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BUSINESS IN BRIEF 28/8
Agricultural
exports earn US$17.98 billion in eight months
Main
items of farm produce are down in export volume, says the Ministry of
Agriculture and Rural Development (MARD).
Major
agricultural exports are estimated at US$8.99 billion (down 11.7 percent),
but seafood shipments at US$4 billion, (up 1.3 percent) and forestry products
up 11.7 at US$3.52 billion.
Rice
shipments are about 4.69 million tonnes worth US$2.05 billion, down 15.7
percent in volume and 18.4 percent in value compared to the same period last
year as the export price remained at a low level of US$438.49 per tonne on
average, down 3.2 percent compared to last year’s figure.
Coffee
exports total 974,000 tonnes worth US$2.09 billion, down 23.2 percent in
volume and 22.5 percent in value.
Other
major export commodities include rubber earning US$1.52 billion, (up 4.6
percent), cashew nuts US$1.07 billion (up 18.9 percent) and pepper US$677
million, (up 20.4 percent).
Another
steam drum installed at Mong Duong thermo power plant
The
Vietnam Machine Installation Corporation (Lilama) on August 26 successfully
installed steam drum 1B of the Mong Duong coal-fired power plant in the
northern Quang Ninh province.
The
successful installation of the 160-tonne boiler drum marked a new stage in
building the power plant.
The
plant is one of the two facilities in the Mong Duong Electricity Centre -
part of the National Electricity Development Plan for 2006-2015.
Under
a contract signed by Lilama and the main contractor, Huyndai Engineering
& Construction Co Ltd, Lilama will install all the plant’s
electro-mechanical equipment from December 2012 to October 2015.
Mong
Duong 1 with two turbines will have a combined capacity of 1,080 MW,
generating 6.5 billion kWh of electricity per year. The first and second
turbines are expected to become operational in the first and third quarter of
2015, respectively.
Sumitomo
takes part in
In the
initial stage, Sumimoto group will sell food, household utensils and
cosmetics mainly to young customers who like Japanese products.
To
corner the Vietnamese market, the group has already bought a 30 percent share
of a HCM City-based company specializing in buying and selling stationeries
and clothes on the internet. It plans to increase the number of its items
from 40,000 to 100,000 by 2015.
Together
with
Rice
export earnings hit over US$2.05 billion
According
to the Ministry of Agriculture and Rural Development, the total volume of
rice shipments in August was just 463,000 tonnes worth US$202 million due to
a decline of 3.2 percent to US$438.49 tonnes.
In the
past eight months, rice exports on average decreased by 15.7 percent in
volume and by 18.4 percent in value compared to the same period last year.
Rice
exports to
It’s
likely that the country’s rice exports will slow down in the coming months.
USAID
promotes trade acceleration in Vietnam
The US
Agency for International Development (USAID) has supported 19 ministries and
agencies in implementing trade-related legislation, building trade
liberalisation and governance capacity, and boosting economic integration in
The
outcomes of the USAID-funded “Support for Trade Acceleration” project (USAID
STAR PLUS) over the past three years were unveiled at a ceremony jointly held
by the
Launched
in 2010, the project has focused on areas related to preparation for and
implementation of trade agreements, customs modernisation, facilitation of
agricultural trade, and legal transparency.
Deputy
Minister of Justice Le Hong Son affirmed that the project has played a
positive role in developing the rule of law, improving transparency in the
business environment consistent with the World Trade Organization (WTO)
regulations and international practices.
It
also creates a healthy competitive environment to enable investors in all
economic sectors to compete successfully and take advantage of new
opportunities arising from trade liberalisation, he added.
“Our
work through USAID STAR Plus and previous economic growth programmes dating
back to 2001 is testimony to the growing partnership between the United
States and Vietnam to build a rule-based trading system in line with the WTO
and BTA,” said US Embassy Charge d’Affaires Claire Pierangelo at the project
closing ceremony.
These
efforts contributed to developing the rule of law, governance, and economic
relations between the two countries, Claire Pierangelo noted.
Trade
acceleration has been a key feature in the relationship between the
This
trade expansion is partly thanks to extensive trade liberalisation under the
BTA and the WTO, which benefited from technical assistance of USAID STAR Plus
and its predecessors, USAID STAR I and II.
