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BUSINESS
IN BRIEF 25/3
GSO statistics show
exports rose 26% to US$12 billion and imports jumped 22% to US$12.3 billion.
Major export items
which experienced a sharp increase compared to last month included garment
and textiles (US$1.6 billion, up 53%), mobile phones and spare parts, (US$2
billion, up 16%), and electronic products (US$850 million, up 37%).
Other export
products like rubber and chemicals maintained stable growth. Several
traditional export commodities, namely rice, seafood, and coffee, saw
relative high growth.
The sharp rise
testifies to the fact that Vietnam grasped opportunities available from its
main export markets, such as the US, Japan, and the European Union that have
started recovering from the crisis.
Electronic
components and machinery equipment topped the list of import items, with over
US$1 billion spent on each group. Fabrics and petroleum imports increased by
24% and up 31% respectively.
The country’s total
export earnings were estimated at US$33.346 billion in the first quarter of
the year, and imports were US$32.339 billion.
Thus,
The foreign
business sector still plays a pivotal role with a trade surplus of nearly
US$4 billion, while domestic enterprises faced a trade deficit of nearly US$3
billion.
Great
potential for Vietnamese fruitful exports to Japan
Last year
In recent years,
Vietnamese exports to
Japan is considered
a promising market for Vietnamese fruit exporters as the country imports more
than a half of its fruit and vegetable consumption volume (worth US$3.2
billion) annually.
There’s an
increasing demand for exotic fruits such as banana, pineapple, pawpaw, mango
and avocado on the Japanese market, the MoIT reported, adding that Vietnam
possess a huge advantage in producing these tropical fruits.
It’s worth noting
that since
Local fruit
exporters are demonstrating a keen interest in shipping fruits to
KoshidaRyu, an
agricultural expert from the Japanese International Cooperation Agency
(JICA), said the Japanese market is opening up for a variety of Vietnamese
fruits, especially longan, rambutan, and star apple.
He also suggested
local exporters should promote marketing programmes in
Vietnam Customs
statistics show that
The sharp rise of
Vietnamese fruit exports to
A number of
Vietnamese fruits have secured a firm foothold in
However, local
fruit exporters are facing tough competition from strong rivals like
Moreover,
It is essential to
diversify export items, particularly tropical fruits and vegetable such as
banana, pineapple, avocado, orange, lemon, pomelo, onion, ginger, carrot and
pepper.
Local businesses
should also pay more attention to meeting requirements for environmental
protection and food hygiene to make further breakthroughs in export growth of
the Japanese market in the future.
Lao company
markets coffee in Vietnam
The deal comes as
part of a co-operation programme between
Dao-Heuang exports
its Dao Coffee to many countries like
It will now, in
turn, distribute Blue Star's confectionery and other products in
Leuang Litdang,
chairwoman of Dao-Heuang Group, said her company plans to tie up with
Vietnamese partners to expand its business and production in
If the plan
succeeds, it will be the first Lao company to invest in
Since setting up
the co-operation programme in 2001,
This has made
Trade and economic
ties between
Norwegian
businesses expect to increase fisheries cooperation with Dong Thap province
and introduce its seafood to the Norwegian and European markets following a
March 22 visit.
A delegation from
the Norwegian Ministry of Trade, Industry and Fisheries, led by its Deputy
Minister Amund Dronen, made a fact-finding trip to Vinh Hoan Corporation, one
of
They learned about
the company’s processing procedures and technology to ensure its products
meet international quality standards for export.
They also had a
working session with leaders of the provincial People’s Committee to examine
the possibility of bilateral cooperation.
Dong Thap’s Tra
fish farming area covers nearly 2,000 hectares and generates an output of
386,000 tonnes per year, taking the national lead for Tra fish processing and
production.
Provincial leaders
expressed hope that
In response, Amund
Dronen spoke highly of cooperation between
He also affirmed
his trust for the long-term commitment between the two sides.
Currently, the
Norwegian Agency for Development Cooperation (NORAD) is funding
The change
represents a continued and significant deceleration after the deficit peaked
at US$1.7 billion in 2008.
