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BUSINESS IN BRIEF 21/12
LG
Electronics to build $1.5b factory
LG
Electronics Viet Nam has announced plans to build a US$1.5 billion factory
complex in
Spanning
more than 400,000 square metres, the complex will be built in two phases from
2013-17 and 2017-23 and is expected to produce annual revenues of $1 billion
by 2016.
LG
will use the factory to manufacture various equipment, including electronic
products for cars, smart TVs, washing machines, vacuum cleaners, and smart
phones for export to some 50 countries.
Exports
to
Among
The
trade office also predicted that two-way trade would hit $3.3 billion this
year and $3.5 billion in 2014.
Paper
expo to boost quality
A pulp
and paper exhibition, to be held in
At
least 100 domestic and foreign companies would participate in the three-day
event, bringing together officials from companies involved in advanced
technologies, machinery, and chemicals used in the industry, as well as pulp
and paper products.
Vu
Ngoc Bao, vice chairman of the Viet Nam Pulp and Paper Association, said the
country's consumption of paper products this year was about 3 million tonnes,
of which almost half were imported.
VEAS
will also organise two other exhibitions, for the rubber and tyres and
coating industries, alongside co-operation with partners in
New
steel plant opens in HCM City
SMC
Trading Investment JSC inaugurated its new steel manufacturing plant, worth
VND175 billion (US$8.33 million), in
Covering
12,500 sq.m in the city's Tan Tao Industrial Zone, the plant will manufacture
80,000 tonnes of steel annually.
The
HCM City Department of Planning and Investment will begin allowing businesses
to register through the internet.
Internet
registrations will begin on January 2, 2014 for joint stock companies and
limited liability enterprises with more than two members.
Further,
after January 15, one-member limited companies and private firms will be allowed
to register via the internet.
The
department will provide instructions on the internet to help firms complete
their documents in 48 hours (except weekends and national holidays), and it
is expected to handle the processing of the online forms within four days.
Also,
companies can use a delivery service from HCM City Posts to have government
registration approval documents delivered to their offices.
Bank
loans $152m for power cables
Vietcombank
and the National Power Transmission Corporation (NPT) signed a contract worth
VND3.2 trillion (US$152.3 million) yesterday to finance a 500kV power line
linking two northern provinces, Lai Chau and Son La.
The
VND4 trillion ($188 million) project, to be built over 158.5 kilometres,
crosses the districts of Muong La, Thuan Chua, Tuan Giao, Muong Cha and Muong
Lay.
The
new line will connect the Son La Hydro-power plant with the national power
grid, while linking small hydro-power plants in the north-western region to
the national power network.
The
project would ensure a power supply from the plants to stations in the north
and enable the national power system to operate without interruption.
This
key national project is scheduled to become operational by 2015 and begin
transmitting electricity from the Son La Hydro-power plant.
The
construction of the $3.2 billion plant was begun on December 2, 2005 and is
expected to be completed by 2015.
The
1,200MW project would supply 4.67 billion kWh of electricity annually to the
national power grid.
Speaking
at the signing ceremony, Nguyen Manh Hung, NPT's general director, said the
country needed some $1 billion each year to invest in power transmission
lines, since line construction has been slower than electricity production.
Vietcombank
has provided credit for 17 important power projects in the fields of power
generation, transmission and distribution, with total capital of VND23
trillion ($1.09 billion).
Vietcombank
and EVN also signed a bilateral co-operation agreement in 2010 to develop
comprehensive relationships in several areas.
Vietcombank
has been one of the country's largest commercial banks, with a network of
more than 400 branches. Officials anticipate opening an additional 15
branches nationwide within the next year.
Cashew
growth belies problems
The
strong growth in recent years notwithstanding, the cashew industry encounters
many challenges, including a fall in area, threatening its development.
This
requires a development strategy to enable the industry to develop in a
sustainable manner in the coming years, according to the Department of Crop
Production.
The
department along with other agencies and the Viet Nam Cashew Association
(Vinacas) has drawn up one for the period until 2020, Nguyen Van Hoa, the
department's deputy general director, said.
