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BUSINESS IN BRIEF 19/1
Predicted
positive outlook for HCMC’s retail sector
Following the relatively good figures in the fourth quarter of
2014, the retail market in
According to CBRE Vietnam,
Positioned in District 7, SC VivoCity offering 62,000 square
metres of retail space will be completed in the first quarter this year.
Another shopping centre opened in January is Vincom Thu Duc, comprising
27,860 square metres of retail space.
Saigon Square 3 and
“From 2015 onward, there will be approximately 1.3 million
square metresfrom 62 future projects. However,only 25 per cent of future
projects is currently under construction and completing,” said Savills
In the latest report released by Savills, it is expected that
362,000 square metres will be brought to the retail market in next two year,
increasing mainly in
In the fourth quarter of 2014,
The retail market fared well because most of mid and low-end
products brought to the market have met the demands of the purchasers. More
importantly, the city has a total population of eight million with the
highest rate of income per capita, so it has enormous potential for retail
market.
“Another factor driving the retail sector is the daily changes
in consumer shopping preferences,” said Nguyen Khanh Toan, research manager
at Savills
“In 2015, Vietnam will have to accede to its WTO’s obligation
to permit the opening of wholly foreign-owned retail businesses, which will
generate the demand for retail space from foreign retailers entering the
market in Vietnam,” said Duong Thuy Dung, deputy director and head of
research and consulting services at CBRE Viet Nam.
However, CBRE pointed out that the Economic Needs Test was
still a technical hindrance to trade. In the short term, the impact is not so
enormous because foreign retailers have been involved in the market for a
while, including Big C, Central Group, Metro Cash & Carry, Lotte Group,
Aeon Group, CJ Group and so on.
CBRE also noted that the country’s retail and services
turnover has always maintained an average growth rate above 10 per cent
despite the economic downturn. Solid economic growth and a rising middle
class population are expected to continue to drive this retail market in
2015.
Huawei eyes Vietnam
Information, communication and technology giant Huawei is
hoping to strengthen its smartphone market share in
Huawei, which is the world’s third largest smartphone maker,
last week said
Huawei Device
The firm is going to heavily invest $5 million into marketing
in
The firm is also planning to deliver over 500,000 high-quality
smartphones for the Vietnamese domestic market this year.
Over the past few years, Huawei has been co-operating with
local operators in supplying telecommunications equipment. This firm has also
introduced some smartphone lines including the Ascend G700 and G610s and the
Huawei Y320.
Last week, Huawei officially launched its new-generation
smartphones including its flagship Mate7 and P7 Arsenal and G7 and Holly
Honor.
While Mate7 offers consumer experience innovations, P7 Arsenal
provides a limited edition, with the G7 proving the latest innovation of the
successful Huawei G series and the Honor Holly which is the best choice for
entry users, Huawei said.
“Huawei has always considered
Huawei will focus on expanding store coverage in
“In addition to boosting activities to develop our brand name,
Huawei will continue investing more strongly on expanding co-operation with
partners and distribution channels, and online sales as well. We will also
swell and develop our service and customer care centres,” Shu said.
Experts forecast garment, textile export target accessible
this year
Negotiations of Trans-Pacific Partnership (TPP) and other free
trade agreements (FTA) have been done and they are going to be signed this
year, which experts say are an opportunity for the garment and textile
industry to maintain its export growth momentum last year and obtain a
turnover target of US$28-28.5 billion this year.
Last year the garment and textile export turnover reached
nearly US$24.5 billion, an increase of 16 percent over 2013. Garment items
brought US$21 billion up 17 percent while fibre products yielded US$3
billion.
The export turnover grew 12.5 percent to
These achievements were partly due to influences from free
trade agreements.
Experts believed that these agreements will make the garment
and textile industry’s export target accessible this year because they are
directly related to the main export markets of
When the Vietnam-EU FTA is signed, the tariff rate will fall
from 12 percent to 0 percent. Similarly, the TPP agreement will abolish
Despite of the above advantages, experts have said that
Ms. Raffaella Carabelli, chairwoman of the Association of
Italian Textile Machinery Manufacturers, said that besides diversifying the
export markets businesses should reduce the reliance on import material
sources for successful integration.
Sharing the same view deputy chairman of the Vietnam
Association of Garment and Textile Le Tien Truong said that localization rate
increase is one of factors helping businesses improve their competitiveness
and products’ added value.
From now until the agreements are signed and take effect,
businesses should invest in material production, link fibre production with
cloth production and garment making to improve the supply chain, he added.
They should quickly change from processing with high material
import ratio into all-in production to meet customers’ demand and increase
the added value of their products, he said.
Thaco leads local auto market last year
Truong Hai Auto Joint Stock Co. (Thaco) overtook
The figure beat the target of over 35,100 units Thaco set last
May. Last year also saw Thaco’s sales reach a 10-year high.
With sales of 42,338 autos in 2014, Thaco accounted for 32% of
the total units sold by members of the Vietnam Automobile Manufacturers
Association (VAMA), which dominates the country’s automobile market.
Thaco is the only company in the country that manufactures and
assembles cars, trucks and buses with local content of 16-46%.
The company attributed its success to the stable growth of
certain brands whose vehicles are distributed by Thaco such as Kia (
Particularly, Thaco sold as many as 21,000 commercial vehicles
last year, a year-on-year rise of 41%, with a shift from heavy-duty trucks to
mid-duty ones and tractors. Some commercial vehicles with good business
results were from
As for cars, Kia was the most successful brand with sales of
over 11,200 units last year, rising by 26% against 2013 while the sales of
Mazda nearly doubled those recorded in 2013 to reach 9,438.
Regarding high-class autos, Thaco delivered 100 Peugeot units
to customers.
Thaco has a manufacturing and assembly complex located in
Thaco looks to sales of around 51,000 units this year,
including 26,800 cars and 24,700 commercial vehicles.
FDI disbursements higher than new approvals in Dong Nai
Foreign direct investment (FDI) disbursements stood at US$2.3
billion in
Bo Ngoc Thu, director of the Dong Nai Department of Planning
and Investment, told a meeting last week on the province’s socio-economic
performance last year and this that FDI disbursements were 2.3 times over
2013 and accounted for nearly 19% of the nation’s total.
That was the highest FDI disbursement level in Dong Nai. Thu
credited the outstanding achievement to the southern province’s effort to
attract investors with financial capacity, prestigious brands and good
markets.
The achievement was of great significance because the province
worried the worker protests against
Last year, foreign investors registered over US$1.73 billion
for fresh and operational projects in
Thu said most of the new projects were licensed in high
technology, friendly-environment, supporting, agriculture and services
industries in line with the province’s policy.
Thu said the strong increase in new FDI pledges also resulted
from the province’s streamlined investment, tax and customs procedures and
its investment promotions in such potential markets as
Despite this success, Dong Nai aims for US$900 million to US$1
billion in registered FDI and disbursements of US$1 billion this year. Thu
said the province would continue attracting investments in high technology,
friendly-environment and supporting industries, among others.
So far, the province has licensed 1,457 FDI projects with
combined capital of nearly US$26 billion. Of them, the valid projects number
1,131 with total capital of US$21.49 billion.
Farming sector to ramp up exports in 2015
The agricultural sector will seek strong growth in production
and business this year, after recording increases in exports last year,
according to the Ministry of Agriculture and Rural Development (MARD).
In 2015, the agricultural sector expects to see an increase of
3-3.3 percent in gross domestic product (GDP), a year-on-year surge of
3.5-3.7 percent in the value of production and 32 billion USD in the value of
farming exports, forestry and seafood products, compared to 30.8 billion USD
in 2014, reported vietnamplus.vn.
Also, the agricultural sector hopes to focus on increasing
high added value agricultural products, efficiency and sustainable
development.
In 2015 the local economy is expected to further integrate
into the global economy, which will cause the agricultural sector to continue
reviewing and adjusting plans and structures of production to increase
productivity, as well as the quality and efficiency of exports and local
markets, said Minister of Agriculture and Rural Development Cao Duc Phat.
To raise the total export value of the sector to 32 billion
USD this year, the ministry will actively work to implement existing
multilateral and bilateral agreements, including with the World Trade
Organisation and regional free trade commitments.
Officials noted that it will stand side by side with exporters
by updating them on foreign markets' latest trade policies and jointly
devising feasible market strategies for added-value products.
To extend its commercial reach, the ministry will also promote
marketing activities and promptly deal with technical and trade barriers.
According to the MARD, Vietnam gained a year-on-year increase
of 11.2 percent in the export value of farming, forestry and fisheries
products to 30.8 billion USD for 2014, despite lackluster demand in markets
throughout the world.
The farming, forestry and fisheries sector also posted an
estimated 9.5 billion USD in its trade surplus, a rise of 7.7 percent.
The ministry said, in 2014, that the value of most export
products has surged against previous years, though 2014 has not been a bright
year for the consumption of farm products at home or abroad.
Demand for farm products on the world market has continued
falling since 2012 because key export markets of Vietnamese farm products,
such as the European Union (EU), the US, Japan and the Philippines, have seen
slow recoveries and low purchasing power to directly affect exports from
Vietnam.
However, seafood and forestry exports had strong growth in
export values to push the sector's total export value up last year.
Seafood took in 7.92 billion USD, marking a yearly growth of
18.4 percent, with the US making up 21.81 percent of the total export value
and becoming the leading seafood importer for Vietnam.
Also, wood and wooden products enjoyed an increase of 11.1
percent in earnings, at 6.2 billion USD last year. The US, China and Japan
are the largest buyers of wood products, accounting for 66 percent of the
total export volume.
Nearly 322 bln VND for rice farming development
The Prime Minister has decided to spend additional 321.6
billion VND (15.1 million USD) from the State budget on rice field
development and protection.
The money will be allocated to 18 localities across the country,
including Ha Giang (7.4 billion VND), Hai Phong (16.4 billion VND), Nam Dinh
(38.6 billion VND), Ha Tinh (29.4 billion VND) and Ca Mau (24 billion VND).
Vietnam ’s 2014 rice production was estimated at 28 million
tonnes, equivalent to 45 million tonnes of paddy, up almost 800,000 tonnes
over 2013, according to the Ministry of Agriculture and Rural Development.
The country exported 6.5 million tonnes of rice worth about 3
billion USD last year. Major export markets for Vietnamese rice include
Singapore, mainland China, Hong Kong, Cote d'Ivoire, Algeria and Indonesia.
Vietnam sees bright prospects for labour exports in 2015
The number of guest workers working abroad is predicted to
increase in 2015, especially as an ASEAN Economic Community is established
within the year, said Tong Hai Nam, Deputy Head of the Overseas Labour
Management Department (OLMD).
The Ministry of Labour, Invalids, and Social Affairs (MOLISA)
is launching a project to support the conveyance of Vietnamese labourers to
foreign markets in accordance with national agreements and labourer supply
contracts between domestic companies with foreign partners, Nam revealed.
According to MoLISA Deputy Minister Pham Minh Huan, the
ministry will continue to seek out new markets with good working conditions
and high wages, while simultaneously maintaining traditional markets in 2015.
Emphasis will be also placed on intensifying training for
qualified labourer sources, as well as promoting the signing of
skilled-labourer contracts, Huan said.
Vietnam sent a record-high 105,840 guest workers abroad in
2014, 110 percent of the year's target, according to statistics from the
OLMD.
Compared to 2013, the number of Vietnamese guest workers sent
to Taiwan increased to 62,000 from 46,000, while those working in Japan rose
from 9,600 to nearly 20,000.
Nearly 7,000 guest workers were sent to the Republic of Korea
(RoK), 5,000 to Malaysia, 4,000 to Saudi Arabia and 1,000 to Qatar, all below
previous rates. Compared to 2013, the number of workers in these four markets
dropped by about 5,000.
According to Nam, the record numbers of guest workers sent to
Taiwan can be attributed to the improved management of labour export
companies and the fee reduction policies for workers in Taiwan, while the
territory’s economic development policies have created greater demand for
guest workers.
In addition to key traditional markets, several newly emerging
markets with high incomes will open more opportunities for guest workers,
including Africa, the Middle East, and Japan, according to the MoLISA.
Vietnam will also sign agreements in several fields with
Angola and Saudi Arabia this year, which will facilitate greater labour
export to these countries, said the ministry.
There is also potential to send Vietnamese guest workers to
Japan to work in construction, mechanics and manufacturing, agriculture, and
food processing between now and 2020.
Many highly skilled Vietnamese guest workers will also have
more opportunities to work abroad under ASEAN agreements to allow freer
movement of workers with the formation of the ASEAN Economic Community, Nam
noted.-
Businesses in Binh Duong seek 45,000 unskilled workers
Enterprises in Binh Duong province, one of the southern region’s
economic centres, need to recruit over 45,000 unskilled workers in 2015 to
meet their production demands in garment, footwear and wood manufacturing
fields.
According to the province’s employment centre, more than
21,000 unskilled jobs were available during its first job exchange session on
January 11, offering a monthly salary of 4-5 million VND (235 USD).
The businesses looking to hire new employees include Truong
Thanh Wood Industry Company, Apex Vietnam Co., Ltd, and Sheico Vietnam Co.,
Ltd.
Nguyen Thanh Phuong, head of the job introduction office, said
that this year the office continues to help local businesses take part in
labour linkage programmes with other provinces to attract workers.
Last year, businesses in the province generated jobs for more
than 46,000 labourers. Over 4,000 businesses registered to recruit 70,000
labourers at job exchange sessions during 2014, but only 37,000 people were
ultimately employed.
Ornamental trees causing headaches for growers
Early blossoms, a late Tet and bad weather are creating a
headache for orchardists growing ornamental trees to mark the festive
holiday, with growers in HCM City fearing big losses.
“My family grew nearly 1,000 peach trees this year," said
Nguyen Thi Xuan, a grower from Tay Hoa’s Nhat Tan area.
"As this year’s festival will come one month later than
usual, we’ve seen many early peach blossoms and have decided to sell peach
branches to earn some money from now on at between VND50,000 and VND100,000
each,” Xuan said.
Nguyen Quang Vu, an owner of a peach orchard in Nhat Tan, said
his family grew nearly 1,000 curved peach trees this year. Hundreds of
regular clients have placed orders to buy or rent peach trees for the Tet
holiday.
Normal peach trees are priced at from VND2m to VND3m each, while
prices of nicely curved peach trees reach between VND30m and VND40m each.
Rental fees range from VND10m to VND15m per well-shaped peach tree.
But kumquat growers in Tu Lien and Quang An areas of Hanoi say
trees have been dying due prolonged rain.
“Half of our total 150 kumquat trees have died and most of
those survive are stunted," said Nguyen Vu Khanh, owner of a kumquat
orchard in Tu Lien area said.
Prices of kumquat trees start from VND500,000 to more than
VND10m.
Orchardists in Hanoi are complaining up to between 20 and 30
percent of their kumquat trees have died due to bad weather.
Meanwhile apricot growers in HCM City are worrying about big
losses as apricots have blossomed too early.
“More than 80 out of total 300 apricot trees in my garden have
blossoms. I'm worried we may not have good trees for sale when Tet really
comes,” said Tran Thien An, owner of an apricot orchard in Thu Duc District.
The same situation is recorded at many other orchards in Cu
Chi and Nha Be Districts and District 12, meaning big losses for them. Many
growers have invested billions of VND on apricot trees this year.
Prices of apricot trees range from VND500,000 to VND50m each.
“Early apricot blossoms mean big losses for us as if we can’t
sell and we’ll have to wait for the next festival and invest more on the
caring of the trees,” said Vo Dong Hau, who has a decade experience in
apricot growing.
Amata to invest in three more projects in Dong Nai
Thailand’s industrial estate developer Amata Corporation will
invest in three hi-tech and urban area projects in Dong Nai Province
following the success of a large-scale industrial park in the southern
province.
Bo Ngoc Thu, director of the Dong Nai Department of Planning
and Investments, told the Daily at a media briefing last week that the
province had agreed on the locations for the projects to be developed by
Amata Vietnam JSC and Amata VN Public Limited Co.
Amata VN Public Limited Co. will be the investor of an urban
area covering 753 hectares in Tam An Commune in Long Thanh District, while
the two remaining projects – a hi-tech park and an urban area – will be
developed by both affiliates of the corporation on 410 hectares and 122.3
hectares respectively in Long Thanh District.
The provincial government has set up a task force to support
the Amata companies to boost site clearance and compensation. The investors
are now in the process of measuring land and hiring consultants for the
projects.
The cost of the three projects remains unknown. The
authorities of Dong Nai Province have not revealed when they award the
investment certificates for the projects.
Previously, Amata Corporation signed an agreement with the
provincial government to develop a hi-tech and an urban area in Long Thanh
District at a first-phase cost of US$530 million.
The corporation also plans to invest in a large-scale hi-tech
industrial park in the northern province of Quang Ninh and a big industrial
complex in the central province of Binh Dinh.
VASEP describes ice-to-fish ratio rule as unreasonable
The Vietnam Association of Seafood Exporters and Producers
(VASEP) has described the regulations on tra (Pangasius) fish fillet moisture
content and ice-to-fish ratio as unreasonable, saying they could hurt the
seafood processing sector.
In response to the industry’s complaints, the Ministry of
Agriculture and Rural Development recently delayed implementing the
provisions in Decree 36/2014/ND-CP that force seafood processors to ensure
moisture content of 83% and a 10% ratio of ice to fish.
Speaking to the Daily, VASEP vice chairman Nguyen Huu Dung
said the new regulations could not work. He stressed the postponement just
eased concerns of enterprises but did not completely solve the issue.
The rules are too strict, according to Dung. The Government
should regulate food safety issues rather than imposing criteria on product
quality.
“Fish are a product of national significance,” Dung
said.
According to VASEP, there is a misperception of Vietnam’s
monopoly on the tra fish market, which leads the country to set its own
rules. In reality, tra fish was an alternative product for the world’s
whitefish market when the UN Food and Agriculture Organization (FAO)
tightened controls on whitefish caught in the cold sea regions in 2002-2008.
But FAO has relaxed the controls, resulting in the volume of fish catches
increasing and thus affecting the demand for tra fish.
VASEP is also concerned that the new regulations will push up
the price of Vietnamese tra fish fillets, making it hard for local exporters
to compete.
Local tra fish exporters have also voiced outcry over the
regulation that requires exporters to register their export contracts with
the Vietnam Pangasius Association (VN Pangasius) and the latter will check
whether exporters can meet relevant requirements or not before certifying
them for shipment. The association’s certification is one of the conditions
for customs clearance.
The decree also forces seafood enterprises to have tra fish
farms in the regions which have been zoned and approved by the agriculture
ministry and relevant agencies.
“Such rules do not help enterprises as the National
Agro-Forestry-Fisheries Quality Assurance Department (Nafiquad) all knows
about enterprises and their tra farms. There is no legal basis for an
association to certify contracts between enterprises,” Dung said.
In addition to a fee of VND100,000 (US$4.67), exporters must
pay VN Pangasius for each 20 tons of tra fish certified, and exporters will
have to spend more time completing paperwork required by the association.
Vietnam exports 650,000 tons of tra fish a year, according to
Dung.
“Why does the agriculture ministry require new procedures for
enterprises while the Prime Minister has ordered agencies to streamline
administrative procedures?” Dung said.
Therefore, VASEP called for the ministry to require exporters
to provide clear information about product quality instead of applying the
regulations on the moisture content and ice-to-fish ratio, and abolish the
association’s certification of tra fish export contracts.
Office rents drop in Hanoi
Falling office rents in Hanoi are offering tenants more
choices to lease space with lower rents but better services and facilities,
according to property service provider Savills Vietnam.
Do Thu Hang, head of research and consultancy at Savills
Vietnam, said office tenants in the capital city now have more opportunities
to lease offices at reasonable prices as the landlords of high-end and
low-end segments have adjusted down rents.
According to Hang, it was tough for companies to find offices
of Grade A in Hoan Kiem District at US$25 per square meter in the past but it
is possible these days despite limited supply.
According to Savills Vietnam, there was only one new office
project coming into operation in Hanoi in the final quarter of last year,
bringing the total supply of office space for lease in the city to around
1.49 million square meters. Average occupancy in the period rose 4%
quarter-on-quarter to 77%.
Rents of Grade A office space in the fourth quarter of last
year edged down 3% against the previous quarter while those of Grade B and
Grade C offices fell by 1%. The current average rents of Grade A, Grade B and
Grade C offices are US$26.6, US$16.7 and US$11.7 per square meter
respectively.
Savills Vietnam estimated Hanoi will have 240,000 square
meters of offices from new projects this year and an additional 300,000
square meters in 2016-2017.
Hang said office rent declines between the first quarter of
2013 and the end of last year pushed up occupancy in all segments, especially
offices of Grade C. Occupancy in the downtown area of Hanoi improved after
the landlords of many buildings slashed rents and relaxed leasing terms.
Occupancy at some office buildings of Grade A in the fourth
quarter of last year picked up nearly 30% over the previous quarter while the
occupancy rates at office buildings of grades B and C jumped 21%. The
occupancy at office buildings in the downtown area bounced back after five
consecutive quarters of declines.
The improvements in office occupancy in Hanoi downtown,
according to Savills, also resulted from promotions such as free rents when
offices are being decorated or free space for car parking in addition to
lower rents.
A number of Grade A office buildings in the downtown area of
Hanoi like Hanoi Tower, Pacific Palace and 63 Ly Thai To Building have
upgraded their facilities and offered flexible leasing terms to retain
tenants and attract new customers.
Savills Vietnam forecast future supply of offices for lease in
Hoan Kiem District will be limited with only around 5,000 new square meters
in service between and 2017. However, office rents in Hanoi will continue the
downward trend due to ample supply in other parts of the city, especially in
the segment of Grade A buildings.
Local producers frown on sugar import proposal
The Ministry of Industry and Trade’s proposal to allow
importing 50,000 tons of sugar from Laos at an import tax rate of 0% has
triggered concerns among local sugar refineries.
Local sugar firms fear that sugar imports, if approved, would
cause the already-abundant sugar supply to swell on the domestic market. The
country will face a sugar oversupply of around 700,000 tons this year.
According to local sugar firms, a Laos sugar refinery owned by
Vietnam’s Hoang Anh Gia Lai Joint Stock Company (HAGL) would export sugar to
Vietnam in accordance with the ministry’s proposal.
The director of a sugar mill, who asked not to be named, said
the ministry’s proposal for allowing the sugar import at a tariff of 0% is
unfair to domestic sugar producers.
“Due to the steady price declines in the past time, domestic
sugar refineries have lowered the sugarcane buying prices in the 2014-2015
crop and they have been criticized for making life hard for farmers,” the
director said.
According to Nguyen Hai, general secretary of the Vietnam
Sugarcane and Sugar Association (VSSA), HAGL was permitted to ship over
30,000 tons of raw sugar from Laos to Vietnam and the importer was Bien Hoa
Sugar Company, which then refined and re-exported the sugar.
As explained by Hai, domestic enterprises were in trouble last
year when exporting sugar to China as there were periods when the sugar price
in China was lower than the selling prices of sugar plants in Vietnam.
Statistics of VSSA showed that only 181,000 tons of sugar had
been sold to China as of last November, well below the 325,000 tons in 2013.
Nguyen Van Loc, vice chairman of the company, explained that
transporting unrefined sugar from Laos to Vietnam for refining and exporting
to China pushed up sugar prices in Vietnam.
According to Hai, to ensure a level playing field for domestic
sugar firms, the Government should include the 50,000 tons into the import
quota in 2015 and the volume must be subject to an import tax of 5% in line
with the existing regulations.
In a document sent to the trade ministry early this month, the
Ministry of Agriculture and Rural Development agreed on importing 81,000 tons
of sugar this year.
HAGL said in 2013 that the company’s sugar production cost in
Laos was around VND4.4 million per ton while the average cost in Vietnam was
VND12 million per ton.
Therefore, chairman of HAGL Doan Nguyen Duc has many times
reassured domestic enterprises that HAGL sugar could be sold to anywhere and
that domestic enterprises should not worry about the volume of sugar which
HAGL sends back to Vietnam.
Nonetheless, local enterprises asked why the company did not
choose to export sugar directly to China but shipped it to Vietnam for
refining before it is exported elsewhere.
The unnamed director said the low production cost as claimed
by HAGL may be an exaggeration.
The Government will make a final decision on the trade
ministry’s proposal based on comments of relevant agencies like the Ministry
of Finance and the Ministry of Agriculture and Rural Development.
Steel oversupply sparks competition
Competition among construction steel producers has turned
fiercer on the domestic market as supplies have far surpassed demands.
The local demand for construction steel this year is estimated
at six million tons but the combined output of steel mills nationwide could
be 11 million tons, the Ministry of Industry and Trade forecast in a recent
report on the sector.
Not only construction steel, there is an oversupply of other
steel products such as ingots, galvanized sheets and color-coated sheets as
their supplies are 1.5-2 times higher than needed.
For example, steel ingot output is calculated at 10 million
tons a year while domestic demand for the product is only 5.5 million tons.
The annual output of galvanized and color-coated steel sheets is 2.5 million
tons but demand is only 1.3 million tons a year.
Pham Chi Cuong, former chairman of the Vietnam Steel
Association (VSA), told the Daily on January 12 that previously local
authorities were competing with one another in licensing steel projects
without caring about the master development plan for the steel sector.
“Back to the time when I was chairman of VSA, the association
asked relevant agencies and local authorities not to license so many steel
projects as this could result in an oversupply,” Cuong said. “Overcapacity is
a waste of investment.”
Cuong pointed out that many investors have pulled out of their
licensed steel projects in recent years due to oversupply and weak financial
positions as they could not afford advanced technologies to make good
products at competitive prices.
Only investors with deep pockets can survive troubled times as
they can apply high technologies to produce quality products for domestic
consumption and export, Cuong said.
“Although the steel sector last year posted a year-on-year
growth rate of 10%, many enterprises in the sector have incurred losses and
gone bust. As competition grows stronger in the north, the number of
dissolved firms there is higher than in other parts of the country.”
In a document sent to the industry ministry late last year,
VSA vice chairman Nguyen Van Sua proposed the ministry enhance its management
and review steel projects to remove unviable ones.
VSA also suggested relevant ministries and departments set up
technical barriers to curb steel imports.
Fake cookies target Tet in La Phu Commune
Popular cookie brands, including imports, are being
counterfeited at La Phu Village, La Phu Commune in Hanoi's Hoai Duc District
to take advantage of high demand for the upcoming Tet festivities, though
local authorities have yet to act in any concerted manner.
Tan Hoang Gia Company is promoting cookies in packaging
similar to several well-known brands, but using slightly different names to
dupe buyers. The Danish butter cookies, Danisa, is being faked and sold as
"Damisa", while the King Henry cookies from Poland are being faked
as "Henry".
The phoney cookies are also being sold at significantly lower
prices. A box of Danisa normally costs about VND107,000 (USD5) but Tan Hoang
Gia is selling 16 boxes of Damisa at VND218,000. "If you buy a whole
1.25-tonne truck, it's only VND10,000 per box," said a representative of
Tan Hoang Gia Company.
Even some well known Vietnamese brands are being faked. The
cheap Chinese cookies are imported and repacked with false names, labels and
expiration dates.
At Hoang Hiep Factory, tools to make cookies and package
labelling were found, with he edible contents left opened to mosquitoes and
bugs. Some equipment appeared not to have been cleaned for some time.
Employees at Khoi Nguyen Phu Factory do not wear masks or
gloves when making cookies. "At this time of the year, the machines run
through the night. We can't make enough to export to other provinces,"
said an employee.
Since such famous brands can be easily detected in big cities,
most of the cookies are being sold in rural and mountainous provinces such as
Lai Chau, Son La and Dien Bien. Traders say that while they are making big
profit, consumers are also getting access to cheaper products.
Local authorities maintain everything is in order.
In January 2014, police arrested Nguyen Van Ban and seized
1,136 boxes of fake jams for Tet. Du Quoc Bao, vice chairman of La Phu
People's Committee said all production facilities have licenses and met
hygiene standards.
"About whether they fake famous brands of cookies and
beverages or not ... we don't have authority to deal with this issue,"
he said.
Seafood exporters depend much on farmed fish
Vietnam’s seafood exporters will continue to rely on suppliers
of cultivated fish as a majority of local fishing boats can operate along the
coast where fisheries resources are being depleted.
The Ministry of Agriculture and Rural Development estimated
last year’s fish catches at over 2.7 million tons, up 4% against 2013, while
the volume of cultivated fish picked up 5.5% to 3.4 million tons.
Between 2010 and 2014, the volume of netted fish jumped by
only 250,000 tons while the output of farmed fish went up 700,000 tons.
This year, the ministry targets to farm and catch 6.65 million
tons of fish, up 5.5% against last year. Of this volume, fish catches are put
at 2.7 million tons, up a mere 0.7%, and cultivation takes the remainder, up
9.7%.
The figures showed there remain hurdles to increasing fish
catches though the potential of Vietnam’s marine resources is high.
A study of the Research Institute for Marine Fisheries on
marine resources in the 2011-2013 period indicated fisheries reserves in
Vietnam’s seas were around 4.25 million tons.
The sea of the southeast region accounts for the highest
percentage of Vietnam’s fisheries reserves with over 1.1 million tons. The
East Sea’s middle part has over one million tons while fish reserves in the
waters of the northern, central and southwest regions range from 610,000 to
750,000 tons.
However, 68% of Vietnam’s fisheries reserves are mainly
offshore while coastal reserves take only 12%.
Therefore, the lower-than-expected capacity of the local
fishing boat fleet is one of the major reasons why the volume of fish catches
has increased insignificantly in the past year.
According to the agriculture ministry, boats of over 90 horse
power make up less than 28,300 out of 130,000 fishing boats in operation in
the country.
Analysts: Potential growth in Southeast Asian capital markets
in 2015
2015 is expected to be an important year for many Asian
countries, particularly when the ASEAN Economic Community (AEC) is slated to
be formed by the end of the year, promising to drive economic expansion in
Southeast Asia, according to economists.
Stephen Grundlingh, co-CEO for Singapore and regional head for
Southeast Asia at asset manager Franklin Templeton Investments, said that
emerging markets are forecast to grow at 5 percent this year, as compared to
2.3 to 2.5 percent in developed markets.
There is a massive opportunity over the long term for
investors, he said, citing major reforms underway in many Asian countries,
from China, India, the Republic of Korea to Indonesia, and Japan’s huge
economic stimulation package.
According to Grundlingh, Franklin Templeton Investments
expects massive inflows of capital into Asia along with the upcoming free
trade agreement introduced by the AEC will drive the economies over the
region quite significantly.
To tap the growth prospects, Franklin Templeton Investments
has launched the Templeton ASEAN Fund and planned to set up more equity-funds
focused on Asia and ASEAN in particular.
Franklin Templeton Investments has 899.5 billion USD in assets
under management and is one of the top cross-border mutual fund companies in
the world, according to Lipper FMI-Thompson Reuters as of Dec 31, 2013.
Freshwater fish output in Ca Mau to drop dramatically
Freshwater fish output of the southernmost province of Ca Mau
is forecast to stand between 20,000-22,000 tonnes in 2015, falling by 10,000
tonnes from last year, a local official said.
Such a decline is attributable to fewer rainfall and storms
that triggered a lack of sufficient water for the growth of freshwater fish
stocks, a shortage of fries supply, and the pre-season fishing.
Nguyen Van Tranh, Deputy Director of the provincial Department
of Agriculture and Rural Development, said the sharp fall will affect the
income of thousands of local farmers and drive up fish prices, especially in
the prior Tet (Lunar New Year Holiday) period when purchasing power usually
soars.
Freshwater fish prices have hiked up, said Nguyen Thi Phuoc, a
fish trader at Ca Mau market. Prices of snakehead fish rose from 80,000 VND
to 120,000 VND per kg while that of tilapia also increased to 150,000 VND per
kg from 120,000 VND.
Being surrounded by sea on three sides, fishing is an
important industry in Ca Mau province. However, fish farming has also been
thriving in the locality. The southernmost province is part of the Mekong
Delta key economic region, which also comprises Kien Giang and An Giang
provinces and Can Tho City.
Hoa Binh seeks to boost tourism by 2020
The northern province of Hoa Binh is hoping to receive more
than 3.32 million visitors by 2020, generating a revenue of nearly 2.5 trillion
VND (118.5 million USD), which they intend to double by 2030, ultimately
bringing 11 trillion VND (520.3 million USD) into the province.
The figures were released in the recently-launched tourism
development plan for the province through 2020, including a vision for 2030.
Under the plan, the tourism sector, which is expected to
create nearly 47,000 jobs for local workers, will need an investment of more
than 23 trillion VND (1.1 billion USD) by 2030, of which 85 percent is
expected to come from foreign investors.
In order to achieve these targets, the sector aims to improve
infrastructure facilities, and expand high-quality services to enhance its
competitiveness.
Director of the provincial Department of Culture, Sport and
Tourism Bui Ngoc Lam said the province has made targeted investments to
develop infrastructure facilities surrounding the Hoa Binh reservoir, one of
the national key tourist sites.
The promotion project has involved a number of businesses,
including Hoa Binh Tourist JSC, which has invested more than 100 billion VND
(5.1 million USD) in building high-end hotels and yachts to attract more
international tourists.
With the advantage of its proximity of Hanoi, Hoa Binh has
recently attracted several investment projects, the most remarkable of which
were a complex of recreational park, ecotourism and hot spring resort in Kim
Boi district and the Dau Rong (Dragon Head) cave system in Cao Phong
district.
Additionally, more attractions have been developed in Mai Chau
district, a popular destination for foreign visitors, including the Dua
(Coconut) island in Da river in Chieng Chau commune, Vit co xanh (Mallard)
ecotourism site, a museum on Muong ethnic minority culture in Luong Son
district, and the Hoa Binh Hydro power plant, among others.
In 2014, the province welcomed more than two million visitors,
including 180,000 international tourists, generating more than 700 billion
VND (33.3 million USD).
Vietnam attends Berlin Agriculture Ministers’ Summit
A Vietnamese delegation led by Minister of Agriculture and
Rural Development Cao Duc Phat participated in the seventh Berlin Agriculture
Ministers’ Summit in Germany on January 17 as part of the Global Forum for
Food and Agriculture (GFFA).
In an interview with a Vietnam News Agency reporter in Berlin,
Minister Phat said the event focused on the role of agricultural development
to ensure food security for people all over the world.
Delegates at the event stressed that taking advantage of new
opportunities to develop eco-economy should be combined with sustainable
development and food security, he noted.
The event also addressed the future opportunities, potential
and challenges that bio-based agriculture brings about, Phat added.
The GFFA is an international forum on central issues of global
agriculture and the food sector, which takes place annually during the
International Green Week from January 15 to 17. This year it draws the
participation of 70 countries, including representatives of Food and
Agriculture Organization (FAO) and the World Bank (WB).
Seminar highlights agricultural restructuring
Agricultural restructuring was the main theme of a seminar in
Hanoi on January 17 co-organised by the Ministry of Development and Rural
Development (MARD) and the Vietnam National University of Agriculture (VNUA).
Delegates at the seminar confidently affirmed the agricultural
sector has benefited tremendously from the past 30 years of the renovation
process and Vietnam is now reaping the benefits from the long and arduous
work.
In 2014, the turnover for the sector was over US$30 billion
and it has become an important anchor for the nation’s economy, particularly
given the global economic downturn over the past several years.
Prof. Dr. Do Kim Chung from the VNUA said Vietnam’s
agricultural restructuring process should now turn to focusing on
restructuring public investment and services to develop the sector in
accordance with the market requirements.
Delegates agreed that one of the top priorities of
agricultural restructuring should be to ensure nutrition and food security
for the nation. It needs to be implemented in such a manner to balance the
farmers’ demand for food while maintaining competitiveness in the
marketplace. Science and Technology Minister Nguyen Quan in turn said
agricultural restructuring should now focus on installing the latest and most
modern machinery and equipment with an eye to developing higher added value
agriculture products.
Minister Quan said the State is urging farmers and producers
in the sector to concentrate on developing the national products of rice,
fish and mushrooms for both food and medical use.
If as a nation, we accomplish this task Quan said, he was
confident Vietnam’s agricultural sector would make breakthroughs, become
sustainable and remain a solid anchor for the national economy.
Source :
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Chủ Nhật, 18 tháng 1, 2015
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