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BUSINESS IN BRIEF 19/6
Luc Ngan
lychee of the
Talking
to a Vietnam News Agency correspondent in
He added
that his company plans to import two additional batches of lychee this month
to meet market demand, revealing that the company will also import longan
berries from the
Duong
also underlined the need to build a brand name for lychee and longan berries
to generate prestige and improve the goods’ competitiveness.
Apart
from overseas Vietnamese living in the country, Vietnamese lychee was also
introduced to French consumers on the occasion of the Vietnam-France
friendship festival held on June 6 in
Luc Ngan
lychee brand name has received protection certification in
Bac
Giang province has mapped out a specific plan to develop lychee in Luc Ngan
district to ensure adequate supply for export to new markets, developing 150
hectares under GlobalGAP standards in 2016 and 250 hectares in 2020.
Meanwhile,
high-quality Vietnamese lychee meets the standards of the Canadian market,
according to a Canadian importer.
Rex Yu
from Manley Sales Company, who imported the first batch of Vietnamese lychee
on June 10, told Vietnamese News Agency correspondents that Vietnamese lychees
meet quality requirements of the Canadian Food Investigation Agency (CFIA).
He
expressed his hope that Vietnamese lychee would secure a share in the
Canadian market as Vietnamese fresh dragon fruits and longan have, both of
which are currently imported by his company.
The
company plans to distribute Vietnamese lychee across the country, from
The
Vietnamese Embassy in
It also
facilitates access to local investors and legal information for domestic
businesses to ensure product quality, thus enhancing their competitiveness in
the Canadian market.
Lychees
and longan berries are
The
country exported nearly 900,000 tonnes of fruit in the past five months, with
dragon fruit taking the lead with 350,000 tonnes, followed by watermelons
(250,000 tonnes), longans (110,000 tonnes) and bananas (30,000 tonnes)
Vietnamese
bananas enter Japanese market
This is
the first batch shipped under a contract between the U&I Agriculture
Corporation (Unifarm) and its Japanese partner.
The
bananas were grown at the An Thai hi-tech agricultural park across more than
411 hectares of land in southern Binh Duong province.
The park
is expected to become a modern, productive and high-quality agricultural
community applying advanced technologies transferred to farmers under
contracts with Unifarm. The company intends to replicate the model across
Confidence
booms as domestic economy blooms
The
government and the national Assembly have expressed their confidence in the
country’s economic prospects.
Prime
Minister Nguyen Tan Dung said that the economy would grow higher in this
year’s second quarter and “will definitely reach its targeted 6.3% growth
rate” in 2015. For 2016-2020, the rate would be 6.5%-7% per year, Dung said.
The
economy grew 6.03% in this year’s first quarter, according to the government
report.
“We
succeeded in curbing inflation at a low level of 0.83% in the first five
months of the year. We will keep it below 5%, not only for this year, but
also for the years to come. This will greatly benefit production and
consumption”, he said.
National
Assembly Deputy Chairwoman Nguyen Thi Kim Ngan told the legislature that
based on positive socio-economic achievements in 2014 and this year’s first
five months, many National Assembly members agreed that the economy had rosy
prospects ahead.
Deputy
Tran Hoang Ngan from
“Notably,
He cited
the International Monetary Fund, which recently announced that the
government’s current account enjoyed a surplus over the past four consecutive
years, currently at 5.4% of gross domestic product (GDP). Meanwhile, the
2006-2010 period suffered from a deficit of 6.5% of GDP.
“Additionally,
economic restructuring has helped reduce the number of weak banks and bad
debts. Credits grew 5% in the first five months of this year, the highest
rise over the same period in the past years’, Ngan said.
Dung
stressed that in 2016 bad debts would be reduced to only 3%.
“We are
applying study solutions to solve these issues.”
According
to the Vietnam Consumer Confidence Index for May 2015, released this month by
ANZ-Roy Morgan Research, the index stayed at 140.2 points in May, far higher
123.3 points in the same period last year, and higher than the long-term
average of 131.8 for May every year prior.
Regarding
private financial health, 36% (up 1% on-month) of respondents said they were
better-off financially than one year ago. Only 18% said they were worse off.
Some 56%
said they and their family expected to be better-off financially by May of
2016, versus only 5% who expected to be worse off over the next year.
Thinking
of economic conditions in
Additionally,
61% said they would see the economy have “good times” over the next five
years, while only 5% said “bad times”.
Sacombank,
KCCI team up for customer network expansion
Saigon
Thuong Tin Commercial Bank (Sacombank) and the
Both
sides will join hands to help Korean enterprises and Sacombank clients
explore cooperation and investment opportunities in
Sacombank
and KCCI will also support each other in market surveys, and investment and
trade information.
KCCI has
two representative offices in
According
to a statement released on June 10 by Sacombank, Korean investors registered
US$7.32 billion for 505 new projects and 179 operational projects last year.
These projects are in manufacturing, processing, real estate, hotel and other
sectors.
Auto
imports contribute much to city’s tax revenue increase
HCMC’s
tax collections in the year’s first half are estimated to rise to VND46.5
trillion, with completely built-up auto imports contributing a major part.
The HCMC
Customs Department put imports of under-nine-seat CBU autos in January-June
at US$330 million, up a staggering 200% against a year ago. This strong
increase contributes an additional VND5 trillion to the city’s tax revenue in
the period.
HCMC is
one of the localities with high CBU auto imports. Imported autos are
currently subject to import duty, special consumption tax, value-added tax
(VAT) and registration fee.
Besides,
the higher tax revenue in the city in the period is credited to more tax
collections from steel, apparel, footwear, computers and components. For
example, steel imports have gone up by around US$60 million year-on-year,
resulting in a tax increase of some VND300 billion.
Fuel
imports have seen a decline of 20% as the world oil price has dropped
significantly. However, tax and fee collections from fuels remain stable as
their environmental protection fees have tripled for certain products since
May 1.
The
department said of the VND46.5 trillion, export and import tax collections
account for VND19 trillion and VAT VND27.5 trillion. The total figure
represents nearly 52% of the whole year’s target.
However,
the city has seen tax collections in some areas shrinking. The VAT exemption
of imported fertilizers, animal feed and materials, agricultural machines and
tools, and offshore fishing boats since the beginning of this year has led to
a loss of some VND1.6 trillion.
In
addition, budget collections will lose approximately VND1 trillion as
This
year, the Customs Law allows enterprises to conduct export and import
procedures at any customs offices. Therefore, HCMC cannot collect taxes for
the goods which are imported via ports in HCMC but importers register for
customs clearance in other localities.
Called
“Institution Reform: From Vision to Reality” the study was discussed at a
seminar organized by the
Speaking
at the opening of the seminar, Pham Duy Nghia described
Nghia
said measures have been worked out to solve the country’s economic woes but have
not been implemented effectively. “I think institutions have failed to keep
up with reality.”
Institutional
reform requires legislative and judicial reforms. The 2013 Constitution and
political declarations in the past time have revealed a grandiose reform
program, but what
“We have
talked much (about reform). Now is the time to take actions,” Nghia said.
Huynh
The Du said the biggest question is how to reform and where to reform, not
what to reform.
Du
proposed establishing a reform alliance grouping the Party, the legislature,
judicial and administrative agencies, the private sector and civil society.
The leadership and guidance role of the Party should focus on policy
orientations for national development. Public feedback is important to the
process of adopting good policies.
The
Party needs to create a fair competitive mechanism for selecting talented and
ethical leaders, promote the rule of law in the country, build an
administration able to govern the nation and consider the private sector as a
partner in an alliance to make the country prosperous.
At the
seminar, economic expert Tran Dinh Thien, lawyer Tran Huu Huynh and other
experts were of the opinion that law enforcement agencies now have a stronger
voice than the legislative and judicial bodies. Therefore, they underscored
the importance of setting up a new mechanism to ensure a balance among these
bodies.
GMS
nations agree on stronger cross-border transport, trade
Countries
in the Greater Mekong Subregion (GMS) have agreed on measures to promote the
development of economic corridors, facilitate cross-border transport and
trade, and enhance cooperation and private sector participation.
Government
ministers and senior officials of
Stephen
Groff, vice president of the Asian Development Bank (ADB), said GMS leaders
strongly committed their countries would promote trade, tourism, industrial
development, and other economic activities along GMS economic corridors.
