BUSINESS IN BRIEF 11/6
Shrimp
exporters move against US extra duties
Scores of
Vietnamese shrimp processors and exporters are working with relevant
agencies, lawyers and shrimp breeders to fight back the US Department of
Commerce (DOC)’s recent levy of anti-subsidy duty on frozen warm-water shrimp
imported from
The DOC’s
preliminary decision on the levy stated that Vietnam’s shrimp exports got the
Government’s subsidies therefore it imposed a 5.08 percent anti-subsidy duty
on products of Minh Phu company and a 7.05 percent rate on Nha Trang Seafood
in particular, and a national 6.07 percent rate on other companies.
Le Van Quang,
Chairman of the Minh Phu company said such duties will take a heavy toll on
seafood businesses while rejecting the DOC’s allegations that the businesses
were subsidised by the Government.
He said Vietnamese
seafood enterprises have to stand on their own feet to secure their
operations, even when seeking bank loans they must manage themselves to get
affordable interest rates.
Meanwhile, a leader
of the southernmost Ca Mau province,
According to the
Vietnam Association of Seafood Exporters and Processors (VASEP), once the
decision takes effect,
The association
added that the move will also adversely affect 600,000 shrimp farmers and
workers across the country.
Earlier on May 31
in a press release, VASEP protested the DOC’s move, calling it unfair and
asking for its reconsideration of the decision.
VASEP General
Secretary Truong Dinh Hoe said the DOC’s decision was only based on
The DOC is
scheduled to make its final decision on the issue on August 10.
Rolls-Royce
eyes
The famous
Rolls-Royce Motor
Cars CEO Torsten Muller-Otvos was speaking in
He added that
Rolls-Royce sold nearly 3.6 million cars last year, including 100 in
He noted that this
year, the company also expects to see significant growth in revenues but it
has not unveiled detailed figures.
A Vietnamese
Ministry of Finance delegation led by Deputy Minister Tran Van Hieu visited
During Deputy
Minister Hieu’s working with Cuban Finance and Pricing Minister Lina Olinda
Pedraza, both sides briefed each other on the socio-economic situation in
their respective countries and shared the results of business and financial
management policies.
Ms Olinda Pedraza
praised the recent developments in the relationship between the two
countries’ financial sectors and affirmed the delegation’s visit will only
deepen the bilateral traditions of fraternity and mutual national
construction.
The Cuban Minister
also summarized recent updates of its socio-economic development model, in
accordance with the resolution adopted at the sixth National Party Congress.
Deputy Minister
Hieu applauded
Finance ministry
officials signed a Memorandum of Understanding establishing 2013’s financial
ministry cooperation program and compared budgetary issues and the financial
management of State-owned enterprises.
Vietnam has emerged
as the Republic of Korea (RoK)’s 4th biggest supplier of exports, with a
US$2.2 billion turnover total for the first four months of this year
representing a year-on-year increase of 35.7 percent.
The Vietnam General
Department of Customs reports that in April alone,
Textiles turnover
hit a record high of US$411.2 million, up 45.37 percent, followed by crude
oil’s US$396.7 million, up 366.2 percent.
Predicted future
increases are expected to make the RoK the fourth largest importer of
Vietnamese textiles products after the
Bilateral trade
turnover reached US$21.675 billion, with more than US$15.956 billion
contributed by
Indian firm
invests US$1.8 billion in Long Phu thermal power plant
India’s Tata Power
Co. Ltd has won a US$1.8 billion contract to develop the thermal power plant
Long Phu 2 in the Mekong Delta province of Soc Trang.
The Indian firm
beat out businesses from the
The Tata group,
“This is a
milestone in a way for
The construction of
the plant is expected to start in 2019. The Tata group will need to complete
financial closure procedures and draw up a power purchase agreement.
In a letter
addressed to Indian Ambassador to Vietnam Ranjit Rae, Tata Power Executive
Director S. Ramakrishnan thanked the Indian envoy for the support that
enabled the company to win the contract so quickly.
Tata Power’s
investment in the Long Phu 2 plant shows its positive assessment of
Turkey promotes
trade ties with Vietnam
Faith Kemal
Ebielioglu—President of the Istanbul Electrical, Electronics, Machinery, and
Information Technology Exporters' Association (TET)—said the event is part of
the association’s activities designed to expand its members’ global reach and
develop cooperative relations in the international market.
Along with
introducing recent advances in the fields of electricity, electronics, and
information technology, the Turkish delegation will survey the Vietnamese
investment environment and encourage trade relations between the two nations’
business communities for mutual benefit.
Vo Tan Thanh, a
branch director of the Vietnam Chamber of Commerce and Industry (VCCI) in
The Governments and
business communities of both nations have been urged to make greater efforts
at future cooperation. An agreement on aviation, promoting investment, and
avoiding double taxation to be signed soon between the two nations will help
further foster bilateral trade ties.
A business forum
between
The forum,
co-organised by the Vietnam Chamber of Commerce and Industry (VCCI) and its
Malaysian counterpart, offered an opportunity for the two business circles to
expand cooperation and seek partnerships.
Addressing the
event, Vice President Nguyen Thi Doan, who is in
She said both
countries have signed a series of cooperative documents, including an
agreement on investment encouragement and protection, an agreement on
economic, scientific and technological cooperation and a trade agreement,
among others.
Malaysian investors
have poured more than US$11.3 billion into over 400 projects in
Vice President Doan
spoke highly of Malaysian investment, affirming that
Mexico
discusses business opportunities with Vietnam
Hundreds of Mexican
business representatives have gathered at a seminar in
Addressing the
seminar, President of the Mexico City Chamber of Commerce, Services and
Tourism (Canaco), Ricardo Navarro Benítez, highlighted the long-term
friendship between
He also praised
The event aimed to
help businesses learn more about
Vietnamese
ambassador to Mexico Le Thanh Tung briefed seminar participants on
Despite the global
economic downturn, two-way trade between Mexico and Vietnam reached US$1.2
billion last year, which was only a small proportion of Vietnam’s total
US$230 billion foreign trade turnover, he emphasized.
Economic and trade
ties between the two countries have not been on a par with their political
relationship due to geographical distance and trading habits with traditional
markets
On behalf of the Vietnamese
Party and State, Ambassador Tung was committed to creating the most
favourable conditions for businesses to strengthen bilateral cooperation for
the benefit of both nations.