Customs
intensify inspection on milk import-export
Vietnam
Customs has taken tougher measures to control the import and export of dairy
products.
The
move aims to ensure food hygiene and safety, and prevent the import of
unqualified milk, which may cause harm to consumers’ health.
Strict
regulation will be imposed on imported dairy products, especially those
shipped from
Meanwhile,
the Ministry of Industry and Trade (MoIT)’s Import-Export Department and the
Health Ministry’s Food Hygiene and Safety Department have received warnings
from many countries that some batches of imported milk do not meet food
quality standards.
Foreign
companies eye Vietnamese retail market
The Vietnamese
retail market is attracting a number of foreign investors, including those
from
In its
August 26 issue,
Retail
business group Berli Jucket decided to acquire 65 percent of shares at Thai
An Company which manages 41 “B’s mart” convenience stores in
Berli
Jucket’s Vice President Phidsanu Pongwatana, said that compared to
In its
development plan, the group will open an additional 100 stores next year and
300 more in
Japanese
retailer Aeon has also recently opened its national headquarters in
Last
December, the company launched its first Mini Stop convenience store in Ho
Chi Minh and is intent on running its first shopping centre in
With
as many as 800 modern trade stores in
The
convenience store business industry in the Asia-Pacific region grows by
12-15% while
Smooth
transition for SBV gold
Deputy
PM Vu Van Ninh has directed the General Customs Department to waive customs
procedures for all gold imported by the State Bank of Viet Nam (SBV) until it
reaches bank storage, Hai Quan (Customs) newspaper reported.
Ninh
told the Ministries of Finance, and Public Security and the SBV to implement
the direction. It means that the gold can enter the country not only without
customs procedures but also without tests on the quality of the gold itself.
According
to the SBV, upon collecting each shipment of imported gold, the central bank
would issue written documents to commission units to collect the precious
metal and be responsible for the nature of each shipment.
The
exemption will only apply until the gold is sealed and transported to SBV
storage, where regular customs procedures will be carried out. It follows a
proposal to the Prime Minister by the bank in May for the free flow of gold
through Customs, which can cause difficulties. The SBV also suggested that
the gold be officially placed on a list of preferential goods, similar to the
way goods for security and defence are brought into the country.
At
present, the SBV material used for money printed overseas is exempt from
customs procedures.
On
Monday, the gap between the local and international gold price narrowed. The
Saigon Jewellery Company (SJC) sold its gold for VND38.12 million (US$1,815)
while on the kitco.com trading floor, the gold selling price climbed to
$1,395 per ounce, or $1,681 a tael, leaving gold prices in Viet Nam $134 per
tael higher than global rates.
VietinBank
Deputy CEO appointed as SBV Chief
The
State Bank of Viet Nam (SBV) yesterday signed Decision No 1836/QD-NHNN to
appoint Le Duc Tho, deputy general director of the Viet Nam Joint Stock
Commercial Bank for Industry and Trade (VietinBank) as chief administrator of
the central bank's office.
Tho,
born in 1970, has 21 years of experience in the banking sector, mostly spent
at VietinBank. He had been a deputy CEO at the HOSE-listed lender for over
three years.-
Veg
oil imports under scrutiny
The
Ministry of Industry and Trade is cracking down on imported vegetable oil,
issuing a new decision last week to impose a new anti-dumping tax from
September 7.
The
new tax will apply to refined soybean and palm oil, coded HS 1507.90.90,
1511.90.91, 1511.90.92 and 1511.90.99.
The
decision followed a proposal from the Viet Nam Vegetable Oil Company urging
the ministry to apply temporary measures on imported vegetable oil.
An
investigation that began on December 27 last year showed that domestic
consumption of refined vegetable oil saw consistent increases during the
2009-12 period, jumping 28 per cent.
However,
sales of locally manufactured oils declined during the same period with
market share collapsing from 52 to 27 per cent. Domestic production dropped
in 2012 to 64 per cent, while domestic capacity fell from 89 to 31 per cent.
Domestic
producers reported falling revenues and profits, each decreasing 66 per cent
and 197 per cent, respectively, while findings from the investigation showed
importation of soybean and palm oil soared during the same three-year period.
The
investigation concluded imports were causing damage to domestic producers
affected by reductions in market share, output, profits and labour.
