused on increasing online visibility and increasing the order conversion rate, cited VNN.

To overcome these differences, online sellers need to build “virtual” connections by providing detailed, more intuitive product descriptions, and display and provide reviews from previous buyers to gain more trust from customers.

Another challenge for online sellers is to "connect" with customers to build trust in their stores and products. Online customers often have different shopping behaviors and habits than offline customers, which requires new sellers to continuously invest in research, and learn about and improve customer care.

In addition, the common habit and behavior of using cash has generally decreased but has not yet shifted strongly to non-cash payment and electronic payment. Some consumers are still afraid to approach new technology and payment means, due to concerns about security and safety in payment.

Crime and fraud in electronic payments have recently increased amid more frequent online services and transactions, with new and more sophisticated tricks.

According to surveys, 81% of online sellers want to increase the use of electronic payments in the next two years. Therefore, it is necessary to simplify online payment but also ensure safety and convenience, helping consumers have better awareness.

Vietnam-Japan economic forum 2023 to open in Hanoi

The Vietnam-Japan Economic Forum 2023 will be held in Hanoi on February 15 by the Vietnam Chamber of Commerce and Industry (VCCI).

The forum aims at sharpening the collaboration between the two countries in various fields, including startup, while proposing creative solutions to promote substantial economic development. It will also offer a good opportunity for Vietnamese startups to seek partnerships with their Japanese peers.

The Vietnam-Japan Economic Forum 2023 will be held in Hanoi on February 15 by the Vietnam Chamber of Commerce and Industry (VCCI). (Photo: VNA)

The event is expected to see the participation of 250 delegates, including government leaders, representatives of departments and sectors, economists and businesspeople from both countries, VNA reported.

Since Vietnam and Japan established their diplomatic relations on September 21,1973, the two countries have enjoyed fruitful cooperation in various areas such as politics, economy, culture, people-to-people exchange, among others.

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