Delegates also
raised questions about
Many Mexican
businessmen were interested in traditional Vietnamese customs and praised the
beautiful landscape shown in a photography exhibition on display during the
event.
EC to
announce FTA impact on Vietnam
The European
Commission Directorate General for Trade will meet on June 11 to unveil the
Trade Sustainability Impact Assessment (TSIA) for the EU-Vietnam Free Trade
Agreement (EVFTA).
During the meeting,
EU civil organizations will also present their viewpoints on the influence of
EVFTA negotiations on
High on the agenda
will be an announcement of the EVFTA TISA and an update of the third round of
EVFTA negotiations that took place in
A preliminary
report on the TSIA shows that the agreement will greatly benefit
The European
Commission considers a chapter on trade and sustainable development the core
of the FTA, providing mutual assistance to social development, environmental
protection and economic growth.
Key issues for
sustainable development include establishing effective labour standards and
adhering to the principles of sustainability in the forestry and fishery
sectors.
Jimmy Jackson,
General Manager at Australian Wool Innovation, made the commitment at a press
briefing in
All this creates a
favourable condition for Woolmark to invest and develop fleece wool production
and supply chains in
Currently, there is
no wool spinning plant in
Woolmarkis
investing AUD240,000 in a
Under the project
which began in 2012, Woolmark experts have transferred technology of weaving
and fleece wool production to
Seminar
discusses tourism potential in central Vietnam
A seminar on
developing tourism in
Endowed with long
coastal line, beautiful beaches and an excellent geographical location, the
coastal provinces have great potential for boosting tourism and ensuring
national maritime defence and security.
Tourism is
considered the spearhead economic sector in the central region, which is
improving its infrastructure to attract more domestic and foreign visitors.
Dr. Tran Du Lich,
leader of the central coastal province consultancy group, said that this
region is ripe for developing high-quality tourism services.
However, he said,
compared with other regional countries,
Delegates at the
seminar also discussed strategic measures to develop specialised tourism
products for each locality to increase their competiveness.
Dong Nai
boasts investors from 35 countries, territories
Southern Dong Nai
province has attracted US$567 million in foreign direct investment (FDI) over
the past five months, meeting 61% of its 2013 plan.
According to the
provincial Department of Planning and Investment, 15 of the 34 new projects
in the province are invested by Japanese businesses with combined registered
capital of US$162 million, accounting for 60% of the total registered
capital.
So far, Dong Nai
has licensed 1,343 projects capitalised at US$23.4 billion, of which 1,034
are valid worth more than US$19 billion.
The leading foreign
investors in the province include the
Dong Nai is
prioritising high-tech companies and support industries, particularly those
that are environmentally friendly with high added value and create many jobs
for local people. It has also stopped granting licences to projects that
cause water pollution.
In the current
difficult economic situation, the province is paying special attention to
administrative reforms and training to improve the quality of its labour
force. In addition, it has invested in infrastructure and services to serve
both workers and investors.
The province also
organises regular meetings between businesses and managing agencies in order
to deal with difficulties as quickly as possible.
Quinoa trees can
bear chilly weather, drought, and be grown in barren soil suitable for northern
mountainous localities in
The Hanoi
University of Agriculture and the INIA have developed a pilot project to grow
this crop in the northern mountainous
During a recent
visit to
He said the Chilean
Institute will provide technical assistance to
Quinoa is
considered “gold seed” which contains essential amino acids and is rich in
minerals and vitamins and healthy gluten-free. It is also considered one of
the world’s most balanced and nutritious foods, which was selected by the
National Aeronautics and Space Administration (NASA) for astronauts.
The United Nations
has declared 2013 as International Year of Quinoa.
Major
challenges face Vietnamese tra fish
Vietnamese tra
(Pangasius) fish may no longer be a leading staple in the global market in
the near future because it must now compete with other rivals for the lion’s
share of the market.
Over the past
decade, naturally farmed Tra fish from the Mekong River Delta has emerged as
one of
The volume of
farmed Tra fish has increased by 50 times, surpassing 1 million tonnes
annually. The species has been exported to 142 countries and territories
across the globe, with its export value increasing 65-fold and generating 2%
of
The product is part
and parcel of
Vietnamese Tra fish
is considered an "exclusive" item in the world market, which means
it sells for a high price. However, the Vietnamese product is currently
coping with price gauging by foreign competitors.
The Ministry of
Industry and Trade has admitted that Vietnamese Pangasius is increasingly
losing its global competitiveness due to unhealthy competition among domestic
businesses, anti-dumping lawsuits and poor quality.
The Filipino
Department of Trade and Industry recently approved a US$15.8 million
Pangasius farming project, aiming to earn US$23 million in export revenue by
2016.
The
Indonesia does not
want to lose out to its neighbours and its General Director in charge of
aquaculture under the Ministry of Marine Affairs and Fisheries (MMAF), Slamet
Soebjakto, said that like the Mekong River, the Batanghari River that runs
across the central Indonesian province of Jambi holds great potential for
Pangasius farming, and he wants to turn it into one of the country’s largest
aquaculture centres.
Slamet even
disclosed
Experts say
Mobivi
splashes the cash to underscore brand
E-payment solutions
supplier Mobivi has prepared $10-20 million to enhance online payments in
Ho Chi Minh
City-based Mobivi, founded in 2007, officially launched the new Employee
Credit Card (ECC) in a partnership with
Mobivi CEO Dung Tan
Trung secured that sum for the ECC programme from his company and its three
major investors – global financial investor Experian, Kusto Tiger Fund
Private, and American investment group Unitus Impact.
ECC is an online
banking account tied to merchant services within Mobivi’s network. Participating
companies can use ECC to pay their employees. In addition, the cardholder can
buy products online, pay bills, add money into mobile phone accounts, pay for
taxis, airplane tickets and tours.
Trung said all
employees at any company could register to have an ECC. Almost 20 companies
in
E-commerce is still
less developed in
Collaboration
cited as key for innovation conducive
Almost 97 per cent
of Vietnamese executives see innovation as a strategic priority, according to
2013 GE Global Innovation Barometer.
The research was
commissioned by GE and conducted by StrategyOne between October 22, 2012 and
December 5, 2012. Interviews with the 3,100 senior business executives were
conducted by telephone across 25 countries.
