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BUSINESS IN BRIEF 8/8
Premier
security and fire safety exhibition opens
The
latest equipment and technologies used in the security and fire safety
industries will be on display at Secutech Viet Nam 2013, which opens in
The
sixth edition of the country's largest security, safety and fire prevention
and fighting exhibition has attracted 110 exhibitors from 13 countries and
territories, including the US, UK, India, Germany, the Netherlands, South
Korea, Italy, Japan and Singapore.
There
will be more than 200 booths showcasing the latest surveillance systems,
alarms, access-control systems, intercoms, biometrics, fire safety and
prevention products and rescue equipment, and industrial safety products.
Also
on display will be integrated solutions for buildings, factories, retail
outlets, banks, hotels, transportation and other businesses.
Secutech
Viet Nam 2013, held at the Saigon Exhibition and Conventional Centre in
District 7 until August 10, will also feature seminars on digital surveillance
and fire and safety.
The
development of residential urban areas, malls, industrial parks, hotels,
banks in
Co-organised
by the Viet Nam Advertisement and Fair Exhibition Joint Stock Company
Vietfair and the Taiwan-based Messe Frankfurt New Era Business Media Ltd, the
exhibition expects to welcome around 5,000 visitors.
JoYou
Group makes foray into Vietnamese capital
JoYou
products will be distributed exclusively by Thanh Trung Production Services
Trading Company Limited in
Founded
in 1979, JoYou Group has been named among the top 500 most powerful
businesses in Asia and sells its products in 20 countries around the world,
including Germany, the UK, the US, Canada and Southeast Asia.-
Vietnam
calls for more aid from World Bank
The Ministry
of Finance (MoF) has asked the World Bank (WB) to assist to
At the
August 6 meeting, MoF leaders proposed a host of effective and practical
measures to enhance cooperation with the WB in the future.
They
asked the bank to maintain official development assistance (ODA) loans for
They
wished to get more financial support from the WB to complete the framework
for the implementation of business restructuring projects.
Participants
in the meeting focused on issues related to the shift of International
Development Association (IDA) loans and WB funding for the Poorest to the
International Bank for Reconstruction and Development (IBRD) loans, which
aims to reduce poverty and promote sustainable growth in middle-income
countries and creditworthy poorer countries.
Seafood
exports increase slightly in first 7 months
The
Exports
to
Meanwhile,
there was a decline in seafood exports to the EU (down 7.8 percent),
Experts
forecast that seafood exports will pick up in the coming months when the
Christmas and New Year season is drawing near.
According
to the Directorate of Fisheries,
VDB
to raise charter capital under new development strategy
The
Viet Nam Development Bank (VDB) will raise its charter capital to VND20
trillion (US$952 million) by 2015 and VND30 trillion ($1.42 billion) by 2020
under a new development strategy approved by the Prime Minister.
The
additional charter capital is intended to raise the equity of State's total
investments and export credits to 10 per cent.
The
VDB has three capital sources to raise charter capital, including accumulated
capital; business arrangement and development support funds; and the State's
annual development expenditure.
The
finance ministry will determine the charter capital increase and will
identify relevant sources of funds, using the VDB's annual financial
statements.
PVEP
welcomes first oil stream from project in Malaysia
PetroVietnam
Exploration and Production Corporation (PVEP) has welcomed the first flow of
crude oil from West Desaru 1 well it is exploring under a joint project in
According
to the Vietnam National Oil and Gas Group (PetroVietnam), the average output
from West Desaru oil field, which belongs to Block PM304 offshore the
When
fully operational, the field, one of PVEP’s three overseas oil stream projects,
is expected to produce 20,000 barrels/day. It holds a 15 percent stake in
this project.
The
corporation has been investing in 17 overseas projects, and is expected to
see the same happening in
Business
incubation at universities promoted
The
conference is a good opportunity for participants to exchange information and
create future links between science and technology business incubation
centres, Tung added.
Participating
lecturers from
PetroVietnam
revenue falls 4 percent
Total
revenue of the Vietnam Oil and Gas Group (PetroVietnam) in the first seven
months of the year is estimated to fall 4 percent year-on-year due to an oil
price decrease of around US$8.8 per barrel.
This
information was reported by PetroVietnam’s Deputy General Director Nguyen Vu
Truong Son during an online meeting of the Ministry of Industry and Trade on
August 5.
However,
PetroVietnam contributed US$4.58 billion to the State budget in the
January-July period, up 1 percent year-on-year, Son said.
The
group reported that petroleum output in July is estimated at 520,700 tonnes,
up 25.5 percent over the same period last year, bringing total production for
the January-July period to over 3.8 million tonnes, up 28.1 percent year-on-year.
PetroVietnam
also extracted 9.7 million tonnes of crude oil in the first seven months of
this year, a 1.3 percent year-on-year rise.
Gas
exploitation in the period totaled 60.1 billion cubic metres, up 9.7 percent
against the same period in 2012.
Footwear,
handbag production jumps on strong Japanese orders
The
leather and footwear sector expects to surpass its target of US$9.7 billion
in turnover this year, as many Japanese importers have shifted their orders
from
Turnover
is expected to increase even more if the Trans-Pacific Partnership (TPP) and
the Free Trade Agreement (FTA) between
Many
importers, including those from
Luu
Van Thanh, director of Hoang Kim Handbag Ltd Co in
Thanh's
company, which employs 100 people, exports all of its products, to
Many
importers viewed Vietnamese standards for handbag production as higher than
those of other ASEAN countries such as
Truong
Thi Thuy Lien, director of Lien Phat Footwear Ltd Co in Binh Duong province,
said that after two months of surveying the market and sending samples, her
company has received its first orders from a Japanese partner.
The
company's export orders are full until the end of the year, according to
Lien.
The
leather and footwear association said the TPP and FTA would cut tariffs to
zero percent, which would make Vietnamese exports more competitive with
In the
first six months of the year, the footwear sector earned more than US$3.99
billion in turnover, an increase of nearly 14 percent compared to the same
period last year.
The
Bag
and suitcase products also saw an export growth rate of 22 percent in the
first six months, with a turnover of US$ 911 million.
Exports
to the
Quang
Ngai grants licences for 13 new projects
The
central
It has
granted business licences for 285 projects, including 260 from domestic
investors and 25 foreign-invested projects worth $5.2 billion in total, says
director of the Provincial Investment Promotion Centre Tran Ba
Among
the projects, JK Paper manufacturing company from
"Businesses
have actually disbursed $3.6 billion in projects, 70 per cent of total
registered capital, while 13 of 25 foreign-invested projects have put into
operation,"
"Dung
Quat is seen as one of the top five attractive coastal economic zones in
The
province has offered investors a 10 per cent income tax rate with tax
exemptions in the first year, he added.
Firms
favour HCM City Stock Exchange
Listed
companies are showing a trend to favour the HCM City Stock Exchange over that
of Ha Noi.
The
sizes of the two stock exchanges are significantly different. As of July 31,
market capitalisation of the HCM City Stock Exchange reached VND817.3
trillion (US$38.5 billion) compared to the Ha Noi Stock Exchange's VND94.55
trillion ($4.4 billion).
The
more stringency in regulations on capital and business results of the
southern exchange made listed companies on the bourse more attractive to
investors than those on the Ha Noi bourse.
Firms
which wish to list shares in
Both
exchanges require a return on equity ratio of at least 5 per cent, but the
In the
first six months of this year, foreign investors were net buyers in
The
VN-Index has so far gained 11.76 per cent while the HNX-Index rose only 5.56
per cent. That is why companies favour the HCM City Stock Exchange to list
their shares.
Pha
Lai Thermal Power (PPC) rose from VND36,000 ($1.60) to VND65,400 during eight
months trading on the Ha Noi Stock Exchange in 2010 and 2011. When it moved
to HCM City just two weeks later, the reference price was VND105,000 ($4.90).
Although
PPC price is currently only VND23,200, it has become one of the 30 largest
stocks tracked by the VN30 and selected into the FTSE Vietnam ETF index.
Retailer Pan Pacific Corporation (PAN) also had a higher reference price in
Construction
Investment Corporation 3-2 (C32) and Bien Hoa Packaging Company (SVI) were
the same stories.
Finance
firm floats
Financial
firm FLC (FLC) will list shares on the HCM City Stock Exchange next Tuesday.
Initially, the company announced the reference price for the listing would be
VND10,000. However, it then immediately adjusted to VND5,500, its price
previously on the Ha Noi Stock Exchange.
FLC
chief executive Doan Van Phong said Saigon Securities Inc had assessed its
book value at VND15,000 per share. "However, due to unstable stock
market conditions, the VND10,000 reference price is no longer
appropriate," he said.
Tax
evasion on rental houses on the rise
Tax
evasion on rental houses has become more common and complicated in Ha Noi,
especially in Tay Ho District where the business has developed rapidly.
The
Tax Department in Tay Ho District reported the area was booming with many
houses available for rent and a predominantly foreign clientele.
In
Quang An precinct alone, nearly 800 families are renting out their houses.
This type of business is mostly concentrated in two new urban areas - the Nam
Thang Long-Ciputra and along the
By the
end of last year, the total number of families leasing their houses in this
area rose to 2,300, accounting for nearly 50 per cent of the individual
household businesses and 80 per cent of tax payments from individual household
businesses in the district.
An
official from the Tay Ho District Tax Department who wanted to remain
anonymous said over the past few years, the Department had taken several
measures to strengthen tax administration on house rentals in the area.
However,
tax collection from this kind of business was often tricky as many families
tried to avoid tax by not registering for payment. Some families had
deliberately made two contracts on a rental house and showed the Tax
Department the one with an artificially low rent in order to pay lower tax,
he said.
This
practice has reportedly been carried out in collusion between house owners
and tenants, he said.
To
avoid paying taxes, some families have collected rental fee though banks
without reporting information about tenants in an attempt to avoid scrutiny
from tax authorities.
To
deal with the problem, the Tay Ho District Tax Department has worked with
local police to implement effective preventative measures and regularly
exchanges information about tax policy with local police so they can
disseminate details and encourage those who have their house up for lease to
voluntarily pay tax.
The
Tax Department has also provided local police with information about families
leasing their houses to help police review temporary residences in the local
area
Domestic
petrol prices yet to fall
A man
buys petrol at a station in Ha Noi. Vietnamese authorities seem unsure if and
when petrol rises will fall in line with world oil prices. — VNA/VNS Photo
Hoang Hung
HA NOI
(VNS)— Vietnamese authorities seem unsure if and when petrol rises will fall
in line with world prices for oil, but the chances are that nothing will
happen until the end of September when a new decree governing the petrol
industry is issued.
At
present, any. adjustments to petrol prices must comply with Decree 84, said
Nguyen Xuan Chien, Deputy Director of the Domestic Market Department under
the Ministry of Industry and Trade.
Although
world petrol prices have been falling since the end of July, any decrease in
domestic petrol prices must be based on the calculations of the 30-day
average world prices, Chien said.
If the
30-average falls, wholesale enterprises must lower the domestic retail petrol
price, Chien said.
Chien
added that there would be a completely new decree to replace Decree 84 which
was revealed many limitations in regulating petrol business, instead of just
amending it.
Industrial
stockpiles fall
The
manufacturing and processing industry's inventory index continues to fall
thanks to higher domestic consumption, said Deputy Minister of Industry and
Trade Ho Thi Kim Thoa.
The
ministry's figures indicated that July's index ended 8.8 per cent above last
July's, but decreased by 0.9 per cent against June.
Sales
have increased in commodities such as urea fertiliser (up 41.3 per cent),
motorcycles (19 per cent), cement (14.2 per cent), footwear (11.9 per cent)
and garments (8.6 per cent).
Sectors
with highest drop in inventories included electronic components (down 75.2
per cent), communication devices (down 76.9 per cent), automobile
manufacturing (down 38.1 per cent), cement production (down 33.7 per cent),
woven production (down 32.3 per cent) and footwear (down 19.2 per cent).
However,
some production sectors posted inventory indexes with high growths, such as
sugar (up 49.6 per cent), beer (up 33.3 per cent) and batteries (up 37.7 per
cent).
In
July, the index of industrial production (IIP) surged by 5.2 per cent and the
consumption index for the processing and manufacturing sector also jumped 8.3
per cent year-on-year. The manufacturing and processing industry's inventory
index continues to fall thanks to higher domestic consumption, said Deputy Minister
of Industry and Trade Ho Thi Kim Thoa.
The
ministry's figures indicated that July's index ended 8.8 per cent above last
July's, but decreased by 0.9 per cent against June.
Sales
have increased in commodities such as urea fertiliser (up 41.3 per cent),
motorcycles (19 per cent), cement (14.2 per cent), footwear (11.9 per cent)
and garments (8.6 per cent).
Sectors
with highest drop in inventories included electronic components (down 75.2
per cent), communication devices (down 76.9 per cent), automobile manufacturing
(down 38.1 per cent), cement production (down 33.7 per cent), woven
production (down 32.3 per cent) and footwear (down 19.2 per cent).
However,
some production sectors posted inventory indexes with high growths, such as
sugar (up 49.6 per cent), beer (up 33.3 per cent) and batteries (up 37.7 per
cent).
In
July, the index of industrial production (IIP) surged by 5.2 per cent and the
consumption index for the processing and manufacturing sector also jumped 8.3
per cent year-on-year.
SBV
expands money printing factory
The
management Board of Project NH09, under the State Bank of
The
project aims to enhance the production capacity of the factory and to
contribute to national currency security.
The
project is expected to be completed by 2014 and begin operations in 2015.
Fourteen
exports exceed $1bn
Statistics
from the General Statistics Office show that 14 export items exceeded US$1
billion in revenue by the end of this July.
Telephones
led the exports with a revenue of more than $11.6 billion, an 87 per cent
increase from a year ago.
Next
to telephones were textiles and garments ($9.64 billion), electronics and
computers ($5.7 billion), footwear ($4.8 billion), crude oil ($3.1 billion),
seafood ($3.4 billion), machinery and equipment ($3.1 billion), transport
products ($2.97 billion), wood products ($2.9 billion), coffee ($1.9
billion), rice ($1.87 billion), rubber ($1.22 billion), bags and umbrellas
($1.08 billion) and iron and steel ($1.02 billion).
While
exports of plastic wares reached $989 million, a 9.7 per cent increase.
Central bank
moves on weak lenders
From
September 20, the Governor of the State Bank of
The
decision was issued late last week in the context that the nation was
stepping up efforts to restructure the banking system, an important pillar
for propping up the economy when bad debts remained one of the biggest
hindrances to national economic recovery.
Dung stipulated
that lenders having to sell stakes would be those which suffered losses with
values exceeding the values of their equities and reserve funds recorded in
latest financial reports, adding any termination of their operations could
endanger systematic security.
The
Governor woul decide how much stake credit institutions should purchase and
the State Bank could itself acquire stakes in weak lenders if necessary. The
central bank might support the designated institutions through refinancing
loans, special loans or by loosening requirements for their operations for a
certain period of time.
Divestments
would occur when the weak lenders returned to normal operations or when they
were acquired or merged, with central bank permission.
"I
think the State Bank intervention in fragile banks is reasonable and
necessary," independent financial expert Nguyen Tri Hieu told Thoi bao
Ngan hang (Banking Times).
Hieu
said that choices to deal with weak commercial banks could be to let them
seek ways to restructure or bring them under State control. However, in the
current context, State interference seemed to be the only way.
Currently
few domestic investors dared to invest in weak commercial joint-stock banks,
he noted.
Indian
businesses discuss VN ties
A
seminar was held in Chennai city, Tamil Nadu,
During
the event, Vietnamese Trade Counsellor Nguyen Son Ha provided the
participants with information about the Vietnamese economy, and bilateral
trade and investment ties between
He
introduced them to the ASEAN (
The
trade official answered the Indian firms' inquiries about
Ha
provided the participants with contact details for related Vietnamese
agencies and invited them to participate in several trade fairs to be held in
Both
countries are striving to achieve an annual bilateral trade turnover of $7
billion by 2015.
Last
of highway widening underway
A
22-km stretch of National Highway 1 between Can Tho City and
The
section will be expanded to 21.6 meters, and have four lanes for motor
vehicles (up from the current two) and two more for non-motorised vehicles.
There are some newly built and upgraded bridges along the route.
The
build-operate-transfer (BOT) project, when completed in early 2016, is
expected to ease the growing congestion and reduce accidents on the highway.
It
will link Can Tho's Cai Rang District with Hau Giang's Phung Hiep District.
The
work that began last Friday is the last of 17 projects nation-wide to widen
the
Speaking
at the groundbreaking ceremony, Deputy Prime Minister Hoang Trung Hai said
widening the highway would spearhead expansion of trade, investment, and
socio-economic development in the Mekong Delta region.
"It
will also play an important role in the country's socio-economic development,
defence, and security."
He
hailed the project's BOT mode saying since public funding is limited the
Government is implementing a policy of "socialising investment."
He
also hailed the Ministry of Transport, contractors, and Can Tho and Hau Giang
authorities for their meticulous preparation.
He
urged investors and the involved localities to acquire and clear lands in a
manner that would not only safeguard the benefits of their owners, workers,
and the environment, but also ensure construction quality and progress to
meet deadlines.
On the
same day, construction of Co Chien Bridge on Highway 60 also began.
Being
built at a cost of VND2.31 trillion ($110 million) — including VND1
trillion($47million) in public funds — the cable-stayed bridge will have four
lanes spanning 16 meters and allow vehicles to travel at up to 80 kilometres.
When
competed in 2016 it will connect the highway section between Tien Giang and
It
will reduce the distance between
Remittances
to City banks up to $2.2 billion
Remittance
to the country through HCM City-based banks in the first seven months of the
year rose to US$2.2 billion, or 19 per cent over the same period last year,
according to statistics from the State Bank of
Nguyen
Hoang Minh, deputy director of the branch, said that the amount of
remittances converted into domestic currency have increased significantly
from the past thanks to stable exchange rates. Most of the remittances were
kept in foreign currency with only 11-12 per cent being converted into the
dong, he said.
Besides,
Minh said, remittances mostly haven't flowed into the real estate industry
over the past two years. In the first six months of the year, remittance to
the real estate industry was only 22 per cent against more than 50 per cent
in 2011. Up to 49 per cent of the remittance in the period was for
production.
Experts
said that the remittance invested in production has been the most attractive
to overseas Vietnamese, as the savings channel was less profitable due to low
deposit rates, the gold investment channel risky and the security channel
less popular.
Minh
forecast that remittances into the country would jump to $4.5-4.7 billion for
the whole of 2013, up 10-15 per cent against last year.
Minh
said that remittances to the country often rise sharply in the fourth
quarter, accounting for roughly 30-35 per cent of the total figure, as
overseas Vietnamese seek to transfer money to their relatives for spending
and shopping during year-end holidays.
Sugar
stockpile could sweeten exports
The
Ministry of Industry and Trade (MoIT) is considering giving permission to
export unsold stockpiles of sugar, according to Tran Thanh Hai, deputy
director of the Import-Export Department, at the ministry's press conference
yesterday.
Statistics
showed that the sugar inventory in June reached 492,000 tonnes, 179,000
tonnes higher than the same period last year.
Hai
estimated that the amount of sugar to be consumed in the country from July to
October would be around 270,000 tonnes, leaving the unsold inventory at
220,000 tonnes, not to mention the minimum imported sugar amount in
accordance to the World Trade Organisation's regulations.
At the
end of last month, the Ministry of Agriculture and Rural Development sent the
sugar export proposal to the MoIT.
The
2013-14 sugar crop started this month. The agricultural ministry said that
the output for this crop would meet and even exceed the demand from November.
Nguyen
Hai, general secretary of the Viet Nam Sugar and Sugarcane Association, said
that high inventories burdened sugar enterprises while smuggled sugar was
also a headache.
According
to the General Department of Customs, more than 100 cases violating
regulations about temporary import for re-export of goods have occurred,
totaling 13,805 tonnes and fines of VND2.432 billion (US$115,810).
Status upgrade
for PJICO corp
An
upgrade of status for the Petrolimex Joint-Stock Insurance Corporation
(PJICO) was granted last week.
The
new corporation status is part of a restructuring programme of PJICO's parent
company, Petrolimex, towards 2015.
PJICO,
which celebrated its 18th anniversary this week, was established by
Petrolimex and other major shareholders, including Vietcombank, Vietnam
Reinsurance Corp and Vietnam Steel Corp.
PJICO
is the fourth largest non-life insurer in
Also
last week, the company opened its new head office building on
Regulations
on tax-debt relief
The
newly-issued Decree on detailed implementation of the Law on Tax Management
(amended) stipulates three types of tax debt relief.
Accordingly,
enterprises, which are declared bankruptcy, have conducted payments in line
with the regulations of the Bankruptcy Law but have no asset to pay taxes
shall be subjected to tax-debt relief.
Tax-debt
relief shall also be imposed for individuals who are considered dead, missing
under the law or losing his/her civil act capacity or having no asset to
cover tax payment.
Except
for the above two cases, tax debts which have not been paid for over ten
years since the date of payment deadline or have not been collected by tax management
agencies in spite of enforcing all means of coercion shall be cleared.
The
Decree also stipulates that tax-debt relief on land use and land lease fees
shall be in accordance with the Law on Land and its guiding documents.
The
Decree will take effect since September 15, 2013.
Tiger
prawn prices up but tra fish all at sea
Prices
of tra fish and tiger prawn are moving in opposite directions in the Cuu Long
(
In
early July tra prices went down sharply, leaving farmers unhappy.
Le Chi
Binh, deputy chairman of An Giang Aqua-Culture Association, said the price of
grade 1 tra stood at VND18,500-19,000 per kilogramme on July 24, leaving
breeders to count losses of VND3,000 per kilogramme.
Plentiful
supply from farms in the region and lower export prices are major causes for
the decline in the local market, Binh said.
As a
result, tra fish breeding ponds in An Giang, one of the provinces with the
largest pond area in the delta, have shrunk by 18 per cent from last year to
779 ha.
The
area, once around 2,200ha, could drop further as many farmers have given up
breeding tra after the last harvest and switched to other kinds of fish.
Tong
Minh Chanh, a tra farmer in Long Son commune in An Giang Province's Phu Tan
District, said to avoid further losses from exports, he switched to farming
the fish for domestic consumption, but the situation has not improved.
"I've
decided to farm fry and breed loach," he told Viet Nam News.
Farmers
also face problems when selling tra since buyers have many other sources of
supply.
Le Van
Loc of Tan Nhuan Dong commune in Dong Thap Province's Chau Thanh District,
said he had two hectares of mature tra (of 600-700 grammes each, market price
VND20,500-21,000 per kilogramme), but buyers were late to come.