Apart from the
traditional exports, including pepper, rubber and footwear, more and more
Vietnamese products with higher added values were shipped to
Leading economists
attribute the higher added values as the most important single factor
contributing to the much improved trade deficit and expect to see this trend
in the future.
In addition,
A Vietnam-India
Joint Sub-Committee on Trade was established and successfully held its first
meeting in
European
meat producers eye
The European Meat
Alliance launched a communications campaign in
The campaign,
launched in
It aims to promote
the export of European meat and related products, and deepen consumer
understanding of the products’ quality, flavours, and production procedures.
It offers meat
importers, distributors, traders, and meat producers in
HCM City
desires for enhanced cooperation with Norway
At a March 21
reception for visiting Crown Prince Haakon Magnus and Princess Mette Marit,
Quan voiced his confidence that their trip will usher in a new period of
development in bilateral ties.
For his part, the
Norwegian Crown Prince Magnus told his host that
The Norwegian Crown
Prince witnessed a cooperation signing ceremony between the MARD and
He suggested both
nations should further push up their cooperation in the maritime industry,
hydroelectricity, information technology, communications and industry.
The same day, the
Norwegian Crown Prince and Crown Princess along with a business delegation of
130 members joined a meeting between Vietnamese and Norwegian entrepreneurs
in
Attendees said that
the conclusion of Vietnam-Norway and Vietnam-EU Free Trade Agreement (FTA)
will create a good opportunity for Vietnamese and Norwegian businesses to
increase bilateral cooperation and establish a trade partnership.
Deputy Minister of
Industry and Trade Ho Thi Kim Thoa said Vietnam-Norway economic and trade
cooperation has seen positive developments over the past years with last
year’s two-way trade turnover reaching US$240 million. However, the figure is
still far from matching their full potential.
Therefore,
businesses should stay active in exploring each other’s market and set up
more cooperative relations thus paving the way for both nations to promote
economic, trade and investment cooperation, Thoa added.
In his statement,
HCM City People’s Committee Vice Chairman Le Manh Ha described the meeting
between business representatives as testimony to the two nations’
determination to bolster bilateral economic and trade links in the time
ahead.
The Crown Prince
also witnessed the signing of a cooperation document between the Vietnam
Ministry of Agriculture and Rural Development (MARD)’s Animal Health
Department and
The Vietnam
Association of Seafood Exporters and Producers (VASEP) has sent a letter of
inquiry to the Directorate of Fisheries to regarding the issue.
Earlier, Vietnamese
shrimp was listed in
The association has
updated the information and asked local shrimp businesses to strengthen
self-regulation of antibiotics in shrimp, especially the two mentioned
substances.
VASEP has been
asked to supervise and strengthen control over input materials and encourage
businesses and shrimp breeders to better self-regulate the two substances
effectively.
450 firms
register for VIETBUILD 2014
As many as 450
businesses have registered to join VIETBUILD 2014 – an international
exhibition on real estate, interior and exterior design, and construction
materials – to be held in
At a press
conference in the capital city on Mach 21 officials said the registrants
include 214 from Vietnam and 175 joint ventures and 61 foreign firms from
China, the Republic of Korea, Japan, Malaysia, Thailand, Singapore, the Czech
Republic, the US, Germany, Indonesia, and Taiwan.
They will showcase
their latest products through more than 1,350 pavilions, with a focus on
interior equipment and designs.
Several banks will
also take this opportunity to introduce credit services for real estate
projects.
In the context of
the economic downturn, VIETBUILD 2014 is expected to bolster export promotion
and construction investment activities.
Another
Amway factory shaping up in Binh Duong
Amway Vietnam Co,
Ltd under the auspices of US Amway Corporation officially broke ground on
construction of its second factory in
With an initial
investment of over US$25 million, the factory located in the Vietnam-Singapore
Industrial Park (VSIP) in Tan Uyen district in the southern Binh Duong
province, will be built on an area of nearly 55,000 square metres.
The facility is
seven times larger than its first one located in Bien Hoa City-based
The new factory
will produce differing types of vitamins and mineral nutrients and dietary
supplements with three production assembly lines with an annual capacity of
over 23 million products worth US$200 million per year.
In the context of
the global economic downturn, the investment in the Vietnamese market through
the transfer of advanced knowledge will contribute to the country’s
modernization and industrialization process and give a fresh impetus to local
economic development.
Amway
Amway CEO Doug
DeVos said that since 2008, Amway
Logistics
sector urged to improve competitive edge
Roughly 400 leading
logistics firms attended - 2014 Logistics Forum – held in
Famous businesses
at the event included DHL Supply Chain, Loscam, Interroll, Schaefer SSI,
Ascendas-Protrade, Mapletree, Nestle, Coca-Cola, Big C, Unilever, Metro Cash
& Carry, and Geodis Wilson.
The event aims to
create a multi-dimensional viewpoint in assessing opportunities and
challenges of
According to a
World Bank (WB) report on the logistics sector released in January 2014,
The report noted
that corruption and poor infrastructure have also plagued the development of
the sector.
At present,
To sharpen
Australian
cattle exports to
This year,
In March 2014, an
Australian delegation of government officials and businesses led by Northern
Territory Minister for Primary Industry, Willem Westra van Holthe toured a
number of cattle breeding farms and slaughtering houses in
Chief executive of
the Northern Territory Livestock Exporters Association, Ben Hindle, said
Vietnamese importers have heavily invested in infrastructure development for
cattle breeding farms and slaughtering sites.
Hindle forecast
that
Dragon
International awarded US$100 billion projects
Ho Tram Tourism
Company of
This was announced
by Ho Tram Company Director General Nguyen Quoc Long, saying the projects
worth US$100 billion will be implemented following the public private
partnership (PPP) model.
The first project
aims to construct a trade complex that includes hotels, residential areas,
and an international convention hall on 58 ha in
The second project
is to develop an international eco-tourist resort on an area of 1,595 ha in
Xuyen Moc district of southern Ba Ria-Vung Tau province, with a total
investment of US$18 billion.
In addition, Ho
Tram and Dragon Best International have also contracted to construct a US$50
billion project in the Bo Y border economic zone in the Vietnam-Lao-Cambodia
development triangle.
The three above
projects had previously been given the green light to proceed by the
Government.
Local firms
to lead drug market
The latest
development plan for the pharmaceutical industry sets ambitious targets that
can create growth opportunities, but could also prove difficult for local
firms to achieve, experts say.
They told Viet Nam
News that the plan's feasibility would depend on follow up support policies
from the Government.
A prominent target
in the plan is to have medicines made in
The plan also
targets having 30 per cent of the locally made drugs use traditional
materials.
The "National
Strategy for Pharmaceutical Industry Development till 2020 with a vision to
2030" was approved recently by the Prime Minister.
Other targets
include ensuring 100 per cent supply of medicines needed to prevent and treat
diseases, and meeting 20 per cent of materials demand for locally produced
medicine.
The plan also seeks
to have locally-made vaccines meet the needs of the National Expanded
Programme for Immunisation as also 30 per cent of the demand for paid
vaccinations.
Officials say the
plan is a positive one for the domestic pharmaceutical industry as also disadvantaged
sections of the society, especially the poor and people living in remote and
mountainous areas.
"The strategy
aims to provide sufficient, safe medicines at reasonable prices to meet the
country's demand for disease prevention and treatment," Truong Quoc
Cuong, director of the health ministry's Drug Administration of Viet Nam,
told Viet Nam News.
"Priority
would be given to supply medicines for social welfare policy beneficiaries,
ethnic minorities and poor people in mountainous and remote areas," he
said.
Cuong also said
that the pharmaceutical law will be revised with a focus on encouraging the
production and use of locally manufactured medicines through standardisation
of trading rules and application of good practice standards.
Policies to promote
research, production, import and export of essential medicines will be issued
as part of the efforts to provide high-quality medicine at reasonable prices,
he said.
Cuong said the
country's pharmaceutical industry would be developed with a focus on production
of generic medicines. Imported drugs would, step by step, be replaced by
locally produced ones, he added.
"Policy
priority will be given to the production, supply and use of generic
medicines, specific drugs, vaccine and biological products and drugs from
traditional medicine materials. Import of pharmaceutical materials and
generic medicine would be limited for medicines produced in the
country."
The Government will
also support the use of locally manufactured medicine with funds from the
State Budget and through health insurance schemes, he said.
Le Thuy Linh, a
housewife in Ha Noi, said she was happy with what she had heard about the new
plan because it would benefit many people, especially those in rural areas.
"I hope that
everybody will be provided sufficient medicines at reasonable prices and with
good quality instead of imported ones at cut-throat prices," she said.
Several
pharmaceutical experts said that some targets mentioned in the plan would be
difficult to achieve.
They said an
increase of more than 30 per cent in the country's total medicine consumption
within the next seven years presents a tall order for local drug companies.
Local firms would
find it tough to expand their market share, increase product quality,
establish trademarks and compete against imported products, the experts said.
The Health Ministry
has acknowledged that the local pharmaceutical industry faces a lot of
disadvantages in competing with foreign companies because of modest capital
resources at their disposal, a shortage of pharmacists and outdated
technology.
Studies have also
noted that domestic investment in pharmaceutical research and development is
miniscule and medicines are mostly produced using imported materials.
Industry insiders
are ambivalent about the strategy, with some skeptical about its feasibility
and others optimistic about development opportunities.
Traphaco JSC
General Director and Chairwoman Vu Thi Thuan told Viet Nam News that the
strategy would boost development of local firms thanks to the Government's
support in terms of policy and financial resources.
"International
experience shows that there is no country except
Thuan also said
that consumers would decide the fate of the strategy through the choices they
make.
"Success of
the strategy would depend on a change in Vietnamese people's awareness and
belief in local medicine which, in turn, would depend on the success or failure
of the programme encouraging Vietnamese people to use drugs made in the
country."
Chairman and CEO of
the Hau Giang Pharmaceutical Company, Pham Thi Viet Nga, said that the
strategy was a very good sign for local pharmaceutical firms.
"However, its
feasibility would depend much on the government's future policies for
supporting local drug firms in competing with foreign companies," she
said.
Nga said local
pharmaceutical firms have the daunting challenges of the people's lack of
confidence in locally manufactured medicine and unfair competition between
themselves. The Government also limits local firms' spending on promotion,
she said.
Cuong of the Drug
Administration of Viet Nam agreed that implementing the strategy effectively
would be a challenging task, especially in the perfecting of mechanisms,
policies and master plans so that achievements can be sustained and
investment in the industry increased.
The country also
faced a shortage of human resources and the limited investment and research
capabilities of local firms, he said.
Health Ministry
statistics show that
In 2012, the value
of locally manufactured medicines made up 46 per cent of the nation's total
consumption.
"They (local
drug firms) would have to work hard to increase output in order to account
for 80 per cent of the country's total medicine consumption and 100 per cent
of vaccines for the immunisation programme," Cuong said.
He said planners
had made an effort to ensure that the strategy's targets, solutions and
measures were realistic, adding that although it would take a lot of effort,
they were achievable.
Ben Tre
enlarges specialty grapefruit area for export
Foreign demand for
green-peel grapefruit hailing from the Mekong Delta
Dam Van Hung, Vice
Chairman of the Ben Tre Green-peel Grapefruit Association, said the product
has been exported to
However, the output
of grapefruit meeting Global Good Agricultural Practice and Vietnam Good
Agricultural Practice (VietGAP) standards remains modest – standing at about
100 hectares of total 4,000.
Satisfying such
requirements is compulsory for exports, Hung noted.
To ease the
problem, in the short term, the business circle and the provincial Department
of Agriculture and Rural Development plan to cultivate 200 hectares of
green-peel grapefruit following VietGAP standards.
The harvested
products will be bought at prices that are 5-10 percent higher than market
prices, Hung said.
Ben Tre ranks first
in terms of its green-peel grapefruit area and output in
An Giang
boosts cooperation with Japan
Officials of
southern An Giang province and agricultural experts from
At a March 21
working session between local officials and a delegation from the
Particularly, the
province has shipped its products to 139 countries around the world, with an
annual volume of 500,000 tonnes of rice and 100,000 tonnes of fish.
As many as 83
co-operatives in the locality have helped meet its key importers’ demand for
farm produce.
JA-Zenchu President
Hitomi Narikiyo said his union is willing to aid An Giang in managing its
co-operatives, internal credit systems and farm produce tracking.
Since 1997, the
Japan International Cooperation Agency (JICA) has supported the Mekong Delta
province implement 20 projects valued at 31 billion VND (1.46 million USD) in
the fields of health, education, clean water, environmental sanitation and
especially rice export.
Lao Cai aims to drive northwestern development
The mountainous
The locality has
been working to perfect facilities developing the Lao Cai Border Gate
Economic Zone, which covers nearly 8,000 ha.
A total of 4
trillion VND (188 million USD) has been poured into key infrastructure
projects such as
Cross-border trade
growth will be further boosted once the construction of the
As part of the
Last year,
cross-border trade turnover with
According to
reports released by the management board of Lao Cai’s border gates, 521
businesses registered to fulfil customs formalities there. Key exports
included minerals, agro-forestry products, footwear and furniture.
Lao Cai will
continue to tap its favourable waterway, rail and road links in order to
further enhance cross-border trade, turning it into an important driving
force in the development of the northwestern region.
EVN works
to meet southern need for power
The Electricity of
Vietnam (EVN) is taking all possible measures to ensure a stable power supply
for the south with the dry season in the region climbing to its peak.
EVN Southern Power
Company (SPC) Deputy General Director Pham Ngoc Le pointed out that only two
turbines of the Vinh Tan No. 2 thermal power plant will become operational in
the south this year, with a total capacity of 1,200 MW.
Meanwhile, power
grids in regional provinces such as Binh Duong, Binh Thuan, Ba Ria-Vung Tau,
Dong Nai and Long An are overloaded while the construction of some 220kV
substations and lines is lagging behind schedule.
The EVN said to
satisfy the south’s power demand in 2014, particularly during the dry season
peak in April and May, the group will quicken work on such major thermal
power plants as Duyen Hai 1, Duyen Hai 3, Vinh Tan 2 and Vinh Tan 4.
It has also
assigned the Southern Grid Company to overhaul the 110kV grid’s operation,
and told other subsidiaries to check electricity demand and prioritise
anti-drought and disease prevention activities along with political and
social events.
They have also been
asked to make full use of small-scaled hydropower plants in southern Binh
Phuoc, Ba Ria-Vung Tau, Soc Trang and Tay Ninh provinces and the neighbouring
central and Central Highlands localities of Ninh Thuan and Lam Dong.
Additionally, Prime
Minister Nguyen Tan Dung has ordered the power sector to swiftly complete
north-south transmission lines. Those linking Pleiku, My Phuoc and Cau Bong
and Vinh Tan, Song May and Tan Dinh are of particular importance to tackle
the power problem.-
Phu Yen
province calls for investment to agriculture
The central
The projects cover
the processing and exporting of tuna, fishery logistic service centres,
salt-making zones, and high-tech agricultural facilities, said Pham Dinh Cu,
chairman of the provincial People’s Committee.
Valid for 50 years,
they will enjoy such incentives as lower land rent and corporate income tax.-
High risks
of mobile cyber attacks in Vietnam
The risks of
hackers attacking mobile devices in
In a report
concerning cyber security released at Security World 2014 held in
The workshop was
organized by the Ministry of Public Security’s General Department of
Technology, Vietnam Computer Emergency Response Team (VNCERT), the Center for
Technology and Cyber-Security Surveillance and International Data Group
(IDG).
Trend Micro noted
that Android now is available in many smart devices of Samsung, Asus and
others.
Experts from Cisco
and Huawei referred to a series of cyber attacks in the world causing heavy
damages to call on
Statistics by IDG
showed that spending on information technology in
Vietnam
bond issues grow fastest in East Asia
Vietnam took the
lead in bond issue value growth among emerging markets in East Asia in the
fourth quarter of 2013, according to a quarterly report on the Asian bond
market released by the Asian Development Bank (ADB) on March 20.
The market set a
new record with the highest growth rate of 14.8%, reaching US$29 billion. The
government bond market increased 15.4% to US$28 billion while the corporate
bond market fell 6.8% to US$700 million, the lowest in four years.
ADB noted the real
size of the corporate bond market might be larger than the figure as a volume
of bonds was traded privately between enterprises and banks.
However, the amount
of bonds of Vietnam was still smaller than regional countries.
According to the
report, the government bond value of Thailand had amounted to US$124 billion
as of the end of the fourth quarter, Malaysia US$58.5 billion, the Philippines
US$88 billion and Singapore US$150 billion.
Northern
apparel firms to benefit from Better Work
The Better Work
program aiming to boost productivity and competitiveness of the apparel
industry will be extended to the northern region after a quarter of southern
enterprises have benefited from it.
Deputy Labor
Minister Pham Minh Huan told the launch ceremony of Better Work Vietnam
office in Hanoi on March 19 that as the country is pushing for international
integration, made-in-Vietnam products must meet the requirements of customers
in choosy markets such as the U.S., EU, and Canada among others
Accordingly, the
program will provide textile and garment firms with three integrated service
packages to make their working environment more suitable to demands of importers.
These include assessing and setting up database on factory conditions, giving
information and advice on improvement and technology, and offering guidelines
and training on essential affairs.
In the next five
years, the program is also expected to extend its assistance to footwear and
leather industry due to fast growing demands from foreign companies and
clients.
The Better Work
initiative has approached nearly 300,000 workers in 200 plants, mainly in the
southern region, equivalent to a quarter of the total number of factories in
Vietnam since it first came up in 2009. Additionally, more than 50
international clients have registered for this program.
Chief of
International Labor Organization (ILO) in Vietnam Gyorgy Sziraczki noted the
program can help Vietnam win more orders in the textile and garment industry
from importing countries.
Vietnam can make a
difference in international markets because of its low labor costs, respect
for workers’ voice, improvement in the work environment and productivity
enhancement, he added.
Assessments of
Better Work Vietnam indicate the stable growth in participating plants. There
were three out of five have increased their workforces while as much as 65%
of them have raised their sales and 75% earned more orders.
Viet Tien
tops apparel industry
The Ministry of
Industry and Trade in collaboration with the Vietnam Textile and Apparel
Association (VITAS) on March 20 announced winners of the eighth Typical
Enterprises Awards in the textile and garment industry program.
Viet Tien Garment
Joint Stock Corporation (Viet Tien) and Dong Xuan Knitting Company topped the
list of winners for the 2010-2013 period.
Le Tien Truong,
vice chair of VITAS and deputy general director of the Vietnam National
Textile and Garment Group (VINATEX), said Viet Tien has met criteria on
business efficiency, competitiveness, and export growth.
The company heaps
praise for ensuring a good working environment such as eight-hour work per
day, average salary at VND6 million in HCMC and VND5.5 million in other
areas.
Other top apparel
enterprises winning the awards also include Dong Xuan Knitting Company, Phong
Phu Home Textile Joint Stock Company, Thanh Cong Textile-Garment Investment
Trading Joint Stock Company and Hue Textile Garment Joint Stock Company, and
Corporation No. 18.
The award program
is an annual event jointly organized by the Ministry of Industry and Trade,
Vietnam’s Chamber of Commerce and Industry and VITAS. In order to guarantee
continuous and sustainable development, the results are based on three years
of operation.
The award ceremony
is scheduled for March 24 at Hanoi’s Opera House.
Realty
inventory drops nearly 2%
The domestic
property market saw its inventory decreasing by VND1.77 trillion, or some
1.87%, in the first two months this year, the Ministry of Construction said
in a report just submitted to the Government.
Statistics from the
ministry show that the total value of realty inventory reached VND94.5
trillion, or US$4.5 billion, at the end of 2013. Now it has dropped to
VND92.69 trillion by February 25, 2014.
The backlog of
housing land represented the largest proportion, at VND33.88 trillion worth
of over 9.1 million square meters, while land for commercial facilities
accounted for VND6.2 trillion worth of over two million square meters. The
number of unsold apartments and houses was recorded at 19,210 units worth
some VND28.58 trillion, and 13,516 units worth VND24.03 trillion
respectively.
By February 25 this
year, the total inventory in Hanoi and HCMC reached VND12.6 trillion and
VND16.71 trillion, falling by VND369 billion and VND755 billion respectively
compared to end-2013.
Concerning the
results of the VND30-trillion housing loan program, Minister of Construction
Trinh Dinh Dung said banks have pledged to loan 3,048 clients a total of
VND2.9 trillion. Outstanding loans of VND1,322 billion have been disbursed to
3,023 of them, a rise of 64% against end-2013.
Even though the
property market is in a slight recovery, it is still mired in difficulties
such as high inventory, lack of synchronous infrastructure, high costs for
the locals’ income, and unfinished projects.
In order to tackle
the issues, the ministry has recommended the Prime Minister to amend
regulations related to the VND30-trillion package. Payment will be extended
to 15 years instead of 10 for individuals.
Those who live in
frequently disaster-prone areas in the coastal central region should also get
access to loans with interest rates of 4%.
Based on the State
Bank of Vietnam’s suggestion, some other commercial banks should be permitted
to join the VND30-trillion package apart from the initial five banks chosen
and approved by the Government, the ministry added.
Clean
vegetables account for little in market
The program to grow
clean vegetables has been launched for ten years but the product now accounts
for only 7-8% of the total vegetables output in the market due to consumers’
confusion over what products are really clean, said the agriculture ministry.
Nguyen Thi Xuan
Thu, deputy minister of agriculture, said at a seminar in Hanoi on Tuesday
that after ten years, the area under clean vegetables cultivation accounts
for only 1-2% of the total in the country.
Growing clean
vegetables now faces many difficulties, especially in the procedure of
getting certificates, building brand names, the process of monitoring,
testing and distributing the products, Thu said at the seminar on Vietnam’s
standards Good Agriculture Practice, or VietGAP.
“It is now hard to
distinguish between clean vegetables that are certified with those that are
not, and customers have lost their faith and walked away from the product
although they are still willing to pay higher for the qualified one,” she
said.
Nguyen Thi Kim
Oanh, head of business of the Hanoi Safety Food and Vegetable Trading Floor,
said due to shortcomings in management, the vegetables market in Hanoi and
Vietnam in general is now very confusing.
It is almost out of
control to manage the origin and quality of vegetables in the market, even
with those sold in supermarkets where quality is usually better assured, said
Oanh.
“The situation has
caused customers to lose their faith, and when a clean vegetables producer
presents their product, even with guarantee for its quality, they still don’t
believe it,” she said.
“Demand for clean
vegetables which meet VietGAP standards is still large, but the number of
VietGAP vegetables produced and sold in the market is small, and farms that
grow vegetables following the standards have not developed as being
expected,” she said.
The head of the Dai
Lan Cooperative in Hanoi City’s Thanh Tri District said his cooperative now
has more than 20 hectares of land growing clean vegetables observing VietGAP
standards but is facing many difficulties in distribution and consumption.
Dealers signed
contracts to buy clean vegetables but just cooperated for 1-2 months and
quitted due to low consumption as prices of vegetables produced by his
cooperative are 15-20% higher than prices for normal veggies.
HCM City boosts
price stabilization
The amount of some
major products including milk, education products and essential food items
under the city’s price stabilization program will increase by 25-30% this
year compared to 2012, according to the city’s Department of Trade and
Industry.
In its draft
program just submitted to the city government approval, the department says
the volume of such products will account for a big market share. The price
stabilization program is carried out in the city from April 1, 2014 to March
31, 2015.
For milk,
participating enterprises have pledged to keep prices stable unless input
costs change sharply by 5% to 10%. They will supply various types of milk
amounting to 2,787 tons for this year, up 26.3% over last year and accounting
for some 40% of the demand in the city.
Essential food
items listed in the program this year include nine groups of products. They
are rice and instant noodles, sugar, cooking oil, meat and egg, processed
food, vegetables and seafood.
The amount of those
food items increases by 30-35% over last year and accounts for 25-30% of the
demand.
Normally, prices of
those products in the price stabilization program will be lower than market
prices by 5-10%. In the month ahead of the Lunar New Year, or Tet, these
products should account for 30-40% of the market demand.
Three groups of
education products in the price stabilization are notebooks, school bags and
uniforms. These products will make up 32.9-65.4% of demand with prices some
10-15% lower than market prices.
As regulated,
enterprises selling stable price products are only allowed to raise prices
upon approval of the city authorities when there is a surge in input costs.
This year, the
city’s stabilization price program continues to use soft loans supplied by
participating banks instead of using the city’s budget.
The number of
companies and banks joining the program, which is also open to enterprises
outside HCMC, is expected to be higher than that of last year.
Enterprises
advised to prepare for FTA with EU
Speakers at a
seminar in Hanoi on March 20 urged enterprises to quickly prepare themselves
for the new opportunities to be ushered in by the free trade agreement (FTA)
between Vietnam and the European Union (EU) which will be concluded this
year.
When the pact takes
effect, there will be over 90% of Vietnam’s products exported to the EU
enjoying zero tax and trade flows between the two sides will increase by
30-40%, they said at the seminar on Belgium’s Wallonie region in Hanoi.
Enterprises should
proactively learn about benefits and relevant information from the Vietnam
Chamber of Commerce and Industry as well as from partners like the Wallonie
Delegation and the Belgian Embassy to Vietnam, they said, adding the Belgian
region can act as a gateway to the European market for Vietnamese firms.
Le Ky Anh, trade
and economic officer at the Delegation of the EU to Vietnam, said Vietnam and
the EU have set a target to conclude negotiations on the trade pact in
October when Prime Minister Nguyen Tan Dung visits Europe and attends the
Asia-Europe Meeting. Nevertheless, it seems that enterprises do not know much
about benefits of the FTA.
Anh said that the
current tax rates Vietnam is enjoying mainly originate from the Generalized
System of Preferences (GSP) the EU unilaterally offers to Vietnam. However,
when Vietnam’s economy grows to a certain level and is more competitive, the
EU will gradually remove such incentives.
FTA will bring
better market access and more incentives compared to GSP with the zero tax
rate on at least 90% of the products, Anh stressed.
According to the EU
Delegation to Vietnam, trade flows between Vietnam and the EU will rise by
30-40%. Besides, the EU has surpassed the U.S. to become Vietnam’s biggest
importer, accounting for an average of 20% of Vietnam’s total exports.
Goods benefiting
the most from FTA are Vietnam’s traditional products such as farm produce,
apparels, footwear and seafood products.
Once FTA becomes
effective, a strong flow of investment from the EU will also run into Vietnam
and domestic enterprises can benefit from advanced technology and huge
capital sources.
Besides, the EU’s
target is not only in the Vietnamese market but also in ASEAN and if the FTA
is signed, it means the EU finds a place for boosting production activities.
“If goods made in
Vietnam can enjoy incentives when exported to the EU, other investors in
ASEAN will think of Vietnam as a new production base,” he added.
According to
experts, these are visible and tangible benefits Vietnam can receive from the
agreement.
The Belgian
government plans to offer many incentives concerning land, capital and
equipment to enterprises of ASEAN countries to open offices in the Wallonie
region to get access to the EU market.
According to the
Foreign Investment Agency, Vietnam has had 815 overseas investment projects
with total registered capital of over US$18 billion, but 40 of them are in
the EU market with US$110 million (1%).
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Hai, 24 tháng 3, 2014
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