CENTRAL PROVINCE TO PROMOTE ZERO WASTE TOURISM

The owners of 44 hotels, homestays, villas and restaurants as well as travel agencies in the central province of Quảng Nam have agreed to take action to reduce the plastic waste their businesses release into the environment.

The ‘Zero plastic waste tourism’ campaign was promoted at a conference in the province’s Hội An City earlier this week with the participation of 200 representatives of NGOs, UNESCO and businesses.

As well as boosting communications on plastic waste, some members of the Quảng Nam provincial tourism association (QTA) have applied their own solutions to reduce and recycle waste and plastic waste in restaurants and hotel kitchens.

Vũ Thị Mỹ Hạnh, manager of the An Nhiên Farm, a member of QTA, said Field restaurant in Hội An has begun recycling organic waste from the kitchen to reduce daily waste released into the environment by 10kg to 15kg. Meanwhile, organic waste is recycled into 30kg of materials to create chemical-free dish-washing liquid at the restaurant each month.

Hạnh said Sapo – a natural handmade soap firm in Hội An – alone has recycled 300 litres of used-cooking oil to produce chemical-free kitchen soap over the last five years.

“We have collected and recycled 300kg of single-use soap at hotels and resorts into usable soaps for poor people, while 1.5 tonnes of old mattress covers have been used to make school uniforms for poor children and curtains at health centres in remote mountainous areas since 2018,” Hạnh said.

“Refillable Hội An, the first refillable concept store in Hội An, has helped local residents re-use 2,600 containers by refilling empty plastic bottles of washing liquid with environmentally-friendly detergent or washing liquid,” Hạnh said.

“This means thousands of plastic bottles and containers will not be sent to dumps if consumers are aware of environmental protection.”

Hạnh said waste should be classified at its source in restaurant kitchens and homes, and actions must be taken by vendors, businesses, restaurants, schools and hospitals.

Hội An has been dubbed the first locality in Việt Nam to launch the 3-R waste classification (reduce, re-use and recycle) from 2002.

Trends

Trần Việt Thùy from Pacific World Travel, a member of TUI Tours, said 80 per cent of MICE (Meeting, Incentives, Conference and Exhibition) tour customers requested plastic and waste-free accommodations and transport vehicles as well as tour services.

“Our customers have a high request on environmental protection manners and nature experience activities rather than luxury service at five-star hotels. They love having meals in rural scenery in paddy fields, or joining environmentally-friendly activities,” Thùy said.

“Saying no to plastic has become a new trend in luxury segment of our service. They would pay from US$700 to $1,000 for service fees, provided there is no plastic waste or activities harmful to the environment,” she said, adding Hội An has been a top site among her customers.

However, she said few local service suppliers could reach these standards.

Peter Debrine, programme specialist at the UNESCO World Heritage centre in Paris, said the participation of small-medium-sized enterprises (SMEs) in the campaign of water reduction for sustainable development is very important.

“SMEs play a crucial role in sustainable development, and eco-tourism needs equality treatment policy, transparency land-use plan and participation chances at seminars or workshop,” he said.

He said Việt Nam has a big chance to boost sustainable tourism, and Quảng Nam can’t develop tourism without promoting sustainable tourism.

Vice chairman of the provincial people’s committee Lê Trí Thanh said the province’s tourism sector has enjoyed 25 per cent annual growth in the course of 20 years, but the locality faces increasing problems, including waste management.

He said the province hosted 6.5 million tourists in 2018 and hopes to receive 8 million in 2020, but waste reduction habits have yet to change among local service suppliers and the community.

“The province releases 240,000 tonnes of waste, of which 25 per cent is plastic waste, per year, while classification is not well done. The increasing number of tourists in the coming years will speed up challenges for the provincial tourism industry,” he said.

Thanh said the province has encouraged businesses to reduce waste by seeking environmentally-friendly materials instead of single-use items.

The local school curriculum now include lessons on reducing plastic use, he added.

Tôn Nữ Thị Ninh, a diplomat, said plastic waste reduction needs an upstream approach.

She said plastic producers should be aware of that because consumers sometimes have few other options than using plastic products.

