BUSINESS IN BRIEF 14/12 Banks in Vietnam meet international payment standards The American multinational banking and financial services corporation Citi announced the list of 11 banks in Vietnam who won the Straight Through Processing - STP 2014 Award on December 11. They have been awarded for their ability of conducting through payment transactions and daily service quality. The 11 awardees include Joint Stock Commercial bank for Foreign Trade of Vietnam (Vietcombank), Bank of Investment & Development Vietnam (BIDV); Vietnam Bank for Agricultural and Rural Development (Agribank), Vietinbank, Vietnam Technological & Commercial Joint Stock Bank (Techcombank), Military Commercial Joint Stock bank (Military Bank), Vietnam Prosperity Bank (VPBank), Asia Commercial Joint Stock Bank (ACB), Saigon Commercial Joint Stock Bank (Sacombank), Vietnam Export-Import Commercial Joint Stock Bank (Eximbank) and Taipei Fubon - HCMC branch. Vietnam fully prepared for AEC Vietnam is fully prepared for joining the ASEAN Economic Community (AEC) in 2015, particularly in institutional and administration reforms in line with international rules and commitments. The statement was made by Nguyen Anh Duong, Deputy Head of the Macro-Economic Policy Department under the Central Institute for Economic Management (CIEM). He said AEC will be a dynamic economic region with a growing competitive edge and will successfully integrate into the world economy. As an important partner of powerful economies like the US, China, the EU and Japan, it will also help promote global economic growth. AEC is considered a potential market with more than 500 million consumers and the world’s highest economic growth rate. Meanwhile, CIEM Deputy Director Vo Tri Thanh said Vietnam still faces a number of difficulties such as poor human resources and infrastructure while making efforts to avoid the middle-income trap. So, the country should take proper measures to promote potential and internal strength, and develop effective and safe macro policies to accelerate the integration process. Particularly, the Government should improve the business and investment environment, complete the legal framework and help businesses renew technology and find markets. Experts said AEC will offer Vietnam with more chance to expand market with lower input costs and more investment opportunities. However, the country will have to fiercely compete with rivals on home turf, particularly in industrial and agricultural production. Brand-building the key to competitiveness and integration In the opinion of many experts and entrepreneurs ‘intellectual property’ is the most valuable asset of a business and may just be the most single important factor impacting Vietnam during the integration process. Brand names are one type of intellectual property (such as a label, logo, slogan, symbol or shape) that distinguish the goods of services of one business from another and are strong growth drivers in both the national and global markets. If a brand name is accorded legal protection it becomes trademark.  More and more, experts are advocating Vietnamese enterprises focus on expanding their global reach through strong execution of a marketing strategy aimed at developing their label. The trademark is the invisible giant asset that can be seen most clearly through higher profits in the financial statements and it should be nurtured and maintained just like any asset. General Secretary of the Vietnam Chamber of Commerce and Industry (VCCI) Pham Thi Thu Hang,said CEOs and managers have increased their awareness about the power of branding to attract customers and enhance profits. So far in the integration process, local businesses have concentrated more heavily on investing their funds in tangible assets and have not paid sufficient attention to nurturing the intangible value of assets. Ms Hang also makes the strong argument that Vietnamese enterprises have not developed their name recognition in the region and the world due to inadequate research and development to differentiate their products. Firms that pursue high robust differentiation benefit the most from trademark recognition in the eyes of consumers, Hang said. Most importantly, Hang said, they should strive to separate their products from others and increase their returns by effective execution of a long-term business strategy to build them in parallel in the national and global marketplace. Stephen Kreppel, an expert in nation branding from the Nation Consultancy, UK in turn said the development of Vietnamese brands in the international arena would directly translate into elevating the image of its national treasure, the Vietnamese people. The truth of the matter is that Vietnam has historically been overly preoccupied with competing in the global market place solely on price.  