Vietnamese economic growth is anticipated to reach 6.5% this year (Photo: baochinhphu.vn) The projection was made by a research team of the National Economics University at a national scientific conference held on April 25 to release the publication themed "Vietnam's economy in 2021 and prospects for 2022: Macro-economic stability and financial soundness amid the COVID-19 pandemic". Assoc. Prof. Dr. To Trung Thanh, head of the Scientific Management Division under the National University of Economics, said the local economy witnessed unprecedented challenges last year, with its economic growth falling sharply to 2.58%, the lowest recorded over the last two decades, from 2.91% in 2020. He attributed this drop to the severe recession shock in the third quarter of last year caused by the spread of the Delta variant and the nation’s low vaccination rate at the time. According to the latest publication, the Vietnamese economy is anticipated to encounter numerous difficulties ahead this year due to new virus strains, escalating global political instability, and a hike in oil prices. These issues have all threatened global recovery, especially major Vietnamese trading partners such as the United States, the EU, and China, thereby affecting trade and investment in the nation. Furthermore, the governments and central banks of major countries, especially the US, have moved to tighten their monetary policy due to concerns surrounding inflation, which will have an impact on the local economy with monetary policies aimed at supporting economic recovery being narrowed in the future. Moreover, instability risks still exist due to turmoil occurring in the real estate and securities markets, with credit capital flows not being poured into the production sector, thereby leading to unhealthy indicators in the banking sector. Thanh anticipates that Vietnamese economic growth is likely to fulfill the target of 6.5% this year, although the Government's inflation target of less than 4% is not achievable. He duly pointed out that the trend of a hike in the prices of essential goods and gasoline, coupled with the ongoing Russia-Ukraine conflict, have pushed up energy prices to record highs, greatly affecting domestic production costs and exerting great pressure on inflation. Photo: moit.gov.vn However, Thanh emphasised that the new bailout package of economic recovery could potentially help Vietnamese economic growth reach the target of 6.5% as expected. The prime driving force behind economic growth is forecast to come from the external economic sector which will make a great contribution to the production of processed products and export items. Furthermore, the service industry has a chance at strongly recovering this year due to the reopening of the national economy, which will play a crucial role in fulfilling the annual target. Most notably, growth quality this year is also projected at a higher level, with the total factor productivity (TFP) growth and improved labour productivity. Experts advised the Government to focus on ensuring sustainable economic development, effectively adjusting fiscal and monetary policies to avoid risks of macroeconomic instability, and providing timely support for local businesses to recover in the post-pandemic period. Vietnamese exporters to offer advice on tea and coffee exports to Indian market Providing competent advice and dealing with business concerns relating to tea and coffee exports to the Indian market will be touched upon at a consulting session which will be held on April 27 by the Trade Promotion Agency (Vietrade) under the Ministry of Industry and Trade (MoIT), reported the Voice of Vietnam. Vietnamese instant coffee products are highly popular in the Indian market. During the consulting session, Bui Trung Thuong, counselor at the Vietnam Trade Office in India (concurrently Nepal, Bhutan) will give an overview of tea and coffee products in India, issues relating to market access, and the application of regulations, standards and conditions for exporting tea and coffee products to the market. In addition, representatives of agencies, businesses, and importers in India will share some things to know when conducting business in the Indian market. Despite having similar natural conditions, both sides make up markets that can complement each other. With a population of over 1.4 billion, India is widely viewed as a vast consumption market in which Vietnam can export agricultural products to, including tea and coffee. Furthermore, India is one of the largest tea producing and consuming countries in the world. Currently, the growing awareness among Indian consumers of the health and medicinal benefits of green and organic tea variants is also contributing to the growth of the market. Moreover, the increasing spending power of consumers, coupled with the growing online retail channels, is expected to contribute to the overall growth of the Indian tea market moving forward. Bilateral trade turnover between the nation and India has increased rapidly from USD200 million in 2000 to reach more than USD13 billion in 2021. Indeed, just five years on from becoming a comprehensive strategic partnership in 2016, the two countries' trade turnover has doubled, with both sides striving to reach the bilateral trade target of USD15 billion this year. In 2021, for the first time bilateral trade between the nation and India surpassed the USD13 billion mark, equal to USD13.2 billion, up 36.5% compared to the figure of USD9.6 billion recorded in 2020, of which Vietnamese exports to India hit USD6.25 billion, a rise of 20% on-year. According to data compiled by the MoIT, the opening three months of the year saw Vietnamese export turnover to India reach USD1.92 billion, up 12.6% over the same period from last year, whilst the country’s imports from the South Asian nation hit USD2.05 billion. As one of the world's largest tea producers and consumers, India is also a major tea import market globally, with tea imports from India not only being for consumption in the domestic market, but also used for re-export purposes. In relation to coffee, India is the sixth largest coffee producer globally, with the South Asian nation mainly importing coffee from Vietnam, Indonesia, Uganda, and Kenya for processing and re-export. As a result, Vietnamese instant coffee products are highly popular within the Indian market. Nguyen Thi Thu Thuy, deputy director of the Center for Export Support, said that the typical characteristics of the Indian market are seen as a prime opportunity for Vietnamese tea and coffee enterprises to boost exports to the highly lucrative market. Taiwan (China) increases imports of fruit and vegetables from Vietnamese market Vietnam has become the second largest fruit and vegetable supplier to Taiwan (China), with the market share of the product coded HS 07 increasing as part of total Taiwanese imports, reported the Voice of Vietnam according to the Ministry of Industry and Trade. Statistics compiled by the Taiwan Customs Administration indicate that this market imported 49,200 tonnes of fruit and vegetables worth USD53 million during the opening three months of the year, representing a decline of 18.4% in volume and 22.9% in value against the same period from last year. As well as importing from the nation in the reviewed period, Taiwan (China) mainly imported fruit and vegetables coded HS 07 from China and the United States, accounting for 47.9% of their total imports. Most notably, imports of the product from the Vietnamese market reached 8,900 tonnes worth USD8.8 million, an increase of 3.3% in volume and 27.2% in value, with the import proportion from Vietnam also inching up 3.8%. Furthermore, imports from China witnessed an increase of 8.8% in volume and 17.3% in value, while imports from the US suffered a fall of 13.8% in volume and 2.2% in value. Throughout the reviewed period, Taiwan (China) primarily imported onions, shallots, leeks, and other garlic and onion vegetables coded HS 0703 with 12,800 tonnes, worth USD10.5 million, a fall of 29.3% in volume and 63.7% in value against last year’s