Vietnam News Today (May 23): Vietnam’s Exports Via E-commerce On The Rise

Commander of the Vietnam Coast Guard patrol force holds a phone call with the China Coast Guard patrol force. (Photo: VNA)

Vietnamese, Chinese coast guards conduct joint patrol in northern Gulf of Tonkin

The coast guards of Vietnam and China on May 22 conducted their joint patrol in the northern Gulf of Tonkin, covering the waters off Mong Cai city in Quang Ninh province and Dongxing and Fangchenggang cities in China’s Guangxi province.

The joint patrol, the second of its kind this year, spanned 102 nautical miles from Point 1 to Point 9 along the countries’ demarcation line in the Gulf of Tonkin. This area is a bustling zone for bilateral import-export and goods exchange activities. It is also a hotspot for illegal activities such as smuggling, trade fraud, illegal border crossings, and unauthorized maritime entries.

The Vietnam Coast Guard took the occasion to actively communicate with dozens of fishing vessels operating near the bordering waters to comply with regulations on illegal, unreported, and unregulated (IUU) fishing. The work aimed to help lift the European Commission (EC)’s yellow card warning imposed on Vietnam's seafood and promote the country’s sustainable fishery development, cited VNA.

Starting in 2024, joint patrols in the bordering waters are conducted quarterly to maintain security and law enforcement for citizens of both nations. These efforts contribute to the preservation and development of the Vietnam-China traditional friendship and neighborliness as well as the cooperation between their coast guards.

Vietnam’s exports via e-commerce on the rise

The number of products Vietnamese businesses sell via Amazon has increased by 300% over the past five years, heard a conference on cross-border e-commerce (CBEC) in Hanoi on May 22.

Retail e-commerce sales have increased by 20% over the past decade, making Vietnam among the countries with the fastest growth rates in the region and the world, revealed Nguyen Thi Minh Huyen, deputy director of the Ministry of Industry and Trade (MoIT)'s Department of E-commerce and Digital Economy.

Gijae Seong, CEO of Amazon Global Selling Vietnam, shared that since setting up a dedicated team in Vietnam in 2019, Amazon Global Selling has enabled thousands of local selling partners to bring millions of Made-in-Vietnam products to worldwide customers each year.

Specifically, he noted that the number of Vietnamese businesses recording sales of US$1 million annually on Amazon was now 10 times higher compared to five years previously.

In addition, the Vietnamese sales partners participating in Amazon’s brand registration program has also increased by 35 times, according to VOV.

A panel session with the participation of representatives of craft associations, industries, businesses and experts in the field of cross-border e-commerce. (Photo: Minh Nguyet)

In 2023, the export value of Vietnamese enterprises via Amazon was estimated to have increased by more than 50%, with the number of sales partners from Vietnam rising by 40%.

There were thousands of Vietnamese sellers conducting business on Amazon, with 17 million products from Vietnam sold on the platform last year.

However, at the conference, Amazon representatives stressed that there are still many Vietnamese businesses that are not ready and face a general lack of human resources to undergo digital transformation.

The conference was held by Amazon Global Selling and the Vietnam E-commerce and Digital Economy Agency (iDEA) in response to growing demand among Vietnamese firms striving to capture the rising CBEC opportunity.

Blue-beret soldiers pay tribute to President Ho Chi Minh

The Vietnam Department of Peacekeeping Operations under the Ministry of National Defence laid a wreath and offered incense in tribute to President Ho Chi Minh at his mausoleum in Hanoi on May 22 on the occasion of the 10th anniversary of the department's traditional day (May 27).

The department was established on May 27, 2014 to help implement the Party and State’s consistent policy of contributing to a world of peace, cooperation and sustainable development, and affirm Vietnam’s commitment to becoming a responsible member of the international community.

Over the past ten years, more than 800 officers and professional soldiers of the Vietnam People's Army have been sent to UN peacekeeping operations, including five detachments of the Level-2 field hospital to the UN Mission in South Sudan, two others of the engineering unit to the UN Interim Security Force for Abyei, and 114 officers deployed as individuals, VNA reported.

Vietnamese blue-beret soldiers pay tribute to President Ho Chi Minh on May 22. (Photo: VNA)

At the ceremony, Director of the Vietnam Department of Peacekeeping Operations Colonel Pham Manh Thang affirmed that all of the Vietnamese units and officers have excellently completed their duties as entrusted by heads of the missions and the UN.

With concerted efforts, professionalism, creativity and high sense of discipline while performing duties, the blue-beret soldiers have left good impression on international colleagues and local people, he stressed, adding they have helped local administrations and people to build roads and schools, organized classes, and provided free medical examination, healthcare advice and medicine for local residents.

The department’s contributions over the past decade have helped popularize the country's traditional cultural values and the Vietnamese soldiers' noble virtues among Vietnamese expatriates and foreigners, thus helping to raise the country’s position and prestige in the international arena, he said.

The blue-beret force promises to remain absolutely loyal to the Party, the Fatherland, the army and the path chosen by President Ho Chi Minh, and continue their work as messengers of global peace by implementing meaningful political and humanitarian activities for the international community, Thang emphasized.