“The
development of new special economic zones, support for e-commerce, and other
activities that will be undertaken following on June 12’s forum will have a
transformative impact on businesses and communities in every GMS nation,”
Groff said.
In a
joint statement, ministers and senior officials from the six GMS countries
called for a Transport and Trade Facilitation Action Program to enhance the
cross-border flow of goods and people, and for a coordinated approach to
developing urban areas throughout the region.
They
also endorsed the Framework on GMS Cross-border E-commerce Cooperation, which
seeks to advance the development of cross-border e-commerce through shared
consumer markets.
The GMS
representatives emphasized the importance of involving local authorities and
communities, as well as the private sector, in corridor development.
According
to ADB, the Sixth Economic Corridors Forum (ECF-6) with the theme “Developing
Economic Corridors through Transport and Trade Facilitation & Economic
Zones” was held in Hanoi City in August last year.
Danang’s
tourism industry badly affected by MERS-CoV
The
outbreak of Middle East Respiratory Syndrome caused by
According
to the city Department of Culture, Sports and Tourism, the RoK has been among
top 10 countries with a large number of tourists to Danang. The RoK ranked
second with 107,008 arrivals to the city last year.
On
average, some 11,000 RoK tourists arrived in
Representatives
of Vietnam TravelMart, Omega, Vietravel and other travel agencies said that
the number of Korean inbound visitors and the city’s outbound tourists to the
RoK show a decline.
By June
11, the number of Korean tourists to Danang city through Omega Travel had
been down by 30-40%, Chang by 50%, and Vitours by 5-10%.
Meanwhile,
95% of Danang tourists cancelled their trips to the RoK in June.
Maize
imports rise as rice exports fall
Maize
imports in the first five months of 2015 are on the rise but rice exports are
on the decline, according to figures from the Ministry of Agriculture and
Rural Development.
The
country also imported 700,000 tonnes of beans and other materials for
processing of animal feed worth nearly $1.4 billion.
Meanwhile,
exports of rice from
In all,
the value of imported animal feed and other materials for the food processing
industry in the first five months amounted to nearly $2.3 billion, nearly
triple the total value of rice exports over the same period.
Authorities
have been urged to re-structure the country's planting systems, aiming to
reduce material imports while easing the pressure on rice consumption.
The
programme to re-structure rice plantation to other crops including maize
began in 2013 when the country's rice exports were stagnant.
However,
the programme has faced challenges in many localities across the country.
The
slump in the world's farm produce prices, including maize prices, has caused
local agricultural products to be less competitive than imported goods.
Maize
prices have dropped to less than VND5,000 per kg since the end of 2014,
making maize growers' profits lower than rice growers'.
It has
forced many farmers to return to rice cultivation.
Huynh
The Nang, chairman of Vietnamese Food Association, said that global demand
for rice had changed greatly compared to five to 10 years ago. Rice growing
countries have increasingly raised their output, while rice buyers have also
been promoting rice production.
"It's
time for Viet Nam to re-consider rice production and exports with an aim to
raise the added value of this product and a bigger effort to change rice into
more necessary crops," he said.
Wartchdog
warns of TV shopping risks
The Viet
Nam Competition Authority has warned consumers to be careful when shopping
via television channels (TV shopping) as it may pose a threat to their
consumer rights.
TV
shopping has become increasingly popular in recent years in
However,
the competition authority has pointed out that the greatest problems posed by
TV shopping are false advertising, lack of clarity in the origin of products,
deceptive reward programmes, and ignorance of consumers' complaints.
The
authority said that when shopping via TV channels, consumers have no
opportunity to test the products directly, so they may end up disappointed by
the products' quality or usefulness, which could differ greatly from what was
advertised.
Many
products sold through TV channels have been found to be of unclear origin and
poor quality, the authority said. According to consumers' claims, some of the
rewards they had received from TV shopping networks were fake or low-quality
products, or the customers had to pay a sum of money to receive the rewards.
In
addition, some firms were also ignorant of customers' attempts to return
products even though regulations stipulate that consumers have a right to
unilaterally terminate the contract within ten days if the product is not the
same as what was advertised.
A
variety of products are sold via TV shopping, such as cosmetics, jewellery,
supplementary foods, watches and gym equipment.
According
to the competition authority, consumers should verify information in advertisements
before purchasing products via TV shopping networks.
In
particular, customers should be careful with products for daily use which are
sold at extraordinarily high prices, such as shampoos, rinses, skin creams
and home appliances, as well as products which were advertised as premium
quality.
Consumers
can dial 1-800-6838 for support from a consultant, or they can send their
claims to the competition authority via the website www.bvntd.vca.gov.vn or
email bvntd@moit.gov.vn.
Binh
Duong sees $21.5b in foreign direct investment
Binh
Duong received nearly 2,550 foreign direct investment projects between 2010
and 2015, bringing the total registered capital to US$21.5 billion, the
provincial People's Committee's Chairman Tran Van Nam said.
He said
foreign direct investment (FDI) capital in the southern province was
estimated to exceed $1 billion this year.
The
provincial Department of Investment and Planning said the FDI projects had an
average capital of less than $10 million each, and the largest among them was
a $1.2-billion real estate Binh Duong New City project, invested by
About
12,370 firms received business licences between 2010 and 2015, raising the
total number of local companies to nearly 19,640, a two-fold increase from
the beginning of the decade.
The
total registered capital increased to more than VND146 trillion ($6.7
billion), 2.2 times higher.
During
the period, the total investment in the province reached VND263 trillion
($12.06 billion), eight per cent of which was contributed by the state
budget, while 43.1 per cent came from FDI.
The
industry will continue to be the locality's key economic driver to boost
urban, services and trade development in the next five years.
The
province's exports are also expected to expand at an average rate of 19.5 per
cent annually. Its foreign trade revenue is forecast to exceed $20 billion
this year, with $16 billion worth of imports and $4 billion of exports.
Vinamilk
inks dairy deal with Lam Dong
The Viet
Nam Dairy Products JS Co. (Vinamilk) has signed a framework agreement for
co-operation with
The deal
will help Vinamilk set up an area from where it will obtain fresh milk and
build large farms and a new milk processing factory to develop new products.
Lam Dong
has an "Agriculture – Farmer – Rural development" policy and the
co-operation will help make dairy cows a "key domestic animal" in
its agricultural sector, increase the ratio of animal husbandry and
contributing to local economic development.
Lam Dong
authorities have promised to create the best conditions for Vinamilk to build
two to three milk cow husbandry farms with a total of 10,000 cows and modern
technologies.
The
company will set up a model cow farm for local farmers to study and learn.
It also
plans to build a breeding centre which will provide imported purebred
Holstein Friesian cows to local farmers and households to increase
productivity and quality.
Vinamilk
will set up milk buying centres to purchase at least 90 per cent of the
produce of farmers at specialised dairy farming zones set up by the province.
The
centres would also provide advanced farming techniques, feed, and cows for
breeding, training in animal breeding and veterinary medicines to local
farmers, the company said.
Vinamilk
has provided 150,900 euro for building 30 model household cow breeding farms.
Vinamilk's
purchase of fresh milk in Lam Dong has increased from 3,000 tonnes in 2008 to
16,000 tonnes last year.
Quang
Binh pledges funds to lift industry
Central
province Quang Binh issued Decision No 1490/QD-UBND on Wednesday regarding a
programme to stimulate the local industry on an estimated spending of VND40
billion (US$1.83 million) by 2020.
The sum
includes VND30 billion ($1.4 million) from the provincial budget, while the
remaining amount will come from the national industry boosting programme.
The
provincial programme focuses on offering vocational training to more than
3,000 local workers and improving the vocational and management capabilities
of another 500 workers, alongside building 16 technology demonstration models
expected to introduce advanced technology and new products.
Additionally,
it provides financial support for industrial businesses and helps them attend
domestic and overseas trade fairs to promote their products.
The
locality is also drawing up detailed plans to develop local industrial
clusters and economic zones and invest in infrastructure development.
A
highlight of the programme is support for some 130 industrial businesses in
rural areas to expand their businesses and transfer advanced technology to
improve production.
The
spending is part of the provincial efforts to boost the industry and
handicraft sectors towards sustainable development in a bid to enhance
competitiveness and contribute to economic restructuring.
Maritime
Bank gets nod to acquire finance firm
Maritime
Bank has received approval from the State Bank to acquire the Textile and
Garment Finance JSC, an affiliate of the Viet Nam National Textile and
Garment Group.
State
Bank Governor Nguyen Van Binh issued the decision last Friday, saying that it
would take effect on July 6. The company will be renamed Maritime Bank
Finance Company Limited.
A
shareholder meeting was told in May that the acquisition would turn the firm
into a consumer finance company.
The bank
will also complete a merger with the Mekong Development Bank in the second
quarter.
The new
institution will have VND11.75 trillion ($560 million) in equity and VND113
trillion ($5.38 billion) in total assets.
The
central city and southern
The
central city has promised to help Soc Trang develop e-government services and
encourage administrative reforms, the provincial competitive index and IT.
Vice-Chairman
of
The
central city developed an impressive IT park by centralising IT centres and
two software parks that include 140 IT companies and more than 2,000
employees.
New
luxury tax proposal may raise car prices by 30%
Automobile
manufacturers and importers in
Under
the ministry's plan, the special consumption tax on all vehicles with fewer
than 24 seats will be based on their retail prices, with rates ranging from
15% to 60%.
The
proposal, set to take effect on January 1 next year, is aimed to create a
level playing field for importers and producers since their cars will be
treated the same, the ministry said.
Currently,
the luxury tax on imported cars is calculated on the Cost, Insurance Freight
(CIF) price rather than the final retail price, a policy that manufacturers
said could give importers an unfair advantage.
They
said local products could not compete with imported cars since local cars are
taxed based on retail prices, which include a number of additional costs.
Many
automobile importers, after learning about the new proposal, said they are
asking the government to keep the current policy unchanged so that the market
and business environment is not disrupted.
If sales
go down, tax revenues will also fall, they said.
It is
"reasonable" and "accurate" to tax imported cars on their
CIF prices because the prices already carry the taxes that foreign
manufacturers have paid before shipping the cars to Vietnam, news website
VnEconomy quoted VIVA, the association of car importers in Vietnam, as
saying.
Strangely,
even local carmakers are not happy with the proposal. The new policy, with
tax rates as high as 60%, it is not exactly what they want, which is to lower
the luxury tax to spur consumption.
The
Vietnam Automobile Manufacturers’ Association has been urging the government
to calculate the tax on delivery cost, before sale and post-sale costs are
added.
The
Ministry of Finance, however, is leaning towards collecting more taxes from
importers.
Speaking
to Thanh Nien, representatives of many importers and manufacturers in Ho Chi
Minh City said the new tax scheme, if applied, will increase car prices by
20%-30%.
This
will have an adverse impact on the market, they said.
"When
taxes go up, we are forced to hike prices. In the end, no one other than
consumers will be hurt," a representative of a distributor who wished to
stay unnamed said.
Nguyen
Minh Dong, an industry expert, also said increases in taxes will not help
boost the economy, but may hamper its growth.
In fact,
"the biggest problem" with Vietnam's auto industry is that here a
car is subject to a wide range of taxes and fees, making it "extremely
expensive" for the majority of consumers, he said.
The
Japan Business Association in Vietnam has recently warned that if local
policies for the auto industry continue to be ineffective, the industry will
hardly survive when cars brought from other Southeast Asian countries are
free of import duties in 2018 under a regional agreement.
Increased
imports will create trade deficit and in the end, hinder economic growth,
VnEconomy quoted the association as saying at a recent meeting.
Vietnam's
carmakers posted sales of 157,810 units last year, compared to 1.3 million in
Indonesia, nearly 900,000 in Thailand, and 700,000 in Malaysia.
Imports
have been increasing considerably as the government has reduced import duties
gradually in accordance with trade pacts that Vietnam have signed with other
countries.
Vietnam imported
72,000 complete-built-unit cars last year, twice the number of 2013, the
association quoted official statistics as saying.
A total
of 45,000 cars, worth over US$1.2 billion, were brought into the country in
the first five months of this year.
Vietnam
coal exports grapple with El Nino year
China,
Japan and other Asian buyers of Vietnamese coal can expect more uncertainty
in the volume of shipments this year as scorching weather linked to the El
Nino phenomenon raises domestic power consumption to a record, adding
pressure on regional supply of the fuel.
Electricity
demand hit 14.96 billion kilowatt-hours in May as households and businesses
turned up air-conditioning to beat a heat wave that has enveloped the country
since early last month.
That led
to an 11.31% increase in power consumption in the first five months from a
year earlier, with the share of coal-fired output rising to more than a third
of overall generation.
During
the period, Vietnam's coal exports to countries including India and the Republic
of Korea fell a record 77.2% to 895,000 tonnes.
Coal
demand in Asian countries such as India and Vietnam has also been boosted by
the loss of hydropower owing to the heat wave, forcing utilities to turn to
other fuels - largely coal.
Benchmark
Australian prompt coal export prices have climbed 6.5% since the beginning of
the month to US$61.70 a tonne.
The cut
in Vietnam's coal exports is also part of a downtrend of about 10% a year
that began in 2010.
Indeed,
Vietnam is expected to start importing thermal coal from 2017 as
ever-increasing demand for power exceeds domestic availability.
Since
2010, Vietnam has been a net consumer of oil, another fuel. Oil demand grew
7.5% annually in the 20-year period ended 2013, the region's fastest and more
than China's 6.5%, ANZ said in a report early this year.
"Vietnam
will need to import coal from 2017 for power generation, while we see no need
to do so anytime sooner," said an official at Vinacomin, the country's
top coal mining group, declining to be identified as he was not authorised to
speak to the media.
Mixing
diplomacy with trade
Business
executives met with Vietnamese commercial attaches and counsellors who will
soon be stationed in India, the US, Belgium, Sweden, Egypt, Mexico, Morocco,
and Japan at a meeting in HCM City on June 16.
The
meeting was meant to help the diplomats understand businesses' requirements
and how they can help promote Vietnamese investment and trade in the
countries they are headed for.
Dang
Hoang Giang, deputy chairman of the Vietnam Cashew Association, said his
business group hoped they would help link Vietnamese businesses with foreign
partners, especially in the US and EU.
Recently
many Indian cashew businesses had made a beeline for Vietnam to take
advantage of lower costs, and the Vietnamese commercial counsellor in India
should apprise firms there about investing in Vietnam.
He as
well as several others said commercial counsellors and attaches should
regularly update Vietnamese businesses on new hygiene and food safety
requirements in the US.
Dao Tien
Dung, office manager at the Handicraft and Wood Industry Association of HCM
City, said he wanted the diplomats to promote Vietnam's wood products and its
annual exhibition in foreign markets.
Attendees
said besides working on increasing trade, the diplomats should also keep on
top of trade barriers in foreign countries and keep Vietnamese businesses
informed.
Dinh
Hong Ky, chairman and CEO of Secoin Building Material Corporation, said since
e-commerce plays an important role in connecting Vietnamese businesses with
foreign partners, the country's commercial agencies abroad should set up
specific e-commerce portals for each country.
He also
wanted the diplomats to help assess Vietnamese businesses' foreign partners.
Thai Van
Truong, the Vietnamese commercial attache in Washington, said trade between
Vietnam and the US had shot up in recent years and the US had become one of
Vietnam's most important trade partners.
The US
had large investments abroad but not in Vietnam, he said, adding the upcoming
Trans-Pacific Partnership would open up opportunities.
Ta Quang
Hoa, commercial attache in Morocco, said the African country had much demand
for products exported by Vietnamese companies like seafood, computers, and
copra.
"Those
businesses that are interested in the [Moroccan] market can contact me, and
I'll wholeheartedly support them."
The
meeting was organised by the Investment and Trade Promotion Centre of HCM
City.
Kien
Giang works to expand marine-based economy
The southern
province of Kien Giang has grown by an average of 11.4% between 2011 and
2015, with marine-based economy making up 75.6% of its gross domestic product
(GDP) .
Its GDP
per capita is estimated at US$3,154 this year, twice that of 2010.
According
to Le Khac Chi, Deputy Chairman of the provincial People’s Committee, the
focus of its maritime strategy was coastal and maritime tourism, particularly
in Phu Quoc Island.
The
island has attracted 189 of the 242 tourism projects of the province over the
past five years, including 37 currently operational ones worth over VND1.8
trillion (US$83.1 million), mainly hotels, resorts and shopping malls.
A
highlight is the 300-hectare Vinpearl Phu Quoc eco-tourism complex which
offers a 750-room five star hotel, an entertainment centre and a world class
golf course.
This
year, the province expects to have 370 accommodation options with 7,750 rooms
and suites, 71 percent higher than 2010, including twelve 3-5 star hotels
located primarily in Phu Quoc, Rach Gia and Ha Tien.
Additionally,
the locality has worked to develop fish farming and processing for export
purposes.
Quang
Trong Thao, Deputy Director of the provincial Department of Agriculture and
Rural Development, said the area for coastal fish farming has expanded from
119,000 hectares in 2010 to 173,000 hectares this year, including 95,000
hectares for prawn farming.
The
province plans to scale up prawn areas in Tu Giac Long Xuyen region and boost
prawn outputs in U Minh Thuong region while increasing the application of
advanced technology and adopting domestic and global standards for prawn
farming, such as GAP, GlobalGAP, ASC and MSC, he added.
During
the period, 14 seafood processing plants were built with a combined capacity
of 138,000 tonnes per year, bringing the local capacity to nearly 283,000
tonnes per year in total.
The
locality is forecast to produce 58,000 tonnes of frozen seafood this year and
generate an export revenue of US$170 million, up 56.5% and 7.8%,
respectively.
Since
2011, Kien Giang has invested VND111 trillion (US$5.2 billion) in its
marine-based economy, 30 percent of which was sourced from the state budget.
The
province has upgraded its transport and irrigational infrastructure,
including a number of roads, fishing ports, storm-proof docks and
breakwaters, among others, said the local Department of Investment and
Planning.
It will
continue to develop marine-based industries by 2020 by expanding its networks
of roads, power and water supply as well as airports and docks while attracting
more tourism investments in Phu Quoc, Rach Gia and Ha Tien alongside seafood
processing projects.
Preferential
policies will be adopted to encourage the private sector’s involvement in
marine-based development and marine resources management.
Conference
discusses ASEAN Economic Community
A
conference was held in Hanoi on June 16, scrutinising the establishment of
ASEAN Economic Community (AEC), a pillar of the ASEAN Community that will be
formed by the end of this year, and Vietnam’s preparation for its involvement
in the community.
Hosted
by the National Assembly’s Committee for External Relations, the event was in
preparation for a hearing on the process of building the ASEAN Community,
which is scheduled to be organised on August 18.
Addressing
the event, Deputy Minister of Industry and Trade Nguyen Cam Tu briefed
participants on the nature of AEC, saying that the community is a framework
for deeper economic integration among ASEAN member nations, formed as the
result of integration initiatives for 12 priority fields within ASEAN. The 12
fields comprise seven commodities, including farm products, aquatic products,
electronics, wooden products, rubber, automobile, and textiles and garment,
and five services tourism, health care, aviation transport, information
technology and logistics.
Deputy
Minister Tu highlighted that the formation of the AEC aims to turn ASEAN into
a common production base and market with free circulation of goods, services,
investment, skilled labourer, and capital flow; while promoting balanced
development among the group’s member states, improving competitiveness of the
regional economy, and boosting the regional economic integration into the
global economy.
A member
of the ASEAN since 1995, Vietnam has fully participated in and had many
initiatives contributed to the group. The country has also strictly
implemented the commitments of the AEC formation, and is among members having
completed the most commitments, according to the Deputy Minister.
At the
conference, representatives from the NA’s Committees for External Relations,
Economy, and Finance-Budget reported the building and implementation of legal
documents related to Vietnam’s integration process and legal harmonization
within ASEAN.
Participants
discussed challenges and opportunities facing the ASEAN after the ASEAN
Community is formed, concurring that the establishment of AEC in particular
and ASEAN Community in general, will further forge links within the bloc.
They
also underlined the need for Vietnam to step up communication efforts to
enhance public awareness and social consensus on the ASEAN Community,
proactively participate in programmes enhancing links within ASEAN, and speed
up administrative reform, especially in trade.
Founded
in 1967, the Association of Southeast Asian Nations (ASEAN) groups Brunei,
Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore,
Thailand and Vietnam.
Hanoi Promotion Agency announces launch
The
Hanoi Promotion Agency was officially founded at a ceremony on June 15 in the
presence of the Chairman of Hanoi Municipal People’s Committee, Nguyen The
Thao.
Its task
is to propose ideas to city authorities on how to attract investment
opportunities, as well as further promote tourism in Hanoi.
The
agency will also help provide information on foreign and domestic markets for
local enterprises and introduce potential partners.
Municipal
People’s Committee Chairman Nguyen The Thao said that the establishment of
the agency will assist the capital city to accomplish its targets for the
2015-2020 period and following years.
He
requested all agency staff closely coordinate with related bodies to do the
best job possible.
EU
- a tough market for Vietnam’s seafood industry
A
proposed free trade agreement (FTA) between Vietnam and the European Union
(EU) is expected to reduce tariffs and make the sales prices of fish and
seafood exports more competitive.
However,
businesses operating in the fishing and seafood industry have their work cut
out to meet with the strict food safety requirements of the EU said speakers
on June 4 at a conference in HCM City.
At the
conference sponsored by the European Trade Policy and Investment Support
Project (EU-MUTRAP), speakers said though the volume of exports to the EU has
been steadily rising, so have the number of safety violations.
The FTA
is expected to be signed in the near future and that will open up many
opportunities for fish and seafood exports said Claudio Dordi, technical
assistance team leader for the EU-MUTRAP project.
However,
the technical standards of the European Commission (EC) market will remain
unchanged, he said, suggesting that Vietnamese businesses need to be
proactive in getting their operations up to snuff and in compliance with the
regulations.
Fish and
seafood have been cited a top product in the EU, however, the number of
warnings issued and flat out rejections of product by customs have been
steadily inching up Dordi cautioned.
In 2012,
64 seafood product shipments were returned, a sharp rise from 2002’s figure
of 26. From 2010 to May of this year, 183 seafood shipments were issued
warnings, and there were 41 shipments rejected in last year alone.
According
to Le Thanh Hoa, vice director of the Vietnam Sanitary and Phytosanitary
Notification Authority and Enquiry Point (SPS Vietnam), most batches subject
to warning failed to meet the physical, chemical or biological standards.
The EU
requires compliance with the GlobalGAP (good agriculture practice) standards
for all imported products, while Vietnamese utilizes a lower VietGAP
standard, Hoa said.
Nguyen
Tu Cuong, head of the Seafood Development Committee at the Vietnam Fisheries
Association, in turn said there are a large number of complex requirements
for products to enter the EU.
Vietnamese
businesses will need to get up to speed on the regulations related to
materials, chemical compositions and labels if they want to take full
advantage of the opportunities presented by the FTA.
He
advised businesses to innovate and modify their operations to improve the
added value of their products.
Echoing
Cuong’s sentiments, Dordi also suggested businesses in the industry pay more
attention to labelling with a view to raising added value and promoting the
Made-in-Vietnam brand.
According
to the Ministry of Agriculture and Rural Development, Vietnam’s standards are
currently lower and out of sync with those of the EU— creating a new standard
consistent with that of the EU would benefit trade.
At the
conclusion of the conference it was announced that officials from EU-MUTRAP
will submit a draft report detailing EU SPS policies with recommendations for
improvements in Vietnam’s regulations.
The EU
is a trading bloc of 28 nations. Although the EU is a common market regulated
by the EC, member markets have differing separate regulations requiring
strict food hygiene and safety.
To gain
access to these markets, fish and seafood businesses need to perform their
due diligence investigations of the markets with care to insure they meet
with all of the prerequisite regulations.
Previously
state-owned Vinatea equitised
The
State will hold zero percent stake in the Vietnam Tea Corporation (Vinatea),
according to a recently-approved plan for equitising Vinatea.
The
corporation's chartered capital was 370 billion VND (17.3 million USD). Its
equitisation will include the sale of all State-owned capital and the
issuance of corporate bonds to raise chartered capital.
Accordingly,
the corporation's chartered capital will include roughly 63.74 percent of the
stake owned by strategic partners, and the remaining shares stake held by
investors, including Vinatea’s workers.
As
scheduled, Vinatea will launch its initial public offering within three
months. The starting price will be 10,000 VND per share.
Source : VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Năm, 18 tháng 6, 2015
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