Thứ Ba, 15 tháng 11, 2016

BUSINESS IN BRIEF 15/11

ACFTA brings opportunities, challenges to farms   
  
 ACFTA brings opportunities, challenges to farms, Vietnam exports to Belgium surge, Masan Horizon set to acquire Masan Resources, NSFC warns of low credit flow to property, Vietnam currency firmer against hard currencies
The zero per cent tax on Chinese agricultural products exported to Viet Nam and ASEAN has increased domestic concerns about market domination, though others are optimistic, seeing competition as an opportunity for Vietnamese agriculture to change and rebound.
According to agreements under the ASEAN–China Free Trade Agreement (ACFTA) for the 2016 to 2018 period, thousands of commodities from the ACFTA member countries will enjoy an import tax of zero per cent in Viet Nam if they have certificates of origin that coincide with the industry and trade ministry’s regulations.
The ACFTA member countries include China, the Philippines, Thailand, Singapore, Myanmar, Malaysia, Laos, Indonesia, Cambodia, Brunei and Viet Nam.
The Vietnamese Government issued Decree 128/2016ND-CP on September 1, 2016 to clarify the implementation of the special preferential import tariff schedule for the ASEAN-China Agreement 2016-18. Accordingly, many products, including vegetables, fruit and food, will be taxed at zero per cent during this period.
Statistics from the General Statistic Office showed that China was Viet Nam’s largest importer during the first nine months of this year, with a turnover of US$36 billion. Also, China’s excess of imports over exports was reported to reach $21.3 billion.
Meanwhile, Viet Nam imported seafood and vegetables from China valued at US$45.3 million and $146.9 million, respectively, according to Viet Nam’s General Department of Customs.
With the import tariff of zero per cent, goods from China and ASEAN members will put pressure on domestic goods, especially agricultural products, as many products from such countries have already flooded the Vietnamese market.
A number of Chinese products, which are on the list of enjoying zero per cent tax, have prices that are cheaper than those of local products. Meanwhile, a number of Thailand’s fruits, have high quality, though their prices are more competitive than the Vietnamese fruits.
Many economic experts have expressed their concerns that Vietnamese agricultural products may suffer in the domestic market if businesses do not change.
Deputy Chairman of Viet Nam Gardening Association Vo Mai told enternews.vn that Chinese products, such as potato, onion, cauliflower, orange, mandarin and grapes, would be in fierce competition with similar Vietnamese products.
The same could apply to other Chinese products, such as mangos, jack-fruit, plums, grapes and peaches, which have more opportunities to compete with domestic fruits, said Mai.
A representative of a breeding farm in the southern province of Dong Nai said a very large volume of chicken legs and wings from China, were temporarily imported to Viet Nam for re-export, but many batches had not been re-exported but consumed in the domestic market – causing many difficulties for Vietnamese chicken farmers, while affecting local consumers because of their low quality.
“With the door-open for free-duty products, Chinese low-price products, such as meat and chicken by-products, will have more of a chance to enter Viet Nam – causing difficulties for local animal breeding,” said the representative.
Chairman of Viet Nam Farmers’ Association Lai Xuan Mon said the importing of Chinese fruit to Viet Nam with free duty would bring about both opportunities and challenges to Vietnamese businesses.
“The important thing is how to turn such challenges into opportunities,” said Mon.
To maintain its market share, it will be necessary to increase the quality of products. Yet the challenge for Vietnamese agricultural products is not small, said Mon.
Mon noted that the country’s capacity for quarantine and food safety examinations was still limited, so it must pay attention to tightening the management of imported products from China, noting that they should be checked by the inspection bodies of both countries.
Economic expert Pham Chi Lan said that competitive pressures included not only competition on prices, but also quality. It was necessary to provide information to farmers and consumers, because they needed sufficient information about the market and the product quality, including those who take responsibility for ‘dirty’ products appearing in the market. 
Ha Noi Promotion Days: low price, high quality     
The Ha Noi Golden Promotion Days, held last weekend, attracted hundreds of thousands of people to Ha Noi seeking to purchase products discounted from 10 to 50 per cent.
The Ha Noi Department of Industry and Trade organises the Promotion Month every year, with the aim of boosting consumption and helping businesses draw customers.
The highlight of the month is Golden Promotion Days, with the aim of providing Vietnamese consumers with high-quality goods at reasonable prices, as well as helping enterprises promote their products and stimulate consumption during the final months of the year. To protect consumers, as well as the reputation of enterprises, the department sets up groups to check sale points.
Many large-scale enterprises and supermarkets, such as Pico, HC, Hapro, Big C, Vinmart, Lan Chi Mart and MediaMart, took part in this event.
Dao Duc Quy, head of the marketing department at Lan Chi Mart, told the Vietnam News Agency that the mart deducted a portion of its profits in order to create a deeper promotion for some product groups. The household product group saw the deepest discounts, he added.
Also, production companies, trade centers and supermarkets conducted many types of promotions, attracting a large number of consumers coming to shop.
Nguyen Van Manh, a customer of MediaMart electronics store, said he bought a washing machine with installment payments with interest rates of zero per cent for six months.
“Buying the washing machine on that day meant I saved more than VND1 million (US$45),” he said.
Through checking at Golden Sale Locations, businesses participating in the event generally complied with four criteria set by the Ha Noi Department of Industry and Trade, according to Tran Thi Phuong Lan, deputy director of the department.
These include spreading information about the Golden Promotion Days; the preparation of products with high quality and clear origins; assurances of no counterfeit and substandard products, and having staff to serve the interests of consumers before and after purchases.
Nearly 500 enterprises participated in Ha Noi Promotion Month, offering wide-scale discounts at 1,000 sale locations. Promotional sale locations discounted their products from at least 10 per cent starting November 11 and ending on November 30 in Ha Noi.
Promoted product groups include food and beverages; electric products, electronics and computers; household appliances; home furniture; handicrafts; cars and motorbikes; and other consumer products. 
Vietnam exports to Belgium surge
Overseas consignments to Belgium jumped 10.68% to US$1.4 billion for the nine months leading up to October, according to the latest statistics from the General Department of Vietnam Customs.
Major exports included industrial, agricultural and manufacturing and processing products. Footwear topped the list at US$588.6 million (up 18.44%), trailed by clothing (US$150.4 million, up 11.8%) and coffee (US$95.4 million, down 0.98%).
Around 60% of export products to Belgium obtained growth while 40% saw declines in value. At the high end – computers, electronics and components – enjoyed robust growth of 102.97%, while at the low end rice plummeted 50%.
Masan Horizon set to acquire Masan Resources
Masan Horizon Corp. (MH), a subsidiary of the Masan Group, is ready to outlay VND2.8 trillion ($126 million) to acquire the remaining shares of Masan Resources (MSR), the owner of the Nui Phao Mining Company.
A representative from Masan told VET that the deal will take place between November 11 and December 12. As VET reported previously, the Masan Group announced a plan to acquire all remaining shares in MSR via MH.
MH will acquire more than 180 million shares with voting rights, equal to 25.05 per cent of MSR’s charter capital. After the transaction, MH will hold a total of 703.54 million, representing 97.79 per cent of charter capital and 100 per cent of shares. The starting price is VND15,500 ($0.68) per share.
Masan plans to borrow $35 million and issue 12 million shares at a price of VND95,000 ($4.2), which if successful will bring in VND1.14 trillion ($51.3 million). It will also issue 12 million individual shares at a price of VND95,000 ($4.2) each to support MH’s move.
The Nui Phao project was licensed in 2005 and has significant deposits of tungsten, fluorspar, bismuth and copper, and is the world’s largest tungsten mine outside of China. It covers an area of 9.21 sq km in Dai Tu district, northern Thai Nguyen province.
In 2010 MSR acquired the project from Dragon Capital, a Vietnam-focused financial institution, and other stakeholders. The mine began commercial operations in the first quarter of 2014.
Prior to Dragon Capital the project was owned by Canada’s Tiberon Minerals Ltd, with a 70 per cent holding. Due to the economic crisis at the time, Tiberon sold the project to Dragon Capital in 2007. Dragon also lacked the capital for the project and was forced to suspend it in 2008. 
The Ministry of Natural Resources and Environment (MoNRE) is to conduct an inspection of the large Nui Phao mine within 45 days of September 28 after claims of environmental pollution were made.
Following complaints from local people about the project's environmental impact, MoNRE has worked with the Thai Nguyen Provincial People’s Committee to prepare a comprehensive inspection plan that covers environmental protection and mineral, water and land resources.
The ministry also asked the Nui Phao Mining Company, the project owner, to evaluate the impact of the project on the environment and the lives of local people. Based on the company’s report, the ministry and local authorities will decide whether it is necessary to relocate nearby villages.
MSR currently holds 63.4 per cent of the project’s charter capital. In the first quarter of this year MSR reported revenue of VND806 billion ($36.2 million) and a pre-tax loss of more than VND400 million ($18 million). Tungsten accounts for the highest proportion of its revenue, reaching VND450 billion ($20.2 million).
In the first nine months of this year MSR’s revenue reached VND2.8 trillion ($126 million) and after-tax profit VND110 billion ($4.95 million), up 53 per cent year-on-year.
MSR previously reported mixed business performance for the second quarter, with revenue rising but profit falling. Total revenue of the mining arm of the Masan Group grew 2.5-fold year-on-year to VND939.3 billion ($42.2 million) in the quarter, while net profit was VND58.7 billion ($2.6 million), down 70 per cent. 
Falling commodity prices are behind the decline in profit, according to MSR. In the first six months it produced 2,756 tons of pure tungsten and mined and processed 3,397 tons of ore.
MSR has recently held its first shareholders meeting since being listed on the Unlisted Public Company Market (UPCoM), where leadership positions were changed.
NSFC warns of low credit flow to property
The National Financial Supervisory Commission (NSFC) has issued a warning about the low levels of credit flowing into the real estate sector, which fell short of targets in 2016 compared to last year and eroded into growth of consumer loans.
Real estate credit recorded 12 per cent growth in the third quarter of 2016, much lower than the 28 per cent growth recorded in 2015, while consumer credit increased 40 per cent, with more than half related to the purchase of housing, Mr. Truong Van Phuoc, Deputy Chairman of the NFSC, told the Financial Markets Overview 2016 seminar on November 10.
Profits in the entire banking system are estimated at VND120 trillion ($5.45 billion) this year, he added. Banks, however, must set aside VND70 trillion ($3.1 billion) in bad debt provisions, bringing down profit to VND40 trillion ($1.8 billion). “With other expenses taking two-thirds of profits, bad debts remain a heavy burden on banks,” he added.
Vietnam’s banking system is expected to handle about VND100 trillion ($4.54 billion) in bad debts this year, with fewer debts moving to the Vietnam Asset Management Company (VAMC) than last year, at about 20 per cent. Banks must handle the remainder through reclaiming debts or selling collateral.
The NFSC will also release a Financial Market Overview 2016 report this month. Economic growth was positively supported by funding provided to the economy in 2016, representing 170 per cent of GDP.
The stock market rose nearly 20 per cent and market capitalization reached 38 per cent of GDP compared with 32.4 per cent last year.
Former Minister of Industry and Trade Truong Dinh Tuyen told the seminar that the saying “bad debts are treated positively” is not accurate because they remain a major problem that limits the ability to cut interest rates.
Meanwhile, Mr. Le Duc Thuy, former Governor of the State Bank of Vietnam (SBV), said the manner in which bad debts are handled needs to be reconsidered. “The State budget should not be used to deal with the bad debts of State-owned enterprises or State-owned commercial banks,” he said.
The bad debt ratio in Vietnam’s banking system as at June 30 had fallen to 2.58 per cent from 2.78 per cent at the end of May, according to an SBV report released on August 11.
Total bad debts handled stood at VND59.71 trillion ($2.7 billion) in the first half, 14.55 per cent lower year-on-year, the SBV reported, based on final figures from the VAMC and financial institutions.
VND8.88 trillion ($394.68 million) in bad debts were moved to the VAMC in the first half. Financial institutions used VND7.24 trillion ($324.71 million) in risk provision to handle bad debts.
Vietnam currency firmer against hard currencies
The Vietnam dong currency has strengthened against strong currencies since the surprise outcome of the U.S. presidential election last week while the local gold price has edged down 4%.
In the four days after Republican Donald Trump’s election win, the dong rose 4% against the Japanese yen and nearly 3.5% versus the euro. Meanwhile, banks quoted gold at around VND35.7 million (US$1,594.8) per tael on November 13, a sharp decline from VND37.2 million before Election Day (November 8). A tael equals to 1.2 troy ounces.
The foreign exchange market became volatile in tune with global financial market movements, with the yen losing 6.7% against the U.S. dollar in less than 100 hours after the U.S. election and the euro falling 4.5%. The yellow metal also retreated, tumbling from over US$1,300 to US$1,227 an ounce.
Before the election, Wall Street experts and investors forecast gold would hit U$1,500 an ounce on the backdrop of the dollar fall if Donald Trump won the White House race. On the contrary, the dollar would be firmer against the currencies of G7 industrialized economies if Hillary Clinton was the winner.
The dollar soared while the Dow Jones hit a record high of 18,847 and gold tumbled, breaking the usual pattern that risky assets would dip when a currency gets firmer.
In Vietnam, the dong remained stable against the greenback, hovering at VND22,360 to VND22,370 per U.S. dollar. Since early September, the domestic currency has lost a slight 0.13%.
The State Bank of Vietnam’s central rate has increased 0.62%, meaning the dollar has appreciated 0.62% versus the dong since early September and 0.76% since early this year. Banks and traders on the informal market have barely revised exchange rates, an indication that dollar supply is ample.
Notably, the dong has stabilized against the Chinese yuan. Since early this year, the yuan has dropped 4.6% against the dollar, the biggest fall in nearly 30 years.
TWG Tea enters Vietnam market
TWG Tea, one of the most luxurious tea brands in the world, last week made its first public appearance in Vietnam by opening a flagship tea salon and boutique on level 2 of the Takashimaya Department Store in the heart of HCMC.
Since its inception in 2008, the tea brand has appeared in 55 locations in 16 countries. After its recent entry into major tea producing countries and territories like Japan, China and Taiwan, TWG Tea is now in Vietnam, one of the fastest growing markets for premium quality tea in the region.
According to TWG Tea, Vietnam offers an avid existing market of tea drinkers.  The new tea salon and boutique offer more than 800 fine harvests and exclusive tea blends, sourced from over 200 tea plantations in 46 tea producing areas from around the world. All of the teas may be enjoyed at TWG Tea Salon or purchased by weight from 50 grams in sachets or in one of the brand’s bespoke tea tins.
The tea house is open daily from 9 a.m. to 10 p.m.
Corporate governance institute in the making
An institute for corporate governance will be established to train managers, set up a manager network and evaluate corporate governance on the stock market.
Pham Hong Son, deputy chairman of the State Securities Commission (SSC), spoke about the plan at a corporate governance seminar themed “Mission and evaluation of the board performance” held by the Hanoi Stock Exchange (HNX) in Nha Trang, Khanh Hoa Province last Friday.
The roles and responsibilities of board members are increasingly important and heavy in regional countries including Vietnam due to the development of financial markets, said Bordin Unakul, vice president of the Stock Exchange of Thailand.
From a legal perspective, lawyer Vu Dung from YKVN Company said board members were first obliged to be honest and diligent, be loyal to the interests of shareholders, disclose any potential conflicts of interest and abide by law. He mentioned the possibility of board members committing criminal offenses if they deliver falsified reports on economic management, deliberately release misleading information, conceal the truth in securities trading or manipulate stock prices.
Vu Huu Dien at fund management company Dragon Capital raised a question about wages and bonuses for board members. The establishment of a remuneration committee at public companies is required to make public wage and bonus payments and improve the efficiency of the board.
However, such committees are now found at a number of big listed companies. A report on corporate governance of the Asian Development Bank (ADB) says the remuneration mechanisms of Vietnamese firms are still weak.
Reportedly, the awareness and adoption of international practices on corporate governance in Vietnam remain limited.
Foreign investors have little interest in agriculture
Agriculture in the Mekong Delta has attracted little foreign direct investment (FDI) capital despite its growth potential, according to a conference in Can Tho City last Friday.
A report of the Vietnam Chamber of Commerce and Industry (VCCI) in Can Tho presented at the conference said the delta is responsible for more than half of Vietnam’s food output, 70% of seafood exports and 90% of outbound rice sales.
The delta’s economy has grown steadily and its gross domestic product (GDP) growth has been higher than the country’s average. The delta makes up 41% of agricultural production value and 20% of GDP in Vietnam.
However, FDI commitments to the delta are limited. According to the report, FDI approvals in the region reached US$1.67 billion in the first nine months of this year, 10.2% of the country’s total.
Of which, agriculture attracted 50 FDI projects worth a combined US$209 million.
Speaking to the Daily on the sidelines of the conference on mechanization and modern technology use in agriculture, Vo Hung Dung, director of VCCI in Can Tho, said that in the past agricultural development was based on only land and manual labor, so it was difficult to attract investment in the sector.
Dung told the conference that Vietnam’s agriculture holds huge growth potential as consumer demand is rising at home and abroad.
The growing middle class and non-farm sector have led demand for processed farm produce to edge up. Such demand by importing countries, especially China, has also increased.
Dung said middle-income people require high-quality products, which will put huge pressure on the agriculture sector. Therefore, the application of advanced technology to cultivation, livestock and seafood sectors is a must.
This will boost the development of supporting industries such as mechanical engineering, renewable energy and information technology, Dung said, adding the country should grasp opportunities to attract as much FDI capital as possible to fuel agricultural growth in the coming time.
Govt says no to policies that affect budget revenues
The National Assembly (NA) said in a resolution on the 2017 State budget estimate that the Government should refrain from issuing any policies that would cause State budget revenues to fall.
The resolution was passed at a NA session last Friday. Next year, budget revenues are estimated to reach some VND1,212 trillion and budget expenditures VND1,390 trillion while budget deficit is capped at VND178.3 trillion, 3.5% of gross domestic product (GDP).
The central State budget deficit will be restricted at 3.38% of GDP and deficits of provincial budgets at 0.12% of GDP. They fall in line with the amended Law on State budget that will go into force in 2017.
The NA also allows the Government to borrow to fund budget deficit and pay debt, which would amount to VND340.16 trillion. The Government must strictly observe fiscal policy and the 2017 State budget estimate, tighten inspections, and make budget spending transparent to prevent corruption and wastefulness.
Tax collections should be done well while certain fees will be converted into service prices.   
From next year, revenues from road use fee on autos and maritime security fee will be used to carry our road maintenance and ensure safety at sea.  
Revenues from the environmental protection fee on fuels will be distributed to the central and provincial budgets in accordance with the law. Notably, all special consumption tax on Nghi Son oil refinery’s fuels will go to the central State budget from 2017 but this will be reviewed in 2018 when the plant comes into stable operation.
Some 72% of profit from Vietnamese oil and gas sales and profit from Vietnamese-Russian oil joint venture Vietsovpetro should go to the State budget and the remainder will go to Vietnam National Oil and Gas Group.
Revenues from lottery sales in provinces and cities will go to their budgets and all of the sums will be used to fund priority investment projects in areas such as education, training, healthcare, rural development and climate change adaptation. 
The Government must make ensure bonds with a tenor of over five years will account for at least 70% of total bond sales to meet demand for capital mobilization, debt restructuring, risk management and bond market growth.
In 2017, bond sales are set at VND50 trillion which will be used to fund major projects in the medium-term public investment plan. The NA will enhance inspections on the use and payment of debt, especially new and Government-guaranteed loans, to keep outstanding foreign and Government loans at permissible levels.
BAOOV wants to join effort to develop nation
The Business Association of Overseas Vietnamese (BAOOV) had a meeting last Friday to discuss ways to contribute to developing Vietnam.
Phung Kim Vy, chairman of The Cliff Resort, said at the meeting that most overseas Vietnamese who want to explore business opportunities in the country often turn to EuroCham, AmCham, and CanCham for help, instead of BAOOV. Therefore, BAOOV should have specific and practical action plans to serve as a bridge between overseas Vietnamese and the country.
Vietnamese-American David Ho said the organization should create chances for Vietnamese business people from around the world to work together, especially through a cooperation project.
Regarding upcoming activities of BAOOV, Vietnamese-Canadian Nguyen Thanh My, general director of Rynan AgroFoods Co. and chairman of BAOOV, said the association will call for overseas Vietnamese, especially young people, to attach more to their homeland and make the association more proactive. 
BAOOV will also urge the domestic business associations to help local enterprises export goods to foreign markets and bring advanced technologies to Vietnam, according to My.
BAOOV can establish a group of overseas Vietnamese experts to give advice and services regarding new technologies like big data and smart agriculture to help Vietnam become a smart nation.   
My proposed the Ministry of Foreign Affairs rename the association as the association of Vietnamese businesspeople and experts in the world.
VND95 trillion in bad debt settled
Bad debts totaling VND95 trillion (US$4.26 billion) have been settled this year, according to a National Financial Supervisory Commission (NFSC) report.
Debts sold to the Vietnam Asset Management Company (VAMC) account for 21% of the total while those handled through risk provisions make up 26.6% and collections from debtors and sales of mortgaged assets 52.4%.
According to the report on Vietnam’s financial market released last week, bad debts in the economy remain huge. The average bad debt ratio in the banking system is 2.8% and debt purchases by VAMC account for 4.4% of total outstanding loans.
Total assets of financial organizations amount to VND8,400 trillion, up 13% against the end of last year, with banks making up 96%.
Money supply is equivalent to 175% of gross domestic product (GDP), a 20% pickup from end-2015, with total outstanding loans accounting for 62.5% and capital from the equity market the remainder.
The average annual lending rate is 8.5%, unchanged from December last year, and the deposit rate around 5%, up slightly from 4.5% last December. Foreign currency supply is ample.
NFSC chairman Vu Viet Ngoan said the financial system’s capital supply for the economy this year has grown 15.1% compared to last year, and made up 170% of GDP. Local and foreign investors’ confidence has strongly improved.  
Vietnam’s stock market capitalization has climbed 20% and now is equivalent to 38% of GDP, well above 32.4% in 2015. Indirect investment has edged up 20%.
The report said 37.5% of capital supplied for the economy has come from the equity market, lower than over 50% in ASEAN nations.
The report said rising public debt and limited resources would be challenges for Vietnam’s economy next year. Besides, the agricultural sector has grown slowly and the economy has depended on the foreign direct investment sector. The restructuring of many sectors has been slow and the financial system has remained reliant on banks.
Meanwhile, bad debt hinders the possibility of interest rate cuts.
The report emphasized that policy for 2017 will be biased towards the stabilization of the financial system.
Turkey imposes AD duty of 72.56% on Vietnam polyester textured yarn
The Turkey Ministry of Economy’s General Directorate of Imports has issued the final decision on anti-dumping investigation into polyester textured yarn imported from some countries, including Vietnam.
Accordingly, it will impose anti-dumping duties of 34.81% - 72.56% on Vietnam products and 6.88% - 37.69% on Thai products, said the Vietnam Competition Authority (VCA) under the Ministry of Industry and Trade.
Earlier in May, Turkey initiated anti-dumping investigations into polyester textured yarn imported from Thailand and Vietnam after Korteks Mensucat Sanayive Tic. A.S lodged a lawsuit.
This is not the first time Turkey conducted anti-dumping investigations into Vietnam fibres. It has levied anti-dumping duties on yarn of man-made or synthetic or artificial staple fibres imported from Vietnam, Malaysia, Greece, Pakistan and Thailand.
The VCA said the imposition of AD duties will significantly affect Vietnam exports of polyester textured yarn to the market.
Vietnam's exports to ASEAN fall in Jan-Oct in worrying sign
The formation of the $2.2 trillion ASEAN Economic Community seemed to be no help at all.
Vietnam saw a 7% decline in exports to other members of the Association of Southeast Asian Nations, also known as ASEAN, in the first 10 months, Thanh Niennewspaper has reported, citing customs statistics.
This trend was different from strong performances seen in other markets: shipments to the U.S. soared by 15%, the E.U. 4%, China 23.9%, and the Republic of Korea 29.1%.
Exports from Vietnam to its neighboring countries in the Southeast Asian region, a market of 600 million people, are mostly crude oil, rice and steel, but even these key products are struggling.
Vietnam, despite being recognized as one of the world’s largest rice exporters, has become less competitive in Southeast Asia because it has failed to improve the quality of the grain and to build a national brand name, said Pham Thai Binh, a rice exporter in the Mekong Delta city of Can Tho.
The country is traditionally more focused on quantity rather than quality, a strategy that has backfired, especially for rice exports, said Bui Huy Son, director of the Trade Promotion Department under the Ministry of Trade and Industry.
Vietnamese rice exporters are facing intense competition from Thailand and Myanmar, he added.
Local steel makers have also taken a hit as Chinese products have flooded regional markets. In response to anti-dumping measures by the U.S. and the E.U., Chinese steel exporters are shifting to ASEAN countries.
Steel exports from China to ASEAN have rivaled those from Vietnam, said Do Duy Thai, chief executive officer of a local steel company.
Besides, while ASEAN nations have removed or cut tariffs, major non-tariff barriers remain, said Le Thu Huong, an executive of rubber company Casumina.
She suggested that such technical trade barriers have contributed to the drop in Vietnam’s exports to ASEAN neighbors.
The ASEAN Economic Community was formally opened at the end of last year after a decade of preparation. But it may take at least several more years before the ambitious project can fulfill the goal of creating a unified regional market with free flows of goods, capital and labor.
Vietnam traditional lottery to raise jackpot as computerized rival announces third winner
Administrators of the traditional lottery in southern Vietnam will next year raise its prize money amidst stiff competition from a new computerized lottery, which on November 13 announced its third jackpot winner in four months.
Twenty-one lottery companies operating in southern Vietnam have announced a joint plan to raise their top prize to VND2 billion (US$89,300), starting on January 1, 2017.
The new top prize is a 33-percent increase from the current VND1.5 billion ($67,000), which has been in place since 2011.
However, the second and special bonus prizes of the traditional lottery will be reduced by 25 and 50 percent respectively to make up for the increase. Their current values are VND20 million (US$900) and VND100 million (US$4,500) respectively.
The remaining runner-up prizes of the traditional lottery will remain the same.
The move by the southern lottery companies is seen as an answer to combat the rising popularity of computerized lottery ‘Mega 6/45’, which was introduced in July by state-run company Vietnam Computerized Lottery Co. Ltd. (Vietlott).
The ‘Mega 6/45’ jackpot starts at VND12 billion (US$536,000), and is rolled over if no winner is found.
The introduction of the computerized lottery has hit traditional lottery companies hard, as one operator in the Mekong Delta region reported a VND4 billion (US$179,080) drop in revenue over the course of a single issuance at the beginning of November.
While traditional lottery companies are struggling to maintain their share of the lucrative lottery market, Vietlott found its third ‘Mega 6/45’ jackpot winner on Sunday, their second this month.
The lottery’s 51st draw on Sunday evening produced a jackpot combination of 11-23-25-34-36-45 and found a winner, according to an announcement by Vietlott. But the identity of the winner has yet to be determined.
Sunday’s jackpot of over VND71 billion (US$3.17 million) had accumulated after five draws without a winner since November 2, when a ticket holder from Dong Nai Province claimed nearly VND65 billion (US$2.9 million) pre-tax in the lottery’s 46th draw.
The jackpot for the next ‘Mega 6/45’ draw this Wednesday will be reset to VND12 billion, Vietlott confirmed.
Last month, a farmer from the Mekong Delta province of Tra Vinh became ‘Mega 6/45’s’ first jackpot winner, capturing a record VND92 billion ($4.11 million) pre-tax from the 39th draw on October 16.
The Vietnamese law requires that a jackpot winner pay a 10% tax.
In the face of stiff competition from the computerized lottery, the Southern Lottery Council, whose 21 members have announced plans to increase their jackpot, have filed a formal request to the Ministry of Finance asking for the rectification of violations by Vietlott.
According to the request, Vietlott has violated multiple laws and regulations in advertising and issuing its ‘Mega 6/45’ lottery, including the pre-printing of lottery tickets to be sold in a similar manner to traditional lottery tickets, which are printed out in advance.
Vietlott is only licensed to sell tickets directly to buyers through machines after the buyers have chosen a combination of six numbers by themselves.
Vietlott CEO Tong Quoc Truong responded to the complaint by issuing a letter instructing lottery agents to adhere to state regulations.
The computerized lottery ‘Mega 6/45’ was introduced as a result of cooperation between Vietnam’s state-run lottery company Vietlott and an indirect subsidiary of Malaysia-based firm Berjaya Corp Bhd (BCorp), which was granted an 18-year investment license to operate the computerized lottery in the country in January.
As the name suggests, buyers of the lottery select any combination of six-numbers between 1 and 45 for VND10,000 (US$0.45).
The jackpot combination is randomly selected every Wednesday, Friday, and Sunday at 6:00 pm, and rolled over into the next lottery period should no winner emerge.
Apart from the jackpot, bonus prizes of up to VND10 million (US$446) are awarded to those with three, four, or five numbers matching the jackpot combination.
Vicem still on the fence about LafargeHolcim
State-owned Vietnam Cement Industry Corporation (Vicem), holder of 35% LafargeHolcim Vietnam, is still mum about the possibility of buying out Lafarge Holcim from the joint venture.
At the end of 2016, SCCC will finalise the deal with lafargeHolcim to buy its 65 per cent stake in LafargeHolcim Vietnam. 
As agreed with LafargeHolcim earlier, Vicem has the right to purchase these shares before SCCC. However, Vicem’s next move remains unclear.
Talking to VIR, Luong Quang Khai, chairman of the board of members at Vicem, offered no final answer to the question of buying any of the 65%.
“We did think about it,” he said. “We are concerned whether the new owner will manage the business well and benefit shareholders if we do not buy the stake.” 
Established in 1994, Holcim Vietnam currently has a total capital of US$441 million. It currently owns a system of plants with the total capacity of 6 million tonnes (of what?) per year. The company is valued at $890 million and SCCC has offered $580 million for the 65 per cent stake.
Vicem currently has a chartered capital of VND13 trillion ($583 million). As it is in the process of equitization, arranging VND12 trillion ($538 million) to buy the stake in LafargeHolcim Vietnam is not easy. 
Moreover, as Vicem is a state-owned company, it needs to secure approval from related ministries and government agencies. 
At the moment, the Vietnamese cement market is in a surplus. Vicem has a 36 per cent market share. In 2015 it earned pretax profit of VND2.3 trillion ($103 million).
Hanoi to add 5 trade centers to master plan
Five trade centers will be added to the plan for wholesale and retail networks in Hanoi by 2020 and vision to 2030 under Decision No. 6239 from the Hanoi People’s Committee.
The additions are primarily located in suburban districts. Four are Grade 1 trade centers, with the first being in Kim No commune in Dong Anh district on an area of 3 to 5ha.
The second is located in Da Ton commune, Gia Lam district on an area of 3 to 5 ha, the third in Dai Mo ward, Nam Tu Liem district on an area of 6ha, and the fourth in Ngoc Hoi commune, Thanh Tri district on an area of 8 to 10 ha.
One new addition is a Grade 2 trade center in Yen Nghia ward, Ha Dong district on an area of 2.6ha. There will be 64 trade centers and 32 shopping malls in the city, according to Decision No. 5058 from the Hanoi People’s Committee regarding plans for wholesale and retail by 2020 and vision to 2030.
By 2020 Vietnam targets having 1,200-1,500 supermarkets, 180 business centers, and 157 shopping centers, with retail revenue totaling $179 billion. 
According to the latest figures from the Ministry of Industry and Trade, the country’s retail market in 2015 was estimated at $102 billion. There are now over 700 supermarkets and 132 trade centers, of which 22 are 100 per cent foreign owned.
Retail growth is expected to reach 11.9 per cent by 2020 with a retail market size of $179 billion, of which modern retail will account for 45 per cent. Vietnam has continually been among the world’s Top 30 most attractive emerging retail markets since 2008 in the Global Retail Development Index (GRDI) published annually by AT Kearney from the US.
Assessing the prosperity of Vietnam’s retail market, market researchers and experts believe it has great prospects and will record high growth in the years to come. A range of factors prove that Vietnam’s retail market will continue to reap high profits, with its 92 million people being a major driver of continued high consumption.
Among the 12 common retail models, businesses have the highest expectations in the modern retail model, while the traditional model, including markets and street vendors, are regarded as less promising. General supermarkets and shopping centers are considered to have the most promising outlook and are a strength of foreign retailers.
Local market to face integration pressure from ACFTA
Chinese goods which have already flooded Vietnamese market for the last many years via cross-border trading and smuggling will continue overflowing local market with lower prices when ASEAN-China Free Trade Agreement (ACFTA) takes effect in 2018.
According to the Ministry of Industry and Trade, the Government has issued Decree 128 on preferential import tariff for goods from ASEAN and China to implement the ACFTA in the phase of 2016-2018. 
Thousands of commodities comprising vegetables, seafood, frozen food and meat originated from China and ASEAN countries including the Philippines, Thailand, Singapore, Myanmar, Malaysia, Laos, Indonesia, Cambodia and Brunei will enjoy 0 percent tax rate.
In return, Vietnamese farm produce such as coffee, tea and seafood will see tax exemption when being exported to these markets.
The Industry and Trade Ministry said that Vietnam will abolish 90 percent tax lines  by the end of 2018 to implement commitments under the ACFTA. The remaining tax lines will reduce to 5-50 percent by 2020.
Experts forecast the FTA will put a heavy pressure on Vietnamese businesses who will cope with a huge volume of low cost goods flowing into the country. The most effected field will be farm produce.
Chinese fruits have already overflowed Vietnam via cross-border trading, says head of the Lang Son province Customs Department Hoang Khanh Hoa. The FTA will remove the current tariff rate of 15 percent on hundreds of Chinese goods granted with certificate of origin by the Ministry of Industry and Trade.
Deputy Minister of Agriculture and Rural Development Vu Van Tam said that tariff abolishment was an obligatory requirement for international integration. 
Mr. Hoang Trung, head of the Plant Protection Department under the Ministry of Agriculture and Rural Development, reported that Vietnam spent close to US$500 million on importing pesticides a year on average for the last five years, 50 percent of the import volume came from China.
According to the General Statistics Office of Vietnam, China was still the largest import market of Vietnam during the first nine months this year with the total turnover of US$36 billion and trade deficit of $21.3 billion.
The most imported items include cloth with $3.93 billion; garment, textile, footwear and leather materials $1.38 billion; computers, electronic items and components $4.1 billion; machines-equipment-devices $6.5 billion and steel $3.2 billion.
In addition, seafood import turnover hit $45.3 million and vegetables and fruits touched $146.9 million.
400 enterprises to join Vietnam Foodexpo 2016
Vietnam Foodexpo 2016 is scheduled to take place at Saigon Exhibition and Convention Center (SECC) in Ho Chi Minh City on November 16- 19. 
Around 400 domestic and foreign enterprises from 30  provinces and cities in the country and 15 countries and territories such as Italia, Poland, South of Korea, Hungary, Egypt, Netherlands, Cuba, Malaysia, New Zealand, Japan, Palestine, Singapore, Thailand, China and the United Arab Emirates have (UAE) registered to participate in the exhibition.
Nearly 550 booths will be on display comprising fresh vegetable, desiccated, processed and frozen food and beverage food such as seafood, beer, wine, fruit juice, tea, coffee and other products.
The third conference on Food Vietnam and seminar on Vietnam Food-Processing-Industry Trade and Investment Promotion will also take place within the exhibition framework.
This is Vietnam’s large- scale trade promotion event.
VN plans to cut down eight percent of exhausted gas 
The 22nd Conference of Parties (COP22) is taking place in Morocco from November 7- 18 with the participation of 195 countries and territories across over the world.
At the event, Vietnam and the parties have focused on implementation negotiations on the Paris agreement, and called on all parties to raise awareness of climate change.
The 11 days event has planned to focus on technological issues, preparation for the Paris agreement, and strengthening technology transfer and ability for the developing countries.
Vietnam is one of the countries prepared a detailed action plan to successfully adopt the climate change agreement by 2030. As if plan, the country must cut down eight percent of exhausted gas if it receives donation from international community.
Japanese prefecture keen to boost industry with Vietnam
Industrial firms from Japan’s Oita prefecture expressed their wish to cooperate with Vietnamese businesses at a seminar to promote Vietnam-Japan trade in HCM City on November 14.
Chairman of the Oita Chamber of Commerce and Industry Kiyotaka Himeno said Vietnam is a developing country with many potential free trade deals. Especially, it is a member of the dynamic ASEAN region, which is expected to develop strongly in a foreseeable future.
He added that Vietnam boasts an abundant and young workforce but it needs high quality workers. Therefore, Japanese businesses hope to strengthen human resources cooperation.
Le Nguyen Duy Oanh, Deputy Director of the Ho Chi Minh City Centre of Supporting Industries Development (CSID) shared that Japanese firms want to seek suppliers and partners to build factories and transfer technology in the fields of metal production and mechanical engineering.
At the seminar, the two countries’ businesses exchanged information and studied each other’s demands and supply ability. 
Japanese firms will pay field trips to some factories in HCM City and study the premises of Hiep Phuoc industrial park. 
Since the start of the year, the CSID has hosted a number of events to connect Vietnamese business with their partners from Shiga and Tokyo, with the aim of boosting domestic supporting industry.
HCM City bolsters cooperation with Canada’s Toronto
Authorities of Ho Chi Minh City and the Canadian city of Toronto are determined to intensify substantial and effective cooperation.
The statement was made during a meeting between Vice Chairman of the HCM City People’s Committee Tran Vinh Tuyen and Vice Mayor of Toronto Denzil Minnan Wong in HCM City on November 14.
Vice Chairman Tuyen affirmed that HCM City wants to cooperate with Toronto’s authorities and businesses in the fields of its concern such as environmental pollution, flooding and traffic congestion.
He also stressed that the cooperation between the two cities’ authorities will offer opportunities for businesses of both sides. HCM City is willing to create favourable conditions for Toronto firms’ operation and investment in the city, especially those applied advanced technology.
For his part, Vice Mayor Denzil Minnan Wong expressed his impression with HCM City’s strong development, saying that similarities on challenges in urban development will be a chance for cooperation between two cities, especially in addressing environmental pollution, preventing flooding and managing water resources.
Sharing its strength in the financial service, he affirmed Toronto’s authorities and businesses are willing to cooperate and share experience about the building of a financial centre with HCM City.
The two officials also agreed to direct relevant agencies to discuss further for the signing and implementation of agreements on cooperation in various fields like education, start-up support, technology innovation and cultural exchange activities.
Italian region to promote investment in Binh Duong province
The southern province of Binh Duong on November 14 signed a cooperation MoU with the trade association of Italy’s Emilia-Romagna region and the Italy-Vietnam trade association. 
Under the MoU, the sides will work together to promote trade and investment ties between Vietnamese and Italian enterprises. Italian enterprises will receive help to invest in the Vietnamese province and Binh Duong’s enterprises will be assisted to promote its products in the Italian market. 
The MoU will also facilitate Italian enterprises’ trips to Binh Duong to explore business opportunities as well as joint research and experience sharing between Italian localities and Binh Duong. 
Mai Hung Dung, Vice Chairman of the Binh Duong People’s Committee, said the province has attracted 2,800 foreign-invested enterprises with a combined capital of 25.3 billion USD but investment from Italy only makes up a small portion of the amount. 
On behalf of the Italian business delegation, Chairman of the Italy-Vietnam Chamber of Commerce Fulvio Albano expressed his hope that thanks to the MoU, the Emilia-Romagna region will serve as a window for Italian investors and enterprises to understand more about Binh Duong. 
He hopes that the MoU will boost economic exchanges between Italy in general and the Emilia-Romagna region in particular and Binh Duong. 
On the occasion, delegates of the Emilia-Romagna Trade Association, the Italy-Vietnam Trade Association and enterprises from Torino city participated in a conference on smart city in the southern province.
Vietnam attends international trade fair in India
Vietnam is participating in the 36th India International Trade Fair (IITF), which opened in New Delhi on November 14.
The annual event, themed “Digital India”, is held by the India Trade Promotion Organisation (ITPO).
More than 150 companies from 27 countries are selling products in the fields of apparel, fine arts and handicrafts, health, banking, food processing, telecommunication, home decoration, toys and consumer goods at nearly 7,000 pavilions.
Vietnam has three booths, mainly displaying traditional fine arts and handicrafts. Especially, two Vietnamese artisans have been invited by the Indian Ministry of Commerce and Industry and Ministry of Textiles to show off their skills and share experience at the fair.
Bui Trung Thuong, First Secretary and Chief Representative of the Vietnam Trade Office in India, said the fair creates a good chance for Vietnamese businesses to popularise their brand names to international friends.
The event, which runs until November 27, is expected to draw 2 million visitors.
Vietnam, Russia deepen economic partnership
Deputy Prime Minister Trinh Dinh Dung and First Deputy Prime Minister of Russia Igor Shuvalov have discussed measures to boost economic-trade cooperation between Vietnam and Russia during their recent talks in Moscow.
Dung said Vietnam always considers Russia a strategic priority in its foreign policy, adding that the Southeast Asian country vows to spare no efforts to nurture the traditional friendship and develop the comprehensive strategic partnership with Russia.
Regarding cooperation in energy, businesses of the two countries are actively cooperating in expanding oil and gas exploration and exploitation on the continental shelf of Vietnam and in Russia.
The two sides agreed to help enterprises improve their joint ventures’ operational efficiency, and explore investment collaboration in new projects.
They hailed the positive development in bilateral trade, which increased by 23 percent in the first nine months of 2016.
Both government officials propose Vietnam and Russia optimise opportunities from the free trade agreement between Vietnam and the Eurasian Economic Union (EAEU), which came into force in October 2016, as well as facilitate the entry of goods to the respective countries in order to realise the two-way trade target of 10 billion USD by 2020.
They were unanimous to implement effectively high-level agreements and outcomes reached at the 19th session of the Vietnam-Russia Intergovernmental Committee for Economic-Commercial and Scientific-Technological Cooperation.
The pair also put forth measures to carry out priority projects in the fields of industry, automobile production, science-technology, and education-training.
After wrapping up the November 13-14 working visit to Russia, Deputy PM Trinh Dinh Dung is scheduled to tour Japan from November 15-16.
Oita firms seek opportunities in HCM City     
A series of co-operation opportunities have been offered to dozens of enterprises from HCM City and Japan’s Oita City.
Over two days starting yesterday, a delegation of some 20 companies from Oita has been meeting with many Vietnamese companies to introduce their strengths and potential as well as to seek investment opportunities in the country.
This is the first time that Oita’s companies have visited HCM City, opening many co-operation opportunities between the two countries as well the two cities of HCM City and Oita, according to Le Nguyen Duy Oanh, Vice Director of the HCM City Department of Industry and Trade’s Centre of Supporting Industries Development.
Oanh added that companies from Oita City are strong in mechanic, steel, and manufacturing industries. Tourism and human resource training are also strong, so that Vietnamese companies in general, and those from HCM City in particular, would do well to widen co-operation with them.
According to Oanh, during two days working in HCM City, the delegation will visit industrial zones in the city as well as meet Japanese companies who are operating in the city to study the situation on the ground.
Kiyotaka Himeno, Chairman of Oita Prefectural Organisation for Industry Creation said they see huge potential in HCM City, and Viet Nam as a whole, that matches Oita’s businesses.
After the visit, his organization will commit to a plan of co-operation with Viet Nam.
Oita is a coastal prefecture on Japan’s Kyushu Island. It has a population of 1.16 million on a total area of over 6,300sq.km.
Oita prefecture has a well balanced combination of companies with state-of-the-art technology in steel, chemicals, shipbuilding, automobile, semiconductor, and precision equipment. Big companies operating in Oita include Nippo steel and Sumitomo Metal Corporation; Mitsui Engineering and Shipbuilding Company Ldt, Toshiba, Oita Canon Inc, JX Nippon Oil and Energy Corporation, and Daihatsu Motor Kyushu Company Ltd. 
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR

Không có nhận xét nào:

Đăng nhận xét