Market Update Week 02/2024

Chart of the Week: Red Sea Turmoil Shakes Up Global Trade Routes

Source: S&P Global Commodity Insights (spglobal.com)

Crystal Group Plans to Invest an Additional $200 Million to Build Its Sixth Factory in Vietnam

  • Location: Aurora Textile and Garment IP, Ninh Co EZ, Rang Dong Town, Nghia Hung District, Nam Dinh Province
  • The project will be implemented in 2 phases:
    • Phase 1: $60 million with a production capacity of 55 million meters of fabric.
    • Phase 2: $140 million for denim manufacturing.
  • 5 other production facilities in Vietnam: Hai Duong, Hai Phong, Bac Giang, Phu Tho, Binh Duong.

Daiwa House Logistics Trust (DHLT) buys Vietnam logistics asset for $19.9 million

  • Location: D Project Tan Duc 2, Tan Duc IP, Long An Province (Mekong Delta region), which is the hub for cold storage facilities in Vietnam, accounting for 27% of the total stock of cold storage space in the country in 2022.
  • Project position:
    • A built-to-suit cold warehouse that is fully leased for a 20-year term from Oct 2023.
    • The first real estate investment outside of Japan.

Korean Logistics Center in Southern Vietnam

To support South Korean export firms with storage under room or low temperatures:

  • Area: 12,000 m2
  • Storage capacity: 4.3 million pallets of goods per year
  • Investors: Ulsan Port Authority (80%) & Korean logistics firm KCTC (20%)
  • Investment: KRW 18.8 billion (USD 14.3 million)
  • Stages:
    • Dec 2024: Normal temperature cargo
    • Jul 2025: Low-temperature cargo
  • Promotion: 10-15% discounts for Korean SMEs

Vietnam-Laos To Promote Highspeed Rail & Road Connectivity

Lao Prime Minister Sonexay Siphandone paid an official visit to Vietnam on Jan 6 & 7 at the invitation of Vietnamese Prime Minister Pham Minh Chinh. The two leaders agreed to strengthen the two economies including strategic cooperation projects:

  • The Vientiane-Hanoi Expressway: Total 725km with a total investment of about $2.5 billion.
  • The Vung Ang-Vientiane Railway: Total 555km with a total investment of about $5 billion.

Proposed Vietnam-Laos Railway Project to Boost Trade, Connectivity

Nexif Ratch Acquires 30MW Hydropower Plant in Vietnam

  • Project: Minh Luong Hydropower Plant, developed by Vietnamese firm Nam Tien Group, has been in commercial operation since Apr 2018, with a 20-year PPA.
  • Location: Lao Cai Province.
  • Nexif Ratch Energy: A clean energy developer, with stakeholders Nexif Energy (Singapore, 51%) and Ratch Group (Thailand, 49%), operates in Australia, the Philippines, Vietnam, and Thailand, with a portfolio of 07 projects in Vietnam.

Russia Abolishes Import Tariffs on Chicken Eggs

  • The measure became effective on 1 Jan and will be in force until 30 Jun 2024.
  • The tariff waiver applies to shipments of fewer than 1.2 billion eggs.

Prices of eggs in the country have been rising since the beginning of July and ended the year nearly 60% higher than in 2022, according to Russia’s federal statistics Rosstat.

The First USEC Port Powered By 100% Clean Energy

On 5-Jan, the Port of Virginia powered all its terminals with electricity from clean resources and accelerated its goal of becoming carbon-neutral by 2040.

Results: Reduced CO2 emissions by 45% per container, which addressed both scope 1 (equipment emission) and scope 2 (port facilities emission).

Ethiopia Signs A Historic Agreement with Somaliland on Acess to Seaport

  • Ethiopia has agreed with Somaliland, Somalia’s breakaway region, to use the port of Berbera.
  • This is an alternative access to seaport for the landlocked Ethiopia besides the port of Djibouti.

Ethiopia maintained access to a port in Eritrea until the two countries engaged in war from 1998 to 2000. Since then, Ethiopia has shifted much of its commercial activities to Djibouti.