It
held a seminar in
The
industry has achieved impressive growth, making Viet
Exports
were worth US$1.47 billion last year, the country's fourth largest
agricultural exports after rice, coffee, and rubber. They are expected to top
$1.8 billion this year, he said.
But it
now faces several challenges, including a shrinking of cultivation area and
unstable output, Hoa said.
Nguyen
Nhu Hieu, deputy head of the department's industrial crop division, said
ageing trees and abnormal weather patterns have decreased yields, and many
growers prefer other crops for higher profits, which has reduced the area
under the nut.
"Area
under cashew shrank by 107,392ha in the last seven years to 326,037ha last
year.
"Domestic
production feeds only 30 per cent of processing capacity and is
reducing."
He
said the development strategy envisages the area remaining at
300,000-320,000ha, producing 400,000 tonnes of raw cashew nuts a year,
meeting 40 per cent of processing demand.
The
industry plans to increase the rate of fully processed nuts to satisfy the
requirements of customers, add more value, and boost domestic consumption, he
said.
The
strategy also calls for reviewing and tweaking cashew zoning plans, replacing
aged cashew trees, developing inter-cropping models, and developing
high-quality seedlings and advanced farming techniques.
Modern
technologies and equipment will be used, products diversified to meet
increasing demand from customers, companies will focus on building brands and
promoting their products.
Nguyen
Duc Thanh, Vinacas chairman, urged the Government to support farmers in
planting cashew trees to replace old ones, adopt policies to encourage firms
investing in deep processing, and strengthen inspection of exports.
Nguyen
Thi Kim Nga, chairwoman of the Binh Phuoc Cashew Association, said the
strategy should help improve communications to enable farmers to understand
the Government's new policies, embrace new technologies, and obtain other
benefits.
Nguyen
Van Rung, a cashew grower in southern
At the
seminar, 51 outstanding cashew farmers from 10 provinces received a
Certificate of Merit from the Ministry of Agriculture and Rural Development.
Vinacas
was conferred the Labour Medal, Second Class, for its contribution to
socio-economic development.
Border
trade needs nurturing
The
Government needs to come up with flexible policies to exploit the significant
potential that exists for developing border trade in the country, experts
say.
According
to the Central Border Trade Steering Committee,
Border
trade has grown at around 10 per cent each year reaching a total of US$72
billion during the 2008-13 period, accounting for an increasing portion of
bilateral trade that the country enjoys with its three neighours.
For
instance, the border trade has accounted for 30 per cent of the total
bilateral trade between
One of
the busiest trading outposts is the Mong Cai border gate in northern
Such
high numbers have shown that border trade between the province and
Hoang
Minh Tuan, head of the Border and Mountainous Trade Department under the Ministry
of Industry and Trade, said the borders have 285 border markets, border gate
markets and markets in border gate economic zones. These markets have seen
high growth in business activities and border gate economic zones have become
dynamic trade centres.
However,
management of border trade activities has been implemented under general
trade policies, so they have not helped promote the potential of border
trading, Tuan told the Vietnam News Agency.
Trade
policies for the three countries have had to change many times and trade at
the border gates between
Nguyen
Van Binh, deputy chairman of the People's Committee of northern
Also,
a representative from the Ministry of Defence said the Governemtn should
provide direction from the centre to the provinces in management of border
trade activities, due to demands on developing markets and enterprises.
Therefore, the steering committee should be directed to quickly collect
information about market demands, including goods, prices and challenges for
making market forecasts.
Analysts
upbeat on securities outlook
While
investment channels, such as gold, real estate and banking, seem not
particularly upbeat, securities companies in
Saigon
Securities Inc (SSI) said that with stable currency and inflation,
expansionary fiscal policy, and active participation from foreign investors,
VN-Index might close higher in 2014 than it did this year.
The
local market would benefit from local factors, such as the Government's
greater emphasis on sustainable growth, the comprehensive restructuring of
State-owned enterprises, the growing banking sector and the further
integration into the global economy.
SSI
assessed the Government policy of expanding room for foreign investors'
ownership as an impetus for the entire market, as it would attract additional
investment inflows.
Le Duc
Khanh, investment strategy director at Maritime Bank Securities, told the
local press that investors should continue to spend on shares of
infrastructure, shipping, electricity, textiles, garments and consumer goods,
because they pay better attention to basic characteristics, than to risky
shares.
