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BUSINESS IN BRIEF 7/6
Future FTA
to fuel
The European Union
(EU) and
The move is
expected to turn
"The FTA will
offer market-access for goods and service providers from both sides,"
said Jean-Jacques Bouflet, head of Trade and Economic Affairs for the EU in
Under the FTA,
tariffs on at least 90 per cent of trade and trade lines will drop to zero
within seven years.
Negotiations on the
FTA are expected to be concluded by the end of next year, according to
Bouflet.
Currently, under
the Most Favoured Nation (MFN) trade status, footwear has a 7.69 per cent
tariff, and under the Generalised Scheme of Preferences (GSP) status, a 3.5-4
per cent tariff rate.
Textiles operate
under a 12 per cent tariff under MFN status and a 9.6 per cent duty under the
GSP rate.
The GSP rate is
given to eligible exporters of developing countries such as
From 2009 to 2011,
only 53.7 per cent of Vietnamese exports qualified for the GSP rate of 3-5
per cent.
Moreover, changes
in the GSP rate will take effect on January 1.
Some of
Under the new rule,
any country holding a share of more than 17.5 per cent in total imports of a
particular item will not enjoy preferential tariffs.
In the next review,
if shipments of such items show that they exceed the so-called GSP maturity
threshold, many Vietnamese exports may no longer enjoy preferential tariffs
under the new GSP, Bouflet explained.
However, the FTA
currently under negotiation would supersede current preferential tariffs and
eliminate existing GSP or MFN rates.
"Apart from
tariff reductions, the bilateral FTA will have a wider impact, including an
increase in the flow of quality investment from
"The FTA could
turn
Speaking at the
forum, Dang Hoang Hai, head of the Ministry of Industry and Trade's European
Market Department, said the FTA with the EU would be an effective tool to
help
At that time,
Vietnamese exports to the EU are expected to account for 20 per cent of total
export structure.
However, Hai noted
that foreign companies were more aware of the existence of preferential
tariffs and knew how to take advantage of them.
On the other hand,
Vietnamese companies' understanding and interest about preferential tariffs,
particularly in the north, was still low, he said.
Many local
companies were worried about the challenges that the FTA will produce,
including increased competition from European businesses.
Hai said Vietnamese
businesses would not only face competition from European importers, but also
other countries in Asia and the
He urged them to accept
the new trading scheme and improve their businesses.
"
In the future, EU
trade barriers will no longer be tariffs, but technical standards, such as
for food safety and hygiene.
"Trade
opportunities will depend on the competitiveness and proactive capacity of
Vietnamese businesses," Hai said.
Also speaking at
the seminar, Vo Tan Thanh, director of the
The EU is
In the first
quarter of this year,
As of January this
year, the EU had 1,810 investment projects operating in
The EU-Viet Nam
business forum was organised by the Viet Nam Chamber of Commerce and Industry
in collaboration with the delegation of the EU in
The annual event,
first held in 2007, promotes trade and investment activities.
Companies
demand better aquaculture management as financial losses mount
Management of the
aquaculture industry must be improved so that seafood processors and
exporters can overcome current financial difficulties, industry officials
said at a conference held on Thursday in
The National
Agro-Forestry Fisheries Quality Assurance (Nafiqad) organised the conference
to collect opinions on the recently issued draft circular 55/2011/TT-BNNPTNT,
which includes proposed regulations on checking the quality of seafood
exports.
Seafood processors
and exporters said that the improper practices of aquaculture breeders and
farmers had led to financial losses and rejection by international buyers of
seafood.
A representative
from a seafood export company, speaking on the condition of anonymity, told
Viet Nam News that rejected seafood products were mostly because of
antibiotics used by aquaculture farmers.
"The reality
shows that few of the cases are caused by bacteria, which we can control when
exporting," the company representative said.
Processors and
exporters were the ones who must suffer the consequences, she said.
Besides farmers'
improper practices, poor management of the aquaculture industry has also
contributed to the current situation.
"This
situation has been mentioned for years, but has not been solved,"
another company representative said.
Processors and
exporters have asked the Nafiqad to add new regulations in the circular that
would punish farmers and breeders who violate industry rules.
Another problem
plaguing the industry is the high fee required for seafood quality examinations.
The processors and
exporters attending the conference said the fees were too high.
The export-company
representative who asked to remain anonymous said the circular appeared to
contain positive changes, but upon closer inspection, called for fees that
were too high.
With this draft,
exporters and producers "were being pushed to the wall with no
exit", the export-company representative said.
