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BUSINESS
IN BRIEF 16/5
Exporters
look to US retailers
The fastest and
shortest route to the
"By doing
this, they can get updated market information and keep up with consumer
trends and tastes," said Nguyen Hong Duong, deputy director of the
Ministry of Industry and Trade's American Market Department.
"They will
also be able to follow the
Exporters must
improve the quality of their goods and trademarks to increase their
competitiveness in the demanding
Duong also pointed
out that the Government should develop new policies to help exporters access
American retail channels.
Speaking at the
conference, Nguyen Thang Vuong, commercial attache at the Embassy of Viet
Nam's trade office in US, said exporters should identify the
Moreover, they
should be aware of the
Still, exporters
should give priority to choosing proper distribution channels such as retail
supermarkets like the Kroger Group, the
Tim Kelbel, vice
president of corporate brands and global sourcing at Kroger, said his company
was seeking "a wide range of products, especially in sectors that are strong
in
"Our interests
are coffee, cashew nuts, fruit, vegetables, seafood, coconut products,
spices, rice and wood products," he said.
In recent years,
Kroger had imported only US$200-300 million worth of goods from
To increase the
export growth, Kelbel urged Vietnamese exporters to meet food safety
standards such as Global GAP, Food Safety System Certification 22000,
International Featured Standards, HACCP and BRC Global Standards.
Kroger has 786
convenience stores, 2,424 supermarkets and multi-department stores in 31
states in the
Bui Thi Thanh An,
head of the Viet Nam Trade Promotion Agency (Vietrade) in
In the first
quarter of this year, export turnover to the
The seminar was
organised by Vietrade in collaboration with Kroger and the Embassy of Viet
Nam's trade office in the
Can Tho
solves difficulties for real estate sector
The People's
Committee of Can Tho held a meeting with the city's real estate enterprises
last Friday in a bid to remove obstacles facing their business operations.
Firms presenting at
the meeting complained about the city's regulation which call for them to
deposit 3 per cent of the investment for each real estate project, saying that
the rate was too high and was hindering businesses which are already
struggling with capital shortages.
The time and cost
needed for businesses to fulfil administrative procedures was also
problematic, the firms said. They called for more support from local
authorities to help them secure investment, clear land and develop affordable
housing projects.-
The municipal
administration plans to step up efforts to help local enterprises surmount
difficulties and stabilise production and other business activities, a
Vietnam Economic Times report said.
It cited a report
by the HCM City Party Committee as saying that City's authorities would
continue co-operating with the local State Bank of
It would also
ensure flexible management and operation of local gold and foreign exchange
markets, the report said.
The City will
continue acting as a bridge to connect commercial banks with local
enterprises, and direct authorised agencies to seriously implement policies
related to tax extensions, reductions and refunds.
"The
Vietnamese give priority to Vietnamese goods" campaign will be promoted further
and enterprises encouraged to invest in advanced production technology and
equipment, improve product quality and sharpen their competitiveness.
The City will pay
more attention to expanding the distribution network for Vietnamese goods
with diversified sales approaches, and to balancing commodity supply and
demand.
It will also
initiate measures and mechanisms to support enterprises in reducing their
inventories through greater consumption, encouraging them to sell products at
industrial parks and rural and remote areas with attractive promotion
programmes.
Reviewing the
City's first-quarter performance, the report noted that the city had set up
five working teams to implement Resolution No 02/NQ-CP issued by the
Government in January on removing difficulties in production and trade,
dealing with non-performing loans and supporting the market.
Several support
programmes for local enterprises had already been carried out and achieved
positive results, the report said.
In its role as a
go-between, the City has created opportunities for many enterprises to access
cheap bank loans. As of April 18, local banks had signed loans worth VND102.5
trillion (US$4.88 billion) at interest rates of between 9 and 11 per cent per
year with local enterprises and household businesses involved in the five
prioritised sectors.
Several trade
promotion activities designed to help enterprises to sell their products,
enhance brand recognition and find new partners had been implemented, the
report said.
It said City
officials had organised meetings with enterprises to understand their
practical situation and offer timely help.
As a result,
production and trade have showed encouraging signs of recovery in the first
four months of the year.