On this occasion, the department also laid a wreath at the monument dedicated to war heroes and martyrs on Bac Son street.

Import-export turnover hits over US$270 billion by mid-May

Vietnam’s total export and import value reached US$270.82 billion in a period from January 1 to May 15, 2024, resulting in a trade surplus of US$6.36 billion, according to the General Department of Customs.

The first half of May witnessed the country fetch US$14.64 billion in export revenue, raising its total export earnings in the first four and a half months to US$138.59 billion, up 16% year on year.

Meanwhile, the country spent US$17.26 billion on imports in the first half of May, raising its total import turnover by mid-May to US$132.23 billion, up 17.5% year on year, cited VOV.

Photo: VOV

Exports to major markets such as the United States, the European Union, and China all enjoyed double digit growth, with the US remaining the largest Vietnamese export market.

The Ministry of Industry and Trade has suggested that businesses strive to take full advantage of potential markets where the country has signed a Free Trade Agreement (FTA), such as the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in order to meet the export target by the end of this year.

In addition, local firms have been advised to diversify markets in order to maintain growth momentum by fully tapping into new markets worldwide.

Vietnam eyes World Bank’s global logistics top 40 by 2035

Efforts should be made to increase the competitiveness of domestic enterprises to capture a larger market share and elevate the position of Vietnam's logistics sector.

Vietnam expects to break into the top 40 of the World Bank’s Logistics Performance Index (LPI) for the 2025-2035 period, up from its current ranking of 43rd.

This is one of the key objectives of Vietnam’s draft logistics development strategy for the 2025-2035 period, with a vision for 2045.

At the meeting to announce the draft strategy on May 20, Deputy Director of the Import-Export Department under the Ministry of Industry and Trade Tran Thanh Hai stated that the move aims to “comprehensively and synchronously develop the logistics services sector in line with Vietnam's economic potential.”

For the period 2025-2035, the draft strategy sets ambitious goals to increase the logistics sector's contribution to GDP to 5%-7% and to achieve an average annual growth rate of 12%-15%. The strategy also targets increasing the outsourcing rate of logistics services to 70%-80% and reducing logistics costs to 12%-15% of GDP.

Other targets for this period include 80% of logistics companies adopting digital transformation solutions and 50% of transport vehicles used by logistics companies being powered by green energy. The strategy also seeks to have 70% of the logistics workforce trained to technical standards, with 30% holding a university degree or higher, Hanoitimes reported.

Cargo handling at Haiphong Port. Photo: Hoai Nam/The Hanoi Times

Looking ahead to the period up to 2045, the draft strategy aims to further increase the logistics sector's contribution to GDP to 6%-8%, with an average annual growth rate of 10%-12%. The outsourcing rate of logistics services is expected to rise to 80%-90%, while logistics costs are expected to decrease to 10%-12% of GDP. Additionally, Vietnam aims to rank 30th or higher in the World Bank’s LPI by this time.

In terms of specific targets, the strategy envisages that 100% of logistics companies will adopt digital transformation solutions and that all transport vehicles used by logistics companies will be powered by green energy. It also aims for 90% of the logistics workforce to be trained to technical standards, with 50% holding a university degree or higher.

Hai emphasized that the global economic and trade recovery, the fourth industrial revolution, digital transformation, and the rapid growth of e-commerce as well as Vietnam's deep integration into the global economy, offer significant opportunities for the development of logistics services. However, challenges such as economic recession, inflation, integration challenges, and increasing demands for green and sustainable development also pose considerable challenges for the logistics sector.

“In response to these challenges, the draft strategy focuses on making breakthroughs in the regulatory framework, improving the investment and business environment, and encouraging all economic sectors to participate in the development of logistics services,” Hai noted.

He also emphasized the need to invest in modern and synchronized infrastructure, develop the logistics market, enhance the competitiveness of enterprises, and promote regional and international economic linkages to ensure sustainable growth.

Additionally, the strategy aims to improve the quality and environmental sustainability of logistics services through digital platforms, he continued.

At the meeting, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan expressed his support for the draft strategy. He highlighted the need for further discussion on integrating logistics into national, regional, local, and specialized planning.

Tan pointed out that while foreign enterprises currently dominate the market, efforts should be made to increase the competitiveness of domestic enterprises to capture a larger market share and elevate the position of Vietnam's logistics sector.

Furthermore, the role of associations in connecting businesses, promoting green and sustainable logistics, training quality human resources, developing freight sources, and establishing logistics centers should be emphasized as crucial for creating synergies and driving growth in the sector, he said.

On December 28, 2023, the Ministry of Industry and Trade issued Official Letter No.9270/BCT-XNK to various ministries, provincial People's Committees, associations, and relevant agencies, requesting feedback on the draft strategy and reports on the implementation of the Action Plan to enhance competitiveness and develop Vietnam's logistics services until 2025, as approved by the Prime Minister in Decision No.200/QD-TTg on February 14, 2017.

In general, the feedback supports the necessity of developing and issuing the draft strategy and agrees with the proposed perspectives and development orientations for the logistics services sector outlined in the draft strategy.

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