Notably,
collaboration and partnership was reported as key to successful innovation by
92 per cent of the respondents, higher than the global average. The report
also said 44 per cent of Vietnamese respondents, a result higher than the
global average of 30 per cent, felt that innovation would result in greater
competition, making the overall environment more challenging.
The annual Global
Innovation Barometer which collates the opinions of senior executives who are
actively involved in strategic decision-making processes, especially in
innovation strategy, is in its third year and included
“As
The study reports
that 72 per cent of Vietnamese business executives consider innovation as a
key strategy while global average only shows 44 per cent. Vietnamese
executives identified that the main types of innovation that would drive
performance are: the improvement of existing products and services (82 per
cent), the development of entirely new product (58 per cent) and development
of more sustainable, eco-friendly products and services (57 per cent - 9
points higher than the global average).
Vietnamese
executives recognise the importance of being able to innovate successfully
and have identified key abilities believed to be crucial in order to do so.
At the top of the list, 79 per cent executives identified the need to attract
and retain innovative people. Also rated vital was being able to identify and
work collaboratively with business partners (78 per cent). This seems to be a
specific area of interest from Vietnamese businesses as that result is 12
points higher than the global average. The ability to understand customers
and anticipate market evolutions was rated important by 75 per cent of those
surveyed.
It is also important
to note that more than half of Vietnamese respondents (63 per cent) believe
that to innovate successfully; businesses need to allocate a budget for
innovative activities. That total was 9 points higher than the global
average.
Overall the
framework for innovation in
On the more
positive side, Vietnamese business executives report higher satisfaction than
the global average regarding a belief that society as a whole is supportive
of innovation and that there is an appetite for innovation among young
generations. Also there is higher satisfaction with the belief that society
as a whole is accepting of taking risks as part of the innovation process and
that the general public is convinced of the value innovation can bring to
their day-to-day life.
Vietnamese
executives however felt less positively that it was easy for companies to
partner with universities for their research & development needs. 65 per
cent of executives think that government’s support for innovation is not
efficiently organised and coordinated. Among the most pressing priorities, 79
per cent of
Collaborative innovation
has been recognised globally as a key element in ensuring the success of a
business, especially in emerging markets such as
Accordingly, 89 per
cent of Vietnamese respondents reported that their businesses are
increasingly looking at collaborative innovation and over 75 per cent of
Vietnamese respondents in 2013 believe that small and medium sized
enterprises and individuals can be as innovative as large companies on par
with global average. This response was set on the back of strong views that
businesses would be more successful at innovating when working with others
rather than if the company were to venture alone (92 per cent).
HCM City
helps boost development in Central Highlands
A cooperation
programme between
According to the
Steering Committee for the
There are now 141
businesses from
In the reviewed
period, Lam Dong province has taken the list in terms of attracting
investment from the city, with 212 projects, focusing on tourism,
agriculture, high technology and trade.
Under the
programme,
From now to 2015,
the city will continue implementing 10 programmes on investment promotion,
trade, health, education-training, information technology, culture, sports
and tourism in the region.
Spotlight
falls on indolent transport contractors
Transport
infrastructure contractors’ much maligned performances are coming into focus.
Performance
appraisals of contractors working on transport infrastructure recently
released by the Ministry of Transport (MoT) gave positive assessments to 82
per cent of 352 firms handling state-funded projects in 2012.
Meanwhile 13 per
cent, or 47 contractors, were rated as below average and 5 per cent or 18
contractors judged as average.
Tran Xuan Sanh,
chief of the MoT’s Transport Engineering Construction and Quality Management
Bureau, said the MoT would use the appraisals as a reference when selecting
contractors for future projects.
“This is one of the
MoT priority programmes to better investment quality of transport projects,”
Sanh said.
MoT Deputy Minister
Nguyen Ngoc Dong said project developers and project management units would
be held responsible if they failed to improve the capacity of underperforming
contractors.
“If in the
following year, below-average contractors could not ameliorate their capacity
or even be downgraded, relevant developers and project management units would
be appraised of their task fulfillment level,” said Dong.
Earlier, Minister
of Transport Dinh La Thang enacted Instruction 05/CT-BGTVT to strengthen the
appraisal process, including reporting, summarising and announcing appraisal
outcomes relevant to the performance of project developers, project
management units, consulting and construction contractors.
Some developers and
project management units, who have proven less serious in appraisal and
reporting work, got MoT warnings.
Central
bank mulls over new regulations on cash payment
The State Bank of
The current decree
provides for cash payment limits, cash transaction charges and withdrawals of
Applicable entities
include: Payment service-providing organizations, state treasuries; State
budget-funded agencies and organizations, and organizations using state
capital; and other organizations and individuals having cash transactions
with payment service-providing organizations.
State budget-funded
agencies and organizations and organizations using state capital shall make
non-cash payments to beneficiaries, except for those payments permitted to be
made in cash via state treasuries.
If beneficiaries
have no accounts at payment service-providing organizations or state
treasuries, state budged-funded agencies and organizations and organizations
using state capital may pay them cash.
Payment
service-providing organizations and state treasuries may agree with
organizations and individuals on the withdrawal of cash in large quantity and
on the advance notification of such withdrawal.
Garment
sector changes direction
The development
strategy for the domestic garment and textile industry over the next 10 to 20
years should be adjusted to meet the needs of global integration.
This was the main
topic discussed at a conference collecting ideas to adjust the strategy,
which was first approved in 2008.
Deputy minister of
Industry and Trade Ho Thi Kim Thoa said the sector had contributed 8 per cent
of GDP yearly - and taken the lead in the country's exports with turnover of
US$17 billion last year.
Thoa said
She said the sector's
development has brought positive changes to the country's socio-economic
development as well as contributing to the shift from agriculture to
industry.
However, she said
while most workers in the sector came from rural areas, their incomes were
not enough to sustain them or their families in the cities, where the work
existed.
This was why there
should be a strategy to shift operations from urban to rural areas to create
favourable conditions for people in remote regions.
A representative
from the Garment and Textile Institute said
The representative
said the domestic sector had to import most of its materials, machines and
chemicals, despite the number of garment businesses.
For example,
domestic fabric output met only 3-4 per cent of the country's demand while
accessories met 45-67 per cent.
In addition, the sector
faced weak supply chains, low added value and a lack of skilled workers and
marketing strategies.