Its strategy has been narrowly defined as simply to sell unprocessed commodities to foreign companies and earn a meagre profit. While leaving the processing and manufacturing to the foreign company to add value and reap the lion’s share of the benefits Kreppel says, adding that this strategy has resulted in little, if any, notoriety in the eyes of consumers in the global market they have not developed a clear image of Vietnam or its products. Kreppel said the best solution for Vietnam is to develop an open market-oriented economy thus helping Vietnam export high quality products at a higher profit along with developing Vietnamese recognized labels and targeting foreign consumers. He has also advised businesses to take more time to study the foreign markets and to obtain an in-depth thorough understanding about consumer tastes and potential markets to find an opening in the market and develop a national image. The whole business community should be involved in a comprehensive effort to develop a national image, Kreppel concluded. However, Hanoi Milk Joint Stock Company Management Board President Ha Quang Tuan has a slightly different take on the issue.  He said the building of national label is the responsibility of the business community, every citizen and the whole nation. Tuan suggested the country would benefit from a better selection process to insure production is geared towards goods and services for which it has competitive advantages. Vietnam might not be able to compete with other nations in manufacturing aircrafts, rockets and automobiles but it does have advantages in producing farm products, which have attracted the world attention, Tuan added. Echoing Kreppel’s views, the most important thing is to study consumer demand and the foreign markets and carefully strategize on the most resourceful way to find a niche in it, he underscored. Some popular Vietnamese goods have won consumer trust and made inroads into the global marketplace, Kreppel said. However, the importance for enterprises of having a long-term vision to invest in their trademark in the national and global marketplace cannot be overstated. US tra fish imports fall as prices rise Vietnam’s tra fish exports to the US dipped 16.2% to US$273.3 million in the ten months leading up to November compared to last year’s corresponding period, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). The US now ranks second after the EU in importing Vietnam’s tra fish, accounting for 18.7% of the country’s total export volume. The decrease in the quantity of seafood products, and tra fish in particular, has been attributed to an economic downturn in the US and the imposition of anti-dumping tariffs, a VASEP representative said. The representative noted the average export price of tra fish jumped nearly 4%, in spite of the decrease in exports to the market. In the first nine months of the year, the average tra fish price has gone up US$3.09 per kilo. RoK trade deficit widens, amid higher exports The two-way trade turnover between Vietnam and the Republic of Korea (RoK) ticked up 4.3% on-year to US$26.19 billion in the eleven months leading up to December, according to the General Statistics Office (GSO). Meanwhile, Vietnam exports to the RoK jumped modestly by 7.06% on-year to US$6.53 billion. Imports from the country tallied in at US$19.65 billion, posting a year-on-year increase of 3.4%. During the 11 month period, the nation’s trade deficit with the RoK rose by US$13.1 billion. Vietnam’s imports, valued at US$4.63 billion, principally consisted of computers, electronics and spare parts, while the RoK imported garments and textiles, seafood and wood related products. Turkey asks WTO for emergency duties on mobile phone imports Vietnam mobile phone makers have not violated any World Trade Organisation (WTO) trade rules and any allegations by Turkey they did are sheer ‘stealth protectionism’ measures aiming to block legitimate foreign competition. This is the response of the Vietnam Competition Authority (VCA) to a complaint Turkey has filed with the WTO asking permission to impose emergency import tariffs on Vietnamese mobile phones. Such ‘safeguard tariffs’ are permitted if a country can show that a surge in imports is irreparably damaging domestic producers, but they may be challenged by other WTO members. The WTO has 20 days from December 5 to study Turkey’s request. Turkey’s is the first petition for safeguard tariffs on mobile phones and many governments are increasingly using these safeguards as part of a trend fostering economic growth by blocking foreign competition without any foul of the WTO rules, a representative of the VCA says. Turkey’s petition to the government indicates the value of mobile phone imports into Turkey had risen from $1.1 billion in 2009 to $2.7 billion in 2013, with 99.9% of imports coming from China, Vietnam the Republic of Korea, India or Taiwan in 2014. Vietnam ranks second to China among the nations exporting mobile phones to Turkey with the export turnover reaching US$603 million in the first nine months of the year. Export surge lifts Italy trade surplus Vietnam’s exports to Italy in the eleven months leading up to December shot up 18.2% on-year to US$2.5 billion, according to the latest statistics of the Ministry of Industry and Trade. Vietnam’s key exports during the period were computers and electronics, which tallied in at US$913.4 million, up 8.86% on-year, accounting for 40% of the total, followed by footwear (US$237.85 million) and coffee (US$210.67 million). Vietnam’s imports from Italy were also up US$1.19 billion. Vietnam posted a trade surplus with Italy of US$1.31 billion in the eleven month period. Nearly 16,000 automobiles sold in November Automobile sales in November soared 57 percent year-on-year to 15,954 units, marking an expansion for 20 months in a row, according to the Vietnam Automobile Manufacturers’ Association (VAMA). They include 10,068 sedans, up 9 percent and 5,868 lorries, a rise of 3 percent, with 11,591 assembled domestically, down 1 percent and the rest imported, up 37 percent from a month earlier. The sale figure for the 11-month period hit a total of 137,602 units, including 82,217 sedans and passenger coaches and 50,384 trucks, representing increases of 42 percent and 40 percent respectively. Among them, domestic-assembled vehicles reached 103,101 units while 34,501 were imports. VAMA forecast that this year’s sales are likely to hit 150,000, a surge of 36 percent from 2013. Canada promotes investment, trade in HCM City A conference to introduce Canada ’s potential and policies supporting foreign businesses was held in Ho Chi Minh City on December 9 by the Canadian Consulate General and the city’s Business Association. Vietnam is a priority market in Canada ’s Global Markets Action Plan and International Education Strategy, said Marcel Laneville, Senior Trade Commissioner of the Canadian Consulate General. He highlighted that two-way trade between the two countries has experienced a high growth in recent years, reaching to 2.5 billion CAD in 2013. He described it as an impetus for the two sides to foster bilateral cooperation in many fields such as economics, culture and tourism. La Thi Lan, Deputy Chairwoman of the city’s Business Association, spoke highly of Canada ’s potential market, saying many Vietnamese businesses are seeking effective channels to penetrate into the promising market. She added the Vietnamese business community hope that Canadian relevant agencies will facilitate them to conduct market survey and seek partners, while easing administrative procedures. HCM City firms in deal to sell safe products Twelve producers and distributors in Ho Chi Minh City have pledged to provide the market with safe and qualified products in line with an agreement they signed with the city’s market monitoring agency on December 8, the Saigon Times Daily reported. The participating firms include supermarket chains Big C, Aeon, Citimart and Maximark, Thien Hoa Electronics Center, and other consumer products and electronics distributors. Hat firm Non Son, Thu Duc rice vermicelli firm, and Binh Minh Gas Ltd. Co. are among the producers joining the programme. The enterprises promise not to store, trade or produce banned and fake products, and the items unsafe and unqualified or violating intellectual property rights. The management boards of Pham Van Hai, Ben Thanh, Dan Sinh, Binh Tay, Tan Binh and An Dong wet markets also pledge with HCM City authorities to discourage vendors from selling prohibited and counterfeit products. Food distributors and producers of the city’s safe food chain programme also clinched deals to consume products of one another. In the middle of last year, HCM City initiated a pilot programme to apply food management to the process of production, processing and distribution to ensure food hygiene and safety for consumers. Huynh Le Thai Hoa, head of the city’s food safety agency, said 45,000 tonnes of vegetables, seafood, livestock and poultry meat and 197 million eggs have been certified as safe and qualified products more than one year after the programme was launched. Interested enterprises should register with the city’s food safety agency to join the programme. The agency will appraise their products and issue certificates for the items meeting standards. Information about high-quality products of the programme is available at www.atvstp.org.vn. Vietnamese, Danish firms cooperate in wind-power project Denmark’s leading wind energy group Vestas and the Ho Chi Minh City-based investment group Phu Cuong have teamed up in developing a wind-power farm in the Mekong Delta province of Soc Trang. They signed a memorandum of understanding to this effect on the sidelines of a seminar on wind power hosted by the Danish Embassy in Vietnam in Ho Chi Minh City on December 9. Vestas will support Phu Cuong in capital, infrastructure construction and equipment and through the project making and the construction and operation process of the 436-million-USD farm, which has a total designed capacity of 170MW. According to Nguyen Viet Cuong, President of Viet Cuong Group, the construction work on the farm’s first wind power plant with a capacity of 30 MW will begin in early 2016. Once fully operational, the farm is expected to supply about 485 GWh of electricity per year for the southern region, especially Mekong Delta localities, Cuong said. Previously, Vestas poured capital into a wind power development project in Central Binh Thuan province’s Phu Quy Island, which has a capacity of 6MW. At the seminar, experts from Vestas, the Export Credit Agency and the Investment Fund for Developing Countries of Denmark informed Vietnamese investors about financial and technical assistance and design consultancies for wind power development in Vietnam. They also shared their experience in investment and management in the field. Vietnam urged to invest more in post-harvest technology Post-harvest losses of fruits in Vietnam account for 20 percent of the total output due to the incorrect way of harvesting, packing, transporting and preserving, heard the third Asia-Pacific Symposium on Post-harvest Research, Education and Extension in Ho Chi Minh City on December 9. The loss of agricultural products after harvest is 8 percent, particularly rice at 10 percent, according to the Ministry of Science and Technology. As Vietnam is a tropical country, it is extremely important for local farmers to keep farm produce in low temperature right after they are reaped, experts stated. They also pointed out several shortcomings of the country in this field, including the lack of skilled labourers and modern technologies. Michael Lay-Lee from the New Zealand Institute for Plant and Food Research suggested Vietnam attract more young people to work in the agricultural sector, and provide them with training on using technologies to preserve farm produce. Former head of the Southern Fruit Research Institute Nguyen Minh Chau stressed the necessity for Vietnam to invest more in modern technology in packing. Jointly held by the Ministries of Agriculture and Rural Development, and Science and Technology under the auspices of the International Society for Horticultural Science, the symposium will end on December 11. It is expected to help Vietnamese scientists and businesses to learn about the latest post-harvest technologies and how to apply them in production in order to reduce the losses and increase the competitiveness of Vietnamese agricultural products. Vietnam is an agricultural country with agriculture accounting for 22 percent of GDP, 30 percent of exports and 60 percent of employment. Minister calls on private sector to invest in processing industry Minister of Agriculture and Rural Development Cao Duc Phat called on private enterprises to invest in the post-harvest processing sector to add more values to Vietnamese agro-products. Addressing a conference held by the International Support Group in Hanoi on December 9, Phat said that it was necessary to create a favourable investment environment to encourage businesses to invest in the agricultural sector. The ministry will review mechanisms and policies to improve the investment and business environment in the sector, the minister said at the conference, which was entitled “Promoting the processing industry-Opportunities and Challenges”. The development of the processing industry is not only an urgent requirement to add more values to the end-products, create jobs and improve income for farmers, but also a driving force for boosting farming production, the minister added. The enterprises are advised to apply science and technology to shift towards highly-competitive processed products. Meanwhile, Nguyen Trong Thua, head of the Department of Processing and Trade for Agro-forestry-fisheries Products, said that one of the priorities would be to reduce post-harvest loss in agriculture and fishery by 50 percent by 2020. Other priorities are innovating technologies, increasing the rate of finely processed products and ensuring the hygiene while keeping the price competitive and meeting the demand of tough markets. Investing in advanced technologies to produce high-valued products from the by-products is also a priority. The delegates at the conference also emphasised the need of improving the quality of the workforce to meet the criteria required to process and preserve products. Besides that, policies on taxes and credit also should be improved towards ensuring the convenience, transparency and fairness among economic sectors and a clear and stable legal framework to manage the quality is needed. According to the Department, the agro-product processing sector occupies 20 percent of the processing industry’s GDP and is growing at 7.44 percent, positively contributing to the country’s GDP.- Vietnam, RoK eye expanded nuclear power, trade ties More result-oriented action programmes are needed for Vietnam and the Republic of Korea to realise their cooperation in the fields of nuclear power, energy, minerals, technology, industry and trade. The emphasis came from the fifth session of the Vietnam-Republic of Korea (RoK) Joint Committee for cooperation in nuclear power, industry, energy and trade in Seoul on December 9, which was held as part of efforts to realise high-level commitments to beefing up bilateral partnership in the areas. Minister of Industry and Trade Vu Huy Hoang, who headed the Vietnamese delegation, lauded the effective coordination of RoK Minister of Trade, Industry and Energy Yoon Sang-jick as well as efforts of sub-committees and working groups of both sides in implementing reached agreements. He highly valued the business circles for making proactive moves to foster their connectivity and partnership to tap the full potential of both countries. The sub-committees reported on their operations since November last year and proposed action programmes to carry out the cooperation agreed. Ministers Vu Huy Hoang and Yoon Sang-jick witnessed the signing of a memorandum of understanding (MoU) on apparel cooperation among Vietnam’s Ministry of Industry and Trade, the Vietnam Association of Garment and Apparel, the RoK Ministry of Trade, Industry and Energy, and the RoK Federation of Textile Industries. They also saw the signing of another MoU on farm machine development partnership between the Korean Agricultural Machinery Industry Cooperative and the Can Tho city People’s Committee. Ciencos expect to thrive with new execs Less than a year after transport firms were obliged by the government to start on the path to restructuring major transport contractors expect to make considerable headway thanks to significant private sector interest. Recently, Ho Chi Minh City-based Tuan Loc Investment and Construction JSC finalised a merger and acquisition (M&A) deal with state-owned Civil Engineering Construction Corporation 4 (Cienco 4), a leading contractor in the transport sector. Late last week, Saigon-Hanoi Securities JSC – the consultant unit for the deal – announced that 21 million shares or 35 per cent of the state’s share of Cienco 4 which has a chartered capital of VND600 billion ($28.5 million), had been sold to Tuan Loc JSC at a value of VND14,062 per share. This was the last of the shares the state held in the firm, which means that Tuan Loc, with its previously acquired 16.5 per cent, has secured a majority position in the company. Six years ago, Tuan Loc was little known in the sector. Its name only rose to some prominence over the past three years, when it signed some major transport engineering contracts in the southern area under the build-operate-transfer (BOT) model. Besides Cienco 4, Tuan Loc was reported to be targeting another big M&A deal after it went to the Ministry of Transport (MoT) with a proposal to buy a controlling stake in Cua Lo port in the central region’s Nghe An province. This is the largest port in the north-central region. At Cienco 1, another major contractor with charter capital of VND700 billion ($33.3 million), the state’s remaining 35 per cent stake (24.5 million shares) are to be transferred to a consortium consisting of Japan’s Hassyu Vietnam and local Yen Khanh Manufacturing Trading Service Company Limited. Accordingly, Hassyu has registered to buy 17 per cent of Cienco 1’s chartered capital, and Yen Khanh the remaining 18 per cent. If Cienco 1’s capital divestiture plan goes as planned, the company’s shareholder structure will be relatively well balanced with both Yen Khanh and Hassyu holding 28 per cent respectively, Fecon 10 per cent, the company’s employees 10.8 per cent, and individual shareholders 23 per cent that was sold at the company’s IPO. Besides these two Ciencos, before the end of this year the MoT envisages completing capital divestitures at several other Ciencos by selling its shares to strategic partners. This plan is still awaiting government approval. In particular, the controlling stake of Waterway Transport Corporation JSC would be in the hands of Nguyen Thuy Nguyen, the company’s current chairman and also leader of a renowned private building contractor. Nguyen would retain as much as 64.9 per cent of the company after finalising his buy out of 20 per cent of the state’s current 49 per cent share position. In an earlier development, private shareholders grabbed control of two other major Ciencos – Vietnam Waterway Construction Corporation JSC and Thang Long Transport Corporation. According to MoT leaders, since most strategic partners are operating in the same field, changes to shareholder structure would not affect the business or production strategies of these aforementioned companies, or affect the interests of other minority investors or company workers. “Only by equitising in this radical manner will we ensure corporate governance and efficiency in transport businesses,” said MoT chief Dinh La Thang. Local firms want macro-economic stability A new report of Vietnam Report Joint Stock Company showed 76.8% of 300 local corporate respondents pick macro-economic stability as the most important factor for their business planning and operations next year. Effective inflation control is what the Government should continue to focus on, according to the country’s 300 top enterprises which took part in a survey of Vietnam Report last month. The respondents explained macro-economic stability will enable them to gauge business opportunities, avoid financial risks and increase investments in order to beef up their long-term growth. In the past two years, macro-economic stability has become the top priority in the Government’s economic development strategy, instead of high economic growth. According to the report, the Government should continue this task before giving enterprises more financial support, tax and investment incentives. The survey found 64.3% of the enterprises believed in better business results this year than last year, 28.6% ticked stable business and only 7.1% forecast their business in 2014 is worse than last year. Up to 95% of respondents projected their business is basically stable or improves next year, particularly in terms of revenues, profits and orders compared to this year. Notably, State-owned enterprises (SOE) contribute 59.4% of total revenue of the 500 leading firms in the country. This meant that SOEs still dominate the local economy. Asked about the restructuring of banking-finance, public investment and SOEs, a majority of respondents said the results have not been clear, with 70.5% for public investment and 64.4% for SOE restructuring. FrieslandCampina grants nutrition award The Vietnam Nutrition Association (VINUTAS) and FrieslandCampina have granted the VINUTAS-Dutch Lady Award 2014 to late Dr Bui Thi Nhu Thuan (1931-1998) to recognize her great contributions to the community in the nutrition field. The award was initiated by VINUTAS and FrieslandCampina in 2002 to honor significant contributions by individuals and promote researches on nutrition in Vietnam. The late doctor was posthumously given the award due to her widely-recognized contribution to the country’s nutrition science. Graduating from a school of medicine and obtaining a Ph.D. degree in France, she returned to Vietnam to work in the nutrition sector since 1980. She also lectured at the Hanoi University of Medicine for 30 years. The scientist authored or co-authored some nine reference books in the sector, and published dozens of studies on nutrition in scientific journals. The award was given at the seventh National Nutrition Scientific Conference held last week Hanoi. The conference themed “Double Burden of Malnutrition in Vietnam” gathered over 200 local and foreign doctors and experts in the nutrition field who discussed many issues concerning community nutrition, clinical nutrition and food safety. According to the Southeast Asian Nutrition Survey (SEANUTS) conducted in 2010-2012 in Thailand, Indonesia, Malaysia and Vietnam, Vietnam still has to cope with double burden of malnutrition with the high rate of malnourished kids aged under five and the high rate of obese kids. Kids also lack nutrients like vitamins A, B1, D and C. The SEANUTS survey aims to provide policymakers with useful information concerning nutrition and health. FrieslandCampina, with over 140 years of international experience in the dairy industry, has always worked closely with experts and professional organizations in Vietnam on studying and working out measures to improve nutritional intakes of Vietnamese people in general and Vietnamese kids in particular. Cement export exceeds yearly target Vietnam exported 19 million tonnes of cement and clinker by mid-December, exceeding the set target by 4 million tonnes. The volume raked in over 796 million USD, contributing sizably to the nation’s export turnover and ensuring trade balance. The export price of cement and clinker stands at 43.155 USD per tonne, up 2 USD compared to previous years, which is equivalent to the regional rate. A total amount of 49 million tonnes of cement were consumed within the country by the end of November. According to Le Van Toi, Director of the Department of Building Materials under the Ministry of Construction, the cement sector fulfilled its yearly target early, by the end of November. He predicted that the demand for Vietnamese cement consumption in both domestic and foreign markets will range between 71 and 73 million tonnes, up 4-7 percent compared to 2014. The need could be met as the total designed capacity of cement factories nationwide reaches 77 million tonnes in the meantime. In the ten-month period, Indonesia was the largest importer of Vietnamese cement and clinker with a value of 90 million USD, followed by Malaysia, Bangladesh, Taiwan (China), the Philippines and Cambodia.- Vietnamese firms attend Lao Techmart 2014 A number of Vietnamese enterprises operating in the technological domain are showcasing their products at the LAO TECHMART-2014, which opened on December 11 in Vientiane. The fair is held by the Lao Ministries of Science and Technology, Industry and Trade, in collaboration with a number of domestic and foreign businesses. More than 100 booths of Lao enterprises introduced latest domestic technology solutions and hi-tech products in the sectors of aviation, banking, telecommunications, and agriculture. The event is expected to help boost creation and technology transfer, contributing to improving domestic firms’ competitiveness and the country’s socio-economic development, the organising board said. Vietnam’s products mainly focus on the fields of water filtering, Biogas, and digital technology. Enterprises from Malaysia, Thailand, Singapore, China and Japan are also exhibiting their products at the event. PVN reaches production target early The National Oil and Gas Group (PVN) announced that it has completed its annual production target for this year. The group said its total output from the exploitation of oil fields at home and abroad reached 16.21 million tonnes of crude oil and 9.5 billion cu.m of gas by December 9. These accomplishments indicate that PVN achieved its annual targets 22 days before the end of this year. By the year-end, PVN expected to add 1 million tonnes of crude oil and 500 million cu.m of gas to its total output from exploitation in these oil fields. The group also completed its plan to seek and explore new oil fields with a total estimated output of 48 million tonnes of crude oil. According to the General Statistics Office, Vietnam gained a year-on-year increase of 3.2 percent in the export value of crude oil, reaching 6.86 billion USD, as well as an increase in the import value of petrol by 13.9 percent, attaining 7.2 billion USD, against the same period last year. The finance ministry last week increased the maximum preferential import duty on oil and petrol by 10 to 15 percent to touch 40 percent due to a sharp drop in oil prices in the global market. Vietnam is a crude oil exporter that recorded an export volume of 1.3 million tonnes last year. The oil price in the global market has dropped sharply from 105 USD per barrel in late July to 68.53 USD late last month, the lowest in the past four to five years. An Giang province’s rice output hits over 4 mln tonnes Rice production in the Mekong Delta province of An Giang recorded over 4 million tonnes in 2014, up 17,000 tonnes from 2013 while the cultivation areas declined by 16,254 hectares to 625,086. According to Do Vu Hung, Director of the provincial Department of Agriculture and Rural Development, the rise stemmed from the increased application of scientific and technological advances though the province is implementing a reform that decreased the rice cultivation acreage for the farming of other crops. He stressed that advanced techniques helps improve the quality of the grain which bring farmers higher profits. The province has so far developed large-scale fields covering a total area of 34,200 hectares, a year-on year increase of 200 hectares. An Giang now ranks second nationwide in paddy rice production. Its rice has made inroads in many countries around the globe and each year brings the province lucrative earnings. Last year, the staple earned 203 million USD. Farm Products Spring 2015 to kick off in Hanoi A fair boasting to be the most representative of Vietnam typical agricultural products is set to take place this upcoming January 9-11 in Hanoi, a representative of the organizers has announced. The fair has so far attracted more than 100 businesses, both local and foreign who will showcase their wares in an estimated 200 pavilions, the representative says.It aims to honour all agriculture and farm related products such as agro-forestry-fishery products, plants, animals, fertilizers, equipment and a wide array of other products. It also targets assisting businesses better advertise their products. In addition, business representatives, enterprises, professional village and organizations will have more opportunities to view all the latest in new scientific products which are used in agricultural, fishery and forestry. The event titled ‘Fair of Agriculture and Vietnam Professional Village – Farm Products Spring 2015’ is set to take place at Palace of Architectural Exhibition – Centre in Hanoi. Steel imports surpass US$6 billion Vietnam has imported 9.9 million tonnes of steel valued at US$6.6 billion during the 11 months leading up to December, according to the latest statistics from the Ministry of Industry and Trade. For the month of November alone the country imported 1.1 million tonnes of steel worth US$728 million, with Chinese steel accounting for half of the import volume. In the 11 months period, domestic steel production has been estimated at US$2.7 million tonnes, a year-on-year rise of 1.8%. Around 4.73 million tonnes were sold in the domestic market while 378,500 tonnes have been stockpiled, up 27% against the same period last year. Earlier, the Vietnam Steel Association announced the steel sector’s trade deficit has been steadily increasing over recent times as a result of Boron steel enjoying a tariff of zero. Tuna exports – Swimming against the tide The domestic tuna industry is finding it difficult to reach its export target for the year on the back of an overall reduction in exports since the beginning of the year, the Vietnam Association of Seafood Exporters and Producers (VASEP) says. Suffering from a long-term decline, tuna exports in November have shown signs of rebounding in the months11 leading to December at around US$450 million, cumulatively. However, the forecast is that the sector is falling far short of this year’s target of US$580 million in gross export revenues. Local tuna processors and exporters are facing a number of difficulties such as shortage of materials, consumption declines and lower prices. Although overall seafood exports to the US are on the upswing jumping 12% over last year, it’s not enough to compensate for the tuna shortage earlier in the year. Overall, US tuna exports have had a dismal year dropping 9.5% to US$172 million in the 11 month period. Exports to the EU in the reviewed period have also dipped slightly by 1.48% to US$120 million. Meanwhile exports to Japan have grown in the second quarter of the year but have dropped again in the third quarter. In the 11 months leading up to December, export revenues to the Japanese market grossed around US$22 million, a disappointing year-on-year decrease of 46.2%. VASEP Secretary General Truong Dinh Hoe says despite businesses’ great effort and recovery in many markets, a sharp decline in some key export markets has been the main cause of low tuna revenues this year. Being afraid of shortage of materials, many countries in the world had accelerated importing tuna in period 2012-2013, which conversely turned around and reduced import volume in 2014. In addition, every year Vietnam has to import certain of material tuna for processing, however this year’s import volume from other countries has been limited and lower than previous years. The overstocking in the two year period from 2012-2103 and the reduction of current year imports are the two main causes that the tuna sector cannot fulfil this year’s plan, Hoe says. VASEP forecasts that tuna exports are likely to hit US$500 million this year, down 4% against a year earlier. Vietnam’s tuna now is exported to 87 countries and territories throughout the world. Three major markets – the US, Japan and the EU – account for 46% of total export revenues. Next year, if a free trade agreement (FTA) between Vietnam and EU and Trans-Pacific Partnership (TPP) are signed they will offer better opportunities for export markets. However, to promote sustainable exports, tuna processing and exporting firms have to have a more coordinated and comprehensive effort to raise their competitiveness and high-tech added value for their products. In a long-term, the Government should issue a master policy to create a close connection among, fishermen, processors and exporters to raise competitiveness of Vietnamese tuna products on international market. Taiwanese firms ink agriculture deals Businesses from Taiwan on Wednesday signed five Memoranda of Understanding on agriculture co-operation with partners from Ha Long City in northern Quang Ninh Province. The co-operation covers orchid planting, tea cultivation and processing, mushroom growing, aquatic product preservation and abalone breeding. Dang Huy Hau, vice chairman of the provincial People's Committee, said Quang Ninh boasts favourable conditions for developing agriculture and a stable consumption market. Canada eyes Viet Nam potential Viet Nam is a priority market in Canada's global market development plan, disclosed Senior Trade Commissioner of the Canadian Consulate General Marcel Laneville at a conference held at HCM City on Wednesday. During the event, Laneville shared that Canadian firms have been focusing on ways to accelerate the establishment of a two-way trade and education co-operation in Viet Nam. The Canadian businesses, which visited Viet Nam this time to seek co-operation and investment opportunities, specialised in the fields of manufacturing, engineering, agricultural and healthcare technology, the commissioner noted. A representative from HCM City Small and Medium-Sized Enterprises Supporting Centre under the HCM City Business Association shared that the centre has connected over 50 Vietnamese businesses with Canadian partners. Moreover, many local firms have successfully penetrated Canadian supermarkets, while many Canadian businesses have established their branches in Viet Nam. Next year, the association will work with the Vietnamese Consulate in Canada to organise trade promotion activities there and invite more Canadian business delegates to Viet Nam to explore opportunities. Holding an exhibition in Canada will provide Vietnamese companies an opportunity to introduce their products, the representative said. According to Viet Nam Chamber of Commerce and Industry, Viet Nam's turnover from exports to Canada reached US$1.31 billion in the past eight months, which shows an increase of 41 per cent over the same period in 2013. The major Vietnamese export products included garments, seafood, footwear and handicrafts. Securities firm battles legal problems Dai Viet Securities Company has recently been inundated with problems stemming from the investigations launched against its board members in cases involving financial fraud and customer losses. Since July, the police have been investigating and arresting some of the company's board members, including Nguyen Quoc Vien, Mai Huu Khuong (chairman) and Phan Thanh Mai. Their financial regulation violations were linked to Viet Nam Construction Bank – the precursor of TrustBank and Thien Thanh Group – which operates in a range of sectors but focuses on real estate. The prosecuted businessmen held leadership positions in these entities. In addition, two individual investors claimed that an official of Dai Viet Securities' Ha Noi branch stole their money in the accounts they opened in the branch last year. Both reported victims have not yet recovered their money. Le Thi Uyen, one of the two investors, said that she contacted both Dai Viet Securities' general director and the police to handle the matter. However, the northern branch was closed on December 4, which meant that no redemption was made. Uyen added that the authorities have yet to solve their cases. The company's general director, Hoang Thi Tam, was unavailable for comment. Meanwhile, the brokerage has incurred losses amounting to VND22 billion (over US$1 million) in the first nine months of this year. To date, the accumulated losses have reached VND198 billion ($9.3 million). Dai Viet Securities was established in 2006. Its current charter capital is VND250 billion ($11.7 million). Its largest shareholders include TrustBank, Dai A Bank, beverage firm Sabeco and Southern Power Corporation. Ascott signs management contract The Ascott, a serviced residence business affiliate of CapitaLand, a property developer of Singapore, signed a contract with M.I.K Corp yesterday to manage a 222-unit project of the latter's company, the Canh Hung Hai Thanh in HCM City's District 1. The Waterfront Saigon will be the first serviced resident property to be managed by Ascott in Viet Nam when it opens in 2016. Along with other apartment projects in the country, CapitaLand also has another serviced management brand, the Somerset in Ha Noi, which opened in 1994 and later in HCM City as well. Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR