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BUSINESS IN BRIEF 29/11
GE
to expand operations in Vietnam
General
Electric, an American multinational corporation, is considering expanding its
wind turbine plant in
VnExpress
quoted GE Vice Chairman John Rice at a press briefing in
GE
poured US$110 million into the first phase of the
International
Energy Agency (IEA) and World Bank statistics show
About
8.6% of
GE
Vietnam General Director Nguyen My Lan said
Vietnam’s
bond market fastest growing in East Asia
The
scale of the bond market in
Despite
representing a national drop, it still obtained the highest growth among
emerging markets in
ADB
has resealed its quarterly report on the Asian bond market, saying that from
July to September this year the government bond market of
However,
The
report said
Meanwhile,
the region’s local currency government bond market expanded 2.1%
quarter-on-quarter, up from 1.1% quarterly growth in Q2 in 2013, to level off
at US$4.4 trillion.
The
Asia Bond Monitor reviews recent developments in East Asian local currency
bond markets along with the outlook, risks, and policy options. It covers
ASEAN’s member countries plus
The
Manila-based ADB is dedicated to reducing poverty in
The
Mekong Delta has targeted an annual rice output of 24 million tonnes from
2020 to 2030 to remain as the country’s top rice producer.
To
reach the goal, the region is required to zone 4.3 million hectares of land
for rice farming from now to 2030.
Localities
are also working with research institutes to apply new biotechnology allowing
the creation of new rice varieties and improving existing ones.
From
now to 2015, Mekong Delta provinces plan to increase the mechanisation of
farm work to minimise post-harvest and storage losses. They are set to
popularise sustainable cultivation techniques to enlarge high-quality rice
areas in order to satisfy domestic and international demands.
From
2015 onwards, the localities will multiply cultivation under the Good
Agricultural Practices (GAP) so that the area under clean rice will account
for at least 40% of rice land.
They
plan to expand the processing technology to reduce the sector’s dependence on
export and turn rice into materials for the processing industry, thus raising
rice value and creating jobs for locals.
According
to the Mekong Delta Rice Research Institute, the region increased its rice
output from 4.2 million tonnes in 1976 to 24.5 million tonnes in 2012.
Vietnamese
bank makes deal with foreign consultant
The
Vietnam Public Bank (PVcomBank) on November 27 agreed a deal with the leading
global advisor Boston Consulting Group (BCG) to build a business strategy for
the firm.
The
six-month project aims to make the bank one of the top credit institutes in
During
the project, BCG will help improve capacity for the bank’s staff and
officials, while conducting a technology transfer to the bank.
Founded
in 1963, BCG is a global management consulting firm and the world's leading
advisor on business strategy, with 79 offices in 44 countries.
It
partners with clients from the private, public, and not-for-profit sectors in
all regions to identify their highest-value opportunities, address their most
critical challenges, and transform their enterprises.
PVcomBank
officially debuted on October 3 with assets totalling VND100 trillion (US$4.7
billion) and charter capital of VND9 trillion (US$423 million).
It was
founded after shareholders of Western Bank and PetroVietnam Finance
Corporation, approved a merger.
The
establishment of PVcomBank is part of a plan by the State Bank of
Aquatic
products introduced in Australia
Vietnamese
aquatic products were introduced to Australian importers and consumers at a
dinner meeting in
The
event was jointly organised by the Vietnamese Consulate General in
At the
meeting, Consul General Mai Phuoc Dung highlighted the key products of
He
voiced hope that Vietnamese aquatic products will be better known by consumers
in
Meanwhile,
SIIA Chairman Norman Grant introduced the process of farming, fishing and
processing for a number of Vietnamese aquatic products.
He
commented that Vietnamese products have high nutrition and quality, meeting
international sanitation requirements.
Various
dishes made from Vietnamese aquatic products were tabled at the event,
earning praises from diners, who included many restaurant owners.
