BUSINESS IN BRIEF 10/3
Vietnam
high-quality goods fair opens in An Giang
A Vietnam high-quality
goods fair opened in the Mekong Delta province of An Giang on March 8,
opening a series of similar events nationwide.
The event, concurrent
with the 20th anniversary of the debut of high-quality Vietnamese goods
polled by consumers, brings together 150 exhibitors showcasing goods at 350
stalls, including consumer goods, electronics, handicraft and wooden
furniture.
Specialties from the
Mekong Delta provinces of An Giang, Ben Tre, Can Tho and Dong Thap are also
on offer.
A seminar attracting
specialties makers from the above provinces, and others on technological
advances and Mekong agriculture will also be held.
An exhibition featuring
the province’s innovative products, as well as promising companies which are
shortlisted to vie for the title “Business of Innovation and Integration”,
which was launched by the Centre of Business Studies and Assistance under the
auspices of the Ministry of Science and Technology, is on show at the fair.
The event will last till
March 13.
Vietnam attends
largest food fair in Japan
Vietnamese culinary
delights are drawing attention at the 41st FOODEX, Japan’s largest
international food and beverage exhibition, which opened in Chiba prefecture
on March 8.
Twenty-one Vietnamese
firms are displaying their products, including fruit, cashews, cakes and
juices, on an area of 180 square metres.
According to Nguyen Hong
Viet, head of the Trade Promotion Centre of Agriculture’s Media and Event
Department, Vietnam has taken part in the annual exposition since 2012.
This year marks the
country’s fifth time participating and is the largest in scale yet, both in
terms of numbers and exhibition space.
Vietnamese products are
receiving credit from several international businesses at the fair and expect
to make inroads into the Japanese market.
Vietnamese Trade
Counselor to Japan Nguyen Trung Dung said FOODEX Japan 2016 opens a great
opportunity for Vietnam to boost exports to Japan.
The trade show, which
lasts through to March 11, gathers 3,000 enterprises from 83 countries and
territories worldwide and is estimated to welcome 75,000 visitors.-
VN, Turkey hope to double trade
Viet Nam and Turkey have
set themselves a target of doubling bilateral trade to US$3 billion this
year, according to the Viet Nam Chamber of Commerce and Industry (VCCI).
Speaking at a business
meeting in HCM City yesterday, Nguyen The Hung, deputy director of VCCI's HCM
City office, said trade between the two countries had grown rapidly in the
past few years, reaching $1.5 billion last year, with Viet Nam enjoying a
surplus.
Viet Nam exports mainly
mobile phones and accessories, fibres and yarns, computers, electronic
products and accessories, fabric, and rubber, and imports machinery and
equipment, milk and milk products, medicines, plastic products, and chemicals
from Turkey.
Ozcan Dogu Kaya, board
member of the Istanbul Chemicals and Chemical Products Exporters Association,
said: "For some products, we see a well-established collaboration. For
example, in the case of manmade filaments, Turkey accounted for 23 per cent
of Viet Nam's exports in 2014, and in the case of staple fibres, 15.6 per
cent. This trade has gradually increased over the recent years."
Hung said,
"Although there is rapid growth in trade ties, it is still far from our
potential."
Kaya said there is great
potential for co-operation in many sectors between businesses in the two
countries.
Citing the example of
pharmaceutical products, he said: "Turkey is a growing exporter and Viet
Nam is a significant and growing importer from India as well as Europe. We
see only small trade between our countries.
"In [the case of]
taps and valves, both Turkey's global exports and Viet Nam's global imports
have almost doubled between 2008 and 2014 to $600 million and $400 million
respectively, but trade between Turkey and Viet Nam is stuck at about 0.1 per
cent of these numbers."
As for investment,
Turkey ranks 25th out of 110 countries and territories investing in Viet Nam
with $730 million in 13 projects.
Hung hoped that the
business-matching event would strengthen co-operation between the two
nations' business communities.
The two sides have
signed many significant agreements such as the Air Service Transit Agreement,
the Marine Agreement, Agreement on Promotion and Protection of Bilateral
Investment, Agreement on Avoiding Double Taxation and others to help push
trade and investment ties further, he said.
The meeting was attended
by executives from 14 Turkish companies and more than 70 of their Vietnamese
counterparts, and they explored business opportunities.