Safe
vegetables lack stable outlets
As people becoming
increasingly concerned about food safety, authorities, professional agencies,
and farmers are paying more attention to producing safe vegetables.
But, delegates told
an agricultural extension forum on producing vegetables following Vietnamese
Good Agricultural Practices (VietGap) in
Le Thanh Tung of
the Cultivation Department said the country had a total of around 823,700ha
under vegetables, with safe techniques practised on 16,800ha.
"Only 491ha
have VietGap and other GAP certificates, small compared to the total
vegetable production area," he said.
But with the
increasing demand for safe foods, many co-operatives and farmers are focusing
on safe production methods like VietGAP in growing vegetables, according to
Tung.
The small scale of
production and lack of co-operation among farmers, co-operatives, and
businesses, however, cause difficulties in applying GAP.
Besides, the
outlets for GAP products are not stable and there is not much difference
between prices of normal and GAP-certified vegetables, discouraging farmers.
Dr Vo Mai, deputy
chairwoman of the Viet Nam Gardening Association, said: "Consumers find
it hard to identify GAP-certified vegetables due to a lack of logo."
Prof Dr Nguyen Tho
blamed authorities for their inefficiency, saying while growers of safe
vegetable have difficulty in finding outlets for their produce, many
consumers want safe vegetables but do not know where to find them.
Dr Duong Hoa Xo,
director of the HCM City Biotechnology Centre, said GAP ensured the health of
both producers and consumers, reduced environmental pollution, and resulted
in production of safe and healthy foods with easily traceable origins.
It had been applied
in
In
Though supermarkets
and distributors had tied up with co-operatives growing safe vegetables, this
had somehow not been effective, he said.
Delegates suggested
many measures to increase output of safe vegetables.
Tung of the Cultivation
Department called on local authorities to zone safe vegetable production
areas, upgrade infrastructure, and subsidise farmers' expenses for obtaining
GAP certificates and marketing their produce.
Mai said: "The
Government should quickly come up with a logo for VietGap so that consumers
can distinguish it from normal [vegetables]."
Agricultural
extension centres should organise training courses to raise awareness among
farmers about GAP and instruct them in GAP production techniques, delegates
said.
They called for
establishing close links between enterprises and farmers, with the former
ensuring there are outlets for all GAP-standard produce.
More than 500
delegates, including scientists, provincial agricultural officials, and
farmers from 21 provinces and cities in the south attended the forum.
Rice
exports need to be streamlined
Deputy Minister of
Finance Hoang Anh Tuan has asked relevant agencies to speed up a draft decree
on rice exports so that suggestions from relevant ministries can be submitted
to the Government for approval.
One of the key
tenets of this draft decree is to re-organise rice exporting activities, so
that market competitiveness can be assured.
To deal with
difficulties in rice exports, Tuan urged the Import-Export Department of the
Ministry of Industry and Trade and Viet Nam Food Association (VFA) to focus
on assessing and analysing market issues, according to the news website
Chinhphu.vn.
According to VFA,
in April alone, the country's rice exports are estimated to reach 807,000
tonnes, worth approximately US$340 million. In the first four months of this
year, rice exports were estimated to have reached 2.38 million tonnes (an
increase of 7.6 per cent) with an export turnover of more than $1 billion. Many
rice export contracts were signed in the first four months of 2013, but the
export value had remained low.
During the first
four months, rice exporters were contracted to ship 4,231 million tonnes of
rice, an increase of 9.92 per cent over the same period last year, but they
failed to deliver on time.
Director of the
Import-Export Department Phan Van Chinh said the rice export price fell for
most countries due to excess global supply, as
Chinh pointed out that
Vietnamese rice export prices had never been higher than Thai rice.
Furthermore, Vietnamese rice was less competitive in Africa compared to
He added that
weaker Vietnamese rice exporters often offered low rice prices for export to
quickly return their capital and being hit by high lending rates. Meanwhile,
the winter-spring crop this year is expected to harvest between 3.7 million
to 3.8 million tonnes of rice.
To handle
difficulties for farm produce and seafood products in Cuu Long (
Google
Display Network launched in Vietnam
The Google Display
Network was launched in
The Google Display
Network offers a collection of websites, from small niche blogs to major
sites, for advertisers to place their ads on.
