BUSINESS IN BRIEF JAN. 14 SBV releases new circular on overseas investment The State Bank of Viet Nam (SBV) has issued a circular, effective from February 14, to regulate the opening and usage of foreign currency accounts for investing abroad. Accordingly, after receiving a certificate for overseas investments, an investor must open an account for all transactions related to investments in foreign currencies at an authorised credit institution. The investor will also have to register with SBV or its branches in the provinces and cities. An investor with several overseas investment projects must open an account for each project. If a project receives investments from multiple investors, each investor must open an account for his/her investment at the same authorised credit institutions in accordance with the investment certificate issued by the authorised agencies of Viet Nam. SBV's Department of Foreign Currency Management is authorised to certify the registration of overseas investments, account changes and capital transfers to investors that are credit institutions. Award honours best company reports The Annual Report Awards for listed companies to honour professionalism and transparency in filing their annual reports was unveiled on Thursday. The seventh ARA contest is organised by the HCM City Stock Exchange (HOSE) and Viet Nam Investment Review's sister publication Dau tu Chung khoan, and sponsored by fund manager Dragon Capital Group Limited. Titled "Corporate Governance towards Sustainable Development" this year, the contest encourages businesses to further improve the quality of published information on corporate governance. Transparency, professionalism, and creativeness continue to be the major criteria, and winning the award depends on the way companies publish their information rather than their business performance, the newspaper's editor-in-chief, Nguyen Anh Tuan, said. Open to all enterprises listed in both HCM City and Ha Noi, the entries for selection are those submitted for fiscal 2013 to the two exchanges, Tran Anh Dao, HOSE's deputy CEO, said. April 21 is the deadline for submission. The jury will have five members, including officials from the International Finance Corporation responsible for judging corporate governance. There will be a new award this year for best corporate governance. Last year the Sustainability Reporting Awards were added to the ARA to encourage listed companies to publicise information on issues related to the environment and society and to raise awareness of sustainable development associated with environmental social responsibility, thus promoting corporate social responsibility. Viet Nam is soon set to introduce a law on sustainable development. This year's programme continues to see the International Finance Corporation and UK-based global body Association of Chartered Certified Accountants in charge. Since its launch in 2008 the ARA has been attracting increasing interest among listed companies, and around 180 reports have won out of more than 2,400 entries. Central Province to attract 250 businesses for Spring Fair As many as 250 businesses from 14 provinces and cities nationwide will participate in the Spring Fair at central Da Nang City's Exhibition Centre during January 16-22. The exhibition, which will feature 400 pavillions, aims to provide goods for the local people as the Tet (Lunar New Year) festival approaches. Companies from Khon Kean and Ubon in Thailand, Cambodia, South Korea and China are also expected to participate in the exhibition. Viet Nam improves global rank in licence procedures Viet Nam has been ranked 28th among 185 countries for its licensing procedures for the construction industry in 2013, and represents a jump of 39 places from the previous year. According to the World Bank's report on 11 indices evaluating the business environment in Viet Nam, the construction industry licensing procedure is one of only two indices that showed an increase. The other nice indices evaluating the business environment declined. The Ministry of Construction noted that, in 2013, the number of unlicensed constructions reduced sharply by 9 per cent compared with 4 per cent in 2012. It said localities had rushed to seek official approval on new regulations for the construction industry that would provide a more effective base for granting licences. HCMC steps up property trading supervision HCM City will tighten the operations of property traders to ensure violations are discovered in time, which should protect real estate investors and increase transparency in the market. The city's Department of Construction said the city had 479 real estate trading companies that are allowed to operate active trading floors. However, more than half of them have stopped their operations or relocated without informing their managing agencies. It also punished six investors and four real estate trading companies after investigations. The city also plans to increase the punishment of investors who do not strictly adhere to construction regulations. HCMC attracts foreign retail giants A large number of foreign retailers are actively seeking to expand their operations into Ho Chi Minh City, said CBRE Vietnam Co. Ltd. The companies include such retail giants as Aeon Mall, McDonald's, Dukin’ Donuts, Super Sport, and Dairy Queen. Vietnam officially committed, when it joined the World Trade Organization, to relaxing the laws to permit more 100% foreign-owned companies to operate in the country by 2015. This commitment has motivated foreign retailers to actively pursue expansion in the Vietnamese market. HCM City’s retail sales are estimated at VND607,000 billion for 2013 and are expected to remain at high levels thanks to the supermarket sector which has performed well in recent times. Transport route opened to connect Nam Dinh-Ha Nam The northern provinces of Nam Dinh and Ha Nam officially opened a road linking both localities on Saturday. The road is of national importance to the social and economic development, as well as the security and defence of the southern part of the Red River Delta, according to Minister of Transport Dinh La Thang. The project was approved by the Prime Minister in 2007, at a cost of VND3.8 trillion (US$180.9 million). The 25.1-km road connects Nam Dinh Province's My Loc District and Ha Nam's Phu Ly City. It has four lanes and allows vehicles to travel at speeds up to 80km per hour. The section within Nam Dinh Province linking Nam Dinh City and its My Loc District, stretching 3.9km, was inaugurated and put into operation in June 2012. The remaining road, from My Loc to Ha Nam Province's Phu Ly City, was built under the Build-Transfer plan during four years of construction. The inter-provincial road is joined to the highway from Ha Noi to the regional province of Ninh Binh. Together, they are expected to assist the region's trading with other provinces across Viet Nam. PM calls for support for domestic businesses Prime Minister Nguyen Tan Dung has instructed the Ministry of Industry and Trade to boost support for local businesses in 2014 as economic restructuring initiatives continue to be implemented. The PM was addressing the New Year conference of the Ministry of Industry and Trade (MoIT), held in Ha Noi yesterday. Dung said the ministry should focus its full attention on introducing policies that assist the building of domestic brands and fully develop support industries, thus increasing the technological and local content of made-in-Viet Nam products and allowing a step-by-step switch from subcontracting and assembling to designing and manufacturing. He suggested that the "Vietnamese people using Vietnamese goods" campaign should be further expanded, while the ministry must play a more active role in negotiating   free trade agreements, especially the Trans-Pacific Partnership (TPP) and Viet Nam-EU Free Trade Agreement, and in popularising existing deals so that domestic enterprises can make full use of the available preferential treatment. He also demanded that the ministry strengthen market management efforts to curb the proliferation of fake goods, trade fraud and smuggling, while ensuring the supply-demand balance for essential commodities. The leader noted that the application of a market pricing mechanism on electricity, coal and petrol should continue to be implemented transparently in line with the specified road map, while keeping inflation under control. At the same time, there should be appropriate policies in place to support the poor and the beneficiaries of social welfare. The government leader commended the ministry for the work it had done in 2013 in the context of the economic downturn. He said the ministry's efforts have resulted in quarterly increases in industrial production and sharp decreases in inventory index. The domestic market has maintained a healthy growth, while exports have surpassed the fixed targets. According to reports made available at the conference, the industrial production index saw a 5.9 per cent rise in 2013, compared to 5.8 per cent in 2012. Total retail and services revenue for the year rose by an estimated 12.6 per cent from the previous year. The country earned more than US$132.17 billion from exports, up   15.4 per cent from the 2012 figure and higher than the annual target set by the National Assembly. The ministry is resolved to continue implementing institutional reforms and completing the legal framework for the industry and trade sector with the goal of creating a fair business environment, in line with a socialist-oriented market economy and international practice. The sustainable development of exports is also high on the ministry's agenda for 2014, together with restructuring industrial production and developing support industries. To implement the plan in 2014-15, the trade and industry ministry has proposed several solutions, such as maintaining the supply and demand of essential commodities for the national economy under all circumstances and effectively implementing plans and programmes for market stabilisation. Experts discuss orientations to attract FDI It is time for a new approach to foreign direct investment (FDI), one that will find solutions that improve FDI efficiency for the broader benefit of the country's economic growth, experts said at a workshop held in HCM city yesterday. "Localities should focus their attention on ways to attract FDI in order to implement their socio-economic development plans effectively and set up relations between domestic and FDI businesses. In this way, local firms can effectively