|
BUSINESS IN BRIEF 28/2
Vietnam attends AEM Retreat in Singapore
Minister
of Industry and Trade Vu Huy Hoang is attending an ASEAN Economic Ministers
Retreat (AEM) in
The
meeting, due to begin on February 27, sees the participation of economic
ministers from 10 ASEAN member states and ASEAN General Secretary Le Luong
Minh.
Senior
officials of ASEAN met on February 26 to prepare for the ministers’ retreat.
They reviewed the implementation of free trade agreements (FTAs) between
ASEAN and
They
also discussed the regional comprehensive economic partnership (RCEP)
agreement between 10 ASEAN member states and
They
gave opinions on an FTA between ASEAN and
Industrial production on recovery path
The
index of industrial production (IIP) saw a 5.4% growth in the first two
months of this year, according to the General Statistics Office (GSO).
GSO
economists said the domestic industrial production has been recovering amid
many challenges still being faced by the global and local economies.
The
IIP growth showed that businesses have invested strongly in production to
keep pace with the economic recovery.
The
processing and manufacturing industry, especially, has seen a growth rate of
7.8% in the first two months, compared with the 5% growth in the same period
last year.
Many
industries also saw high growth in the reviewed period, such as garment up
21.1%, leather 19.2%, electronics and computers 10.4%, television production
38.3% and rolled steel 22%.
However,
some key industrial products saw low or reduced growth, including crude oil
down 1.4%, electricity equipment 1% and motorbike production 11.2%.
Seminar discusses ASEAN Shrimp Standards
ASEAN
shrimp producers are desperate for a common set of standards for shrimp
aquaculture, as are global customers, Vice Chairman of the Vietnam
Association of Seafood Exporters and Producers (VASEP) Nguyen Huu Dung has
said.
Dung
was speaking at a seminar held in the Mekong Delta city of
He
said ASEAN nations are supplying 80 % of the global shrimp output, and they
have to follow various standards set by importing countries.
Therefore
they have collectively agreed to build a common set of standards for shrimp,
which will be in line with popular international requirements, he added.
The
ASEAN Shrimp Standards are expected to be enforced by 2015, when the ASEAN
Economic Community is formed.
At
the seminar, Corey Peet, an expert from the ASEAN-US MARKET project,
presented the goals, scope and the development of a draft for the ASEAN
Shrimp Standards, along with support for farmers to follow the requirements.
Cashew nut exports to hit US$1.8 billion this year
The
Vietnam Cashew Nuts Association (Vinacas) unveiled its ambitious plan at a
conference in
Vinacas
said its businesses strive to purchase 100% of domestic materials (equal to
350,000 tonnes of raw cashew nuts) and import an additional 650,000 tonnes
from West Africa, East Africa and
Around
180,000 tonnes of processed cashew nuts will be exported this year for US$1.8
billion, and the export of by-products could raise the value to US$2.2
billion.
Vinacas
President Nguyen Duc Thanh warned agricultural products exports will face
some technical trade barriers from major importers, such as the Food Safety
Modernisation Act of the US Food & Drug Administration (FDA).
He
suggested businesses should purchase all domestic materials from now to the
end of April and consider imported volume carefully.
Thanh
predicted the raw cashew nut market will become more stable and trade fraud
will be reduced.
To
help the sector develop sustainably, Vinacas proposed the State restructure
processing units and encourage businesses to process by-products to meet
market needs.
In
February, 9,000 tonnes of cashew nuts were exported to the value of US$57
million, bringing the total exported volume in the first two months to 28,000
tonnes worth US$169 million, down 0.1% in volume and up 2.4% in value against
the same period last year.
Three
major importers were the
Key
cultivation localities, like Binh Phuoc and Dong Nai provinces, have begun
growing new crops. The purchasing price currently hovers around
VND26,000-26,500 per kg.
FDI drops sharply in two months
The
General Statistics Office of Vietnam (GSO) reported 122 new projects were
licensed in the reviewed period with a total registered capitalization of
US$830.9 million, down 33% in project numbers and 19.3% in value.
Forty-one
existing projects were authorised to increase additional capital by US$708.8
million.
On
the contrary, disbursed FDI rose 6.7% to approximately US$1.12 billion, the
GSO said.
The
processing and manufacturing industry topped the list of economic sectors,
attracting US$1.178 billion, or 76.5% of the total.
Eighteen
provinces and cities licensed new FDI projects, with the southern
It
was followed by
The
Vietship 2014 attracts global names
An
international shipbuilding exhibition was opened in
The
International Exhibition on Shipbuilding, Marine Technology &
Transportation (Vietship), the seventh of its kind, has showcased the latest
products and technology in the shipbuilding industry on more than 200 stands,
with half of them coming from foreign brands.
Vietnamese
Minister of Transport Dinh La Thang said at the opening ceremony the
exhibition creates an international playground and expands direct information
channels for maritime and shipbuilding market development, contributing to
realizing the country’s sea-borne economic strategy.
Thang
said the biannual event gives participants the chance to seek new investment
opportunities, particularly in
The
exhibition, which runs until February 28, includes a seminar to chart the
course for
Rubber industry invests heavily in Cambodia
Vietnamese
businesses have invested hundreds of millions of US dollars in rubber
plantations in
Tay
Ninh Rubber Company (TRC) recently received an investment licence from the
Vietnam Ministry of Planning and Investment to set up Siem Reap-Tay Ninh
Rubber Development Company to undertake rubber plantation projects in
TRC
will spend approximately US$64.8 million planting rubber on 6,157ha out of
7,600ha in
In
addition, Vietnam Rubber Group (VRG) members now have 20 projects in
Phuoc
Hoa Rubber Company has been licenced to plant rubber trees on more than
9,000ha in Kampong Thom province totaling US$55 million. After five-years of
operation, the company has grown nearly 7,600ha and will finish the project
at the end of 2014.
The
company is expected to exploit latex out of the first 500ha of rubber planted
in 2009.
In
February, the capital is estimated to see an export turnover of US$801
million, representing 92.4% of last month’s figure and a 33.9% surge
year-on-year.
Most
commodity groups have enjoyed growth in their exports, except for
agricultural products (down 13.8%), and computer components and peripheral
devices (down 29.9%).
Manufacturing
for export in
Japanese
enterprises have so far had 167 investment projects in Dong Nai province with
a total registered capitalization of US$3.1 billion.
They
mostly invest in electronic equipment, computer and machinery manufacturing,
water supply and transport infrastructure construction.
Currently,
Dong
Nai is one of the four Vietnamese localities that have attracted a large
volume of foreign investment. The province has 1,365 foreign investment
projects valued at US$23.6 billion.
Outstanding Vietnamese businesses honoured
An
awards ceremony to recognise 476 companies for their commitment to produce
high-quality Vietnamese products was held in
The
companies were selected by the Business Association of High-Quality
Vietnamese Goods for their innovative and creative improvements to product
quality which serves to improve the image of Vietnamese products, opening up
international markets.
The
association plays an important role in assisting its members win over
consumer trust by organizing trade fairs, boosting trade promotion abroad,
and developing traditional craft villages.
In
the upcoming year, the Association aims to focus its efforts on implementing
practical measures to assist the Vietnamese business community secure a firm
foothold in international markets such as Indonesia, China, and Myanmar.
Speaking
at the event, Association Chairwoman Vu Kim Hanh elaborated on the need to
stimulate creativeness and innovation in supply chains, particularly singling
out businesses involved in raw material production for both the domestic and
foreign marketplace.
“Apart
from building up a close link among local businesses, it is essential to
encourage them to penetrate overseas markets”, she added.
On
the occasion, Minister of Science and Technology Nguyen Quan presented
certificates of merits to 17 businesses recording innovative accomplishment.
In
other developments, a trade fair will be held in the southern
3.72 trillion VND of Government bonds mobilised
The
State Treasury successfully mobilised 3.72 trillion VND (174.8 million USD)
worth of Government bonds through a bid organised by the Hanoi Stock Exchange
(HNX) on February 26.
As
much as 650 billion VND was mobilised from two-year bonds with an annual
interest rate of 6.15 percent.
The
rest included 1.54 trillion VND in three-year bonds with an annual interest
rate of 6.75 percent, 530 billion VND in five-year bonds with an annual
interest rate of 7.67 percent, and 1 trillion VND in 10-year bonds with its
annual interest rate of 8.88 percent
The
State Treasury has mobilised over 35.26 trillion VND worth of Government
bonds via four tenders held since the beginning of this year.
More micro-credit access for lower income earners
Experts
from
The
microfinance sector in
According
to Sebastian Dinjens, director of INFI, an exchange network or microfinance
professional across the
“But
to be able to do that, they need to professionalise more on Social
Performance Management, and design their products to fit specifically with
the needs of marginalised people,” the Vietnam Investment Review quoted
Dinjens as saying at the conference “Balance in microfinance - seeking
harmony between social and financial performance”.
The
February 24-25 conference aims to equip the development projects and
microfinance institutions with Social Performance Management and seeking for
the balance in their microfinance practice.
The
Social Performance Management standards respond to an industry concern that
institutions have lost focus on their clients.
Most
institutions claim to improve client welfare, but for the last two decades
many institutions have focused more on financial sustainability than on the
needs of clients. Many of these institutions are driven by financial outcomes
because they only manage financial performance.
Institutions
with a social purpose must also manage their social performance. By defining
and promoting strong SPM, these Standards contribute to refocusing
institutions on the client.
Therefore,
the introduction and applying of SPM is a solution for these issues.
INFI
is an exchange network for microfinance professionals across
There
is a lot of experience in
Many
of the organisations in
These
groups often live in rural areas where agriculture is the main market. Increasing
trade with other countries is creating many opportunities, but these people
lack the capital to produce on a scale that can serve the market.
Dinjens
explains that what he often sees is that these people are very able to manage
their finances on a small scale.
“They
spend, produce and save money just like anybody, and often can create a
regular income to help them survive. But what they are able to save is often
not enough to invest in their own business. This is where microfinance
services can help. By giving these people a loan for their business, they can
invest to grow their business without too much risk. But it requires
microfinance organisations to be knowledgeable about the needs of their
clients, and willing to invest in the small businesses of rural Vietnamese,”
he said.
VietJet Air launches HCM City-Da Lat flights
Vietnamese
budget carrier VietJet Air officially launched service between Ho Chi Minh
City and the Central Highlands resort town of Da Lat (Lam Dong province) on
February 26, its 22nd route so far.
The
HCM City-Da Lat route operates seven weekly round flights with a total of
2,520 seats.
On
the occasion, the airline will put on sale 30,000 discount tickets on all its
routes at just 22,000 VND (1 USD) during three days from March 5.
The
promotional programme will apply for flights from March 22 to May 20 with the
exception of national holidays.
The
Vietnamese low-cost airline, which started to fly in late 2011 , recently has
finalised an order with Airbus Group to purchase and lease 100 aircraft with
a total contract value of 9.1 billion USD.
According
to Nguyen Thanh Hung, Vice Chairman of VietJetAir, the airline transported
more than 4.3 million passengers last year, accounting for about 26 percent
of domestic market share. After more than two years of operation, the airline
now has a fleet of 11 leased A320s. Besides domestic destinations, the
carrier also flies to
The
carrier plans to open a direct route from
Bank assets rise 13% on State bank growth
Commercial
bank asset values totalled over VND5,700 trillion, or US$271.43 billion, at
the end of last year, up 13 per cent over the previous year.
This
was reported by VnExpress online which cited State Bank of
State-owned
banks led all credit institutions, with total assets amounting to VND2,500
trillion, or $119.05 billion, which is about VND100 trillion, or $4.76
billion, higher than that of joint stock banks.
The
State-run sector also showed a greater lending ratio, as with every deposit
of 100 dong, it could lend 95 dong. The ratio for the joint stock area was
100/75.
Bank
equities grew 6.54 per cent in 2013 to reach a combined VND195 trillion, or
$9.29 billion, at the end of the year, despite challenges related to credit
growth, profitability, bad debts and declining capital throughout the year.
The
health of financial companies worsened, with equities slumping 75 per cent
and asset values plummeting 57 per cent in 2013.
Dragon Capital to merge portfolios
Dragon
Capital, the Vietnamese investment manager, announced yesterday that it would
merge two shareholding classes in its Vietnam Debt Fund (VDeF).
Following
a meeting of the shareholders in
The
objective of the merger is to create a larger aggregate portfolio, increasing
trading and risk management efficiency. The combined portfolios will have a
NAV (net asset value) of US$38.5m.
Launched
in November 2007, VDeF is open-ended and its strategy centres on active
management seeking high sustainable returns in
While
the A class portfolio's mission has been to invest in government debt, the B
class portfolio has a broader mandate including corporate debt.
The
fund is registered in the Cayman Islands and listed on the Main Securities
Market of the Irish Stock Exchange in
The
VDeF fund has performed strongly over the past three years with the B Class
Portfolio providing USD annual returns of 10.36 per cent and the A Class
Portfolio returning 9.25 per cent.
Consequently,
the fund's two share classes were ranked first and second in Camradata's
recent Emerging Market Corporate Debt report.
"The
larger size of the combined portfolios will allow for greater flexibility in
our investment strategy, make risk management easier and reduce the expense
ratio, which is a heavy burden for small sized funds," said Dan
Svensson, portfolio manager of the Vietnam Debt Fund.
Dominic
Scriven, CEO and co-founder of Dragon Capital, said: "This merger of the
two portfolios makes good strategic sense for Dragon Capital and enables us
to build on the success that the VDeF has already achieved since 2008. VDeF
and its local affiliate VFB have consistently delivered market leading
performance. We are optimistic that this merger will allow us to continue
delivering strong returns from
Founded
in 1994, the Dragon Capital group is an investment company with two decades
of investing experience in
World gold prices marginally increase local prices
Local
gold prices increased by 0.2 per cent yesterday to touch VND36.55 million per
tael (US$1,732), driven by a strong surge in world gold prices on Monday.
The
price fell afterward to as low as VND36.46 million ($1,727) per tael for an
SJC gold bar in the late afternoon trading session. Last Monday, local gold
prices reached a new high of VND36.80 million ($1,744), the highest since
last November.
After
it reached the record price of $1,338.6 per ounce on Monday, gold fell
marginally to $1,332.8 yesterday but remained steady at an almost four-month
high due to
Last
year, the State Bank of
Market
observers argue that gold auctions are a reasonable tool to manage the local
gold market if needed, but they do not think it should be used in the long
term.
"When
the central bank holds gold auctions, it also needs a strong source of
foreign currencies, particularly of the US dollar, to import gold bars, which
consequently influences the balance of payments and foreign reserves," a
banking-finance expert said.
He
recommended that the central bank allow local gold prices to move in tandem
with world gold prices to prevent speculation or smuggling, which did occur
in the market.
Economist
Vu Dinh Anh remarked that the central bank and the Ministry of Finance should
collaborate to efficiently tax the precious metal.
The
US dollar traded at VND21,085-VND21,125 against the Vietnamese currency,
yesterday.
Manufacturing solutions showcased in Ha Noi
A
leading international precision engineering, mechanised tools and
metalworking exhibition and conference – MTA Ha Noi 2014 – is planned to be
held in the city's International Centre for Exhibition (ICE) from April 1-3.
This
is the third time the event has been organised, designed to serve the
thriving industries of northern
During
the three working days, the exhibitors will showcase manufacturing solutions
such as cutting, moulding and tooling systems, metrology machines and hand
tools, among many others. It will also feature three group pavilions from the
"After
two editions, MTA Ha Noi has established itself as the go-to event for
companies located in the vicinity, to source the latest manufacturing
technologies," said William Lim, Project Director for MTA Ha Noi 2014
from the show's organiser, Singapore Exhibition Services.
2013 trade with
Bilateral
trade between
Of
the total, Vietnamese exports hit $3.69 billion, up 22 per cent, while its
imports were $573.27 million, up 6 per cent.
Among
Exports increase likely due to GSP
Market
shares of
Tran
Ngoc Quan, deputy director of the European Market Department under the
Ministry of Industry and Trade, stated this at a conference on "The EU's
New GSP Regulation – New Opportunities for Exports to the EU", held in
Ha Noi yesterday.
From
2014 onward, more Vietnamese products, including footwear, may gain further
benefits under the new GSP regulations, Quan noted.
The
EU published its amended GSP regulations in October 2012, and they came into
effect at the beginning of this year. The regulations are aimed at
facilitating market access for goods originating from developing countries,
including
Quan
estimated that the export market share of coffee, tea and spices will
increase from the current 12 per cent to 22 per cent because of the new GSP.
Exports of seafood will increase from 9.9 per cent to 19 per cent, while the
exports of shoes will rise to 34 per cent.
GSP
rules will improve
"However,
besides the advantages, the new GSP regulations may give rise to a number of
challenges. Businesses need to have a long-term vision and strategy for
sustainable development, quality improvement and compliance with the EU's
requirements and standards on issues, such as labeling and non-toxic
products," he added.
The
ambassador and head of the EU delegation to
He
stated that since early this year some export products, including footwear,
have benefited from more favourable tariffs under the new GSP.
He
said it was therefore crucial for
Claudio
Dordi, the EU-MUTRAP team leader, agreed. He noted that the favourable
tariffs offered to
However,
he remarked that the advantages under the new GSP will not be sustainable, as
the GSP will not be in force forever.
Truong
Dinh Tuyen, former minister of Industry and Trade, noted that the GSP will
not pressure businesses to restructure and change their growth models, thus
not providing a balance to exports.
Tuyen
added that imports will also be higher, in parallel with exports, due to
competitive pressure on labour productivity, quality and prices.
He
remarked that the country should accelerate its economic restructuring
process, while taking advantage of the GSP to improve competitiveness.
"This
will be the basic road to improve and sustain export capacity," he
added.
A
representative from the Garment 10 Company said one of its difficulties in
taking advantage of GSP was the origin of input materials. For Free on Board
(FOB) contracts, importers often stipulated the material to be used
themselves, most of which had to be imported from China. This was the reason
why the company had not been able to avail themselves of preferential
treatment under the GSP for FOB shipments.
He
noted that it would be better if Viet Nam could take advantage of investment
flows to directly produce materials in the country.
Quang Nam launches new IZ infrastructure
The
People's Committee of the central province of Quang Nam has decided to begin
construction on the infrastructure of the Tam Thang Industrial Zone (IZ) in
the provincial Tam Ky City.
The
zone's infrastructure development is expected to cost VND360 billion (US$17.15
million). This sum will come from the State budget and the zone investor, Chu
Lai IZ Infrastructure Development Co, according to the committee's vice
chairman Huynh Khanh Toan.
New markets awaiting Vietnam's exports
With
high demand, low barriers, and medium high product quality requirements,
Africa and Latin America are considered emerging markets for Vietnamese
goods. An insight by the Ministry of Industry and Trade's online Vietnam
Economic News.
Export
is one of the bright spots of economic activities last year with total
revenue of 132.2 billion USD, up 15.4 percent compared with 2012, a ccording
to the Ministry of Industry and Trade.
Exports
to new and small markets such as Africa and Latin America experienced
apparent growth rates in the context that Vietnamese exports to the
traditional markets faced difficulties. Africa was the market with the
highest export growth rate of 28 percent, reaching 2 billion USD, while Latin
America hit a growth rate of 23.1 percent, reaching 28 billion USD. To continue
with better results in the time to come, increased proportion of Vietnamese
exports to these markets will be aimed at.
Speaking
about export orientation for 2014, Minister of Industry and Trade Vu Huy
Hoang insisted that Vietnamese exporters should gradually increase the
proportion of Vietnam’s exports to African markets and Latin America along
with traditional markets.
Thanks
to their high quality and reasonable prices, Vietnam's exports have gradually
won lots of customers in African and Latin American countries. They have also
taken advantages from free trade agreements (FTAs) signed and implemented
between Vietnam and these countries. For example, the Vietnam - Chile FTA
that officially took effect from early 2014 promises to increase two-way trade
revenue and help Vietnamese goods penetrate deeper into the Latin American
market.
According
to Vietnamese Commercial Counselor in Chile Tran Dinh Van, since 2010, export
revenue of Vietnam to Chile consistently achieved over 20 percent growth
rates annually, and last year it reached about 250 million USD. The Vietnam -
Chile FTA takes effect and will create the premise for raising the proportion
of Vietnamese exports to this market. In addition, it can also help increase
the volume of Vietnamese exports to other Latin American countries as Chile,
Mexico, Peru, and Colombia already established the Pacific Alliance, the
largest regional trade organisation that makes up to 50 percent of Vietnam’s
total import and export value to Latin America.
Rice
is a major export to African countries. A series of memos on rice trade
promotion have been signed between Vietnam, Guinea-Bissau and Comoros in
order to facilitate direct exporters to these markets. In particular, the
Vietnam - Guinea-Bissau memorandum of collaborative trade and industry signed
in early 2014 will act as a bridge for Vietnamese goods to enter
Guinea-Bissau and other West African countries as well.
However,
exports to Africa and Latin America also have encountered difficulties in
terms of geography, payment through intermediaries, market information, and
stiff competition by countries with geographical proximity such as India and
Pakistan.
According
to Van, Latin America is a new and far market for Vietnam, so trade promotion
activities in this market must be prepared carefully, especially cost
calculation and trade promotion places as Latin America is divided into South
America, Central America, and the Caribbean. Vietnam's exports found it more
advantageous in South American markets such as Brazil, Argentina and Peru.
Exporters to ship commodities to Central American and Caribbean countries
should select those in adjacency to save time and cost.
Memos
have been signed between Vietnam and some African countries and are now
facilitating direct payment.
“The
Ministry of Industry and Trade will this year reduce market risks when
exporting through intermediaries by organising more businesstrips for better
building direct trade cooperation," head of the ministry’s Africa,
Western and South Asia Markets Department’s Africa market Division Hoang Duc
Nhuan said, adding that the ministry is focusing on a specific export scheme
to remove barriers and promote rice export to this potential market.
Hancorp’s shares to go under hammer
The
Hanoi Construction Corporation (Hancorp) on February 25 announced a plan to
sell shares to the public via an auction for the first time, in a bid to
fulfil its equitisation process.
Hancorp,
one of the country’s leading firms in construction, is scheduled to sell more
than 49.74 million shares, equivalent to 26.18 percent of its projected
charter capital, at a starting price of 10,200 VND (approximately 0.48 USD)
each.
The
move aims to adjust the firm’s executive management structure and
administration methods while increasing its access to the capital market, in
order to raise its financial and operational capacity.
Hancorp
has recorded achievements in property trading and investment focusing on
residential areas, housing development and shopping malls, with each project
worth between 50 billion VND (2.35 million USD) and 1.5 trillion VND (70.5
million USD).
The
business specialises in constructing industrial works, with more than 70
projects in the spheres of traffic, heavy industry, electricity and
irrigation.
Vietnam-Finland innovation partnership to continue
The
Prime Minister has approved the second phase of the Vietnam-Finland
Innovation Partnership Programme, which will be carried out during the
2014-18 period by the Ministry of Science and Technology, according to the
Vietnam Government Portal.
The
11-million EUR project sees the Finish Government providing 9.9 million EUR
in non-refundable aid and the Vietnamese side paying the remainder 1.1
million EUR in corresponding capital.
The
project aims to turn the national innovative system into a momentum for the
fulfillment of socio-economic development goals in Vietnam and convert the
country into an industrialised and modernised one in 2020.
Earlier,
the first phase of the programme was conducted between 2009 and 2013 with a
total investment of 7 million EUR.
The
programme supported over 60 projects on institutional development, innovative
building, pro-initiatives, innovation projects of businesses and cooperation
between the two countries.
Agribank facilitates remittance payments
The
Vietnam Bank for Agriculture and Rural Development (Agribank) on February 25
signed a cooperation agreement with the Republic of Korea (RoK)’s NongHuyp
Bank, in order to help Vietnamese guest workers transfer money back home.
Under
the agreement, NongHuyp Bank will provide money transfer services in a safe,
fast and convenient manner for the Vietnamese labourers, and encourage them
to send money back through Agribank.
The
two banks will team up to introduce and instruct Vietnamese workers in the
RoK to open and maintain a separate bank account at NongHuyp Bank until they
clear their loans from Agribank.
According
to Dao Cong Hai, Deputy Director of the Ministry of Labour, Invalids and
Social Affairs’ Overseas Labour Management Department, Vietnam has around
500,000 guest workers. Of which, 75,000 working in the RoK send home an
annual average sum of 650-700 million USD.
Both
Agribank and NongHuyp Bank operate in agriculture and rural fields and play a
key role in promoting the growth of the two economies.
Dak Nong moves to develop coffee farming
The
Central Highlands province of Dak Nong will invest more than 40 billion VND
(1.88 million USD) in carrying out measures to help farmers develop their
coffee planting in 2014-2015.
Accordingly,
the area of commercial coffee trees will be expanded to 110,000 hectares from
the current 98,000 hectares, while average productivity will increase from
2.3 tonnes to 2.6 tonnes of coffee beans per hectare, translating into an
additional 1.2 trillion VND (56.4 million USD) in value each crop.
The
province prioritises transferring advanced technologies in coffee processing
to farmers and businesses, as well as building the irrigation system,
storehouses and drying grounds to serve production and processing.
It
also encourages farmers to grow avocado and jackfruit trees to protect coffee
trees from wind and earn more money.
Dak
Nong province now has about 116,000 hectares of coffee trees with a total
yield of 225,000 tonnes per year.
However,
as a number of local farmers plant coffee trees in unsuitable areas and don’t
apply correct technologies in cultivation, productivity and economic
efficiency remain poor.
Largest export commodities recorded
Up
to 21 commodities earned over US$ 100 million from export in the first month
and are expected to join the US$ 1 billion export club in 2014.
According
to updated data of the Viet Nam Customs, the declining import revenue left
Viet Nam to run the highest ever trade surplus of US$ 1.41 billion in
January.
The
domestic sector got a trade surplus of around US$ 31 billion.
In
the first month, total trade turnover touched US$ 21.48 billion, down 3%
against the same period last year. Export turnover valued US$ 11.46 billion.
Import volume was worth US$ 10.02 billion.
Out
of the 21 commodities, ten gained rising export turnovers especially garment
and textile, suitcases, aquatic products, furniture, telephones, and cameras.
Meanwhile,
26 markets traded a total US$ 10.223 billion in turnover with over US$ 100
million each. These markets held 89.2% of the total market share.
Viet
Nam’s key export markets included the US, Japan, China and the Republic of
Korea.
Retailers ask for more policy support to tap potential
Domestic
retailers have called for policy support to help them exploit their potential
better, especially as they have to face fierce competition from foreign
counterparts.
Statistics
from the Ministry of Industry and Trade (MoIT) showed that the domestic
retail sector contributed 14 percent to the country's GDP growth rate and had
a scale equivalent to the export turnover of 2012.
By
the end of last June, Vietnam had around 560,000 businesses operating in the
domestic retail sector. Of these, direct retailers with foreign investment
achieved the highest growth rate of 29 percent in the period 2011-13, though
they accounted for just 3.46 percent. Domestic retailers saw 4.4 percent
growth rate despite accounting for a high 9.8 percent.
Deputy
Minister Ho Thi Kim Thoa was quoted by Thoi Bao Kinh Doanh (Business Times)
as saying that the domestic retail sector had encouraged development and
provided more opportunities to the customers in choosing products.
However,
Thoa said the strong growth of foreign retailers has exposed the challenges
faced by domestic ones, as their market share had increased from 1.2 percent
in 1996 to 3.5 percent last year.
She
said the Vietnamese retail model has been one of main reasons for its slow
development. Its traditional markets, which provide 40 percent of the total
goods value, have not established a systematic and stable model suited to
each market.
Vo
Van Quyen, head of the ministry's Domestic Market Department, said the
domestic retail system had many intermediates. He added that the sector
lacked policy support, besides having shortcomings such as small capital
scale and lack of high quality human resources.
He
said this was the reason that the sector was not strong enough to compete
with the foreign competitors.
Agreeing
with these ideas, Dinh Thi My Loan, Chairwoman of the Vietnam Retailers
Association (VRA), told Vietnam News that the country should have strong
policies and regulations which would not go against the commitments of the
World Trade Organisation and the Free Trade Agreement and would support
associations and enterprises in human training, market researches and buying
trends.
"The
State agencies should focus on building 20 leading domestic retailers which
have increasing added value," Loan said.
She
added that support for land and the links between production and customers
should also be given to promote the domestic retail sector.-
Mekong Delta aims for 6 mln tonnes of sugarcane
The
Mekong Delta region will strive to output 6 million tonnes of sugarcane in
2014, a year-on-year increase of 300,000 tonnes.
It
will maintain the current 60,000 hectares of sugarcane fields until 2020,
according to an Agriculture and Rural Development Ministry plan.
To
achieve the target, the regional provinces have encouraged local farmers to
use high-yield sugarcane varieties and mechanise the farming process.
In
addition, they will continue to build and upgrade irrigation facilities and
reorganise sugarcane farming from small to large-scale production, as well as
utilise modern science and technology to reduce costs.
As
many as 27,000 hectares of sugarcane have been grown mostly in Long An, Ben
Tre and Tra Vinh provinces so far this year.
10 trillion VND of Government bonds mobilised
The
State Treasury successfully mobilised 10 trillion VND (470 million USD) worth
of Government bonds through a bid organised by the Hanoi Stock Exchange (HNX)
on February 20.
Three
trillion VND (141 million USD) was mobilised from two-year bonds with an
annual interest rate of 6.15 percent.
The
remaining money raised included 4 trillion VND (188 million) in three-year
bonds with an annual interest rate of 6.7 percent, and 3 trillion VND in
five-year bonds with an annual interest rate of 7.67 percent.
The
State Treasury has mobilised over 31.54 trillion VND (1.48 billion USD) worth
of Government bonds via four tenders held since the beginning of this year.-
Mekong Delta expands large-scale rice field area
The
Mekong Delta region has expanded its large-scale rice fields to over 100,000
ha in the 2013-2014 Winter-Spring crop, 34,000 ha more than the same period
last year, according to the Steering Committee for the South-western Region.
Large-scale
rice fields usually range from 300 to 1,000ha, facilitating mechanisation of
farming work.
Rice
cultivation in such fields has also met Vietnam Good Agricultural Practice
(VietGAP) and Global Good Agricultural Practice (GlobalGAP) standards.
Accordingly,
the region has used high quality rice seeds that have strong resistance
against disease and unfavourable weather, and applied advanced technologies
in farming in order to improve yields and meet export standards.
Director
of Can Tho city’s Department of Agriculture and Rural Development Pham Van
Quynh said several contracts encompassing seed, fertiliser, pesticide ,
machine and equipment supply were signed between businesses and rice farmers
in the locality.
Enterprises
have also pledged to buy rice at appropriate prices from farmers.
Mekong
Delta farmers have harvested Winter-Spring rice crops on 20,000ha so far.
According to the Vietnam Food Association, the price of fresh rice in the
region fluctuates between 5,000 and 5,600 VND/kg, while high-quality dried
rice fetches 5,700-5,800 VND/kg.
The
Ministry of Finance said that the large-scale field model makes 1-4 million
VND/ha more profit than the old system.-
Advanced wood production line built in Quang Tri
Work
on a 1.4 trillion VND (66.6 million USD) wood production line started on
February 20 at the Quan Ngang Industrial Zone, Gio Linh district in the
central province of Quang Tri.
The
line, MDF VRG Quang Tri wood factory’s second, will have a designed annual
capacity of 120,000 cu.m. of medium-density fibreboard (MDF) and use the most
advanced technology in wood processing.
Scheduled
to be completed in the second quarter of 2015, the line will triple the MDF
VRG Quang Tri wood joint stock company (GEWOODCO)’s growth rate, earning 1.3
trillion VND in revenue per year and generating more than 2,000 jobs for
local workers.
Speaking
at the ground-breaking ceremony, Deputy Prime Minister Nguyen Xuan Phuc
highly valued the efforts of the province, the Vietnam Rubber Group and
GEWOODCO in building the factory, helping a large number of local farmers
earn a living from growing trees to supply wood to the company.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Thứ Năm, 27 tháng 2, 2014
Đăng ký:
Đăng Nhận xét (Atom)
Không có nhận xét nào:
Đăng nhận xét