Hà Thanh Hải, manager of West Lake Hotel & Resort, mentioned some of the changes his hotel has made to reduce plastic waste.

He said the resort has replaced plastic bottles with glass, sending 300kg less plastic waste to dumps each month.

“We also use paper straws instead of plastic straws or spoons. Our staff try to persuade customers not to use plastic straws or spoons,” Hải said.

“The change did not cost so much. Glass bottles can be re-used for longer, while paper straws can be recycled. Even though paper straws cost eight times as much as plastic, our non-plastic manner earns a positive response from customers and helps our brand,” he explained.

Hải said his resort did not use foam or plastic packages, while disposable bathroom wares were all replaced by environmentally-friendly products.

Phạm Lệ Chi, from Kiên Hùng handicrafts company, said she has been seeking natural material including bamboo, rattan or leaves from ethnic groups to supply material for handmade bags.

She said the production will help local community improve their income and reduce non-decomposing waste.

Some companies in Hội An have been producing straws, containers and souvenirs from bamboo and reed, while citizens have been encouraged to bring reusable bags to markets instead of taking plastic bags from sellers.

VNS

TALKING SHOP – EVFTA: AGRICULTURAL EXPORTERS WILL INCREASE IN PROFESSIONALISM

The EU-Việt Nam Free Trade Agreement (EVFTA) is expected to boost Việt Nam’s exports, especially agricultural and aquatic products that already have competitive advantages in the European market. However, the domestic agricultural sector will face challenges when penetrating this market of over 800 million people.

Đào Thế Anh, Deputy Director of the Việt Nam Academy of Agricultural Science, speaks to the Vietnam News Agency about those issues.

What opportunities will the EVFTA offer the agricultural sector in Việt Nam?

The European Union (EU) is an important market for Việt Nam’s agricultural exports. In 2018, Việt Nam’s farming export turnover to the EU was over US$22.7 billion, accounting for over 15 per cent of Việt Nam’s total agricultural export revenue.

The EVFTA will allow tariff reductions for local agricultural products, increasing competitiveness in export markets and the EU, so export turnover will continue to increase.

The European market is very fond of Southeast Asian agricultural products, especially seafood, fruits and rice. However, among Southeast Asian countries, EU customers are most aware of Thai agricultural products. The EVFTA is expected to create chances for more Vietnamese agricultural products to reach EU customers.

Europe is also one of the markets with the highest quality and food safety requirements in the world. Therefore, those requirements will help Việt Nam’s agricultural sector, especially processing firms, gradually increase professionalism in production and processing of export farming products.

Are non-tariff barriers the biggest challenge for our country’s agriculture sector?

Despite advantages from reductions in tax, Vietnamese agricultural products may find it difficult to enter the EU market because of non-tariff barriers such as food safety standards and quality control. Fresh exports to the EU must all have a Global Gap (Global Good Agricultural Practices) certificate.

To get this certification, businesses and cooperatives must build concentrated planting areas. In addition, the stages of preliminary processing must meet the HACCP (Hazard Analysis and Critical Control Points) certificate. These are all standards at the highest level.

Regarding food safety, Europe has scientific management and regular updates of risks, so besides learning by themselves, local businesses need support from the State in updating information and training to keep up with modern management in food safety and quality of the European market.

At present, Vietnamese enterprises still lack information about those trade barriers. After the EVFTA was signed, many European businesses sought suppliers of Vietnamese food products but they required those products to have Global Gap and HACCP certificates, as well as plant and animal breeds with intellectual property protection and clear origin.

Many businesses still do not know about these requirements, therefore, it is essential to communicate to them about food safety standards in Europe.

Moreover, goods entering the European market must comply with intellectual property regulations. Việt Nam has now exported to Europe 41 products with protected geographical indications in Việt Nam, while 171 European products have protected geographical indications in the domestic market. This means the products with protected geographical indications, such as Quảng Trị pepper and Bình Phước cashew, have a great opportunity to export to the EU. However, most businesses do not know about this opportunity.

In the process of integration, local enterprises will face increased competition. What can local exporters do to survive?

To enter the European market, the first thing the import-export enterprises need to understand is the laws of import/export countries, especially intellectual property laws. The legal system is the basis for resolving complaints or questions.

For agricultural exports to Europe, origin is also important. Therefore, local businesses and cooperatives must comply with regulations on transparency and product origin. Now, electronic traceability facilities such as QR Codes and Blockchain will help us avoid counterfeit goods. They will also reduce risks of unfair competition.

What solutions are available to ensure traceability of raw materials for export products?

If an enterprise wants to export its products to the EU, it needs Global Gap certification for those products. To get this certification, it must have a concentrated production region or a network of farms and cooperatives developed under Global Gap standards. That means it must reorganise production.

Now, Việt Nam has a production area code certificate issued by the Ministry of Agriculture and Rural Development, having standards approaching Global Gap. Therefore, businesses need to sign contracts to purchase raw material with farms and cooperatives that are granted the production area code.

It is necessary to have cooperation between businesses and cooperatives for sustainable development of an agricultural product supply for export to the European market.

What policies can ensure smooth bilateral trade and also protect the interests of domestic businesses and products?

The State should strengthen legal knowledge for local businesses. Many cooperatives have eligible products for export but the cooperatives’ leaders cannot speak foreign languages so the State needs to strengthen training in this respect.

Leaders of businesses and cooperatives also need more training on information technology in the context of e-commerce development. These are new skills, as well as a focus on how to produce well in the field and how to manage value chains including post-harvest technology and understanding of the world market.

EXPERTS UPBEAT ABOUT VIETNAM’S CONSUMPTION OUTLOOK

Finance expert Nguyen Tri Hieu told Vietnam News that improvements in the country’s labour market would be the key force driving private consumption growth while lower levels of inflation would also boost spending.

According to reports from the General Statistics Office (GSO), labour market data for the second quarter of this year showed a decline in youth urban unemployment to 9.8 per cent from 10.6 per cent in the first quarter while overall urban unemployment remained stable at 3.1 per cent.

Vietnam’s unemployment rate is forecast low, at 3.4 per cent of the total labour force in 2019 for all demographic groups, remaining constant from 2018. This level is projected to be retained over medium terms to 2023.

The continued structural shift in manufacturing facilities from China to Vietnam, which is being expedited by uncertainty from the US-China trade war and the signing of the EU-Vietnam Free Trade Agreement on June 30 this year, has also provided a boost to the Vietnamese economy and improves the employment outlook.

Besides, further underpinning the positive consumer outlook is the fact that minimum wage growth continues to increase, albeit at a slower rate.

After a growth of 7.3 per cent and 6.5 per cent recorded in 2017 and 2018 respectively, the National Wage Council has continually increased the minimum wage by average of 5.3 per cent in 2019. In 2019, minimum wages range from VND2.92 million (US$125) to VND4.2 million, compared with VND2.8 million and VND4 million of 2018.

“Consumption of local people, especially the young, has been increasing significantly, given by the rising incomes and enhanced living standards,” Hieu said.

According to Euromonitor, per capita disposable income was at more than VND40 million last year and expects an average growth of 5.9 per cent annually in the 2019-30 period, leading to corresponding growth of consumer spending.

The middle-income class is also increasing rapidly and it was forecast that 49 per cent of households will have an annual disposable income of between $5,000 and $15,000, up from 33.8 per cent in 2018.

Meanwhile, the country’s inflationary pressures remain under control, providing further stimulus for spending.

GSO data showed that the country’s inflation cooled to 2.57 per cent in August 2019, down from 3.52 per cent in August 2018. The rate was the lowest rise for the past three years.

In 2019, inflation is projected to average at 2.9 per cent, buoyed by weak transport inflation due to a drop in average oil prices in the year.

The factors highlighted above are already having a positive impact on retail sales. In the GSO’s data release, retail sales grew by 11.6 per cent in July 2019, up from 11.1 per cent in July 2018. Indicative of an improving outlook over 2019 is the broader uptick in retail sales, with growth of 11.9 per cent average annually over the first seven months of 2019, up from the 10.2 per cent over the same period in 2018.

Analysts from Fitch Solutions Macro Research recently also forecast although slightly cooling this year, private consumption growth in Vietnam would remain robust, expanding by 6.5 per cent in 2019 and picking up further to 6.8 per cent in 2020.

“Retail sales in Vietnam have recorded double-digit growth rates and we expect this to hold over 2019. We highlight Vietnam as one of the most promising consumer markets in Asia Pacific, along with Indonesia, the Philippines, India and China,” Fitch analysts noted.

According to Hieu, local consumption will continually support Vietnam’s economic growth, especially when the global market slows and is becoming volatile.

“Robust domestic consumption will be an important driver for the country’s growth and help reduce dependence on exports,” Hieu said.

CAN THO TO HOST VIETSHRIMP FAIR IN 2020

The information was revealed by Nguyen Viet Thang, President of the Vietnam Fisheries Society and head of the organising board, at a recent press conference on the biennial event.

The VietShrimp 2020 is hoped to host more than 200 booths of domestic and international businesses in the fisheries industry and the shrimp sector. Numerous symposiums will be arranged in the fair, he added.

Focusing on sustainable development of the shrimp industry, the fair will seek to bolster business connections and introduce new farming technologies and advanced models in the hope of raising quality and value of Vietnam’s shrimp sector.

The two previous editions of the event were held in the southern Bac Lieu province, which is home to about 120,000 hectares of shrimp cultivation area.

After continuous declines in the first months of 2019, overall shrimp exports also began to recover in July with an increase of 13.4 percent and reached 334 million USD thanks to businesses’ efforts to boost sales to such major markets as the US, China, and Australia.

Vietnam aims to earn 4.1-4.2 billion USD from shrimp exports this year, higher than the level of 3.6 billion USD recorded in 2018, according to the Directorate of Fisheries under the Ministry of Agriculture and Rural Development.

HCM CITY FAIR BRINGS TOGETHER SUPPORTING INDUSTRIES, MANUFACTURERS

The Sourcing Fair for Supporting Industry with Buyers that opened in HCM City on September 11 seeks to enhance supply chain linkages in supporting industries, enhance direct connections between foreign and other manufacturing firms and Vietnamese parts suppliers.

Nguyen Phuong Dong, deputy director of the city Department of Industry and Trade, said the fair has attracted 26 foreign manufacturing companies such as Samsung, Daeyong Harness, GST Vietnam, Backer Heating, Minamida Vietnam, Hanel PT,  Daeyong Vina, Bosch, Nipro, Panasonic, and Datalogic Vietnam.

They are displaying more than 220 component and part clusters used in the electronics, mechanical, automation, aviation, auto, and medical fields and seeking suppliers for those parts, he said.

More than 70 Vietnamese parts manufacturers in HCM City and elsewhere are also taking part and around 300 business-to-business meetings were arranged between them and buyers, he said.

The SFS will also feature a seminar on “Market opportunities for supporting manufacturing industries” today (September 12) and a study tour of Japanese-owned Semitec Electronic Vietnam Co, Ltd to help local parts makers learn about 5S and Kaizen models.

Dong said SFS was held for the first time last year with 17 foreign companies in the automobile, electronics and mechanical sectors taking part and linking up with 80 Vietnamese supporting industry enterprises.

As part of its efforts to implement Decision 2869 of the city People’s Committee this year on the supporting industry development programme his department organises the annual fair, he said.

The expo is meant to help parts vendors tie up with manufacturing enterprises, helping increase the rate of local parts in products made in Việt Nam, he said.

Ngo Khai Hoan, deputy director of the Ministry of Industry and Trade’s Industry Agency, hailed the department’s efforts to link parts suppliers with product manufacturers.

“SFS is considered a very crucial activity to connect businesses and boost supporting industry growth.”

It helps local parts makers understand the needs of foreign manufacturers and meet their demands, and gradually participate in the global value chain, he added.

Organised by the city Department of Industry and Trade, the Saigon HiTech Park and the HCM City Export Processing and Industrial Zones Authority, the event, which is held at  Convention Centre 272, ends on September 12.

VOV