Business
confidence improves
Business
confidence improved in
According
to a business-confidence index survey by Regus, which claims to be the
world's biggest provider of flexible work space, business confidence in
The
report also indicated that Vietnamese businesses wanted to improve staff
retention and find cost-effective service providers over the next 12 months,
in a bid to lower costs and preserve expansion plans.
The
gap in business confidence between mature and fast-growing economies fell as
efficiency gains and improved competitiveness bolstered growth in emerging
markets.
Findings
also showed that firms prioritised cost-saving initiatives, ranging from
talent retention to flexible work conditions, to improve gains on existing
assets and enable fast and flexible expansions.
While
mature economies are showing confidence gains as their economic outlook turns
positive, the emerging world is slowing the pace of growth as businesses aim
to become increasingly efficient to promote productivity," said Regus
Meanwhile,
the report also showed companies revenue growth in
The
top four outcomes for
Local
building materials on show in Dubai
Eighteen
Vietnamese enterprises are participating at the Big 5 Expo in
The
Vietnamese businesses are showcasing world-class designs of tiles, wood,
decorative stone and electrical cable, as well as other construction products
which have proved successful brand names in the domestic market.
According
to the trade promotion centre VChoice, which brought the enterprises to
VChoice
is also helping domestic businesses seek investment co-operation in the
fields of manufacturing, construction materials and interior decor products
to supply the Middle East and
Phuong
said the
Fake
products continue to flood marketplace
Government
agencies, consumers, manufacturers and the entire community should work
together to fight phony or counterfeit products, delegates told a conference
in
Infringement
of intellectual protection rights (IPR) is occurring more frequently,
affecting licensed companies and consumers, said Do Huu Quang, deputy head of
the Market Management Department under the Ministry of Industry and Trade.
Vietnamese
consumers are presented with an abundance of goods, but it is difficult for
them to distinguish between genuine and fake products, he said.
Fake
goods are everywhere and in many sectors, from fashion accessories to
agricultural materials and cosmetics, with direct impact on consumers'
health, the environment, social security and producers. They are made both
domestically and abroad and then smuggled into the country, he said.
Delegates
at the seminar said enterprises have become more aware of IPR and made an
effort to protect it, but many others have not paid much attention to this
issue.
Many
enterprises, when they discover that their designs and trademarks have been
copied, they do not have the courage to denounce these actions to authorised
agencies, Quang said.
Even
though more inspections have occurred, as well as increased fines, a lack of
resources and personnel have caused the battle against fakes difficult to
implement.
In
addition, sanctions imposed on these violations have not deterred the
practice, he said.
Luong
Hoang Hung, deputy general director of the Vietnam Intellectual Property
Association, said businesses have a role to play by improving their public
communications and helping people identify fake and substandard goods.
Many
delegates at the meeting agreed that authorities should publicise the names
of violators in the mass media.
Consumers
must protect themselves by purchasing goods at prestigious shops and
websites, they added.
Nguyen
Thanh Tai, director of NewTech Company, said enterprises need strategies to
protect their trademarks from counterfeit goods and should co-operate with
government agencies in enforcement procedures.
Nguyen
Thanh Binh, head of the National Office of Intellectual Property of Vietnam
in
But
Binh noted that, with current technology, a new product can be quickly
analysed and copied. However, this makes owning IP rights even more
important.
Companies
employing IP protection effectively have been able to create prestigious
trademarks. This has also helped them improve competitiveness in both local
and international markets, and increase revenue, he said.
The
conference was organised to mark Day for Fighting Fake Goods on November 29.
Retail
sector posts 12% profit rise
The
country's total retail sales and service revenue in the first 11 months of
this year reached VND2,386 trillion (US$113 billion), the General Statistics
Office (GSO) reported.
The
figure represented a 12.6% year-on-year rise, the highest level so far this
year, the GSO said, adding that the increase will be 5.5% if price hikes are
excluded.
Le Thi
Minh Thuy, head of the GSO's Trade Department, said the consumer price index
in November grew 0.34%, the lowest level in the past five years, sparking an
increase in retail sales and service revenue.
Thuy
said that purchasing power has risen, contributing to revenue growth.
She
added that the increase is only one-third of the level recorded during the
same period in 2010 due to low incomes and tighten spending.
People
are only buying essential goods, and spending is limited on hotel and
restaurant services.
The
trade sector, which accounted for 76.8% of the total, rose 12.2% over the
same period last year, while hotel and restaurant services were up 15.3%.
The
service sector posted a 13.4% year-on-year increase, followed by the tourism
industry with a 1.8% jump.
The
individual economic sector accounted for half of the total retail sales and
services, reaching VND1,201 trillion (US$57 billion).
It was
followed by the private sector with VND824.6 trillion (US$39 billion),
accounting for 35.3%.
Several
items posted sharp decreases, including gold, motorbikes and electrical
products.
Nearly
100 domestic and foreign experts shared experience in drawing up and
implementing a new growth strategy in
Deputy
Minister of Industry and Trade Nguyen Cam Tu said like other APEC member
states, the Vietnamese government has started renewing its growth paradigm
since 2009, with priority given to restructuring labour and sectoral
mechanism, and improving the operational efficiency of the market economy to
achieve rapid and sustainable development.
Dr
Nigel Finch from
The
new strategy will help the member economies to benefit from the global
economic recovery and protect the environment towards a green economy.
Introducing
The
strategy focuses on the financial-monetary and fiscal policy reforms and
private investment promotion.
However,
he said
Kensuke
Tanaka, an official of the Organisation for Economic Cooperation and
Development (OECD), pointed to the fact that most Southeast Asian nations
have now shifted to increasing exports, achieving green growth, generating
jobs and reducing poverty.
He
underlined the need to increase the quality of human resources and education,
and develop small- and medium sized businesses, especially the private
sector, considering this a key factor behind dynamic growth.
To
reap a success, according to the OECD expert,
He
said
The
new growth model is now based on productivity rather than production, which
has brought initial success to the
Dr Le
Xuan Sang, an official from the Central Institute for Economic Management
(CIEM), said the global economy is likely to face uncertainties and risks in
the coming months.
World
leading economic and financial institutions all lowered global growth forecasts
made in late 2012. But they were optimistic the global economy is on the road
to recovery, projected to grow by 2.4% in 2013 and 3.2% in 2014.
The
Vietnamese government has approved a master plan on economic restructuring,
with a focus on State businesses, commercial banks, and the stock market.
Delegates
agreed that to realise the new growth strategy, Asian countries need to pay
more attention to regional integration, tightly control capital sources,
shift their growth paradigm, improve productivity, and develop services.
Vietnam
secures rice contract with the Philippines
Vietnamese
businesses have beat their Thailand and Cambodian rivals in a bid to supply
500,000 tonnes of 25% broken rice to the Philippines, according to the
Vietnam Food Association (VFA).
Rice
will be delivered to its importers from December 2013 to March 2014, VFA
President Truong Thanh Phong revealed on November 27.
It has
exported 5.93 million tonnes of rice FOB for US$2.548 billion as of November
21, 2013. Fragrance rice for export is expected to amount to 700,000-800,000
tonnes this year, an increase of 70% from the previous year.
Vietnam,
Laos,
The
State auditing agencies from
The
three Heads of the State auditing agencies introduced the current auditing
system in each country and pointed out future advantages and disadvantages.
They
shared their experiences in helping the Government implement economic
development strategies. They discussed measures to boost cooperation between
the three agencies and agreed to frequent exchange visits to increase the
capacity of auditors and auditing agencies.
At the
conference, the three State auditing agencies agreed on the desire and need
for closer cooperation in order to fulfil their development objectives.