The
roadmap for the reform indicates a 5 per cent anti-dumping tax to be applied
until May 6, 2014, to be gradually decreased by 1 per cent every 12 months until
May 6, 2017.
Muong
Thanh
The
Muong Thanh Hotel Group will officially open its VND400 billion (US$19
million) Muong Thanh Da Nang hotel in Son Tra peninsula on September 2, the
group has announced.
The
four-star, 26-storey hotel with 370 guestrooms and eight apartments has been
the 18th hotel of Muong Thanh hospitality hotel chain in
The
hotel, which is located east of the Han River and sandwiched between the
On
this occasion, the group also introduces its Muong Thanh Charity Fund.
PVI
provides insurance for Lai Chau power plant
The
Petro Viet Nam Insurance Joint Stock Corporation (PVI) has recently signed an
agreement to provide insurance service for Lai Chau hydro power plant project
owned by Viet Nam Electricity (EVN).
With a
total value of VND14.7 trillion (US$700 million), this has been one of the
biggest insurance contracts for EVN so far.
The
power plant, located in Muong Te District's Nam Hang Commune in the
In the
first six months of this year, PVI signed insurance contracts in big projects
such as construction insurance for Unit 2 of the O Mon thermal power plant
worth $346 million, asset insurance for the Phu My 3 thermal power plant
worth $1 billion and construction insurance for the iron and steel plant and
Son Duong deep water port worth $5 billion.
During
this period, the corporation also paid compensation of VND536 billion ($25.5
million) for more than 52,200 cases.
Healthy
firms given access to cheap loans
Several
enterprises with healthy and transparent finances and effective business
plans have been given loans at a rate of only 6.5-7 per cent per year,
according to the State Bank of
In its
latest report on the banking sector, the central bank said that dong lending
rates last week were steady and credit institutions strictly complied with
regulations on the maximum dong short-term lending rates for priority
sectors.
The
report said that State-owned commercial banks also offered dong lending rates
at 7-9 per cent per year for short-term loans for priority sectors, including
agricultural and rural development, exporters, support industries, small and
medium-sized enterprises (SMEs) and high-tech enterprises; 9-10.5 per cent
for short-term loans for other production and business; and 11.5- 12.8 per
cent for medium and long term loans.
For
the group of joint-stock commercial banks, the annual dong lending rates were
8-9 per cent for short-term loans for priority sectors; 9.5-11.5 per cent for
short-term loans for other production and business; and 12-13 per cent for
medium and long term loans.
The US
dollar lending rates were commonly 4-7 per cent per year, of which the
lending rates set by State-owned commercial banks were 4-5 per cent yearly
for short term, and 6-7 per cent for medium and long term. Joint stock
commercial banks offered rates at 5- 6 per cent yearly for short term and
6.5-7 per cent for medium and long term.
The
central bank also reported that dong mobilising rates last week were stable
compared to the previous week. The rates offered by State-owned commercial
banks were commonly 1 to 1.2 per cent per year for demand deposits; 5-6.5 per
cent per year for terms below six months; 6.5- 7 per cent for six months to
below 12 month terms; and 7.5-8 per cent for 12 month and 12 month-plus
terms.
The
dong mobilising rates quoted by joint stock commercial banks were commonly
1.2 per cent per year for demand deposits, 6.5 - 7 per cent for one to below
six month terms, 7-8 per cent for six to below 12 month terms; and 8-9 per
cent for 12 and 12 month plus terms.
The US
dollar mobilising rates were also stable at 1.25 per cent per year for
individuals and 0.25 per cent for economic institutions.
Ha Noi's key
industries still firing
Enterprises
making key industrial products in Ha Noi expect to achieve their development
targets by 2015. The targets were set under the Ha Noi development plan for
2011-15.
Pham Duc
Tien, deputy director of the Ha Noi Industry and Trade Department, said
despite the economic downturn, Ha Noi industry was forecast to grow at an
annual rate of 12-13 per cent.
This
would also enable it to become a high-tech centre of
To
stay on target, Tien said Ha Noi authorities would create favourable
conditions for local enterprises to join trade promotion programmes, seek for
new markets, participate in fairs and exhibitions, and co-operate with
foreign enterprises and local enterprises in other provinces and cities.