Reforms
needed to exploit trade pacts
Viet
Nam needs to enact reforms so it might take advantage of economic integration
agreements, said Le Dang Doanh, former head of the Central Institute for
Economic Management.
Speaking
at a conference to review Viet Nam's economy this year, and discuss the
outlook for next year, Doanh highlighted opportunities that Viet Nam could
take advantage of in the near future thanks to economic integration
agreements.
The
conference was held yesterday by the
For
example, by 2015 when the ASEAN Economic Community is expected to form, the
country can expand its markets, at least to
Furthermore,
if it is successful in signing the Trans-Pacific Partnership Agreement, it
can attract more investment in agriculture from
Doanh
made note of the World Trade Organisation's Bali Agreement and its US$1
trillion trade pact covering customs, agriculture and assistance for the
world's impoverished populations and least developed nations, which was
reached early this month on December 7.
Doanh
said that thanks to the agreement,
However,
he emphasised that Vietnamese enterprises must prepare for tougher
competition when joining the global and regional stage, especially in service
industries.
Enterprises
in
"We
identified causes for the ailment of the country's economy, prescribed
medicine, including the restructuring of credit institutions and State-owned
enterprises," he said, "but the implementation is not strong
enough."
Doanh
cited a reduction in investment from the private sector, which was at 15 per
cent of total social investment from 2007-10, and is now down to 11.5 per
cent last year. Also, the credit growth rate reduced from 53.89 per cent in
2007, to 23.38 per cent in 2008, to only 7 per cent last year.
Moreover,
he said that he saw few preparations being made among enterprises for
expanding the country's market opening, even while Government was speeding up
negotiations.
Vice
Rector of the Foreign Trade University Dao Thu Giang said that one of the
major weakness of Vietnamese enterprises was their poor connections among
enterprises operating in the same industry, since they now sought information
and were collecting data on markets and integration by themselves and rarely
sharing information with each other.
"In
regional and global economic integration, domestic enterprises should unite
and boost their linkage to create larger strengths," she said.
Further,
university lecturer and international trade expert Dao Ngoc Tien said that
the world economy, and the nation's domestic economy, were expected to
recover next year.
Also,
However,
enterprises still knew little about the agreements, which resulted in poor
preparations.
"Enterprises
should not expect the agreements would bring them all opportunities," he
said.
Japan
leading firm to expand investment in Vietnam
Japanese
leading motor manufacturer NIDEC Corporation plans to expand its business in
According
to NIDEC Chairman Shigenobu Nagamori, the firm will set up five additional
subsidiaries in
Within
its business strategy with a vision for as far as the next 50-100 years, the
firm will bring the latest technology in the field to Vietnam, while
extending it operation beyond production to research and development
(R&D) activities as well as building a distribution network and enhancing
human resources training, he said.
NIDEC
also plans to establish a Southeast Asian network with Vietnam playing the
central, he said, adding that the corporation will send Vietnamese workers to
Japan for training to meet the demand of its R&D centres.
Established
in 1973, NIDEC Corporation has presented in
Quang
Leaders
of the central province of Quang
At a
New Year get-together on December 19, Chairman of the provincial People’s
Committee Le Phuoc Thanh told representatives from foreign organisations and
enterprises operating in the locality that the province has always attached
importance to external relations.
According
to Thanh, Quang Nam has established cooperative ties with Osan and Yongin
cities of the Republic of Korea, Battambang and Siem Reap provinces of
Cambodia, Cotes d’ Armor of France and Laos’ Attapu and Champasak provinces.
He
particularly noted that the partnership between Quang
In the
first 11 months of this year, Quang
The
province also approved 82 foreign non-governmental projects with a total
value of 200 billion VND (9.4 million USD), while 42 million USD from
official development assistance (ODA) sources has been disbursed in 2013.
Speaking
at the get-together, Director of Groz Beckert Vietnam Gerd Josef Tevfel said
his company’s revenues totalled 20 million USD this year and employed more
than 700 local workers. He affirmed that the company plans to expand business
next year, contributing to economic growth of the host province.