participate in the global value chain," said Prof Nguyen Mai. "Regarding markets and partners, provinces and cities should concentrate on small to medium-sized enterprises operating in Viet Nam and create a favorable environment to attract more trans-national corporations (TNCs) from the US, the EU, Japan, Korea and elsewhere," he told participants at the event. The focus of the event was ways to enhance the efficiency of FDI into Viet Nam. It was organised by the Ministry of Planning and Investment in coordination with the weekly Viet Nam Investment Review. He added that making Viet Nam a more attractive investment destination starts with analysis of the foreign policies of each country and the global strategy on trade and investment of each economic group. He also wants to implement public-private partnerships (PPP) for technical infrastructure projects, and new investment forms like mergers and acquisitions (M&A) and NEM (non-equity modes). We need to amend and supplement policies affecting FDI projects by giving incentives based on not only sectors and areas, but also territorial regions, he said. "While many ASEAN countries have improved their investment environment, making them attractive to world FDI, some elements of the investment climate in our country, especially the legal system and administrative procedures, are yet to meet expectations of large investors," he noted. Most importantly, he said, ministries, agencies and authorities must recognise the inability of the administrative apparatus to improve the investment environment – in particular administrative procedures that guide and support FDI businesses in carrying out projects and overcoming difficulties. Once we recognise this, we can hope to find quicker and more effective solutions to issues posed by foreign investors and FDI enterprises. "It is necessary to renovate the state management of FDI to make it more harmonious and efficient," he stated. The Ministry of Planning and Investment is (MPI) in the process of amending and supplementing the laws on investment and enterprise, which will involve a number of provisions in other laws. To ensure a united viewpoint among ministries and agencies, we must follow the instruction of the Prime Minister, who held a meeting on the topic of foreign investment. In   it, he stated, "New policies and laws must create more favourable conditions and provide more profits for investors and businesses." Meanwhile, Do Nhat Hoang, director of the Foreign Investment Department under the MPI said that viewpoints and orientations on FDI attraction were clearly defined in the government's Resolution No103/NQ-CP dated August 29, 2013. One of the new strategies was to select high quality and added-value projects that use modern and environmentally friendly technology, particularly in the fields of information technology information and biotechnology serving agriculture, infrastructure development, high-quality human resources training, research and development, and modern services. Another orientation is to attract large-scale projects with products capable of joining global value chains of transnational corporations, thus building and developing a system of support industries and businesses. Other suggestions were to encourage industrial projects to shift from outsourcing to production; select large and prestigious investors to invest in developing the financial market whilst simultaneously paying attention to small and medium-scale projects. Hoang said the resolution also emphasises encouraging, facilitating and strengthening links between FDI businesses and domestic enterprises. Vo Quang Hue, managing director for Robert Bosch Viet Nam raised the issue of support industries. He said that support should be understood as both assisting production facilities operating in Viet Nam, as well as supporting exports to regional and global markets. He explained that if it were only serving only those in Viet Nam, it would be a very small-scale industry. According to Christian Kamm, president of Kamm Investment Inc, research has proven that countries with a long-standing policy of promoting foreign direct investment usually are the greatest beneficiaries of FDI. "In the case of Viet Nam, the government has been cautious to change laws and regulations in investment law. It is clear that this has had a detrimental effect on foreign investment. In some cases investors probably eliminated Viet Nam very quickly from their investment options," Christian noted, adding that there is remains a question mark over the necessity to change current investment law. "Most developing countries share similar, though not identical, labour costs. Labour costs are often considered a major determining factor in deciding an FDI destination," he told participants. Recently, Samsung announced it will shift a great deal of its China-based handset production to Viet Nam from China in order to "maintain its margins". This multi-billion dollar investment appears to be centrered solely around wage costs, but is that the reality, he asked. Geographically, Viet Nam is a favourable country. It's located in a region of a 1.9 billion person-strong emerging middle class (this is by far the largest and most lucrative future consumer market in the world) which presents a clear