The sector aims to
become a key export industry with famous brand names in the world market by
2020.
Accordingly, export
turnover is expected to be $31-32 billion by 2020 and up to $60-65 billion by
2030.
Le Tien Truong,
vice chairman of the Viet Nam Textile and Garment Association, said the
sector should prepare to take advantage of the Trans-Pacific Strategy
Economic Partnership (TPP) which would come into effect next year.
Truong said if
businesses had been active in using domestic raw materials, they would be
given tax preferences when the pact came into effects.
Experts at the
conference proposed the industry focus on building markets and brand names,
management, technology transfer, developing support industries, human
resources and finance.
The strategy does
not encourage establishment of garment and textile factories in Ha Noi and
HCM City, which are being set aside as centres for design and supplying
materials and trade.
It plans to provide
investment for the sector of VND81.5 trillion ($3.9 billion) from 2011-15 and
VND134 trillion ($6.4 billion) from 2016-20.
Chinese
goods flood Vietnamese market
Many experts warn
the lack of technical barriers will create a “flat world” for Chinese goods,
placing domestically manufactured products under intense pressure.
In the first four
months of this year,
Dao Ngoc Chuong,
Deputy Head of the Ministry of Industry and Trade’s Asia-Pacific Department,
says most items imported into Vietnam were for industrial production and
major contractors turned out to be Chinese. Meanwhile, export earnings from
Economist Vo Tri
Thanh is seriously concerned about how could Vietnamese small and
medium-sized enterprises become less dependent on materials imported from
Many experts argue
that investing more in
Thanh says that
once tariffs are removed as required during recent negotiations for the free
trade agreements (FTA),
Many cases of low
quality Chinese goods into
Vu Kim Hanh,
President of Vietnamese High Quality Product Business Association, says there
is no denying that a huge volume of Chinese agricultural and seafood products
have been imported into
An official from
the Ministry of Agriculture and Rural Development acknowledges the negative
impact of illegal Chinese imports but says it’s no easy task to control smuggling
routes.
Another official
from the Ministry of Industry and Trade official says as central agencies are
facing staff shortage, local authorities must shoulder anti-trafficking
responsibility, too.
Unhealthy
competition increasingly sophisticated
To corner the
market, not a few businesses are resorting to unhealthy or even illegal
competition.
According to the
General Department of Taxation statistics, there are more than 9,000 foreign
directed investment (FDI) businesses operating in
However, not a few
are deliberately raising the trading values of input materials, products, and
services to create a “fake loss real profit” phenomenon and avoid tax
liability. Many domestic businesses had to withdraw from joint ventures,
which have been transformed later into 100 percent foreign-invested
companies.
Such hard facts not
only reduce corporate income tax revenue but directly affect the performance
of domestic businesses.
Vietnam Beer,
Alcohol, and Beverage Association President Nguyen Van Viet says healthy
market competition can fuel mutual development and benefits, but unhealthy
competition only drives a wedge between businesses, damaging trademarks and
reducing consumer trust.
Viet emphasizes
that unhealthy competitive practices violate consumer rights to enjoy freedom
of choice.
Former Deputy Trade
Minister Luong Van Tu says the majority of FDI businesses operate by
Vietnamese law, only some seek to reduce their tax burdens by claiming to
suffer losses from price transfer. To ensure healthy competition,
Tu says defending
consume rights is one way of ensuring a healthy and equitable business
environment.
Tran Anh Son,
deputy director of the Ministry of Industry and Trade’s Competition
Management Department, says underhanded competitive practices are becoming
increasingly sophisticated. Domestic businesses, customers, and authorities
must unite against unethical competition.
As economists put
it, there must be drastic measures to crack down on those businesses
violating or circumventing the Competition Law. Everyone is responsible for making
the business environment ever healthier.
Apartment
complex project receives construction credit
The Bank for
Investment and Development of Viet Nam on Tuesday granted a credit of VND1.8
trillion (US$86 million) to Duc Khai property company to fulfill the Era Town
residential complex in Phu My Ward, District 7 in HCM City.
According to the
Sai Gon Giai Phong (Liberated Sai Gon) daily, the VND4.7 trillion ($226
million) complex, which covers an area of 110,000sq.m, embraces 10 blocks and
houses 3,000 apartments and several trade centres.
Upon completion,
the investor will have to set aside many apartments for a resettlement scheme
by the city's People's Committee. The other apartments will be for sale.-
Footwear
export returns up 11.4% to $3.1b
Last month alone,
export turnover reached $750 million due to the stability of traditional
export markets and increasing orders from new importers.
In the first four
months of the year, the industry enjoyed high export turnover from its
traditional markets. The
Shoe producers had
stable orders, with many big enterprises receiving orders for up to the third
quarter.
According to the
Viet Nam Leather and Footwear Association (LEFASO), the Trans-Pacific
Partnership Agreement (TPP) negotiations would bring about opportunities for
the Vietnamese leather and footwear industry to penetrate the large market.
The association
added that
This would help
Vietnamese shoe enterprises to increase their competitiveness over other big
shoe exporters that were not TPP members.
In addition, the
products would be subject to Generalised System of Preferences (GSP) taxes in
the EU market from the beginning of next year.
EU taxes would be
zero per cent when the Free Trade Agreement (FTA) between
Several British and
German shoe importers, therefore, have been searching for business
opportunities in
However, the
association said the TPP would also bring about challenges for
Domestic businesses
have a low localisation rate of 40 per cent, as the industry depends highly
on imported materials.
The Ministry of
Industry and Trade encouraged footwear businesses to increase their
investment in material production, modern and environmentally friendly
technologies.
The country aimed
to reach an export turnover of $9.7 billion this year, up 10 per cent over
last year. Shoe exports are expected to gain $8 billion.
It also aims by
2020 to be one of the world's top-five producers and exporters of footwear.
Footwear
manufacturers from
Panjit Pisawong,
executive director of
The Thai trade
official was speaking at the
The delegation
consists of government delegates and 30 members of the Association of Thai
Footwear Industrial Promotion.