Vietnamese
enterprises have so far committed a total of 15.5 billion USD in 742 projects
abroad.
According
to the Ministry of Industry and Trade, mining industry tops the list with 99
projects totalling 4.6 billion USD, equivalent to 13.3 percent of overall
projects and 46 percent of total investment capital.
Agro-forestry
and food processing comes to second with 80 projects worth of 1.9 billion
USD, accounting for 10.8 percent of all projects and 23.6 percent of total
investment capital, while power projects also attracted 1.8 billion USD,
accounting for 12.1 percent.
Vietnamese
has expanded their investment to 59 countries and territories across the
world.
Visiting
Deputy Speaker of the Polish Parliament Jerzy Wenderlich has suggested
At a
working session with the city’s Investment and Trade Promotion Centre (ITPC)
on December 19, the Deputy Speaker commented that
ITPC
Director Pho Nam Phuong said her centre can launch trade promotion trips for
both Vietnamese and Polish businesspeople who wish to explore respective
investment opportunities.
She
assured that the ITPC will support Polish investors coming to the city in processing
all necessary procedures to establish long-term business.
At
present,
According
to Jerzy Wenderlich, the Polish Businesspeople Association has a number of
members who are interested in investing in
In the
meantime, Polish investors have mostly pumped money into
He
added that the Polish authorities will pay attention to and provide
assistance for their businesses seeking investment partnerships in the
southern region, in particular
The
city plans to have 24 industrial, export processing zones by 2020.
The
Polish Deputy Speaker visited
Across
the country 124 social housing projects have been implemented with a total
investment of more than 30.672 trillion VND (1.442 billion USD), including 85
projects for low-income earners and 39 projects for industrial zone workers.
The
Ministry of Construction in coordination with the authorities of big cities
such as Hanoi , Ho Chi Minh City and Da Nang have established working groups
to implement the Government Resolution 02/NQ-CP on social housing.
According
to the resolution, 25 out of 30 commercial housing projects in
The
implementation of social housing projects has so far shown that the supply of
such houses has been limited, restricted by obstacles to complete a variety
of procedures which involve many different agencies.
However,
the Government has issued Decree 188/2013/ND-CP on the development and
management of social housing with stronger support and clearer procedures,
which aim to increase social housing supply as well as regulating the
property market.
OCB
lends VND180 bil. to EHome 5 project
Orient
Commercial Bank (OCB) has pledged to provide a VND180-billion loan for Nam
Long Investment Joint Stock Company to develop EHome 5 project in HCMC’s
District 7.
Having
cooperated with Nam Long Company to develop EHome 3 project, OCB expected
that the credit contract will facilitate construction of the new property
project, said OCB deputy general director Pham Linh.
The
new project, known as EHome 5 The Bridgeview, is located in a highly developed
and crowded urban area. The project will also benefit from infrastructures
and public facilities of Nam Long-Tan Thuan Dong urban area project including
schools, parks, medical centers, entertainment areas and supermarkets.
The
investor expects to launch the sale of the project apartments in January,
2014, giving a 4% discount for the 60 first homebuyers.
On
December 13, OCB and Suoi Tien Culture and Tourism Joint Stock Company
clinched a comprehensive cooperation agreement, under which the bank would provide
a VND60-billion credit for the enterprise, said Huynh Le Mai, deputy general
director of OCB.
Eastspring
Investments launches first open-ended fund
Eastspring
Investments Fund Management Company announced on Tuesday to start selling
fund certificates of its first open-ended and multi-asset investment fund,
Eastspring Investments Fund (ENF), from December 24.
Under
the current regulations, 90 days or less after the initial public offering
(IPO), if ENF manages to mobilize at least VND50 billion and attract at least
100 investors excluding professional ones, it can get a license from the
State Securities Commission for official operation.
“We
aim at raising investment capital in a stable and sustainable manner by
diversifying assets in the portfolio including shares, bonds and bank
deposits,” said Nguyen Minh Tung, business development director of the fund
manager, said at the launching ceremony on Tuesday.
ENF
expects to invest in shares listed on the two local exchanges, government
bonds, government-guaranteed bonds, treasury bills, corporate bonds,
convertible bonds and deposits at large commercial banks.
