Vietnam’s Economic Growth: Coffee and Aquatic Exports Surge Amid…

Vietnam’s economic landscape demonstrates notable advancements, with coffee exports totaling $1.72 billion, aquatic product exports rising by 44.5%, and plans for enhanced financial support for SMEs. Developments in industrial real estate, an international financial center proposal, and increased bilateral trade with Italy further signify Vietnam’s growth amidst global challenges.

Vietnam’s coffee exports rose impressively to $1.72 billion in the initial two months of the year, underscoring the nation’s strong position as a global coffee exporter. This growth reflects ongoing demand for Vietnamese coffee in international markets, enhancing the country’s economic vitality.

On March 18, the State Bank of Vietnam announced a minor adjustment to the daily reference exchange rate, lowering it to 24,793 VND/USD, down by 1 VND from the previous day. This adjustment reflects the bank’s ongoing management of foreign currency stability in the nation.

The Ministry of Finance is actively supporting sustainable business operations for small and medium-sized enterprises (SMEs) by facilitating connections with financial institutions, investors, and expert guidance from both domestic and international sources.

The International Finance Corporation (IFC), in collaboration with Switzerland, is launching a significant initiative aimed at enhancing supply chain finance in Vietnam, backed by a grant of 5 million Swiss Francs (approximately $5.6 million). This initiative aims to assist over 500,000 SMEs in accessing up to $35 billion in financing until 2029.

According to the Department of Customs, Vietnam has become Brazil’s second-largest supplier of aquatic products, with exports reaching $655 million in February, reflecting a year-on-year increase of 44.5%. In total, the aquatic product exports for the first two months of 2025 reached $1.42 billion, up 19% from the same period in 2024.

The State Bank of Vietnam is working on a roadmap to phase out the credit growth quota policy, which has limited the credit expansion of banks since 2011 amidst economic challenges.

In the Ho Chi Minh City region, bank lending growth has experienced a slight decline in 2025, with outstanding credit reported at 3.936 trillion VND, which marks a decrease of 0.17% from December 2024 yet represents a 12.2% increase year-on-year.

The e-tax system resumed full operations after a temporary suspension for enhancements in tax management, which took place from March 12 through March 17.

In a significant operational change, customs trade reached $1.05 billion on the first day of a new three-tier model, aimed at streamlining the customs structure under the 12th Party Central Committee’s Resolution 18.

The industrial real estate sector anticipates growth as legal obstacles are removed in projects, enhancing investment opportunities and contributing to the sector’s growth in 2025.

Passengers can expect to utilize the new Terminal T3 at Tan Son Nhat International Airport, scheduled to commence operations in May. The terminal, designed for 20 million passengers a year, represents a substantial investment of nearly 11 trillion VND (approximately $431.2 million).

Vietnam aims for an ambitious export revenue target of $454 billion amidst global economic challenges, having recorded $65.2 billion in exports in January-February, signifying a growth of 9.9% from the previous year.

On March 17, the reference exchange rate was set at 24,794 VND/USD, indicating an increase of 15 VND from the preceding day. This adjustment reflects the central bank’s management of the currency despite market dynamics.

Vietnam Airlines is planning to resume direct flights from Hanoi to Moscow starting May 8, which is part of an expansion strategy including the launch and restoration of 15 international routes that connect Vietnam with several key global destinations.

A finance expert from the University of Cambridge argues that Vietnam is well-positioned to establish an international financial center, given its existing foundation and potential.

A recent forum has highlighted the potential for trade and tourism connectivity between Japan, Vietnam, and Thailand, suggesting that these regions could collaboratively foster significant economic development.

Experts recommend that Vietnam remain adaptable in selecting financial center models, emphasizing the importance of human capital along with other core factors influencing the successful establishment of such centers.

Hoa Phat’s hot-rolled coil products have been exempted from the EU’s anti-dumping duties due to the company’s expertise in navigating international trade regulations, thus benefiting downstream businesses.

There is a notable demand for rice exports, as Vietnam has shipped over one million tonnes in the first two months of the year, indicating strong market interest.

Vietnam has emerged as a crucial partner for Italy, being the largest trading partner within ASEAN, with bilateral trade reaching $6.9 billion in 2024, marking a year-on-year increase of 13.1%.

The Vietnamese government is keen to strengthen comprehensive energy cooperation with the United States, committing to a balanced and sustainable economic relationship that avoids creating barriers detrimental to U.S. interests, as stated by Minister of Industry and Trade Nguyen Hong Dien.

In summary, Vietnam is showcasing impressive economic indicators, from significant growth in coffee and aquatic product exports to crucial developments in industrial real estate and the financial sector. The government is actively facilitating financial support for SMEs and navigating international trade dynamics effectively. The commitment to fostering international cooperation, particularly with the United States and regional partners, positions Vietnam as a promising player in the global economy.

Original Source: en.vietnamplus.vn