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BUSINESS
IN BRIEF 7/3
Strong
inflow of FDI forecast to continue
The strong flow of
foreign direct Investment (FDI) into
The forecast was
made by leading economists and business professionals during an online
discussion recently held by the newspaper Bizlive.
Vietnam Association
of Foreign Invested Enterprises (VAFIE) President Nguyen Mai said that global
economic recovery is on the mend and successful businesses are scurrying to
find lucrative investments.
Universally they
consider
Korea
Trade-Investment Promotion Agency (KOTRA) Deputy Director Park Chang Eun,
said that multilateral groups focus on the nation’s ability to assimilate
modern technologies.
They also consider
the nation’s political stability and commitment to offer preferential
policies on the origin of products as strong-points, he added.
During the talk,
Nguyen Noi, deputy head of the Ministry of Planning and Investment’s Foreign
Investment Department said that drastic measures to improve business environment
will be undertaken.
Most notably are
the simplification of customs formalities and streamlined procedures to
establish businesses, he added.
According to
statistics, many multinational groups from the
Experts forecasts
that, the enforcement of the Land Law after July 1 will allow foreigners and
overseas Vietnamese to purchase homes in
UK
Premier’s special envoy discusses projects in Vietnam
Lord David Puttnam,
who is the British Premier’s special envoy, met HCMC Vice Chairwoman Nguyen
Thi Hong last Thursday to discuss major projects that British could
participate in, especially the financial center project in Thu Thiem New
Urban Area in District 2.
Hong and the
British dignitary discussed the cooperation between the Investment and
Construction Authority for Thu Thiem New Urban Area (Thu Thiem ICA) and the
The two sides will
sign a memorandum of understanding on this cooperation project, and Thu Thiem
ICA will send a mission to the UK to work with the partner and call for
British companies to invest in Thu Thiem.
At the meeting last
Thursday, Lord David Puttnam also suggested the
HCMC is currently
home to 95 projects invested by British companies with total investment
capital of over US$500 million.
Last year saw
two-way trade between the two countries reaching US$4.27 billion, rising by
nearly 20% year on year.
SBV delays
debt classification deadline
The State Bank of
Viet Nam (SBV) finally agreed to give commercial banks at least six
additional months before implementing the new standards of loans
classification.
This is the third
postponement that the banks were eagerly awaiting. The new deadline for loans
classification is extended to early 2015, instead of ending sharply on June
1, 2014.
Loans
classification is one of the important contents of Circular 02/2013/TT-NHNN
of January 21, 2013, which also regulates a wide array of loans and
risk-related issues, such as the levels and methods of risk provisioning and
the use of provisions to handle risks by credit institutions and branches of
foreign banks.
Except for such
significant amendments to the loans classification, Circular 02 will be still
put into practice on June 1, 2014, which was intended to help banks in coping
with problems, as the central bank explained.
Circular 02 was
initially expected to come into effect on June 1, 2013. But, after deliberation
amid growing enquiries from commercial banks, who were concerned about a
surge in bad debts, a collapse of major businesses, and a financial domino
crisis after implementing the regulation, the Circular was postponed by a
year to June 1, 2014.
"I think the
central bank has taken into consideration the good and the bad aspects
related to the commercial banks implementing the loans classification as
scheduled. If the good outweigh the bad at this time, then we go for
it," stated Nguyen Thanh Toai, the deputy general director of Asia
Commercial Bank (ACB).
Some banks, which
are struggling to bring their bad debt ratio to below 3 per cent, noted that
the new regulation on loans classification will turn a series of positive
loans into negative or alert status. If it happens, credit businesses will be
consequently frozen.
State Bank Governor
Nguyen Van Binh recently announced that SBV was determined to apply
international standards to the regulation of the banking system as soon as
possible, rather than prescribing temporary solutions. However, he also
stressed that his strategy was to catch the mouse without breaking any vases.
Apart from loans
classification, the amended Circular 02 also incorporated some new rules on
the issuance of special bonds by the Viet Nam Asset Management Company (VAMC)
and on the debts that violate covenants.
VAMC, a 100 per
cent state-owned company managed by SBV, is allowed to spare 20 per cent for
risk provision fund.
The company has
purchased VND39 trillion (US$1.8 billion) worth of bad debts from commercial
banks, of which VND200 billion ($9.4 million) has been recovered. The
wholly-state owned company plans to buy an additional VND10 trillion ($473
million) in the first quarter of this year, however, there will be pressure
to sell the bought debts in 2014.
Regarding the plans
on debt refinancing through the special bonds issued by VAMC, Head of the
central bank's Monetary Policy Department Nguyen Thi Hong yesterday remarked
that the plans are yet to be implemented.
The strong purchase
of VAMC has helped the Vietnamese banks to get their bad debts off books and
polish their balance sheets. As per the standards set by the central bank,
the bad debt ratio of the system increased from 4.08 per cent in 2012 to 4.73
per cent in October, 2013, and the ratio reduced to 3.63 per cent last
December.
If the bad debt
rescheduled under the Decision No780/QD-NHNN dated April 23, 2012, is
included then
US$1.3
billion investment in energy
Construction will
begin on March 9th on the Vinh Tan 4 thermal power plant, in the central
province of Binh Thuan, at an estimated cost of VND36,000 billion
(approximately US$1.3 billion), reported the Electricity of Vietnam (EVN).
The 1,200 MW plant
is expected to generate 7.2 billion kWh annually to ease the shortage of
electricity in southern
According to the
schedule, the first turbine of the power plant will be connected to the
national electricity grid in 2017, and the second in 2018.
Already this year
EVN has connected several big thermal power plants to the national grid,
including Vinh Tan 2 (622 MW) and Hai Phong 2 (300 MW).
It also started
construction on a 600 MW thermal power plant in the
Doosan Vina
–first nuclear products supplier in SEA
Doosan Heavy
Industries Vietnam Co., Ltd has been certified by the American Society of
Mechanical Engineers (ASME) as the first supplier of nuclear products in
ASME is a
Non-Profit Organization which establishes the standards and technical
specifications for thermal and nuclear power plants. ASME certifies that the
quality assurance (QA) program and the implementation of the program by the
surveyed company meet all ASME requirements for products that will be used in
the thermal or nuclear power industry.
ASME inspectors
from the
Doosan Vina was
awarded six new ASME Nuclear certificates, (NPT, NA, NS, Site NPT, Site NA,
“This international
certification by ASME is testimony to the skill of our employees and
“This means
Vietnamese technicians now have the skill and expertise necessary to
manufacture and supply the equipment to
Doosan Vina is a
high tech industrial complex in the Dung Quat Economic Zone of central
Soc Trang
to host Mekong Delta Economic Forum
The eighth annual
Mekong Delta Economic Cooperation Forum (MDEC) will be held in Soc Trang
province in November 2014.
This was announced
at a March 6 meeting between the Steering Committee for Southwestern region
and Soc Trang provincial People’s Committee on preparations for the event.
This year’s annual
forum, will coincide with the Oc Om Boc festival of the Khmer ethnic group
and focus on agricultural restructuring and developing new rural areas in the
Mekong Delta region.
Local authorities
and relevant agencies have been urged to make thorough preparations and call
for more investors and donors to sponsor the coming event.
Nearly 100 Japanese
businesses congregated on Tuesday at a forum in
The event was
jointly organized by the Vietnamese Ministry of Agriculture and Rural
Development and the Vietnamese Embassy in
According to
Commercial Counsellor to Japan Nguyen Trung Dung, cooperation in
agro-fisheries has significantly contributed to the economic development in
the two countries.
Apart from the
traditional realms, such as the manufacturing industry and trade, the
Japanese firms can be potential investors in
Deputy General
Secretary of the Viet Nam Association of Seafood Exporters and Producers To
Thi Tuong Lan, emphasized that even though
Between 1993 and
2011,
In addition to
fisheries, Vietnamese fruits, such as mango, durian, grapefruit, and dragon
fruit, are also seeking ways to enter the Japanese market, where the market
requirements are particularly stringent.
Nguyen Thanh Binh,
the director of Vegetexco, noted that last year,
At the forum, a
representative of Yasaka, a Japanese firm operating in
Exports to
The cumulative
Vietnam-Japan import-export turnover jumped 15.1% against the same period
last year and stands at US$4.02 billion according to Vietnam Customs.
Of the figure,
In 2013, the
Vietnam-Japan import-export turnover hit US$24.3 billion, up 2.4% from last
year’s period including US$13.65 billion from
In 2013, total
two-way trade turnover ranked fourth among all
Seminar
discusses impacts of Vietnam-EU trade deal
The EU-Vietnam free
trade agreement (EVFTA) should be considered alongside other agreements to
evaluate the opportunities and challenges it brings about, thus aiding the
renovation of
Experts at a March
5 seminar in
However, they are
concerned about non-tax measures imposed by the EU, and suggested Vietnam
gather more consultations before making decisions regarding these EU
regulations while enhancing its capacity to fulfill new requirements.
EU procedures
should be publicised among businesses interested in the ongoing negotiations
in a bid to accelerate export and raise competitiveness, they said.
Pham Thi Lan Huong,
an expert of the European Trade Policy and Investment Support Project
(EU-MUTRAP), proposed
Apart from tax
advantage, it is necessary for
Le Trieu Dung,
deputy head of the Multilateral Trade Policy Department under the Ministry of
Industry and Trade, said most of agreements
Claudio Dordi,
technical assistance team leader of EU-MUTRAP , said the EU is placing more
importance on such issues as origin of products, intellectual property
rights, competitiveness policies, the recognition of product quality and the
settlement of disputes in trade agreements it sign with other partners. The
bloc also emphasizes the importance of sustainability and environment factors
in such agreements, he said.
Truong Dinh Tuyen,
former minister of trade and now an expert from EU-MUTRAP, said the EVFTA is
a comprehensive and high-quality agreement meeting the standards set by the
World Trade Organisation (WTO).
Along with goods,
services and technical barriers,
A report released
by EU-MUTRAP reveals that the EVFTA is expected to promote investment and
technological renovation, thus increasing productivity while expanding the
service sector.
Garments and
textiles, footwear and food processing sectors will benefit most from the
pact, the report said, adding that however, whether exports will increase or
not depends on the level of improvement in production capacity.
The 28-member EU
market has a gross domestic product (GDP) of about US$18 trillion, making up
22% of the global figure.
The bloc’s total
outbound investment accounts for nearly 40 percent of the global FDI while it
receives 20 percent of foreign investment.
The EU is also
Vietnam-Spain
trade records impressive growth
Preliminary
statistics released by Spanish Customs showed that the figure represents a
year-on-year increase of 6.48%.
Its exports were
largely mobile phones and their accessories, garments, footwear, spare parts,
coffee, and mechanical equipment, while imports were organic chemicals,
seafood, tanned leather, plastics, dyes and pharmaceuticals.
Two-way trade hit 1
billion EUR for the first time in 2008 and US$2 billion in 2012. In recent
years
Vietnam
attends the world’s largest tourism fair in Berlin
Thirty Vietnamese
travel operators attended the 48th International Tourism Bourse (ITB) – the
world’s largest annual event of its kind which opened in
The five-day event
attracted tens of thousands of travel agencies and tourism companies from 189
countries worldwide, to exhibit and promote their traditional tourism
packages and products.
The fair has
focused on organising forums to develop tourism and attract tourists from websites.
According to the
organising board, European travel companies accounted for nearly 75% of the
fair participants while those from
This year’s fair is
expected to attract approximately 170,000 officials, entrepreneurs and
visitors.
Vietnamese
products highlighted at Foodex 2014
Vietnamese
businesses attended an international food and beverage exhibition (Foodex
Japan 2014), held in Makuhari Messe from March 4-7.
The four-day event
provides an excellent opportunity for potential Japanese partners to learn
more about
Ministry of
Agriculture and Rural Development (MARD) Promotion Trade Centre said 14
Vietnamese enterprises will display a wide range of Vietnamese specialties
including agricultural and seafood products, fruits and vegetables, processed
cashew nut, processed rice food, and specialty Phu Quoc fish sauce.
Vietnamese
businesses hope to establish relations with Japanese importers, expand the
Asian market, develop new export items, sign valuable export contracts and promote
Foreign visitors,
mostly representatives from Japanese businesses visited
Vietnamese
ambassador to Japan Doan Xuan Hung affirmed that Vietnam-Japan relations have
thrived over the years. Despite
Hung said that
Notably, Vietnamese
products with Japanese standards will be exported to a third nation, not in
the Japanese market, he said.
He added that if
the Japanese market has a demand for importing
This year’s fair is
expected to attract more than 70,000 visitors and businesses from more than
82 nations and territories worldwide.
Businesses
miss Tra fish export opportunity
While the import of
Tra fish into the
The Vietnam
Association of Seafood Exporters and Producers (VASEP) said a number of
processing plants in the Mekong Delta region have cut back on production, by
as much as half, due to material shortages.
Only proactive
businesses with good inventory models in place can keep production at full
steam, the VASEP said.
VASEP Vice Chairman
Duong Ngoc Minh said tra fish material costs currently stand at a reasonable
VND24,000 per kilogram but there is no available material for processing
businesses and the shortage is forecast to last through the remainder of the
year.
Another
contributing factor is that farmers let cultivation slide by 60% compared to
last year. Production of Tra fish in March was 60,000 tonnes, much lower than
the 150,000 tonnes recorded in March 2013.
In addition, the
recent prolonged cold weather has affected the reproductive ability of Tra
fish, resulting in a sharp reduction of fry.
Vietnam
attends int’l furniture fair in Malaysia
The event,
sponsored by United Business Media in Malaysia, has attracted more than 500
enterprises from 13 countries and territories including the US, China, the
UK, the Republic of Korea (RoK), India, Spain, Singapore, Indonesia, Iran,
Hong Kong, Taiwan, and Vietnam.
Covering 80,000
square meters, the fair showcases a wide range of the latest products
including furniture for offices, living rooms, bedrooms, kitchens, children's
rooms, and furniture accessories.
At the
To date, the
company’s products have been exported to markets in the
Vuong Dinh Sac,
director of the company, said he hopes through the event, his company will
have the opportunity to expand its market to Southeast Asian countries,
particularly
Addressing the
event, Mohd Ridzal Sheriff, Deputy Secretary General of Trade under the
Ministry of International Trade and Industry of Malaysia, stressed the fair
aims to provide a strategic platform for worldwide furniture suppliers,
customers, restaurants, hoteliers, architects and interior decorators to
establish more business networks.
MIFF Chairman Tan
Chin Huat expressed his hope that through the event, the Malaysian furniture
industry will see an at least 5% increase in its sales this year.
In 2013,
Top 10
export commodities to West Asia
Mobile phone
handsets topped the list of 10 leading Vietnamese exports to the United Arab
Emirates (UAE) in 2013, earning US$3.42 billion, according to the Ministry of
Industry and Trade.
The ministry quoted
the United Nations Commodity Trade Statistics Database (COMTRADE) statistics,
as saying the UAE’s telephone import turnover hit a record high of US$6.8
billion in 2012, accounting for 22% of its total import value, and Vietnamese
phones were getting the lion’s share in this market.
The top 10 key
exports to West Asia are mobile phone handsets and components, fibers,
computers - electronics and spare part, machinery and equipment, seafood,
milk and dairy products, textiles, footwear, clothing, and pepper.
Phones, computers,
electronics and spare parts are mainly exported to the UAE,
Textile
exports continue to rise
The garment and
textile industry in the first two months of this year gained a year-on-year
increase of 30.1 per cent in export value to reach US$3.2 billion.
According to the
Ministry of Industry and Trade, the industry had a surge of 44.9 per cent in
export value in February to reach $1.3 billion.
The ministry said
the textile and garment industry firms have started large projects to expand
their production and receive new business opportunities this year,
Chinhphu.vn reported.
So far, many
enterprises have signed export contracts to be completed by the third quarter
of this year, the ministry said.
Nguyen Thi Thanh
Huyen, general director of the Garment 10 Corporation, said the company had
signed many export contracts since early this year. It had increased
investments to install more production lines to make high-quality products in
its factories in the Thai Binh, Thanh Hoa and Quang Binh provinces, the
Vietnamplus online newspaper reported.
The company had
also renewed the organisation of production to increase capacity, she said.
Nguyen Ngoc Lan,
deputy general director of Nha Be Garment Corporation, said his corporation
had, like other Vinatex members, got enough orders to manufacture products
the whole year. So he expects Nha Be to have better export results this year
compared with last year.
Nha Be has invested
several times in developing its production capacity to become an original
design manufacturer. An original design manufacturer (ODM) is a company which
designs and manufactures a product which is specified and eventually branded
by another firm for sale.
Now many foreign
customers want partners which can provide ODM services to help them save
money and time, he said.
Viet Nam Textile
and Garment Group (Vinatex) general director Tran Quang Nghi said the export
products of Vinatex had reduced the use of import materials and increased
products with design. So it had not only increased the export value but also
increased the added value of the products.
Nghi said Vinatex
had achieved its targets in the market and increased investment and
efficiency with its restructuring of production and business to improve its
competitiveness in the domestic and foreign markets.
The improvement of
the quality of production and business is a key task of Vinatex this year,
according to the general director. The group expects to gain a year-on-year
increase of 12 per cent in export value this year.
Vinatex will
promote its investments in developing materials and sub-materials this year,
including solid-dyed cloth and yarn-dyed cloth, to increase the localisation
rate of its products. That is one of key conditions to get more export
opportunities under the Trans Pacific Partnership (TPP) Agreement, he said.
The group expects
the member companies to get more export orders this year due to the bright
forecast for the world textile and garment market and the increase in export
opportunities from TPP.
Ho Thi Kim Thoa has
highly appreciated Vinatex's success in equitisation and restructuring
processes in the previous years and has also asked the group to focus further
on the domestic market and to promote cooperation among Vinatex members this
year to create a cooperative and competitive business environment.
In 2013,
Vinatex had
reported a gain of 11.2 per cent over 2012's figure to reach $2.91 billion in
2013.
Ca Mau
exports soar in first two months
The southernmost
The revenue was
mainly contributed by exports of aquatic products, at $173.53 million,
followed by nitrates with $10.55 million and farm produce at $1.38 million.
According to the
provincial Department of Industry and Trade, aquatic products are still among
the key exports shipped to the province's main importers, such as the
Thus, it is vital
to tighten the control of the quality of input materials for aquatic exports,
the department said.
Further, the
province is taking action to raise its export turnover to $1.1 billion this
year.
Gold loan
rate tumbles as banks urge dong transfers
Gold loans at
commercial banks in
Given no harsh
deadlines, the State Bank of
A senior official
at Eximbank said that terms of gold loan contracts were quite long and
clients often did not want to end contracts before their maturity.
Sharing similar
views, representatives of Southern Bank said it is difficult to transfer gold
loans to dong loans.
But the picture
seems to improve when gold prices fall. At lower gold prices, clients would
benefit from the lower values of gold loans. For instance, Phu Nhuan
Jewellery Joint Stock Company (PNJ) closed gold loans worth VND567 billion
(US$26.87 million) at Asia Commercial Bank and Sacombank.
Besides pushing to
wipe the slate clean, banks also cut purchases of gold due to potential risks
of movements of gold.
Statistics from the
central bank's
In 2013, the State
Bank of
The sales reduced
local gold prices to VND34.6-34.7 million (US$1,641-1,646) per tael at the
end of 2013, down VND12 million ($569.28) per tael, or 24 per cent against
the year-end in 2012. Each tael equals 1.2 troy ounces.
Rice
exports hit nearly 150 million USD in February
The VFA also
reported that the average price rose by 29.89 USD per tonne, with the FOB
(free on board) price standing at 445.03 USD per tonne.
The result pushed
the country’s total rice export volume in the first two months of this year
to 637, 756 tonnes, worth 274.62 million USD, it said.
However, the
figures represented a drop of 13.53 percent in volume and 14.2 USD per tonne
in price, added the association.
The VFA also
forecast that March’s export volume will reach 500,000-550,000 tonnes.
As much as 49
percent of
Meanwhile, the
domestic rice price was stable but rather high in February and is likely to
decrease in the coming time after all rice destined for the
Experts said in the
first quarter of this year
However,
cross-border trading to
According to the
Department for Cultivation under the Ministry of Agriculture and Rural
Development, in the 2013-2014 winter-spring crop, the rice bowl of Mekong
Delta region has a total rice field area of 1.6 million hectares with an
estimated output of nearly 11 million tonnes, with 4.27 million tonnes ready
for export. -VNA
In March and April,
the region is likely to harvest about 7.5 million tonnes of rice, the
department said.
According to the
VFA, price stabilisation measures should be applied to avoid a plunge in the
domestic rice price, as the global value is forecast to drop sharply when
Saigon Hi-Tech Park
(SHTP) in Ho Chi Minh City is a major highlight in terms of investment
attraction, with 60 existing projects and total investment capital of about
2.22 billion USD, according to Vietnam Economic News newspaper.
Moreover, since it
was established in October 2002, its export revenues have amounted to almost
6.476 billion USD, added the newspaper.
The Ministry of
Science and Technology said that ground clearing works at SHTP had almost been
completed and that 778.9ha of land had been withdrawn for construction of the
park accounting for 97.3 percent of all 801ha.
Last year 21
domestic and 39 foreign investors visited the park to seek investment and
cooperative opportunities in micro-electronics, information technology,
telecommunications, precision engineering, biotechnology, and others.
The SHTP Authority
issued investment certificates to six new projects with total capital of
125.9 million USD in 2013, representing a 50 percent increase on capital over
2012 despite the decline in the number of new investors.
Production revenues
reached about 2.296 billion USD, including nearly 2.282 billion USD from
exports, a 25.9 percent increase, and almost 1.87 billion USD, a 4.3 percent
increase from last year.
Since 2002
production revenues have amounted to almost 6.533 billion USD, including
nearly 6.476 billion USD in exports and 5.794 billion USD in imports, and
creating 17,619 jobs.
Currently 57
businesses and research centers are operational in the SHTP. Apart from
world-class high-tech groups and companies such as Intel, Jabil, Nidec,
Datalogics and Microchip, the SHTP has received many domestic leading science
and technology companies such as FPT, Hutech, CMC and HPT.
Many businesses and
research centers in the park have achieved notable success in science and
technology research such as Nanogen, which made public its new drug which
treats liver cancer in an effective, short and cheap manner. The invention
received an exclusive patent in the US and is now under the process of
franchise negotiations with multinational companies.
The US-Vietnam
Photonics Company Limited (UVP) has invented FRED chips and shipped its first
batch, which was also Vietnam’s first semiconducting products, to Hong
Kong-China in September 2013.
SHTP Authority Head
Le Hoai Quoc said that the authority would continue investment promotion
activities this year. Potential investors would come from the US, Japan and
the Republic of Korea, who accounted for a vast majority of business visitors
to the SHTP last year.
In addition, the
SHTP Authority would continue creating a favorable environment, regarding
infrastructure and a good legal corridor, for research & development
(R&D) and venture investment, while at the same time improving the
quality of human resources.
Employees who hold
university and post-graduate degrees accounted for only more than 10 percent
of the total workforce in the SHTP in 2010. However, the percentage soared to
30 percent in 2013 providing an outstanding advantage for the park.
Following its
development directions until 2020, the SHTP is expected to become a major
hi-tech center in Ho Chi Minh City and Vietnam providing science and
technology invention opportunities. In doing so, the park would help Ho Chi
Minh City keep up with other big cities in Southeast Asia.-
Rail sector
looks to get back on track
Transport Minister
Dinh La Thang has urged the State-owned Vietnam Railways Corporation (VNR) to
drastically renovate its operations in order to stay competitive with other
forms of public transport.
At a recent
conference launching tasks for the corporation, Minister Thang pointed out
the fact that the railway construction is lagging behind schedule, while
advanced technology has not been applied in selling tickets and patrolling
railroads.
The firm reported
that in 2013, the volume of its passengers was equal to that of 2012. The
number of short-distance travellers rose 15 – 20 percent, but the figure of
long-distance ones fell.
Pham Van Son,
Deputy General Director of VNR’s affiliate Saigon Railway Passenger Transport
Company, said to improve performance, his firm will undertake more market
research, enlarge the ticket selling network, adjust ticket prices to reflect
the market change and raise the service quality.
Tran Ngoc Thanh,
head of the VNR’s board of executives, said they will speed up technology
application in 2014. Notably, cutting edge technology will be employed to
sell ticket online from August.
The sector aims at
increases of 3 percent in passenger and goods volumes and 5 percent in
revenue this year.-
Vietnam –
Spain trade records impressive growth
Vietnam - Spain
trade in goods surmounted a record amount of 2.16 billion EUR last year, with
rises in exports from both sides.
Preliminary
statistics released by Spanish Customs showed that the figure represents a
year-on-year increase of 6.48 percent. Vietnam shipped goods valued at over
1.9 billion EUR to the southern European nation, up 4.9 percent, while
importing more than 245 million EUR, a rise of 20.3 percent.
Its exports were
largely mobile phones and their accessories, garments, footwear, spare parts,
coffee, and mechanical equipment, while imports were organic chemicals,
seafood, tanned leather, plastics, dyes and pharmaceuticals.
Two-way trade hit 1
billion EUR for the first time in 2008 and 2 billion USD in 2012. In recent
years Vietnam has consistently enjoyed high trade surplus.
Mekong
Delta aims for 1.3 million tonnes of tra fish output
Localities in the
Mekong Delta region plan to produce up to 1.3 million tonnes of tra fish this
year, aiming for 650,000-680,000 tonnes in export volume and 1.75 billion USD
in value.
According to the
Vietnam Tra Fish Association, in order to reach the target, the region will
expand its farming area to 5,500-6,000 hectares, focused in the major
aquaculture provinces of Dong Thap, An Giang, Ben Tre, and Can Tho city.
Meanwhile, the
localities have upgraded tra fish breeding production facilities to raise
their breeding capacity to 2.5-3 billion fry per year. They will also sign
contracts with processors to ensure stable markets for tra fish, the
association said.
Local producers
will also broaden the domestic market, while increasing the application of
advanced technologies used in production, enhancing the quality of tra fish
and diversifying processed products, it added.
In addition, local
governments will help farmers and enterprises update the situation of global
and domestic markets and strengthen the market forecast in order for them to
make proper adjustments.
Environmentally-friendly
farming models will also be encouraged, the association added, proposing that
the government issue national technical standards in the field as soon as
possible, creating a basis for the management of tra fish quality and
allowing farmers to apply international standards in tra fish farming.
Increased
FDI fuels industrial property market in Vietnam
Increased foreign
investment has fuelled the industrial property market in Vietnam, reported
the English language newspaper Vietnam Investment Review.
According to Tran
Duy Dong, Deputy Director of Economic Zone Management Department under the
Ministry of Planning and Investment (MPI), improved FDI attraction has pushed
the industrial property market forward.
“Investment in
industrial zones last year revealed positive trends. Giants such as Samsung
and LG have had their investments echoed, with satellite projects following
in their wake,” Dong said in a seminar on investment promotion to industrial
zones (IZs) in Vietnam late last year.
The MPI’s Foreign
Investment Agency reported that the total newly committed foreign direct
investment (FDI) to Vietnam reached 21.6 billion USD in 2013, up 54.5 percent
year-on-year. Around 80 percent of this figure was focused on the
manufacturing sector, driving demand for industrial locations.
Samsung Electronics
invested in a 2 billion USD factory in Yen Binh IZ in the northern province
of Thai Nguyen and is currently expanding its 1 billion USD factory in Yen
Phong IZ in the neighbouring Bac Ninh province. Meanwhile, LG Electronics
also invested in a 1.5 billion USD electronics factory in Trang Due IZ in the
northern port city of Haiphong.
“When a foreign
investor builds a factory in Vietnam, it’s best for them is to build it in an
IZ. We’re upbeat about the development of IZs in the year to come, as FDI
projects predicted to come into the country are on the rise,” said Nguyen
Thanh Phuong, General Director of South Dinh Vu IZ in Hai Phong.
CBRE Vietnam
forecasted that the IZ real estate market would remain busy because Vietnam
had emerged as an attractive destination for foreign investors.
With good
infrastructure, good logistics networks and proximity to China and international
ports and airports, Hanoi and Hai Phong will remain attractive IZ
destinations.
“With LG’s recent
announcement, it is anticipated that a shortage of ready built factories in
Hai Phong will occur,” CBRE Market Review cited.
The last quarter of
2013 saw more US investors seeking investment opportunities in Vietnam as the
anticipated Trans-Pacific Partnership trade agreement is slated for signing
this year.
Vietnam is
currently home to 185 IZs and export processing zones (EPZs), with 104 others
in the pipeline.
In the south, Dong
Nai has received more enquiries for both land and ready built factories due
to existing and fourth coming infrastructure improvements such as the Long
Thanh - Dau Giay highway.
In the north, new
investors have tended to move either to Hai Duong or Hung Yen provinces, to
take advantage of cheap labour or to IZs in Hai Phong where tax incentives
are available.
“With the incoming
factory from LG Electronics, land leasing and factory leasing prices in this
and the surrounding area may increase in 2014,” CBRE predicted.
Several regulations
intended to improve the investment climate took effect from January 2014, and
FDI figures are likely to remain positive, with a focus on business process
outsourcing, IT and fast moving consumer goods sectors.-
Trade
unions call for company cooperation
Trade union experts
from Vietnam and other Asia-Pacific countries gathered in Ho Chi Minh City on
March 4 to share experience between unions and businesses.
The seminar was
jointly held by the Vietnam General Confederation of Labour (VGCL), the
Japanese Federation of Textile, Garment, Chemical, Food, Trade and Service
Workers’ Union , and the Asia-Pacific Labour Network.
Speaking at the
event, Vo Van Nhat, a representative from the VGCL, highlighted Vietnam’s
view of building a harmonised, stable, advanced and mutually trusting
relationship between trade unions and companies.
At present, many
free trade agreements stipulate improved workers’ rights and the role of
trade unions have grown in influence, he said.
Participants said a
fair balance between the interests of employees and employers is a decisive
factor for the success of any business. When the relationship is built on
fairness, both sides’ interests are guaranteed.
To enhance this
partnership, trade unions should perform its role of encouraging workers to
actively contribute to the company’s development while protecting their
legitimate rights and interests, they said.
According to Vice
Chairman of the Japanese federation Shoichi Hachino, Vietnam, in its
international integration with the market and participation in international
and regional organisations, it has promoted its economic development,
especially in trade.
More and more
trans-national companies have invested in Vietnam, creating severe
competition among businesses, he said, adding that to overcome this
challenge, companies need to have sustainable and independent strategies and
strong bonds with unions, he said.
The Vietnam General
Confederation of Labour has set a target of having trade unions in all
domestic businesses and 65 percent of foreign invested ones.-
Vietnam plan B for risk wary Japanese investors
Due to rising
labour costs and the growing political crisis in Thailand, more Japanese
companies are pursuing a Thailand plus one strategy, which could benefit
Vietnam’s attraction of foreign direct investment.
Yasuzumi Hirotaka,
chief representative of Japan External Trade Organisation’s (JETRO) office in
Ho Chi Minh City, said increasing numbers of Japanese companies in Thailand
had adopted the strategy to avert the risk of concentrating their production
in one country.
The strategy means
Japanese companies will shift part of production from Thailand to other
Southeast Asian nations to take the advantage of political stability and
lower labour costs.
“This is a chance
for Vietnam to lure investment from Thailand,” said Hirotaka.
“When seeking
investment from Thailand, Vietnam should not only attract investment from
Thai companies, but also from Japanese companies in Thailand,” he added.
In recent years,
Thailand has been the most attractive place in Southeast Asia for Japanese
companies. Japan’s multinational companies like Nissan, Toyota and Honda
expanded investment in Thailand when they used the strategy of China plus one
to avert risks of growing tension between China and Japan and rising wage
costs in China.
But now, the new
strategy reflects rising wage costs in Thailand. According to a recent JETRO
survey of Japanese companies in 20 countries in Asia Pacific regions late
last year, the average annual wage of a worker in the manufacturing sector in
Thailand was 2.3 times higher than in Vietnam. And now, Japanese investors
are becoming increasingly concerned over the current political crisis in this
country, which began last October.
Kyoichi Tanada,
president of Toyota Motor Corp in Thailand was quoted by Bloomberg as saying
that long-term investors may consider countries including Indonesia and
Vietnam because of the unrest. Last month, Toyota, the largest automobile
manufacturer in Thailand, revealed it could reconsider investing up to $609
million in Thailand, and could even cut production, if political unrest
dragged on.
Statistics from
JETRO also showed that Japan’s direct investment inflows into Thailand
declined in 2013, but the investment flows to Vietnam increased.
Hirotaka suggested
Vietnam should hold more investment promotion activities in Thailand to
attract Japanese companies. “We could form a supply chain between Thailand
and Vietnam,” he noted.
JETRO has already
started encouraging Japanese companies in Thailand to expand investment
projects in Vietnam as part of their Thailand plus one strategy. This
organisation published three articles in InfoBiz Thailand, a Japanese
magazine for Japanese companies in Thailand, to promote investment expansion
in Vietnam. Atsusuke Kawada, chief representative of JETRO’s Hanoi
Representative Office, said last year the organisation held a trip for some
50 Japanese companies to explore investment opportunities in the north of the
country. He added JETRO would continue to organise Vietnam tours for Japanese
investors this year.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Năm, 6 tháng 3, 2014
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