“We
think that now is the right time for open-ended funds and the recent launch
of some funds is a good sign for the market,” said Ngo The Trieu, director of
stock and bond investment at the company.
The
economic slump has shown signs of bottoming out. The Vietnamese dong currency
has been fairly stable although poor consumer demand remains a worry, Trieu
said.
For
corporate bonds are still seen a risky asset, Trieu said the weak point of
this kind of debt paper is that information is not fully updated while there
seem to be no ways for evaluating their creditworthiness. However, corporate
bonds in
Corporate
bonds are attractive but risky and of low liquidity. So, maintaining
corporate bonds at a reasonable level and lower than other assets in the portfolio
is highly recommended, Trieu said.
HSBC
Vietnam Bank is the supervising bank of the ENF while nine securities firms
will distribute fund certificates. The fund manger managed US$1.4 billion as
of the end of June with over 4,000 investors.
Debt
trading firm wants status upgrade
Debt
and Asset Trading Company (DATC) is seeking approval for upgrade to a
corporation under the Government to facilitate its settling of bad debt, said
a DATC official.
Speaking
at a seminar on
Thuong
also sought approval for DATC to add chartered capital and issue
government-backed bonds to buy bad debts at banks.
Thuong
suggested establishing some joint stock firms with chartered capital of
around VND2 trillion each, in which DATC would hold stakes of 36-49%, and
said these companies could raise funds for bad debt settlement.
Given
DATC’s calculations, foreign banks reported bad debts of over VND6.7 trillion
by mid-2012, or 3.56% of the total of the entire banking system.
Meanwhile,
local lenders, including State-run banks, commercial joint stock banks,
finance firms, finance leasing companies and central people’s credit funds,
reported bad debts of over VND182 trillion, making up 9% of total outstanding
loans and 96.4% of bad debt in the banking system.
Bad debts
of State-owned commercial banks accounted for 48.6% of total bad debt. As the
real estate sector is still gloomy, the high ratio of debts related to the
sector would increase risk of losses for credit institutions, Thuong said.
As of
the end of 2012, total outstanding loans at local banks had reached over
VND3,000 trillion, around 115% of gross domestic product (GDP). Total assets
of banks amounted to nearly VND5,200 trillion, of which chartered capital was
around VND394 trillion.
By
late 2012, there had been 48 commercial banks in the country – five
State-owned commercial banks, 34 commercial joint stock banks, four joint
venture banks and five 100% foreign-owned banks.
Profitability
of the local banking system is low in the region and elsewhere in the world.
In 2011, the return on equity (ROE) of State-owned commercial banks was
4.23%, commercial joint stocks banks 1.95%, and joint venture and foreign
banks 1.9%. Meanwhile, banks in
Capital
still stuck at banks
Many
credit institutions have seen capital for credits surge as capital demand
remains low while mobilization has risen fast, prompting banks to join a
lending rate competition to speed up credit growth.
Le
Hung Dung, chairman of Eximbank, said that one bank has offered enterprises
low interest rates and advance money for them to pay debts at Eximbank so
that the firm could become one of its clients.
The
branch director of a large commercial bank said that the branch has seen no
new or big-name customers since the start of the year. The branch has mainly
lent to old customers.
Currently,
a number of banks are focusing on trying to keep customers by repeatedly
lowering lending rates and turning some short-term loans into medium-term
loans so the businesses will have more time to pay debts.
The
bank has strong capital flow and the head office is ready to inject capital
if branches find borrowers. The lender has also launched many incentives to
lure new customers, the banker said.
Nguyen
Mien Tuan, vice chairman of Sacombank, said that a number of banks have
offered valued corporate customers rates at only 7% per annum, the same as
the mobilization rate ceiling for terms of six months or less.
Low
lending rates may be offered by State-owned commercial banks that enjoy low
capital expenses. When inter-bank deposit rates are low, they will boost
lending, especially to valued clients, Tuan said.
Nguyen
Hoang Minh, deputy director of the central bank’s HCMC branch, said that local
enterprises have registered to borrow around VND7.5 trillion to prepare for
Tet sales but banks have registered to lend up to VND45 trillion.
Meanwhile,
it is not easy for the city to reach a credit growth rate of 9% at the
year-end, meaning that VND27 trillion worth of loans must be extended this
month.
Banks
now have profuse capital while demand from enterprises has not increased,
Minh said.
Major
banks Vietcombank and VietinBank had reported credit growth at 3.1% and 3.7%
by the end of September compared to late 2012 respectively.
Nguyen
Phuoc Thanh, deputy governor of the central bank, told the Daily that capital
surplus has caused competition among banks. For the positive side,
enterprises will enjoy low interest rates. However, capital may flow back
into banks as firms will deposit back the money to get high mobilization
rates.
When
loans are extended, banks will calculate them as credit growth and when money
runs back into banks, it will be considered as deposit growth. As a result,
the real growth rates could be distorted.
Meanwhile,
banks will also face liquidity risks for racing to lower interest rates,
Thanh said.
Nearly
5,000 containers with several types of goods, including many illegal imports,
are stuck in
Haiphong
Customs Department said, of the total, the Vietnam Shipbuilding Industry
Group (Vinashin) and the Vietnam National Shipping Lines (Vinalines)
abandoned nearly 200 over the past five years.
An
anonymous official from the department said all the owners of the containers
have yet to make any statement for refusing to retrieve the goods, and the
time limit to do so has expired.
“Too
many goods stuck at the port have been posing increasing difficulties for one
of the most important ports in the northern region,” an anonymous leader of
the department commented.
Goods
stuck at the port range from frozen food that is banned to industrial waste
and second-hand products.
Upon
the request by the prime minister, the Ministry of Industry and Trade (MoIT)
ceased licensing the import and export of several goods, including used
rubber and automobile tires, waste plastic, waste paper and waste iron
beginning from January 1, 2013.
Local
authorities find it hard find the owners of the containers, much less fine
them.
The
General Department of Vietnam Customs’ Department of Anti-Smuggling
Investigation is classifying goods at the port to find the best solution.
For
used consumer goods that arrived at the port before April 4, when the
Ministry of Public Security issued a circular on banning temporary imports
for exports, they would seek approval from the MoIT to grant export licenses.
In
2013, the Haiphong Customs Department forced owners of dozens of containers
to export their goods at the port and destroyed several containers of
chicken, beef, and animal organs.
In
several cases, authorities detected tonnes of ivory illegally imported into
Vietnam
refuses to accept new registration document of Indian Company
Truong
Quoc Cuong, Head of the Drug Administration of Vietnam under the Ministry of
Health, decided on December 18 to revoke registered number and not
accept new registration document of XL Laboratories Pvt Company of
Vietnamese
health authorities decided to withdraw and refuse new registration document
from Idian- XL Laboratories Pvt as Indian company that has been recently
found to have violated Vietnamese medicine regulations.
The
Drug Administration of Vietnam recently received documents from testing units
reported that Indian company produces medicine with poor quality. For
instance, some drugs of the Indian company that do not meet the contents of
registration dossiers already approved by the MoH include Tifaxcin-100 with
registered number VN-3448-07; Tinidazole 500 mg with its registered number
VN-7891-09; Kalflam with its registered number VN-1672-06; Diclofokai with
its registered number VN-5689-10.
ASEAN
– a lucrative market for Vietnamese exporters
A
trade promotion seminar in
However,
Le Hoang Oanh, Deputy Head of the Ministry of Industry and Trade (MoIT)’s
Trade Promotion Department, said the total figure is not in commensurate with
both sides’ potential.
MoIT
Asia-Pacific Market Department Head Pham Thi Hong Thanh concurred, noting
Vietnam’s trade agreements with ASEAN members—including the ASEAN Trade in
Goods Agreement (ATIGA) and the Protocol of Common Effective Preferential
Tariffs—offer local exporters numerous opportunities.
These
opportunities are only broadened by ASEAN’s network of trade partnerships
with
Seminar
delegates urged Vietnamese businesses to upgrade their technology, diversify
products, and monitor and respond to market trends. Competitiveness needs
improvement ahead of the imminent establishment of the ASEAN Community.
Nguyen
Manh Dung, a representative from the Department of Processing and Trade for
Agro-Forestry-Fisheries and Salt, said local producers and exporters should
ensure their post-harvest and processing technologies and methodologies meet
international food hygiene and safety standards.
ASEAN
is
Trade
agreements obligate approximately 90% of existing tariffs must drop to 0% by
2015. Most of the remainder will disappear in the following three years.
Vietnamese small and medium-sized businesses will find it especially
important to update their market information and identify advantageous
footholds before tariff reductions take effect.
Farm
produce’s future export prospects
According
to the latest report by the Ministry of Agriculture and Rural Development
(MARD), November’s agricultural exports were estimated at US$2.42 billion in
revenue.
Dr.
Dang Kim Son, Head of the
Metro
Cash & Carry Vietnam Director General Philippe Bacac who has ten years of
experience in developing trade infrastructure facilities and supply chains,
says domestic farmers have huge potential for seafood, fruit, and vegetable
production.
He
recommends that they focus on improving the quality and competitiveness of
products, and establishing closer links with exporters.
In mid-November,
Vietnam had its first Shanghai-bound shipment of 23 tonnes of dragon fruit,
paving the way for agricultural products to corner the Chinese market through
the Metro distribution network. Metro operates in 32 countries and
territories around the world.
Metro
Singapore Office Representative Do Kim Dung said the first dragon fruit
shipment was part of a contract signed by Rong Do Company and there will be
more orders in the near future.
Dung
says Metro is seeking potential partners to ensure a steady supply of
high-quality garlic, ginger, lemons, rambutan, and strawberries from Vietnam.
She
emphasizes the importance of strictly adhering to origin and quality
regulations. Local exporters have to meet the British Retail Consortium (BRC)
standards, International Food Standard (IFS), and Good Agricultural Practice
(GAP), with strong commitments to providing an annual volume of 8,000 tonnes
of farm produce for Asian and European markets.
Since
early this year, Metro has purchased more than US$6 million worth of
Vietnamese fruit, vegetables, and seafood for its 747 retail centres in the
world. It plans to sign more contracts worth US$12 million with Vietnam next
year.
Vietnam
enjoys US$650 million trade surplus
Vietnam
achieved an export revenue of nearly US$125.79 billion by December 15, up
15.4% from a year earlier, according to the latest statistics released by the
Vietnam General Department of Customs (VGDC).
Its
trade exchange reached US$250.93 billion, up 15.2% compared to the same
period last year. Its trade balance showed a deficit of over US$90 million.
Since the beginning of this year, the country has produced a trade surplus of
US$650 million.
Vietnam’s
imports in the first two weeks of December were valued at US$10.59 billion,
bringing the total import turnover in the past 11months and a half to
US$125.14 billion, a year-on-year increase of 15.1%.
For
its part, the foreign direct investment (FDI) sector earned US$77.32 billion
from its exports (excluding crude oil), making up 61.5% of the country’s
total export earnings at an annual growth rate of 27.2%.
It
accounting for 56.7% of Vietnam’s total import turnover hit US$71.01 billion
by December 15, or 24.2% higher than the previous year’s figure.
Hanoi
hosts Vietnam Fashion Fair 2013
As
many as 200 Vietnamese enterprises have joined Vietnam Fashion Fair 2013
which being held at the Giang Vo Exhibition Centre in Hanoi from December
19-25.
There
are more than 400 stalls showcasing different kinds of garment and textiles,
footwear, jewelry, and other luxury products.
Covering
7.000 meter squares, the fair also displays the latest collections of fashion
designs for 2014.
Visitors
will have the chance to select items of famous brands including Nha Be, Duc
Giang, May 10, Viettien, Hanoisimex, Hoa Tho, and TNG.
The
fair, co-organised by the Vietnam Expo Centre in coordination with the
Vietnam Textile and Garment Group (Vinatex) and the Vietnam Leather, Footwear
and Handbag Association (LEFASO), and Vietnam Gold Business Association, is
part of their efforts to contribute to developing the fashion industry and
responding to the “Vietnamese give using Vietnamese goods” campaign.
Greater
Mekong Sub-region nations work on tourism
The
number of tourists to the Greater Mekong Sub-region (GMS) has been on the
rise for some time, bringing sizable economic and social benefits, and
proving the tourism sector’s important role in the area’s socio-economic
development.
Tran
Phu Cuong, Deputy Head of the Department for International Cooperation of the
National Tourism Administration, made the remarks at a Mekong forum to
promote tourism in the GMS in Hanoi on December 19.
The
event, co-hosted by the Ministry of Planning and Investment and the
Association of Vietnam, Laos and Cambodia Economic Cooperation and
Development, is part of efforts to facilitate win-win economic cooperation
among Cambodia, Laos, Myanmar, Thailand and Vietnam, and China’s Yunnan and
Guangxi provinces.
Cuong
said to maintain a growth rate in the smokeless industry, the GMS nations
should be aware of the importance of benefits brought by the sector.
They
should work together to turn the region into a unique tourism destination
where attractions are shaped by rich natural resources, an untouched tourism
environment and cultural diversity, he said.
In
2012, nearly 44 million people visited the region, according to the official.
Participants
assessed tourism partnerships in the region and the Greater Mekong Sub-region
and presented opportunities for tourism investment in the GMS countries.
They
also touched upon solutions to boost connectivity and partnerships for travel
companies while suggesting the GMS countries’ Governments develop complete
policies to step up tourism development cooperation in the region.
Vietnam,
Poland boost trade ties
There
is plenty of opportunity for expanding bilateral trade and investment
cooperation between Poland and Vietnam, said a senior Polish legislator.
Vice
Speaker of the Polish parliament Jerzy Wenderlich was speaking at December 19
meeting with HCM City’s Investment Trade and Promotion Centre (ITPC).
He
noted Polish investment is currently concentrated in northern Vietnam. The
Polish Government intends to support Polish enterprises seeking to establish
themselves in Ho Chi Minh City.
ITPC
Director Pho Nam Phuong said the centre will promote trade by sponsoring
Vietnamese business delegation visits to Poland and facilitating reciprocal
opportunities.
ITPC
will also help Polish enterprises apply for investment licenses and open
representative offices for their HCM City investments.
ITPC
representatives briefed their Polish guests on HCM City’s advantages as
Vietnam’s largest economic centre.
Tan
Son Nhat International Airport processes approximately 17 million passengers
per year. The city itself is home to offices and banks representing 60
countries and territories.
HCM
City also plans to encompass 24 industrial parks and processing zones by
2020.
Nghe
An eyes VND12 trillion investment target
Nghe
An Province is aiming to welcome a minimum of 75 investment projects in 2014,
with registered capitalisation totalling VND12 trillion.
The
goal will reinvigorate the province’s efforts to improve its investment
environment, actively support licensed projects, and become more responsive
to investor opinions.
Nghe
An has acknowledged the need to raise its provincial competitiveness index
(PCI) rating and will work to minimise bureaucratic delays, ease land access,
and help with human resource hiring.
The
province licensed 72 projects, including 67 locally-invested, in 2013 with
total registered capital amounting to VND12.1 trillion.
The
investment projects created nearly 12,000 jobs for local workers. The
province also cancelled and withdrew the certificates of five failed
investment projects with total registered capital of VND2.840 billion.
General
assessments indicate the province has yet to achieve a level of investment
commensurate with its potential. Both the number of investment projects and
the value of that investment are below national averages.
Vinacomin,
Czech businesses ink monorail conveyor contract
Vinacomin
Motor Industry (VMI), under the Vietnam Coal and Mineral Industries Group
(Vinacomin), signed a contract with several Czech companies to manufacture a
monorail conveyor system on December 19.
Under
the contract, the Czech companies will help VMI produce and install the
monorail conveyor’s components and synchronous devices following European
standards that are suitable for Vietnam’s working conditions.
The
monorail system is hoped to help reduce accidents and improve efficiency in
the underground coal mining process.
The
contract marked a significant step for Vinacomin and its increasing use of
machinery and industrial equipment produced in the country to mine coal, said
Vinacomin Director General Le Minh Chuan.
In
addition, the group has also focused on technological innovation, especially
research and production of machinery and equipment for mining to improve
working conditions for its workers and reduce costs.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Sáu, 20 tháng 12, 2013
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