Tien
said the city would build a positive environment for the enterprises with
scientists, scientific organisations and research institutes to promote
development.
He
advised the enterprises to continue to apply and observe standards and modern
technologies, restructure if necessary and reduce energy consumption.
Ha Noi
has 57 key industrial products made by 48 enterprises. They account for 10
per cent of the total municipal export value and include beverages,
mechanical engineering, electronics, chemicals and plastics, footwear,
textiles, paper and packaging as well as processed food.
Many
products are replacing imports, which helps slash the trade surplus. These
Vietnamese products include transformers, large capacity engines - and
production lines for food and beverage processing.
In the
first seven months of this year, some enterprises producing key industrial
products had good results compared to the same period of last year. The
department said that this was because they had good production and business
strategies - and produced high quality products at competitive prices.
Between
2000 and June 2011, the city had invested VND198.7 trillion (US$9.5 billion)
in 782 projects in the Cuu Long (Mekong) Delta's 12 provinces and Can Tho
City under the programmes, according to the HCM City Development Research
Institute.
The
projects were in agriculture, industry, trade, tourism, science and
technology, healthcare, education, information, culture, transport, and
environment protection. The co-operation has helped foster socio-economic
development, according to the localities.
The
project have improved the lives of locals and reduced the number of job
seekers moving to
The
city too has benefited by securing supply of products from these projects,
especially livestock and agriculture produce.
The
city has identified the strengths of each province and built
production-to-distribution chains for many goods, especially agriculture and
food, that it consumes.
Livestock
and poultry meat is provided by Dong Nai, Ba Ria – Vung Tau, Long An, Tien
Giang, and Tay Ninh provinces.
Eggs
are supplied by Dong Nai, Long An, Tien Giang, Kieng Giang, An Giang, and
Dong Thap.
Vegetables
and fruits mainly come from Lam Dong, Long An, and Tien Giang.
VN
‘should export more to
Vietnamese
companies should consider Indonesia a high-potential export destination and
find niche markets to exploit in this country, an industry insider say.
A Thoi
Bao Kinh Te Viet
She
added that a few major Vietnamese companies like Vinamit, Nhon Hoa Scales and
Trung Nguyen Coffee have already found success in
This
was a good sign for Vietnamese companies, she said.
However,
she also said that local firms should act with a sense of urgency or risk
losing the opportunity to competitors from other countries.
Concurring
with Hanh, Nguyen Tuan Quynh, deputy chairman of the HCM City Association of
Young Entrepreneurs, noted that
Vietnamese
companies should therefore study the market carefully and expand operations
into the fellow ASEAN member nation, he said.
Agriculture
was one of many potential sectors that Vietnamese companies must explore in
A
representative of the Industrial and Agricultural Machinery Company, Bui Van
Ngo, said that they had successfully sold agriculture machinery to
He
said Vietnamese companies should offer agriculture consult-ancy services in
the country.
Currently,
the Pho 24 restaurant chain has established around 15 outlets in
Hanh
said Vietnamese companies must study the model of food chains to establish
these in foreign countries including
A
report presented by the General Department of Customs at the conference said
trade turnover between the two countries has developed significantly in
recent years.
In
2008, the bilateral trade turnover was US$2.5 billion. In 2012, it had
increased to $4.6 billion and is expected to reach $5 billion before 2015 and
$10 billion by 2018.
Exports
from
In the
first seven months of this year, the department said, export turnover to
Products
with high export value to
Unclaimed
cars face confiscation in ports
The
General Department of Customs has said that it will treat unclaimed cars at
ports in several localities as abandoned property.
It has
asked customs departments in Hai Phong,
Within
five working days of receiving the report from the departments about cars in
stock, a notice will be inserted in the media.
The
customs departmenst will also issue notices to signatories of the bill of
lading, asking them to complete procedures for the cars within 30 days. After
that, the property will be considered abandoned and dealt with according to
relevant regulations.
Customs
officers have been asked to carefully verify each case and report to the
General Department any evidence of smuggling.
As of
May 30 this year, there were a total of 178 used cars (mostly manufactured in
2011, 2012 and 2013) imported by overseas Vietnamese that are held at ports.
Investigations
have shown that legal ownership for these cars has not been established.
In
many cases, the owners are illegal immigrants or do not have permanent
residency in Viet Nam. In several other cases, the applications for importing
cars do not meet set requirements.
Tanner
Viet Nam wins green gong
Technical
documentation company Tanner Viet Nam was awarded "For the Green
National Environment" by the Viet Nam Association of Nature and
Environment Conservation.
The
award honors businesses that help conserve the environment and adopt
eco-friendly technologies.
Established
in 2004, Tanner is a leading company in professional technical documentation,
generating technical information from product catalogues to implement
information management systems.
This
year the company has managed to reduce power and water consumption by 12 per
cent.-
Coral
Bay Townhouse in Ha Long goes on sale from today
Syrena
Viet Nam Investment and Development JSC, a member of BIM Group, begins the
sale of two blocks in its Coral Bay Townhouse project in northern Quang Ninh
Province today.
Home
buyers will get a discount of 6.5 per cent on the apartment's value if they
register for a purchase on the release day. The apartments are expected to be
handed over to buyers in the first quarter next year.
Coral
Bay Townhouse is among the key components of the US$2 billion Ha Long Marina
Urban Area project which covers an area of 287ha and stretches along 3.8km of
beach in Ha Long City.
The company
also launched 80 apartments, with areas ranging from 61sq.m to 70sq.m, in the
Green Bay apartment building.
The
apartments are on sale through preferential loans in line with the
Government's VND30 trillion ($1.42 billion) support package for the property
market.-
Bao
Viet Bank guarantees high rise apartment purchases
Bao
Viet Bank announced on Wednesday that it would lend customers who buy
apartments at the Ha Dinh Tower 70 per cent of each apartment's value for 15
years.
The
programme came from co-operation between the bank and the Investment 135
Joint Stock Co, the project's investor.
The
bank undertook to refund all money paid by home buyers for the apartments, as
well as compensate them, if project progress was not assured.
The
commitment to construction progress and for the completion of the projects
was made to assure financial transparency and guarantee customer interests,
it said.
Ha
Dinh Tower is a 21-floor tenement, covering an area of over 3,000sq.m in Ha
Noi's Thanh Xuan District. Apartment delivery was expected to begin in the
fourth quarter of this year.
Export
of hi-tech products surges
Vietnam’s
export of phones and components in the first seven months of 2013 increased
85.7 % year-on-year to US$11.55 billion.
Last
year, the export of mobile phones and components also brought home US$12.7
billion. Main importers were the EU, United Arab Emirates and India with
turnover of US$4.68 billion, US$1.93 billion and US$572 million,
respectively.
According
to Ministry of Industry and Trade statistics, growth was also seen in the
export of other technological commodities to all foreign markets so far this
year.
Vietnam
only began to export electronic goods about 10 years ago, but now the
country’s products have been shipped to nearly 50 markets worldwide.
In the
1997-2012 period, the export of computers, electronic products and parts
experienced an annual rise of 21.2 % on average, from US$440 million in 1997
to over US$7.8 billion in 2012.
China
was the main importer of Vietnamese-made computers, electronic products and
parts with US$1.33 billion, followed by the EU (US$1.23 billion), the US
(US$749 million) and Malaysia (US$631 million).
The
sector is striving for US$40 billion in electronics and mobile phone exports
by 2017.
Over
the years, Vietnam has attracted a lot of big foreign-invested projects worth
tens of billions of dollars in the field with the participation of global
names like Samsung, Intel Corp., and Taiwan (China)’s Foxconn and Compal
Electronics.
Just
last month, Samsung Electronics Vietnam unveiled a US$2 billion project to
build a plant manufacturing and assembling electronic goods in Thai Nguyen
province. The company also increased investment in its project in Bac Ninh
province to US$1 billion.
However,
the country’s electronics sector is facing big challenges as foreign-invested
enterprises account for up to 90 % of the sector’s total export turnover. At
the same time, they control 80 % of the domestic market share.
Experts
have urged domestic companies to increase their production capacity and shift
from processing and assembling to manufacturing.
HCMC
airport still set to take flight
The
Ministry of Transport (MoT) believes that Long Thanh airport is the optimal
facility to replace Tan Son Nhat airport in Ho Chi Minh City when the latter
reaches full capacity by 2020.
MoT
Deputy Minister Pham Quy Tieu dismissed a suggestion by two aviation experts
to scrap Long Thanh and instead expand Tan Son Nhat, saying the expansion is
infeasible.
Le
Trong Sanh, ex-head of international flight management at Tan Son Nhat
airport and Mai Trong Tuan, a former Vietnam Airlines pilot, said an expanded
Tan Son Nhat airport can handle the increasing number of domestic and
international passengers.
“It is
impossible because Tan Son Nhat is located in a densely populated area
surrounded by main streets of Ho Chi Minh City,” Tieu said in a report sent
to the Cabinet.
“The
expansion plan will affect the environment in downtown areas by causing noise
and emission levels to exceed acceptable levels.”
According
to Japan Airport Consultants Inc. (JAC), Tan Son Nhat airport will reach its
peak capacity of 20-25 million passengers between 2018-2020 and will be
overloaded after that.
The
cost of expanding the airport is estimated at US$9.15 billion besides US$16.1
billion for site clearance and relocating some 140,000 people living in the
districts of Phu Nhuan, Tan Binh and Go Vap.
The
plan to build Long Thanh airport was mooted in 2005, and construction is
expected to be completed within the next decade.
The
5,000ha airport, 43km from Tan Son Nhat airport is designed to handle 100
million passengers and five million tonnes of cargo a year, and can
accomodate Airbus A380 and other similar sized aircraft.
JAC,
the consultant to the project, has estimated Long Thanh Airport to cost
US$7.8 billion, including US$730 million for acquiring land and relocating
thousands of households in the area.
Vung
Ang EZ attracts US$16 bil in investment
The
Vung Ang Economic Zone in the central coastal province of Ha Tinh has
attracted 79 projects capitalized at over US$16 billion to date.
Of the
total number of projects, 35 are foreign invested. In the first seven months
of this year, investment licences were granted to 14 projects in the zone,
valued at more than US$500 million.
Among
the biggest projects is one to build a US$10 billion steel factory and sea
port invested by Formosa Heavy Industries Corporation from Taiwan, China.
Vung
Ang EZ, one of the country's five key coastal economic zones, was founded in
2006, covering an area of 22.78ha in Ky Anh District.
Firms
based in the zone have so far created over 15,000 jobs.
US$180m
ship building plan approved
Deputy
PM Hoang Trung Hai has agreed in principle to include a ship-building
facility in Khanh Hoa Province in the country’s masterplan for the industry.
The
license for the US$180 million project in Cam Ranh City’s Cam Thinh Dong
Commune was granted to Oshima Shipbuilding Vietnam Ltd (Japan) in 2012.
The
50-year project will develop a shipbuilding facility that can build 38,000
and 56,000 tonne vessels.
Oshima
is scheduled to start construction of the 304ha facility in February 2015
after three years of site clearance for construction work.
When
construction is completed in 2017, the facility will be able to build twenty
four vessels per year by 2026. The new plant, set to start operations in
2017, will be able to build twenty four vessels per year by 2026.
Deputy
PM Hai has asked the Transport Ministry to complete and submit the masterplan
for the shipbuilding industry to the Government soon.
Vietnam
free-range chicken named best food in SEA
Yen
The free-range chicken – a speciality of Vietnam’s northern province of
BacGiang– will be awarded with the ASEAN BESTFOOD title in Singapore on
September 9-11.
The
product will be honoured by the organising board of the “ASEAN businesses for
a green, clean and beautiful environment” – a public communication programme
in Southeast Asia.
The
awards ceremony will be held at the Singapore Convention and Exhibition
Centre.
To win
the awards, products have to beat a competition in each participating
country. Yen The chicken is one of the four key Vietnamese products to enter
the competition.
From a
local product, Yen The chicken becomes a renowned trademark not only at home
but also abroad and is honoured at the regional consumer forum.
Exports
to the US exceed US$13 billion
The US
remains Vietnam’s largest goods consumer, importing over US$13 billion worth
of goods between January-July 2013, a year-on-year rise of 17.16%.
According
to the Ministry of Industry and Trade, garments, footwear and wood are major
Vietnamese export items that earned revenue of over US$1 billion each.
Garments
topped the export list, fetching US$4.8 billion, up 15.5%, followed by
footwear with US$1.4 billion or up 20.12%, and timber products with US$1.05
billion or up 7.24%.
Products
with an export value worth more than US$100 million are computers and
electronics (US$748 million), seafood (US$712 million), machinery, equipment
and tools (US$535 million), bags, walets, suitcases and umbrellas (US$464
million), vehicles and accessories (US$358 million), crude oil (US$357
million), cashew nuts (US$297 million) and steel products (US$268 million).
Pepper
exports to the US also increased by 99.5% in volume and 7.6% in value.
Despite
the modest export earnings of US$357.6 million, crude oil exports to the US
achieved the highest growth of 111.11% compared to the same period last year.
Timber
exports rebound
Timber
exports to the US, Britain, France, Japan, the Republic of Korea and China
are rising rapidly, yet businesses fear that they are not able to cash in on
bulk orders.
High
input costs recently forced timber processors in China to shift their
production bases to other countries and Vietnam is one of their favourite
destinations.
Do Thi
Bich Sam, director general of Bao Hung Co Ltd in Binh Duong province, says
the number of Japanese orders in her company has increased by 60% since the
beginning of the year.
Vietnamese
wood products are favourites with foreign importers (Photo:internet)
According
to Sam, Japanese importers want to find timber processors outside China to
sample new products and avoid risk as a result of China’s recent policies.
Last
year, Bao Hung raked in US$5 million from timber exports and the figure is
expected to rise to US$8 million this year.
Vietnamese
woodwork is gaining a strong foothold in the global market thanks to their
improved designs and quality.
Ngo
Thi Hong Thu, deputy general director of Truong Thanh Wood Processing Joint
Stock Company in Binh Duong province, says the shifting of orders from China
to Vietnam proves more foreign importers have begun to eye high quality
Vietnamese products at reasonable prices.
Other
timber processors such as Tavico and Dang Long are planning to expand
production to meet foreign orders which have increased by 30% to 50%, mostly
from the US market.
Despite
the positive signals, domestic processors fear that they cannot deliver
shipments on time due to bulk orders and limited financial capacity.
“Although
Vietnam’s major timber markets such as the US, UK, France, Japan, and the
Republic of Korea have recovered strongly, we do not dare to sign short-term
contracts, even six-month contracts, with importers because of our limited
financial, human and material resources,” says Thu.
Nguyen
Quoc Khanh, president of the Handicraft & Wood Industry Association of Ho
Chi Minh City (HAWA), predicts that there will be a massive shifting of large
orders from other countries to Vietnam next year and local businesses need to
take advantage of this golden opportunity by improving production capacity
and preparing qualified human resources.
HAWA
is supporting its members in changing production models to cater to the taste
of importers who prefer indoor to outdoor products.
Statistics
show that timber exports raked in US$2.91 billion in value in the first seven
months of this year, a year-on-year increase of 12.65%. Yet most of the value
fell into the hands of foreign direct investment (FDI) businesses.
FDI
businesses, mostly Chinese and Taiwanese, normally maintain regular customers
and receive large orders thanks to their financial capacity and large
workshops.
Experts
say Vietnamese timber processors have fallen victim to the global economic
and financial crisis which started in 2008 and it has taken big businesses
several years to get their operations up and running.
The
Truong Thanh timber processor, which used to be one of the leading timber
exporters in Vietnam, has worked hard to maintain a consistent level of
operations for the past two years.
Financial
capacity is the biggest hurdle to local businesses whose bank capital accounts
for 70-80% of their total. A high ratio of bad debts has forced banks to
impose quota on businesses, making it difficult for them to access capital.
Facts
and figures:
*
Vietnam is the sixth largest timber exporter globally
*
2012’s export value: US$4.67 billion, up 15.3%.
*
2013’s estimated value: US$5.5 billion, up 10%
Russia-Vietnam
trade to hit US$20 bil by 2020
Deputy
Russian Economic Development Minister Aleksei Likhachev has said he has
every confidence Russia and Vietnam will lift two-way trade turnover to US$20
billion by 2020.
Likhachev
was speaking in an interview granted to Russia’s ITAR-TASS News Agency on
August 23 during his ongoing visit to Vietnam.
He
credits his confidence to the two countries’ reliably fruitful economic and
commerce cooperation, recording average annual growth of 30%.
Bilateral
trade revenue surpassed US$3.6 billion in 2012 alone, and is expected to
climb further to US$4 billion by the end of this year.
Deputy
Minister Likhachev acknowledged the relationship still boasts unrealised
potential, and noted Russian and Vietnamese leaderships are targeting US$7
billion in trade revenue by 2015.
If
current rising trends continue, 2020’s US$20 billion goal is totally within
reach, he affirmed.
Vietnam
attracts US$12.63 billion FDI in eight months
Vietnam’s
foreign investment capital over the past eight months totalled US$12.63
billion, an increase of 19.5% on 2012.
The
Foreign Investment Agency (FIA) reports that as of August 20, almost 770 new
projects were licensed representing registered capital of over US$7.4
billion, a year-on-year increase of 12.2%.
As
many as 296 projects contributed an additional US$5.22 billion in capital,
31.7% higher than the previous period.
FIA
says foreign investment was funneled into 18 industries, of which processing
and manufacturing took the lead with 370 newly registered projects worth
US$10.817 billion, accounting for 85% of total foreign investment capital.
The
real estate sector ranked second with its more than US$588 million
representing 4.7% of total foreign investment capital.
Japan
is the largest of Vietnam’s 47 foreign investors with US$4.35 billion (34.5%
of the total), followed by Singapore (US$3.78 billion, 29.9%) and Russia
(US$1 billion, 8,1%).
Foreign
businesses have invested in 50 cities and provinces across the country, not
including offshore oil projects.
With
an additional US$2.8 billion in investment for the Nghi Son oil refinery, the
central province of Thanh Hoa received the largest proportion of Vietnam’s
total foreign investment capital (23.3% or US$2.815 billion).
Thai
Nguyen province claimed the second largest (US$2.185 billion), while third
went to Bac Ninh province (US$1.39 billion).
Foreign
Direct Investment (FDI) projects have disbursed US$7.560 billion over the
past eight months, up 3.8% on 2012.
The
FDI sector’s export earnings surged 21.7% on last year’s levels to beyond
US$7.560 billion, 66.1% of Vietnam’s total export revenue.
It
imported US$48.297 billion worth of goods, again representing 66.1% of the
national total, and up 25.1% on 2012.
Vietnam
CEO Summit 2013 discusses renovation
“Creative
Economy: Innovation to the success of businesses” was the main theme of the
annual Vietnam CEO Summit, which attracted local and foreign executives,
politicians and scholars.
The
event was jointly organised by Vietnamnet online newspaper and Vietnam Report
JSC in Ho Chi Minh City on August 23.
Participants
shared their experience and opinions on the creative economy and the building
of a creative Vietnamese business, renovation management and competition with
multinational companies as well as growing through renovation.
Economists
agreed that creation and renovation are now an irreversible trend in global
business activities.
The
profitability of capital, machines or muscle is finite, while the value of
the brain and creativeness is infinite. It produces breakthroughs and decides
businesses’ competitiveness, they said.
They
added that it is time for Vietnam’s businesses and economy to reach more
forcefully and comprehensively top innovative ideas, and share the best
practice of innovation solutions in Vietnam that will push the momentum of
Vietnam’s economy.
They
also pointed out three factors that influence the creation of a business the
most, including human resources, operation procedures and philosophy.
Leaders
also play a vital role as pioneers in the renovation of a business, they
said.
First
half of August sees US$456 million trade deficit
Vietnam
Customs reports the national trade turnover over the first 15 days of August
totalled US$11.4 billion, including US$456 million in import surplus.
The
cumulative 2013 trade value stands at US$158.38 billion so far, up 15.7% from
a year earlier. Export revenue contributed US$78.75 billion, up 15.4%, while
imports rose 16% to US$79.64 billion.
Export
commodities including plastics, cameras, and spare parts enjoyed slight
increases in the reviewed period, but computers, electronics, phone handsets,
vehicles, machinery, and rice all suffered sharp declines.
The
foreign-invested sector’s export earnings fell 14.4% to US$3.28 billion in
the first half of August. Since January 2013, the sector’s export revenue
totalled US$47.56 billion, rising 26.9% from 2012 levels and accounting for
60.4% of Vietnam’s total export value.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Thứ Ba, 27 tháng 8, 2013
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