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BUSINESS
IN BRIEF 26/7
Vinh Xuong
industrial zone construction kicks off
The economic zone
management board of the Cuu Long (Mekong) Delta
The 31-ha area,
located in Vinh Xuong Commune, will built with an investment fund of VND148
billion (US$6.95 million).
The province will
spend VND31 billion ($1.5 million) to build technical infrastructure across
nine hectares in the first phase.
The construction is
a key project for the 2014-18 economic zone development strategy for the
provincial border area.
The construction
aims to attract domestic and international investment to the trade and
service sector, and boost trade between
The terminal, which
spreads over an area of 2,400 square metres, with 8,000 square metres
allocated for parking, will also be able to accommodate five nine-tonne
trucks at any given time. Authorities also say the airport will have the
capacity to handle 100,000 tonnes of cargo annually.
VN expects
to sell entire annual rice yield
The Viet Nam Food
Association (VFA), believes that the country's rice yield of roughly 8.8
million tonnes this year will be sold out, thanks to an optimistic market.
According to Thoi
bao Kinh te
VFA has plans to
export around 6.2 to 6.5 million tonnes of rice, besides around another 2
million tonnes of unofficial cross border exports to
The amount of
unofficial cross border rice exports cannot be checked so VFA has not listed
that in its export plans.
According to VFA's
statistics, Vietnamese rice exporters from July 1 to 17 shipped 259,400
tonnes of rice worth of US$112.687 million. Asia was the largest rice
exporting destination for
With the result,
To date this year,
domestic rice exporters have signed contracts to sell 5.3 million tonnes of
rice, of which more than 3.2 million tonnes have been delivered. They are now
boosting rice purchase from farmers to deliver the remaining 2.1 million
tonnes, which has helped push up paddy prices in the domestic market.
The price of paddy
in the country's rice granary of Mekong Delta region in the past week
increased to VND5,550-5,650 per kilo from VND5,400-5,500 in early July.
A decision made by
the Thai government to stop excessive sales, has also led to a rise in not
only Thai rice prices but also global rice prices.
For the rest of the
five months this year, domestic rice exporters will have to win contracts for
the export of more than 1 million tonnes of rice to meet the annual target of
selling 6.2 to 6.5 million tonnes.
Indonesian news
portal Tempo reported that according to the Bureau of Logistics (Bulog),
Bulog fixed the
contract at around 6,000 rupiah per kilo, or around 300 billion rupiah ($25.8
million), Bulog Director Sutarto Alimoeso was quoted by Tempo as saying.
Experts said that
traditional importers are resuming negotiations to buy Vietnamese rice but
are concerned about fierce competition from Thai rice. If Vietnamese rice
prices are higher than that of
They are also
concerned about a rise in a small volume of unofficial cross-border rice
exports to
To manage rice
exports better, Deputy Minister of Industry and Trade Tran Tuan Anh asked VFA
to closely supervise and adjust rice exports, especially those via Chinese
borders without export contracts.
Anh has also urged
relevant ministries and bodies including MARD, Finance, General Department of
Customs and Border Guard Force to issue unique policies to co-ordinate better
with VFA in managing unofficial cross border rice exports.
Anh also called on
rice exporters to target sustainable growth through the development of
potential and high value markets.
According to a
report from the city's People's Committee, in the first seven months, total
wholesale turnover of the city reached VND336.380 trillion (US$15.85
billion), a year-on-year increase of 12.8 per cent.
Despite
difficulties arising due to
Major export
increases were in pepper (up by 85.5 per cent); vegetables (48.5 per cent);
machinery, equipment and spare parts (37 per cent); seafood (14.8 per cent);
coffee (14.6 per cent); rice (11 per cent) and garments (8.4 per cent).
Meanwhile, the
city's total imports went down by 8 per cent over the same period last year,
to $14.1 billion.
The city's
industrial production increased by 6.2 per cent over last year, with major
increases (7.2 per cent) in mechanics, chemicals, electronics, plastics and
rubber.
Foreign direct
investment (FDI) totalled $1.1 billion, a year-on-year increase of 80.2 per
cent.
In the same period,
the city received nearly 2.4 million foreign visitors, up by 9.1 per cent
over 2013.