Speaking at the
meeting, Nguyen Thi Xuan Thu, Deputy Minister of Agriculture and Rural
Development, urged Nafiqad to work with local authorities to improve control
and management of aquaculture activities in the region.
She said that
aquaculture farmers should join co-operatives so they could be taught correct
methods and meet safety and technical standards.
Processors and
exporters said the Nafiqad should listen to companies and find ways to reduce
the seafood-quality examination fee.
Seafood exporters
have been experiencing more difficulties this year because import markets had
fewer orders.
According to national
customs' office figures, in the first four months of the year, export
turnover was US$1.7 billion, a year-on-year drop of 3.5 per cent .
Social
housing conversion gets go-ahead
The Ha Noi People's
Committee has agreed to convert part of a proposed commercial housing project
at
The approval makes
the 11.300-sq.m building the first project to be approved for transformation
under the Ministry of Construction's initiative to change commercial real
estate projects to social housing in an effort to warm up the property
market.
The Tran Phu
project, which is backed by the Song Da Urban Joint Stock Company, will
consist of 512 apartments in 35 storeys.
Those which changed
to social housing projects would enable investors to assess preferential
loans and be exempt from land-leasing fees.
However, they will
have to set aside the first floor for community activities, and the second
and third floors for kindergarten, first aid and fitness centres. The
investor is also responsible for building infrastructure such as roads and
green space.
Upon completion,
the apartment building will be sold to low-income earners. The project will
cost an estimated VND507 billion (US$24 million).
The municipal
people's committee asked the investor to start building in the second quarter
of this year and finish by the end of 2015.
The committee also
approved a similar proposal for the AZ Thang Long apartment building and
Trung Van residential area in Tu Liem District.
About 10 projects
in the city are expected to get similar permits this year. About six will
start within a year.
Statistics from the
Ministry of Construction reveals that 50 property investors nationwide
propose to resize apartments or transform projects to social housing.
US Congress
person support economic ties with Vietnam
The
At a recent
reception they were informed by Vietnamese Ambassador Nguyen Quoc Cuong about
the bright prospects of bilateral cooperation in economy, trade and
investment, especially when
They all pledged to
encourage businesses in their State to pay more attention to the Vietnamese
market.
Ambassador Cuong
also met with leaders, professors and students from the
Earlier at the
Vietnam-Missouri Business Forum he briefed participants on
Working with
Missouri Representative Vicky Hatzler and leaders in agricultural sector,
Ambassador Cuong hailed the US House Committee on Agriculture’s decision to
repeal the US Department of Agriculture (USDA) Catfish Inspection Programme
aimed at removing all non-trade barriers for tra and basa fish imported from
Representative
Hatzler welcomed the Vietnamese government’s decision to re-import white
internal organs and expressed delight at the growing trade exchange between
the two countries.
Vietnam’s
manufacturing sector continued its subdued start to 2013, as May saw outputs,
new orders and employment all slip back into contraction following modest
gains in the previous two months.
At 48.8, down from
51.0 in April, the seasonally adjusted HSBC Vietnam Manufacturing PMI posted
below the neutral 50.0 mark for the first time since February.
The domestic market
continued to be the main drag on manufacturing performance, whereas new
export business showed a modest recovery. New export orders have increased in
each of the past three months, with May’s growth being the fastest since
April 2012. Companies also reported stronger demand from clients in
Job losses were
reported in May for the second time in four months, as companies remain
cautious about hiring. In addition to depressed demand, companies linked the
cut in payroll numbers to cost control initiatives. This also played a role
in purchasing and stock-holding decisions, leading to lower levels of both
pre- and post-production inventories and a modest scaling back on input
buying.
The May data
indicates that inflationary pressure remained relatively mild for prices in
the manufacturing sector. Although average input costs increased for the
fifth consecutive month, the inflation rate was at its lowest that period.
Shortages of
certain raw materials were reported and increased import prices resulted in
higher costs. However, this was partly offset by decreased demand, which led
to lower prices for a number of inputs.
Meanwhile, average
output prices, were broadly unchanged during the month, as competitive
pressure stifled manufacturers’ pricing power. The vast majority of companies
(almost 84%) reported no change in factory gate prices.
Improving
business climate – a must
They said
A better investment
climate will make it easier for
In his opening
address, Minister of Planning and Investment Bui Quang Vinh pointed to the
fact that despite recent positive signs the national economy is meeting
numerous difficulties, including low FDI, excessive inventories, poor
competitive capacity and a large number of suspended businesses.
The business
community needs to shoulder the burden with the government in the reform
process to overcome challenges, the minister said.
To ride out the
difficult times, Vu Tien Loc, President of the Vietnam Chamber of Commerce
and Industry, proposed that the government persist in stabilising the
macroeconomy, controlling inflation and achieving steady economic growth.
It is imperative to
speed up structural reform, primarily for State-owned enterprises, increase
transparency, and create a playing ground on an equal footing basis for all
economic sectors, said Loc.
To support
businesses in difficulty, he recommended the government slash the corporate
income tax to 20 percent, remove interest rate ceiling, and rev up the
tourism sector.
He laid a strong
emphasis on accelerating negotiations and signing of key trade agreements
such as the Trans-Pacific Partnership (TPP) agreement and the Vietnam-EU free
trade agreement (FTA).
Delegates once
again confirmed the role the private sector plays in national economic
development.
VCCI President Loc
said the government should have consistent policies to ensure an equal
environment for private businesses.
“This must be
demonstrated through the consistency of policies, from the Constitution to
laws and by-law documents,” said Loc.
Preben Hjortlund,
President of the European Chamber of Commerce in
EuroCham insists
that the government of
Mark Gillin, President
of the American Chamber of Commerce in
It’s time
At the forum,
Deputy Prime Minister Vu Van Ninh appreciated executives and donors’ frank
opinions and said the government will study them to come up with appropriate
solutions.
He also asked
businesses to restructure themselves to improve their operational efficiency.
The mid-term
gathering was jointly held by the Vietnam Business Forum (VBF), the Ministry
of Planning and Investment, the International Finance Corporation (IFC), and
the World Bank (WB).
Red River
Delta targets higher GDP
The Prime Minister
has recently approved a master plan on socio-economic development from now
until 2020 in the Red River Delta.
Under the plan, the
region’s contribution to national gross domestic product (GDP) is expected to
increase from 24.7 percent in 2010 to 26.6 percent in 2015 and 28.7 percent
in 2020.
Meanwhile, the
region’s average per-capita income will climb to 2,500 USD by 2015 and about
4,180 USD by 2020, which is 1.3 times of the national average.
By 2020, the
agricultural sector will account for 7-7.5 percent of the region’s GDP,
industry and construction, 45-47 percent and services, 46-48 percent.
Priorities will be
given to high quality transport, consultation, design, invention,
finance-banking, telecommunications, education-training, healthcare, trade,
tourism, science and technology.
The services sector
targets an annual growth rate of about 10 percent during the 2011-2020
period.
Modern telecom
infrastructure and better broadband coverage are also listed in the plan.
By 2020, 80-85
percent of households will have fixed land lines and over 70 percent of the
population will have access to the Internet.
With the ambition
to develop tourism into a spearhead sector, the region will pour investment
into building a number of key tourism areas that satisfy international
standards.
In 2015, the region
is expected to welcome 17-18 million domestic visitors and 3.2-3.5 million
international tourists. The numbers are expected to hit 24-25 million and
4.5-5 million respectively in 2020.
In industry, the
Red River Delta will focus on sectors that have a competitive edge, a high
rate of locally made contents and capacity to integrate into global value
chains such as electronics, information-technology, telecommunications,
machinery, ship building, high-quality steel and new construction materials,
chemicals, pharmaceuticals, food processing industry, garments-textiles, and
footwear.
Garments-textiles
and footwear will be developed to serve both international and domestic
consumption while more attention will be paid to supporting industries such
as thread making, dyeing and design in order to increase the population of
locally made contents in manufactured products.
Investors are
encouraged to continue investing in industrial parks, especially those
repairing and building ships and other marine vehicles in Hai Phong, Quang
Ninh and Nam Dinh.
In agriculture, the
region will focus on intensive cultivation of rice, vegetables and flowers,
pig and poultry farming at an industrial scale and aquaculture using
cutting-edge technologies.
Economic and social
infrastructure will be developed synchronously to generate momentum for the
region’s socio-economic development.
The system of
highways connecting the region’s economic, commercial and service centres
will be completed during the period.
Under the plan, the
Hai Phong and Quang Ninh port cluster is expected to be modernised. Lach
Huyen seaport in Hai Phong port city will be turned into an international
port.
While upgrading the
existing railway system and building elevated railway lines in
HCMC sees
decline in imports, exports in May
Latest data from
the Ho Chi Minh City Statistics Office shows total exports at US$1.95 billion
in May, a decrease of 1.1 percent compared to the same period last month
while total imports at $1.76 billion, down 26 percent over the last month.
Excluding crude
oil, export turnover reached around $1.35 billion, down 5.9 percent compared
to that in April.
In the first five
months of this year, exports in HCMC were estimated at $7.7 billion, an
increase of 1.8 percent year-on-year, while imports were at $9.8 billion, an
increase of 8.8 percent year-on-year, leaving a trade gap of $2.1 billion.
However, foreign-invested sector still saw a trade surplus of more than $426
million.
Main export items
included rice, seafood, clothes, and footwear. Imports were mainly milk,
dairy products, petroleum, plastic, and fabrics.
Domestic sector
accounted for 60 percent of total imports and exports, and foreign-invested
sector accounted for the rest 40 percent.
Farmers in
Farmers in the
Mekong Delta have begun to harvest 1.65 million hectares of the summer-autumn
rice crop but are worried over continuously falling prices.
According to farmer
Bui Thi Hong Hoa in Chau Thanh A District in Hau Giang Province, the price of
fresh rice is only VND3,500 a kilogram and for long grain variety just
VND4,000 a kilogram.
The price of rice
has dropped to an all time low in the last one year but traders still bargain
and showed reluctance to purchase. At this price, farmers are at risk of
losing a lot of money.
In Dong Thap, Long
An and Vinh Long Provinces, farmers harvest an abundant summer-autumn rice
crop and many of them are under pressure to lease off their fields;
however, low prices and reluctant attitude of traders are their main concern.
According to the
Ministry of Agriculture and Rural Development, in May, the Mekong Delta
farmers harvested more than 817,500 tons of summer-autumn rice crop over
150,000 hectares. They are expected to harvest around 926,500 tons of
rice over 170,000 hectares in June.
Due to low prices,
Deputy Prime Minister Hoang Trung Hai asked firms to purchase one million
tons for stockpiling in a bid to stabilize price.
The Vietnam Food
Association (VFA) wants to work with People’s Committees in the region
to buy rice at VND4,142 per kilogram. VFA said exporters have
sold more than 2.48 million tons of rice so far, earning revenue of upto $1.1
billion.
Global
yield-seeking funds boost VN stocks
nternational
investors looking for yield have been pumping money into ASEAN stock markets,
and this has prompted Vietnamese stocks rising over 10 per cent in the twelve
months leading to March 2013.
This conclusion was
reported by the
The report, titled
"Economic Insight:
ICAEW's economic
advisor Charles Davis said: "Stagnation in industrialised nations means
investors are turning to emerging economies in search of higher yield. ASEAN
stock markets have ridden this wave of capital, sending stock prices
skywards. But the growth rates we are seeing in some countries – 20 per cent
in
Strong market
investment is also being matched by firms and households taking on higher
levels of credit. The ratio of debt-to-income had been declining until 2010,
but a positive outlook has led to the private sector increasing its debt
exposure, which is now in the region of 120-130 per cent for
Mark Billington,
Regional Director, ICAEW South East Asia, said: "Debt levels in the
region remain manageable for as long as the projected positive growth story
remains. For the moment, debt levels are around half of what they were at the
peak of the Asian crisis. This is fine for now but would be a cause of
concern if credit growth continues to outpace nominal GDP growth at the same
rates we see today."
"Growth
outlook for both
The report also
said low returns on government debt are pushing capital to emerging market
assets. Combined with growth in credit, inflation and bubbles may form though
currently, regional markets look healthy as governments keep a close watch on
housing and equity markets.
Organisers
announced on June 3 that more than 800 domestic and foreign companies will
display their products and services at 2,200 booths.
"With so many
participants, this year's will be the biggest VietBuild exhibition, which is
in its third edition," said Nguyen Dinh Hung, chairman of the Vietbuild
Construction International Exhibition Organising Corp.
Hung told Vietnam
News that VietBuild 2013 will be organised by two times in the city. The
second, which is almost fully booked, will be held from August 14 to August
18.
Apart from
traditional products like building materials, internal and external
decorations, VietBuild 2013 will display many new and environment-friendly
products, including hi-tech gadgets to serve modern life.
Hung also said that
the participation of more than 800 companies in the fair was a positive sign
that the real estate market was recovering from a prolonged slump.
During the
exhibition, four conferences relating to the building sector will be held.
VietBuild 13 has
already been organised in
Vietnamese
tuna enjoys high consumption in Europe
While tra fish and
shrimp exports face difficulties due to dumping accusations and antibiotic
problems, Vietnamese tuna enjoys high consumption in
According to the
Ministry of Agriculture and Rural Development, the export turnover of tuna
reached 155 million USD in the first five months of this year, up nearly 20
percent year-on-year.
The Viet Nam
Association of Seafood Exporters and Producers (VASEP) explained that the
European market had increased tuna imports after a long period of importing
only small amounts due to economic difficulties.
However, the export
value of Vietnamese tuna would rise even higher if fishermen stopped using
bright lights to attract tuna, VASEP said. This method makes catching cheaper
but results in lower quality tuna.
Together with tra
fish, tuna is now one of
Tuna obtained an
export turnover of 380 million USD in 2011, accounting for 6.3 percent of the
country's seafood exports, and was exported to 83 countries.
Its export value
rose to nearly 570 million USD last year, with the US market accounting for
over 245 million USD (42 percent) and the European market 114 million USD (20
percent).-
US
multinational opens new offices in Vietnam
The multinational
corporation Agilent Technologies, listed on the
The offices will be
fully equipped with modern technology and highly qualified staff serving the
company’s provision of sale services, applications as well as customer
support services in
Agilent is a
multinational manufacturer of measurement equipment and technology which
boasts over 20,000 employees operating in more than 100 countries. Its total
net revenues reached 6.9 billion USD in 2012.-
Exports to
In April alone,
Vietnamese exports to the country surged 50 percent to 421 million USD with
major export lines including garments and textiles, footwear, cashew nuts,
rubber and tea.
National
Highway expansion work starts
Work on expansion
of a stretch of
The project, in Ham
Thuan Bac district, is the result of a partnership between the Ministry of
Transport and the provincial People's Committee.
The
A total of 2.6
trillion VND (124.8 million USD) will be spent to expand the stretch of road,
which will have six lanes at a width of 25.5 metres. The highest permitted
speed for motor vehicle will be 80 km per hour.
The project is
scheduled to be finish in 2015.-
This included the
shipment of 650,000 tonnes for 273 million USD in May, reported t he Vietnam
Food Association (VFA).
The VFA said rice
exporters have set to export 7.5 million tonnes in 2013.
According to the
Ministry of Agriculture and Rural Development, rice growers in the
The high yield was
attributed to close collaboration between the Ministry’s Plant Protection
Department and regional provinces in taking measures to prevent and fight
insect pests.
An appropriate rice
cultivation strategy also worked, with high-quality rice varieties for export
covering around 70 percent of farmland, while low-quality varieties only
account for less than 15 percent.
Farmers in the
region used disease-resistant varieties and effective technical methods such
as Integrated Pest Management (IPM) to improve productivity and reduce
farming costs.
The Mekong Delta
has established large-scale production with the application of high
technology and large-scale rice fields.
In 2012, the country
exported a record 7.72 million tonnes of rice, earning 3.45 billion USD,
according to VFA.-
Exporters have
earned revenues of 15 billion VND (700,000 USD) so far.
Of the exported
crocodiles, 3,710 were alive, up four times against the total number of the
live reptiles exported last year.
The number of
licences under the Convention on International Trade in Endangered Species of
Wild Flora and Fauna (CITES) granted so far this year to the city’s crocodile
breeding and trading enterprises has increased by 37.6 times against the same
period last year.
The city’s CITES-licensed
enterprises have exported crocodiles and crocodile-relates products mostly to
The city now raises
about 176,000 crocodiles, according to the Forest Protection Division.-
According to the
latest edition of the Asian Development Bank’s (ADB) Asia Bond Monitor, the
country’s corporate bond market, however, shrank 47.2 percent to 1 billion
USD.
The quarterly Asia
Bond Monitor assesses the bond markets of Chinese Hong Kong,
It said the
Emerging East Asia’s local currency bond markets expanded 12.1 percent
year-on-year to 6.7 trillion USD at the end of March 2013, driven by double-digit
growth in corporate bonds.
Meanwhile, the
region’s corporate bond market expanded 19.5 percent year-on-year and 4.6
percent quarter-on-quarter to 2.4 trillion USD in late March. Meanwhile, the
government bond market grew at a more modest annual pace of 8.3 percent and a
quarterly rate of 2 percent to 4.3 trillion USD.
The Manila-based
ADB is dedicated to reducing poverty in
Developing
new shades of ‘green’
The “greening” of
Many developers
nowadays focus on green values to distinguish themselves from others.
A range of real
estate projects have been developed under green criteria. Among those are
Ecopark, Gamuda City and Vincom Village in Hanoi; Phu My Hung, Riviera Cove
and Hoa Sen Dai Phuoc in Ho Chi Minh City, and EcoLake My Phuoc in Binh Duong
province.
Alex Loh,
representative of SP Setia Bhd, the foreign partner in the joint venture to
develop EcoLake My Phuoc, said that the Malaysian company wanted to create a
perfect eco-urban area in design and plan right at Binh Duong’s centre.
In reality, SP
Setia has applied its experiences from
SP Setia has
committed to spend about 20 per cent of the total development area for green
spaces, as well as incorporating energy-saving features in all the house
designs and infrastructure works.
For example, the
houses are designed to allow for maximum natural lighting and ventilation,
thus reducing energy consumption. Besides, the developer has developed a
2.5ha town park and a 2ha lake with a sandy beach. These facilities are open
to the surrounding communities.
Guy Major, national
sales director of residential sales at Savills
“The trend of
developing eco-residential projects has become more and more popular in
modern life. This kind of house meets the demand of having a fresh
environment living standard, by using natural green features to be a part of
the master design of the project,” Major said.
This trend is also
seen in several other property projects in
The Singapore-based
developer CapitaLand can be considered another green-value advocator,
introducing environmental design practices to property projects in
Its serviced
apartment buildings, including The Vista in
CapitaLand has
local and international awards for their quality and environment-friendly
designs and features, as well as for energy efficiency.
A layout providing
natural cross ventilation to reduce the need for air-conditioning, ample
windows openings to reduce the requirement for artificial lighting, large
landscape areas with sky gardens to create vertical greenery and energy
efficiency are among criteria for designing the company’s projects in
Meanwhile, Ecopark
in northern Hung Yen province next to
According to Dao
Ngoc Thanh, chairman of the Ecopark developer Vihajico, it was an advantage
for Ecopark to be the first ecological township in
Only a few
developed countries, Thanh said, had this development form of ecological
urban combined with rivers.
There are still a
lot of things to be done for reaching ecological urban criteria, but with its
initial achievements, Ecopark has defined its own development strategy and
been distinguished from others. “Green city” has become its own distinctive
brand.
Even people who
have visited
Vuon Tung, Vuon
Mai, Pho Truc, and Rung Co area, all are formed in their own styles and
together create a beautiful image of nature. It is the combination of old,
large trees with various colorful flower kinds. An ancient tree would take
hundreds of years for growing. Each ancient tree at Ecopark is an evidence for
the developer’s commitments of covering the entire township with natural
green.
The developer of
Ecopark has gradually come closer to its target – to make a modern ecological
residential project which can be a pilot project for other countries to
follow.
Alfredo Serpell, a
professor from the Catholic University of Chile, said Ecopark was an
outstanding case for renovation and sustainable development in construction.
“It is a long way
from theory to reality and from planning to implementation. Ecopark, however,
is a good example for many other countries to follow,” Serpell said.
Green features have
been applied not only in large scale projects, but also in single residential
building.
Some other
buildings also installed sensor lighting systems to adjust light flow in
low-light areas so as to reduce energy use and limit the heat dissipated
within the buildings.
Eco-housing is
becoming a trend and demand will surely keep growing.
Cherry
fruit will be chilling in new Tien Giang plant
One of
Nichirei
Corporation’s VND90 billion ($4.3 million) plant, to be located in Tien Giang
province’s Go Cong Dong district, will process 7,000 tonnes of cherry fruit
per year.
The project is
slated for completion in March 2014 and the products will be supplied to
Nichirei’s fruit juice factories in
“The Japanese firm
has picked Tien Giang as only cherries in Go Cong Dong district reach the
firm’s standards,” said Nguyen Hong Minh, deputy director of Tien Giang
Provincial Department of Planning and Investment.
Nichirei has
entered into a joint venture with the local firm Hiep Phat to set up a cherry
tree research centre in the province. Last year, Nichirei Foods, an arm of
Nichirei Corporation, entered the Vietnamese processed food market by taking
a 19 per cent share worth $6.25 million in Cholimex, one of
Tien Giang
province, some 70 kilometres from
Minh said Tien
Giang was encouraging investors in the fields of agriculture, development
industrial parks and infrastructure under the build-operate-transfer model.
As of late April
2013, the province was home to 52 foreign invested projects, capitalised at
$1.15 billion. Leading foreign investors in the province are from Japan,
South Korea, the US and Thailand.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Năm, 6 tháng 6, 2013
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