The
next conference is scheduled for
Promoting
Vietnam-Thailand trade ties
The
view was shared by Vietnamese and Thai economic experts and businesses at a
joint forum in
Vietnamese
ambassador to Thailand Ngo Duc Thang revealed two-way trade turnover between
Since
the two countries entered into a strategic partnership in June 2013 they have
achieved significantly better economic results and improved trade and
investment cooperation.
Thang
acknowledged in recent times, Thai businesses have cooperated effectively
with their Vietnamese partners in the central region, reaping practical
benefits for both sides.
“The
forum is the first step towards closer ties between localities and businesses
in the central region of
The
forum gave Vietnam Trade Counselor Nguyen Thanh Hai, representatives from the
Ministry of Planning and Investment (MPI), and leaders of Quang
Trinh
Minh Van, Director of the Investment Promotion Agency in the central region
under the MPI, concurred that the information disseminated at the event will
prove extremely useful for businesses from both countries.
“The
exchange is expected to help deepen Thai businesses’ understanding of the
current investment environment and encourage them to further invest in
He
expressed his hope that bilateral investment, trade and tourism cooperation
will continue to grow and flourish in the future.
Chokedee
Kaewsang, Vice Secretary General of the Board of Investment (BoI) of
The
Thai Government encourages its businesses to invest in
Companies
from both countries shared information and examined ways to establish
partnerships at the forum.
US$8
billion for leather shoe exports in 2013
According
to the General Department of Customs, the leather shoe sector achieved an
impressive export recovery in October, pocketing US$716.7 million, up 30.51%
from the previous month.
Its
export value nosedived 3.11% in September, 4.17% in August, 2.9% in July and
8.44% in June.
In 10
months, the sector earned US$6.7 billion from exports, a year-on-year increase
of 15.13%.
The
This
was closely followed by the
Twelve
foreign markets attaining a growth rate of more than 100% in the first three
quarters included
Vietnam
joins int’l trade expo in Malaysia
Vietnamese
fine arts and handicraft businesses are showcasing their products at an
annual international trade and export exhibition in
Themed
“Revitalising Export Growth” Intrade Malaysia 2013, the seventh of its kind,
aims to provide opportunities for global businesses to network, form
partnerships, and exchange ideas, knowledge and information..
The
event has housed nearly 500 stands from over 400 domestic and foreign
enterprises and attracted representatives from 18 countries worldwide.
It
highlights the four main areas of industry predicted to stimulate
economic growth, namely building materials, electricity, electronics and
information and communication technology, lifestyle and manufacturing
support.
Joining
the exhibition, Vietnamese businesses hope to promote their traditional
handicraft products and introduce to international friends to the country’s
investment potential
Intrade
Malaysia 2013, organised by The Malaysia External Trade Development
Corporation (MATRADE), is expected to attract 9,000 visitors.
Exports
to RoK surge 21%
In
October alone exports to the market hit more than US$725.4 million, up 20%
compared to the previous month.
Among
major export items in the reviewed period, garments took the lead, raking in
more than US$1.3 billion, up 49.2%.
Garment
exports are expected to keep growing in the remaining months of the year,
making the RoK one of Vietnam’s key garment consumers after the US, EU and
Japan.
Crude
oil and means of transports placed second and third in terms of export value.
Other
products also experiencing high export growth included footwear, wood and
timber products, computers, electronics and components, and mobile handsets.
2013
export turnover to hit over US$132 billion
According
to the General Statistics Office (GSO), its export revenue was estimated at
US$12.3 billion in November, representing an increase of 18.9% compared to a
year earlier.
The
11-month figure showed a year-on-year increase of 16.2%, with the
foreign-invested sector making US$81.2 billion (up 23.5%) and the State-owned
sector US$39.9 billion (up 3.6%).
Key
export items included telephones, garment and textiles, electronics,
computers and spare parts, footwear, plastics, timber and leather products,
and fruit and vegetable.