"
She said
Diep Thanh Kiet,
vice chairman of the Viet Nam Leather and Footwear Association, said
The forum was
organised by the Thai Ministry of Commerce's Department of Foreign Trade in
collaboration with the Association of Thai Footwear Industrial Promotion and
the Viet Nam Chamber of Commerce and Industry.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
BUSINESS
IN BRIEF 11/6
Shrimp
exporters move against US extra duties
Scores of
Vietnamese shrimp processors and exporters are working with relevant
agencies, lawyers and shrimp breeders to fight back the US Department of
Commerce (DOC)’s recent levy of anti-subsidy duty on frozen warm-water shrimp
imported from
The DOC’s
preliminary decision on the levy stated that Vietnam’s shrimp exports got the
Government’s subsidies therefore it imposed a 5.08 percent anti-subsidy duty
on products of Minh Phu company and a 7.05 percent rate on Nha Trang Seafood
in particular, and a national 6.07 percent rate on other companies.
Le Van Quang,
Chairman of the Minh Phu company said such duties will take a heavy toll on
seafood businesses while rejecting the DOC’s allegations that the businesses
were subsidised by the Government.
He said Vietnamese
seafood enterprises have to stand on their own feet to secure their
operations, even when seeking bank loans they must manage themselves to get
affordable interest rates.
Meanwhile, a leader
of the southernmost Ca Mau province,
According to the
Vietnam Association of Seafood Exporters and Processors (VASEP), once the
decision takes effect,
The association
added that the move will also adversely affect 600,000 shrimp farmers and
workers across the country.
Earlier on May 31
in a press release, VASEP protested the DOC’s move, calling it unfair and
asking for its reconsideration of the decision.
VASEP General
Secretary Truong Dinh Hoe said the DOC’s decision was only based on
The DOC is
scheduled to make its final decision on the issue on August 10.
Rolls-Royce
eyes
The famous
Rolls-Royce Motor
Cars CEO Torsten Muller-Otvos was speaking in
He added that
Rolls-Royce sold nearly 3.6 million cars last year, including 100 in
He noted that this
year, the company also expects to see significant growth in revenues but it
has not unveiled detailed figures.
A Vietnamese
Ministry of Finance delegation led by Deputy Minister Tran Van Hieu visited
During Deputy
Minister Hieu’s working with Cuban Finance and Pricing Minister Lina Olinda
Pedraza, both sides briefed each other on the socio-economic situation in
their respective countries and shared the results of business and financial
management policies.
Ms Olinda Pedraza
praised the recent developments in the relationship between the two
countries’ financial sectors and affirmed the delegation’s visit will only
deepen the bilateral traditions of fraternity and mutual national
construction.
The Cuban Minister
also summarized recent updates of its socio-economic development model, in
accordance with the resolution adopted at the sixth National Party Congress.
Deputy Minister
Hieu applauded
Finance ministry
officials signed a Memorandum of Understanding establishing 2013’s financial
ministry cooperation program and compared budgetary issues and the financial
management of State-owned enterprises.
Vietnam has emerged
as the Republic of Korea (RoK)’s 4th biggest supplier of exports, with a
US$2.2 billion turnover total for the first four months of this year
representing a year-on-year increase of 35.7 percent.
The Vietnam General
Department of Customs reports that in April alone,
Textiles turnover
hit a record high of US$411.2 million, up 45.37 percent, followed by crude
oil’s US$396.7 million, up 366.2 percent.
Predicted future
increases are expected to make the RoK the fourth largest importer of
Vietnamese textiles products after the
Bilateral trade
turnover reached US$21.675 billion, with more than US$15.956 billion
contributed by
Indian firm
invests US$1.8 billion in Long Phu thermal power plant
India’s Tata Power
Co. Ltd has won a US$1.8 billion contract to develop the thermal power plant
Long Phu 2 in the Mekong Delta province of Soc Trang.
The Indian firm
beat out businesses from the
The Tata group,
“This is a milestone
in a way for
The construction of
the plant is expected to start in 2019. The Tata group will need to complete
financial closure procedures and draw up a power purchase agreement.
In a letter
addressed to Indian Ambassador to Vietnam Ranjit Rae, Tata Power Executive
Director S. Ramakrishnan thanked the Indian envoy for the support that
enabled the company to win the contract so quickly.
Tata Power’s
investment in the Long Phu 2 plant shows its positive assessment of
Turkey
promotes trade ties with Vietnam
Faith Kemal
Ebielioglu—President of the Istanbul Electrical, Electronics, Machinery, and
Information Technology Exporters' Association (TET)—said the event is part of
the association’s activities designed to expand its members’ global reach and
develop cooperative relations in the international market.
Along with
introducing recent advances in the fields of electricity, electronics, and
information technology, the Turkish delegation will survey the Vietnamese
investment environment and encourage trade relations between the two nations’
business communities for mutual benefit.
Vo Tan Thanh, a
branch director of the Vietnam Chamber of Commerce and Industry (VCCI) in
The Governments and
business communities of both nations have been urged to make greater efforts
at future cooperation. An agreement on aviation, promoting investment, and
avoiding double taxation to be signed soon between the two nations will help
further foster bilateral trade ties.
A business forum
between
The forum,
co-organised by the Vietnam Chamber of Commerce and Industry (VCCI) and its
Malaysian counterpart, offered an opportunity for the two business circles to
expand cooperation and seek partnerships.
Addressing the
event, Vice President Nguyen Thi Doan, who is in
She said both
countries have signed a series of cooperative documents, including an agreement
on investment encouragement and protection, an agreement on economic,
scientific and technological cooperation and a trade agreement, among others.
Malaysian investors
have poured more than US$11.3 billion into over 400 projects in
Vice President Doan
spoke highly of Malaysian investment, affirming that
Mexico
discusses business opportunities with Vietnam
Hundreds of Mexican
business representatives have gathered at a seminar in
Addressing the
seminar, President of the Mexico City Chamber of Commerce, Services and
Tourism (Canaco), Ricardo Navarro Benítez, highlighted the long-term
friendship between
He also praised
The event aimed to
help businesses learn more about
Vietnamese
ambassador to Mexico Le Thanh Tung briefed seminar participants on
Despite the global
economic downturn, two-way trade between Mexico and Vietnam reached US$1.2
billion last year, which was only a small proportion of Vietnam’s total
US$230 billion foreign trade turnover, he emphasized.
Economic and trade
ties between the two countries have not been on a par with their political
relationship due to geographical distance and trading habits with traditional
markets
On behalf of the
Vietnamese Party and State, Ambassador Tung was committed to creating the
most favourable conditions for businesses to strengthen bilateral cooperation
for the benefit of both nations.
Delegates also
raised questions about
Many Mexican
businessmen were interested in traditional Vietnamese customs and praised the
beautiful landscape shown in a photography exhibition on display during the
event.
EC to
announce FTA impact on Vietnam
The European
Commission Directorate General for Trade will meet on June 11 to unveil the
Trade Sustainability Impact Assessment (TSIA) for the EU-Vietnam Free Trade
Agreement (EVFTA).
During the meeting,
EU civil organizations will also present their viewpoints on the influence of
EVFTA negotiations on
High on the agenda
will be an announcement of the EVFTA TISA and an update of the third round of
EVFTA negotiations that took place in
A preliminary
report on the TSIA shows that the agreement will greatly benefit
The European
Commission considers a chapter on trade and sustainable development the core
of the FTA, providing mutual assistance to social development, environmental
protection and economic growth.
Key issues for
sustainable development include establishing effective labour standards and
adhering to the principles of sustainability in the forestry and fishery
sectors.
Jimmy Jackson,
General Manager at Australian Wool Innovation, made the commitment at a press
briefing in
All this creates a
favourable condition for Woolmark to invest and develop fleece wool
production and supply chains in
Currently, there is
no wool spinning plant in
Woolmarkis
investing AUD240,000 in a
Under the project
which began in 2012, Woolmark experts have transferred technology of weaving
and fleece wool production to
Seminar
discusses tourism potential in central Vietnam
A seminar on
developing tourism in
Endowed with long
coastal line, beautiful beaches and an excellent geographical location, the
coastal provinces have great potential for boosting tourism and ensuring
national maritime defence and security.
Tourism is
considered the spearhead economic sector in the central region, which is
improving its infrastructure to attract more domestic and foreign visitors.
Dr. Tran Du Lich,
leader of the central coastal province consultancy group, said that this
region is ripe for developing high-quality tourism services.
However, he said,
compared with other regional countries,
Delegates at the
seminar also discussed strategic measures to develop specialised tourism
products for each locality to increase their competiveness.
Dong Nai
boasts investors from 35 countries, territories
Southern Dong Nai
province has attracted US$567 million in foreign direct investment (FDI) over
the past five months, meeting 61% of its 2013 plan.
According to the
provincial Department of Planning and Investment, 15 of the 34 new projects
in the province are invested by Japanese businesses with combined registered
capital of US$162 million, accounting for 60% of the total registered
capital.
So far, Dong Nai
has licensed 1,343 projects capitalised at US$23.4 billion, of which 1,034
are valid worth more than US$19 billion.
The leading foreign
investors in the province include the
Dong Nai is
prioritising high-tech companies and support industries, particularly those
that are environmentally friendly with high added value and create many jobs
for local people. It has also stopped granting licences to projects that
cause water pollution.
In the current
difficult economic situation, the province is paying special attention to
administrative reforms and training to improve the quality of its labour
force. In addition, it has invested in infrastructure and services to serve
both workers and investors.
The province also
organises regular meetings between businesses and managing agencies in order
to deal with difficulties as quickly as possible.
Quinoa trees can
bear chilly weather, drought, and be grown in barren soil suitable for
northern mountainous localities in
The Hanoi
University of Agriculture and the INIA have developed a pilot project to grow
this crop in the northern mountainous
During a recent
visit to
He said the Chilean
Institute will provide technical assistance to
Quinoa is
considered “gold seed” which contains essential amino acids and is rich in
minerals and vitamins and healthy gluten-free. It is also considered one of
the world’s most balanced and nutritious foods, which was selected by the
National Aeronautics and Space Administration (NASA) for astronauts.
The United Nations
has declared 2013 as International Year of Quinoa.
Major challenges
face Vietnamese tra fish
Vietnamese tra
(Pangasius) fish may no longer be a leading staple in the global market in
the near future because it must now compete with other rivals for the lion’s
share of the market.
Over the past
decade, naturally farmed Tra fish from the Mekong River Delta has emerged as
one of
The volume of
farmed Tra fish has increased by 50 times, surpassing 1 million tonnes
annually. The species has been exported to 142 countries and territories across
the globe, with its export value increasing 65-fold and generating 2% of
The product is part
and parcel of
Vietnamese Tra fish
is considered an "exclusive" item in the world market, which means
it sells for a high price. However, the Vietnamese product is currently
coping with price gauging by foreign competitors.
The Ministry of
Industry and Trade has admitted that Vietnamese Pangasius is increasingly
losing its global competitiveness due to unhealthy competition among domestic
businesses, anti-dumping lawsuits and poor quality.
The Filipino
Department of Trade and Industry recently approved a US$15.8 million
Pangasius farming project, aiming to earn US$23 million in export revenue by
2016.
The
Indonesia does not
want to lose out to its neighbours and its General Director in charge of
aquaculture under the Ministry of Marine Affairs and Fisheries (MMAF), Slamet
Soebjakto, said that like the Mekong River, the Batanghari River that runs
across the central Indonesian province of Jambi holds great potential for
Pangasius farming, and he wants to turn it into one of the country’s largest
aquaculture centres.
Slamet even
disclosed
Experts say
Mobivi
splashes the cash to underscore brand
E-payment solutions
supplier Mobivi has prepared $10-20 million to enhance online payments in
Ho Chi Minh
City-based Mobivi, founded in 2007, officially launched the new Employee
Credit Card (ECC) in a partnership with
Mobivi CEO Dung Tan
Trung secured that sum for the ECC programme from his company and its three
major investors – global financial investor Experian, Kusto Tiger Fund
Private, and American investment group Unitus Impact.
ECC is an online
banking account tied to merchant services within Mobivi’s network.
Participating companies can use ECC to pay their employees. In addition, the
cardholder can buy products online, pay bills, add money into mobile phone
accounts, pay for taxis, airplane tickets and tours.
Trung said all
employees at any company could register to have an ECC. Almost 20 companies
in
E-commerce is still
less developed in
Collaboration
cited as key for innovation conducive
Almost 97 per cent
of Vietnamese executives see innovation as a strategic priority, according to
2013 GE Global Innovation Barometer.
The research was
commissioned by GE and conducted by StrategyOne between October 22, 2012 and
December 5, 2012. Interviews with the 3,100 senior business executives were
conducted by telephone across 25 countries.
Notably,
collaboration and partnership was reported as key to successful innovation by
92 per cent of the respondents, higher than the global average. The report
also said 44 per cent of Vietnamese respondents, a result higher than the
global average of 30 per cent, felt that innovation would result in greater
competition, making the overall environment more challenging.
The annual Global
Innovation Barometer which collates the opinions of senior executives who are
actively involved in strategic decision-making processes, especially in
innovation strategy, is in its third year and included
“As
The study reports
that 72 per cent of Vietnamese business executives consider innovation as a
key strategy while global average only shows 44 per cent. Vietnamese
executives identified that the main types of innovation that would drive
performance are: the improvement of existing products and services (82 per
cent), the development of entirely new product (58 per cent) and development
of more sustainable, eco-friendly products and services (57 per cent - 9
points higher than the global average).
Vietnamese
executives recognise the importance of being able to innovate successfully
and have identified key abilities believed to be crucial in order to do so.
At the top of the list, 79 per cent executives identified the need to attract
and retain innovative people. Also rated vital was being able to identify and
work collaboratively with business partners (78 per cent). This seems to be a
specific area of interest from Vietnamese businesses as that result is 12
points higher than the global average. The ability to understand customers
and anticipate market evolutions was rated important by 75 per cent of those
surveyed.
It is also
important to note that more than half of Vietnamese respondents (63 per cent)
believe that to innovate successfully; businesses need to allocate a budget
for innovative activities. That total was 9 points higher than the global
average.
Overall the
framework for innovation in
On the more
positive side, Vietnamese business executives report higher satisfaction than
the global average regarding a belief that society as a whole is supportive
of innovation and that there is an appetite for innovation among young
generations. Also there is higher satisfaction with the belief that society
as a whole is accepting of taking risks as part of the innovation process and
that the general public is convinced of the value innovation can bring to
their day-to-day life.
Vietnamese
executives however felt less positively that it was easy for companies to
partner with universities for their research & development needs. 65 per
cent of executives think that government’s support for innovation is not
efficiently organised and coordinated. Among the most pressing priorities, 79
per cent of
Collaborative
innovation has been recognised globally as a key element in ensuring the
success of a business, especially in emerging markets such as
Accordingly, 89 per
cent of Vietnamese respondents reported that their businesses are
increasingly looking at collaborative innovation and over 75 per cent of
Vietnamese respondents in 2013 believe that small and medium sized
enterprises and individuals can be as innovative as large companies on par
with global average. This response was set on the back of strong views that
businesses would be more successful at innovating when working with others
rather than if the company were to venture alone (92 per cent).
HCM City
helps boost development in Central Highlands
A cooperation
programme between
According to the
Steering Committee for the
There are now 141
businesses from
In the reviewed
period, Lam Dong province has taken the list in terms of attracting
investment from the city, with 212 projects, focusing on tourism, agriculture,
high technology and trade.
Under the
programme,
From now to 2015,
the city will continue implementing 10 programmes on investment promotion,
trade, health, education-training, information technology, culture, sports
and tourism in the region.
Spotlight
falls on indolent transport contractors
Transport
infrastructure contractors’ much maligned performances are coming into focus.
Performance
appraisals of contractors working on transport infrastructure recently
released by the Ministry of Transport (MoT) gave positive assessments to 82
per cent of 352 firms handling state-funded projects in 2012.
Meanwhile 13 per
cent, or 47 contractors, were rated as below average and 5 per cent or 18
contractors judged as average.
Tran Xuan Sanh,
chief of the MoT’s Transport Engineering Construction and Quality Management
Bureau, said the MoT would use the appraisals as a reference when selecting
contractors for future projects.
“This is one of the
MoT priority programmes to better investment quality of transport projects,”
Sanh said.
MoT Deputy Minister
Nguyen Ngoc Dong said project developers and project management units would
be held responsible if they failed to improve the capacity of underperforming
contractors.
“If in the
following year, below-average contractors could not ameliorate their capacity
or even be downgraded, relevant developers and project management units would
be appraised of their task fulfillment level,” said Dong.
Earlier, Minister
of Transport Dinh La Thang enacted Instruction 05/CT-BGTVT to strengthen the
appraisal process, including reporting, summarising and announcing appraisal
outcomes relevant to the performance of project developers, project management
units, consulting and construction contractors.
Some developers and
project management units, who have proven less serious in appraisal and
reporting work, got MoT warnings.
Central
bank mulls over new regulations on cash payment
The State Bank of
The current decree
provides for cash payment limits, cash transaction charges and withdrawals of
Applicable entities
include: Payment service-providing organizations, state treasuries; State
budget-funded agencies and organizations, and organizations using state
capital; and other organizations and individuals having cash transactions
with payment service-providing organizations.
State budget-funded
agencies and organizations and organizations using state capital shall make
non-cash payments to beneficiaries, except for those payments permitted to be
made in cash via state treasuries.
If beneficiaries
have no accounts at payment service-providing organizations or state
treasuries, state budged-funded agencies and organizations and organizations
using state capital may pay them cash.
Payment
service-providing organizations and state treasuries may agree with
organizations and individuals on the withdrawal of cash in large quantity and
on the advance notification of such withdrawal.
Garment
sector changes direction
The development
strategy for the domestic garment and textile industry over the next 10 to 20
years should be adjusted to meet the needs of global integration.
This was the main
topic discussed at a conference collecting ideas to adjust the strategy,
which was first approved in 2008.
Deputy minister of Industry
and Trade Ho Thi Kim Thoa said the sector had contributed 8 per cent of GDP
yearly - and taken the lead in the country's exports with turnover of US$17
billion last year.
Thoa said
She said the
sector's development has brought positive changes to the country's
socio-economic development as well as contributing to the shift from
agriculture to industry.
However, she said
while most workers in the sector came from rural areas, their incomes were
not enough to sustain them or their families in the cities, where the work
existed.
This was why there
should be a strategy to shift operations from urban to rural areas to create
favourable conditions for people in remote regions.
A representative
from the Garment and Textile Institute said
The representative
said the domestic sector had to import most of its materials, machines and
chemicals, despite the number of garment businesses.
For example,
domestic fabric output met only 3-4 per cent of the country's demand while
accessories met 45-67 per cent.
In addition, the
sector faced weak supply chains, low added value and a lack of skilled
workers and marketing strategies.
The sector aims to
become a key export industry with famous brand names in the world market by
2020.
Accordingly, export
turnover is expected to be $31-32 billion by 2020 and up to $60-65 billion by
2030.
Le Tien Truong,
vice chairman of the Viet Nam Textile and Garment Association, said the
sector should prepare to take advantage of the Trans-Pacific Strategy
Economic Partnership (TPP) which would come into effect next year.
Truong said if
businesses had been active in using domestic raw materials, they would be
given tax preferences when the pact came into effects.
Experts at the
conference proposed the industry focus on building markets and brand names,
management, technology transfer, developing support industries, human
resources and finance.
The strategy does
not encourage establishment of garment and textile factories in Ha Noi and
HCM City, which are being set aside as centres for design and supplying
materials and trade.
It plans to provide
investment for the sector of VND81.5 trillion ($3.9 billion) from 2011-15 and
VND134 trillion ($6.4 billion) from 2016-20.
Chinese
goods flood Vietnamese market
Many experts warn
the lack of technical barriers will create a “flat world” for Chinese goods,
placing domestically manufactured products under intense pressure.
In the first four
months of this year,
Dao Ngoc Chuong,
Deputy Head of the Ministry of Industry and Trade’s Asia-Pacific Department,
says most items imported into Vietnam were for industrial production and
major contractors turned out to be Chinese. Meanwhile, export earnings from
Economist Vo Tri
Thanh is seriously concerned about how could Vietnamese small and
medium-sized enterprises become less dependent on materials imported from
Many experts argue
that investing more in
Thanh says that
once tariffs are removed as required during recent negotiations for the free
trade agreements (FTA),
Many cases of low
quality Chinese goods into
Vu Kim Hanh,
President of Vietnamese High Quality Product Business Association, says there
is no denying that a huge volume of Chinese agricultural and seafood products
have been imported into
An official from
the Ministry of Agriculture and Rural Development acknowledges the negative
impact of illegal Chinese imports but says it’s no easy task to control
smuggling routes.
Another official
from the Ministry of Industry and Trade official says as central agencies are
facing staff shortage, local authorities must shoulder anti-trafficking
responsibility, too.
Unhealthy
competition increasingly sophisticated
To corner the
market, not a few businesses are resorting to unhealthy or even illegal
competition.
According to the
General Department of Taxation statistics, there are more than 9,000 foreign
directed investment (FDI) businesses operating in
However, not a few
are deliberately raising the trading values of input materials, products, and
services to create a “fake loss real profit” phenomenon and avoid tax
liability. Many domestic businesses had to withdraw from joint ventures,
which have been transformed later into 100 percent foreign-invested
companies.
Such hard facts not
only reduce corporate income tax revenue but directly affect the performance
of domestic businesses.
Vietnam Beer,
Alcohol, and Beverage Association President Nguyen Van Viet says healthy
market competition can fuel mutual development and benefits, but unhealthy
competition only drives a wedge between businesses, damaging trademarks and
reducing consumer trust.
Viet emphasizes
that unhealthy competitive practices violate consumer rights to enjoy freedom
of choice.
Former Deputy Trade
Minister Luong Van Tu says the majority of FDI businesses operate by
Vietnamese law, only some seek to reduce their tax burdens by claiming to
suffer losses from price transfer. To ensure healthy competition,
Tu says defending
consume rights is one way of ensuring a healthy and equitable business
environment.
Tran Anh Son,
deputy director of the Ministry of Industry and Trade’s Competition
Management Department, says underhanded competitive practices are becoming
increasingly sophisticated. Domestic businesses, customers, and authorities
must unite against unethical competition.
As economists put
it, there must be drastic measures to crack down on those businesses
violating or circumventing the Competition Law. Everyone is responsible for
making the business environment ever healthier.
Apartment
complex project receives construction credit
The Bank for
Investment and Development of Viet Nam on Tuesday granted a credit of VND1.8
trillion (US$86 million) to Duc Khai property company to fulfill the Era Town
residential complex in Phu My Ward, District 7 in HCM City.
According to the
Sai Gon Giai Phong (Liberated Sai Gon) daily, the VND4.7 trillion ($226
million) complex, which covers an area of 110,000sq.m, embraces 10 blocks and
houses 3,000 apartments and several trade centres.
Upon completion,
the investor will have to set aside many apartments for a resettlement scheme
by the city's People's Committee. The other apartments will be for sale.-
Footwear
export returns up 11.4% to $3.1b
Last month alone,
export turnover reached $750 million due to the stability of traditional
export markets and increasing orders from new importers.
In the first four
months of the year, the industry enjoyed high export turnover from its
traditional markets. The
Shoe producers had
stable orders, with many big enterprises receiving orders for up to the third
quarter.
According to the
Viet Nam Leather and Footwear Association (LEFASO), the Trans-Pacific
Partnership Agreement (TPP) negotiations would bring about opportunities for
the Vietnamese leather and footwear industry to penetrate the large market.
The association
added that
This would help
Vietnamese shoe enterprises to increase their competitiveness over other big
shoe exporters that were not TPP members.
In addition, the
products would be subject to Generalised System of Preferences (GSP) taxes in
the EU market from the beginning of next year.
EU taxes would be
zero per cent when the Free Trade Agreement (FTA) between
Several British and
German shoe importers, therefore, have been searching for business
opportunities in
However, the
association said the TPP would also bring about challenges for
Domestic businesses
have a low localisation rate of 40 per cent, as the industry depends highly
on imported materials.
The Ministry of
Industry and Trade encouraged footwear businesses to increase their
investment in material production, modern and environmentally friendly
technologies.
The country aimed
to reach an export turnover of $9.7 billion this year, up 10 per cent over
last year. Shoe exports are expected to gain $8 billion.
It also aims by
2020 to be one of the world's top-five producers and exporters of footwear.
Footwear
manufacturers from
Panjit Pisawong,
executive director of
The Thai trade official
was speaking at the
The delegation
consists of government delegates and 30 members of the Association of Thai
Footwear Industrial Promotion.
"
She said
Diep Thanh Kiet,
vice chairman of the Viet Nam Leather and Footwear Association, said
The forum was
organised by the Thai Ministry of Commerce's Department of Foreign Trade in
collaboration with the Association of Thai Footwear Industrial Promotion and
the Viet Nam Chamber of Commerce and Industry.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Hai, 10 tháng 6, 2013
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