advantage. "Viet Nam is also forging ahead with its involvement in the Trans-Pacific Partnership (TPP) which will provide essentially free trade between member countries, representing over 70 per cent of all consumers in the world. "Maybe Samsung has noted a shift in trading power away from China, and is intending to take advantage of the emerging opportunity in Viet Nam. "Viet Nam's interest and involvement in the regional ASEAN Economic Community (AEC) will also provide regional trade assurance and eliminate duties. "But what has the country's commitment to the TPP and AEC meant to foreign direct investors? A clear desire in Viet Nam, to promote greater FDI and the stability (politically, economically, and socially) to make the conditions favourable to FDI growth. "It is easy to criticise any government decision that may affect FDI. What may be appreciated by some critics is a longer term view, a more balanced approach to FDI. Still others may deem a balanced approach as unnecessary," he said. "It is my belief that the most significant component should be desire and progress towards inclusion in trade agreements and regional and worldwide partners. Only then are countries like Viet Nam perceived to be stable, politically and economically. It is also my belief that although the investment laws in Viet Nam require updating to meet the current investment environment, the larger focus needs to be on vital partnerships like the AEC and TPP. As Viet Nam continues to move toward these   partnerships, balanced growth in FDI will become a reality over the short and medium term." Over the course of 25 years of FDI, the increased capital has contributed positively to the country's growth. By the end of 2013, there were over 15,000 valid projects that totalled US$219 billion in registered capital, of which $107 billion were disbursed. Young students learn about business skills Around 500 students from Hanoi, Ho Chi Minh City and Danang held a dialogue with representatives from 50 big businesses in the capital city on January 12. Representatives from businesses, such as Unilever, Suntory PepsiCo, Technombank, PwC, Microsoft and Panasonic and students discussed two main issues: social business spirit and business renovation. The Youth to Business Forum, organised by British Council, the Vietnam Chamber of Commerce and Industry (VCCI) and AIESEC (the world’s largest student-run organisation) provides a good chance for students to directly share experience with experts to better equip themselves with necessary knowledge to build future careers. Businesses can gain a better understanding about the younger generation and their development trends. British Council Director in Vietnam Chris Brown said the forum introduced the social business spirit to 500 outstanding and dynamic students who may become employers or hold important business positions in the future. Business spirit will focus on creative and effective business models to deal with social issues and contribute to sustainable environmental and social development. This is also the spirit that the British Council has pursued since 2009 through implementing a global project to build social business skills in Vietnam, Brown said. Keeping market prices under control in 2014 Finance Minister Dinh Tien Dung has confirmed the financial sector will use necessary instruments for managing market prices to support the government’s macroeconomic stabilisation efforts. In a weekly Q&A session for Cabinet members organised by the Government portal on January 12, Dung said effective management of market prices, especially essential commodities, is one of the sector’s priorities in 2014 to stabilise the macro-economy. “We believe once the macro-economy is kept in check this year, market prices in 2014 will be more stable,” he said. Minister Dinh Tien Dung says the financial sector will prioritise stabilising market prices in 2014 The minister stressed the prices of essential commodities such as oil and petrol, electricity, coal and gas will be executed in a way to avoid market shocks, contributing to the inflation control goal and harmonising the interest between the State, businesses and consumers. The sector will continue removing the price cross-subsidy mechanism, but ensure vulnerable groups in society, including the poor, policy beneficiaries, and those living in far-flung areas, will not be affected. Dung said Vietnam is eradicating the price cross-subsidy mechanism for a number of commodities, citing coal as a case in point in 2013. He underlined the need to promote the transparency in price management and adjustment to avoid market shocks. He confirmed petrol and oil prices have been adjusted in line with the market-based mechanism and under State management since 2009.   In 2014, he said, the ministry will make public global oil prices every day to support businesses in fixing domestic price levels. The Finance Minister also talked about measures to combat transfer pricing and tax dodging for businesses in Vietnam. Transfer pricing and tax dodging are a common occurrence in foreign countries, and Vietnam is no exception, especially during international integration and foreign investment attraction. Dung said the ministry has gradually controlled transfer pricing, with its tax agencies managing nearly 3,190 businesses and a database for tax management being built to back inspections. According to the minister, the number of foreign-invested companies claiming losses has fallen considerably, helping create a healthy competitive environment for all businesses. He called on the Ministry of Planning and Investment and the Ministry of Science and Technology to get involved in the fight to nip any violations in the bud. Vietnam business start ups rise in 2013 The government estimates that entrepreneurial start-ups of new businesses were 79,000 in 2013, according to Deputy Minister of Finance Do Hoang Anh Tuan. Meanwhile, 61,000 others either temporarily or permanently halted operations or filed for bankruptcy, he said. At a recent meeting in Ho Chi Minh City, Tuan attributed the rise in the start ups to improved business operations, revealing the number of profit earners made up 34.6% of the total, or 4.6% higher than in 2012. Businesses contributed more than VND91,000 billion to the State budget, representing an increase of 18% compared to 2012, he concluded. 2014 – a tough year for FDI attraction Vietnam can expect to encounter numerous difficulties in attracting foreign direct investment (FDI) in 2014, according to the Ministry of Planning and Investment and Planning. This is due to new stricter regulations that go into effect in 2014 requiring higher technology projects, less environmental pollution, and more added value, he said. Economic experts warn Vietnam’s investment climate will be less attractive unless it further upgrades infrastructure and accelerates administrative reforms. They say the country needs to draw up a new strategy for attracting FDI this year. Vietnam lured nearly US$22 billion in FDI in 2013. Key contributors included the processing and manufacturing, production, electricity and real estate industries. Walmart targets Vietnam as fruitful product source The US-backed Walmart, one of the world’s biggest retail groups, is boosting its purchase of Vietnamese goods. The group’s Walmart Global Sourcing vice president Bill Foudy said that after the establishment of a sourcing office in Ho Chi Minh City in June last year, “Walmart has been seeking opportunities to purchase goods in Vietnam to export to overseas markets under the upcoming Trans-Pacific Partnership Agreement (TPP).” “This is in line with the group’s strategy to expand its overseas business market,” Foudy told Minister of Planning and Investment Bui Quang Vinh in a meeting last week. “Walmart wants to strengthen its presence in Vietnam. We are pleased with Vietnamese goods. Our presence here will prompt other investors to come to Vietnam to do business. We will also provide local partners with technical assistance,” he said. Minister Vinh said Walmart’s presence in Vietnam would help the country lure more foreign business and investment partners. He said the government would provide the best conditions for the US group to perform its business in the country. Walmart’s International Corporate Affairs senior director Kevin Gardener told Vietnam Investment Review that “Walmart doesn’t have any retail operations in Vietnam and at present the firm doesn’t have plans to open stores in the country.” Walmart is sourcing goods from Vietnam through its new office. Gardner said the office would provide Walmart with an opportunity to better facilitate the identification and selection of suppliers while monitoring the manufacturing process to ensure compliance, safety and quality. Walmart sources clothing and footwear, entertainment, footwear, home appliances, toys and seasonal goods. The office employs 20 people and has relationships with numerous suppliers in Vietnam. “We are looking to establishing strategic relations with growers and economic groups, and having an office in Vietnam will enable us to do that more effectively,” Gardner said. At present, Walmart has many retails chains in North American, South American, Europe, Japan, India, China and Africa. Minister Vinh noted several major foreign groups like Walmart are seeking investment opportunities in Vietnam in anticipation of the TPP. Ministry cuts petroleum imports The Ministry of Industry and Trade (MoIT) has decided to reduce the petroleum import quota for this year to approximately seven million tonnes from the earlier 9.115 million tonnes. All of the 18 domestic firms eligible for petroleum imports saw a sharp decrease in the petroleum import quota compared with the level set earlier this year. Specifically, the Vietnam National Petroleum Corp (Petrolimex) received the largest import quota reduction from 5.18 million to 4.396 million tonnes. It was followed by PetroVietnam Oil Corporation (PV Oil), with 591,000 tonnes. Of note, PV Oil's petrol import quota was 27,000 tonnes, accounting for 10% of the initial assignment. Several firms such as the Aviation Petroleum Company, Namniet Oil Refinery and Petrochemicals Company, the Military Petroleum Corp (MPEC), and Dong Phuong Petroleum Company also saw their import quotas on mazut lowered to zero. Under the current regulations, petroleum importers will not be allowed to import below the assigned levels. Vo Van Quyen, head of the ministry's Domestic Market Department, told Vietnam Investment Review that the decreasing import