Vietnamese Rice and Expanding Economic Growth Amid Global Trends

Vietnam’s economic landscape is evolving, with rice exports increasing in Japan, e-commerce tax revenues flourishing, and coffee export values surging. The State Bank is adjusting reference exchange rates and eliminating credit growth quotas, while measures to support SMEs and enhance industrial real estate are in place. Vietnam Airlines and other sectors are strategically expanding in response to growing demand.

Vietnamese rice has gained traction among Japanese consumers, reflecting a rising demand for quality products. Alongside this, significant developments in various sectors are shaping Vietnam’s economic landscape. Tax revenue from e-commerce has surged, with 130 foreign suppliers, including giants like Google and Facebook, contributing approximately 2.91 trillion VND (114 million USD) through the electronic tax portal.

In the coffee sector, Vietnam’s export value reached 1.72 billion USD in the first two months, primarily due to a spike in global prices, despite a reduction in export volume by 22%. The State Bank of Vietnam set the daily reference exchange rate at 24,793 VND/USD on March 18, showing a minor decline. This aligns with ongoing efforts to stabilize currency valuation in light of changing economic conditions.

To support small- and medium-sized enterprises, the finance ministry is facilitating connections with financial institutions and experts, enhancing their operational sustainability. Moreover, the International Finance Corporation (IFC), in collaboration with Switzerland, launched an initiative aimed at providing over 500,000 SMEs with up to 35 billion USD in financing. This endeavor is bolstered by a 5 million Swiss Francs grant, running until 2029.

The seafood sector has also seen growth, with Vietnam becoming Brazil’s second-largest aquatic product supplier, as exports reached 655 million USD in February, marking a 44.5% increase year-on-year. Meanwhile, the State Bank of Vietnam is formulating a roadmap to eliminate the credit growth quota policy, which has been in place since 2011 to manage inflation.

Bank lending in Ho Chi Minh City experienced a slight decrease, amounting to 3.936 trillion VND, while the e-tax system resumed operations after a temporary suspension aimed at improving tax management. The customs trade reached 1.05 billion USD on the first day of a new operational model introduced on March 15, aimed at enhancing efficiency.

Additionally, industrial real estate is poised for growth as legal barriers are being removed, further attracting foreign investment. The new Terminal T3 at Tan Son Nhat International Airport is slated to begin operations in May, designed to accommodate 20 million passengers annually, signifying a boost to both the aviation and tourism sectors.

Vietnam’s export revenue targets for 2025 are ambitious, aiming for 454 billion USD, with positive signs as January-February exports reached 65.2 billion USD, an increase of 9.9% from the previous year. The reference exchange rate for the USD increased by 15 VND at the week’s start, reflecting ongoing adjustments in currency policy by the State Bank.

As part of its expansion strategy, Vietnam Airlines will resume direct flights from Hanoi to Moscow on May 8 and plans to open 15 international routes by 2025. Lastly, experts affirm Vietnam’s potential to develop an international financial center, urging a flexible approach in selecting financial models while emphasizing the importance of human capital.

In summary, Vietnam’s economy is witnessing robust growth across various sectors, including rice and coffee exports, e-commerce taxation, and industrial real estate development. The government’s strategies to enhance financial support for SMEs and remove legal impediments significantly promise to drive economic growth. The ambition to position Vietnam as an international financial center underscores the country’s potential to leverage its unique advantages in global markets.

Original Source: en.vietnamplus.vn