Total revenue of
the city's tourism sector in the first seven months reached nearly VND52
trillion ($2.45 billion), an increase of 8.5 per cent over last year.
The chairman of HCM
City People's Committee, Le Hoang Quan, said despite difficulties and
increases in fuel prices, the city CPI (consumer price index) rose by only
0.12 per cent, the lowest in the past few years, while the city's exports and
industrial production were on the rise.
These increases
indicate that the city's economy has developed well and has not been too
dependent on overseas markets.
Tran Anh Tuan,
deputy head of HCM City Institute for Development Study, said despite signals
of stable economic growth, the city would face difficulties and challenges
and needs to focus on support industries, diversify overseas markets for its
imports and exports; and adjust its import and export structure to avoid
being dependent on the Chinese market.
To score high
growth and fulfill the targets of 2014, Quan asked the city's Government
agencies to focus on measures to put prices and inflation under control; to
stimulate consumption; and to work with other localities across the country.
Quan asked agencies
to increase revenue from taxation but to ensure good business and production
for enterprises in the city.
He told agencies to
enhance taxation from land resources, saying this is one of the major sources
of revenue for the city's infrastructure development.
Contractors
banned from water project
Ha Noi People's
Committee has asked the Viet Nam Construction and Import-Export Corporation
(Vinaconex) to prevent faulty contractors who participated in the
construction of the city's first water pipeline from building the second one.
In a document sent
out on Wednesday, vice chairman of the committee Nguyen Quoc Hung asked the
corporation to lay out a detailed plan for the second pipeline that would
carry water from the Da River to Ha Noi from next month.
The 28km-long
pipeline would run parallel to the current pipeline from National Highway 21
to the Ring Road 3, at a cost of VND1 trillion ($47.1 million).
Hung asked
Vinaconex to carefully select qualified contractors to build the first part
of the pipeline, which would run from the National Highway 21 to the
The rest would be
completed within the next six months, he said.
Hung agreed with
the corporation's recommendation to use domestically-produced pipes
manufactured from metal.
The city authority
would supervise contractors chosen to build the second pipeline, he said.
The committee has
required the city's Construction Department to transfer the premises to the
corporation this month. It also requested water supply units be ready to
supply more than 80,000 cubic metres per day after construction of the first
phase was completed.
The first water
pipeline, that has been carrying water from the Da River to Ha Noi, has
ruptured nine times since it was put into operation in 1997, exposing more
than 70,000 households in the city to water shortages.
Investor Vinaconex
has publicly apologised for the shortages and has since received the city's
approval to continue with the second pipeline project.
Foreign
investors vital for economy
Speaking at a
meeting held yesterday in
Last year, exports
reached US$132 billion, up 15.4 per cent over 2012, of which FDI businesses
accounted for 67 per cent of the country's total export value, Anh said.
Leading export
items from FDI firms included mobile phones, computers, textiles, footwear,
machinery and spare parts.
Exports reached
$70.88 billion in the first half of this year, of which FDI firms accounted
for 67.5 per cent of the country's total export value.
To date, there are
16,589 FDI projects in
Meanwhile,
Anh said FDI
businesses have contributed to the balance of trade, which helped the country
achieve a trade surplus, stabilise foreign exchange and increase foreign
currency reserve.
FDI firms achieved
a trade surplus of $6.48 billion last year, up from $4.1 billion in 2012.
Also speaking at
the event, Tran Thanh Hai, deputy chief of the Import-Export Department under
the Ministry of Industry and Trade, said that FDI firms' export growth had
been 30 per cent year-on-year.
Foreign companies
have helped to establish export-producing hubs that have adapted to each
region's feature, Hai added.
For example, FDI
businesses specialise in making mobile phones and electronics in Bac Ninh and
Thai Nguyen provinces and Hai Phong.
They make
automobiles and motorbikes in
FDI businesses have
created more jobs, thus enhancing human resource quality and labour
re-structuring.
FDI investment has
had a positive impact on accelerating industrialisation and modernisation and
integration in the global economy. It has also helped create significant
capital for the economy.
Some high-quality
services have been created such as tele-communications, international
tourism, finance and banking, insurance, audit, shipping and logistics.
Meanwhile, there has
been a rapid increase in FDI firms' import turnover: from 43.5 per cent in
2010 to 56.71 per cent last year, said the ministry.
FDI businesses have
not yet produced a great deal of high-value added and intensive products in
For example, mobile
phones, electronics and automobiles are mainly assembled from imported spare
parts; and apparel and footwear are just CMT (cut-make-trim) from imported
materials.
FDI firms have not
actually focused on technology transfer as committed. Also they have not
contributed to support industries in
Besides challenges
and solutions, the conference also discussed the outlook for FDI activities,
implementation of the export-manufacturing plan, and challenges in policies
related to finance and taxes, exports and imports, and customs procedures.
The event also
discussed detailed recommendations on how to increase production and export
of FDI firms.
Speakers said the
country should focus on producing high-value exports with high value added.
It was also
recommended to invest in production chains of materials, including fabric
making, weaving and dying, footwear materials, high-class plastic materials,
electronic components, and motorbike engines.
Speakers also
recommended that
Investment in
large-scale agricultural projects and food processing industry in rural and
mountainous areas was also suggested.
There are 101
countries and territories with investment projects in
Sai Gon Newport
Corporation has taken steps to curb overloading at
This includes
increasing many fees relating to containers, from next month, and refusing to
receive container goods from surrounding ports.
At present, more
than 80 per cent of goods exported or imported through
Vice director
general of the corporation, Ngo Trong Phan, told Hai quan (Customs) newspaper
that in the last few months, the number of containers at the port had risen
sharply, reducing the flow of goods and slowing down other port services.
In addition, a
recent rule by the Ministry of Transport on controlling the load of vehicles
on roads has forced transport firms to adjust their operations.
Some said they
needed time to find more vehicles, so goods had to wait longer at port.
The new e-customs
clearance procedures also allows an extral 300-350 containers into the port
each day, while the number departing has fallen by up to 300.
Vice head of the
Sai Gon Port Customs Division, Nguyen Thi Bong, said that more than 250
containers went through Customs' scanning equipment each day, but only 200
containers could be unloaded.
Phan said that to
reduce the time goods stayed at the port, the corporate had imposed higher
fees.
He added that fees
for frozen and dried goods staying at port for more than six days were now
nearly doubled after this period.
From next month,
The corporation
also plans to buy more cranes for loading and unloading goods and to expand
its container terminal.
It also suggested
shipping firms receive and deliver goods at
As reported in Hai
quan newspaper yesterday, many import-export companies have complained about
goods congestion at the port, time-consuming Customs-clearance procedures -
and the new fees.
Animal feed
exports increase 22%
During this period,
The
A large quantity of
the exported animal feed and raw materials are being temporarily imported for
re-export, Pham Duc Binh, deputy chairman of the Viet Nam Animal Feed
Association, was quoted as saying in the Nong Nghiep Viet
Many companies have
imported raw materials like soybeans and then re-exported them to other
countries, he explained.
However, animal
feed and raw materials produced in
According to Viet
Nam's animal feed producers, Cambodia is the export market with the most
potential for made-in-Viet Nam animal feed and raw materials.
Cambodia's
livestock sector is developing, but the country's animal feed industry has
not met domestic demand, they said.
Aviation
sector needs HR rethink
The domestic
aviation sector needs to totally rethink its human resources policy, which
currently has failed to keep up with the sector's growth, industry insiders
said.
Inadequate and weak
local human resources remained their biggest challenges, carriers said,
adding that this has forced them to hire foreign employees who were paid much
more than local employees.
At present, except
for the national flag carrier Vietnam Airlines, all other airlines have to
hire a majority of their pilots and engineers from abroad.
The online
newspaper Vietnamplus.vn quoted Deputy General Director of VietJet, Nguyen
Duc Tam saying that hiring personnel was a difficult problem for the aviation
industry, which required special professional standards and services. Also,
there were not too many local training establishments, he noted.
Director of
Jetstar's northern office, Duong Hoai Nam agreed. He told the online
newspaper that it took time and money for airlines to retrain new recruits as
most of them failed to meet the sector's requirements soon after their
graduation.
Experts also
outlined the pressure on airlines to increase profits as another reason
behind the sector's personnel shortage. In fact, some carriers have cut
training costs for higher profits.
Trinh Quoc Tuan,
from the Civil Aviation Authority of Viet Nam (CAAV) advised airlines to pay
more attention to training personnel, which was regarded as an important
factor in ensuring safe flight operations.
In order to deal
with the problem, the CAAV has joined hands with the Viet Nam Aviation
Academy to train aviation human resources, considering it a breakthrough
aviation transport development strategy by 2020.
According to the
CAAV, Viet Nam's aviation industry has made significant development in recent
years, with domestic routes increasing to 53 in 2013 from only 31 in 2009.
From 2009 to 2013,
the sector transported over 175 million passengers and 3.1 million tonnes of
cargo, representing annual growth of nearly 17 per cent and 12.7 per cent,
respectively.
Apart from Vietnam
Airlines, VietJet and Jetstar Pacific, an additional 49 foreign airlines are
operating on 71 international routes to Viet Nam.
Mekong Delta
shrimp exports to rise
The Cuu Long
(Mekong) River Delta provinces expect US$1.3 billion from exports of shrimp
in the second half of 2014, bringing earnings to $2.6 billion for this year.
The Steering Board
for the Southeast Region, said that to increase export targets, the provinces
planned to produce 214,000 tonnes of prawn in the second half for processing
export products and 430,000 tonnes of prawn for the whole year, which is 4.6
per cent higher than last year.
Meanwhile, the
region expected to produce 54,000 tonnes of white-leg shrimp and 16,000
tonnes of blue-leg prawn for export processing in the second half.
Shrimp producers in
the region have developed under modern and environmental-friendly modes,
including GlobalGAP, VietGAP and safe breeding regions to meet the demand for
quality at home and the export markets, the board said.
The board said that
in the first half of this year, the Cuu Long (Mekong) River Delta harvested
285,000 tonnes of shrimp and earned $1.3 billion in export value.
According to the
Ministry of Agriculture and Rural Development, in the first half of this year
the total value of Viet Nam's seafood exports rose 24.2 per cent to $3.45
billion, of which 48 per cent came from shrimps. It was in demand in the
United States, the European Union and Japan apart from South Korea and China.
The total export
value of seafood this year is expected to reach $6.9 billion, which included
$3.5 billion from shrimp exports, similar to that of 2013.
Gov't
announces new regulations on forex transactions
All transactions
and cash payments for exports and imports of goods and services must be
conducted by bank transfers through authorised credit institutions.
This regulation was
approved in the decree 70/2014/ND-CP, issued last week to replace decree
160/2006/ND-CP, detailing the Ordinance on Foreign Exchange.
The new decree will
come into effect on September 5.
Accordingly, income
in foreign currencies from exports must be transferred to foreign currency
accounts opened in authorised banks. Exceptions must get approvals from the
State Bank of Viet Nam.
The decree was also
aimed at ensuring the liberalisation of current account transactions which
said that both residents and non-residents are allowed to buy, transfer and
take foreign currencies abroad for payment demands and current transactions.
They must present
documents required by credit institutions when buying, transferring or
bringing foreign currencies abroad, but are not required to show documents
proving completion of their tax obligations.
Regarding the
transfer of income in dong from foreign direct investments to other
countries, foreign investors are allowed to buy foreign currency at permitted
credit institutions and transferred abroad within 30 working days.
Authorised credit
institutions must meet foreign currency demands of both residents and
non-residents, according to the decree.
The decree said the
exchange rate regime of the Viet Nam dong is managed by floating the exchange
rate regime by the State Bank of Viet Nam, determined on the basket of
currencies of countries which have trade relations, loans, debt payments or
investments with Viet Nam in accordance with the macro-economic goals in each
period.
Dalat Hasfarm opens
first distribution hub in Da Nang
The country's
leading fresh flower producer and supplier, Dalat Hasfarm, opened its first
distribution centre in Da Nang City today to meet increased demand from
flower wholesalers and flower shops.
Located on Nguyen
Huu Tho Street, the distribution centre offers domestically grown flowers as
well as premium imported flowers and auxiliary floral products.
The company opened
its first retail store in Ha Noi on July 21, while a distribution centre was
opened in 1998.
The company
provides 100 million flower branches a year, of which 65 per cent are
exported, mainly to Australia, Japan, South Korea, the EU and the US.
Poor
supervision over mining allows many to get rich
A lack of
transparency in exploiting natural resources has resulted in large amounts of
revenues from mineral exploitation flowing into the pockets of individuals
instead of State coffers.
Speaking at a
recent seminar on promoting transparency in nature management held by the
People and Nature Reconciliation (PanNature) and Oxfam in Hanoi, an expert
noted that loopholes in the mining law have been utilized for private gains.
Pham Quang Tu, team
leader of the Advocacy Coalitions Support Program, said that the 2010 Mineral
Law specifies a more transparent mechanism, awarding mining rights to the
highest bidders, but the reality is far from that point.
In addition, under
the law, many mines can still be licensed without auction. The reality shows
that many mines are handed to enterprises without undergoing auctions,
according to Tu.
In addition, if
mines are put up for auction, valuation is not done and those offering higher
prices are allowed for exploitation. Vietnam currently does not make mineral
valuation but only rely on the volumes enterprises exploit to collect taxes.
Therefore, Tu asked
how the annual exploitation volumes of enterprises could be controlled.
Dang Hung Vo,
former deputy minister of Natural Resources and Environment, said that
Vietnam has a committee for assessing the exploitation volumes of enterprises
but assessments are mainly made based on the reports of enterprises.
Another issue
which, according to Vo, has not received enough attention is the lack of
transparency in mineral exploitation, leading to deforestation and pollution,
affecting residential communities.
From the aspect of economic
growth, Tran Dinh Thien, director of the Vietnam Institute of Economics, said
that land and minerals are being overexploited, as seen in vast areas of
forest being chopped down to build hydropower projects or the excessive
exploitation of sand in rivers.
Vietnam has
maintained the growth model based on mineral exploitation and product
outsourcing and assembly for too long, resulting in unsustainable and slow
development, he added.
According to
economic experts, it is now time to boost transparency in mineral
exploitation to share benefits among relevant sides, promoting economic
growth and reduce negative implications.
Senior economic
expert Le Dang Doanh said that State officials and enterprises are those
benefiting from the lack of transparency.
Therefore, issues
like exploitation license, exploitation volume, budget payments and impacts
on the environment and the society should be publicized and supervised under
the Extractive Industries Transparency Initiative (EITI).
One of the
principles to promote transparency is to create an effective management
mechanism and cut red tape in management.
Linh Dam
Lake development gets approval
Ha Noi People's
Committee has approved a plan to build a 147 hectare urban development area
south of Linh Dam Lake to house 7,800 people.
A main feature of
the project will be skyscraper apartment buildings 35 storeys tall.
The development
will be the last of four new urban construction projects to be built in the
area.
There is one north
of the lake, another at Phap Van-Tu Hiep and a fourth one southwest of Linh
Dam Lake.
The new urban area
south of the lake is between Hoang Liet Ward in Hoang Mai District, Tam Hiep
Commune and Van Dien Township in Thanh Tri District.
Much of the area
has been set aside for parking lots, schools, kindergartens, hospitals,
public parks and sports areas.
Ha Noi People's
Committee said that all high-rise buildings in the development must allocate
at least two storeys for public purposes.
The highest
buildings, which will reach 35 storeys, will be located in the centre of the
area.
The committee will
also invest in building social houses on 7.6 hectares, a commercial centre on
3.4 hectares and a hospital on 3 hectares.
Chairman of the
committee, Nguyen The Thao, has asked the municipal Department of Planning
and Construction to guide the Housing and Urban Development Corporation, the
investor of the project, to quickly complete the planning of the project.
Southern
Hydropower lists on HOSE
The Southern
Hydropower Joint-Stock Company got on the board of the HCM City Stock
Exchange (HOSE) yesterday after having received a license on July 14.
SHP, previously
traded as UpCom, has chartered capital of more than VND937 billion (US$44.6
million).
It runs three
plants in Lam Dong Province, with a combined output of 550 million kWh, with
the largest one (338 million kWh) beginning operation earlier this year.
Last year, SHP
achieved turnover of VND194 billion, up almost 10 per cent on the 2012
figure.
Its net profit was
VND104 billion, showing an increase of over 14 per cent year-on-year.
This year the
company expects a lower profit of VND78 billion, due to increased
amortisation with the new plant having been put into production.
SHP, with a charter
capital of VND937 billion ($44.4 million), posted a net profit of VND104
billion ($4.9 million) last year, up 14 per cent year-on-year.
The shares closed
the first trading day up at VND13,800 ($0.65) per share, a rise of 15 per
cent over the reference price of VND12,000 a share.
VN boosts
exports to Australia
Viet Nam has seen a
trade surplus of over US$924 million with Australia in the first half of this
year, the General Department of Customs reported.
During the reviewed
period, Vietnamese exports to Australia rose 24.3 per cent year-on-year,
reaching $1.89 billion, it said, adding that a majority of Viet Nam's
exported goods to the market had enjoyed an increased turnover over last
year's corresponding period.
Crude oil took the
lead with a value of $989 million, a yearly rise of 44.1 per cent. It was
followed by mobile phones and components with $185 million, up 21 per cent
and seafood with $105 million, up 36.5 per cent.
Notably, despite
generating a modest export turnover of $19.3 million, steel and iron recorded
the highest growth of 215.6 per cent compared with the same time last year.
Other items experiencing encouraging growth, included confectionery, bags,
wallets and suitcases, bamboo-made products as well as textiles and garments.
During the January
to June period, Viet Nam imported over $971.56 million worth of goods from
Australia, surging 37.3 per cent, with major imports including wheat, iron
and steel scrap, materials for garment and footwear production, machinery,
equipment and cotton.
The Ministry of
Industry and Trade's Industry and Trade Information Centre said that the
closer geographic distance as compared with other markets such as the EU and
US, and the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), would
facilitate Vietnamese exports to Australia.
With these
advantages, Vietnamese enterprises should foster trade promotion to such
potential markets with a focus on joining trade fairs and exhibitions to
better advertise their products and services, the centre suggested.
PetroVietnam
achieves H1 goals
The Viet Nam Oil
and Gas Group (PetroVietnam) reached all targets in production and business
for the first half of this year, according to the group's press release
yesterday.
The group said it
produced totally 13.87 million tonnes of crude oil and gas in the first half
of this year, 11.4 per cent higher than its target, including 5.39 million
tonnes of gas and 8.48 million of crude oil used at home and abroad.
It produced 2.46
million tonnes of petrol and oil, an increase of 16 per cent compared with
its target for the first half.
PetroVietnam
increased 16.4 per cent in its total revenue for the first six months of this
year to VND380 trillion (US$18 billion) against its target, or 57 per cent of
the Government's expectation.
Increase of crude
oil volume from some fields at home did not reach its target, said
PetroVietnam, adding that instability in the East Sea, slow recovery of many
economic sectors and pressure on capital for existing projects would be
challenges for the group in the coming months.
Therefore, in the
second half of this year, the group would promote production and business,
continue its restructuring plan – including withdrawal of capital from
non-core businesses, equitisation and adjustment of its development strategy
by 2015 and towards 2035.
It would continue
to develop consumption markets for new products, including fibre and bio
fuel.
This year, the
group planned to produce 26.63 million tonnes of crude oil and gas, including
16.83 million tonnes of crude oil, produce 4.76 million tonnes of petrol and
oil products and need VND100 trillion ($4.74 billion) in capital for
implementing its projects.
PetroVietnam
expected to gain a year-on-year increase of 6.8 per cent in its total revenue
to VND673.3 trillion ($31.91 billion) for this year.
Woodcraft
villages struggle to compete
Craft villages
making wooden products in Viet Nam need to work closely and develop a
distribution system to increase their domestic market share and challenge
foreign products.
According to Nguyen
Ton Quyen, General Secretary of the Viet Nam Timber and Forest Products
Association, there were around 1,000 craft villages making wood products
throughout the country.
However, not too
many companies showed interest in the domestic wood market even though the
local demand for wood products was rising.
Quyen said that
with the rising demand for interior decoration from households, hotels,
offices and new urban areas amid a recovery of the property market, the local
market for wood products had good potential.
This seemed
strange, considering the fact that Viet Nam was ranked sixth in the world for
wood and wood exports with a turnover of US$5.3 billion last year and a
presence in around 120 countries and territories.
Nguyen The Truong,
Director of the Department of Rural Development of northern Nam Dinh
Province, where around 20 villages with 300 wood processing companies were
located, said local companies mainly used outdated machinery and simple
technology in production due to their limited financial capabilities.
As a result, they
mainly processed raw material for big companies and their products for local
consumption were just basic designs, he said.
Ngo Sy Hoai, vice
president of the Association of the Viet Nam Timber and Forest Products
Association, said that local producers were unable to challenge foreign
competitors who could, more easily, meet the demands of consumers opting for
modern designs at reasonable prices.
"Local
producers can see the potential in the market, but cannot compete due to
higher production costs," he said, pointing to the lack of distribution
systems that added to the difficulty in expanding their presence in the local
market.
Experts also said
that promotional activities and application of e-commerce by trade villages
in the distribution of wood products also remained weak.
The local
consumption of wood products was still not focused and also lacked a
consistent development strategy, said Vo Thanh Do, Deputy Director of the
Department of Processing and Trade for Agro-Forestry-Fisheries Products and
Salt Production.
While some villages
coordinated with each other to specialise in production, unhealthy
competition still existed during the sale, said president of well-known Dong
Ky Wood Carving Village Association, Vu Quoc Vuong.
Deputy President of
the Viet Nam Trade Villages Association, Trinh Quoc Dat said craft villages
producing wood products should join hands to develop a nationwide
distribution network to bring their products to local consumers.
In addition,
renovation in materials, designs and quality were necessary to cater to
consumer tastes.
The Ministry of
Agriculture and Rural Development aimed to develop the local market for wood
products to reach $4 billion by 2020 from the current $2.25 billion.
Mekong Delta targets 2.6 bln USD in shrimp exports
Exporters from the
Mekong Delta are striving to rake in 1.3 billion USD from selling shrimp
abroad in the latter half of this year, bringing the year’s export earnings
from the product to 2.6 billion USD, or an annual rise of 2.2 percent.
Breeding farms have
been expanded by 600,000 ha raising mainly black-tiger and white-legged
shrimps in Ca Mau, Bac Lieu, Soc Trang, Kien Giang, Tra Vinh, Ben Tre, Tien
Giang, and Long An provinces, according to the Steering Committee for the
Southwest region.
The breeders have
been advised to focus on renovating farming techniques and applying
environmentally-friendly models such as the Global Good Agricultural
Practices (GlobalGAP) and VietGAP certificates to produce high-quality
products for both domestic and foreign markets.
In the first half
of this year, they harvested 285,000 tonnes of shrimp, including 171,000
tonnes of black-tiger, which brought in 1.26 billion USD from abroad sales.
In 2013, Vietnam
for the first time earned over 3 billion USD from shrimp exports, up 36
percent against the previous year. With this achievement, the country secured
third place among the world’s shrimp exporters.
Shrimp
exports to Germany soars 93 percent
Vietnam’s shrimp
exports to Germany saw a robust growth in the first five months of 2014 with
a turnover of nearly 51 million USD, up 92.7 percent from a year earlier.
According to the
Vietnam Association of Seafood Exporters and Producers (VASEP), the exports
included nearly 62 percent from white-leg shrimp and 30 percent from black
tiger prawn.
With a population
of over 80 million, the largest European economy is forecast to see
increasing demands for imported shrimp and other aquatic products in the
future.
Vietnam is now the second
largest supplier of frozen-shrimp for Germany after Thailand.
Statistics from the
International Trade Centre (ITC) shows that, Germany’s 2013 shrimp import
from Vietnam rose by nearly 4 percent compared to those of previous years,
while those from Thailand went down 11 percent.
In the first half
of this year, the national seafood industry posted 3.45 billion USD in export
value, rising 24.2 percent over the same period last year, with 1.8 billion
USD generated by shrimp exports, according to the Ministry of Agriculture and
Rural Development.
Vietnam’s major
export markets were the US, Japan, the Republic of Korea, Switzerland and the
European Union.
Customs
sector asked to intensify fight against smuggling
Deputy Prime
Minister Nguyen Xuan Phuc has required customs officials to strengthen their
role in the fight against smuggling and trade frauds, in the context of
increasingly complicated violations in this field.
Phuc, who is head
of the National Steering Committee on the Prevention and Control of Smuggling,
Trade Fraud and Fake Commodities, made the request at a working session with
the Vietnam Customs general department in Hanoi on July 21.
He pointed to
challenges the customs sector is facing, including the increasing complexity
of violation cases, legal loopholes and the degradation of a number of
customs officials.
The Deputy PM also
stressed the necessity to reform institutions, increase the effectiveness of
coordination between relevant ministries, sectors and agencies.
During the working
session, members of the steering committee focused on difficulties faced by
different sectors and localities and measures to deal with them.
Vice President of
the Vietnam Fatherland Front Le Ba Trinh said that it is necessary to prevent
fake products from entering the country right at border gates, while boosting
awareness campaigns on the negative impacts of smuggling on the economy.
In the first half
of this year, the customs sector uncovered nearly 9,000 cases involving
smuggling, trade frauds and counterfeits, seizing goods worth nearly 170
billion VND (8 million USD).
Businesses
optimistic about business climate
Despite some
difficulties, businesses are optimistic about the business climate in
Vietnam, the Vietnam Economic News quoted a recent General Statistical
Office’s survey as saying.
The survey also
indicated that 71.6 percent of responded businesses said they expected their
revenues to increase this year; another 14.7 percent predicted their
turnovers would remain unchanged and another 13.7 percent said they would see
a decline in their revenues, compared with 54.1 percent, 9 percent and 36.9
percent for 2013, respectively.
According to the
survey, 75.1 percent of businesses said their pre-tax profits would increase
in 2014, while only 5.8 percent expected to remain stable, and another 19.1
percent said they would make lower profits than they did for 2013, compared
with 46.4 percent, 10.9 percent and 42.7 percent respectively last year.
Meanwhile, 34.1
percent of businesses expected to increase their export revenues in 2014;
60.6 percent predicted their export value would hold steady; and 5.3 percent
said their export earning would go down, compared with 26.6 percent, 61
percent and 12.4 percent respectively for 2013.
In term of capital,
60.8 percent of surveyed businesses said they would maintain their current
level of investment this year; 33 percent expected to increase capital; and
only 6.2 percent anticipated reducing it, compared with 55.3 percent, 30.8
percent, and 13.9 percent respectively for 2013.
Regarding to
employment issue, 51.5 percent of responded businesses said they would
maintain their current number of employees this year; 38.5 percent expected
to increase their labour forces; and only 10 percent anticipated cutting
staff, compared with 44.8 percent, 29.7 percent and 25.5 percent respectively
for 2013.
The General
Statistical Office also said that many Vietnamese businesses did not have
adequate information on global market demand as 55.8 percent of them said
they did not know or could not evaluate the current demand in the global
market. This weakness had significantly affected the sustainability of
Vietnamese businesses, particularly exporters, the survey said.
The General
Statistical Office carried out a survey of 7,675 businesses currently
operating in Vietnam including 237 state-owned enterprises, 6,812 non-state
businesses and 626 foreign-invested businesses.
Kansai Desk
set up to assist Japanese investors in Dong Nai
The southern
province of Dong Nai has issued regulations on the operation of the “Kansai
Desk”, which is established to provide necessary information to and assist
Japanese investors in completing investment procedures.
Under the
regulations, “Kansai Desk” is a unit under the Dong Nai Industrial Zone
Management Board, responsible for receiving and responding to requests from
businesses from Japan and particularly Japan’s Kansai region, by either
direct meetings or emails and telephone.
It is expected to
be bridge connecting Kansai region’s enterprises and local authorities.
Dong Nai is now
home to nearly 1,100 valid foreign-invested projects with total registered
capital of more than 20 billion USD.
Japan now ranks
third among the foreign investors with 151 projects worth over 3 billion USD
in total, mainly in support industry, electricity, electronics, health and
telecommunications, according to the provincial Department of Planning and
Investment.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Sáu, 25 tháng 7, 2014
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