quota was attributable to a reduction in petroleum demand or increase in the number of businesses buying petrol from Dung Quat Oil Refinery. Statistics from the General Department of Customs show that the country imported seven million tonnes of petroleum, with a turnover of US$6.6 billion, last year. In 2012, the import total amounted to 8.9 million tonnes. Economist Ngo Tri Long told the newspaper that the import quota was assigned to traders based on petroleum consumption in the previous year. However, Long said the import quota also depended on the economy, which is still facing difficulties. The petrol price stabilisation fund stood at VND170 billion (US$8.09 million) by the end of last year, said the Ministry of Finance. The ministry reported around VND100 billion (US$4.76 million) was added to the fund after retail petrol prices rose for a period of 20 days last month. Ten of the 17 petroleum wholesalers reported a balance of nearly VND600 billion (US$28.57 million). Of note, Petrolimex and MPEC, which have large market shares, showed a balance of VND135 billion (US$6.43 million) and VND308 billion (US$14.67 million) respectively. It was estimated that Vietnam consumed 1 million tonnes of petrol each month. Insurance industry to maintain growth After failing to grow by double-digits in 2013, the insurance market is expected to grow modestly this year, on the back of an economic recovery and stock market gains. The introduction of new products and the increased diversification of distribution channels are likely to boost growth as well. Hoang Viet Ha, chief operating officer of the Bao Viet Insurance group, said with economic growth forecast at between 5.4% and 5.6% this year, the insurance market is likely to maintain the growth rate of the previous year. The non-life insurance segment is predicted to expand by about 8%, while the life insurance segment is expected to increase by around 15%. Ha said the implementation of the voluntary pension insurance scheme and new products will stimulate life insurance services this year. In the non-life insurance segment, insurance providers will further diversify their distribution channels to spur growth. The industry is aiming for a more stable and sustainable growth rate and is determined to undertake restructuring measures, including reducing capital from non-core businesses, he was quoted as saying by Vietnam Investment Review. Luong Quang Ban, deputy director of PetroVietnam Insurance, said the insurance market in Vietnam could achieve double-digit growth this year, driven by an economic recovery and stock market gains. However, general director of the BIDV Insurance Corporation Ton Lam Tung told Vietnam Financial Times that 2014 will remain a difficult year for the insurance market and the non-life insurance segment, in particular, adding that double-digit growth would be a challenge. According to the statistics from the Insurance Supervision Authority, Vietnam has 59 insurance companies, which generated total revenues of more than VND45 trillion (US$2.15 billion), representing an increase of 10% over 2012. HCM City earns US$2 billion FDI HCM City attracted 477 new foreign direct investment (FDI) projects in 2013 with total investment capital of US$1.05 billion, up 9.4% in the number of projects and 76.72% in capital compared to the previous year. The municipal Department of Planning and Investment reports it also granted licences for 139 old projects with expanded capital of US$1.03 billion, up 16.81% and 33.13%, respectively. Thus, the city lured US$2.08 billion FDI capital, demonstrating an annual increase of 51.98%. In addition to old and new projects, 67 projects valued at US$436.78 million were moved to other localities or shut down and 20 others worth US$21.42 million temporarily ceased operation. The city has 4,924 FDI projects so far with total registered capital of US$33.5 billion. Singapore ranks first among foreign investors in the city, followed by Malaysia and the Republic of Korea. Binh Duong to have 31 industrial zones by 2020 The southern province of Binh Duong will have 31 industrial zones (IZs) covering a total area of 11,463ha by 2020 as part of a vision 2025 plan. Under the plan, the province will establish two high-tech IZs, the An Tay IZ covering an area of 100-150ha, and the Binh Duong Industry, Services and Urban Area Complex spread over 300ha. The province will also have 13 industrial clusters spanning 908.74ha by 2020, which will expand to 15 clusters by 2025. The clusters aim to focus on companies manufacturing building materials, high quality ceramics, as well as agricultural processing companies and ancillary industries. The target is to achieve average industrial growth (by value) of 8.6 percent between 2011-15 and 10%during 2016-20. Deputy PM lauds chemical sector success Deputy Prime Minister Hoang Trung Hai has hailed the chemical sector for its strong performance and important role in national socio-economic development, with an annual contribution of 8-10 percent to the country’s total industrial production value. Speaking at a conference to review the operation of the Vietnam National Chemical Group (Vinachem) held in Hanoi on January 11, Deputy PM Hai said the Party and State consider the sector a key industry and pay much attention