Vietnam’s Promise as a Rising Powerhouse in the Global Supply Chain

National Assembly Chairman Vuong Dinh Hue (third from right) and President of the National Assembly of People’s Power of Cuba Esteban Lazo Hernandez (fourth from right) cut ribbon to inaugurate Suchel – TBV washing powder factory (Photo: VNA)

Cuban Ambassador highly values Vietnam’s economic development results

Vietnam’s economic achievements deserve to be lauded and receive applause from the international community, including Cuba, according to Cuban Ambassador to Vietnam Orlando Nicolás Hernández Guillén.

In an interview granted to the Vietnam News Agency on the occasion of the 63rd anniversary of the establishment of Vietnam-Cuba diplomatic relations (December 2) and the New Year 2024, he said that Vietnam has reaped positive results in economic expansion despite complex developments of the world situation as a result of armed conflicts, financial crisis, and economic recession.

Thanks to the bravery, intelligence, steadfastness, and sound leadership of the Party and Government, Vietnam recorded outstanding economic growth in 2022, and it continues to be among the countries with fast growth rates in 2023, the diplomat assessed.

Regarding bilateral relations, he stated that Cuba has pinned high hope on the development of the Cuba-Vietnam ties, cited VNA.

Cuba hopes Vietnam to become an increasingly important factor contributing to supporting the Caribbean country in realizing its strategic goals of ensuring food security through the supply of rice, as Vietnam is the main supplier of this very important grain for the Cuban people, the ambassador stressed.

He went on to say that cooperation between the two countries has been also promoted through Vietnamese businesses’ commitments to cooperating with Cuban partners in expanding production of essential goods such as rice, meat, maize, and beans.

“Vietnam is the largest Asian investor of Cuba and we hope Vietnamese businesses will continue to increase investment activities in our country,” Ambassador Orlando Hernández said.

During National Assembly Chairman Vuong Dinh Hue’s official visit to Cuba in April, Vietnamese businesses inaugurated a solar power plant, a washing powder factory, and an animal feed factory in this Caribbean nation, he said, adding that it continues to promote efforts to have more and more Vietnamese investors explore the market and expand operations in Cuba.

He expressed his hope that investment cooperation activities will bring about benefits for both Cuba and Vietnam, as well as their enterprises, and Cuban products, particularly those related to biotechnology, will increase their presence in the Southeast Asian country. He shared that a delegation from BioCubaFarma, the Cuban organization of Biotechnology and Pharmaceutical Industries, recently visited Vietnam to seek cooperation opportunities, which will contribute to improving Vietnamese people’s health.

Regarding collaboration at regional and international forums, the Cuban Ambassador emphasized the need for the two countries to intensify coordination at multilateral forums and international organizations, promote cooperation in areas of mutual concern, in the context of a complex and changing world situation with many interwoven challenges and opportunities.

In that context, Vietnam and Cuba must unite and make stronger efforts to implement all proposed plans, with the common goal of improving people’s living conditions, Orlando Hernández stressed.

Vietnam has great potential as emerging link in global supply chain

Amazon’s Vice President Eric Broussard said global retail e-commerce has opened up many opportunities and created a new movement for sellers from many countries, including Vietnam.

Asked about the possible impact of global retail e-commerce on countries joining cross-border supply chains, Broussard said there were major trends.

First, the shift from an offline to online model. The tendency has been growing over the last 20-30 years and has been speeding up recently. Convenience, diverse options and reasonable prices will continue to promote the shift.

Meanwhile, e-commerce still makes up a modest proportion of the global total retail capacity, which means there is still space for sellers from many countries, including Vietnam, to expand and approach clients all over the globe.

Traditionally, when you want to sell a product in the international market, you will have to give the right to control the product, price and strategies to intermediary parties. But with e-commerce, even small and micro businesses can build global brands of their own by using the infrastructure provided by parties like Amazon.

In this way, manufacturers and brand owners have equal opportunities to access global clients. They not only can export commodities but can also export global brands.

The global retail e-commerce market has opened up more opportunities, creating a new movement for sellers from many countries, including Vietnam. The goods and service export value of Vietnam in 2022 was 91 percent of GDP, which Broussard said is “really amazing”.

The world is witnessing a shift from traditional exports to global e-commerce, from B2B (business to business) to B2C (business to consumer) export, with brand owners controlling product quality and setting up business strategies themselves. The advantage of Vietnam is the experience and the capability built up over many years by enterprises that have been serving clients all over the world.

Vietnam is also asserting its position as an emerging production base in Asia and the world. With support from the government and rapid digital transformation, Vietnam can see positive growth potential in the field of B2C export, according to VNN.

The senior executive from Amazon who paid a recent working visit to Vietnam said he could see the enthusiasm, excitement and energy from sellers in Vietnam, and could feel the dynamism of cross-border e-commerce.

He visited a factory of Sunhouse, a manufacturer which has built its brand in the domestic market with a wide range of products, and is expanding in the global market.

He said Amazon wants to turn Vietnam into an emerging link in the global supply chain. Vietnam would help bring more diverse options to hundreds of millions of Amazon’s clients all over the globe.

Amazon is pursuing a policy to bring even more choices for clients.

Amazon hopes Vietnam will emerge as a new production base in Asia, with the capability of manufacturing and supplying a wide range of products, from interior decoration, electronics, textiles and garments to consumer goods.

Amazon has hundreds of millions of clients globally, while Vietnam has the ability to make diverse products with competitive prices.

Vietnam’s products, such as environmentally-friendly straw and recyclable plastic bags, have attracted developed markets, including the US.

The strong business spirit in Vietnam is also an attractive factor for Amazon. The energy and interest by Vietnamese sellers show their readiness to take on new opportunities and integrate more deeply into the global economy.

With Amazon, Vietnamese sellers have increased their presence globally and successfully attracted international customers.

In 2023, Vietnam’s small and medium enterprises sold 17 million products via Amazon, from fine arts and interior decor products to organic cashew nuts

Regarding Amazon’s investment in Vietnam, he said Amazon Day-1, a training center, has been set up in Vietnam to help Vietnamese businesses unfamiliar with Amazon, discover all of its services and features.

Amazon has 400 fulfillment centers worldwide which Vietnamese sellers can exploit to boost sales. With FBA (Fulfillment By Amazon), prime customers can receive deliveries within two days.

Lao Cai, China’s Yunnan province step up cooperation

Localities in the northern mountainous border province of Lao Cai and Hekou district in China’s Yunnan province will bolster collaboration in the areas of economy, trade, and industrial parks in the time to come, heard a working session held in Lao Cai city on December 31.

Expressing their delight at the sound cooperation and exchange between Muong Khuong, Bat Xat and Bao Thang districts and the Chinese district in 2023, participants agreed to enhance friendship exchange, promote economic cooperation, and strengthen connectivity and cooperation in investment, culture-tourism, education-sport and cross-border labor, among others.

Regarding collaboration in economy, trade and industrial parks, the localities reached consensus on bolstering connectivity in terms of policy, smooth circulation of labor, goods, and capital, and the organization of trade promotion activities, VNA reported.

HCM City launches new products to lure tourists

A range of new tourism products have been launched in HCM City to lure more tourists for the year-end travel season, according to the city Department of Tourism.

The maiden double-decker water bus along the Sai Gon River is one of the city’s thrilling sightseeing tours that started operation last Saturday.

The daily one-hour tour entitled “Saigon River SightSeeing” is priced from VND 177,000 – 339,000 (US $7-16).

Tourists can view the sunrise and sunset on the Sai Gon River and enjoy the fresh air by taking a cruise along the river, said Nguyen Kim Toan, director of Thuong Nhat Co., Ltd., which operates the service.

It is expected to diversify tourism products and experiences in the city to serve tourists for the year-end holidays, cited VNS.

Hoi An announces joining of UNESCO Creative Cities Network

Hoi An – home to a UNESCO World Heritage site in Quang Nam Province –held a ceremony on December 31 to formally announce its designation as a creative city in crafts and folk art in the UNESCO Creative Cities Network.

Speaking at the event, Hoi An Chairman Nguyen Van Son said the city boasts a rich treasure trove of intangible cultural heritages, including trade villages, handicrafts and folk arts, in addition to a diverse and unique architectural complex.

He noted that along with advancing innovation and creativeness, Hoi An also values ecological and humane values, always creates opportunities, and nurtures creative values on the foundation of protecting and promoting cultural heritage values.

The city leader shared that Hoi An has gradually become a familiar cultural site and a favorite destination of both domestic and foreign tourists, adding that the city has been named a leading cultural destination by many renowned websites, cited NDO.

He stated that Hoi An’s designation as a member of the UNESCO Creative Cities Network will help enhance the position of the city and spread its distinctive cultural value to international friends.

According to the acting chief representative of UNESCO Vietnam, Pham Thi Thanh Huong, Hoi An needs to continue efforts to promote its craft and folk art resources to become a strategic action framework and tool for the city to achieve sustainable socio-economic goals and to strengthen its international reputation.