The visiting executives
are from sectors like machinery and equipment manufacturing, air
conditioning, food and beverages, specialised vehicles, electronic products.
Speaking to Viet Nam
News, Nguyen Tri Thong, director of Lap Nguyen Corporation, said he attended
the event to find out about importing energy saving products for
distribution.
The event was organised
by the VCCI in collaboration with the Turkish Exporters Assembly and support
from the Turkish embassy.
5,000t of tuna
imported for locals
Vietnam imports around
5,000 tons of tuna for local consumption demand every year, according to an
official of the Vietnam Tuna Association.
Vu Dinh Dap, chairman of
the association, said the nation has 3,600 ships to catch ocean tuna mainly
in Binh Dinh, Phu Yen and Khanh Hoa central provinces, with a total average
output 17,000 tons of tuna per year.
However, recently, local
tuna processors have been importing 4,000 tons to 5,000 tons of tuna every
year to meet their demand on export processing due to the instability in the
supply of tuna caught on the ocean, Dap said.
The Mai Tin Company, a
South Korean firm, in Khanh Hoa Province, was one enterprise which only
imported tuna for export processing of sushi products to Japan every year,
reported zing.vn.
Now, Vietnam’s frozen
tuna fillet products are exported to 100 countries and territories, including
to the European Union (EU), the United States (US), Japan and China.
The Vietnam Association
of Seafood Exporters and Producers (VASEP) reported last year, local tuna
exporting processors still imported material for export processing due to the
difficulty in supply of material.
Vietnam reached a total
import value of tuna at US$214.9 million, an increase of 16.8 per cent
year-on-year from 36 countries and territories, including South Korea,
mainland China, Hong Kong and the EU, said the General Department of Customs.
In 2015, the tuna import
value surged by 66 per cent from South Korea to $45.7 million, and by 313 per
cent from the EU to $10.2 million compared with 2014.
The tuna imports from
the EU were expected to increase further in the future due to the impact of
the Vietnam–EU free trade agreement, according to VASEP.
Tuna exploitation output
in the first months of this year was predicted to be low so tuna imports
would continue, said VASEP.
Administrative
reforms boost competitiveness: VCCI
The Government has taken
many innovative measures to reform administrative procedures, thereby helping
to improve the business environment, national competitiveness and efficiency
of State management, Vietnam Chamber of Commerce and Industry (VCCI) Chairman
Vu Tien Loc said.
Lộc made the statement
at a seminar to review surveillance programmes on administrative reform to
improve the business environment and enhance national competitiveness in the
field of taxation and customs.
As head of the Steering
Committee of the surveillance programme, Loc said the Government has enacted
many effective measures to improve administrative reform in recent years,
such as issuing Resolution 19, which tasks many important institutions with
improving the business environment and reforming administrative procedures.
The Government also
assigned the VN Fatherland Front (VFF) and VFF’s members, such as VCCI, to
supervise the Government agencies’ operations, particularly tax and custom
authorities, to ensure they are making objective assessments.
With judicious
leadership and guidance from VFF President Nguyen Thien Nhan, within a short
time, VFF has established a steering committee to supervise the
administrative reform process among Government agencies and bodies. VFF has
tasked its member organisations with working together to conduct the
programme, and they received praise from ministries and sectors.
"This helps VFF
engage more deeply in the task of assessing and supervising the reform of
administrative procedures," Loc said.
According to an
evaluation of supervisors, the surveillance programme on administrative
reform in the field of tax and customs has been carried out at the right
time, contributing to the reform of administrative procedures in these
fields.
The programme has led to
a drastic change in the administrative reform process, which was appreciated
by the business community, Loc said. It also promoted the role of VFF’s
members, empowered enterprises, and created a link between state agencies and
enterprises.
However, in addition to
positive results, the programme has still encountered some difficulties, such
as financial troubles and a lack of experts specialising in the fields of tax
and customs.
Pham Thu Huong, Deputy
Head of the Law and Democracy Committee under VFF, said the surveillance
program this year will focus on reflecting the real situation of
administrative reform in the fields of taxation and customs through the
evaluation of businesses, co-operatives and business associations.
The programme also
listed problems and difficulties that enterprises have to face when complying
with State regulations in the field of taxation and customs, then collected
their recommendations and requests to accelerate the simplification of
administrative procedures.
Huong said the
surveillance programme will continue to focus on supervising administrative
reform in 13 provinces and cities of Hanoi, Hai Phong, HCM City, Binh Duong,
Ba Ria-Vung Tau, Dong Nai, Vinh Phuc, Quang Ngai, Quang Ninh, Khanh Hoa, Da
Nang, Can Tho and Bac Ninh.
It will also focus on
reviewing and assessing the legal provisions and administrative procedures
related to taxation and customs, especially the implementation of electronic
tax declaration and filing. The period of surveillance activities will last
from July to October this year, Huong said.
Ho Chi Minh City
sees youth potential for business growth
Dynamic youth are likely
to help Ho Chi Minh City realise its goal of doubling the number of
enterprises in 2020, visiting senior advisor to the US Secretary of State
David Thorne said to local authorities on March 8.
Thorn said his visit is
part of a US programme to assist ASEAN countries, including Vietnam, in
promoting business and innovation.
He expressed his
appreciation for the southern city’s support for the construction of a
Fulbright University here.
He said he would try to
make sure that President Barack Obama will visit the south and Ho Chi Minh
City as part of his trip to Vietnam in May.
Ho Chi Minh City
welcomes Obama’s upcoming visit, Secretary of the municipal Party Committee
Dinh La Thang said, taking note of growing relations between the two nations
– particularly after a visit to the US by Party General Secretary Nguyen Phu
Trong in July last year.
Ho Chi Minh City pay
heeds to cooperation with US localities and enterprises, he added.
According to Thang, the
southern hub is home to more than 266,000 companies, which accounts for half
of all Vietnam businesses. Aiming to double the number by 2020, local
authorities have committed to promoting links in innovation and creativity
while supporting start-ups, especially that of young people.
Vietnam meets
with WTO, Swiss customs-finance officials
A delegation of
Vietnamese finance, customs and taxation officials visited Switzerland and
met with officials of the World Trade Organisation (WTO) and the Swiss
Federal Customs Administration and Federal Department of Finance from March 5
– 8.
The visiting delegation,
led by Deputy Minister of Finance Do Hoang Anh Tuan, included representatives
of the General Department of Customs and the General Department of Taxation.
At a working session
with WTO Director-General Roberto Azevêdo on March 7, the two sides discussed
the implementation of the WTO Trade Facilitation Agreement (TFA) in Vietnam,
which ratified the pact in November 2015.
As the head of the
negotiation group on the agreement, the customs general department actively
sought technical assistance to prepare for the TFA implementation and engaged
in bilateral and international forums on trade facilitation.
Deputy Minister Tuan
thanked WTO officials for helping Vietnam during negotiations and carry out
post-negotiation works, especially sending experts to help the country gain
an insight into and disseminate the deal.
Official WTO membership
since 2007 has helped Vietnam gain valuable experience and make use of the
organisation as a negotiation and dialogue channel to better protect
Vietnamese enterprises’ interests in the global business world, he added.
At a meeting with Deputy
Director of the Swiss Federal Customs Administration Robert Lussi the same
day, the two sides reviewed the cooperation between the two countries’
customs agencies, noting that they signed a cooperation document in 2012.
Lussi said Vietnam is an
important trade partner of Switzerland, and his country has continually paid
attention to building a bilateral cooperation programme.
Meeting with State
Secretary in the Swiss Federal Department of Finance Jacques de Watteville,
Tuan spoke highly of the nations’ cooperation, including technical assistance
to Vietnam to promote public financial management and public debt management,
fine-tune institutional framework and tax policies, streamline tax
procedures, and help with financial solutions for disaster risks and
insurance.
The officials also
shared experience in tax management and the realisation of the Vietnam –
Switzerland agreement on avoidance of double taxation, which took effect in
1997.
Temporary
safeguard measures on imported steel launched
The Ministry of Industry
and Trade (MoIT) has recently issued Decision No 862/QD-BCT on applying
temporary safeguard measures against steel ingots and long steel products
imported into Vietnam .
Accordingly, the
ministry will impose temporary safeguard duties of 23.3 percent on steel
ingots and 14.2 percent on long steel products for a maximum of 200 days.
However, the safeguard
measures will not be applied to a product originating from a developing
country, if that country’s share of total imports of the product is less than
3 percent, provided that the developing countries with less than 3 percent share,
collectively account for not more than 9 percent of total imports.
On December 25, 2015,
the MoIT issued Decision No 14296/QD-BCT on a safeguard investigation into
imports of steel ingots and long steel products, upon a complaint lodged by
local producers Hoa Phat Steel Joint Stock Company (JSC), Southern Steel Co
Ltd, Thai Nguyen Iron and Steel JSC and Vietnam-Italy Steel JSC.
Vietnam expects
17 billion USD from leather, shoe exports
Vietnam’s leather and
footwear industry expects to reach a total export value of 17 billion USD
this year, partly due to advantageous business conditions.
Nguyen DucThuan, Vietnam
Leather and Footwear Association (Lefaso) Chairman, said the chances of
expanding export markets are good this year due to advantages from free trade
agreements (FTAs) with the European Union (EU), the Republic of Korea and
especially the Trans-Pacific Partnership (TPP) agreement.
The zero tax rate under
the Vietnam-EU FTA and TPP, effective in 2018, will promote Vietnam’s exports
in leather, footwear, bags, umbrellas and suitcases in the future, he said.
In addition, the Court
of Justice of the European Union (CJEU) recently declared partially invalid
an anti-dumping regulation on certain leather footwear imports to the EU from
China and Vietnam.
It said that the Council
of the EU and EU Commission did not comply with certain procedural rules when
the regulation was adopted.
On October 5, 2006, the
Council of the EU adopted a regulation imposing an anti-dumping duty on
certain leather footwear imported from China and Vietnam to the EU with a
rate of 16.5 percent for footwear manufactured by companies established in
China (with the exception of the company Golden Step, whose anti-dumping duty
was set at 9.7 percent), and at 10 percent for footwear manufactured by
companies established in Vietnam.
The change to the
anti-dumping tariff for Vietnamese footwear will support local footwear firms
in reducing the current difficulties of production and business, he said.
Last year, Vietnam
gained a high growth rate in export value from the leather and footwear
industry at 15 billion USD, an increase of 16 percent year-on-year, according
to the association, including 12 billion USD from footwear.
Ha Duy Hung, Chairman of
the Dong Hung Industry Joint Stock Company, said the local leather and
footwear industry has in the past developed key export markets in Europe, the
United States and Japan, and they are expecting higher exports to those
markets in the future as the FTAs generate interest, the Dau tu online outlet
reported.
Now, Vietnam is one of
four largest footwear producers in volume on the world market, after China,
India and Brazil, and is also the third largest footwear exporter in value on
the global market, after China and Italy. Domestic footwear products have
been shipped to 50 countries and territories.-
Vietnam's
coworking space startup Toong raises 7-digit funding
Toong, a seven-month-old
startup that runs Vietnam's first coworking space chain, has secured a round
of seven-digit funding from a group of local investors, according to media
reports.
Details of the deal have
not been revealed, but the company was quoted as saying that their backers
have long operated in the sectors of investment, retail and services.
Local news website Dau
Tu said the backing is worth more than US$1 million, but some other reports
suggested it can be a multi-million deal.
vietnam's coworking
space startup toong raises 7-digit funding hinh 0
Linh Vu, marketing
manager at Toong, told Singaporean news website e27 that the new funding will
allow it to reinforce facilities and services at its two existing outlets,
both in Hanoi, and open a new one in Ho Chi Minh City this year.
In December last year
Toong reportedly raised US$300,000 from unnamed angel investors.
The company provides
space and different services for other startups, freelancers and tourists at
the starting price of VND90,000, or nearly US$4, for three hours.
FPT seeks
partners for retail business
Vietnam's tech giant FPT
is looking for partners with financial capacity and experience in retail and
e-commerce to expand its digital store chain, news website ICTNews has
reported, citing a representative.
FPT Shop, which saw the
fastest revenue growth among the group's subsidiaries last year, is now in
need of extra capital and advanced corporate governance, the unnamed
representative said in the website.
With nearly 270 stores
across the country, the chain posted a revenue of over VND7.83 trillion in 2015,
up 148% from the previous year and accounting for 19.6% of FPT's earnings,
according to the website.
It plans to open at
least 50 new stores this year, the representative said.
Top mobile retailer The
Gioi Di Dong (Mobile World) has expressed its interest in a deal with FPT
Shop, ICTNews reported.
CEO Tran Kinh Doanh told
the website that The Gioi Di Dong has planned to expand its business through
mergers and acquisitions since last year, but has yet to find a suitable
sale.
The retail giant itself
plans to add 100 stores this year, bringing its existing outlets to 850, the
website reported.
Gold no longer
glitters in Vietnam as prices fall below global rates
Analysts have reacted to
gold prices in Vietnam dipping below global rates for the first time in
nearly five years, saying it indicates that the precious metal is no longer a
safe haven asset in the country.
While there was
previously a traditionally wide gap between Vietnamese and global gold
prices, as high as VND7 million (US$313) a tael during 2013, a number of
management measures by the State Bank of Vietnam had turned the tide.
Gold is mostly sold in
Vietnam by tael, equivalent to 37.5 grams or 1.33 ounces.
Gold closed on March 8
in Vietnam at VND34.05 million (US$1,520) a tael, compared to the global
market’s closing price of US$1,266.5 an ounce, or VND34.09 million (US$1,522)
a tael.
The gap was some
VND160,000 (US$7.14) a tael on March 4, when prices in Vietnam dropped to
below global rates for the first times since 2011.
“Global gold prices rose
so fast that the market in Vietnam failed to react accordingly,” said Nguyen
Thi Cuc, deputy general director of Phu Nhuan Jewelry (PNJ), one of the major
gold producers in Ho Chi Minh City.
Cuc also admitted that
demand for gold among local consumers had dropped substantially.
“We sell around 200
taels of gold on a daily basis, which is nowhere near the peak of a few years
ago,” she said.
Global gold prices have
soared 19% so far this year, a pace as fast as that in July and August of
2011, according to gold expert Tran Thanh Hai.
“Such a sharp increase
could have encouraged everyone, from consumers and businesspeople to banks,
to invest in the precious metal, had it not been for the policy to tighten
the gold market by the State Bank of Vietnam,” he added.
As gold is under strict
and careful management of the central bank, domestic prices remained stable
and there was no ‘gold fever,' according to the expert.
Since late 2012, banks
in Vietnam have not been allowed to either accept gold deposits or offer
loans in the precious metal. There are also a limited number of licensed gold
shops across Vietnam after the central bank tightened the registration rules
the same year.
The State Bank of
Vietnam has also applied measures to stabilize the foreign currency market to
discourage people from holding onto gold or dollars.
“There used to be a
strong connection between gold, foreign currency and the dong,” Hai said.
But the VND is the only
pillar that is not tightly controlled, so such a connection is broken, and
thus unable to cause any ‘waves’ in the gold market, he added.
“All these factors have
made Vietnam’s gold market less active, and people are now hesitant to invest
in it,” he concluded.
When gold was more
valuable in Vietnam than in other countries, it was common for people to sell
gold smuggled from Cambodia to earn big profits.
However with raw gold in
Vietnam currently fetching some VND500,000 (US$22.32) a tael less than world
rates, local traders are collecting gold jewelry and turning them into raw
forms to sell across the border.
“Traders can earn more
than VND5 million [US$223] in profit from every kilogram of raw gold sold
across the border,” an industry insider said.
Cuc from PNJ also
confirmed the cross-border gold sales.
“But only some small
gold shops are doing this, while big companies are staying out of the trend,”
she said.
“However if gold prices
in Vietnam remain below global rates, smuggling will increase.”
Vietnam can only
afford half of spending planned for 2016-20
The Vietnamese
government will need twice as much as it can afford when it comes to spending
in the next five years, the Ministry of Planning and Investment has said,
raising the eyebrows of lawmaking National Assembly members.
The government is
seeking approval from the National Assembly for a tentative financial plan
for the 2016-20 period, with the capital needed for investment and
development totaling VND4 trillion (US$178.57 million).
“This is 2.1 times
higher than what the budget can afford, VND1.84 trillion [US$82.14 million],”
Minister of Planning and Investment Bui Quang Vinh admitted at a National
Assembly Standing Committee meeting in Hanoi on March 7.
The standing committee
was briefed on the spending plan before lawmakers officially decide on whether
to approve or reject it at the next meeting later this month.
As it will be difficult
to arrange enough capital as needed, the government suggested that allotment
be prioritized for such projects that are completed but not commissioned due
to financial hurdles, or those whose completion is expected to meet
deadlines, Minister Vinh said.
“For projects slated to
kick off in the 2016-20 period, the government suggests that only those that
are really necessary be kick-started,” he said.
“Construction of these
projects must be in line with the official development assistance and
preferential loans the government has signed agreements to receive.”
The financial plan also
proposes that the government be allowed to raise VND200 trillion (US$8.93
billion) in bonds for investment in traffic, irrigation, and healthcare.
In the meantime, another
report by the Ministry of Finance, also delivered by Minister Dinh Tien Dung
at Monday’s meeting, showed that government debt had already broken the
ceiling by the end of last year.
The government now owes
debts worth 50.3% of GDP, compared to the allowed 50% cap, according to the
report.
A ceiling of 65% is set
for national or public debt.
Public debts include the
government’s total outstanding loans from domestic and international sources;
government-backed debts, including guarantees on foreign loans of enterprises
and credit institutions and guarantees for loans/bonds in the domestic capital
market for financial institutions; and liabilities taken on by province-level
administrations.
The finance ministry
therefore advised that the ceiling for government debt be raised to 55% of
GDP by 2020, while the cap on national debt remains unchanged.
“The government will
have to guarantee large loans in the future as many megaprojects such as Long
Thanh International Airport and the Ninh Thuan nuclear power plant are slated
to be developed,” the minister explained.
The new airport, located
in the southern province of Dong Nai, needs VND336.63 trillion (US$16.03
billion) to build, whereas the nuclear power plant, located in the
south-central province of Ninh Thuan, costs some VND3.235 trillion (US$148.3
million).
But the proposal to hike
the debt ceiling for the government was rejected by National Assembly
chairman Nguyen Sinh Hung.
“Could you be able to
lower the cap once it is hiked to 55% of GDP?” Hung challenged the finance
minister.
“It will be a disaster
if you allow public debt to keep rising as in recent years.”
In 2015 Vietnam’s public
debt was some 61.3% of GDP, still below the 65% limit, but experts are
concerned that it will soon breach the ceiling.
After commenting on the
reports of the finance and investment ministries, the National Assembly
Standing Committee eventually decided to delay approval for them until the
next tenure of the legislative body.
“The government should
prepare the spending and investment plans more carefully so that the 14th
National Assembly can ratify them,” Hung said.
The finance ministry has
yet to have stable and firm solutions for earning money, whereas its
investment counterpart does not have a detailed list of projects that need
funding, according to the chairman.
“With all these
uncertainties and shortcomings, how could lawmakers give their nod?” he said.
Plastics
producers expect 16% growth
Viet Nam's plastics
sector will maintain its strong growth rate of 14-16 per cent in the next few
years due to its young population and high consumption capacity, according to
the Viet Nam Plastics Association.
Falling oil prices will
benefit the plastics manufacturing by lowering production costs but also
boosting demand, Ho Duc Lam, chairman of the association, said.
"The plastics
manufacturing industry is one of the fastest-growing industries in Viet Nam,
sustaining an average annual growth of 16-18 per cent between 2010 and
2015," he added.
"Viet Nam's
production output of plastics per capita increased sharply from 3.8 kg/per
year in 1990 to the current 41kg/per year," Lam said at a workshop held
yesterday in HCM City.
In developed countries,
the average per capita consumption is much higher. In Japan, it is 118kg/per
year, in the US 155kg/per year and in the EU 146kg/per year.
Most of the production
is concentrated on domestic items with packaging (37 per cent), household
appliances (29 per cent), construction (18 per cent) and technical products
(15 per cent).
Plastics in the
technology industry such as pressure pipes and covers of TV have high added
value but very few enterprises are engaged in this work, he added.
The biggest challenge
for the domestic plastics industry is the import of raw materials, which
accounts for 85-90 per cent of raw materials.
The sector imports an
average of 3.5 million tonnes of raw materials while domestically produced
supplies of raw materials and chemicals are only 900,000 tonnes.
By 2020, domestic
plastics producers would need five million tonnes of raw materials for
manufacturing.
The plastics industry
lacks technology and know-how, with many of the polymer manufacturers using
out-of-date equipment imported from China.
The plastics industry
needs to invest more than US$2.5 billion in machinery every year.
Last year, plastics
exports rose by 12.4 per cent compared to the previous year, with export
revenue totaling $2.4 billion.
The largest importers of
Viet Nam's plastics products were Japan (22 per cent) and US (14.6 per cent).
The sector has more than
2,200 enterprises, with private enterprises accounting for 99.8 per cent and
the remaining 2 per cent belonging to State-owned enterprises.
Local firms
urged to close ranks
Domestic businesses
should be more closely associated with each other to take advantage of the
Trans-Pacific Partnership agreement (TPP), Tran Quoc Khanh, deputy minister
of Industry and Trade, said.
Khanh told the
conference on TPP – Opportunities and Challenges for development of
industrial sectors in Viet Nam held in Ha Noi on Tuesday that all economic
sectors would be competing equally while participating into the trade pact.
However, small scale businesses could be removed, creating conditions for the
restructuring of production sectors.
"Local enterprises
should be active in seeking information relating to trade pacts while
improving their human resources," he said.
The deputy minister
urged firms to closely follow the road map and regulations on the market open
in the TPP to build their own production plans as well as improving competitiveness
in joining supply chain in the region.
Sharing the ideas,
Nguyen Van Sua, vice chairman of Viet Nam Steel Association said the number
of small scale businesses in terms of financial resources, technology and
management skill in several industries was big.
Businesses should
improve their product quality while connecting with each other to compete
with foreign firms in a big market with strict regulations on origin and
quality.
"Management
agencies should support firms in trade defence and provide them information
to access the market," Sua added.
The ministry's Heavy
Industry Department also urged close co-ordination between State agencies and
businesses to expand operation and export and minimise adverse impacts of
market opening.
State agencies need to
assess the TPP's possible impacts on local goods, investment and services
areas so as to fine-tune policies designed for TPP-benefiting industries.
Meanwhile, companies
should also acquire an in-depth knowledge of free trade agreements to grasp
opportunities, the department added.
Vo Tri Thanh, former
director of the Central Institute for Economics Management (CIEM) said
Vietnamese enterprises should co-operate with multinational groups to join
the global production chain.
Thanh forecast that the
country's advantage of cheap labour cost may not exist in the next 15 to 20
years due to the rapid development of automation.
Viet Nam would not find
it easy to take advantage of the TPP if the knowledge of Vietnamese
businesses about the pact is still limited, and when they lack a support
mechanism, he added.
He said local firms
should pass the barriers of technical standards and hygienic safety
regulations.
In addition, the
government should have policies for the development of the exporter. Viet Nam
has seen a shortage of immediate companies which have adequate information
and professionals to bring Vietnamese goods to the foreign markets.
Businesses were also
urged to increase the localisation rate to enjoy preferential in TPP.
Dong Nai promises incentives to investors
in large-scale fields
The southern province of
Dong Nai will offer incentives to attract enterprises and co-operatives to
invest in large-scale fields.
At a meeting on March 2,
Vice Chairman of the provincial People’s Committee Vo Van Chanh urged local
agencies to publicise incentives and facilitate investors’ access to those
measures.
Dong Nai has issued a
range of preferential policies to stimulate investment in large-scale fields,
including land and water surface leasing-free schemes, subsidies in manpower
training, market development and technological scientific application.
However, investors are hesitant due to a lack of information about those
measures.
According to the Dong
Nai Department of Agriculture and Rural Development, four large field
projects on cashew, sugar cane, cacao and coffee farming have been approved
in the province. Another 28 projects have been registered for 2016.
SMEs eye
opportunities from integration
After finishing
construction of a factory that makes plastic materials, Hung Phat Co, Ltd of
HCM City's Binh Tan district has quickly imported modern machines to expand
production.
Nguyen Hung, its
director, said sales have increased strongly thanks to good quality and
competitiveness compared even to other countries in the region.
The formation of the
ASEAN Economic Community (AEC) and Vietnam's free trade agreements have
opened up export opportunities but also great competition even in the
domestic market, he told Dau tu (Vietnam Investment Review).
"To capitalise on
the opportunities and overcome the challenges, I researched a lot to expand
production scale to gain a firm foothold in the market and compete with
foreign firms."
Hoang Thanh Thuy, after
working for a foreign garment company for more than 10 years, set up her own
in 2012 with 20 workers.
Two years later, with
the country preparing to sign the Trans-Pacific Partnership (TPP) agreement
and the imminent establishment of the AEC, she decided to expand.
Now her company, Van
Tuong Garment Co Ltd, has a factory in Tan Phu district with nearly 100
skilled workers.
Last year she signed a
large outsourcing order for the Japanese market.
Japan is a fastidious
market with stringent technical requirements, and so her company had to
methodically invest in technologies and technical processes, she said.
TPP would bring
opportunities for her company to boost exports to Japan, she said, adding
that she plans to buy more advanced machinery and equipment to expand
production.
Besides the garment and
textile sector, the wood processing sector, with a large number of small- and
medium-sized enterprises, will also benefit from international integration.
Thien Huong Interior Co
Ltd in Long An province are busy fulfilling export orders from the US.
Nguyen Van Hoan, its
director, said though he only runs a medium-sized company, he always keeps a
close eye on information related to TPP and expects the wood products sector
to enjoy its benefits since most Vietnamese companies import timber from and
export products to member countries.
While they lack the
financial strength of large companies, SMEs have developed close linkages
among themselves in each stage of production, which enables them to make
quality products that are able to compete in global markets, according to the
HCM City Business Networking Club.
RoK firm
cooperates in developing support industry
Korean leading
manufacturer Woojin Plaimm will supply machines and maintenance services to
Minh Nguyen support industry company under their comprehensive strategic
cooperation agreement signed in Ho Chi Minh City on March 2.
The deal will give a
boost to Minh Nguyen company’s Phuoc Thanh Hi-tech Research, Application and
Production Complex project for 2016-2017, under which the Korean partner will
also send technicians to Vietnam to offer training in operating machines.
Built at a total cost of
1.6 trillion VND (72.7 million USD), the complex is able to produce 20
million products per year once operational, mostly hi-quality technology
products such as plastic and metal electronic components and moulds for the
plastic industry, among others.
Woojin Plaimm currently
has representative offices in 23 countries worldwide, including Vietnam,
which it considered as a strategic market.
Ha Nam welcomes
new Korean-funded project
The Republic of
Korea-based HTC company had a working session with Ha Nam’s authorities on
March 2 concerning the construction of its plant in the northern locality.
According to HTC
Director General Lee Chang Bok, Ha Nam has a good investment policy for
foreign investors, especially those from the Republic of Korea and Japan. It
also has a favourable geographical location and productive trade ties with
Hanoi and other neighbouring provinces.
Taking into account
these conditions, the company decided to invest in building a plant producing
high-quality household articles in the Dong Van I industrial park. The
facility will cover 20,000 square metres, costing an estimated initial
investment of up to 8 million USD.
Vu Dai Thang, Vice
Chairman of the provincial People’s Committee, said his agency will make it
easier for HTC to finish relevant administrative procedures.
He hopes the plant will
soon complete and operate productively, and that more Korean businesses will
choose Ha Nam as their investment destination.
Currently, 155 foreign
enterprises are investing in the province, 82 of which are from the Republic
of Korea.
ADB continues
supporting trade activities in Vietnam
The Asian Development
Bank (ADB)’s Trade Finance Programme will provide the Ho Chi Minh City
Development Joint Stock Bank (HDBank) and the Saigon-Hanoi Commercial Joint
Stock Bank (SHB) with guarantees of up to 100 million USD a year to support
trade activities in Vietnam.
Agreements to this
effect were signed between the programme and its two Vietnamese partners in
Hanoi on March 2.
Accordingly, ADB and its
new Vietnamese bank partners will support exporting and importing companies,
including small and medium-sized enterprises, thus helping boost economic
growth and create jobs, said Steven Beck, ADB’s head of trade finance.
The deals raised the
number of Vietnamese banks involving in the programme to 11, said Eric
Sidwig, ADB Country Director in Vietnam .
Since 2009, the
programme has conducted over 4,300 transactions, supporting 6.5 billion USD
in trade in Vietnam , he said.
Backed by ADB's AAA
credit rating, the Trade Finance Programme provides guarantees and loans to
over 200 partner banks to support trade, enabling more companies throughout
Asia to engage in import and export activities.
With dedicated trade
finance specialists and a response time of 24 hours, the programme has
established itself as a key partner in the international trade community, providing
fast, reliable, and responsive support to fill gaps in the region’s most
challenging markets.
Since 2009, the
programme has supported more than 6,000 small and medium-sized enterprises
across the region, through about 10,000 transactions valued at over 20
billion USD, in sectors ranging from commodities and capital goods, to
medical supplies and consumer goods.
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR
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Thứ Năm, 10 tháng 3, 2016
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