It will be
supported with an online and offline marketing campaign and a series of
introductory.
According to James
McClure, Google’s Emerging Market Development Manager for Southeast and
He expressed his
hope that Vietnamese brands will make their adverts that attract potential
customers at first sight.
According to
Google, seven of the 10 most visited websites in
Over 5
trillion VND mobilised from Gov’s bonds
The Hanoi Stock
Exchange (HNX) sold 5.35 trillion VND (254.7 million USD) worth of Government
bonds issued by the State Treasury at an auction on May 13.
The sum included 2
trillion VND in two-year bonds with an annual interest rate of 7.13 percent,
2 trillion VND in three-year bonds with an annual interest rate of 7.5
percent and 1.35 trillion VND in five-year bonds with an annual interest rate
of 8.45 percent.
A total of 7
trillion VND worth of Government bonds were put out for tender on the day.
The State Treasury
has so far this year mobilised more than 73 trillion VND (3.47 billion USD)
worth of Government bonds via tenders.
State asset
management firm handed tax bread boost
The National
Assembly’s Finance and Budget Committee has ratified a Government proposal to
make the planned Vietnam Asset Management Company (VAMC) exempt from value
added tax (VAT) and corporate income tax (CIT).
The move was made
after receiving reports on amendments and supplements to the laws on VAT and
CIT, which will be presented to the Assembly for approval at its next meeting
starting on May 20.
Accordingly, debt
or loan security sold by the VAMC would not be subject to VAT while the VAMC
would not have to pay corporate taxes.
However, the committee
noted that the Government should clarify functions, organisation and expected
incomes of the VAMC as a basis of considering tax exemption for the firm.
The planned VAMC, a
100-percent State-owned organisation established by the Government to handle
bad debts of credit institutions in
Last month,
Minister and chairman of the Government Office Vu Duc Dam said the proposed
VAMC was only one of the measures to deal with bad debts.
The State Bank of
Vietnam and commercial banks had made efforts to settle their bad debts, the
minister said, however, each bank had to form their own hedge funds under the
State Bank’s instructions.-
Hai Duong
IZs lured 3 bln USD in investment
The northern Hai
Duong province’s industrial parks have attracted 163 investment projects from
30 countries and territories worldwide, with total registered capital of 3
billion USD since 2003, according to the provincial Industrial Park (IP)
Management Board.
The board, which
marked its 10th year in operation at a ceremony on May 13, said most of the
projects were invested by foreign investors, focusing on electric, electronic
and garment and textile industries.
Foreign-invested
projects mostly apply advanced and environmentally-friendly technology to
their production. Currently, procedures are underway for two pending projects
in Dai An IP, including a 200 million
Hai Duong IP
Management Board said it will continue to build and develop infrastructure
facilities in the IPs, particularly waste water treatment factories, and
improve investment environment to lure more projects with large scales, high
technology values.
At the same time,
the board will monitor the operations of enterprises in the IP to ensure they
comply with the law and take measures to care for material and spiritual life
of workers.
Speaking on the
occasion, Deputy Minister of Planning and Investment Nguyen Van Hieu affirmed
that Hai Duong province and the provincial IPs Management Board have been
able to make use of local advantages in terms of geological location and
human resources to attract investment.
The ministry will
work closely with the province to create more favourable conditions for
businesses and projects in the locality to develop, contribute to the
national industrialisation and modernisation process, he said.-
Russia ups
its stake in Vietnam
The economic ties
between
Those investments
moved Russian direct investment capital to
In the first four
months of 2013,
Meanwhile, the
total accumulated investment capital of Vietnamese businesses in
Those investment
figures are expected to go up further since it was reported that during the
four-day visit to
In parallel to the
deal with Zarubezhneft, PetroVietnam has also reached cooperative agreements
with Russian partners Gazprom and Rosneft for tapping oil and gas potential
both in
In
In mid-April this
year, the Binh Dinh Provincial Economic Zone Management Authority gave the
nod for
Also in April,
Micran, a Russian leading group on research and manufacture of liaison and
communication, microwave, information privacy, measuring, positioning and
control equipment had made a foray to
Another Russian
business mission consisted of seven companies like Sermesstroy, Oliva and
Faradey also came to
“Besides
cooperative deals on technology transfer and training, Russian companies want
to tie out with Vietnamese counterparts in forming business joint-ventures,”
said Strozaeva Lubov Viktorovna, the head of the Russian business group to
Triple
Eye’s good health Hai Duong
Triple Eye Infrastructure
Corporation is getting closer to developing an international standard
hospital in northern Hai Duong province.
Mai Duc Chon, head
of Hai Duong Industrial Parks Management Authority, told VIR the Canada-based
firm was close to getting an investment licence for the project.
“The investor is
eager to cooperate with us to complete documents. Currently all documents are
being handled,” said Chon.
Triple Eye
Infrastructure Corporation in association with
Triple Eye’s first
investment project in Vietnam and the first international hospital in Hai
Duong as well, was expected to come online in 2015 to serve 20,000 labourers
in Dai An Industrial Park as well as residents in Hai Duong province, said
Chon.
A $400 million healthcare
complex developed by Hoa Lam-Shangri-La is expected to be operational this
year, in
However,
Vingroup last year
put a 600-bed hospital in
Mega
refinery project gains momentum
Phu Yen Provincial
People’s Committee is approaching the final step to grant an amended
investment certificate for a $3.1 billion oil refinery and petrochemical
project.
Tran Quang Nhat,
vice chairman of the committee, said the authorities “are determined” to hand
over 450 hectares to UK-headquartered Technostar Management this year for the
construction of the oil refinery and petrochemical project. The site is
located in Hoa Tam industrial park, South Phu Yen Economic Zone.
Technostar Management,
through its wholly-owned subsidiary Vung Ro Petroleum, in 2007 obtained an
investment certificate for building a $1.7 billion oil refinery in Vung Ro
area, Phu Yen province, which will have annual capacity of four million
tonnes. But due to the change of business strategy, the firm proposed the
government expand annual capacity to eight million tonnes, with total
investment cost of more than $3 billion.
Because of the
capacity expansion, Technostar asked for relocating its project to Hoa Tam
industrial park because the current site in Vung Ro area was too small for
the expanded refinery.
“This is a very
important project. We cannot miss this opportunity to boost the economic
development of the province,” said Nhat. He added that the provincial committee
would reduce the scale of Hoa Tam industrial park to provide land to Vung Ro
Petroleum.
Three years ago the
province granted an investment certificate to Hiep Hoa Phat Company for
developing Hoa Tam industrial park, which covers around 2,300ha. However, the
developer has not started construction and is still in steps of making master
plan for the industrial park. The provincial committee has also not handed
over land to Hiep Hoa Phat because of the firm’s slow progress.
“If we wait for
Hiep Hoa Phat to complete the master plan and build the infrastructure
system, we cannot ensure timeline for the construction of the oil refinery
and petrochemical project,” said Nhat, explaining why the provincial
committee decided to scale down site of Hiep Hoa Phat’s project.
The Government
Office, in an announcement released in February, also stated that Prime
Minister Nguyen Tan Dung also approved the expansion proposal of Vung Ro
Petroleum, and he also allowed the investor to relocated the project.
Meanwhile, the
Ministry of Planning and Investment, in an earlier document sent to the prime
minister, stated that Phu Yen People’s Committee should hand over land
directly to Vung Ro Petroleum for ensuring construction timeline of the
project, because Hiep Hoa Phat had not yet developed infrastructure in this
site.
Nhat said the
provincial committee would compensate Hiep Hoa Phat for the cost of
researching and making master plan for its project.
“We will try our
best to help Vung Ro Petroleum start construction of the project within the
third quarter this year,” said Nhat.
In August 2012,
Vung Ro Petroleum reached a technology transfer agreement with Honeywell’s
UOP, a leading international supplier and licensor for the petroleum refining
and petrochemical production. This agreement aims to ensure that Vung Ro
Petroleum owns the latest petroleum refining technology.
Nguyen Chi Hien,
director of Phu Yen Department of Planning and Investment revealed that Vung
Ro Petroleum had spent $42 million preparing the project and would sign a
construction contract worth $287 million following the granting of the
amended investment certificate. The company has deposited $5 million to local
authorities to show its commitment in pursuing the project.
The refinery will
not only contribute to the improvement of investment climate, but is expected
to also notably contribute to State budget as Hien estimates this oil project
will generate around $111 million of taxes each year while creating 1,000
jobs for residents.
Can Tho
seeks bids for port complex
Can Tho People’s
Committee is calling on investors to help develop an international port
complex and logistics project on 110 hectares at the Hung Phu I
Industrial Park.
Vo Thanh Hung, head
of Can Tho Export Processing and Industrial Parks Management Authority, said
that according to the newly adjusted decision approved by the government last
month, the province would enlarge the existing Cai Cui port, adding this new
port and logistics development.
Hung said that top
priority would be given to Saigon- Can Tho Industrial Park Joint Stock
Company under Saigon Invest Group (SIG). It is one of the leading domestic
private groups that obtained an investment certificate to develop 262
hectares Hung Phu I IP 10 years ago. So far, the investor has not yet finished
site clearance.
“In case,
Saigon-Can Tho Industrial Park Joint Stock Company refuses to pursue the
international port complex and logistic area project, this company will only
develop 152 hectares out of the 262ha Hung Phu I IP and the province will
call other investor to deploy the port project,” added Hung.
As of last week,
Saigon-Can Tho Industrial Park Joint Stock Company had not responded to the
new development plan.
Hung said the 110ha
port project would be similar to Cai Mep Thi Vai international port complex’s
model. When entirely completed, the development could meet the needs of
marine transportation and international trade in the future, he said. It
would also make a positive contribution to speeding up the socio-economic
development of the Mekong River Delta area and the province.
According to the
latest figure from Can Tho Export Processing and Industrial Parks Management
Authority, at present, only two out of eight industrial parks namely Tra Noc
I and Tra Noc II with total area of 292ha have leased all of their space. In
the first four months of this years, the two industrial parks granted
investment certificate for four projects including two foreign direct
investment projects.
Graham Bell and
Associates Limited is eager to invest in Kien Luong thermal power and
port complex, one of the largest energy projects in
The
Tan Tao is facing
the possible withdrawal of its investment certificate because the
construction has been delayed for two years amid the group’s financial
trouble. The complex is considered vital as the demand for electricity in the
southern province and
Kien Luong power
and port complex was licenced in January 2008. Located in southern Kien Luong
province, approximately 300 kilometres south of
Huynh Van Gianh,
director of Kien Giang Provincial Department of Industry and Trade, told VIR
that Graham Bell and Associates Limited could ask for being a new developer
of the complex instead of setting up a joint venture with Tan Tao Group.
“Currently, we are
waiting for the governmental guidelines and those from the ministries of
Industry and Trade and Planning and Investment,” said Giang, adding that Tan
Tao Group had poured about VND800 billion ($40 million) into site clearance
of the project.
“The end of this
June is the deadline for Tan Tao Group to give us the answer if it could
continue carrying out the project. We already sent the documents to the
investor requesting it to explain the delay. However, there has been no
feedback since last year,” he said
Under
Minister of
Industry and Trade Vu Huy Hoang also gave a warning to the domestic investor
in his working visit to Kien Giang province late last month.
Previously, Tan Tao
Group general director Thai Van Men said the firm had disbursed $250 million
into Kien Luong complex and explained that the firm was stalling the
construction because it had not yet received the governmental guarantee and
undertaking agreement (GGU) for this giant project. Tan Tao Group’s equity in
this project is equal to 20 per cent of the total investment capital, or $1.4
billion.
AIA makes
strong gains in Q1
Life insurer AIA
Vietnam in the first quarter of the year saw the value of new business up 65%
versus the same period of 2012 while its annualized new premiums increased
40%.
In a statement
released last Friday, Stephen Clark, CEO of AIA Vietnam, ascribed these
results to an improvement of AIA Vietnam sales agents.
Concerning the
insurer’s development strategies in 2013 and following years,
“AIA’s goals are
long-term and to this end, we continue to focus on building up strong
momentum and help AIA become a benchmark for insurance professionalism in
this country, rather than just short-term, incremental improvements,” he
noted.
LED lamps
not yet popular in Vietnam
Light-emitting
diode (LED) lamps have an edge over conventional sources of lighting, but
this technology has not become popular in
The workshop was
held last Friday by the HCMC Sub-Directorate for Standards, Metrology and
Quality in collaboration with Rang Dong Light Source and Vacuum Flask
Company.
According to the
Each LED bulb can
be used for 100,000 hours, 8-10 times longer than the lifespan of fluorescent
lamps. In addition, LED lamps are environmentally friendly.
Professor Phan Hong
Khoi, director of the high-efficiency public lighting project, said the
current cost of a LED lamp is far higher than other sources of lighting.
What is more,
With large-scale
production and cost reduction, LED lamps can replace the traditional lighting
products, he said.
Dr. Le Dinh Phuong
at the HCMC University of Technology suggested the Government offer
preferential tariffs for import of components to mass produce LED lamps. Tax
incentives will encourage large-scale production and thus bring down
production costs.
Trinh Minh Tam,
deputy director of the HCMC Department of Science and Technology, said that
due to climate change, hydropower reservoirs would face a severe water
shortage, leading to a power undersupply next year. Therefore, it is urgent
to find ways to save power.
Exporters
urged to take advantage of
Local companies
should make full use of preferential tariffs offered by
Vietnamese
agro-products now enjoy 30-50% tariff cuts in
Such commitments
are favorable for the major items
In the past two
years, local exporters have effectively benefited from the tax incentives
provided by
By the end of the
first quarter,
Cell phones and
components brought in the largest export turnover, US$197.88 million, up
55.59% year-on-year, accounting for 47% of the total turnover of the products
exported to Russia.
Goods for export to
Russia should be carefully packed, with labels showing the names of exporters
and contracts.
In addition, local
firms should pay attention to the nature of their products, delivery means
and weather conditions, said the trade ministry.
Economy
remains weak: IMF
The economy will
continue to be as bleak this year as in 2012, said Sanjay Kalra, resident
representative of the International Monetary Fund (IMF) in Vietnam.
Speaking at a
seminar on financial and budgetary issues held by the Finance and Budget
Committee of the National Assembly (NA) in Hanoi last Saturday, Kalra
remarked the economy was barely growing and domestic demand was shrinking.
The economic
outlook for Vietnam in 2013 is similar to that in 2012, the year with the
lowest economic growth in ten years, he said.
Such a comment was
given after IMF had revised its growth forecast for Vietnam to 5.2% from
5.8%, the largest reduction, after Singapore, among ASEAN countries.
The economy is
making adjustments and can hardly obtain high growth. Not all cities can
build airports and seaports now, and each project must be considered more
carefully, said the IMF representative.
He stated economic
recovery greatly depends on economic restructuring, but this process is
moving at a very slow pace.
NA Deputy Tran Du
Lich asked Kalra whether public investment, banking or State-owned
enterprises (SOEs) should be the priority for restructuring. He replied the
banking system should be reformed in order to lower interest rates.
“I think it is a
must to reduce bad debt in the banking system. Banks must accurately report
on their bad debt,” he said.
He complained there
was not much information about SOEs. Up-to-date information about SOEs is a
prerequisite for reliable assessment, he said.
Learning by
experience of the last two rounds of inflation, the Government should focus
on stabilizing the macro-economy rather than rushing to do something, for
example, stimulating economic growth, which is not a sustainable way, he
said.
Dr. Pham Hong Son,
rector of the University of Economics, said reforms in Vietnam would be
costly, but such costs had not been carefully calculated.
Dinh Van Nha, vice
chairman of the NA Finance and Budget Committee, said the State had not
allocated any budget for reform.
He emphasized the
need to restore confidence among the people and the business community, which
had been severely undermined.
According to IMF,
inflation is in decline. Inflation in April rose 6.5% over the same period
last year.
Meanwhile, the
Vietnamese dong/ U.S. dollar exchange rate tends to be stable this year. The
budget deficit is estimated at 4% of GDP, versus 4.8% approved by the NA.
Gov’t
permits oil refinery in Binh Dinh Province
Deputy Prime
Minister Hoang Trung Hai has permitted the implementation of the US$27
billion oil refinery project in Nhon Hoi Economic Zone in the central
province of Binh Dinh, said Ho Quoc Dung, deputy chairman of the provincial
People’s Committee on May 12.
The Government
tasked the provincial People’s Committee to guide the project
investor--Petroleum Corporation of Thailand, to submit an environment
feasibility report to submit to the Ministry of Industry and Trade and the
Ministry of Natural Resources and Environment for approval.
The investor will
spend the next two years to bid for and choose contractors. They will then
continue to set up a viability report and other investment procedures.
According to Mr.
Dung, the oil refinery project in Nhon Hoi Economic Zone will be the largest
in Vietnam. Binh Dinh Province has worked with the Thai investor on the
project for three years prior to submitting the first feasibility report to
the Government.
The Nhon Hoi oil
refinery is expected to be built over an area of 2,000 hectares at a total
capital cost of $27 billion. The plant will have capacity to process 660,000
barrels of crude oil a day or 30 million tons a year.
Crude oil source
for the plant will be imported from the Middle East, Africa, southern and central
America.
Hanoi
stimulates tourism demand in summer
The number of
customers booking tours to popular destinations in the central and southern
regions increased by 20-25 percent against the same period last year.
Hanoians’ demand
for domestic and foreign tours usually climbs as summer approaches, but this
year, the demand is expected to rise due to numerous tourism promotion
programmes launched by travel agencies.
The Vietravel
Company, which has close links with a network of prestigious domestic and international
airlines, has provided May tours at discount prices between VND2 and 5
million (US$95 – 238) from Hanoi to central and southern destinations like
Danang , Can Tho and Phu Quoc Island.
In coordination
with Vietnam Airlines, it has launched tour promotion programmes to regional
countries during this year’s summer.
The Hanoi Red Tours
Joint Stock Company is also offering a 20 – 50 percent discount on package
tours.
The low-cost
airline VietJetAir, in response to the tourism promotion programmes, is
offering VND200,000 (US$10) tickets to passengers travelling from Hanoi and
HCM City to Bangkok, Thailand this June.
Recently, the
Vietnam National Administration of Tourism and the Hanoi Department of
Culture, Sports, and Tourism have worked together to promote the city’s
development of tourism-related activities.
Tourism cooperation
programmes are vital to create quality tourism products at reasonable prices,
and promote tourism in Vietnam and Hanoi in particular, said Mai Tien Dung,
Deputy Director of the Hanoi Department of Culture, Sports, and Tourism.
ASEAN
seminar focuses on geology, mineral resources
More than 300
delegates are gathering for the first ASEAN international conference on
geology and natural resources (GeoASEAN 1) in Vietnam’s Ba Ria-Vung Tau
province on May 13-14.
The participants
come from ASEAN members and a number of countries with strong mining
industries such as China, Japan, the Republic of Korea, Australia, India,
Switzerland and South Africa.
They will share
experiences and discuss ways to explore mineral resources to boost
sustainable socio-economic development and reduce negative environmental
impacts.
Representatives
from the Vietnamese Ministry of Natural Resources and Environment (MONRE) and
Ministry of Industry and Trade (MoIT) introduced the nation’s polices and
laws, as well as its development strategy for the mining industry.
Foreign delegates
presented reports outlining opportunities and challenges for Vietnam’s
titanium industry.
They also introduced
modern technology for titanium exploration and processing that can be applied
in Southeast Asian countries.
GeoASEAN 1 was held
within the framework of the ASEAN Mineral Cooperation Action Plan (AMCAP) for
the 2011- 2015 period, which was approved at the third ASEAN Ministerial
Meeting on Minerals (AMMin3) that took place in Hanoi in December 2011.
The event aims to
promote international cooperation and development, and create investment
opportunities in the ASEAN community mining sector.
Mekong
Delta investment conference planned for August
The 2013 Conference
for Investment Promotion and Social Welfare for the Mekong Delta region is
scheduled to take place in Vinh Long province on August 30.
The information was
announced during a working session between the Southwestern Region Steering
Committee and the Can Tho provincial People’s Committee on May 13.
The conference,
expected to draw more than 500 participants, will be a base for the Mekong
Delta Economic Cooperation Forum, which will also be held in the province in
November.
This year’s
conference aims to introduce and popularise the region’s potential and
advantages, create favourable conditions for investors to access key projects
and learn about investment policies and preferential mechanisms.
At the conference,
the committee will announce and present a social welfare fund to the Mekong
Delta region and call upon domestic and foreign businesses and organisations
to join hands in realising social welfare activities.
From now until the
conference, the committee will mobilise more than VND500 billion (US$24
million) for social welfare issues and over VND147 trillion (US$7 billion)
for investment promotion in the region.
Expert
urges focusing on agriculture for sustainable development
The government
should pay proper attention to agriculture and rural development instead of
only concentrating on industrial and urban development, one expert has said.
Dr. Dang Kim Son,
Director of the Institute of Policy and Strategy for Agriculture and Rural
Development (IPSARD), made the proposal at a recent seminar “Iphone or Irice
– Options for Vietnam’s sustainable development” in Hanoi.
According to him,
the country’s investment in agriculture has been inefficient due to backward
ideas and improper policies. Over the past years, more attention has been
paid to industrialisation and urbanisation at the expense of agriculture and
rural areas.
Such direction, he
said, has been blamed for low agricultural labour productivity, reaching only
approx USD800 per person per year in 2008, compared to nearly USD1,600 in
China, USD1,800 in Indonesia, USD2,000 in the Philippines and nearly USD2,200
in Thailand.
GDP growth rate in
the country’s agriculture had fallen to around 4% per year in 2012, down from
nearly 7% per year in early 1990s.
He said
industrialisation, urbanisation and globalisation have put people in
Vietnam’s rural areas at risk, while threatening natural resources,
increasing waste, worsening natural disasters as a result of climate change,
soil erosion, as well as resulting in unequal competition.
Millions of workers
from rural areas have migrated to urban areas to find job. Over 70% of such
people work in unofficial sectors as domestic help, builders and motorbike
drivers.
Such development
trend has driven Vietnam to a medium-income trap. This would result in urban
overcrowding, underdeveloped rural areas, inefficient industry and services,
uncompetitive agriculture, social and political contradiction, natural
resources losses and environmental pollution.
Despite the risks
and challenges, Vietnam’s agriculture has recorded magical gains as it always
reports trade surpluses despite national consecutive trade deficits,
especially in industrial production.
Dr. Son said that
the new trend for the country’s industrialisation is to invest in agriculture
and rural development as well as empower farmers from the beginning of the
process.
“The process of
empowering farmers in Vietnam is rather slow. It would be a good idea if we
do it right now but would be too late if it takes from five to ten years
more,” he assessed.
He suggested that
the country learn from experience of some countries like Taiwan and South
Korea that have focused on agricultural and rural investment, combining industry
with agriculture, urban with rural development.
“In the future,
Vietnam may not become the world’s factory like China but may become
something like a kitchen, a flower garden, a vegetable garden and a herbal
medicine garden of the world if it pays enough attention to agricultural and
rural development,” Son emphasised.
The country should
adopt measures to encourage foreign investment in agriculture as recently
around 15 trans-national groups were seeking opportunities to invest in the
industry.
The government
should pay more attention to science and technology as well as industrial
development to serve agriculture. Market research, product quality
management, food safety and control over input materials should be taken into
account to support farmers, he said.
He suggested that
the government directly grant funding to farmers to foster their business
instead of indirect support via banks and exporters as currently.
At a seminar on
Vietnam’s economic 2013 and challenges in late April, several experts agreed
that amid low economic growth rate, the country should pay more attention to
agricultural investment as such industry may help save the national economy.
An official from
the World Bank said at a seminar on potential for public-private partnership
(PPP) in Vietnam’s agriculture that it’s right time for Vietnam to change the
way to attract more domestic and foreign investment in agriculture.
“In order to
increase labour productivity for Vietnam’s agricultural sector, PPP
programmes are of great significance in all national agricultural development
strategies,” he added.
Economist Pham Chi
Lan said government-funded agriculture projects have proven to be inefficient
as the government has acted as policymaker, law maker and conductor.
In order to attract
investment in agriculture, the government should work out new and more
suitable policies so as to increase agricultural export values, she added.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Tư, 15 tháng 5, 2013
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