to it’s development and efficiency. However, he also pointed out that despite its best efforts, the sector is yet to meet all of the country’s requirements. Therefore, more effective operations with a stronger organisational framework are needed to meet the demand of other industries and civil use. Technological renovation is also crucial, he said. Hai particularly lauded the group’s fine outcomes in fertilizer production. So far, Vinachem has met 70 percent of domestic need for fertilizers and shipped abroad a number of products such as urea. According to Vinachem Director General Nguyen Dinh Khang, in 2014 the group is targeting VND 48 trillion in production value, up 12.5 percent year on year, with revenue of over VND 44 trillion , a rise of 0.2 percent over the previous year. In 2013, Vinachem’s import-export value reached US$559 million, down 11.1 percent against 2012’s figure, including US$237 million of export value, a decrease of 3.8 percent. The group’s yearly profit was at VND2.73 trillion, while its budget contribution rose 13.9 percent at VND2.5 trillion. The group has also offered employment to 27,000 labourers who earn VND7.5 million on average every month. Vinachem’s main products include fertilizers, pesticides, household chemicals detergents and rubber products. 200 traditional goods trademarks honoured A January 11 ceremony in Hanoi has honoured a range of traditional product brands including Uoc Le pork pie, Trach Xa ao dai (traditional long dress), Dong Ky ceramics, and Chang Son woodcraft. Organised by Hanoians Newspaper and Health and Environment Magazine, the awards honour the nation’s skilled artisans and support traditional businesses in Hanoi, HCM City, Dak Lak, Binh Phuoc, Ben Tre, and Ba Ria-Vung Tau provinces. Bui Viet My, the Hanoians (Nguoi Hanoi) Newspaper Editor in Chief and head of the organising board, said the event also aims to preserve and promote the traditional cultures and identities within craft villages and streets. Continuing economic difficulties mean business efforts deserve special acknowledgement, My said. The event also provided artisans and businesses a valuable opportunity to meet, exchange information and experience, and promote their trademarks and products. Vietnam’s Czech export surplus hits US$384 million The Vietnamese Trade Office has reported two-way trade turnover between Vietnam and the Czech Republic surpassed US$500 million at the end of November 2013. In a recent announcement, officials specified Vietnam’s export surplus with the Eastern European market reached US$383.7 million, while its imports were valued at US$123.9 million—the first time exceeding US$100 million for many years. Vietnamese exports enjoying high turnover included seafood (US$10.5 million); coffee and spices (US$12.5 million); chemical products (US$14.1 million); plastic products (US$10.7 million); leather products (US$9.8 million); garments (US$35.1 million); footwear (US$84.2 million); engineering (US$41.5 million); electricity, electronics, music, and television (US$73.8 million); and engine vehicles (US$29 million). Vietnam’s imports were dominated by engineering (US$10.6 million); electricity, electronics, music, and television (US$73.8 million); military goods (US$10.6 million); crystal and glass (US$2.3 million); medical equipment (US$3.5 million); and toys and sports equipment (US$3.2 million). The impressive bilateral trade value increases in 2013 have fuelled hopes for flourishing Vietnamese-Czech economic relations in the near future. Challenges facing HCM City in 2014 Ho Chi Minh City acknowledges meeting its 9.5–10% economic growth targets - 1.5 times the national average - will be challenging in 2014. Although HCM City undershot its 2013 targets, the 9.3% growth rate was still 1.7 times higher than national averages. It speaks to the city’s efforts in economic restructuring and growth quality improvement. The targets for 2014 require both major policies and small adjustments to remove difficulties restricting businesses and to develop production. Thai Tuan Group General Director Thai Tuan Chi says the Trans-Pacific Partnership Agreement (TPP) will benefit the garments industry, with export earnings anticipated to reach US$50 billion. But Thai Tuan Group and the sector as a whole are still examining issues related to the agreement in conferences and seminars. Most businesses have yet to acquire the necessary knowledge regarding the TPP and the Vietnam-Japan Agreement. Only a minority of the city’s labour force is professional, requiring an effective human resource training strategy. Chi thinks the city should fund consultancy centres with experts dispensing advice on business restructuring, cooperative strategies in competitive environments, human resources, and indirect investment flows. Improving human resource training is one of six priority breakthroughs the Party Central Committee identified for the 2011–2015 period but results have disappointed. HCM City recognizes the importance of capital and market access to local businesses. Credit organisations should also actively engage in addressing persistent issues. Last year, the city helped commercial banks overcome their difficulties—now they must respond in turn. By the end of 2013, the city had linked banks with businesses