But
once the fish becomes oversized (over 700 grammes), prices fall to just
VND18,000-19,000.
Unlike
tra farmers, however, prawn farmers are happy because prices have gone up
relentlessly in the past few months. Prawns weighing 50 grammes are now
selling for VND230,000-240,000 per kilogramme, and those weighing 25 grammes
fetch VND155,000.
Tran
Thanh Tan, a farmer in
He
said if farmers harvest 250-300kg per hectare, they can get some profits
since costs are not too high.
Many
businesses too have invested in shrimp farming.
According
to Nguyen Van Thanh, head of the Kien Giang Department of Agriculture and
Rural Development's aquaculture division, farmers and businesses in the
province have nearly 2,000 ha of shrimp farms, mainly in the Long Xuyen
Quadrilateral.
Industrial
manufacturing see rise in July
The
Ministry of Industry and Trade announced that the index of industrial
products (IIP) rose 7 percent in July, compared to the same period last year.
In
which, mining, processing and manufacturing industries increased 6.8 percent;
power generation and distribution grew 9.2 percent; and water supply and
wastewater treatment surged 11.6 percent.
Industries
which saw an increase in seven-month IIP compared to the same period last
year include leather and leather products manufacturing with 17.3 percent;
motor vehicles manufacturing with 14.3 percent; paper and paper products
manufacturing with 11.6 percent; chemicals and chemical products with 10.8
percent; metal prefabricated building products manufacturing, excluding machinery,
with 10.5 percent; and water exploitation, treatment, and supply with 10.5
percent.
Seven-month
IIP of Ho Chi Minh City rose 5.3 percent year-on-year;
Inventory
index of industrial processing and manufacturing by July 1 emerged 8.8
percent year-on-year. Some industries with higher inventory levels compared
to the same period last year include beverages with 33.3 percent; cigarettes
with 22.2 percent; medicines and pharmaceutical chemicals with 20.6 percent;
chemicals and chemical products with 14.3 percent; electronic devices with
12.2 percent; and paper and paper products with 12.1 percent.
According
to the ministry, imports of input materials have improved in recent months,
signaling recovery of some industries, especially processing and
manufacturing. However, the industry still has to focus on dealing with high
inventory levels as local and global demand remains low.
Revenue
from export of telephones touches US$11.2 billion
According
to the Ministry of Industry and Trade, revenue from export of telephones has
reached US$11.2 billion, an increase of 1.7 percent against last month and
9.8 percent against the same period last year.
Meanwhile,
import revenue was at US$11 billion, a 2.6 percent month-on-month increase
and 11.6 percent against the same period last year.
Accordingly,
July saw a trade surplus of US$200 million.
Yet
export and import of Foreign Direct Investment (FDI) saw higher growth than
domestic sector.
Total
imports of the domestic sector reached US$7.65 billion while the FDI sector
export totaled US$6.91 billion.
The
processing industry sector increased 25.8 percent over the same period last
year, playing an important role in export revenue growth and accounting for 69.5
percent of the country’s total export revenue.
Export
of agriculture and fishery products in July saw rise of 8.9 percent
month-on-month but a year-on-year decrease of 7.2 percent due to low prices
and bad weather conditions.
Trade
surplus in July maintained the same as June at around US$200 million, showing
an economic recovery despite difficulties.
ADB
helps build new transport link in Mekong Delta
The
Asian Development Bank (ADB) has agreed to lend
This
transport link will help open up
Rustam
Ishenaliev, a specialist from ADB’s Southeast Asia Department, said
The
ADB-funded project will build a section of the Second Southern Highway,
comprising two cable-stayed bridges with a combined length of 5km and
associated access and interconnecting roads totaling 26km. The road, which is
scheduled to be open to traffic by the end of 2017, will run on the
boundaries of An Giang, Can Tho, and Dong Thap provinces to the west of the
Mekong Delta.
In
addition to transport convenience, the project is expected to support more
inclusive development, improve access to basic social and health services,
increase national food security and facilitate private sector investment in
the region.
The
project is estimated to cost US$860 million, with US$410 million financed by
ADB’s Ordinary Capital Resources and AUD$160 million by the Australian Agency
for International Development (AusAID). The Export-Import Bank of
Hanoi
to host Thai Product Exhibition
Nearly
150 Thai companies will participate in the 13th Thai Product Exhibition
scheduled for August 15-18 in
The
information was unveiled at a press conference in
They
will put up 180 stalls to showcase household utensils, garments and textiles,
jewelry, automobile and bicycle’s components, electronic equipment and spare
parts.
During
the exhibition, there will be diverse activities to promote bilateral trade
and cultural exchange between
Hitachi
secures infrastructure foothold in Vietnam
Hitachi
Asia Ltd announced the establishment of its subsidiary firm in
Established
with initial capital of approximately US$500,000, Hitachi Asia (
“
The
Tokyo-based company entered into a 37 billion yen (US$376 million) contract
with the Management Authority for
Hitachi
is to deliver sub-systems including 17 train sets with a total of 51
carriages, a signaling system, a telecommunications system including wireless
train radio and a power supply system, as well as platform screen doors, an
automatic fare collection system and depot facilities.
It is
also scheduled to undertake five years’ maintenance work after the start of
commercial operations, with details due to be stipulated in a separate
agreement.
The
new urban railway is scheduled to begin operations in early 2018.
Over
recent years,
Of the
total US$13 billion FDI in
Electronic
traceability for export goods
Enterprises
are expected to benefit from tracing export goods through electronic or
digital tagging.
Some
companies are afraid of revealing trade secrets, while others use obfuscation
to hide trade frauds.
According
to the Ministry of Agriculture and Rural Development (MARD), almost all
domestic businesses use paper records. They invent a code for each batch that
is printed on packaging according to the tacid agreement between trade
partners.
This
means only businesses can understand the code and investigate product origins.
Regulations require traces to be completed within 24 hours, but it is almost
impossible in
No
wonder state management agencies, importers, and consumers find it all the
more difficult to trace the roots of every product.
State
management agencies have urged businesses to adopt more modern methods of
tracing product origin but have thus far enjoyed negligible success.
The
“TraceVerified” electronic traceability system for agricultural and seafood
products will help reduce red tape, encourage agriculture’s sustainable
development, and improve the competitiveness of Vietnamese exports on world
markets.
According
to the Danish International Development Agency, the Global Competitive
Assistance Program’s “TraceVerified” system will bring practical benefits to
state management agencies and businesses involved in the import-export
sector.
Danish
Ambassador to Vietnam Frederik Andre Henrik Christian cited the difference
between EU and US laws which has affected Vietnamese farm produce exports.
Tracing product origins by paper work is too slow to compare with electronic
traceability – a common practice in Europe and
Dr
Dang Kim Son, Director of the
With
14 million farmers working on a large scale, it is important to help them
avoid the risk of market fluctuations as they are at the mercy of dishonest
traders.
Farmers
need to collect data on scale, output, competition, input materials,
production services, and investment policies.
“TraceVerified”
Project Manager Dr Nguyen Hong Minh said the Ministry of Agriculture and
Rural Development should establish locality codes for every agricultural and
seafood product in line with international standards.
“TraceVerified”
Deputy Director Ly Hoang Hai explained how scannable printed codes connected
to the website network can meet the origin trace requirements of different
importers.
The
“TraceVerified” system is currently in place for 12 local businesses. And the
project managers plan to install free systems for seafood export businesses
by the end of 2014.
According
to experts, the application of a universal electronic traceability system is
certainly feasible, but it will require intervention from state management
agencies, enterprise associations, and new businesses to ensure its success.
|
Thứ Tư, 7 tháng 8, 2013
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