The
Ministry of Industry and Trade (MoIT) has fixed the yearly export turnover at
US$126.1 billion, 10% higher than last year. With the rising export growth in
recent months,
Sun
Wah says will diversify property investments
Hong
Kong’s Sun Wah group will diversify its investments in
Jonathan
Choi told the Daily on Monday that the group would consider to invest in
industrial parks and given the group’s relationships with international
companies, Sun Wah will bring more investors to
Choi
was speaking at a press briefing to introduce the community event “Sun Wah
and Friends” that is scheduled for December 1 in the campus of the Saigon
Pearl residential complex on
Sun
Wah, established in
Its
investment projects in
Tra
fish farming in dire need of sustainable development
A
seminar on tra fish farming took place in
The
seminar was organized in the context that tra fish as the local major product
holding a global market share of over 90% has been mired in troubles since
2008, with a series of companies being on the verge of bankruptcy and farmers
abandoning their farming areas.
The
Vietnamese catfish is a strategic seafood product for exports. The fish was
seen as a breakthrough phenomenon in the country when its average farming
productivity reached up to 500 tons a hectare between 2000 and 2012.
Meanwhile, the total yield was 1.3 million tons, export products exceeded
600,000 tons and export value amounted to US$1.8 billion a year in the same
period.
Furthermore,
the tra fish industry only uses a small area for farming, at some 6,000
hectares equivalent to only 1% of total shrimp farming area and has high
competitiveness without requiring State investments. The industry creates
jobs for more than 300,000 workers, contributing to changing the nation’s
economic structure, especially in rural areas in the Mekong Delta.
However,
after the period of such strong growth, the tra fish industry has been facing
many difficulties since 2008, resulting in a slowdown in production and
exports.
According
to the Ministry of Agriculture and Rural Development, tra fish farming area
only totaled about 5,600 hectares in this year’s January-October, down 13%
over the same period in 2012. Similarly, the tra fish yield volume only
posted 732,000 tons in the ten-month period, dipping 11% year-on-year.
The
prestige of Vietnamese tra fish products’ quality in many foreign markets has
been hurt seriously, with the ratio of the added value of the products
staying low, at less than 1% of the total tra fish export value.
Nguyen
Huu Dung, vice chairman of the Vietnam Association of Seafood Exporters and
Producers (VASEP), noted tra fish farmers and enterprises had been
experiencing a really tough period, with numerous businesses facing the
threat of bankruptcy while farmers have left their farming areas abandoned.
These
difficulties are seen right in the EU as the major importer of
To
stabilize and manage tra fish farming in a much more effective way, Dung insisted
that tra fish farming, processing and exporting activities must be treated as
conditional business.
Besides,
to minimize the demand-supply imbalance given the lack of a connection
between material production and processing, exports and consumption, VASEP
suggests applying the quota mechanism to tra fish farming. To do so, the
agriculture ministry needs to work with provincial governments annually to
set the quotas of tra fish farming volume for every province, and the quotas
will then be allocated to every farming area in line with their natural
conditions and capacity, according to the association.
LG
launches curved-screen TVs in
LG has
launched the first curved-screen television in
With a
thinness of 4.3 mm, the TV’s screen is curved naturally ensuring the same
distance from a viewer’s eyes to all points on the screen.
The
new TV using the WRGB OLED technology offers fine pictures and is designed
with crystal support made by Japanese Kyocera. It has a loudspeaker system
which is only 1 mm thick but has an output of up to 40W.
According
to Ko Tae Yeon, general director of LG Electronics Vietnam, LG is the first
brand in the world to launch onto the market the curved-screen OLED TV as a
high-class item.
The
first curved-screen OLED TV that LG offers for sale in
The
curved-screen TV is not only a three dimension (3D) one but also a smart one
using the passive 3D technology with a strong 3D effect, with the usage of 3D
glass safe and convenient. The new product of LG is already available in
Offshore
fishing fleet to be expanded
To
ensure the sustainable development of the local fishing industry, the Ministry
of Agriculture and Rural Development has set a target of increasing the fleet
of large fishing boats with a capacity of over 90 CV each to focus on
offshore catching in the next few years.
In a
restructuring plan to increase the seafood industry’s added value and ensure
its sustainable development, the ministry has set the target to develop the
industry in a sustainable way. Therefore, one of the targets of the plan is
to reduce the onshore fishing volume and increase the offshore volume.
According
to the plan, the fishing volume will be kept stable at 2.4-2.6 million tons
annually by 2020 with the onshore volume being lowered to 0.8-0.87 million
tons annually from the current 1.2 million tons. Meanwhile, the offshore
fishing volume will be raised from one million tons annually to 1.4-1.53
million tons as per the plan.
There
are a total of some 130,000 fishing boats nationwide, which will then be cut
down to around 110,000 boats in the next seven years, the ministry reports.
As a breakdown, the number of fishing boats of less than 20 CV will be
reduced to 34.5% from 49% while that of fishing boats of over 90 CV will be
raised from 20.7% to 27.3% and that of 20-90 CV will be increased to 38.2%
from 30.4%.
At the
same time, it is also necessary to make changes to exploiting activities to
focus on catching high-value seafood products like shrimp, cuttlefish,
octopus and mackerel as well as applying new technologies to mitigate
after-harvest losses from the current level of 20% to 10% in 2020.
FDI
firms raise material area investment
Some
foreign direct investment (FDI) enterprises are raising investment in
material areas in
Mondelz
International Company has opened the first coffee training center for farmers
to help them improve production and business. This is part of the
enterprise’s sustainable development program titled “Coffee Made Happy” that
pledges to invest a huge sum to support farmers until 2020.
According
to a representative of Mondelz International, the program will train 1,500
farmers to help them raise coffee output and quality. Farmers are expected to
provide around 7,000 tons of standard coffee for the enterprise.
Meanwhile,
Metro Cash & Carry Vietnam has invested VND5 billion on giving clean
seafood production training to farmers. The program organized via a public
private partnership project with the Ministry of Agriculture and Rural
Development has brought over 3,000 tons seafood to Metro.
Khuat
Quang Hung, head of Public Affairs & Corporate Communications General
Management of Metro Cash & Carry Vietnam, said that the enterprise will
expand the model to help farmers raise incomes and launch safe products onto
the market.
“Building
good material areas is the most important step in exploitation of the
domestic market. Enterprises cannot convince consumers if they cannot secure
safe products,” Hung said.
To
support FDI enterprises, developed nations have launched many programs to
provide competitive farm produce for the local market.
Speaking
at a seminar last week, Joop Scheffers, the
However,
local people are concerned about substandard China-made veggies and fruits in
the North.
“Via
the project on establishing veggies value chain in
100%
foreign-owned securities firms get nod
Foreign
institutional investors are likely allowed to acquire a 100% stake in
securities enterprises if they meet the required conditions, according to a
draft rule.
The
Ministry of Finance has submitted to the Government a draft decision on
foreign ownership limit increase, under which foreign individuals and
institutional investors can generally acquire up to 49% of the shares of an
existing securities company.
However,
a foreign bank, a foreign securities company or a foreign insurance firm
which has been in operation for at least two years can be permitted to
acquire 100% of the shares of an existing securities company or set up a new
100% foreign-owned securities company subject to satisfaction of certain
conditions.
For
instance, the investor is required to have made profits for at least two
years and have no accumulative debts. The enterprise must not be under
special scrutiny or have any other warning conditions.
These
requirements, however, are complicated and will cause challenges for local
brokers in seeking partners.
SSC
strengthens market monitoring
Supervision
of the stock market is being tightened, Director of the State Securities
Commission (SSC)'s Inspection Department Nguyen The Tho said to Dau Tu Chung
Khoan (Securities Investment) newspaper.
In the
first ten months of this year, the commission analysed 70 stocks with unusual
transactions and examined some cases further.
In the
HCM City Stock Exchange, three cases of securities market manipulation were
handled this year, in comparison to only one or two cases in previous years,
Tho said.
According
to current regulations, stocks found with unusual transactions are reported
to the State Securities Commission for analysis of cash flow and collusion
between investors.
However,
Tho said these tasks remained difficult because they required the
co-operation of the banks and other relevant organisations.
According
to Le Thi Tuyet Hang, director of the Transaction Supervision Department of
the HCM City Stock Exchange, in some countries with developed stock markets,
stock exchanges would warn investors about unusual transactions.
In
High-tech
park plan announced
A
detailed plan for building a high-tech zone in the South Phu Yen Economic
Zone to concentrate resources for high-tech industries has been announced.
The
high-tech zone, covering a total area of 369.96 hectares, will be built in
Dong Hoa District, central
Businesses
will have access to an industrial concentration of high-tech industries
dealing with building materials, electronic assembly equipment, the
production of components for and assembly of automobiles, and machining,
among other things.
Expo
promotes industrial parks
An
exhibition to promote investment in industrial zones with the theme
"Linking co-operation and promoting investment in industrial parks in
The
exhibition is expected to attract the participation of hundreds of housing
companies. It will include a seminar where participants will share
experiences in attracting industrial investment to
Can
Tho aims to attract more investment in industrial areas
The
Cuu Long (Mekong) Delta city of Can Tho seeks domestic and foreign direct
investment in 27 projects worth a combined VND28.18 trillion (over US$1.34
billion), local authorities have said.
Among
these large-scale projects is the second phase of Thot Not Industrial Zone
(IZ), valued at VND3.16 trillion (US$151 million); the infrastructure
development of O Mon
IZ,
valued at VND864 billion ($41.14 million); and a $27.2 million factory
manufacturing machines used for agriculture.
The
city also called for investment in other projects involved in seaport development,
the establishment of urban service areas, and the high-tech and tourism
industries.
In
order to attract further investment, the city has continued to foster
administrative reforms in reducing the amount of time it takes to grant
licenses and lowering the land lease fee, said the provincial Department of
Planning and Investment's deputy director Le Duong Cam Thuy.
An
Investment and Trade Promotion Centre was also set up to provide information
and connect the enterprises with the local authorities, she stated.
The
city also moved to complete its electricity, water supply and transport
infrastructure; develop supporting industries; and provide high-quality
manpower to foreign-invested projects.
In
addition, the city has stepped up trade promotion activities and strengthened
co-operation with other provinces in the region and the southern economic hub
of
The
Foreign Investment Agency's latest report revealed that the city has
attracted 63 foreign-invested projects, with capital totalling $781 million
during the first 11 months of this year.
This
has helped the area rank 34th among the 63 provinces and cities in terms of
FDI attraction, it said.
Trade
ministry approves promotion
The
Ministry of Industry and Trade has approved a fourth round of a trade
promotion programme with 131 projects worth VND94 billion (US$4.4 million).
Due to
limited funding, the Ministry is pushing exports of fisheries, textiles,
footwear, agricultural products and furniture.
In
parallel with the implementation of the export programme, the trade promotion
programme will continue activities to develop the domestic market,
particularly in distribution channels.
Steel
company to open new factory
Wada
Yuji, general director of Maruichi Sun Steel Joint Stock Company (SUNSCO),
said his company would open a new factory next month.
Maruichi
Sun Steel specialises in producing galvanized steel coils, colour coated
steel and pipes, with total investment of around US$120 million.
The
company was established in 1996 as the first 100 per cent foreign invested
steel company in
Opportunities
to reach largest Trans-Pacific partners: officials
When
the Trans-Pacific Partnership (TPP) is put into place, Vietnam will benefit
from its position as a TPP member, and the country’s garment and textile is
expected to benefit a lot. However, the deal offers both good opportunities
and challenges. Insight from Vietnam Business Forum.
Through
negotiations of the Trans-Pacific Partnership (TPP), the participating
countries have reached a preliminary agreement on many important issues such
as tariff reductions, textiles, services and investment liberalisation. For
Vietnam, the TPP offers both good opportunities and challenges.
This
was a conclusion of the conference "Agreement on Trans-Pacific
Partnership and the participation of Vietnam" held recently by the
Ministry of Industry and Trade in cooperation with the Vietnam Chamber of
Commerce and Industry (VCCI).
Minister
of Industry and Trade Vu Huy Hoang said: "Agreement on the Trans-Pacific
Partnership (TPP) is a high-standard free trade agreement (FTA), regarded as
a model treaty of the 21st century."
The
TPP currently has 12 members including Brunei, Canada, Chile, the US, Malaysia,
Mexico, Japan, New Zealand, Australia, Peru, Singapore and Vietnam.
Tran
Quoc Khanh, Deputy Minister of Industry and Trade, chief begotiator for the
TPP, said the TPP has conducted 19 formal sessions and multiple mid-sessions,
including two ministerial sessions. Ministerial negotiations will take place
in Singapore early next month.
According
to the statement of the TPP's leaders at a meeting on the sidelines of the
APEC summit, held in Indonesia from October 3 to October 8, the TPP countries
are trying their best to promote the basic negotiations to finish the
negotiations at the end of 2013.
Deputy
Minister Khanh said: "Through the negotiations, the participating
countries have reached a preliminary agreement on several important issues
such as tariff cuts, textiles, liberalisation of services and investment,
government procurement, and intellectual property."
Besides,
nearly 20 other areas in the progress of negotiations include the issues
related to the open markets for goods, rules of origins, TBT, SPS, provisions
of the cross-border services, financial services, e-commerce, investment,
intellectual property, government procurement, labour, environment, and
state-owned enterprises, etc.
"Participation
in TPP would help Vietnam improve export markets structure, open more markets
for Vietnamese goods, participate in regional and international production
chains, facilitate the economic restructuring and innovate the growth,
improve the institutional environment and increase the attractiveness of the
foreign and domestic investment, create new production capacity as well as
jobs for workers," said Khanh.
The
TPP aims to eliminate 100 percent import duty, of which 90 percent will be
removed immediately once the agreement takes effect. The opportunities to increase
exports and competitive advantages of Vietnamese goods in major markets such
as the US or Japan will be bigger.
Le
Tien Truong, Vice President of the Vietnam Textile and Apparel Association
(VITAS) cum Deputy General Director of Vietnam Textile and Garment Group,
also pointed out the advantages this industry will gain after joining TPP.
Among
the 16,000 tariff lines in the HS 8 digits, the textile imported to the US
market is regulated under Chapters 50 to 63 and Vietnam has exported to the
US with approximately 1,000 tariff lines at the average MFN tax of 17-18
percent. The TPP is expected to cut tariffs gradually to 0 percent.
According
to the calculation, textile exports from Vietnam to the US could grow by 13
percent to 20 percent per year in the period 2013 to 2017 and may reach from
25 billion USD to 30 billion USD in 2025.
However,
Truong also said the TPP will provide both good opportunities and challenges.
The challenges may relate to the rules of 'yarn forward' origin, tax cuts and
the lower competitiveness of the textile industry of Vietnam.
Experts
also pointed out a number of industries in Vietnam, which will certainly have
difficulties joining the TPP. Among those areas, we could list some such as
agricultural products, livestock related to chicken, pork, and beef industry,
which are known as the advantages of Australia and the US. Besides, Vietnam's
automobile industry will face difficulties when the country fully opens its
market to the US, Japan and some developed markets.-
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Năm, 28 tháng 11, 2013
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