in 24 districts and provided them with loans worth VND13 trillion. Municipal People’s Committee Vice Chairwoman Nguyen Thi Hong confirms the business-bank linking initiative was actively implemented. The city also brought small traders and Sacombank together, providing VND1 trillion in loans. The city continues to promote trade both at home and abroad. Authorities have kept export businesses informed regarding emerging market opportunities. They have supported business attempts to expand domestic distribution, retail, and wholesale networks, aiming for a 15% increase in retail trade from 2012 levels. The city will correct tax issues and allocate land tax revenue to the municipal budget and investment in production. ODA will also be used efficiently. The city’s 2013 demand stimulus program disbursed VND3,192 billion to 90 projects. This year’s focus turns to four key industries: food processing, chemicals and rubber, engineering and electronics, and information technology. Party Committee Secretary Le Thanh Hai Party Committee Secretary Le Thanh Hai urged the relevant agencies to attend to support industry development and ensure the quality of growth. The city must support its businesses in terms of capital, human resource quality, and science and technology. 2014 will be pivotal to fulfilling the municipal Party Committee’s 2011–2015 socio-economic and cultural development plan. Dynamism and creativity are essential, Hai notes. Top 50 recruiters announced A ceremony announcing Vietnam’s best 350 recruiters unfolded in Hanoi on January 10. Awardees were ranked in terms if recruitment success and incentives secured for workers. Vietnam Rubber Industry Group topped the list, generating more than 130,000 positions with a VND9 million average monthly wage and employing approximately 30,000 ethnic minority workers Vietnam Oil and Gas Group followed closely by generating 60,000 jobs with average monthly incomes approaching VND20 million. The Post and Telecommunication Group ranked third, creating 50,000 jobs with an average monthly income of VND10 million. FPT’s 15,000 created employment vacancies helped it lead the private sector listings. Labour-Society Magazine Deputy Editor-in-chief Tran Ngoc Dien said the rankings are reviewed annually to of encourage businesses to offer their workers the best possible conditions. Steel Corporation boosts production in 2014 The Vietnam Steel Corporation has set a target of producing nearly 1.5 million tonnes of billet steel and 2.6 million tonnes of rolled steel in 2014, year-on-year increases of 24.5% and 8%, respectively. The corporation will also promote its restructuring, focusing on equitization. Nguyen Manh Quan, Head of the Department of Heavy Industry under the Ministry of Industry and Trade (MoIT) predicted that the steel industry will continue coping with fierce competition this year, especially once Vietnam joins the Trans-Pacific Partnership (TPP). The Corp should define strategies and map out specific plans to meet the every eventuality, he stressed. In 2014, MoIT will also introduce measures solving difficulties facing the sector. It will work with the Ministry of Finance to help enterprises access more capital to promote their production and business. Last year, the sector faced difficulties due to strongly decreasing demand for construction steel and steel enterprises had to compete with those from China. Due to the low demand, steel producers had to reduce production. Total billet steel and rolled steel last year only equaled to 92.4% and 95% of the plan set for the year, respectively. Prospects for Vietnam-Algeria cooperation Vietnam and Algeria will increase cooperation in various areas to fully tap their available potential. The areas of cooperation include trade and investment, labour and vocational training, seafood, information and communication technology, housing and urban development, transportation, and judiciary. The terms of the agreement were finalised during the tenth session of the Vietnam-Algeria Inter-Governmental Committee in Hanoi on January 8-10. Both sides agreed to examine the possibility of signing cooperation agreements concerning health, education, culture, tourism, sports, and other areas of mutual concern. They pledged to facilitate the successful Algerian operations of the Vietnam-Algeria oil and gas joint venture. Minister of Construction Trinh Dinh Dung, who co-chaired the meeting, noted an agreement between the Vietnam News Agency and Algerie Presse Service that will establish an official information-sharing channel between the two countries. The news exchanges will deepen mutual understandings of the Algerian and Vietnamese peoples, he said.   The committee’s closing session witnessed the signing of additional vocational training agreements involving the Vietnam-Algeria Trade Promotion Agency, Vietnam’s Ministry of Labour, Invalids, and Social Affairs, and the Algerian Ministry of Training and Vocational Training. Algerian Minister of Industry Development and Investment Promotion Amara Benyounes expressed delight at the results of the tenth session and affirmed its role in propelling the bilateral relationship to new heights. Algeria will host the 11th session of the committee in 2015. Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR